Stephan Klaschka - Changing employee mindset to boost collaboration and engagement for extreme business results

Copyright © Stephan Klaschka Consulting, 2014
Changing employee mindset to boost collaboration
and engagement for extreme business results
DISCLAIMER: All views and opinions expressed here are my own. In no way do I speak in behalf
of any company or organization that ever employed me or that I worked for in any capacity.
Stephan Klaschka
former Director, Global Innovation Management and Strategy,
Boehringer Ingelheim
Intrapreneurship Conference 2014
Eindhoven, NL – December 12, 2014

• Where organizations struggle
• Disrupting within - Examples
• Does it work?
2
Overview

Boehringer Ingelheim
• Founded 1888 in Ingelheim, Germany
• Family-owned global corporation
• Largest privately held Top 20 Pharma
• FORTUNE Global 500
• Focus on Human Pharmaceuticals,
Biopharmaceuticals and Animal Health
• 47,000+ employees, 142 affiliates
• EUR 14+ ($17+B) billion net sales in 2013
Boehringer Ingelheim Center, HQ in Germany
Research areas Examples of disease areas
Respiratory diseases Asthma, COPD
Cardio-Metabolic diseases Atherosclerosis,Type 2 Diabetes
Oncology Lung cancer, solid tumors
CNS diseases Alzheimer’s disease, chronic pain, Parkinson’s disease
Immunology Multiple sclerosis, psoriasis, rheumatoid arthritis

Mark Twain
“If you stand still, you will fall behind.”
“If you always do what you always did,
you will always get what you always got.”
Albert Einstein
5

Top 10
“R&D spend” “Innovative Companies”
No Pharma!Spend on R&D ≠ “Most Innovative”

10X or 10%
7

10%

savings  back office 9
10%

Where to find small elephants?
growth  front office 10
10X

Source: www.innovisio.blogspot.com
Disruptive Innovation
10%
10X
Enable thinking outside the box
Transition disrupts organization
Manage resistance to change

“Organizational Immune System”
• Management shift
from discovery to delivery
• Rejects disruptive change
– Avoid risk
– Favor Predictability
– Protect Investments
– Long-term Strategy
– Seeks Control
– Sub-optimization
– Comfortable status-quo
– …
• Protects big elephants
• Limits growth and opportunity
12

201420122013
Example: Internal Venturing or “Angel Investing”
$32k seed funding for
proof-of concept project
X
Y
OPU 1 save $4.2M/p.a.
OPU 3
ROI 6x
Goal: “in-silico” modeling reduces API
production in Development!
International Project
ROI 400x
OPU 1 save $180k/p.a.
OPU 1
OPU 2
ROI 131x
X
Co-development
novel application w/ vendor
ROI 131x
ROI 131x
OPU 4
OPU 2Y
X
ROI (tbd)
OPU 4
OPU 3
OPU 4
OPU2
(conservative estimates of savings potential)Local OPU project
OPU 3
Z
Lessons:
• Aimed at 10X returned 100+X
• Non-threatening proof-of-concept (POC)
• “First investor” psychology opens funding
• Splitting cost validates business commitment
ensures strategic alignment
• Career development for the intrapreneur
• Executive returned with more ideas
• Model adopted by other business functions

“School for Intrapreneurs” (SFI)
Approach
• Innovation skills can be learned – so we teach them
• Less a training, more a development experience
Goals
• Free the intrapreneurial spirit and direct the passion
• Build supportive ecosystem to shift corporate mindset
– Develop intrapreneurial skills systematically
– Encourage and enable employees to take charge
– Prepare executives to benefit from intrapreneurs
19

SFI Overcomes Obstacles
Connects grass-root ideas with executive sponsors (vertical)
 Intrapreneurs self-identify, out-of-the-box thinkers
 Strategic alignment for funding; avoid “corporate immune system”
 Enables employees  results, visibility, career opportunities
Cuts across functional and geographical silos (horizontal)
 Connect to innovate, collaborate, network globally
 Higher quality ideas developed in diverse teams
Bridge the “Idea to Implementation” gap
 Generate and develop ideas to be prioritized, funded and implemented
 Provide internal venture funding if needed
20

