Monthly Archives: November 2022

Corporate Venturing as a Catalyst for Innovation

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Venture Beyond

Corporate Venturing as a Catalyst for Innovation

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the pursuit of innovation is no longer optional; it’s existential. Yet, many large, established corporations struggle to innovate at the pace of the market. Internal bureaucracy, risk aversion, and a focus on incremental improvements can stifle the disruptive thinking required for true transformation. As a human-centered change and innovation thought leader, I am here to argue that one of the most powerful and underutilized strategies for overcoming this inertia is corporate venturing. This isn’t just about investing money; it’s about strategically engaging with the startup ecosystem to ignite new growth, access frontier technologies, and inject a vital dose of entrepreneurial DNA into the heart of your organization. Corporate venturing is a deliberate act of looking beyond your walls to find the future.

Corporate venturing encompasses a range of activities, from direct venture capital investments (Corporate Venture Capital or CVC) to incubation programs, accelerators, and strategic partnerships with startups. Its core purpose is to bridge the innovation gap between the agile, disruptive startup world and the established, resource-rich corporate entity. This symbiotic relationship offers startups access to capital, market reach, and mentorship, while providing corporations with a window into emerging technologies, new business models, and fresh talent. More importantly, it acts as an external nervous system for innovation, allowing the corporation to sense, adapt, and respond to market shifts with a speed that internal R&D often cannot match. It’s a human-centered approach to expanding your innovation capacity, leveraging the entrepreneurial spirit that often flourishes outside traditional corporate structures.

The Strategic Imperatives of Corporate Venturing

To truly leverage corporate venturing as a catalyst for innovation, it must be approached with strategic intent, not just as a financial play. Here are four key imperatives:

  • 1. Strategic Alignment, Not Just Financial Return: While financial returns are welcome, the primary driver for corporate venturing should be strategic. How does this investment or partnership align with your long-term vision? Does it open up new markets, provide access to critical technologies, or deepen your understanding of future customer needs?
  • 2. Active Engagement, Beyond Capital: Successful corporate venturing is not passive. It requires active mentorship, resource sharing, and a genuine effort to integrate lessons learned from startups back into the core business. It’s a two-way street of learning and collaboration.
  • 3. Build Bridges, Not Walls: The biggest challenge is often integrating the fast-paced startup mentality with the established corporate culture. Dedicated venturing units should act as translators, bridging the gap between the two worlds and fostering mutual understanding and respect.
  • 4. Portfolio Thinking and Experimentation: Treat your venture portfolio like an experimental lab. Not every investment will succeed, but each provides valuable learning. Diversify your bets across different technologies, markets, and business models to hedge against uncertainty and maximize discovery.

“Don’t just acquire the future; invest in building it. Corporate venturing is your strategic lens into tomorrow’s disruption and market expansion.” — Braden Kelley

Case Study 1: Google Ventures (GV) – Investing in the Adjacent Future

The Challenge:

Google, despite its massive internal R&D capabilities, recognized that innovation often happens at the edges of an industry, driven by small, agile teams. The challenge was to systematically identify and invest in groundbreaking startups that could either complement Google’s core business or open up entirely new growth areas, without stifling their entrepreneurial spirit with corporate bureaucracy.

The Corporate Venturing Solution:

Google established Google Ventures (GV) as its venture capital arm. Unlike traditional corporate VCs, GV operates with a high degree of autonomy, investing in a broad range of technology companies, many of which are not directly related to Google’s immediate product lines. However, the strategic alignment is clear: GV invests in areas that represent the adjacent future of technology—AI, life sciences, consumer tech, enterprise software—giving Google an early window into the next wave of disruption. GV provides more than just capital; it offers startups access to Google’s unparalleled expertise in engineering, design, and marketing through its “GV Experts” program.

  • Strategic Alignment: GV’s investments provide Google with intelligence on emerging technologies and market shifts that could impact its long-term strategy.
  • Active Engagement: The “GV Experts” program offers invaluable operational support, helping startups scale and overcome technical challenges.
  • Autonomy and Agility: By operating somewhat independently, GV avoids many of the bureaucratic pitfalls that can slow down corporate innovation efforts.

The Result:

GV has been incredibly successful, with a portfolio that includes major companies like Uber, Slack, and Nest (which Google later acquired). These investments provide significant financial returns, but more importantly, they offer Google a strategic vantage point. It allows them to understand and even influence future technological trajectories, keeping the parent company at the forefront of innovation. GV demonstrates how a well-structured CVC can act as a crucial early warning system and growth engine for a tech giant.

Case Study 2: BMW i Ventures – Driving Future Mobility

The Challenge:

The automotive industry is facing unprecedented disruption, driven by trends like electrification, autonomous driving, shared mobility, and connected vehicles. BMW, a legacy automaker, needed to rapidly adapt and innovate beyond its traditional car manufacturing core to secure its position in the future of mobility. Relying solely on internal R&D would be too slow and limited in scope.

The Corporate Venturing Solution:

BMW established BMW i Ventures, a corporate venture capital fund dedicated to investing in early- to mid-stage startups in the mobility, digital, and sustainability sectors. The fund strategically targets companies developing cutting-edge technologies and services that could shape the future of transportation and enhance the overall customer experience. This includes areas like advanced materials, AI for autonomous systems, smart charging solutions, and innovative digital services for car ownership or sharing. BMW i Ventures provides capital, but also offers strategic partnerships, pilot opportunities within BMW’s ecosystem, and valuable market insights.

  • Strategic Alignment: Every investment is directly tied to BMW’s long-term vision for sustainable, intelligent, and human-centered mobility.
  • Access to Frontier Tech: The fund provides early access to technologies that might take years or decades to develop internally, accelerating BMW’s innovation timeline.
  • New Business Models: Investments in areas like shared mobility or digital services help BMW explore and validate entirely new revenue streams beyond traditional car sales.

The Result:

BMW i Ventures has allowed the company to stay ahead of the curve in a rapidly changing industry. It has fostered collaborations with innovative startups, informed BMW’s internal product roadmaps, and positioned the brand as a leader in future mobility solutions. By strategically venturing beyond its core business, BMW has gained agility, expanded its innovation ecosystem, and proactively secured its relevance in the coming decades.

Conclusion: The Future of Innovation is Open

Corporate venturing is more than just a financial vehicle; it is a mindset—an acknowledgment that the most profound innovations often emerge from outside your established walls. It’s a strategic embrace of openness, agility, and the entrepreneurial spirit. For large corporations, it represents a vital pathway to overcome internal inertia, access game-changing technologies, and build a more resilient and future-ready organization.

As leaders, our challenge is to move beyond short-term thinking and embrace a portfolio approach to innovation. By strategically venturing into the unknown, by actively engaging with the disruptors, and by fostering a culture that learns from both successes and failures, we can unlock unprecedented growth and ensure our organizations are not just prepared for the future, but actively shaping it.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Emotional Connections Drive Customer Loyalty

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Emotional Connections Drive Customer Loyalty

GUEST POST from Shep Hyken

There are many reasons a customer might come back to a business again and again that have nothing to do with loyalty. A repeat customer can come about because of a convenient location, a lower price, a bigger selection and more. But those don’t create loyalty. It just looks as if the customer is loyal.

Actually, you could say that they are loyal—but not to the company. They are loyal to the price, convenient location, etc. The customer who comes back again and again for those types of reasons can deceive you. Not on purpose. It’s their behavior that imitates loyalty. Consider a retail store with repeat customers (not loyal customers), and ask this: If a competitor moves into the neighborhood, has a more convenient location and advertises lower prices, would the customer switch?

If you want your customers to be loyal, you must find a way to create an emotional connection.

Meet Zhecho Dobrev, a principal consultant at Beyond Philosophy and the author of the newly published book, The Big Miss: How Organizations Overlook the Value of Emotions. I interviewed Dobrev for an episode of Amazing Business Radio, and he shared his insights on what drives loyalty.

