The 9 rules of innovation

Collaboration is the new competitive advantage 

Startups , Innovators and Technology Companies are under attack by the ATO and AusIndustry

I usually write and post about positive things and growth ..... this reticle is different - as I believe something needs to be done - soon.

The positive news - is that we have an innovation minister in Karen Andrews that seems to be listening and is looking to make a change.

The Bad News

Australia has slipped from 16th to 18th place, according to the World Economic Forum (WEF) - And is getting worse !

The top 7 places in the global digital competitiveness rankings are dominated by Singapore, China, northern Europe and the US. These countries lead the way in embedding and leveraging digital technologies. Critically, they are characterised by business and governments that embraces new digital technologies and innovations. 

Innovators , Startups and Technology companies start off as high risk ventures - going out on a limb to build new products, services and businesses . 

These businesses in Australia have recently been under attack and at risk for claiming R and D tax Concessions .

The rigid re-interpretation and tightening of the laws regarding the eligibility of software claims - has resulted in a clawback of $200 million in the 2018 financial year from companies that had made claims under the R&D Tax Incentive (RDTI) , and has effectively put all software developement and innovation at risk - resulting in a reduction in R&D support going where it is best deployed, at the cutting edge of Australian technology.

This is putting the survival of many SME and Startup companies focussed on Research and Development and innovation at risk - which will, in my view, is not in the best interests of the future of Australia.

AirTree Ventures co-founder Daniel Petre (former Innovation and Science Australia board member ) has call government’s treatment of tech companies “appalling”.

Small business ombudsman Kate Carnell has launched an investigation into this after receiving complaints from small business about unfair treatment by the ATO and AusIndustry in relation to R&D tax incentive claims.

“Of particular concern are audits going back several years, which have resulted in the ATO demanding businesses repay the R&D Tax Incentive, often with a severe penalty applied,” Ms Carnell said.

“Unfortunately some of these businesses have been told to pay back the tax benefit years after the R&D has been completed. This is well after they received the refund from the ATO and reinvested that money back into the business,” she said.

“Most of these businesses were genuine in their belief they were undertaking R&D and that their claims were totally justified.”

The Good News 

Industry Minister Karen Andrews has engaged with industry through a series of stakeholder roundtables since the election where the administration of the R&D tax incentive has been raised as an issue, particularly among startups.

I look forward to reporting a positive outcome for our Innovators , Startups and Technology Companies. 

Here’s hoping that we can once again bring Australia to the forefront of Global Innovation - and encourage innovators to take risk, innovate , and do research and development - with the blessing and support of Government 

If you are innovating or are interested in being a part of our innovation community , join us at our bbg innovation forum 

https://www.eventbrite.com.au/e/bsi-innovation-forum-powered-by-bbg-tickets-50474711220

Is your organisation ready for the tsunami of change from digital disruption?

“If the rate of change on the outside is greater than the rate of change on the inside – the end Is near” Allen Pathmarajah quotes Jack Welch – Former CEO General Electric

We are undergoing massive technological change. Is your organisation ready for the inevitable change?

Monika Graham shared with me the results of a survey of 900 business, transformation and change leaders and consultants in industries from banking and finance, manufacturing, technology, consulting, government, academia and health was undertaken on the effects of digital disruption  by the Australian Transformation and Turnaround Association (AusTTA)  last year with some interesting insights . 

These were some of the issues identified

Boards and C-suite leaders are well aware that digital disruption is happenning - creating new competitors and making existing processes redundant (for better or worse!) but 42pc of those surveyed identified the resistance of boards and senior management to change.

16pc identified the lack of expertise in how to meet today and tomorrow’s challenges as an issue and 17pc  listed increased competition. 

Interestingly, technology was not considered a major challenge

Strategies to address these issues 

• Obtaining information and continuous learning on  how to transform needs to be a major focus 
• Revisit the value proposition, embracing change, and accelerating innovation and transformation.
• People are key – the best ideas for transformation come from their own people – they have the first-hand experience of what works, what does not and what customers want.
• Leaders have to bring their people on the journey with them. Management and staff are open to change if provided with the tools, leadership vision and empowerment to make a difference. - cost-cutting in favour of technology is the antithesis of this.

We have a choice  on how to embrace this tsunami of change. With excitement and optimism or fear! 

One thing is for certain - our organisations cannot leave our future in the hands of consultants, government or anybody else . 

We as leaders and individuals need to equip ourselves with the knowledge and surround ourselves with most experienced people around us - and embrace the concept of continuous learning - to survive and thrive in today’s changing environment and its myriad of challenges and opportunities. 

• How are you going to take advantage of the tidal wave of technology, machine learning, AI and blockchain, using your existing untapped potential of your workforce.
• How are you going to embrace this change and in fact be part of this innovation and change that promises to take your organisation to a new level of productivity, growth,profitability and sustainability?
• Is your organisation’s operating system too rigid and lacking in novelty that comes with different perspectives and world views?

