CEO, Kpmg, Horgan discussed on Killer Innovations
Our conversations with Stephen hill global head of innovation at KPMG. So Steve one of the things that I'm interested in hearing your thoughts on is. How do you create core? Capability around innovation inside Horgan's ization. Right. You know, it's you know, you and I've seen it. We were talking about it. Right. Innovation is a word has turned into buzzword. Bingo. Right. And it's very fleeting almost gets tied to the individuals. You know, who's leading it. But soon as they're gone, it's Cohen versus really creating it as as a sustainable part of an organization in you. You work with a variety of companies of all different sizes and different industries. And how do you make this thing of innovation? How do you really make it part of and sustainable for an organization and industry or Konami? Yeah. So. I I'm with you. I don't really like the charm innovation. What happens very quickly when you start to use that word is people start to think about ping pong tables earth falls. Right. I mean, that's not what innovation is innovation and die opinion is really to be perceived by lear- Shabazz, turning ideas into cash, right? And and future in your company me at the end of the day with the dynamics that are in our markets today with the speed of change, whether it's technological or social technology. You know, social changes economic changes are political changes. You've got to have vehicle in place. That is committed to understanding how the status quo needs to change as you have built over the years and years of capabilities and people that are operating the business, right? And we in most of our organizations are built today around operating ability very little of it has been spent. Really learning at Bill muscle in corporate structure to question. The status quo did actually change the status quo, and we didn't work last year with a group called innovation leader. To do some survey work, we surveyed, hundreds of of large organizations globally around the notion of how they're bringing innovation to bear. In what they saw the challenges were and they had four first you all. And I think this is by far the biggest issue. Seventy three percent of the respondents said the biggest impediment them with leadership engagement in support of innovation. So but doesn't start at the top the CEO and you being one of them understands us if the CEO doesn't say this is important to our future. It's gonna fall flat out of the shoot. Over half thought that politics are you know, turf wars between PNL's and in different departments were the next biggest innovation barrier. A little under house said culture, which I'll get to second was a big barrier. And then he went on to say, you know, the inability to act on signals the seconds of the last budget. There was no good. And then lastly, lack of vision or strategy in all these things are very very important. I think chance your question you've gotta have one leadership engagement. I think to get that done you need the parents what we talked about before around how important data in a are becoming in productivity ending competitive. This is your impetus because the status quo isn't designed take on the responsibilities to build those buildings. In fact, when you look at the marketplace round, a I today what you see is the suppliers take you all the skills in the marketplace, right and Moen a lot of the data to to drive learning and scale, you don't see much of that avail for this for the consumers of AI, which are everybody else other than the tech industry that is a big issue. And so I think, you know, the imperative for innovation has never been stronger as we hit this precipice. Of those that are going to really jump on productivity curves and get much larger because of that can be so much more productive than seen intelligence, human intelligence and data correlations. I can really satisfy customer behaviors in ways that you could never have done before like the Amazon if you will term innovations gonna be your parents. So you gotta get that in place number one. If that doesn't happen really you're wasting your time doing everything else. But once you have that you gotta start to build real ability around. How do you look at the marketplace? How you build sensory capability. How does that turn into real budgeted investments that by the way, the business has only investments link between the business and the group of people who are doing in? Beijing has to be tight and clear you black boxes you're dead meat. You will never scale in your business. Things are black box. In fact, it's quite interesting. Because here, you know, people ask me about my. Not one regret when I built up the innovation program office that HP. My biggest regret was having the word innovation in the name of the team. And in fact here at cable labs, we have taken the word innovation out of job titles. And we've taken the word innovation out of eighteen names innovations capability, it's not it's not a box on the org chart. It's not a team name is soon as you do that. You've just hampered that team because everybody in the outside look at them. I don't need to do anything. It's their responsibility. Yeah. And they're common fallacy is we have a strategy therefore, my investment portfolio for the next three or four years. Wrong right at the end of the day. You've got to have a systematic not episodic view of your investment portfolio in how agile you need to be as no relation to take on the challenges of point for century. So there's a lot of important things to do connect that scale right to your engine. That says I can prove that those investments actually were really good. In fact, I find that when you really try to some of these new things you can show they're far more beneficial from our turn on investments point that a lot of what I will call incremental sort of status coal improvement on the margin. Investments that you might make a business unfor- particularly things like time from business models. New ventures that are driving significant birth brand. New channels me here's a lot of things here that have to be done with discipline. At. You know, get the leadership engagement, you've gotta work on culture. Everyone to your point Phil, right? Although the were innovations and bad word, if you have a strong CEO people will call last to it. And if they think that they had a piece of that game. If they eventually yo says everybody has some responsibility here, and I want all of us to be innovative. And I want our culture to be innovative wants to be seen by our clients. By our customers is innovative. I think you'd change the actor you change the dialogue and the merediths by in a positive way one hundred percent agree. And in fact, when I my vice when I coach CEO's and that that are trying to establish their innovation capabilities. Is you have to think about the fact that when you walk through their front door year onstage, the entire organization will take their lead from how the CEO acts talked. It isn't about just mouthing the words and sending out on my mom wants a month listing projects you have to live it.