According to Dobrev, “Emotional connection creates preference over the competition. Customers don’t just come back out of convenience. They see a difference between doing business with your company and other companies.” His research has found that the amount of business a company gets is dependent on its relationships with customers.

The relationship you want with customers is rooted in emotion. A good experience creates a positive memory. Dobrev is a fan of Professor Daniel Kahneman, who says that people don’t choose between experiences. They choose between the memories of their experiences.

Often, memory is based on interactions customers have had with a salesperson, customer support or a process that a company has. Ideally, it’s a good memory. And when the customer comes back a second time and third time and has similar experiences, the memories of those interactions become an owned experience. The customer expects it. They know it’s going to happen, just like last time. That’s where the relationship starts to solidify, with a consistent and predictable experience. It goes to an even higher level when the customer feels valued and appreciated. Ultimately, the brand becomes more important than just a place to stop and do business.

Dobrev surveyed more than 19,000 customers in the U.S. and UK and determined that emotional attachment was the biggest driver of value, being responsible for about 43% of business value. Compare that to a company that promotes product features, which came in second at 20%. “Customers don’t know what they really want,” says Dobrev. “They say they want a product, but what really drives business value is emotional attachment.”

Emotions can start to develop even before the customer chooses to do business with a company or brand. Emotions can be found in a marketing strategy. Consider the automobile manufacturer BMW, which in the 1970s used the slogan The Ultimate Driving Machine — a description of the car — until it switched its focus to the emotion of owning and experiencing the car with the slogan BMW is Joy. While BMW still includes The Ultimate Driving Machine in its descriptors, today’s slogan is Sheer Driving Pleasure. Joachim Blickhäuser, head of corporate and brand identity at the BMW Group, says, “The ‘Sheer Driving Pleasure’ slogan delivers positive emotions and does exactly what a claim should.”

While an emotional connection may help create customer loyalty, you can’t ignore other competitive features. While loyalty makes price less relevant, there is a breaking point. Being easy to do business is also a big factor, so eliminate the friction that will potentially cause customers to run to your competition.

So, here is your assignment. Ask your customers, “Why do you do business with us?” Their reasons will help you define the differences between features and benefits compared to feelings and emotions. Once you have your features and benefits in place, work on creating emotional connections, and your customers will come back for the right reasons—because they love doing business with you.

This article originally appeared on Forbes

Image Credit: Pixabay

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Engaging Users in the Design Process

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Co-Creation for Experience

Engaging Users in the Design Process - Co-Creation for Experience

GUEST POST from Chateau G Pato

In the world of design and innovation, we have long operated under a traditional model. We observe users from a distance, conduct market research, and then retreat to our labs and conference rooms to design a solution that we believe they will love. We call this “customer-centric” design, but it’s a one-way street. As a human-centered change and innovation thought leader, I am here to argue that this model is no longer enough. The future of innovation belongs to those who move beyond designing **for** their users to designing **with** them. This is the power of **co-creation**, a strategic shift that transforms customers from passive recipients of a product into active, invaluable partners in its creation.

Co-creation is the ultimate form of empathy. It’s an open invitation for your most passionate users to contribute their insights, skills, and creativity directly to the design process. This isn’t just about collecting feedback; it’s about treating your customers as equal partners in the journey of innovation. The benefits are profound. By involving the people you serve, you bypass the risk of building something they don’t genuinely need. You uncover unarticulated pain points and desires that a traditional survey could never reveal. And perhaps most importantly, you build a powerful sense of ownership and community. When customers have a hand in creating a product, they don’t just use it; they become an army of loyal advocates, invested in its success and eager to spread the word.

The Co-Creation Framework: A Human-Centered Approach

Successful co-creation is not a random act of crowdsourcing; it is a structured, human-centered process. It requires a clear framework to ensure that the collaboration is meaningful, productive, and respectful. Here are four essential steps:

  • 1. Define the Challenge, Not the Solution: The starting point is crucial. Don’t ask users to validate a product you’ve already built. Instead, present them with a clear, compelling problem to solve. For example, instead of “How do you like our new app?”, ask, “How might we make your daily commute more enjoyable?” This opens the door to a wider range of creative solutions.
  • 2. Build the Right Platform: Co-creation can happen in many forms. It could be a series of in-person workshops, a dedicated online community, a digital platform for ideation and voting, or a private beta program. Choose a platform that is accessible, easy to use, and facilitates collaboration among all participants.
  • 3. Empower the Co-Creator: Treat your users as equal partners. Give them the information they need, and make their role in the process explicit. Whether they are ideating, prototyping, or providing feedback, ensure they understand how their contributions will be used and how they fit into the bigger picture.
  • 4. Close the Loop: This is arguably the most important step. A co-creation initiative is not a one-off event. It requires transparency and a continuous feedback loop. Be sure to show participants what happened to their ideas. Even if an idea wasn’t chosen, explain why and thank them for their contribution. This builds trust and encourages continued participation, turning a single project into a long-term community.

“The best innovations are not born in a lab; they are born in the conversations between creators and the people they are creating for.” — Braden Kelley

Case Study 1: Threadless – Building a Business on Collective Creativity

The Challenge:

In the highly competitive world of apparel, fashion trends are traditionally dictated from the top-down by designers and major retailers. This process is inherently risky and often disconnected from what consumers actually want to wear. A small t-shirt company needed a new model that could consistently produce fresh, relevant designs with minimal risk while building an authentic brand.

The Co-Creation Solution:

Threadless launched a revolutionary business model based entirely on co-creation. The company’s platform is a digital community where artists from around the world submit t-shirt designs. The community then votes on their favorite submissions. Each week, the designs with the highest votes are put into production. The winning artists receive prize money and royalties on their designs. This model is a masterclass in crowdsourced innovation.

  • Empowered Co-Creators: Threadless gives artists a clear incentive and platform to contribute their creativity. They are not just submitting work; they are participating in a creative community.
  • Reduced Risk: The voting process acts as powerful market validation. Threadless knows a design is likely to be a commercial success before it ever spends a dollar on production, significantly reducing inventory and design risk.
  • Built-in Community: The platform fostered a vibrant, global community of artists and fans who felt a deep sense of ownership. This turned a transactional relationship into a collaborative partnership, leading to immense brand loyalty.

The Result:

Threadless became a major success story, proving that a company’s most valuable design team might be its own customers. By co-creating with its community, Threadless not only built a profitable business but also created an authentic, beloved brand known for its originality and its dedication to the collective voice of its creators. The company’s model demonstrates that the best way to predict what consumers want is to simply ask them to create it.

Case Study 2: L’Oréal’s Open Innovation Platform – Co-Creating Science and Beauty

The Challenge:

As a global beauty giant, L’Oréal’s R&D model was powerful but also traditional and at times, slow. The company needed to accelerate its innovation pipeline, especially in cutting-edge fields like green chemistry, artificial intelligence, and new biotech ingredients. The challenge was how to access and integrate external expertise from the world’s most brilliant scientists, researchers, and startups in a way that was agile and efficient.

The Co-Creation Solution:

L’Oréal adopted a strategic open innovation approach, which is a sophisticated form of co-creation. Instead of relying solely on internal labs, the company actively seeks partnerships with independent scientists, researchers, and startups through dedicated platforms and venture capital initiatives. L’Oréal presents specific scientific or technological challenges and invites external experts to co-develop solutions. For example, they might partner with a startup to develop a new sustainable ingredient or collaborate with a university lab to create a new method for personalized skincare.

  • Defined Challenges: L’Oréal clearly articulates its technological and scientific needs, empowering a global network of experts to contribute.
  • Empowered Partners: The company treats these external collaborators as true partners, not just vendors. This approach fosters a culture of shared purpose and mutual trust.
  • Continuous Innovation: This model is not a one-time project; it is a permanent innovation channel that allows the company to continuously learn from and adapt to the rapid advancements in science and technology.

