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Memorial's Innovation Center: A Blueprint for the Desired New Future
Launching the Innovation Process at Memorial
Now that the Board of Trustees and Directors of Memorial approved the Innovation Policy (complete with funding), the next challenge will be operationalizing the innovation process throughout the entire System. Much like our recent World Class Service transformation, everyone and everybody within Memorial is expected to participate fully in making Innovation a core competency much like Quality and Service (i.e., Quality, Service and Innovation become our organization's Big Three Core competencies for the future.) This in no way should detract from our Six Pillars of Excellence.
A successful launch needs to have the full support of both the board, senior management and all levels of leadership, in order to withstand the higher risks and disruptions caused by the new innovation culture, processes, and potential partnerships. The Administrative Staff has already gone on September 18, 2002 off-site for 4-6 hours to become fully immersed in the new innovation strategies, processes and training. This was entirely lead by our Idea Propulsion Team and will lead to a rock solid basis of support for the Innovation transformation journey. A complete rollout schedule, training requirements, time frames, resources, and roles and responsibilities was covered and agreed upon by the end of the retreat.
Memorial's approach to Innovation will be to trifurcate into three major Pathways. The first Pathway will target everyone in Operations and will have as its' major focus Product Line and Customer Service Differentiation. Creating the WOW! "Memorial Experience" will be the primary outcome with all departments, companies and cost centers breaking the "commoditization trap" with many value added differentiation innovations. All areas of Memorial will focus on redesigning the critical customer experience in order to grow revenues and market share as well as dramatically raise satisfaction scores and customer loyalty. The Innovation budget (+1%) will support many of these innovations, but every cost center will be expected to fully participate in implementing a regular flow of innovation and creative ideas. The Operations Pathway will make extensive use of the Tom Peter's WOW! Project, Ninthouse, and Circle of Innovation materials. The innovation process will be very decentralized without a centralized cost center or department and should function much like our World Class Service initiative. In this way, innovation is more like a verb than a noun and becomes how we create value and excellence for our customers. We will build incentives, reward and recognition and training into the traditional line authority and responsibility system that we have today. All areas of Memorial will have access to some financial resources for site visits, prototyping, experiments, and experience redesign. Projects that grow and become very significant (over $50,000) may need to be coordinated and end up on a separate project track. A separate set of W - mentors (3-4 people) will be given specialized training with more depth and site visits in order to help consult and advise leadership on the process, use of tools, and training. It is expected that all line directors, managers and supervisors will be responsible for helping to teach the WOW! Process, use of tools, and lead the innovation initiative.
The second Pathway
will target New Business Start-Ups and brand new revenue sources for Memorial.
This will be a separately organized function that has as its' primary
focus the development of new profits and revenue that will help offset
the declining reimbursement of other acute care operations. The target
customers will be those with discretionary income and may well target
boomers and the "worried well". The emphasis of this new Venture
Center or Innovation Institute will be to start-up new businesses, partner
with existing or new ventures, serve as a "test bed" center
for new innovations, or take a direct equity position for new ventures.
The source of funding will be the Innovation budget (+1%), but unlike
the Operations Pathway there will be a small separate staff that leads
this new business development. The normal spending limits for senior management
remain the same. We should begin to staff this centralized function with
a full time Director who has a background as an entrepreneur and has some
new business start-up experience. After this very important hire, the
next person may be a contract person or an employee who is an inventor/prototype
person and is good with experimentation, prototyping, and visualizing
techniques. Perhaps a background in industrial engineering, industrial
design or architecture would be extremely helpful. The team from IDEO
maybe used in designing this position and in recruitment as well. The
next position may be an intuitive/observer type of person who has a background
in intuition, observation skills, human behavior or anthropology. This
new team will be the core leaders in helping Memorial launch it's new
business start-ups. Another function of this new team will be to serve
as I-mentors to those in operations who may have an idea that could develop
into a new business or a significant new revenue source. This team will
also coordinate new initiatives that come out of the H* Network once they
get to a certain stage of development. In most instances the new team
will work with the Idea Champion or Idea Owner to help support them through
the separate Innovation Process. Generally new businesses that have the
potential for $10+ million in revenues will be the primary focus. It is
anticipated that Memorial's new business start-up may have an external
partner or come through the H* Network. A small board of three individuals,
the Memorial Venture Center Board, (Chris Murphy, Scott Malpass, and Teri
Willey) will meet quarterly or as needed to review projects or approvals
for funding for this new Business Start-Up area.
In summary, the
new three Pathways are as follows:
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