Create a Culture of Innovation

Energize your company with breakthrough ideasTM Seas the Day to Create a Culture of Innovation

NAEP Florida 2018 Regional Meeting – October 25, 2018

Len Ferman [email protected] Adjunct Professor of Innovation at University of North Florida Managing Director, Ferman Innovation www.fermaninnovation.com Former Head of Ideation at Bank of America 904.553.0075 Energize your company with breakthrough ideasTM Seas the Day to Create a Culture of Innovation

NAEP Florida 2018 Regional Meeting – October 25, 2018

Adjunct former Professor head of ideation

Founder Faculty Member

AT&T Barnett Bank Bank of America

Led small business Head of ideation for all Graduated from innovation – consumer & small Duke with MBA Developed smart Created concept for SB business products at in Marketing and card & ATM Online Community Bank of America MA in Economics Introduced first strategy for check image Barnett Bank ATM 1988 1995 1997 2004 2011

1990 1996 1998 - 2003 2013

Managed new product Moved to JAX Launched Visa Founded research for as part of the TravelMoney – Ferman Launched & Managed B2C and B2B founding team world’s first Innovation: Bank of America services of the AT&T international boutique Universal Card prepaid card Business Debit Card innovation agency © Copyright 2018 Len Ferman 7 time gold medalist and former record holder at the World Joggling Championships © Copyright 2018 Len Ferman Business Takeaways From This Session

Learn the innovation process and how it applies to your job

Identify how Learn the you can do innovation things process and different, how it applies better and to your job innovative

Identify how Learn the you can do innovation things process and different, how it applies better and to your job innovative Create awesome experiences for your internal customers

Improve eye hand coordination

Improve eye hand coordination Learn to multitask

Impress your kids! Improve eye hand coordination Learn to multitask

#1 - You can’t learn how to juggle

An idea that is successfully launched as a…

new product new service

new program new process

… in order to solve for external or INTERNAL customer needs

Innovation applies to … it’s about everyone in the institution developing solutions because… to solve the problems of your external or INTERNAL customers

21st century business dynamics require all organizations to innovate or perish

Advances in technology are enabling new entrants and new business models faster than ever

Panera 2.0 is being Airbnb is taking a chunk Amazon is disrupting rolled out nationwide out of the hotel industry traditional retail industries

Active learning classrooms at Gothenberg University in Sweden have tables for group collaboration.

The professor is typically stationed in the middle and will move between groups.

Deakin University in Australia has implemented Deakin Genie - an Artificial Intelligence driven personal assistant for students.

Over 50% of American four- year colleges and universities offer one or more fully online degree programs.

Kodak had an 89% Blockbuster had Blackboard had share of the 9,000 retail stores at 70% market photographic film its peak in 2004, share of the market in 1976 now they are all university LMS gone market in 2006

1 2 3 4 EXPLORE IDEATE EVALUATE DESIGN

EXPLORE

1 Identify customer EXPLORE problems and opportunities

Instructions • Hold the scarf in one corner between your thumb and index finger • Quickly raise your arm up as high as you can and release! • Let the scarf float down a little bit • Claw down over the top to catch • Try it again and again • Switch hands

Instructions • Start with scarf in right hand • Toss scarf across to your left side • Claw down with left hand • Toss scarf across to your right side • Claw down with right hand • Repeat until you feel a smooth flow and can see the pattern

Have a clear and focused objective

“I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” - President John F. Kennedy

“This is a black belt school. Your goal is to become a black belt.” - Master Johnson

Make goals Use Simple Seek to Inspire challenging yet Language achievable

• Can be understood • Avoid bland • Stay just inside by a 5th grader corporate speak the realm of (“increase same store possible • Requires no sales 10%”) interpretation • Foster passion within the team (“make a visit to our stores fun and exciting”) © Copyright 2018 Len Ferman Key Takeaways that Juggling 1 Scarf Teaches us Explore for Creating a Culture of Innovation

Learn to use the tools available to gather understand your customer’s needs

Who to talk to? • Senior administrators

• Employees & students that are your internal customers

Key Learnings Required SENIOR STAKEHOLDERS EMPLOYEES & STUDENTS • What are their business expectations? • What outcomes are they seeking? • In which areas do they want you to focus? • What are their biggest challenges? • WHY? • What barriers do they have to improving performance? • WHY?

