508: The practices of the most innovative companies – with 2024 Outstanding Corporate Innovator winner

DFW Airport’s journey to winning PDMA’s 2024 Outstanding Corporate Innovator Award Watch on YouTube

TLDR

In this episode of Product Mastery Now, I’m interviewing Jodie Brinkerhoff, VP of Innovation at DFW Airport, about DFW’s journey to winning PDMA’s Outstanding Corporate Innovator (OCI) Award. The discussion covers DFW’s approach to airport innovation, including their dedicated innovation team, strategic focus areas, and unique challenges as a government organization. Brinkerhoff shares insights on fostering an innovation culture, collaborating across departments, and balancing innovation with operational demands in a complex airport environment. The episode provides valuable lessons for product managers and innovators in various industries, highlighting the importance of executive sponsorship, employee engagement, and a structured innovation process.

The Outstanding Corporate Innovator (OCI) Award

For 37 years, companies have competed each year to be recognized as the Outstanding Corporate Innovator, awarded by the Product Development and Management Association (PDMA). The selection process seeks companies that consistently generate and harness long-term value through exceptional product and service innovation. Winning companies demonstrate well-defined new product development practices and processes which have contributed to their innovation success. Open to companies worldwide, the award epitomizes innovation excellence.

One of the 2024 winners is the DFW Airport. Let’s find out what makes this airport an exceptional innovator. I’m with Jodie Brinkerhoff, the VP of Innovation at DFW Airport.

PDMA and the Inspire Innovation Conference

The PDMA, founded in 1976, is the longest-running professional association for product managers, leaders, and innovators worldwide. PDMA contributes significantly to research and knowledge in the field of product innovation. I recorded this interview at the 2024 Inspire Innovation Conference, which serves as a platform for sharing insights and best practices in product development and innovation management.

Innovation at DFW Airport

DFW Airport’s commitment to innovation dates back to its inception 50 years ago. However, recognizing the need for a more structured approach to innovation, the airport established a dedicated innovation team in 2018. This decision was driven by several factors:

• The lack of a shared process and language for innovation across the organization
• Operational demands limiting the focus on innovation
• The need to de-risk the future of airport operations

Brinkerhoff explains that innovation has always been part of DFW’s DNA, baked into the mission, vision, and values of the organization. However, as technology continued to change and the pace of change grew, there was a recognition that a more formalized approach was needed.

DFW Airport Operations and Innovation Challenges

As one of the world’s busiest airports, DFW faces unique challenges in implementing innovation:

Challenge Description Scale of Operations Up to 300,000 people daily; 2,000 DFW employees and 65,000 total workers on-site Operational Demands Balancing day-to-day operations with long-term innovation initiatives Government Organization Status Navigating regulatory constraints and procurement processes

Managing an airport operation is complex. This operational focus can often draw attention away from innovation efforts, especially during busy periods or when issues arise.

DFW’s Innovation Approach

The airport’s innovation strategy aligns closely with its overall strategic planning, focusing on four key areas:

1. Operational excellence
2. Customer experience
3. Sustainability
4. Building the airport of the future

The innovation team at DFW plays a crucial role in advancing these strategic objectives by:

• Collaborating with business executives and front-line staff
• Actively listening for improvement opportunities
• Developing solutions to address identified challenges and de-risk future operations

The innovation team’s approach involves working closely with business executives and people on the front line to ensure they’re listening to instances where things could have been done better or where issues arose due to unforeseen circumstances, such as severe weather.

Innovation Culture at DFW

Fostering an innovation culture is a key priority for DFW Airport. The organization has implemented several initiatives to promote innovative thinking:

• Innovation training for all new hires within their first six months
• Promoting an innovation mindset centered on asking questions, exploring options, and controlled experimentation
• Building a network of innovation ambassadors across various departments

The innovation mindset training focuses on three main principles:

1. Asking questions: Encouraging employees to be curious and challenge the status quo
2. Exploring options: Looking beyond the first solution that comes to mind
3. Experimenting in controlled ways: Testing ideas in safe environments before full implementation

The OCI Award Application Process

DFW Airport’s journey to winning the OCI Award spanned two years. Their first application in 2023 provided valuable feedback, particularly regarding the need to improve their innovation metrics. The second application in 2024 included an on-site review process, allowing the PDMA team to experience DFW’s innovation initiatives firsthand through presentations and an airport tour.

