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Innovation Governance: How Top Management Organizes and Mobilizes for Innovation

Book Description

The business leader's guide to encouraging continuous innovation in any organization

Innovation governance is a hot topic in the business world. In a fast-paced business environment, the ability of corporate leaders to build purpose, direction, and focus for innovation is more important than ever. In this book, the authors provide a framework for encouraging and focusing innovation by explaining what innovation governance is, the various models for governance and their advantages and disadvantages, how to assess and improve governance practices, and behavioral tactics for maximizing the effectiveness of governance. It offers guidance for everyone from the boardroom through senior management, illustrating effective governance models with real case studies from a range of companies in the United States and Europe.

  • Addresses an important yet underappreciated skill for CEOs, board members, and top management

  • Features real-world examples and case studies from a variety of business from around the world

  • Written by an author team with hands-on experience in the subjects of innovation management, organizational learning, innovation leadership, organizational behavior, and individual leadership and teamwork

  • Innovation governance is a sadly neglected topic in many organizations. This book offers vital guidance and real-world experience for building innovation into any business from the top down.

    Table of Contents

    1. Cover
    2. Title page
    3. Copyright page
    4. Foreword
      1. Innovation
      2. My Experiences in Leading Innovation
      3. A Rigorous System of Innovation Governance Championed by Innovation Leaders
    5. Preface: Why Should We Pay Attention to Innovation Governance?
    6. Acknowledgments
    7. PART I: Addressing the Innovation Governance Challenge
      1. CHAPTER 1: What is Innovation Governance?
        1. The Innovation Management Challenge
        2. Defining Innovation Governance
        3. What Does Innovation Governance Entail in Practice?
      2. CHAPTER 2: Governing Innovation in Practice: The Role of the Board of Directors
        1. Clarifying the Scope of the Board's Role in Innovation
        2. Reviewing the Company's Innovation Strategy
        3. Reviewing and Nominating the CEO and Top Management
        4. Selecting and Developing the Board for an Innovation Focus
      3. CHAPTER 3: Governing Innovation in Practice: The Role of the Top Management Team
        1. Setting an Overall Frame for Innovation
        2. Defining How to Generate Value from Innovation
        3. Choosing an Innovation Governance Model
        4. Establishing Innovation Priorities and Allocating Resources
        5. Overcoming Obstacles and Building a Favorable Innovation Environment
        6. Monitoring and Evaluating Results
        7. In Conclusion: A Call for Action
    8. PART II: Choosing Between Alternative Governance Models
      1. CHAPTER 4: Why Focus on Innovation Governance Models?
        1. Why Do Companies Need an Innovation Governance Model?
        2. What are the Key Elements of an Innovation Governance Model?
        3. The Governance System and an Explicit Constitution
        4. What Models Do Companies Use?
      2. CHAPTER 5: Innovation Governance Models
        1. Innovative Companies Deploy a Range of Governance Mechanisms
        2. The Most Widely Used Innovation Governance Models
        3. The Top Management Team (or a Subset of It) as a Group
        4. The CEO or Group/Division President (in Multi-Business Corporations)
        5. The High-level, Cross-functional Innovation Steering Group or Board
        6. The CTO or CRO as the Ultimate Innovation Champion
        7. The Dedicated Innovation Manager or Chief Innovation Officer
        8. A Group of Innovation Champions
        9. The Duo (Complementary Two-person Team)
        10. No One in Charge
        11. Combinations of Primary and Supporting Models
        12. Additional Innovation-supporting Mechanisms
      3. CHAPTER 6: Which Models Seem to Work and Why?
        1. Does Innovation Governance Work Satisfactorily?
        2. Are Some Models More Effective than Others?
        3. So Why are Many Governance Models Deemed Unsatisfactory?
    9. PART III: Learning from the Field
      1. CHAPTER 7: Leading from the Top: Example 1 – IBM's Innovation Governance Model: A Succession of CEOs Oversees “Continuous Transformation”
        1. Big Blue
        2. IBM's Model of Innovation through “Continuous Transformation”
        3. Governance as “Managed Anarchy”
        4. Embedding Discipline within Anarchy
        5. Learning from IBM
