Global fintech and funding innovation ecosystem

Fielding high-performing innovation teams

McKinsey&Company | By Matt Banholzer, Fabian Metzeler, and Erik Roth | January 2019

innovation teams 10 traits McKinseyCompany - Fielding high-performing innovation teams

Innovation is a team sport. For projects to succeed, they must be staffed with the right combination of talent. Here is how to ensure your initiatives have the players they need to win.

The CEO of a globally recognized bank is frustrated with the lack of innovation performance delivered by her company. She sets up an incubator charged with developing a portfolio of new high-growth businesses. Inside this incubator, she places teams of high performers from the core businesses of the bank in part-time roles. Recipe for success, or a road to nowhere?

See:  Passion For Banking Innovation Fueled By Fintech, Big Tech Disruptors

CEOs of other companies face similar challenges around innovation. They struggle to identify “intra-preneurs” within their organizations who possess the rare mix of commercial and technical skills to shepherd new products to market. Employees within R&D groups may not have the external orientation to uncover valuable customer insights, while commercial leaders often lack the technical acumen to translate client needs into product attributes. Hiring “innovators” from the outside isn’t always an effective solution as newcomers may struggle to navigate complex, operationally focused organizations.

It can be tempting for executives accountable for the delivery of critically important innovation initiatives to believe that simply assigning an initiative to high-performing talent will yield success. However, when it comes to innovation, it is rare to see individuals who possess the full range of skills needed to lead an initiative.

For starters, innovation initiatives require skills and mind-sets that are under-developed in even the highest performers. The obstacles that arise in optimizing an existing dominant business model, such as boosting same-store sales or making a factory more efficient, are well-understood. History can be a useful guide in mastering performance in these environments. Scaling a new business successfully, on the other hand, often requires the experience to respond to and navigate new contexts where the rules of success are yet to be written. Innovators must craft bold but realistic visions, conceive entirely new value propositions that sync with customer challenges, and manage extreme uncertainty. In essence, the team must operate more like a start-up that can adapt development and commercialization plans based on continuously challenging assumptions and learning what will propel their business to scale.

It’s unlikely that one person will possess all the capabilities such initiatives demand. The likelihood is even lower in large, successful organizations. Instead, our experience shows that a well-constructed team that brings together the needed abilities of a world-class innovator can compensate for the lack of “founders.” To do this, first you must understand what the critical traits are that drive the most successful innovators, and second, you must have a method of assessing your employees against these traits. With this information in hand, companies are able to form high-performing innovation teams.

Ten traits of successful innovators

Over decades of combined experience working with companies pursuing innovation-led growth and start-ups, we have identified ten traits that distinguish the most successful innovators (Exhibit 1). While many of these capabilities are well-recognized, we have seen that reframing the discussion from individuals to teams helps tremendously to unlock performance in most organizations.

See:  Quebec needs new innovation strategies to level the playing field for domestic tech

Assessing each team member’s innovation aptitude can help you build a stronger whole. The ten traits can be grouped into four categories. We find that a successful team needs a base level of competence in all four.

1. Vision

The first group of traits highlights the ability to identify opportunities and inspire others to pursue them. Articulating a compelling vision, and the skill to translate it into a differentiated value proposition that breaks through the noise of the marketplace is a talent in itself. Uncovering is an intrinsic curiosity to see the possibility in a given context and distill the most valuable insights. “Uncoverers” use these insights and pattern recognition to interpret unmet needs and define highly valuable problems to solve. Generating is the ability to develop meaningful value propositions that solve significant customer problems. The most successful “generators” meld the big-picture market context with a thorough understanding of an organization’s strategic position, including its underlying capabilities. Selling is the ability to explain the nuances of what creates the value for a new proposition and carefully tailor it to the target audience. “Sellers” are compelling enough to motivate people to sway internal stakeholders on the value of pursuing a given innovation opportunity and marshaling the required resources to drive commercialization. These people are also gifted in crafting the marketing elements of a new proposition.

2. Collaboration

People with the second collection of traits foster effective teamwork and change management, bringing cohesion to a group. Those strong at motivating tend to be charismatic leaders adept at spurring action by creating a work environment that tolerates failure as a necessary aspect of the innovation process. Networking is the essential skill in maintaining connections among all the stakeholders in a project. Successful innovators seek input from outside the team and—as importantly—outside the organization, linking with ecosystem partners such as universities, other start-ups, or incubators.

Orchestrating, meanwhile, refers to the ability to supply projects with the needed resources and to monitor the team’s activities to ensure these resources are effectively deployed; in other words, that workloads are distributed appropriately and the team can “do more with less.”

People with this skill combine attention to detail and the ability to anticipate roadblocks with an ease in developing relationships, talents that make them adept at resolving conflicts.