The Result:

By implementing a co-creation strategy on a massive scale, L’Oréal has been able to significantly accelerate its innovation cycle and develop groundbreaking products that would have been impossible to create internally alone. The approach has led to new patents, new product categories, and a more agile business model. This case study demonstrates that co-creation is not limited to consumer-facing products; it is a powerful strategic tool for even the largest and most complex organizations to stay at the forefront of their industries.

Conclusion: The Future of Innovation is Collaborative

The era of closed-door design is over. In a world where customer expectations are higher than ever, the most successful organizations will be those that open their doors and invite their users to the innovation table. Co-creation is not a marketing gimmick; it is a fundamental strategic shift from “customer-centric” to “customer-led.” It is an acknowledgment that your users are not just consumers; they are a wellspring of insight, creativity, and passion.

As leaders, our role is to create the platforms and the culture that enable this collaboration. By treating your users as partners, you will not only build better products and services but also forge a deeper, more resilient connection to the people you serve. The future of innovation is not solitary; it is collaborative, and it is waiting for you to invite the first person in.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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5 Simple Steps for Launching Game-Changing New Products

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5 Simple Steps for Launching Game-Changing New Products

GUEST POST from Teresa Spangler

There has never been a better time to invent, create, and innovate game-changing products, new business models, and services. In fact, I will be so bold as to say, we must change it dramatically to succeed in the future. You know your team needs to be more creative, they need to collaborate, or many seek more outside influence, but this is counter to your current culture. For years, your company has spent much of its efforts and resources on becoming a lean, mean growth machine.

A few questions you might consider:

  • Are you creating for the future? How do you know?
  • Will what you sell today to be relevant tomorrow? Do you know where your customers are headed? How are your customers changing?
  • Are you paying close attention to the growth trends in your market space? Are there competitors you cannot see lurching behind someone else’s geographic lines?

The start-up world of entrepreneurship is escalating. New things are being developed all over the world. This is good news for our needy economy, but these are the very companies that could come up and bite you where it hurts…right in your future’s revenue pocket.

Inspiring our work teams (and leadership) toward a culture of creativity and idea generation is key to just keeping pace and preparing for the future. But that may not be so easy. I have surveyed and had many conversations and meetings recently with leaders of growth companies.  How proud we are of strong EBIDTA (earnings before interest, taxes, depreciation, and amortization). The bottom line is… this is their bottom line… very good profitability. It appears we will all earn our bonuses for managing expenses tightly.

If incentives are based on cost-cutting and expense tightening, there will be very little investment in the future. The addictive need for immediate return is paralyzing these leaders. I am all for fiscal responsibility! But, we need more balance in our plans between cost-saving efficiencies and game-changing strategies to fuel future growth.

“Ideas are great, our company has a lot of them, and we have a full innovation pipeline but there’s not been a lot of success getting these out the door to return on our investments.” One CEO shared with me. “We are not making money, so we’ve limited investments here!” First, let me say as you may already be aware, the world has some very big needs/challenges that need all hands on deck. Savvy entrepreneurs & companies that invest in the future are going to win in solving these problems and most likely to the disruption of latent business models & possibly your business.

First, let’s identify a few of the dramatic trends that may beg for new ways to serve up new ideas:

  • Boomer Segment and Aging: There is a desperate need for new ways to serve this market! Example: an elderly couple cares for each other in their home for many years but neither is very strong, and both have trouble walking much less driving, and getting around is challenging. They do not have the funds for assisted living facilities. They are, however, a lively couple wanting to do things together. What can home designers, product designers, emergency care facilities, security companies do to support these seniors?

  •  The World Is Getting Older (on average) -Shifts in demographics- this is a big change we will start to feel even more in the coming years. Where will the workforce of the future come from? Training older adults to take on new roles, providing new ways to employee talent, leveraging knowledgeable and experienced talent at any age will take shape. What are you doing today to prepare for this shift? Where can you innovate new services, products, solutions to help companies drive a successful shift.

  • The need for new ways to grow food, provide clean water, and ensure the safety of these precious resources, is a growing concern. Example: Some regions in the world still have little infrastructure to support their enormous population. The majority of the rural areas have not toilets, little running water, their streams are used for bathing and cleaning laundry and drinking… what can be created to help these rural regions around the world that have these needs. The U.S. in rural regions has similar needs. How can your company innovate to solve problems like these?

  • Consumer behavior is continuing to shift rapidly: Consider how we buy today which changed dramatically in 2020, what we buy has also changed, and so has what influences us to make a decision. And what about places where consumerism has declined for some regions, yet the birth of consumption is occurring in other regions? Example: Sensors that track us and our health (IoT), Tablets, ipads, iphones, and smart devices have changed our behavior as consumers. When you are in the car waiting for your child to come out of school … are you searching on your phone for new doctor, a home designer, a new car? Think NOT about how you are using these tools today but how these tools will progress and continue changing how we do everything. Another example: shopping for that perfect dress or suit. Take your ideas, drawings, colors, and any thoughts you have on the designs…go shopping and have your perfect outfit designed for you. Hyper customization will continue.

  • The need for alternative energy sources will only be exasperated by the explosive population growth in regions like Shanghai, Mumbai, Hong Kong, Sao Paulo, and NYC.

  • Cybersecurity: The challenges are beyond comprehension and the solutions are not enough. With all the brilliant technology and creative talent in your community and network, how could you generate breakout ideas to solve some of our most challenging issues in the world today with cyber threats?’

Push the human race forward… and while some see them as the crazy ones, we see them as genius! — Steve Jobs, Think Different

  • Global Health Care:  we’ve watched the best and the worst first-hand over the last year. There is room for improving how healthcare is delivered, prepping for future pandemic-like events, and innovating new methods of caring for people in rural areas. There are so many challenges which is to say, there are so many opportunities.

  • Mental Health Supports- THIS IS A STAGGERING Statistic reported by TheHartford: New research finds 70% of employers report mental health challenges among their employees, 52% also report substance misuse or addiction, while 72% say mental health stigma blocks care.

These are big problems, big changes, and even bigger opportunities for entrepreneurs and brands alike to innovate. How might these trends be affecting you? Your customer? Your market?

I agree priorities should be on revenue coming in the door. It is a difficult balancing act with such tightly managed resources and focuses on the bottom line and profitability to add any new initiatives that may be futuristic and top-line focused. Much of our client work is about creating the balance for top-line growth initiatives while also managing bottom-line responsibilities.

How do you set aside resources and break down the barriers to game-changing ideas? And then how do you deal with the litany of barriers that will crop up on the path to any new inventive thing?

Let’s dissect a few of the challenges that keep us from continuous innovation on your way to market leadership. Here are 4 examples of barriers you may face along your inventive future:

  • Companies are fixated on quick returns… there is this addiction like quality to seeing our investments instantly returning benefit to us. But if we do not invest in the future to grow top line revenues and invest in new products, services that will engage the market of the future (and the future is coming at us faster and faster) we’ll extinct our own companies. Example solution: Use open communities or outside consultants that are experts at innovation and commercialization. You can budget your time, leverage their resources, and budget the funds without defocusing your current team.

  • Nay-Sayers stop us in our tracks all too often. Embrace the Nay-sayers. They should have their voices heard for their valued input but do not cave in the face of their fears. There are, what I call, negative risks and positive risks. Negative risks are those that are pushed through without planning, insights, trends or customer interactions. They are made in isolation.

  • We are Positive Risk-Takers– Positive Risk-Taking is when you’ve done homework, customer discussions, you understand the trends, but there are still certainly risks on this unknown path. Example solutions: Create pilot programs, move forward slowly, and know what metrics you need to know this big idea is gaining momentum. Give it enough time to get traction. Big ideas do not happen overnight. They do not happen even in a year or two sometimes depending on the nature of your game changing idea. Withstand the Nay-sayers, and hear them out.