An organisation is not a machine based on algorithms that can be disposed of by a used by date. It is a complex mass of humans with people on the fringe and exceptions to the ordinary – brimming with potential, ideas, innovation and improvements wanting to be released.

How can your organisation release this potential?

We need to embrace diversity as the portal to innovation and antifragility.

Staying the same, maintaining the status quo and doing the same thing as you’ve done before – doesn’t cut the mustard – you will go backwards into oblivion. - Ivan Kaye - BSI 

How can we get the humans in your organisation to feel safe and share their ideas and innovations? (#psychologicalsafety)

How can we get them to have a voice?

How can you feel comfortable in your organisation, to contribute and embrace the inevitable change?

Here is a survey for you to fill out for the 2019 survey https://www.surveymonkey.com/r/AusTTA2019Survey

People who fill out the survey will be invited as my guest to a food for thought panel in October with leaders in the space of Transformational Change. 

How do Companies gain , retain and maintain talent

Great Insights from George Giamdakis - https://www.linkedin.com/in/ggiamadakis

Companies want to attract and retain great talent, especially millennials and Gen Zs

To achieve this millennials and Gen Zs look for and seek evidence of:

👍a clear and motivational vision (not motherhood statements) 

👍the genuine approach of giving back to a community cause (not just token actions)

👍an inclusive sharing culture that shares the same values and beliefs (not just a poster at front reception) and

👍leadership with empathy (not managing from a distance with no real interest in people’s lives and what makes them tick)

👉Q How clear and motivational is your vision?

👉Q How do you live profit for good?

👍Enjoyed this post click the thumbs up icon

#millennials #recruitment #peopleandculture #business #motivation #genz #talent

The CEO conspiracy - Should CEOs seek a new purpose? Is Capitalism crumbling?

“Move Over, Shareholders: Top CEOs Say Companies Have Obligations to Society” - WSJ 

“Group of top CEOs says maximizing shareholder profits no longer can be the primary goal of corporations” - Washington Post 

So what should the Corporate Purpose be?  - is it about shareholders profit or more? Has the pursuit of profits worked? 

The heart of capitalism and stock exchanges has been for organisations to  exist to provide more money now and in the future for shareholders of the organisation.

No more - said the powers at “The business roundtable” (181 of the 193  CEOs including the chief of executives of Amazon, American Airlines, and America's biggest bank, JPMorgan Chase and Johnson and Johnson)

A corporates purpose should include a 

• Commitment to employees providing fair wages and "important benefits," 
• Support communities where they operate and dealing ethically with suppliers.
• Diversity and Inclusion

These changes  have been as a result of demands from employees , activists and social media. 

"This new statement better reflects the way corporations can and should operate today. It affirms the essential role corporations can play in improving our society when CEOs are truly committed to meeting the needs of all stakeholders." Johnson & Johnson chief executive Alex Gorsky

Other signatories include General Motors' boss Mary Barra, Ford's Jim Hackett, and Apple's Tim Cook.

Seven CEOs declined to endorse the statement, including Larry Culp of General Electric Co. and Stephen Schwarzman of Blackstone Group Inc.

What are ways in which corporates can add value to their stakeholders and their communities?

Is being held accountable by employees and stakeholders to do the right thing enough? 

'Should those of us who are blessed pay more tax?’

Should governments  penalize companies for data breaches or force them to improve the diversity of corporate boards or determine make up of employees in an organisation? 

My View 

My view is that capitalism works . Organisations that will survive and thrive will look after its employees and stakeholders and customers . 

If customers do not support them - they will go out of business . They will drive corporates to do the right thing”_

What do you think ? 

So what is Agile ?

The Wall Street Journal provides an informative  article on Agile and its power . Thanks Curtis Carlson for the link.

https://www.wsj.com/articles/are-you-agile-enough-for-agile-management-11565607600

And thank you Stephen Denning from Forbes for the amazing insights on the power of Agile 

https://www.forbes.com/sites/stevedenning/2019/08/13/understanding-the-agile-mindset/#854553d5c17f

Below is a succinct summary of what Agile is by giving 2 real life examples - Starmark and Campbell’s soup 

As Gary Hamel says, “Strategy gets set at the top. Power trickles down. Big leaders appoint little leaders. Individuals compete for promotion. Compensation correlates with rank. Tasks are assigned. Managers assess performance. Rules tightly circumscribe discretion.”

One method of implementing the strategy is Agile - so what is Agile 

Agile is a set of tools 🧰 based on core values and a leadership mindset of efficiency, empowerment and accountability - with doing things in small bursts and having the customer as a core member of the team .

It’s about using any resources available to the organisation - and a focussed effort of breaking down silos 

Below is a great summary of differences by Stephen Denning on the differences between an Agile and A beurocratic mindset . 