The on-site review was an intensive 10-hour day, which included:

• Presentations from the innovation team and other departments
• Executive sessions to discuss metrics and measurement approaches
• A four-and-a-half-hour tour of the airport, showcasing various innovation projects
• Interactions with 34 people from across the organization, representing different divisions and initiatives

This comprehensive review process allowed DFW to demonstrate the depth and breadth of their innovation efforts, ultimately leading to their OCI Award win.

Resourcing Innovation at DFW

Effective innovation at DFW Airport relies on several key elements:

• Strong executive sponsorship and support
• A dedicated innovation team structure
• Close collaboration with other departments
• A synergistic relationship with the IT department

Brinkerhoff emphasizes the importance of having executive buy-in and a dedicated budget for innovation activities. When she joined DFW, she asked three crucial questions:

1. Who is our sponsor?
2. Do I have my own budget?
3. Can I build a team the way I want to build it?

These questions ensured that the innovation team had the necessary resources and support to drive meaningful change within the organization.

Innovation Process at DFW

DFW Airport has developed a structured innovation process that includes:

• Regular idea generation and evaluation sessions
• A well-managed project pipeline
• Executive sponsorship for selected projects
• Established checkpoints for business decisions throughout the innovation lifecycle

The front-end innovation team is responsible for being out in the operation on a monthly basis, listening for problems, and seeking out opportunities. The team meets every other month to discuss new ideas based on trends, marketplace observations, or feedback from operational staff.

The process also includes multiple checkpoints with executive sponsors to ensure projects remain aligned with strategic goals and receive necessary resources.

Unique Challenges of Innovation in an Airport Setting

Innovating in an airport environment presents distinct challenges:

• Balancing customer experience improvements with community stewardship
• Maintaining stringent safety and security standards
• Navigating government organization constraints, particularly in procurement processes

As a government organization, DFW Airport has different priorities compared with private companies. Their focus is on delivering a great customer experience and being good stewards of the community, rather than solely on revenue and shareholder value.

She also noted the additional complexities of procurement and compliance in a government setting, which can make implementing new technologies and processes more challenging.

DFW’s Innovation Philosophy

At the core of DFW’s innovation efforts is the slogan “DFW Innovates.” This philosophy is built on the belief that everyone within the organization can contribute to innovation. Brinkerhoff noted that this approach has had a significant impact on the airport’s organizational culture, fostering a more engaged and forward-thinking workforce.

The innovation team at DFW has successfully integrated this philosophy into their daily operations, creating opportunities for employees at all levels to participate in the innovation process. This inclusive approach has led to a more dynamic and responsive organization, better equipped to address the complex challenges of modern airport management.

DFW has created a network of innovation ambassadors across various departments, helping to spread the innovation mindset throughout the organization. This network has been crucial in building support for innovation initiatives and encouraging participation from employees at all levels.

Conclusion

As the third busiest airport in the world, DFW faces unique challenges in maintaining operational excellence while driving innovation. The complexity and diversity of airport operations require a multifaceted approach to innovation, involving stakeholders from various departments and considering a wide range of factors, from customer experience to safety and security.

DFW’s commitment to innovation, as exemplified by their “Future of Travel Transformed” motto, positions them at the forefront of airport innovation. Their success in winning the OCI Award demonstrates the effectiveness of their structured approach to innovation management and their ability to balance short-term operational demands with long-term strategic goals.

The lessons learned from DFW Airport’s innovation journey offer valuable insights for product managers and innovators across industries. By fostering a culture of innovation, securing executive support, and implementing a structured innovation process, organizations can drive meaningful change and create lasting value for their customers and stakeholders.

Useful link:

• Learn more about PDMA and the Outstanding Corporate Innovator Award

Innovation Quote

“We believe that everyone can innovate.” – Jodie Brinkerhoff, describing the culture of innovation at DFW

Application Questions

1. How could you apply DFW Airport’s approach to balancing day-to-day operations with long-term innovation initiatives?
2. What strategies can you employ to foster an innovation culture similar to DFW’s “everyone can innovate” philosophy in your organization?
3. How might the concept of innovation ambassadors be adapted and implemented in your company to promote widespread engagement in innovation efforts?
4. In what ways can you improve collaboration between innovation teams and other parts of your organization, similar to the synergy described at DFW Airport
5. How can the structured innovation process used by DFW, including idea generation, evaluation, and executive sponsorship, be tailored to fit your organization’s needs and constraints?

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