  • Lack of time, mentorship, resources, and investments! in every client these are issues that persist, if you are growing you will always need more of all of those things. Leveraging our open collaboration methodology can be a great way to learn, manage early costs and keep investments low while you are in discovery, planning and building stages.

  • Lack of embracing older talent. Somewhere along the way of building our great country, corporate America narrowed our prime working years to ages 23 to 42. The employable world has been treated as this demographic is the only time creative brain power exists. What benefits could you receive by diversification of your talent pool? Example solution: build your own internal game-changing mentor network. I once did an innovation workshop and had 4 people from an AARP chapter office join the group. I was shocked (yes, maybe at the time, I had bought into the whole young creative minds thing too) to learn this group was designing alternative transportation and working with the local energy company to do so. Many of the group were retired from larger companies with great knowledge and experience and were very eager to volunteer mentor or contract themselves out. Leverage brilliance, not age.

No need to go it alone! Bring in experts to show you the way. Maybe you are very experienced. Is this where your valuable time should be spent? Leverage is the name of the game. Commercializing our client’s innovations (getting customers and revenue in the door), Aligning internal teams, and accelerating success is 99% of the work we do at Plazabridge Group. There are great options out there to help you. Use them and increasing your available time on critical priorities.

Five Baby Steps to Kick-start your way Game Changing Innovation

What tips can I provide you to break free some of the more challenging barriers? We must change our thinking, our behavior, our cultures to truly create game changing innovations.

1.   Be open to the possibility: Our educational systems educate us to research why things will not work, look for justifications, returns, market needs, corporations are stuck in this cycle of simplistic additions of products and services. Not mind-blowing, turn it all inside out, cool as innovations that excite and delight customers! So many great ideas are killed before they are even shared with 3 people. Case brief: In one of our consulting engagements with large consumer beverage company we heard, of course, under their breath “we’ve lost our coolness.” The project goal was to shift their leaders and their corporate culture (globally) from being risk averse to taking more risks. This is a big challenge in the face of Six Sigma black belts. Every idea was summarily dismissed before the idea could be written fully on the whiteboard. The young emerging leaders would get excited the senior team became paralyzed in fear and why it would not work in this lean operationally efficient system. Challenging everything they knew, they agreed to work on one of the ideas that came out of one of our sessions (this took 4 months). That idea took 3 years to finally reach the market, but it was a true game changer for this company. They captured desired market share goals, built a new sustainable revenue stream, and took back the title as “cool”!

2.   Yes AND! A first step to get there may be a simple shift: instead of YES BUT use YES AND! We often get stuck in the vision of the Mt. Everest like mountain climb but without training and dedicated Sherpas to lead the way: nearly impossible to reach the peak! We know the outcome before we’ve even taken one step. Drop this thinking now. It is devastating to any game-changing acts. You must be passionate, diligent, believe in the mission, be focused, and not worried about the ups and the downs and the back ups as that is the ride you will be on till the game is changed. Example: As a mentor to young entrepreneurs, I, too often, the words can’t and don’t. We stop ourselves before even getting a good strong start on our ventures. There are many programs through the universities, through organizations like Take advantage of all the resources you can find. In our larger client companies, we hear similar statements, “my ideas go nowhere”, “we aren’t getting traction to get game-changing technologies out the door”, “we are strapped for resources”, “where’s the ROI on the investments?” and so many other barrier statements that stop us in our tracks.

3.   Open up! Whether you “open up” to a closed circle of trusted friends and colleagues or to an open collaborative forum sharing your ideas with others who may have interest can propel ideas forward at speeds sometimes unimaginable! Example: In many of the companies we work with, there is the need for a shift in their culture to a creative and innovation culture and centering it on the customer and b. to encourage more creativity amongst themselves. I will admit this is not a baby step but one step that is critical to the success of innovation. There are many simple ways to shift cultures and. in tandem, drive successful results. Here are a few case studies on some of the work we have done:

4.   Enroll others into your vision over time! Not everyone may be as quick at seeing your idea or vision. Spend time with people one on one. Take time to grow consensus on ideas. We must help them see the way. Rarely, in game changing products or companies, do customers immediately flock to the new thing. Again, we must show them, educate, and encourage people to try new things. Example: Many of our clients are in the game changing business. To help them commercialize their new ideas and technologies we build a process that is slow, methodical, and measurable. By building in milestones and measures, we educate ourselves on what we need to do to bring our customers into buying mode. Simple steps are best to start out with and if you engage your customers for feedback along the way you will learn more about what they need from you to buy.

5.   Become a Savvy Money Navigator Vs a Bank! Money will always be the subliminal barrier at every stage of your growth! Take some time to learn where funding exists for ideas inside your company. For the CEO, really consider your future growth and task your teams to look forward! Where will growth come from? Will it be with existing customers? Do you know where their future plans are heading and how you align with their journey forward? Many companies lose sight of their customer’s future growth plans and more times than desired those plans do not include their current partners’ and suppliers’ products. Don’t assume…ASK!

How might we help you drive game-changing growth? Reach out directly to me.

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The Power of Psychological Safety

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Building Teams Ready for Anything

The Power of Psychological Safety

GUEST POST from Art Inteligencia

For decades, we’ve defined high-performing teams by their collective talent, their competitive drive, or their relentless focus on execution. We’ve believed that success is a matter of gathering the smartest people in a room and demanding excellence. But as a human-centered change and innovation thought leader, I’ve seen time and again that this model is insufficient for the complexity of our modern world. The most resilient, innovative, and successful teams are not defined by individual brilliance, but by a shared sense of trust and vulnerability. Their secret weapon is a concept known as psychological safety, a foundational element that empowers people to take risks, speak up, and learn from mistakes without fear of judgment or reprisal.

Psychological safety is a shared belief held by members of a team that the team is safe for interpersonal risk-taking. In simple terms, it’s the feeling that you can be yourself, ask a “stupid” question, admit a mistake, or propose a wild idea without being shamed, ridiculed, or penalized. This isn’t a “soft” concept; it’s a hard, strategic capability. In a world where change is the only constant, teams must be able to experiment, give and receive honest feedback, and pivot with agility. None of this is possible in a fear-based environment. The human instinct to self-preserve—to avoid looking incompetent—is a powerful force. Without psychological safety, we self-censor, we withhold critical information, and we stick to the known, a sure-fire path to stagnation and irrelevance. Conversely, when psychological safety is high, a team’s collective intelligence soars, and their capacity for innovation becomes limitless.

Cultivating a Culture of Safety: A Leader’s Blueprint

Building psychological safety is a leader’s most important job. It’s not about being “nice”; it’s about being intentional. Here are four essential practices for creating an environment where your team is ready for anything:

  • 1. Frame the Work as a Learning Problem: In a complex world, there is no single right answer. Frame every challenge not just as a task to be executed, but as a hypothesis to be tested. This reframes failure as a source of valuable data and reframes mistakes as essential steps on the path to a solution.
  • 2. Acknowledge Your Own Fallibility: Leaders must go first. When you admit a mistake, say “I don’t know,” or ask for help, you create a powerful permission structure for your team. This vulnerability signals that it’s okay for them to do the same, breaking down the fear of looking incompetent.
  • 3. Practice Inclusive Inquiry: Instead of simply stating your opinion, ask questions. Actively seek out the opinions of quieter team members. Say things like, “What are we missing?” or “I want to hear from someone who disagrees with me.” This signals that diverse perspectives are not just welcome but essential.
  • 4. Respond Constructively to Failure: When a project fails or a mistake is made, your response is everything. Avoid placing blame. Instead, lead with curiosity. Ask, “What did we learn from this?” and “How can we build a system to prevent this from happening again?” This turns a moment of potential crisis into a learning opportunity.

“Talent gets you on the field, but psychological safety is what allows you to win the game.” — Braden Kelley

Case Study 1: Pixar’s “Braintrust” – A Masterclass in Candor

The Challenge:

In the high-stakes world of animated filmmaking, a single creative misstep can lead to a disastrous flop. For Pixar, the challenge was to create a mechanism for frank, honest, and even brutal feedback on films in progress without crushing the creative spirit of the director and their team. A typical corporate review process would be too political and hierarchical for the level of candid feedback needed.