See:  A Focus on the Future: How to Run a Forward-Thinking, Profitable Business

3. Learning

Most entrepreneurs exhibit absorbing, a quality manifested in a deep curiosity about anything that could help their venture succeed and a willingness to explore leads as they arise. Such individuals continually pursue new ideas and quickly incorporate lessons from multiple sources.

4. Execution

The final group of traits enables quick decision-making amidst uncertainty while maintaining a realistic pace of progress. Pioneering skills enable individuals to break down ideas into an achievable sequence of activities. These team members tend to be the first to challenge the status quo, have resilience and perseverance when faced with setbacks, and quickly adapt plans to new input or conditions. Deciding encompasses strong critical-thinking skills that enable people to draw conclusions from imperfect information.

“Deciders” blend pattern recognition with a high degree of pragmatism which enables them to synthesize insights, draw implications, and get things done. Tabulating, meanwhile, is the ability to apply financial modeling to size an opportunity and then use scenario planning to de-risk a given project.

“Tabulators” use their quantitative orientation to accurately judge risks and payoffs as they plan their initiatives.

While some of these traits are complementary—for example, pioneers are often good decision makers, owing to their ability to forge paths and make judgments amidst uncertainty—almost no individual will possess all ten. Some leaders are great at inspiring others, but poor at timely delivery of results. Others excel at planning but need help with selling the vision. Just as the best entrepreneurs know what qualities they lack and surround themselves with individuals who complement their strengths, so corporate innovation teams must ensure that the group as a whole represents all the key capabilities. A team lacking people with uncovering skills will likely end up focusing on incremental change. A group without networking capabilities may end up tackling a problem outside the company’s core competence without spotting an opportunity to bring in a partner.

Continue to the full article --> here


NCFA Jan 2018 resize - Fielding high-performing innovation teams The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Fielding high-performing innovation teamsFF Logo 400 v3 - Fielding high-performing innovation teamscommunity social impact - Fielding high-performing innovation teams

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Fielding high-performing innovation teams




