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HR and Open Innovation

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In this Presentation you will come to know about the HR practices related to both internal and external talent management that can drive Open Innovation success – PowerPoint PPT presentation

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Title: HR and Open Innovation


1
MOOI Theme 4HR and Open Innovation
Prof. Henry Chesbrough, University of
California, Berkeley ESADE Prof. Wim
Vanhaverbeke, Hasselt University, ESADE
National University of Singapore Dr. Nadine
Roijakkers, Hasselt University March 4, 2013
We would like to acknowledge the efforts of
Svenja Paul for providing input to this
presentation on the basis of her master thesis.
2
Big gap in the (academic) literature
  • Very little has been written in the academic
    literature concerning HR practices and the role
    of HR professionals in Open Innovation
  • Golightly (2012) states that () there is
    considerable potential for further research into
    the people side of Open Innovation, including ()
    human resource practices ()

2
3
The importance of HR practices
  • Open Innovation is a people-driven business
  • () Fundamentally, Open Innovation is about
    people dealing with people () (Harwood, 2010)
  • Its therefore highly important to learn how HR
    practices related to both internal and external
    talent management can drive Open Innovation
    success

3
4
Quotes
You can create followers, but you cant create
leaders - Tom Coen, Founder and Managing
Director at Induct
Openness exists in many people but it is
buried - Harry Berry, Founder of Brightstar
Innovations
People can be trained to be more open -
Lucienne van der Werff, VP HRM at DSM Innovation
Center
People should be a lot more proactive than
average in order to make quick changes - Marc
Hufkens, HRM and Deputy CEO at Ridley Bikes
4
5
The relation between HR and OI effectiveness
HR practices (Internal and external talent
management)
Organizational climate / culture
Employees attitudes and behaviors
Open innovation effectiveness
5
6
Internal talent management
  • OI skills, traits, and roles relevant for
    selection, training, and evaluation purposes
  • Other HR practices to stimulate OI behavior
  • Dynamic view on HR in relation to OI

6
7
OI skills, traits, and roles
  • HR needs to select and train individuals for OI
    based on identified skills (du Chatenier et al,
    2010)
  • Individuals should have the right capacities
    (Wagner Piller, 2012), skills (Mortara et al,
    2009), and capabilities (Golightly, 2012)
  • Training is essential, rather than merely
    desirable, when preparing the company for open
    innovation(Mortara et al, 2009)

7
8
Soft and hard skills
  • Soft skills rather than hard skills underlie OI
    success
  • OI performance evaluation should focus on these
    soft skills Its not only important what people
    get done but also how (Sloane, 2012)
  • There should be a balance between hard and soft
    skills (Thoen, 2011)

8
9
Necessary OI skills
  • General (based on Thoen, 2011)
  • T profile Breadth and depth fusing
    specialisation and generalisation
  • Three legged stool The technical mastery, the
    organizational mastery, and the business mastery

9
10
Listing of specific OI skills
  • Entrepreneurship
  • Internal and external networking
  • Belief in change, bring about change, faciliate
    change, question status quo
  • Tolerance of uncertainty and risk taking
  • Need to learn, open to learn, and quick to learn
  • Optimism, passion, and energy
  • Able to grasp the big picture
  • Team player

10
11
Interactive poll 1
  • What are the three most important skills for Open
    Innovation?
  • Entrepreneurship
  • Internal and external networking
  • Belief in change, bring about change, faciliate
    change, question status quo
  • Tolerance of uncertainty and risk taking
  • Need to learn, open to learn, and quick to learn
  • Optimism, passion, and energy
  • Able to grasp the big picture
  • Team player

11
12
HR practices
  • Strategic challenge exchange to stimulate change,
    creation of relations, exchange of ideas,
    acquisition of external knowledge, create
    interdisciplinary knowledge in employees, etc.
    (Donkor and Monti, 2010)
  • Leads to high motivation and retention of staff
  • Examples Google and PG swapping employees and
    network of four Swiss MNCs strategically
    exchanging staff frequently

12
13
HR practices
  • Open choice of career paths and researcher
    mobility within the firm (Petroni et al, 2012)
  • Ideally all talents and future managers start in
    the RD department and then move further, so that
    RD knowledge is integrated in all departments
    (Petroni et al, 2012 Harryson, 1997)

13
14
A dynamic approach
  • Different skills are needed in different phases
    of the innovation process (Lindegaard, 2010)
  • It is very rare for one person to possess all the
    ideal skills for OI different people may need to
    be involved in the OI activity at different
    points in time (Mortara et al, 2009)

14
15
External talent management
  • From 'talent ownership' to 'talent attraction
  • Talents need to be kept connected even when not
    internally employed
  • Attract and manage external talent in addition
    to finding the best internal talent
  • Build and curate talent pools
  • Create value for the external talent pool in
    order for them to want to stay connected
  • Philips example on spinoffs