The Psychological Safety Solution:

Pixar’s solution was the Braintrust, an exclusive group of the company’s most accomplished directors and storytellers. This wasn’t a formal committee; it was a culture built on psychological safety. The core rules of the Braintrust are simple yet powerful: a director is never obligated to act on the feedback, and the group’s purpose is to help the film succeed, not to assert power. The feedback is always on the work, never the person. This deep, shared belief that everyone is there to help and that no one is judging personal worth allowed for a level of open, candid criticism that is almost unheard of in other creative industries. Directors could present their half-finished, deeply flawed films and receive honest input without fear of professional harm.

The Result:

The Braintrust is a key reason for Pixar’s long-term, unprecedented creative success. It is a living testament to the power of psychological safety. By building an environment where candor and vulnerability were not just tolerated but celebrated, Pixar created a collective intelligence that consistently elevated the quality of every film. They proved that honest feedback, delivered with a foundation of trust, is the ultimate driver of creative excellence.

Case Study 2: Volkswagen’s “Dieselgate” – The Cost of Silence

The Challenge:

In the years leading up to the “Dieselgate” scandal, Volkswagen was a highly centralized, hierarchical organization with a demanding culture of top-down perfection. Leaders set ambitious, often unrealistic, performance targets. The challenge was to meet a new set of strict emissions standards for their diesel vehicles, a goal that their engineering teams knew was physically impossible to achieve without compromising performance.

The Psychological Safety Failure:

In this fear-based environment, with a rigid emphasis on hierarchy and an intolerance for failure, employees were not psychologically safe to speak up. The engineers knew the emissions targets were unattainable, but they feared professional repercussions—demotion, firing, or public shaming—if they admitted failure. Instead of raising the impossible challenge to senior leadership, they chose to develop and install a “defeat device,” a software program designed to cheat on emissions tests. This was a direct, disastrous consequence of a culture that prioritized looking good over being honest and vulnerable.

The Result:

When the deception was discovered, it led to one of the biggest corporate scandals in history. The financial cost was in the tens of billions of dollars, but the damage to the company’s brand and reputation was incalculable. “Dieselgate” serves as a powerful cautionary tale. It shows that when psychological safety is absent, people will choose silence over speaking the truth, and a single, unaddressed problem can grow into a monumental crisis that threatens the very existence of the organization. It’s proof that a lack of psychological safety is not just a cultural problem; it’s a critical strategic risk.

Conclusion: The Ultimate Foundation for Innovation

Psychological safety is not a “nice-to-have.” It is the ultimate foundation for building teams that are resilient, adaptable, and ready for anything. It is the soil in which innovation grows, where creativity flourishes, and where people are empowered to be their best, most authentic selves. As leaders, our most important job is not to provide all the answers, but to create the environment where our teams feel safe enough to find them together.

In a world of constant change, the ability to learn and evolve is paramount. And learning only happens when we are willing to admit what we don’t know, to experiment without fear of failure, and to speak our minds without fear of judgment. The future belongs to the psychologically safe. Let’s start building it, one conversation and one act of vulnerability at a time.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

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Reset and Reconnect to Increase our Connectedness

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Reset and Reconnect to Increase our Connectedness

GUEST POST from Janet Sernack

In our second blog in the Reconnect and Reset series of three blogs, we stated that now is not the time to panic. Nor is it a time to languish from change fatigue, pain, and emotional lethargy. It is a significant moment in time to focus, rehabilitate, rebuild, repair, regrow and reset to increase our connectedness through linking human touchpoints that increase people-power in the fourth industrial revolution.

In the current environment, where chaos and order are constantly polarizing, it’s crucial to touch people with empathy, reignite their social skills, and enable them to become healthily self-compassionate and more self-caring to:

  • Patiently support, lead, manage, mentor, and coach them towards finding their own balance to flow with mitigating the challenges of the fourth industrial revolution.
  • Take advantage of new technologies, networks, and ecosystems to re-engage and collaborate with others and with civil society in positive ways that contribute to the whole.
  • Do the good work that creates a more compelling, inclusive, resilient, and sustainable future, that serves the common good.

The Landscape Has Changed and So Have the Solutions

As the fourth industrial revolution continues to implode, we need to zoom out and consider the bigger picture. Where a recent Harvard Review article What Will Management Look Like in the Next 100 Years?” states that we are entering an era, which is fundamentally transforming the way we operate. Which is defined by the disruptive growth in blockchain technology, robotics, artificial intelligence, high-performance computing, and other core digital capabilities.

All of which, in some way, is dependent on linking the key human touchpoints that increase people’s power and our connectedness.

  • An era of empathy

In the same article, management scholar Rita Gunther McGrath argued that management practices based on command and control, and expertise would ultimately make way for empathy.

Where work is centred around value creation conducted through networks and collaboration, that rely on increasing the connectedness between machines and humans rather than through rigid structures and relationships to thrive through increasing people-power in the fourth industrial revolution.

  • Capable of better

The Qualtrics 2022 Employee Experience Trends Report also states that the landscape has changed.  Where people are choosing to work flexibly, to work in the places that work best for them, and to take time for their own well-being, families, and friends.

Where people are demanding change because they care, about their leaders and their organizations, and want to be capable of developing better ideas; better innovations; and delivering better performances.

The report outlines the four things your people need you to know:

  1. There will be an exodus of leaders – and women will be the first out the door.
  2. People will demand better physical and digital workspaces.
  3. The lack of progress in diversity, inclusion, and belonging won’t be accepted.

People don’t want to become irrelevant, nor do they want their managers, leaders, and organizations to become irrelevant. People know that they can’t, and won’t go back to the old ways of doing things. People also know that they are already living in the new normal and that they need to start working there, too and to do that, we need to increase our connectedness.

Which is especially important for building people’s power and mitigating the challenges emerging in the fourth industrial revolution.

  • A transformative moment for employees and employers

Businessolver’s Eighth Annual Report on the State of Workplace Empathy describes how the pandemic has impacted on employees’ personal lives, the labor market, and the economy, and states that “we are living through a renegotiation of the social contract between employees and employers”.

Their data shows that amid the return to the office, fewer employees view their organizations as empathetic, and that workplace empathy has clear implications for employee well-being, talent retention, business results, and increases people-power:

  • About 70% of employees and HR professionals believe that empathetic organizations drive higher employee motivation.
  • While 94% of employees value flexible work hours as empathetic, the option is only offered in 38% of organizations.
  • 92% of CEOs say their response to returning to in-person work is satisfactory, compared to 78% of employees.
  • 82% of employees say their managers are empathetic, compared to 69% who say the same about their organization’s chief executive.

Yet, there seems to be a true lack of understanding, especially in the corporate sector, of what it means to be empathetic, and a shortage of time and energy to develop the mindsets, behaviors, and skills to practice it and make it a habit.

It is also a fundamental way of being to increase our connectedness and building peoples-power.

Make a Fundamental Choice to Increase our Connectedness

Even though each person is a distinct physical being, we are all connected to each other and to nature, not only through our language but also by having a deeper sense of being.

Human connectedness is a powerful human need that occurs when an individual is aware and actively engaged with another person, activity, object or environment, group, team, organization, or natural environment.

It results in a sense of well-being.

The concept is applied in psychology as a sensation or perception where a person does not operate as a single entity – we are all formed together to make another, individual unit, which is often described as wholeness.

Which is especially important for our well-being and people power in the face of the challenges of the fourth industrial revolution.

Strategies for Developing Quality Connections

  • Be grounded, mindful and conscious

Being grounded and mindful enables people to become fully present to both themselves and to others. It is a generous gift to unconditionally bestow on others. Especially at this moment in time, where the pandemic-induced social isolation, has caused many people to become unconsciously and unintentionally self-absorbed.

