The OI Scorecard Survey tool was developed in the 3^rd quarter of 2010 to help companies assess their collaborative innovation capabilities both internally and externally. We recognized that companies struggled with understanding where they were in relation to other companies using collaborative innovation, and set out to create this online too. In addition to being  interactive and easy to use, the OI Scorecard tool has provided tremendous insights into where  companies are making progress, and where they are not.

I find that one of the more interesting pieces of data from the survey highlights an issue that we have heard many times from some of our large multi-division, multi-national clients. And that is – while 62 percent of those responding rated themselves as effective in tapping into the creative brainpower of their colleagues, only 10 percent had the systems and processes in place to recognize the most promising ideas, and quickly bring them to market.

We expect to see tangible progress in the area of internal collaboration over the next few years. Even companies who lead their industry struggle to improve internal access to information and expertise. As we heard from Dick van Beelen, Director of Open Innovation, AkzoNobel, in our recent Webinar,  “If only we knew as a company what we know, or if only we use what we have - and that in itself sounds like an open door. But, if you think about a siloed organization, this is indeed a big challenge.”

There are many proofpoints collected from the survey data and articulated in the OI Scorecard Survey Report . Have you had a chance to read the report? If so, what findings did you relate to most, or what surprised you? We would like to hear your thoughts.

One of the challenges I still see in open innovation is when it is tried in a highly conservative environment, typically an ‘old school’ engineering company.  By ‘old school’  I mean a company  that is used to doing everything the same way they have for years and years. They use external development partners such as universities and suppliers but they always first try to solve problems internally and then only if that fails will they go to a network of external partners. But typically this external network is the same groups they have relied on in the past which results in the same answers they’ve already received.

We recently wrapped up an open innovation pilot at a client who readily admits they are conservative. They were very impressed with the breadth of the potential partners we presented to them on the different projects we ran. They talked about how we “opened their eyes” on one particular project and uncovered work on the topic they were not aware of. They talked about how open innovation is an excellent way to connect with thought leaders from around the world. Another researcher talked about how the process of creating the NineSigma RFP really made them sharpen their thinking around the problem definition.

However, when the discussion turned to whether they saw open innovation as a fit to their current innovation strategy, they felt that it would be quite a while before they could adopt open innovation beyond the few projects in the pilot.

The challenge was culture. Even though they clearly saw the benefits of open innovation, they could not see how to change the culture. It is interesting that some seven years after the book “Open Innovation” was published that companies will still revert back to their old ways.

I would be interested in your thoughts and observations on the cultural aspect of open innovation adoption?

Watch what happens when you ask for volunteers to lead an innovation project.  Some individuals will wish that they were invisible while others will jump out of their seats with the enthusiasm of a first grader being offered an extra recess.  What is it that motivates people to respond in such different ways?

That is the question that NineSigma set out to answer in our partnership with Caliper.  We had often observed that a client would succeed when they had a motivated innovation champion, but they would then struggle in duplicating that success organization-wide.  After working with hundreds of clients over the past ten years, we could describe the characteristics of an innovation champion, but we did not have the organizational development expertise to answer our clients’ question “how do we create a team of people who have a passion for innovation?”

Caliper, a human resources consulting firm with 50 years of experience advising over 25,000 companies in team building, and employee and organizational development, was a perfect partner.  We found that Caliper shares many of NineSigma’s core values, like a respect for scientific methodology and an insatiable curiosity.  By combining Caliper’s expertise in human resources and personality assessment with NineSigma’s expertise in innovation, we collaborated to create the world’s first Collaborative Innovation Profile.

Caliper’s rigorous methodology started with a validation study, which included a customized innovation job analysis and development of a competency model for innovation leaders and project managers.  Caliper incorporated interview and assessment results from a sample group of Innovation professionals and implementers.  Caliper’s research team then analyzed the data to determine which traits are most associated with success within the competency model.  The result is a specialized tool that helps management and innovation professionals select and develop successful innovation teams.

Of course, the NineSigma team was eager to learn the results of our Collaborative Innovation team assessment.  No surprise to us, the results confirmed that we are a highly innovative and collaborative group.  Our partnership with Caliper is a shining example of how an open innovation company can grow through open innovation. 

