How to Create a Culture to Capitalize on Innovation
(Innovation excellence) A presentation by Jay Morgan, VP Global Innovation Bayer Consumer
Care given at the back end of Innovation Conference, October, 2015.
Jay Morgan shared his story of how Merck Consumer Care (now Bayer Consumer Care) began its innovation journey.
The story takes place in Memphis, TN. It begins in 2011. It began
with struggle and a question: What are the barriers
to innovation in
your business that are keeping you from producing the desired results?
In 2011, things were “pretty good, but not seeing great growth.” We
got a new CEO who had a very big vision. She wanted the double the size
of the business in five years.
Because we were not going to get double the people or double the
budget, we had to think in new ways. Value engineering and being more
efficient wouldn’t double growth.
Fist, we studied the situation. In Pharma style, we visited other more innovative companies and made a journey of discovery.
The patterns of behavior and culture at these companies ran counter
to our pattern. We lacked both ideas and execution—it was a cultural
problem. We weren’t getting the results we wanted.
We broke the study into two camps: Incremental Cultures and
Innovation Cultures. After a look into the mirror: we confessed we were
an incremental culture and needed to change.
The innovation companies had a bias for action, shared work-in-progress, deep collaboration, and shared workspace.
Even the way Insights are gathered and shared are different at
Incremental and Innovative companies. At Innovation companies, we go out
into the context of the market itself, having in-depth and meaningful
conversation with consumers.
The frame of the opportunity expands beyond new product development
into every touch point in the brand experience: digital, communication,
claims, packaging, shopping experience, or a business model innovation.
We developed a five-point plan for changing the culture:
- Learn by doing (three projects in one year, as a prototype)
- Start small ($50k budget)
- Work on tools and culture (Design Thinking; One table, no offices)
- Work in more cycles (Memphis Innovation Bootcamp)
- Get help (bring in the Southern Growth Studio to do the projects with us instead of for us)
We also co-founded the Memphis Innovation Bootcamp with Merck,
Michael Graber of the Southern Growth Studio, Dr. Brian Janz, and a few
others to share this toolkit and create a broader culture of the Memphis
community. In Memphis, we took innovators and applied to social
challenges that benefited the Memphis community. We mastered the
material by teaching in in several cycles of the Bootcamp.
Key learning for success: Engage the whole company. Form a
Realization team—of key players that will help you realize the concept
in the market. Debrief everything. Create revenue-based metrics.
The key takeaway was don’t wait for leadership to fix the culture.
Start. Just start. Start small. Share the results, then scale with each
success.
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