There is an opening to become aware of, and to cultivate our attending and observing skillsets, to sense and see the signals people are sending, at the moment they are sending them. To help people identify the source of their issues to re-establish a sense of influence and control that reduces their autonomic nervous system reactions and help them restore their calmness.

This is the basis to increase our connectedness, by attuning and becoming empathetic as to what thoughts and feelings lay behind their behaviours and actions, with detachment, allowing and acceptance.

  • Be open-hearted and open-minded 

Being curious about what others are feeling and thinking, without evaluating, judging, and opposing what they are saying. By knowing how to listen deeply for openings and doorways that allow possibilities and opportunities to emerge, to generate great questions that clarify and confirm what is being both said and unsaid.

To support people by creating a safe and collective holding space, that reduces their automatic unconscious defensive responses.  To defuse situations by being empathic and humble and increase our connectedness by asking how you might help or support them, and gaining their permission and trust to do so.

Increase our connectedness through being vulnerable in offering options so they make the best choice for themselves, to reduce their dependence, help them identify and activate their circles of influence and control and sustain their autonomy.

  • Help people regenerate

Now is the moment in time to focus on building workforce capabilities and shifting mindsets for generating a successful culture or digital transformation initiative by harnessing, igniting, and mobilizing people’s motivation and collective intelligence and building people power.

It is crucial to acknowledge and leverage the impact of technology through increasing people-power by developing new mindsets, behaviors, skills, and new roles, which are already emerging as fast as other roles change.

Be willing to invest in the deep learning challenges that build people’s readiness and receptivity to change, so they can embrace rather than resist it, and be willing to unlearn, and relearn, differently, by collaborating with other people, leaders, teams, and organizations across the world.

Ultimately, it all depends on being daring and willing to increase our connectedness, through adapting, innovating, and collectively co-creating strategies, systems, structures that serve the common good, and contribute to the well-being of people, deliver profits and nurture a sustainable planet.

Find out more about our work at ImagineNation™

Find out about our collective, learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, a collaborative, intimate, and deeply personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, starting Tuesday, February 7, 2023.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem focus, human-centric approach, and emergent structure (Theory U) to innovation, and increase people-power, upskill people and teams and develop their future fitness, within your unique context. Find out more about our products and tools.

This is the final in a series of three blogs on the theme of reconnecting and resetting, to create, invent and innovate in an increasingly chaotic world.

You can also check out the recording of our 45-minute masterclass, to discover new ways of re-connecting through the complexity and chaos of dis-connection to create, invent and innovate in the future! Find out more.

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From Trendspotting to Transformation

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Translating Foresight into Action

From Trendspotting to Transformation

GUEST POST from Chateau G Pato

In our increasingly volatile and complex world, the ability to identify emerging trends is no longer enough. Every executive team can access reports on AI, sustainability, or demographic shifts. The true differentiator, as a human-centered change and innovation thought leader, lies not in spotting the trends, but in translating foresight into concrete, transformational action. Many organizations excel at analysis but falter at execution, leaving invaluable insights to languish in PowerPoint presentations. The future belongs to those who bridge the gap between understanding what’s coming and actively shaping their response, converting potential threats and opportunities into tangible strategies and innovations.

The challenge isn’t a lack of information; it’s a lack of connection between the strategic foresight function and the operational innovation engine. Trend reports often remain isolated, failing to inform product development, marketing initiatives, or organizational design. This disconnect stems from a mindset that views foresight as a predictive exercise rather than a generative one. To truly move from trendspotting to transformation, we must shift our focus from merely observing the future to actively engaging with it, asking “What does this trend mean for us, and what will we do about it?” This requires a robust, repeatable methodology that empowers teams to move from abstract insights to actionable strategies and, ultimately, breakthrough innovations.

The Foresight-to-Action Framework: A Human-Centered Approach

Bridging the gap between trend analysis and practical implementation requires a structured, human-centered framework. It’s about empowering your people to envision and build the future, not just react to it:

  • 1. Deconstruct and Empathize: Don’t just list trends; unpack them. Who will be affected by this trend? How will it change their daily lives, their needs, their desires? Use human-centered design tools like empathy maps and user personas to make abstract trends tangible and relatable.
  • 2. Provoke and Connect: Challenge your assumptions. How might this trend disrupt your core business, even if it seems unrelated? How might it open up entirely new business models or customer segments? Force cross-functional teams to connect disparate trends, looking for synergistic opportunities or compounding risks.
  • 3. Envision and Experiment: Based on your insights, develop concrete future scenarios. Don’t just describe them; visualize them. Then, identify specific, low-risk experiments that can test assumptions about these future states. What’s the smallest, fastest way you can learn if your envisioned future is viable?
  • 4. Prototype and Pilot: Move beyond theoretical discussions to tangible prototypes. This doesn’t mean a fully-fledged product, but a minimum viable product (MVP) or service that brings a piece of the future to life. Pilot these prototypes with real users, gather feedback, and iterate rapidly.

This systematic approach, which Braden Kelley has developed and refined as FutureHacking™, empowers organizations to move beyond passive observation. FutureHacking™ provides the tools and mindset necessary to transform abstract trends into concrete innovation pathways. It’s a human-centered methodology that focuses on translating foresight into tangible prototypes and actionable strategies, fostering a culture where every team member is equipped to anticipate and proactively shape the future, not just react to it. It enables businesses to iterate rapidly, de-risk their investments, and build resilient strategies that anticipate tomorrow’s challenges today.

“Foresight without action is merely entertainment. Transformation requires the courage to translate ‘what if’ into ‘what now’.” — Braden Kelley

Case Study 1: The LEGO Group – Building the Future Piece by Piece

The Challenge:

In the early 2000s, The LEGO Group faced a looming crisis. Digital entertainment was on the rise, and children were spending less time with physical toys. The company recognized the trend, but the challenge was how to respond strategically without abandoning its core identity. They needed to evolve beyond plastic bricks but feared alienating their loyal customer base.

The Foresight-to-Action Solution:

LEGO embraced a proactive foresight strategy that involved deep engagement with emerging trends in digital play and child development. They didn’t just observe; they experimented. This led to innovations like LEGO Mindstorms, which blended physical building with robotics and coding, appealing to a new generation of digital natives. Later, they developed transmedia storytelling through movies (e.g., The LEGO Movie) and video games, seamlessly integrating digital experiences while reinforcing the core value of creative building. Their foresight function worked directly with product development teams to prototype and test these new concepts.

  • Deconstructed Trends: They understood that the digital trend wasn’t just about screens, but about interaction, creativity, and new forms of storytelling.
  • Envisioned New Play: They imagined a future where physical and digital play could coexist and enhance each other, rather than compete.
  • Prototyped and Piloted: Mindstorms and early video games were clear examples of prototyping a new future, learning from user interaction, and scaling successful concepts.

The Result:

By translating foresight into tangible action, LEGO transformed itself from a traditional toy company into a global entertainment brand. They didn’t just survive the digital revolution; they thrived, leveraging foresight to drive continuous innovation that connected with new audiences while staying true to their heritage. This strategic agility allowed them to anticipate and shape the future of play, rather than being swept away by it.

Case Study 2: Starbucks – Anticipating the “Third Place”

The Challenge:

In its early growth stages, Starbucks was expanding rapidly, but leaders like Howard Schultz weren’t just thinking about coffee; they were thinking about human connection and urban trends. They anticipated a societal need for a “third place”—neither home nor work—where people could gather, socialize, and relax. The challenge was how to design and scale this concept into a ubiquitous global brand.

The Foresight-to-Action Solution:

Starbucks’ success was rooted in translating this foresight into every aspect of its store design, product offerings, and customer experience. They didn’t just sell coffee; they sold an atmosphere, a sense of community, and a comfortable environment for meeting or working. This went beyond trendspotting; it was about actively creating the future “third place.” They designed inviting interiors, comfortable seating, and, crucially, provided free Wi-Fi long before it was common, anticipating the rise of mobile work and digital nomads.