Crypto | Feb 29, 2024 SEC scrutinizes Terraform Labs for a $166 million fund amid bankruptcy proceedings The U.S. Securities and Exchange Commission (SEC) is taking action against Terraform Labs by scrutinizing a $166 million transfer to the law firm Dentons.  Amidst Terraform Labs' bankruptcy saga, the move raises questions about the intentions behind substantial financial transfers made since the start of 2023. The SEC's allegations suggest these funds may have been aimed at evading potential future judgments related to the SEC's lawsuit against the company. This development adds a new layer to the complex narrative surrounding Terraform Labs, particularly in light of the company's involvement in the dramatic collapse of the TerraUSD stablecoin, which erased billions in investor assets. The SEC has highlighted suspicious financial activities involving Terraform Labs, including a significant $166 million transfer to Dentons. This action is part of a broader investigation into the company's financial management and legal strategies following its bankruptcy filing. Terraform Labs' decision to file for Chapter 11 bankruptcy was reportedly influenced by the looming financial penalties from federal regulators. The company's financial maneuvers, including the contested transfers, were ostensibly aimed at covering legal expenses, including those of its co-founder, Do Kwon, ...
Freepik studiogstock Magnifying Glass - Fielding high-performing innovation teams
Report | Feb 29, 2024 Sharp increase in SEC enforcement on accounting practices in FY 2023 The Securities and Exchange Commission (SEC) significantly stepped up its enforcement actions concerning accounting and auditing in the fiscal year 2023, as detailed in a recent report by Cornerstone Research as pointed out by at The D&O Dairy This marked increase, particularly pronounced in the fiscal year's final quarter, highlights the SEC's reinforced efforts to ensure financial transparency and uphold regulatory standards. With a 22% rise in accounting and auditing enforcement actions. The SEC initiated 83 accounting and auditing enforcement actions in FY 2023, a 22% increase from 68 actions in FY 2022. This represents the highest annual number of such actions since FY 2019, emphasizing a renewed regulatory emphasis on accounting standards and auditing integrity. Of the 83 actions, 71 (86%) were administrative proceedings, an increase from 75% in FY 2022. This indicates a preference for internal regulatory processes over civil court actions, with the SEC bringing 12 civil actions in FY 2023, down from 17 in the previous year. Among the individual respondents, 24% were CEOs, and 22% were CFOs. This highlights the SEC's focus on holding top corporate executives accountable for ...
Cornerstone Research SEC Accounting and Auditing Enforcement Activity - Fielding high-performing innovation teams
AI News | Feb 29, 2024 Klarna's AI-Chatbot Does the Work of 700 Humans, Eyes $20B IPO Klarna has embraced AI in a significant way, leveraging OpenAI's technologies to enhance its customer service operations. The company's AI-powered chatbot is reported to do the work of 700 human employees, handling inquiries for its 150 million customers. This adoption of AI has fundamentally altered Klarna's hiring strategy, focusing more on engineering roles while reducing the need for traditional customer service positions. The chatbot has improved efficiency, reducing repeat inquiries by 25% and shortening average conversation times from 11 minutes to just two minutes. Despite the reduction in human customer service roles, Klarna's CEO Sebastian Siemiatkowski emphasized the benefits of AI in providing superior customer experiences, more interesting challenges for employees, and better returns for investors. Klarna's workforce was reduced to 4,201 by the end of 2023, from 5,441 a year earlier, partly due to these technological advancements. See:  Klarna’s New $7.99 Monthly Subscription Plan Pre-IPO Klarna's AI initiatives have positioned the company as a leader in adopting and applying AI technologies in the fintech sector. The company's partnership with OpenAI has been particularly fruitful, making Klarna a "favorite guinea pig" for testing ...
Freepik Person using AI - Fielding high-performing innovation teams
Partnership | Feb 29, 2024 Empowering Financial Literacy and Wealth Creation Through Intraverse Technology In a press release today from BIGG Digital Assets Inc. announces a strategic partnership between its wholly-owned subsidiary TerraZero Technologies Inc. and FINLITI. This collaboration aims to revolutionize financial literacy and wealth creation opportunities through the use of TerraZero's "Intraverse" technology. The partnership focuses on building an immersive virtual experience accessible across mobile, laptop, and desktop platforms, where users can learn about their investor risk profile by building a character and navigating through the experience, akin to character creation in MMORPGs. This innovative approach is intended to engage new audiences within Finliti's network of brokerages and day-trading investor apps. TerraZero, known for its expertise in creating immersive virtual environments and web3 technology, has previously worked with notable clients such as Miller Lite, Estée Lauder, Fidelity International, and Warner Records. See:  Finliti Delivers Personalized Financial Insights Using the Power of Psychometrics The collaboration with FINLITI, a wealth management software company leveraging behavioral science for investment decision-making, aims to create gamified experiences that educate retail investors and uninitiated consumers about financial instruments and risk profiles.  Finliti, led by CEO and Founder Jennifer Schell, emphasizes the importance of bringing ...
News Release - Fielding high-performing innovation teams
Enforcement News | Feb 29, 2024 Gemini agrees to a $1.1 billion refund plan after NYDFS findings The New York State Department of Financial Services (NYDFS) has announced an agreement with Gemini Trust Company, LLC, mandating the return of at least $1.1 billion to customers of its Earn program. This decision follows the discovery of compliance failures and the mishandling of a partnership with Genesis Global Capital, LLC (GGC), which led to substantial customer losses. The settlement includes a $37 million fine and outlines Gemini's commitment to rectify the situation through the bankruptcy proceedings of GGC. Gemini's pledge to reimburse $1.1 billion to Earn customers represents a substantial effort to address the fallout from the Earn program's suspension and Genesis Global Capital's subsequent bankruptcy. See:  New York Takes Legal Action Against Major Crypto Firms This settlement highlights a shift towards stronger protections for cryptocurrency investors, particularly in response to the risks associated with lending programs and third-party partnerships.  The NYDFS has imposed a $37 million penalty on Gemini for various compliance failures, emphasizing the importance of regulatory adherence in the cryptocurrency sector. Gemini's operational practices, including insufficient due diligence and inadequate reserve maintenance, have led to significant reputational and financial ...
Image from Gemini blog - Fielding high-performing innovation teams
