Creating a Culture of Fearless Innovationnawb.org/forum/documents/workshops/Driving...

Creating a Culture of Fearless Innovation:

Process and People

Snap-on Value CreationPrinciples We Apply To Create Value

Rapid Continuous Improvement

Innovation – create a culture of fearless innovation

Quality

Safety

SNAP-ON VALUE CREATIONPrinciples and Processes We Apply To Create Value

Customer Connection

Innovative product idea gave company its start in 1920 (sockets) “ Five does the work of 50” Pioneered direct-to-mechanic sales and financing Still driving growth through innovation today… Launched

Innovation Works (Innovation Center) in 2009.

Snap-on A Leader From the Start in Meeting Customer’s Needs

A variety of global brands, serving a broad range of customers

Building a Culture of Fearless Innovation

1) Have a Process but stay flexible2) Create a Diverse Innovation Team3) Be Able to Tell a Great Story4) Be Customer Centric – Listen and Observe5) Have a High Level of Empathy 6) Get Out and Explore7) Have a Learning Agenda

Determine your target market, customer and product(typically secondary research – mining existing data sources)

Develop your customer screener, discussion guide and timeline(what do you want to learn, who do you need to talk to, how will you do it)

Connect with customers (various primary research methods involving direct interaction with customers)

Create the Customer Insights (AHA’s)

Debrief, refine and share the results – take action!

Customer Connection: Simplified Process

Building a Culture of Innovation

2) Create a Diverse Innovation Team

CREATE A DIVERSE INNOVATION TEAM

Leverage individuals across the organization (not just those working in innovation!)

Key Traits: Deep expertise … in something Extremely curious High level of empathy – “other people matter” Creative – creative/innovative mind set Can focus on the moment (mindful) Risk-takers – sense of agency/personal control Ability to synthesize complicated information Story tellers Life long Learners – Learning Agenda

Building a Culture of Innovation

Internal Resistance (major block) “I know more than the customer” – “I need to educate them” Let go

of your Ego! “I am too busy” Collaboration, Customer Connection and

Innovation are part of each associates performance goals Nervous/uncomfortable with customer interactions. We provide

training and help lead the interviews. Checking e-mail, doing conference calls, etc during customer

connection trips. Be in the moment “This is too much work”. The results have proven extremely

valuable in driving top line growth

Romania: Wheel Service Equipment

Building a Culture of Innovation

3) Be Able to Tell a Great Story

Secrets of Great Story Telling

Get out and do things! Very few great stories come from sitting at your desk.

Observe! Pay Attention! You have to see interesting events happen to have something interesting to talk about.

Have Empathy! Stories are much better when you empathize with the main characters. What is the insight?

Keep it Simple! Keep it Short! Forget about the extraneous details that are not pertinent to the tale. No Blue Books!

Have a Punch Line! What is the so what? In the world of business and innovation, what is the implication?

100 Calorie Packs

Building a Culture of Innovation

4) Be Customer Centric: Focus on the End-User Listen – what are users really telling you? Observe – what do others not see? Ask great questions (but Listen!)

Great Interviewing: BasicsKeys to Success LISTEN!!! Most of us only actively listen for 10-30 seconds then our minds

wander. OBSERVE!!! This is about them – it is not about you Keep an open mind – have empathy Listen for insight, not quantitative observationsWhen listening and observing it is easy to overlook important information (pay

attention and be in the moment, be mindful).

Work in teams (2-3) – take notes, pictures, etc Stay on task! Keep the person you are interviewing on task

Tropicana Packaging

What defines Fresh?

Building a Culture of Innovation

5) Have Empathy Walk a mile in the shoes of your customer Make it a multi-sensory experience Listen and Observe “Other People Matter”

Heavy Duty: Agriculture

Heavy Duty: Agriculture

Building a Culture of Innovation

6) Get Out and Explore Take Risk Be uncomfortable Be in the moment: mindful

Wind Tower Hatch

Wind Tower Hatch

Wind Tower Hatch

Building a Culture of Innovation

7) Have a Learning Agenda Create a diverse innovation team Be a life long learner Foster Curiosity

27

GENERATIONAL SNAPSHOT

Gen ZMillennialsGen XBoomersBorn 2000 - PresentBorn 1980 - 2000Born 1965-1979Born 1946-1964