Be a “Why’s GuyTM”

What is it? Observing employees in their natural environment

When to do it? After qualitative research in order to uncover additional problems and challenges

Key Learnings Required • How do employees presently go about • What are the problems, that solving problems? employees don’t overtly recognize or can’t articulate? © Copyright 2018 Len Ferman 34 Key Takeaways that Juggling 1 Scarf Teaches Explore us for Creating a Culture of Innovation

Break down the employee journey into elementary steps and map the experience

1 2 3 4 5 Select Receive Eat Pizza Wait for Pizza Order Pizza Pizza and and Clean Delivery Provider Pay Up

1 2 3 4 5 Journey Steps Select Receive Eat Pizza Wait for Pizza Order Pizza Pizza and and Clean Delivery Provider Pay Up Journey Attributes

Customer •Online/Mobile •Online/Mobile •Online/Mobile •Delivery person •Pizza • • • touchpoints Ads Phone Pizza box Customer’s •Easily find order •Order pizza •Delivery time •Pizza is warm •Pizza is delicious info quickly with no meets or exceeds •Payment is quick •Clean up is desired •Get a good deal errors in the expectations and easy simple outcome order Customer •Can’t find phone # •Website •Pizza is taking •Pizza order •Pizza does not •Website is confusing longer than wrong meet pain points confusing •Waiting on hold expected •Pizza is cold expectations 38 © Copyright 2018 Len Ferman •Box is greasy Key Takeaways that Juggling 1 Scarf Teaches Explore us for Creating a Culture of Innovation

Identify Best Practices

Ask Others How They Do It Continuously seek input from others in your field and in related fields for what is effective

Secrets 1. Accuracy

Jugglers are great throwers not great catchers

Strive for accuracy in basic tasks

Accurately Strive for identify the most accuracy in important basic tasks problems and opportunities

PROBLEMS OPPORTUNITIES • Departments work in silos with no • Leverage advances in eLearning for collaboration more effective training • Employee work is interrupted every • Utilize big data to better understand 3 minutes on average business performance • Rapidly changing pace of • Employ gamification for more professional skill requirements engaging learning experience • Constant organizational change • Use talent redeployment to close inhibits strong business relationships workforce skill gaps • Analysis-paralysis is endemic in a • Overhaul employee onboarding to data driven environment improve employee commitment 44 © Copyright 2018 Len Ferman Develop Themes for Ideation Explore

Synthesize and prioritize problem and opportunity data

Develop paraphrased statements of the outcome your employees are seeking

These “themes for ideation” enable you to clearly articulate the objective and types of ideas you are looking for

“Create a friendlier and simpler check in experience at a hotel” “Partner with me to I don’t like to wait in lines at the front achieve success” desk to check in. I’d like to be able to I am so busy I don’t have time to keep go to straight to my room, especially track of my accounts. I need to work after a long day of traveling. with a bank I can trust rather than one that is looking to ding me if I make a little mistake.

1 2 3 4 EXPLORE IDEATE EVALUATE DESIGN

#2 – You don’t know any jugglers

Dr. McDreamy

Dr. McDreamy Steve Martin

Dr. McDreamy Steve Martin President Obama

Dr. McDreamy

Steve Martin

Former President Obama

IDEATE

2 Develop a IDEATE large number of ideas

Instructions • Start with one scarf in each hand • Throw right hand across • Throw left hand across • Claw down left • Claw down right • Right, Left, Left, Right

Instructions • Scrunch up 1st scarf in palm of right hand • Place 2nd scarf between thumb & index finger • Throw 2nd scarf in an “inside circle” • Throw 1st scarf in an “inside circle” • As scarves return to you grab and throw again

Stray out of your comfort zone and brainstorm

Stray out of your Include a diverse comfort zone group of people and brainstorm

"Our best ideas come from clerks and stock boys." - Sam Walton

Sources: Jonah Lehrer, Imagine, Boston, Houghton Mifflin Harcourt, 2012; http://www.ideachampions.com/weblogs/archives/quotes/; http://sourcesofinsight.com/innovation-quotes/; http://twistedsifter.com/2012/03/15-famous-quotes-on-creativity/ © Copyright 2018 Len Ferman You don’t need to be a special Ideate creative person to formulate great ideas

"Our best ideas come from clerks and stock boys." - Sam Walton

“Creativity is just connecting things.” - Steve Jobs

"Our best ideas come from clerks and stock boys." - Sam Walton

“Creativity is just connecting things.” - Steve Jobs

“Oh the thinks you can think up if you only try.” - Dr. Seuss

The catch phrase, “thinking outside the box” was made famous in the early 1970s by Psychologist J.P. Guilford who conducted one of the first academic studies on creativity.

