CPI Innovation Culture & Organizational Design 2 — Questions and Answers
Question 1: Which of the following is a key characteristic of a 'learning organization' as defined by Peter Senge?
- An organization that maximizes efficiency through standardized, repeatable processes
- An organization that continuously transforms itself by facilitating learning and systems thinking at all levels (Correct answer)
- An organization focused primarily on formal employee training and professional certification programs
- An organization that outsources all research and development activities to external universities
Correct answer: An organization that continuously transforms itself by facilitating learning and systems thinking at all levels
Peter Senge's 'learning organization' continuously expands its capacity to create results by facilitating individual and collective learning, systems thinking, and shared vision at all levels.
Question 2: A corporate 'innovation lab' or 'accelerator' is best described as:
- A physical laboratory for conducting controlled scientific and engineering experiments
- A dedicated organizational unit designed to rapidly develop and test new business ideas outside normal corporate processes (Correct answer)
- An annual budget line item specifically allocated for approved R&D projects
- A training program for teaching all employees fundamental design thinking principles
Correct answer: A dedicated organizational unit designed to rapidly develop and test new business ideas outside normal corporate processes
Innovation labs and corporate accelerators create a protected space with dedicated resources and reduced bureaucracy to rapidly develop and validate new ideas that might struggle within normal corporate structures.
Question 3: What does the '70-20-10' innovation investment model prescribe?
- Allocating 70% of budget to marketing, 20% to R&D, and 10% to operational improvements
- Dedicating 70% of innovation resources to core business, 20% to adjacent opportunities, and 10% to transformational innovation (Correct answer)
- Spending 70% on product development, 20% on customer research, and 10% on competitive intelligence
- Assigning 70% of employees to execution roles, 20% to planning roles, and 10% exclusively to innovation projects
Correct answer: Dedicating 70% of innovation resources to core business, 20% to adjacent opportunities, and 10% to transformational innovation
The 70-20-10 model, popularized by Google, allocates innovation resources across core (70%), adjacent (20%), and transformational (10%) initiatives, balancing risk while ensuring exploration of breakthrough opportunities.
Question 4: What is the primary function of a 'Chief Innovation Officer' (CINO) role in an organization?
- To manage the company's patent portfolio and intellectual property licensing agreements
- To oversee product development timelines and ensure projects are delivered on schedule
- To champion innovation strategy, culture, and processes across the entire organization (Correct answer)
- To lead the implementation of enterprise technology platforms and digital infrastructure
Correct answer: To champion innovation strategy, culture, and processes across the entire organization
A Chief Innovation Officer champions building innovation capabilities, aligning innovation strategy with business goals, breaking down cultural barriers, and ensuring innovation processes and resources are effective organization-wide.
Question 5: Which of the following best describes 'reverse innovation' as defined by Vijay Govindarajan?
- Returning to traditional production methods after failing with new technologies
- Developing low-cost innovations in emerging markets first, then adapting them for developed markets (Correct answer)
- Reversing the product development process to begin with manufacturing constraints rather than design
- Copying competitor innovations and then improving upon them for a different market segment
Correct answer: Developing low-cost innovations in emerging markets first, then adapting them for developed markets
Reverse innovation, coined by Vijay Govindarajan, describes innovations first developed for and in emerging markets that are subsequently sold in or adapted for developed markets at competitive price points.
Question 6: How does organizational culture most directly inhibit innovation?
- By setting specific innovation KPIs and holding teams accountable for measurable outcomes
- Through entrenched norms, risk aversion, and 'not invented here' syndrome that resist new ideas and external inputs (Correct answer)
- By investing heavily in operational efficiency and Lean process improvement methodologies
- Through excessive focus on Net Promoter Score and customer satisfaction metrics
Correct answer: Through entrenched norms, risk aversion, and 'not invented here' syndrome that resist new ideas and external inputs
Cultural barriers like 'not invented here' syndrome, fear of failure, excessive risk aversion, and entrenched hierarchical norms are the most common and powerful inhibitors of innovation in established organizations.
Question 7: What is a 'community of practice' (CoP) and how does it support innovation culture?
- A formal executive committee that reviews and approves new product development proposals
- A voluntary group of people sharing a concern or passion who improve their practice through ongoing peer interaction (Correct answer)
- A customer advisory panel used to validate and refine new product concepts before launch
- A cross-departmental project team assembled for a specific initiative with a defined end date
Correct answer: A voluntary group of people sharing a concern or passion who improve their practice through ongoing peer interaction
Communities of practice, defined by Etienne Wenger, are voluntary groups that share knowledge and learn from each other through ongoing informal interaction, accelerating innovation knowledge diffusion across organizations.
CPI Innovation Culture & Organizational Design 2
Which of the following is a key characteristic of a 'learning organization' as defined by Peter Senge?