74+ millionUS members

75 millionUS members

66 millionUS members

75+ millionUS members

Iconic Celebrity Tom Hanks Kurt Cobain Mark Zuckerberg Jaden Smith

SocialMedia NA Chatrooms Facebook Snapchat

TV Show All in the Family Cheers Adult Swim [Vloggers]

First Gadget Polaroid Atari iPod iPhone

28

HISTORICAL TOUCHSTONES

9/11 Fall of the Berlin Wall2008 Recession

Iraq/Afghanistan War Columbine

Election of Obama Challenger Explosion

Reagan Presidency

Monica LewinskyOJ Simpson Trial

RELEVANT FOR MILLENNIALS NOT RELEVANT

As part of a generation that grew up with instant everything, many Millennials have a sense of immediacy not shared by older generations.

snap-on | the young technician: lifestyle (2008)

INSTANT GRATIFICATION

30

SNAPSHOT: Blue Collar/Working Class Millennials

• Share of men in their 20s working in blue-collar jobs:1980 = 54% 2016 = 36%

• Average annual earnings for a high school-educated man in his 20s:

• 30% of Millennials in the military or blue-collar jobs get help with the rent from their parents, receiving an average of $1,400 per year

• Projected that minorities will comprise the majority of the working class ages 25-34 by 2021

• Increasingly avoiding traditional four-year colleges, even as high school graduation rates increase

1980 = $34,000 2016 = $25,000 ($11,490 in 1980)

31

They’re Very Self Confident and

Focused on “What’s in it for me?”

The key to understanding Millennials isindividualism. More focus on self, lessfocus on social rules. More confidence,more positive self views, “what can Iget out of this” in job situations.- Jean Twenge, Psychology Professor at San Diego State;Author of Generation Me and the Narcissism Epidemic

31Proprietary & Confidential, CE, Inc.

MILLENNIAL TRUTHS:

32

Women = 20 Men = 22

They are Taking Longer to Grow Up

The share of teens working summer jobs hasdwindled since the early 1990s – in 2015, fewerthan 1/3 of teens had a summer job

NUMBER OF 16-YEAR-OLDS WITH A DRIVER’S LICENSE

1983 = 46.2%2008 = 31.1%2011 = 27.5%2014 = 24.5%

AVERAGE AGE OF MARRIAGE1950s

Women = 27 Men = 292016

1/3

MILLENNIAL TRUTHS:

33

% of 18- to 34-Year-Olds Living… 1960 2014In Parents’ Home 20% 32.1%

With A Spouse Or Cohabitating 62% 31.6%

With Family Other Than Parents Or In Group Quarters (e.g., Dorm) 5% 22%

Independently (Alone, With Roommates, Single Parent) 13% 14%

In 2016, just 24% of 25- to 34-year-olds had experienced all four of what the Census Bureau called major life milestones: having lived away from parents, having been married, having lived with a child and being in the labor force…vs. 45% in 1975

They are Taking Longer to Grow UpMILLENNIAL TRUTHS:

NEW TECHS: LIVING SITUATIONS

STRUGGLING ONTHEIR OWN LIVING SINGLELIVE AT HOME LIVING WITH

GIRLFRIEND/WIFE

• Saving money to move out with financial stability

• More disposable income to invest in tools

• Has a lot of student debt

• Not a lot of disposable income

• Doing okay financially

• Enjoys living on his own and making money

• Enjoys “toys” (e.g., electronics, snowmobiles)

• More responsible• May have kids• More willing to

invest in tools but has family-related financial obligations too

35

Proprietary & Confidential, CE, Inc.

They grew up with a lot of support and an emphasis on “specialness”

What are the implications for school and the workplace?• They want positive feedback• They want to know why they’re doing

something • They want to feel like they’re progressing

“They need praise, and criticism needs to be framed in terms of ‘I want you to succeed, and here’s what you can do better.’…Smaller promotions, faster, seems like a better management strategy for them.” - Jean Twenge, Expert Interview

They All Got Trophies

35

MILLENNIAL TRUTHS:

36

Proprietary & Confidential, CE, Inc.

Many Aren’t Used to Working Hard

Fewer had jobs in high school/summer jobs to lay a foundation for hard work

A lot of guys with questions are more interested in how to make it on YouTube vs. working in auto repair. - Eric the Car Guy, YouTube Personality, Expert Interview

They don’t want to do the work. They just expect the money to come. - Shop Manager, Mercedes Benz

36

MILLENNIAL TRUTHS:

37

They are More Socially Tolerant

More open to gay marriage, transgenderism, interracial

marriage, etc.