      2. CHAPTER 8: Leading from the Top: Example 2 – Corning's Innovation Governance Model: Two Executive Councils Execute Hands-on Governance
        1. Corning's Evolution: A Glass Factory Becomes a World Leader in Innovation
        2. The Ages of Corning: A History of Supple Governance
        3. Defining the Core
        4. From Success to Crisis: The Dot-com Downturn
        5. Building a Structure for Effective Governance
        6. Governing Corning's Medium-term Growth: The GEC
        7. Governing Long-term Growth: The CTC
        8. Going Outside-In to Find What's Next
        9. Corning's Innovation Recipe
        10. Patient Money: Investing for the Future
        11. The Role of Information in Governing Innovation
        12. Constantly Evolving Innovation Practices
        13. Looking to the Future
        14. How Will the Governance of Innovation Stay Fresh?
      3. CHAPTER 9: Appointing Individual Innovation Champions: Example 1 – Nestlé's Innovation Governance Model: CTO in Partnership with Business Heads
        1. The World's Leading Nutrition, Health, and Wellness Company
        2. Governing Innovation at Nestlé: The Nespresso Breakthrough Example
        3. Leveraging Nespresso: The Creation of an Incubator for Beverage Systems
        4. Nestlé's Strong Top Management Involvement in Innovation
        5. Linking R&D to Innovation: The Key Role of the CTO
        6. Addressing Nestlé's Critical Innovation Challenges
      4. CHAPTER 10: Appointing Individual Innovation Champions: Example 2 – DSM's Innovation Governance Model: The Entrepreneurial CIO
        1. Going through Decades of Transformation at DSM
        2. Starting an Innovation Drive to Improve Innovation Excellence
        3. Restructuring the Management of Technology and R&D
        4. Mobilizing Innovators in Business Groups
        5. Building a New Business Creation Infrastructure
        6. Showing the Way at the Top
        7. DSM's Outlook and Challenges: A Continued Focus on Innovation
      5. CHAPTER 11: Setting up a Collective Governance System: Example – Tetra Pak's Innovation Governance Model: High-level Cross-functional Steering Groups
        1. Innovation Governance – Stage 1: Predominance of the Owners
        2. Innovation Governance – Stage 2: Focus on Processes
        3. Innovation Governance – Stage 3: Empowering Management through Councils
        4. Finding a New Balance between Creativity and Discipline
        5. Exploring New Business Development Opportunities
        6. Addressing Future Innovation Challenges
        7. Drawing the Lessons
    10. PART IV: Designing Your Own Governance System and Making It Work
      1. CHAPTER 12: Getting Started: How Michelin has Rethought its Governance Model
        1. A Long History of Innovation in Transportation
        2. Refocusing on Incremental Innovation, Emerging Markets, and Profitability
        3. Taking the Helm and Refocusing on Product and Market Leadership
        4. Setting Up a Corporate Innovation Board (CIB)
        5. Setting Up Other Elements of the Innovation Ecosystem
        6. Anticipating the Next Steps
        7. Going Public and Maintaining the Effort
      2. CHAPTER 13: Recognizing the Imperatives for an Effective Governance System
        1. Commitment and Engagement of the CEO and Top Management Team
        2. Breadth and Depth in the Scope or Coverage of the Model
        3. Independence of the Model with Regard to the Unique Talents of One Individual
        4. Ability of the Model to Gather Support from the Organization
        5. Inclusion of Checks and Balances and a Focus on Continuous Improvement
        6. Robustness of the Model vis-à-vis External Pressures and Crises
        7. Capacity of the Model to Evolve, Enlarge its Scope, and Grow with the Company
        8. Clarity and Accessibility of the Governance Model for the Board of Directors
        9. Auditing the Company's Innovation Governance Activities
      3. CHAPTER 14: Aligning Individual and Collective Innovation Leadership
        1. Do You Meet the Main Leadership Imperatives of Innovation?
        2. What is Your Own Leadership Model?
        3. What is Your Own Innate Leadership Style?
        4. How Do You Leverage Individual Talents to Create Effective Innovation Teams?
        5. Aligning Leadership and Innovation Governance
    11. Appendix: Examples of Tasks and Initiatives to Support Innovation
      1. 1. Diagnostic and Continuous Improvement
      2. 2. Innovation Vision and Strategy
      3. 3. Innovation Content Management
      4. 4. Innovation Process Management
      5. 5. Organization and Infrastructure
      6. 6. Competencies and Attitudes
      7. 7. Climate and Culture
      8. 8. Allocation of Specific Management Responsibilities
    12. Index