Since the end of the year is typically a time of self-reflection, it was appropriate that all of us at NineSigma were asked to take part in a Caliper personality assessment. NineSigma has developed a joint program with Caliper launching next month (more on that coming soon!) and we all took the Caliper test to become familiar with the process and learn something about ourselves in the meantime.

Although I was very interested in the assessment process from a professional standpoint, I’ll be honest there was a fleeting moment of apprehension. I thought, do I really want to know what makes me tick? Furthermore, do I want my manager to know that I’m short on patience and skeptical of others? I think all of us approach our work with a good sense of where we are strong and where we need development, and I was therefore quite surprised by how significantly the Caliper process was able to provide new insights into my work behavior/performance.  After taking the Caliper test and discussing the results with one of their trained consultants, an entire picture emerged that drew upon and made sense of everything I thought I knew. The picture showed my strengths, limitations (even though we don’t want to admit it, everyone has them) and motivations. By understanding the bigger picture, it has become much clearer on how I can work effectively with my teammates and maximize my performance.

If your organization is like NineSigma, there is real diversity in the backgrounds and personalities of your fellow team members. We have all enjoyed some private laughs and “ah-ha” moments as we compare and contrast our findings. We may joke that we are low on empathy or accommodating others, but high on urgency as we rush through our days trying to get everything done. Kidding aside, it has become clear that there is now a higher level of self-awareness and team awareness within the organization. As we enter the New Year ahead, we will do so with even greater resolve and confidence that every goal is achievable since we understand ourselves and know how to put our best foot forward.

It’s difficult to chart a path forward if you don’t fully understand your starting point. After years of working with companies at all levels of open innovation maturity, we have developed an open innovation diagnostic tool, the NineSigma OI Scorecard, which helps Solution Seekers quickly assess their open innovation capabilities. The web-based tool provides an initial evaluation of a company’s ability to collaborate as part of their innovation process, both with internal and external partners. The tool also assesses the organizational structure and systems that are needed to effectively support collaborative innovation.

Specifically, the open innovation tool measures a company’s ability to collaborate on innovation in three tiers: within and across the company, with the company’s existing external network, and with the global innovation community. What’s different about this tool is that it not only provides a snapshot of the company’s current status, it offers concrete recommendations for how to address the gaps identified while building on the company’s strengths. The scorecard survey takes about 5-7 minutes to complete and is free of charge. We encourage Solution Seekers to check out this new tool and gain a deeper insight into effective collaborative innovation. 

Read more about NineSigma's new OI Scorecard tool. Get your open innovation score today.

Surprised to see a financial guy writing a blog on April 15^th?  Probably not.  We all love tax day, when we scramble to collate and scrub our financial records to do everything possible (but also legal) to reduce our taxes.   Operating a business without metrics can often lead to that same type of scramble when we are put to the task of evaluating business segment performance.  This is why I was so surprised to see that, according to our most recent benchmarking survey, more than 40% of companies in the advanced stages of open innovation are not employing the use of metrics.  Absent this, how can you measure progress towards your goals?  How can you evaluate your efficacy?

Using metrics for measurement and guidance is only as effective as the quality of those metrics.  That is why we work with our clients to establish open innovation metrics tied to pre-defined goals.  Depending on whether you are in the early stages of open innovation or you are optimizing its use, those metrics will vary significantly.  So where do you start?

Well, where do you start with your tax information?  I typically break the information down into the sections of the return.  Pages 1-4, Schedule A, Schedule B, Schedule C, etc.  Determining metrics can also start with similar compartmentalization.  How so? Departmentalization of impact.  For instance, financial (hard and soft impact of both revenue and cost), time (acceleration of ideation through product development and then on to dollarization), and new opportunity creation (relationship and network building that yields growth in ancillary areas and knowledge, not just the focal point of the task or topic at hand). 

Gauging success and defining metrics is as much art as it is science.  Your business model, your corporate structure and your culture all affect the determination of what metrics are most important to you and how you choose to evaluate your progression and ultimate success.   But you cannot have a painting without picking up the brush and splashing color on the canvas, so what are you waiting for?

Contact us today to launch your open innovation program with NineSigma.