Millennials tend to say “judge me based on my resume and what I

can do, not what I look like.” - Jennifer Silva, Expert Interview

37Proprietary & Confidential, CE, Inc.

MILLENNIAL TRUTHS:

38

Even as they socialize (virtually), this can be isolating:This generation spends a lot of time on their phones, spending less timewith friends, in-person…this includes less partying, less simply hanging out.- Jean Twenge, Expert Interview

Smartphones are a lifeline. Their lives are unstable and oftentimes they’removing around a lot…social media accounts are actually the moststable – Facebook is always constant. - Jennifer Silva, Expert Interview

And, not surprisingly, can get them in trouble in the workplace:These young guys are on their phones all the time. - Shop Manager,Mercedes- Benz

They don’t know how to operate without a phone…and it can get themfired. - Tech School Instructor

They Live on Their PhonesMore Prone to Distraction vs. Previous Generations

38

MILLENNIAL TRUTHS:

39

From relationships, to weekend plans, FOMO (fear of missing out) is prevalent and many Millennials are

always looking for a better offer

They’re Commitment-Phobic and Like to

Keep Options Open

39Proprietary & Confidential, CE, Inc.

MILLENNIAL TRUTHS:

40

Millennials are brand loyal to a small set of brands that speak to them and keep them engaged including:• Continuing to innovate to generate

interest/excitement• Social proof (endorsements from friends,

families, celebrities, etc.)• Staying true to your brand’s core identity

Brands need to create a deep, authentic and appropriately personal experience that makes their products seem tailor-made — or at least more relevant to — individual [Millennial] consumers. - MediaPost, 5/22/17

They Are Not Brand LoyalMILLENNIAL MYTHS:

41

GENERATIONAL DIFFERENCES: Many Millennials

Lack Basic Employability Skills

Sense of Proper Attire

Many experts attribute it to them not having jobs growing up to lay a basic foundation

Manifests Itself In Lack Of:

Interpersonal Skills

Punctuality

“I sat in on a meeting with industry folks today and they stressed soft skills. Can they be here on time? Can they talk to a customer?” - Tech School Instructor

41Proprietary & Confidential, CE, Inc.

42

I’ve had students come in who don’t know what a screwdriver is, but they have to pick it

up pretty quick. - Tech School Instructor

There is very little knowledge of tools when they first come in. We have a module dedicated to tools early in the curriculum. You’d be surprised

by how many don’t know the difference between a ratchet and a screwdriver.

- Tech School Instructor

Many Students Entering Tech School

are Unfamiliar with Basic Tools

42Proprietary & Confidential, CE, Inc.

43

Today’s Tech Students are Generally Physically Weaker than Their Predecessors

Partially a function of having not grown up doing physical labor (or any labor, in many cases)

The young guys are good at getting information, but not so good with their hands. They’re definitely weaker, especially when dealing with high-torque tools. – Tech School Instructor

We used to get a lot of farm-raised people that were used to physical work and getting their hands dirty. That’s changed. – Tech School Instructor

Millennials, the thoroughbreds of texting, may lag behind previous generations when it comes to old-fashioned hand strength…In a study of Americans ages 20-34, occupational therapists found that men younger than 30 have significantly weaker hand grips than their counterparts in 1985 did. - NPR.org, 6/13/16

44

44

JOURNEY OF A YOUNG TECHStage 1

(age 5 -18)

Stage 2(age 14 -18)

Stage 3(age 18 -22)

Stage 4(age 20+)

Stage 5(age 30+)

Grow up with a relative who works on cars

Tinker/take apart/fix mechanical things (from dirt bikes to computers)

VoTech high school

Work in a shop part-time

after school

Work on project car

Take shop classes in high school

Tech school or Community college

tech program2- or 4-year college Mechanical-related

job in the military

Go to work in an independent shop, lube/tire shop, etc.

Job in an independent shop

Job in a lube/tire shop

Job in a dealership

Start own shop Work in a city/fleet job

Transfer to service writing/

management job

Transition to a different

mechanical career (e.g., HVAC)

Continue working at

Stage 4 shop

Young Technicians: Extreme Faceshields

Building a Culture of Innovation

AND NEVER FORGET THE

POWER OF THE BRAND!

Brand: Tatoos

Brand: Tatoos

Brand: Tatoos