Professional Documents
Culture Documents
by
Alexander Beil
Christoph Hillgärtner
Florian Schlegelmilch
List of Contents
1. Introduction / Definitions
6. Conclusion / Learnings
7. Summary
9. References
1
Harvard Case Study: Bank of America
1. Introduction / Definitions
*Reference: http://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=603022
1. Introduction / Definitions
Management: how to get things done (how to keep the process running
effectively)?*
Culture: which habits and traits support the process and the people involved
(which values are necessary to be successful)?*
2
Harvard Case Study: Bank of America
1. Introduction / Definitions
Test: A session in which a product or piece of equipment is placed under everyday and/or
extreme conditions and is examined for its durability, etc.2
Learning: Learning is the process of acquiring knowledge, skills, attitudes, or values, through
study, experience, or teaching, that causes a change of behavior that is persistent,
measurable, and specified or allows an individual to formulate a new mental construct or revise
a prior mental construct (conceptual knowledge such as attitudes or values).1
1 Reference: www.en.wikipedia.org
2 Reference: www.en.wiktionary.org
Organization
Until relatively recently, Bank of America had never made innovation a priority. It lacked
any formal infrastructure for developing new ideas. However, recognizing several years
ago that it needed to improve its innovation performance, the bank decided to create a
new corporate unit called the innovation and development (I&D) team.1
Exhibit 4: Section of Bank of America´s
Organizational Chart2 Ken Lewis CEO
Consumer/Commercial Bank
1Reference: www.bcg.com/publications/files/Profitable_Innovation_in_Financial_Services_Apr04_FS_OfA.pdf
2Reference: Stefan Thomke, Case study Bank of America (A), p. 17
3
Harvard Case Study: Bank of America
Culture
Core values of Bank of America:1
• Doing the right thing. Each of us has the freedom, authority, and responsibility to do the
right thing for our clients, customers, communities — and each other.
• Trusting and teamwork. We rely on each other and succeed together. We take collective
responsibility for the quality of client and customer experiences.
• Inclusive meritocracy. We care about each other, focus on results and strive to help all
associates develop their full potential. We respect and value each other's differences.
• Winning. We have a passion for achieving results and winning — for our clients and
customers, for our teammates and communities and for our shareholders.
• Leadership. We're decisive leaders at every level, communicating our vision and taking
action to help build a better future.
Management
To run the processes effectively Lewis (CEO )was to consult several outside executives what they
considered to be “best management practice”.2
1Reference: http://www.bankofamerica.com/careers/index.cfm?template=o_values
2Reference: Stefan Thomke, Case study Bank of America (A)
Reference: http://www.sdk.co.jp/contents_e/rd/index.htm
4
Harvard Case Study: Bank of America
Exhibit 5
The I&D Market´s Product and Service Innovation Process and Activities *
1. 2. 3.
Idea Conception Planning & Design Implementation
5. 4.
Recommendation Test
Market = Go / No Go
Rollout
Determine
Lay the Foundation Identify Lead Users
the Trends
Develop the
Change Strategy
Breakthroughs
* Reference: Eric von Hippel, Stefan Thomke, Mary Sonnak, article „Creating Breakthroughts at 3M“, p.2
5
Harvard Case Study: Bank of America
* Reference: Eric von Hippel, Stefan Thomke, Mary Sonnak, article „Creating Breakthroughts at 3M“, p.6
Failure susceptibility
Cost
Quota of success
6
Harvard Case Study: Bank of America
Within all I&D branches the customers were monitored closely to see their
reactions to the innovations by a variety of means like surveys or
statistics on such factors as revenue growth or number of services used
by each customer. 1
Shorter turnaround time for feedback would held experimenters learn and
prepare modified experiments more rapidly. 2
Despite the great success of the I&D Team, Amy Brady and Warren Butler
want to enlarge the learning through experimentation. So in particular,
the need for failure so as to generate more learning. 3
But: Butler commented, “(…). If we have too many failures, we just won´t be
accepted. Currently, we may have failure within concepts, but not failure
in concepts.” 4
1- 4 Reference: Stefan Thomke, case study Bank of America (A),