15
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People-driven OI
  • Individuals and their attitudes are the driving
    force behind the success of OI (Du Chatenier et
    al, 2010 Lichtenthaler et al, 2011).
  • Focus first on getting individuals to realize the
    potential value of Open Innovation, so that they
    can then put in place practices that realize its
    actual value (Golightly, 2012).
  • The ability of an organization to increase the
    absorptive capacity of its individuals has come
    through strongly as a crucial step in realising
    OI value (Golightly, 2012).
  • With respect to absorptive capacity people may
    be in a certain role today but have the expertise
    we're looking for because of previous experience.
    We often forget people are in their second and
    third careers (Byrum, 2012)

16
17
The role of the HR department
  • The HR profession will have to build new core
    competences in network orchestration and managing
    talent - no matter where the talent lives
    (Kelley, 2012)
  • The HR department needs to redefine its role
    (Mattes, 2011) Establish a Chief Talent Officer
    Engage in building internal and external
    innovation networks Contribute to the design of
    these networks (with respect to e.g. cultural
    issues) Drive adoption of internal and external
    innovation networks Support OI implementation by
    providing leadership in culture change Drive OI
    into all of the firms business processes
    Consider OI leadership aspects when leader/top
    management positions are to be filled Bring in
    OI aspects when corporate structures and
    processes are redesigned Review existing
    training and coaching programs in the light of
    OI Design new training and coaching programs in
    the light of OI concepts

17
18
Interactive poll 2
  • What are the three most important focus points
    for the HR department?
  • Establish a Chief Talent Officer
  • Engage in building internal and external
    innovation networks
  • Contribute to the design of these networks (with
    respect to e.g. cultural issues)
  • Drive adoption of internal and external
    innovation networks
  • Support OI implementation by providing leadership
    in culture change
  • Drive OI into all of the firms business
    processes
  • Consider OI leadership aspects when leader / top
    management positions are to be filled
  • Bring in OI aspects when corporate structures and
    processes are redesigned
  • Review existing training and coaching programs in
    the light of OI
  • Design new training and coaching programs in the
    light of OI concepts

18
19
References
  • Golightly, J. (2012) Realising the value of Open
    Innovation
  • Blog entry (2011a) innovation-3, Mattes, F. HR
    departments take the drivers seat in Open
    Innovation
  • Blog entry (2011b) innovation-3, Mattes, F.
    Report from the German flagship conference on
    Open Innovation
  • White paper (2012) innocentive, Kelley, B.
    Harnessing the global talent pool to accelerate
    innovation
  • Harwood, R. (2010) Motivation in Open
    Innovation, University of Cambridge (audio
    interview)
  • Du Chatenier, E. (2010) Identification of
    competencies for professionals in OI teams, RD
    Management, 30, 3
  • Sloane, P. (2012) A guide to Open Innovation and
    crowdsourcing
  • Interview Chris Thoen (2011) Chris Thoen on Open
    Innovation part II
  • Lindegaard, S. (2010) The open innovation
    revolution
  • Lindegaard S. (2011) Making Open Innovation work

19
20
References
  • Donkor, C. and Monti, F. (2010) Strategischer
    Talentaustausch als Erfolgsfaktor für
    Innovationen
  • Mack, J. (2008) Google, PG swapping employees,
    Direct Marketing News
  • Byron, E. (2008) A new odd couple Google, PG
    swap workers to spur innovation, The Wall Street
    Journal
  • Wupperman, A. (2011) Kann man Talente
    tauschen? Open Innovation im Bereich Human
    Resources, Presseanzeiger
  • Petroni, G. et al (2012) Open Innovation and new
    issues in RD organization and personnel
    management, The Int. Journal of Human Resources
    Management, 23, 1, 147-173
  • Palensky, F. (2011) 3Ms Open Innovation,
    strategybusiness (Interview)
  • Harryson, S. (1997) How Canon and Sony drive
    product innovation through networking and
    application- focused RD, Journal of Product
    Innovation, 14, 288-295
  • Bingham A - Spradlin D. (2011) The open
    innovation marketplace

20
21
References
  • Interview with Byrum, J. (Global Head of Soybean
    Seeds and Traits RD, Syngenta) (May 2012). From
    Syngenta Thoughtseeders, IdeaConnection.
    Retrieved from http//www.ideaconnection.com/inte
    rviews/00304-Syngenta-Thoughtseeders.html
  • White paper (2012) innocentive, Kelley, B.
    Harnessing the global talent pool to accelerate
    innovation
  • Lichtenthaler, U. Hoegl, M. Muethel, M. (2011).
    Is your company ready for open innovation? In
    MIT Sloan Management Review, Vol. 53, no.1.

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