The puzzle: • Use a pen to draw 4 straight lines that cover all 9 dots WITHOUT lifting the pen from the page

Sources: http://en.wikipedia.org/wiki/Thinking_outside_the_box; http://www.psychologytoday.com/blog/inside-the-box/201402/thinking-outside-the-box-misguided-idea © Copyright 2014 Len Ferman 69 Thinking “Outside the Box” Ideate The Answer

• Guilford said that solving the puzzle requires “thinking outside the box”

• Many consultants leveraged this to promote “outside the box” thinking from the 1970s – 1990s

Simply asking someone to “think outside the box”

seldom works to produce breakthrough ideas

• 2007 Harvard Business Review article revealed thinking “outside the box” does not work

• Most people find it difficult to think abstractly with no instruction or parameters

• People “shut down” without any guidance

Source: Coyne, Kevin P., Clifford, Patricia Gorman, Dye, Renee. Breakthrough Thinking from Inside the Box. Harvard Business Review, December, 2007 © copyright 2017 Len Ferman 73 Finding the Right Box to Ideate Ideate DISNEYLAND EXAMPLE

• Walt Disney’s vision was to build an amusement park unlike any other

• He didn’t want to simply build a park with bigger and faster rides

Sources: Harvard Business Review, HBR’s 10 Must Reads on Innovation, Harvard Business Review Press, © copyright 2017 Len Ferman 74 Simply Asking Questions Based on Your Ideate Ideation Themes Helps Generate Ideas

• In California in the 1950s, Walt Disney’s vision was to build an amusement park unlike any other • The key question he asked was: How might we create an amusement park that provides a unique and magical experience for the guests?

DESCRIPTION Ease of Likelihood of Potential for Deep thinking about specific problems implementing success breakthrough related to the theme ideas

HOW IT WORKS • Prior to the session identify a large number of problem statements around the theme BENEFITS • • Divide participants into small groups (2 – 4 Enables participants to focus on the topics people) for which they feel they can make the best contribution • Ask each group to select 1 – 2 problems • Good mid session excursion when a change of pace is needed and smaller groups are • Generate ideas around the chosen problem preferred

DESCRIPTION Ease of Likelihood of Potential for Look to other industries to see how similar implementing success breakthrough themes have been addressed ideas

HOW IT WORKS • Break group into sub-groups of 3 – 6 people BENEFITS • Each group selects one related world (e.g., a similar industry or well known company) • Well documented method for generating breakthrough ideas • Identify attributes of how the related world solves their primary issues • Different groups can pick different worlds yielding a wide variety of ideas • Use the list of attributes to help generate ideas EXAMPLE: the cloth press for printing patterns gave for how the related world would solve for our rise to the printing press brainstorming themes © Copyright 2018 Len Ferman 77 Brainstorming Excursions Ideate ASSUMPTION BUSTING

DESCRIPTION Ease of Likelihood of Potential for Identify and eliminate long held implementing success breakthrough assumptions and constraints that blind the ideas group to generate potential new ideas

HOW IT WORKS • List all “facts”, assumptions, requirements and BENEFITS “truths” about the brainstorming theme • Eliminating long held assumptions can open • For each of the listed items, pose the question, up possibilities that couldn’t be imagined “What would it be like if it was not that way?” previously

• Ask the group to share ideas that would fit in EXAMPLE: The iTouch is an iPhone without the the new environment ability to place calls © Copyright 2018 Len Ferman 78 Secrets to Becoming a Great Juggler Ideate

Secrets 1. Accuracy 2. Balance

Balance the amount of time spent ideating around each of the themes

Balance the amount of time Balance multiple spent ideating methods of around each of brainstorming the themes

Use multiple methods to enable every employee the opportunity to contribute ideas

In person ideation Virtual sessions Employee ideation suggestion sessions box

#3 - Jugglers love to juggle strange objects

Encourage wild and crazy ideas when brainstorming

“If at first the idea does not sound absurd then there is no hope for it.”

DESCRIPTION HOW IT WORKS Encourages wild and crazy ideas • Each person in the group to think of an idea so absurd that if you put it forth in a regular meeting you might actually get fired

• Ask the entire group to come up with ways to mold the idea into a good idea or find some elements of the idea that could be useful in generating a good idea

BENEFITS • Overcome constrained “inside the box” thinking • Helpful to develop breakthrough ideas

The guidelines used by Improv are similar to those necessary for successful brainstorming

➢Yes!...And… (Building on your partner’s ideas)

➢Not Fearing Failure

Go for quantity when generating ideas

Adopt the mindset of a professional photographer

Generate a high quantity of ideas hoping to find a few gems

1 2 3 4 EXPLORE IDEATE EVALUATE DESIGN

3 Select a portfolio of EVALUATE ideas to pursue

Hundreds of ideas from brainstorming

Cultivate Evaluate

Prioritize

Type Definition Example Incremental or Take the existing and make it faster,

Evolutionary better, cheaper, etc… New cereal……

We expect these innovations

Strategic Leverage some existing capabilities to Protein Bars extend into a new market

