3.
Intelligent Risks. Opportunities for which the potential gain outweighs the
potential harm or loss to your organization’s sustainability if you do not
explore them. Taking intelligent risks requires a tolerance for failure and an
expectation that innovation is not achieved by initiating only successful
endeavors. At the outset, organizations must invest in potential successes
while realizing that some will lead to failure.
The degree of risk that is intelligent to take will vary by the pace and level of
threat and opportunity in the industry. In a rapidly changing industry with
constant introductions of new products, processes, or business models, there
is an obvious need to invest more resources in intelligent risks than in a
stable industry. In the latter, organizations must monitor and explore growth
potential and change but, most likely, with a less significant commitment of
resources.
5.
Strategic Opportunities. Prospects that arise from outside-thebox thinking, brainstorming, capitalizing on serendipity, research
and innovation processes, nonlinear extrapolation of current
conditions, and other approaches to imagining a different future.
The generation of ideas that lead to strategic opportunities
benefits from an environment that encourages nondirected, free
thought. Choosing which strategic opportunities to pursue
involves consideration of relative risk, financial and otherwise,
and then making intelligent choices (intelligent risks).
7.
Innovation. Making meaningful change to improve products,
processes, or organizational effectiveness and create new value
for stakeholders. Innovation involves adopting an idea, process,
technology, product, or business model that is either new or new
to its proposed application. The outcome of innovation is a
discontinuous or breakthrough change in results, products, or
processes. Innovation benefits from a supportive environment, a
process for identifying strategic opportunities, and a willingness
to pursue intelligent risks.
8. Strategic
Opportunities
outside-the-box thinking,
brainstorming, capitalizing on
serendipity, research and
innovation processes, nonlinear
extrapolation of current
conditions, and other
approaches to imgining a
different future
Intelligent Risks
consideration of relative
risk, financial and
otherwise, and then
making intelligent
choices
Innovation
introductions of new
products, processes, or
business models
15. The Collin Technologies Case Study is a fictional Baldrige Award
application prepared for use in the 2013 Malcolm Baldrige National
Quality Award Examiner Preparation Course.
High-tech manufacturer in the interconnect industry that designs
and manufactures single-, double-, and multilayer printed circuit
boards (35% of sales) and rigid-flex circuits (40% of sales) that
are provided directly to customers; provides Contract R&D services
(25% of revenue)
Glossary of Terms and Abbreviations
CI2 = Continual Innovation and Continuous Improvement
CInvO = Chief Innovation Officer
16. Q. How do senior leaders create an environment for innovation and
intelligent risk taking, achievement of your strategic objectives,
and organizational agility?
The conscious shift to continual improvement and continuous
innovation (CI2) was embraced by the LT as a means to
reinforce an environment for innovation and intelligent risk
taking. Such an environment is conducive to achieving strategic
objective #3 (Figure 2.1-5) and leadership development. This
environment also enables organizational agility.
17. Q. How do senior leaders create a focus on action that will
achieve the organization’s objectives, improve its
performance, enable innovation and intelligent risk
taking, and attain its vision?
(--OFI ) 1.1 a(3), b(2) Beyond the LT’s embracing
the shift to continuous improvement and continuous
innovation, the approach used to create an environment
for and enable innovation and intelligent risk taking is
not evident. In addition, it is not clear how the monthly
LT performance reviews support innovation and
intelligent risk taking. A systematic approach in this
area may support Collin’s value of Creativity—“we
invest in continuous innovation.”
18. Q. How does it reinforce intelligent risk taking to achieve innovation,
reinforce a customer and business focus, and reinforce achievement
of your action plans?
OFI 5.2a(3) It is not clear how Collin’s workforce performance
management system, including the individual development planning
process, EO Survey process, 360‐degree feedback process, and
reward and recognition system, reinforces intelligent risk taking to
achieve innovation. Systematically using these processes to reinforce
intelligent risk taking and evaluate opportunities may help Collin
achieve its vision to lead circuitry innovation for the future.
19. Q. How do you manage innovation? How do you pursue the strategic opportunities that you determine are
intelligent risks?
In 2012 Collin recognized the need for an innovation leader. Candice Trobaugh assumed the role of
chief innovation officer (CInvO). She provides oversight for the Product Development and Innovation
Process (Figure 3.2-1), and the Performance Excellence group trains CI2 Teams on tools for
continual innovation and continuous improvement. CI2 Teams identify obstacles, and the CInvO
coordinates efforts of the LT to remove the obstacles for the team. When strategic opportunities are
identified through the SPP, the risk management assessment determines if the intelligent risk is
acceptable to pursue innovation. The LT rebalances the budget and staffing model to ensure that
sufficient resources are available, and the LT communicates priority changes through a communication
plan. At that point, a CI2 Team is identified to execute product development and/or process design and
management processes as needed to seize the opportunity. The Leadership Review Process includes
reviewing active CI2 Team progress. If sufficient progress cannot be demonstrated for a strategic
opportunity or if there are needs for reprioritization, the CI2 Team may be concluded so that resources
are continually applied in the most impactful manner.
20.
It is unclear how the chief innovation officer, the Product
Development and Innovation Process, the Performance
Excellence Group, and the LT work together systematically to
manage innovation and innovate processes for the future. For
example, it is not clear how senior leaders adjust budgets as
innovative opportunities arise or systematically decide to
discontinue pursuing innovation opportunities. Without
systematic approaches, Collin may not identify product and
process enhancements that best support its innovation‐focused
vision.
21.
Intelligent risk discussions are triggered by CI2 teams. The
number of discussions initiated is shown in Figure 7.4-12.
Based on year-to-date activity, the total number of discussions
is projected to be 12 for 2013.