배움과 공유의 시간

 HR's role (constructing organizational structures that can continue to innovate and designing organizational operational mechanisms)

1. Innovative Organizational Mechanism Design

According to experts, the innovation equation is ‘Innovation’ = ‘Smart People’ + ‘Creative Environment’ +
Is ‘Outlet for ice’.
To summarize Google’s product innovation activities in this innovation formula:

Under the 20% rule of Google, all new ideas in the company are proposed by members in the Bottom - up method and engineers are encouraged to spend 20% of their time on projects of their own choosing. And Google's organizational management style can speed up the productivity and speed of innovation by forming a team with a small number of people centered on a small Cross - function team to prevent free rides between team members and focus on what is essential.

In the case of Google, responsibility and authority for new product development are fully delegated to the project team and the operation of these project teams is entirely PM-oriented.The company is responsible for the P&L, delivery time and quality of the product by leading the major decision making of the entire process in which the new product ID is found and commercialized.

Through its own innovation governance, management policies, Google is creating a creative environment where innovation can continue, through the Google Product Council and Strategy Forum, deliberating ideas, assigning people, money to selected ideas, and managing the entire process of innovation such as periodic checks.

In addition to the 20% rule, 70 : 20 : 10 suggests that 70% of engineers' time use should be spent on core business, 20% on expanded projects, and 10% on fundamentally new business projects.

Through Google’s unique innovative organizational operation, it can create an atmosphere where 1) resources are made available to new businesses, products, 2) collaborative structures and processes are used to integrate the overall expertise of the organization in the process of commercializing creative ideas, 3) innovation must be incorporated into organizational strategies, and 4) creative ideas of ceaseless members can be voluntarily proposed.

For the success of innovation, innovation projects, product development should not be viewed or begged to secure the time and resources needed in the process of commercializing new business ideas, but should be coordinated across the boundaries of the organization without silo between each organization, have interest and responsibility for changes in the top management, and have assessment standards and methods for innovation. And based on a clear hierarchy, the idea of innovation cannot be unilaterally brought down from the top.

From this point of view, the IBC organizational aspects of the market are a constant source of disruptive innovation and products.
Organizational operating mechanism for discovery and commercialization should be designed, and the following two big things in design:
Has a task.

1 Building Governance for Innovation
2 Maintaining the PM-centered Project System
3 Finding new product ideas and securing a connection system for commercialization
(including establishment of business/product ID and item pipeline)

Building Governance for Innovation
In the case of leading companies seeking innovation, the company has a ‘innovation governance’ that enables the selected business, product ID, to be commercialized without interruption in the middle of the development and commercialization of new business opportunities.

It is far from easy to persevere with the long journey that the ideas of immature new businesses and products are adopted, loaded and led to commercialization, and to put in large organizational interests and resources. Easy to be crushed by existing short-term, centered organizational systems.

According to research by corporate management experts, companies that maintain their survival and financial performance in a complex, ambiguous and rapidly changing environment simultaneously manage the gradual improvement of products and non-continuous innovation of products within their businesses. It requires a different organizational approach between existing and new businesses.
Ask. Existing businesses in the growth industry require efficiency, control, and clear hierarchy, but flexibility, autonomy, and collaboration must be managed to develop new businesses. Successful companies manage these contradictory structures, procedures and cultures skillfully.

IBM, GE, Google, and others are managing innovation, making it a good fit for different business environments.
If you look at the organizational operation, first, you can separate the organization from the existing organization, like IBM and GE, and separate the new business organizations.
It runs on the road and Google operates in an integrated way within its existing organization.

IBM is the CEO of an EBO organization dedicated to innovation.
EBO Project Team to discover and commercialize a new project that can cost more than $1 billion within 4 years
I'm going to the Global Technology Outlook team at the same time to discover the future technologies that I need for my overconfidence business.
in motion

Google has a separate innovationGovernation, but it's basically a continuation of the Start - up organization.
The company has an easy-to-deploy organizational operation method for discovering new business and product items.
Enterprise-wide, through future investments, new business items are prioritized (Top 100List) + management.
Top's interest in new business, 70 : 20 : 10 rule, 20 percent rule, management policy and small project team
The company manages innovation everyday through the central organizational operation and evaluation/compensation system.

Second, we are building a clear innovation governance, through which we have separate funds to take the lead in finding, experimenting and commercializing the innovation idea.

In this regard, IBM's governance of innovation as a separate organization will be able to recognize how a well-trained competitive approach to business success in past mature markets can impede the evolution of new growth businesses and understand the mechanism of organizational operations for successful innovation in enterprises.

When he took office, Lugersner emphasized innovation to emerge from IBM’s business crisis and instructed each business to allocate and execute one growth project.
However, most projects are not pushed forward and are scaled down or suspended.After looking at the reasons, Mr. Lugusner found that it was an over-obsessed obsession with existing businesses. "It's hard to work for a new business at a time when we need to focus our budget and manpower on the existing project and the project itself is not reflected in the quarterly results," said the heads of the business division.

As a result, Lugusner concluded that new growth projects within IBM cannot evolve from the existing business operating system. At IBM, the barriers to innovation could be addressed as follows:

• Existing management system provides value for strategic business development and rewards at the center of short-term performance execution
a poor hand
• The company is currently interested in the market and existing Offers.
- Product development process focused on existing markets and customers
• Stable profit over high price and profit, emphasis on profit and loss improvement
- unrealistic expectations that the new project requires more than a break-even point within a year or two.
• ‘Factor based Financial analysis’ new business based on market insight
a hindrance to the business development of an idea
• Lack of diskipline in which the company selects, tests, punishes and terminates new growth projects
- crushing new business opportunities with existing management systems
• Business leadership that IBM designs and develops new business models
Lack of Skills, New Start - up Requires Patience, Lack of Continuity

Through these results, Lugusner said, "The growth industry (Hrizon1), which is currently the main focus of the business, is the mature business (Hrizon1).
Differentiate between Hrizon2 and new business (Hrizon3) and organizational operation and management methods by project.
became aware of In the end, Lugusner created a separate new business organization and EBO organization, separate from the existing business, to intensively foster Hrizon3 and integrated the Horizon2 growth project from exploration of promising items to full transfer to related business units.

IBM's Innovation Governance is characterized by the interest of CEOs in existing business units.
It operates in a way that leads to cooperation. In the EBO organization, the EBO Chief Executive is appointed
A new business executive is in charge of each growth project team after reporting the folding idea or implementation situation in person.
In addition, the chairman directly participates and not only new business executives, but also heads of business units and executives related to business units.
A monthly meeting attended by the participants to share the current status of the new project in the conference room and the existing project.
It is required to check the level of resources

And to have a Sponsorship for new business projects to senior executives in the business sector and business units.
I'm doing this, and I'm transferring one senior business executive to a project within the EBO.
is responsible for the success of the project and is supposed to provide organizational cooperation and support.
EBO Chief Executive is managed to prevent the elimination of business items that have no benefit to the project manager but have a negative impact on the profit or loss of the business unit in the short term but have a financial effect on the company in the long term.
(Of course, it is important to come up with an exit strategy that can ‘quick stop’ quickly when progress is judged to be insufficient or customer value creation is not feasible during the new project.)

In conclusion, companies in uncertain and rapidly changing industrial environments such as IBM and GE need separate organizational structures, governance and other business capabilities to manage innovation, so they need separate organizational operating systems, incentives and procedures in conjunction.