What they did at Starmark 

Accountability  happens by daily 20-minute check-in meetings. All employees describe in 60 to 90 seconds what they are working on, what they plan to deliver that day and what obstacles they face.. 

Jacqui Hartnett, Starmark’s president says about the accountability sessions . “You make and keep promises to yourself and others, and do what you said you were going to do.”

Clients get to review finished features or functions of their projects at two-week intervals, or sprints. “You fail faster, and that’s a huge relief,” 

Mr. Edenfield says. One team made a quick midcourse correction in a branding campaign recently by showing the client a prototype of a website, rather than the finished product. 

When the client objected to the color scheme, Starmark fixed the problem right away, saving the team a few days of makeup work.

That shift also reduces stress, says Brett Circe, Starmark’s chief digital officer. “There’s no late night or weekend work re-engineering the project at the end.”

One Starmark client, senior marketing executive Brandon Hensler, says meetings at the agency are brutally honest but often improve on his team’s ideas, aided by people from all Starmark’s departments working together. 

When Mr. Hensler asked Starmark to produce a two-minute branding video for the website of his employer, Nova Southeastern University, Starmark suggested three shorter videos instead that could be used for more purposes, including social media. “They took our concept and made it so much better,” he says.

Campbell soup case study 

Craig Slavtcheff, vice president and head of R&D Campbells soup 

The approach is helping trim the company’s average launch times for new products to nine to 12 months from 18 to 24 months.

He says the biggest hurdle for employees was ignoring old silos and reaching across departmental boundaries to access any resources they needed. Meeting discussions are terse and fast-paced,

“We have a rule: Go no faster than the slowest person,” Mr. Skeels of AgencyAgile says. “Before we move onto another point, we say, ‘Does everyone get that?’”

Meeting participants are often asked to call out blockers—colleagues or clients who are impeding their work. Talk about obstacles is supposed to be free of blame or punishment. “When a team meeting is done right, there are few things more inclusive and soothing,” Mr. Skeels says.

But critical or aggressive team members can wreak havoc by demeaning others. “If a manager runs the meeting like a dictator,” Mr. Skeels says, “it becomes the worst meeting of the day.”

About Agile in USA

Some 75% of North American employers are using agile practices at least sometimes, up from 71% last year, according to a survey of more than 3,130 project managers by the Project Management Institute.

Agile techniques can speed productivity by 20% to 50% and improve the quality of products and services, says Jack Skeels, chief executive of AgencyAgile in Los Angeles, who consulted with Starmark on its conversion. But the principles need to be tailored to fit particular teams, their mix of work and the company culture, he says.

A GUIDE TO AGILE JARGON

Agile: A tool kit of practices for turning complex projects over to self-managed teams that work closely with customers to deliver work in stages and respond quickly to change.

Backlog: A prioritized list of everything that needs to be done to complete a project.

Sprint: A work period of a fixed length, usually one to four weeks, that ends in a demonstration of work accomplished.

Promise: The work a team has committed to deliver during the current sprint.

Scrum: A popular framework for putting agile methods into practice.

Scrum master: A person who helps teams manage themselves, making sure they have the information and resources they need.

Stand-up (or huddle, scrum or check-in): A meeting held at the same time every day when team members report briefly on work completed, tasks planned for that day and obstacles that are getting in the way.

Kanban or scrum board: A display showing one sticky note for each task in progress, aligned in separate columns based on their status—to-do, doing or done.

Stories: Narratives defining features, functions and other work to be delivered, explaining for whom the task is being done, what the customer wants and why.

Timebox: A maximum period of time allotted to produce something of value for the customer.

Waterfall method: A traditional method of organizing projects, moving an entire body of work in steps from planning to designing, testing and launching.

Australia develops first AI created flu vaccine

Australian researchers just released the world's first AI-developed vaccine and it could prevent another horror flu season

Researchers at Flinders University have developed a new vaccine believed to be the first in the world to be designed by an AI program called SAM (Search Algorithm for Ligands). This was done by taking existing drugs that work,and drugs that don't work or have failed, and showed all of that to the AI program called Sam . Sam then took and tested, different formulas and came up with a winning vaccine 

Funded by the US National Institute of Allergy and Infectious Diseases to the tune of $50m, the vaccine is currently being rolled out for 12-month trials in the US.

The rammifications could be huge, with the technology expected to be able to create better vaccines years ahead of humans and at a fraction of the cost.

Research Director of Australian biotechnology company Vaxine and Flinders University Professor Nikolai Petrovsky led this development with the help of USA NIH funding to the tune of $50m, after being rejected for funding by Australian institutions.

“The US system values ambitious, innovative and futuristic research whereas Australian funding bodies are highly conservative and only fund me-too incremental research where the outcome is largely already known,”

This was exceptional as Australia has a great record at publishing basic medical science and has a poor track record of developing new drugs or treatments. “ 

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