Policy | Feb 28, 2024 FCA Consultation on Strategic Shift in Enforcement Case Transparency The FCA plans to be more open about its enforcement investigations. This includes publishing updates on ongoing investigations and disclosing when cases are closed without enforcement action.  The decision to announce an investigation will be made on a case-by-case basis, considering factors such as the potential impact on the UK financial system's integrity, public reassurance, and the assistance in any investigations.  Previously, such announcements were made under very limited circumstances.  Read the consultation paper. Increased transparency is expected to enhance public confidence and demonstrate the FCA's proactive enforcement stance. It also aims to deter potential misconduct by making firms aware of the serious failings that could lead to an investigation, encouraging quicker behavioral adjustments.  This new approach is anticipated to drive greater accountability for the FCA as an enforcement agency and enable the use of intervention powers to prevent harm in real-time. See:  FCA Highlights Common Issues in Crypto Marketing Therese Chambers, Joint ED Enforcement at the FCA (related announcement): "By being more transparent when we open and close cases we can enhance public confidence by showing that we are on the case.  At the same ...
Freepik rawpixel.com policy - Fielding high-performing innovation teams
Philanthropy | Feb 28, 2024 Drive Change: Support Tech4SickKids Now We're helping rally innovators, influencers, and drivers of change—to join Tech4SickKids in a monumental challenge: raising $25 million to revolutionize SickKids with big-data solutions and a state-of-the-art hospital. This initiative isn't just about building walls; it's about breaking down barriers to the limitless possibilities of AI and modern medicine. See:  Bill Gates Announces $20 Billion Donation and Obligation to Return His Resources to Society By aligning with Tech4SickKids, you join a community of forward-thinking entrepreneurs who understand that true success comes from making a positive impact on the world. This is your chance to leave a philanthropic legacy that transcends your business achievements, demonstrating the powerful role that entrepreneurs can play in solving real-world problems. How You Can Join the Movement Donate: Every gift, whether one-time or monthly, fuels the fight. Your donation today is an investment in the future of pediatric care. Pledge Your Support: Through the Upside Foundation, tech founders can make a lasting impact by donating 1% of their company's equity at the time of sale or IPO. It's a simple way to give back that grows with your success. See:  Giving block reports, Crypto philanthropy jumped ...
Tech4SickKids You can change the world - Fielding high-performing innovation teams
Feb 28, 2024 Navigating International Travel Insurance: Key Considerations for Global Entrepreneurs As the world gradually recovers from the pandemic, travel insurance has evolved into a fundamental necessity for Canadians looking forward to their next trip. As a matter of fact, a recent study by Allianz Global Assistance highlights this shift in perspective, with 89% of Canadians indicating they plan to purchase travel insurance for future travels. Furthermore, 74% believe that having travel insurance is as important, if not more so, after the pandemic, with 32% considering it more vital than before. For businesses engaging in international activities, this increased attention to travel insurance is particularly relevant. As global travel picks up, ensuring the safety and security of individuals representing their organizations during travel is paramount. This is where international travel insurance comes into play, offering customized protection against the unique challenges faced by global entrepreneurs. In this beginner's guide, we aim to simplify the complexities surrounding international travel insurance for entrepreneurs so that you can confidently navigate the intricacies of international travel, knowing you have taken the necessary steps to protect your ventures abroad. Understanding Essential Coverage Options Before diving into the details, it's important to grasp the essential ...
Freepik tonodiaz Businessman walking with luggage - Fielding high-performing innovation teams
Cybersecurity | Feb 28, 2024 Comparing U.S. SEC and Canadian Cybersecurity Regulations for Businesses The introduction of new SEC cybersecurity rules in 2023 has further highlightetd the importance of board involvement in cybersecurity oversight. Skadden, Arps, Slate, Meagher & Flom LLP wrote an informative article on emerging expectations for public companies in the U.S. Below we compare at a high level the new SEC rules with the Canadian regulatory landscape including implications for startups and scaleups. United States The SEC mandates that public companies report material cybersecurity incidents within four business days of determining their materiality.  Prompt disclosure fullstop. See:  OSFI’s New Security and Integrity Guideline 2024 Companies are required to disclose their processes for identifying, assessing, and managing cybersecurity risks in their annual reports, including the board's oversight role. There's a strong emphasis on the board's active engagement in cybersecurity oversight, with specific requirements for documenting the board's oversight of cybersecurity risks. Canada The Canadian Securities Administrators (CSA) issued guidelines in December 2023 rather than strict rules for cybersecurity disclosures. These guidelines encourage companies to disclose material cybersecurity risks and incidents but do not specify a strict timeline for disclosure like the SEC's four-business-day requirement. Canadian regulations tend to ...
Freepik DC Studio Cybersecurity - Fielding high-performing innovation teams
Feb 28, 2024 Casinos have long held a mystique, conjuring images of opulence, risk, and the tantalizing possibility of outsmarting the system. This article explores the fascinating realm of casino culture to answer the question that has intrigued countless gamblers and enthusiasts alike: Can You Cheat In Casinos? Before we start, it's essential to acknowledge the allure and fascination that casinos hold for people around the world. From the iconic scenes of James Bond gracefully maneuvering through high-stakes games to the suspense-filled moments in classic heist films like Ocean's Eleven, the portrayal of casinos in popular culture has undeniably contributed to the mystique that surrounds them. These depictions often blur the lines between reality and fiction, and it's time to separate fact from fantasy. In this vein of exploration, games like the Valley Of The Gods Demo offer a glimpse into the modern casino experience, blending the thrill of gaming with the enchantment of mythology themes, demonstrating how far casino technology has come. Our mission is clear: to shed light on the myths and realities of cheating in casinos. What methods are believed to be employed by cunning gamblers to outwit the house? How do casinos safeguard their interests? What ...
Pixabay diegobarruffa Dice - Fielding high-performing innovation teams

 

Leave a Reply

Your email address will not be published. Required fields are marked *

two × 2 =