Revolutionary or Completely new and different Breakthrough or Monster Energy Drinks Disruptive We’re surprised by these innovations

Innovation Portfolios should contain a mix of projects based on risk and reward - a mix of incremental vs. breakthrough ideas

$ Potential High

LOW custoemr

Medium MEDIUM

HIGH

Low Value to the internal internal the to Value Same as Adjacent New to the current to present institution

Instructions • Start with two scarves in right hand and one scarf in left • Throw across with right hand and see the peak • Throw across with left hand and see the peak • Throw across with right hand • Catch left , Catch right, Catch left

Instructions • Start the same way as the Flash • Throw the first scarf across • THEN, its simply: ➢ throw across, catch, ➢ throw across, catch • Repeat until you are a juggling

FOCUS ON THE OBJECTIVE: Filter out extraneous and out-of-scope ideas

FOCUS ON THE OBJECTIVE: Narrow down Filter out ideas by rating extraneous and against agreed out-of-scope prioritization ideas criteria

Idea Name Description IncreaseRevenue Improve TOTAL FeasibleImplement to CustomerExperience

Be the #1 interactive zoo. Special Be The #1 Interactive encounter opportunities to touch, feed, 7.0 2.3 6.1 15.4 bathe and experience the animals. Feeding Shows Feeding shows 4.8 4.1 5.7 14.6 Zip line over animals and climbing Zip line 5.9 2.8 5.2 adventure 13.9 Strategically Placed Strategically placed zoo staff with 3.2 4.3 6.1 13.7 Knowledgeable Staff knowledge about animals "Plan your day" schedule with important Plan Your Day times and suggested routing through the 2.8 5.0 6.0 13.8 zoo with average times

1 2 3 4 EXPLORE IDEATE EVALUATE DESIGN

4 Create the DESIGN optimal design via systematic experimentation

Must Haves I wouldn’t buy ➢ Air conditioning a car without ➢ Automatic gear shift that! ➢ Electric windows

Satisfiers The more I can ➢ Smooth ride get of that the ➢ Horsepower better! ➢ Extended warranty

Name The Time Changer Employee need Have you ever wished you could travel back in time and fix something you attention grabber did wrong? Introducing Time Changer, the world’s first personal time machine. Time Description Changer is an acceleration chamber that fits neatly underground in your backyard in just a 12 foot diameter space. It accelerates you faster than the speed of light thus taking you back to the time of your choice. Now Benefits you can take back those words you wish you had not said to your boss. Or, invest in Bitcoin before its 3000% increase.

So don’t waste time. Order your Time Changer, and today only, and you’ll Closing benefit receive $500 off installation. Or, wait til tomorrow and then you use or call to action neighbor’s Time Changer to go back in time and take advantage of this one time offer! © Copyright 2018 Len Ferman If You Can Develop a “Minimum Viable Prototype” Design Then Do It!

• Jeff Hawkins, CEO of Palm Pilot, created this prototype out of wood in his garage shop

• The prototype helped visualize problems that had to be overcome (e.g., battery size, screen size, eliminating the keyboard, etc…)

Secrets 1. Accuracy 2. Balance 3. Cultivate a Pattern

Cultivate concepts until they resonate with the target audience

Test Concepts / Prototypes More cycles produces better results

Refine

Lean innovation applies the principles of lean to the innovation process

Three step process: 1. BUILD the minimal viable prototype (MVP) 2. TEST the prototype with customers 3. REFINE and test again until all value assumptions verified

1 2 3 4 EXPLORE IDEATE EVALUATE DESIGN

➢ Have a clear and focused objective EXPLORE ➢ Accurately identify employee and student needs (1 scarf) ➢ Develop themes for ideation

➢ Have a clear and focused objective EXPLORE ➢ Accurately identify employee and student needs (1 scarf) ➢ Develop themes for ideation ➢ Brainstorm with a diverse group IDEATE ➢ Use a variety of creative exercises and brainstorming methods (2 scarves) ➢ Generate a large number of ideas

EVALAUATE ➢ Eliminate extraneous ideas (3 scarve flash) ➢ Prioritize final ideas to move to design

➢ Have a clear and focused objective EXPLORE ➢ Accurately identify employee and student needs (1 scarf) ➢ Develop themes for ideation

➢ Brainstorm with a diverse group IDEATE ➢ Use a variety of creative exercises and brainstorming methods (2 scarves) ➢ Generate a large number of ideas

EVALAUATE ➢ Eliminate extraneous ideas (3 scarve flash) ➢ Prioritize final ideas to move to design

Len Ferman [email protected] www.fermaninnovation.com

904.553.0075 117