SFI a 3-Stage Program
Doorway
•Awareness & Interest
• 2 hours self-guided online
• ‘Story telling’ format
• Sharing experiences
Pathway
• Incubate & Accelerate
• 3-5hrs/week, in teams, 12 weeks
• Videos, guides, online group work
• Pitch to experts & executives
• "Green belt“ certificate
Journey
• Building an Intraprise
• ~2-3 hrs/wk over 6 months
• Coaching, Networking
• Performance Plan
• Mentor PATHWAY cohort
• “Black belt“ certificate
Intrapreneurs
self-identify
21
~5% intrapreneurial
~2% implementers
Mentoring

Not “one-size-fits-all”
“School for Intrapreneurs”
Sustainability
• Recruitment
• ROI  Success stories
• Recognition & Awards
• Adopted by global Leadership Development Programs
• “Disruptive Innovations” event series, external perspectives
• Social Intrapreneuring with Ashoka
Key Success Criteria: Alignment
• Intrapreneurial Passion
• Company Strategy
• Company Culture
22
Lessons:
• Zero-barrier entry for participants = everyone can sign up
• “Levels the playing field” for employees effectively
• Safe space valued by employees to experiment
• Gives disruptive, more risky “growth” ideas a chance
• 2nd chance for previous rejections (rebrand, refine)
• “Intrapreneurial experience” over class-room learning
• Talent self-identifies based on merits (bottom-up)
• Alumni network become hard-core change agent “force”
• Built in mentoring creates a virtuous cycle (alumni, recruits)
• Executive pitches validate strategic alignment
• Changed company culture incl. leadership thinking
• Extends beyond company borders

How do we know it works?
23
Image: www.rephrase.co.uk

Image: possibilmente.org
Business Alignment and ROI
25
Project Sponsorship
• Transitioned all projects
pitched to executives
• 54% of projects sponsored
Image: motivationalmemo.com
Image: possibilmente.org
“Blues-MT” broke even in 2-3 months
ROI 2.6x in 1st year (write-off) $1.2M
p.a. in following years
“Big Picture” break-even in 5-6 months
Online service with 55k hits/week
Saves $10++ million/year, reduces
regulatory risk of $650+ million
Each completed project pays SFI for
years: 1:10 ROI = 10X
Project Return-of-Investment (ROI)

How do we know it works?
27
Image : cedarcliffdental.com

Behavior Change
Enrollment
• Next class waiting
• More diverse participants
 Countries: 9  11 +29%
 OPUs: 10  17 +70%
 Bus. Funct.: 9  17 +89%
Org. Network Analysis (ONA)
• Sponsored team characteristics
– Reached out more
to new communication partners
– More team members.
• Non-sponsored teams
– Inward focus, reduced communication
• No indication for bias re. sponsorship
based on
– Gender
– Country of employment
– Closeness to sponsors
– Brokerage (=intermediate)
– Communication with unique individuals
28
Image: business.time.com
Image : fmsasg.com
Lessons:
• Established a metrics for employee behavior change
• Identified statistical significant team success criteria
• Validated absence of bias for sponsorship
• ONA adopted globally for organizational engagement
• Changes the organizational culture includes
talent management, organizational development
– ongoing…

Image: http://techchange.org/online-courses/social-intrapreneurship-for-innovation-in-health-and-wellness/

Image: innovationmanagement.se
Shifting Mindset Beyond…
30
Konzept für Führungskräfte zur
Implementierung einer Innovationsstrategie
by Philipp Gellert and Martin Müller,
Business Innovation and Change Management,
University of Applied Science in Munich,
Germany, 2014
Employee innovation mindset
Resources
Long-term

Awards
31

Bottom-line?
“It is not how many ideas you have.
It’s how many you make happen.”
- Advertisement of Accenture
“Not one-size-fits-all!”
“Culture eats strategy for breakfast!”
- Peter Drucker
33

Contact
Stephan Klaschka Consulting
email: stephan@stephanklaschka.com
phone: +1-917-595-0951
web: www.StephanKlaschka.com
blog: www.OrgChanger.com
Twitter: @OrgChanger
Skype: StephanKlaschka
LinkedIn: www.linkedin.com/in/stephanklaschka/

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