  • Deconstructed Human Needs: They understood a growing urban loneliness and a desire for accessible, comfortable social spaces.
  • Envisioned a New Experience: They imagined a place that felt like an extension of one’s living room or office, going beyond the transactional coffee shop model.
  • Prototyped and Scaled: Each store became a prototype for the “third place” concept, with continuous iteration on design, menu, and service to optimize the desired feeling.

The Result:

Starbucks didn’t just adapt to the “third place” trend; it defined it. By acting on their foresight, they built a global empire that transcended coffee sales, creating a powerful cultural phenomenon. This transformation from a simple coffee vendor to a global social hub demonstrates the immense power of translating foresight into concrete, human-centered action, shaping consumer behavior and urban landscapes in the process.

Conclusion: The Act of Future-Making

The distinction between organizations that merely survive and those that truly thrive often comes down to their ability to transform foresight into action. It’s about having the courage to move beyond analysis paralysis and to actively engage in future-making. This requires not just brilliant strategists, but a culture that empowers every team member to observe, question, experiment, and build.

As leaders, our role is to champion this shift. We must provide the methodologies — like FutureHacking™ — and foster the mindset that views trends not as destiny, but as raw material for innovation. The future is not something that happens to us; it is something we create, one strategic action and one human-centered innovation at a time. Let’s move beyond predicting the future and start building it.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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Asking the Wrong Questions Gets You the Wrong Answers

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Asking the Wrong Questions Gets You the Wrong Answers

GUEST POST from Greg Satell

“Greed… is good,” declared Gordon Gekko, the legendary character from the 80s hit film Wall Street. “Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.”

The line resonated because it answered a question that people cared deeply about at the time, “how can we become more efficient?” In the face of heightened competition from Japan’s doctrine of total quality management, American firms appeared too sclerotic to compete. Corporate raiders preaching shareholder capitalism offered an easy answer.

The results are clear. Since then, the stock market has crashed a number of times, the last one resulting in a Great Recession. Productivity growth has been depressed for half a century. The incidence of extreme weather events and pandemics like coronavirus is on the rise. Clearly, we’ve been getting the wrong answers. It’s time we started asking different questions.

How Can We Become More Resilient?

We’ve grown accustomed to a reasonably stable world in which disasters were relatively rare. In the 19th century, wars, epidemics and financial panics were relatively common. The 1930s and 40s saw a global depression and a world war that claimed 75 million lives. By 1945, almost all of Europe and large parts of Asia lay in ruins.

Yet out of the ashes, we built a new, more resilient world. Institutions like the United Nations, World Bank and the International Monetary Fund created platforms to solve problems on a global scale. Bretton Woods established a global financial system and the Marshall Plan rebuilt Europe. An emerging welfare state permanently altered the role of the public sector in society.

That began to change in the Go-Go 80s when we shifted our focus from resilience to output maximization. As economists developed exciting new financial engineering techniques, business and governments increased their tolerance for risk and loaded up on debt. Staid chief executives gave way to corporate raiders and tech moguls.

The result is that we’ve become more vulnerable to shocks. In addition to worrying levels of financial debt, we also have considerable environmental debt and infrastructure debt, even as threats from terrorism, cyberattacks, extreme weather events and, of course, pandemics increase. We desperately need to figure out how to increase our resilience.

Clearly, a capitalism that focuses solely on financial capital and ignores other forms, such as social capital, human capital, natural capital, etc., is far too narrowly construed. We need to get better at integrating Environmental, Social and Corporate Governance (ESG) metrics into how we evaluate organizational performance.

What is the Relationship Between Cause and Effect?

Even a young child understands that if she touches a hot stove, her burn was caused by the stove and that it is no coincidence that both happened at the same time. We would expect her to run to her mother crying, “the stove burnt my hand!,” not “the pain in my hand coincided with touching the hot stove.”

Yet our algorithms and equations have no way of making basic distinctions between correlation and causality, which makes it difficult to design interventions. For example, if you find a strong correlation between temperature readings and ice cream sales, you might conclude that moving the thermometer close to a heater will improve ice cream sales.

Now I admit that sounds a bit silly, but similar mistakes happen all the time. For example, if a correlation is found between certain zip codes, crime rates and recidivism, we will tend to design our systems to punish people from poor neighborhoods more harshly. In fact, there is abundant evidence that mistakes such as these are common.

Debates about correlation and causation may seem academic, but they have real world impacts. If we could incorporate causation into our machine learning algorithms, we would greatly increase the speed and likelihood of finding a cure to Covid-19. At this point, there is a nascent effort to build intelligent systems based on causal principles, but there haven’t been any practical breakthroughs yet.

What is the Right Thing to Do?

In modern times, acting ethically has been seen as a relatively simple matter. You try to be kind to people and don’t lie, cheat or steal. In a moral classical sense, however, the study of ethics has been less about adhering to moral principles and more about trying to understand what the right thing to do is when there isn’t any cut-and-dried answer.

Most important decisions, like those that involve Covid-19 policy, have tradeoffs. It’s not hard to get people to agree that we should do everything possible to save as many lives as we can. Yet it is also true that we need to think about people’s ability to earn a living as well. So coming up with a strategy that saves lives and minimizes economic impact is far from easy, especially when easing restrictions too early could lead to even greater economic and human costs.

As our technology becomes more powerful, more difficult questions emerge. Can we teach an algorithm to understand right from wrong? Who is accountable for decisions machines make? To what extent should artificial intelligence systems be auditable? Or consider the emerging field of synthetic biology. Clearly, it’s giving us a leg up in fighting the coronavirus, but too what extent is it okay to alter the genetic code?

Part of the reason we were so unprepared for the Covid-19 pandemic is that most people were completely unaware of how dire the danger was. Clearly, we need a more public dialogue about the technologies we are building to achieve some kind of consensus of what the risks are and what we as a society are willing to accept. As we have seen, the consequences, financial and otherwise, can be catastrophic. We no longer have the luxury of acting cavalierly.

What Will It Take to Make Change Happen?

It should be obvious by now that things need to change. What’s not so obvious is how to bring change about. Theoretically, in a democracy you drive change forward by convincing a majority of your fellow citizens that it’s a good idea. However, research suggests otherwise. In fact, one study found that “when a majority—even a very large majority—of the public favors change, it is not likely to get what it wants.”

We see this play out in the real world as well. It has become common for those calling for change to organize a “March on Washington.” They make some noise for a while and then sputter out. In 2011, the Occupy Movement organized protests in over 950 cities across 62 countries, with little or nothing to show for it.

Yet it’s also misleading to suggest that shadowy special interests dictate what happens. While it is true that there are a number of rich and powerful forces, ranging from the Koch Brothers and George Soros to the NRA and Planned Parenthood, these forces are often in opposition to each other. They are better at blocking change than bringing it about.

As I explain in Cascades, change is not top-down or bottom-up but moves side-to-side. You need to mobilize people to influence institutions that have the power to affect change. Or, as Martin Luther King Jr’s biographer put it, “A social movement that only moves people is merely a revolt. A movement that changes both people and institutions is a revolution.”

We’re where we’re at today because people convinced institutions that maximizing output was more important than stability and resilience, that correlation was more important than causation and that technology was ethically neutral. We know now that none of these things are true. If we are to come up with better answers, we need to start asking different questions.

— Article courtesy of the Digital Tonto blog
— Image credit: Business Insider

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Holistic Metrics for Customer Experience Innovation

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Beyond NPS

Holistic Metrics for Customer Experience Innovation

GUEST POST from Art Inteligencia

In the world of customer experience (CX), the Net Promoter Score (NPS) has become the gold standard. With its simple, elegant question — “How likely are you to recommend us to a friend or colleague?” — it has given leaders a seemingly clear and powerful metric to track customer loyalty. And while NPS has served its purpose, it has, in my opinion, become a crutch. As a human-centered change and innovation thought leader, I am here to argue that chasing a single score is a dangerous oversimplification. It tells you what is happening, but it provides almost no insight into why or how to fix it. The future of customer experience innovation belongs to organizations that move beyond a single number and embrace a holistic, multi-dimensional metric framework that captures the full, rich tapestry of the customer journey.

The problem with a metric like NPS is that it is a lagging indicator. It measures the outcome of an experience, but it doesn’t diagnose the cause. It’s like a doctor taking your temperature and knowing you have a fever, but having no idea if the cause is a minor cold or a serious infection. This singular focus can lead to a host of negative consequences: a lack of actionable insight, a disconnection from real customer behavior, and a dangerous internal obsession with “gaming the number” at the expense of genuine customer value. To truly innovate the customer experience, we must stop chasing a score and start understanding the human story behind it. We need to measure not just what customers say, but what they do and how they feel.

Building a Holistic CX Metric Framework: The Three Dimensions

A more effective approach to measuring customer experience involves a framework that looks at three distinct, yet interconnected, dimensions. These are your essential innovation levers:

  • 1. Behavioral Metrics (The “What”): These are the objective data points that show what your customers are actually doing. Metrics like repeat purchase rate, average session time, feature adoption, time to resolution for a support ticket, or product usage frequency provide hard, undeniable facts about customer engagement. These tell you if your product or service is truly creating value.
  • 2. Perceptual Metrics (The “How They Think”): This is where traditional scores can be useful, but in a more nuanced way. Metrics like Customer Effort Score (CES) — “How much effort did you have to put in to get your issue resolved?” — or Customer Satisfaction (CSAT) on a specific interaction are incredibly powerful. They tell you if the experience was easy, simple, and satisfying.
  • 3. Emotional Metrics (The “How They Feel”): This is the most critical and often overlooked dimension. It goes beyond a simple number to capture the emotional state of the customer. Use sentiment analysis on open-ended survey responses, call center transcripts, or social media comments. Qualitative feedback, such as an interview where a customer shares a story of a “wow” moment or a frustrating interaction, provides the color and context that no score ever could.

In the pursuit of holistic experience management, many of my clients are turning to strategic partners to help them build the necessary infrastructure. A great example of this is the work being done by companies like HCLTech, which helps clients implement Experience Management Offices (XMOs). These are not just new departments; they are a centralized command center for an organization’s entire experience ecosystem. By creating a dedicated XMO, companies can move beyond siloed efforts and begin to measure and manage experiences for their customers, partners, and employees as a unified whole. This includes the deployment of Experience Level Measures (XLMs), a set of sophisticated metrics that go far beyond a simple NPS score. XLMs capture the full journey, measuring everything from emotional sentiment and perceived effort to behavioral data and digital engagement. It’s a fundamental shift from a reactive, score-based approach to a proactive, human-centered one, ensuring that every touchpoint is optimized for a truly superior experience.

“The best metric is not a score; it’s a story. And a holistic framework gives you the chapters, the characters, and the plot points you need to innovate.”

Case Study 1: Zappos and the Obsession with “Wow”

The Challenge:

In the early 2000s, Zappos faced the monumental challenge of building a viable e-commerce business for shoes, a category that many believed would never succeed online due to the need for a physical try-on. The challenge was not just to sell shoes but to create a customer experience so exceptional that it would overcome the inherent friction of online retail and build a brand on trust and loyalty.

The Holistic Metrics Response:

Zappos’ innovation was not just in their business model, but in their metric framework. While they tracked revenue, they were obsessed with delivering “wow” moments. They didn’t just measure Customer Satisfaction; they actively encouraged employees to spend a minimum of an hour on a single customer service call to build a deep, human connection. They measured the number of free shipping upgrades to delight customers. The company was willing to spend money on a customer call or shipping because they understood the immense, long-term value of an emotional connection. Their core metric wasn’t NPS; it was the number of times they could surprise and delight a customer. Their behavioral metric was the high rate of repeat purchases, which they knew was a direct result of the positive emotions they fostered.

The Result:

Zappos became famous for its customer service. The emotional and behavioral metrics they prioritized directly led to high customer lifetime value and an army of loyal brand advocates. This focus on the holistic experience was their primary innovation, and it created a level of brand love that was almost impossible for competitors to replicate. The lesson: by measuring the moments that matter, you can build a more resilient and beloved business.

Case Study 2: HubSpot’s Proactive Customer Health Score

The Challenge:

In the world of B2B SaaS, customer churn is a constant threat. Historically, companies would rely on a lagging indicator — cancellation — to know when a customer was at risk. The challenge for HubSpot, a leader in marketing and sales software, was to move from a reactive posture to a proactive one. They wanted to know a customer was unhappy or disengaged long before they decided to leave.

The Holistic Metrics Response:

HubSpot developed a “Customer Health Score” as their primary innovation metric. This wasn’t a simple survey result; it was a holistic metric composed of three key dimensions:

  1. Behavioral: How often were they logging in? Were they adopting and using the key features of the software? Was their team size expanding or contracting?
  2. Perceptual: What was their satisfaction with the support team?
  3. Emotional: What was the sentiment from a recent check-in call with their account manager?

By combining these dimensions, HubSpot could see a comprehensive view of a customer’s health. For example, a customer who was logging in less frequently and had a recent low satisfaction score would be flagged as at-risk, even if they hadn’t expressed a desire to leave. This gave the team a chance to intervene and innovate the experience — by offering more training, providing personalized support, or addressing a specific pain point — before it was too late.

The Result:

HubSpot’s proactive, holistic approach to customer health significantly reduced churn and increased customer lifetime value. By moving beyond a single metric like NPS and instead focusing on the full story of customer behavior, perception, and emotion, they were able to build a more resilient customer base and a product that continuously evolved to meet customer needs. This case study proves that a holistic metric framework is not just a tool for measurement but a powerful engine for continuous innovation.

Conclusion: The Future of Experience is Human

A single score, no matter how elegant, is an oversimplification of the complex human experience. It is a tool for the passive manager, not the human-centered innovator. The most successful organizations of the future will be those that have the courage to move beyond the comfort of a single number and embrace the messy, beautiful complexity of their customers’ lives. By building a holistic metric framework that measures what people do, how they think, and how they feel, we can move from simply managing customer satisfaction to truly innovating the human experience.

The time has come to stop chasing a number and start listening to the human story. The next great innovation is not hiding in a spreadsheet; it’s waiting for you to find it in the heart of your customer’s journey.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Unsplash

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Innovation and Transformation Advisory and Connection Opportunity

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Innovation and Transformation Advisory and Connection Opportunity

Braden Kelley has been focusing on human-centered change and innovation for more than twenty years, bringing in elements of design thinking, customer experience, employee experience and digital transformation as needed.

On November 18, 2022 our founder will be in New York City (Midtown Manhattan) and available to connect for any of the following purposes:

  • Private keynote or workshop for your organization

  • Certification session on the Change Planning Toolkit™ and/or FutureHacking™ sets of tools for your team

  • Featured keynote speaker or workshop for a sales event or conference

  • Advisory session to provide input on a specific innovation project or your overall innovation or transformation program

  • Audio or video podcast appearance

  • Grab a coffee or a meal — to connect or reconnect

  • Or, if you think Braden should interview you on camera to join the video interviews he’s done with luminaries like Dean Kamen, Seth Godin, Dan Pink, Roger Martin, Kevin Roberts, and most recently – PepsiCo’s Chief Design Officer Mauro Porcini – Braden will bring his video camera!

If you work in Manhattan or are willing to travel in from elsewhere in the greater New York City metropolitan area (or the world) and are looking to increase the innovation or transformation capabilities of your organization or to de-risk an innovation project by getting an outside perspective, or just to connect, contact Braden to book time on November 18, 2022.

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