Exclusive Interview Excerpt from InnovationManagement.se with Martin Reeves and Jack Fuller

Imagination is one of the least understood but most crucial ingredients of success. It’s what makes the difference between an incremental change and the kinds of pivots and paradigm shifts that are essential to transformation — especially during a crisis.

Imagination is needed now more than ever—to find new opportunities, rethink our businesses, and discover paths to growth. Yet too many companies have lost their ability to imagine. What is this mysterious capacity? How does imagination work? And how can organizations keep it alive and harness it in a systematic way?

Drawing on the experience and insights of CEOs across several industries, as well as lessons from neuroscience, computer science, psychology, and philosophy, Martin Reeves of Boston Consulting Group’s Henderson Institute and Jack Fuller, an expert in neuroscience, provide a fascinating look into the mechanics of imagination and lay out a process for creating ideas and bringing them to life.

I had the opportunity recently to interview the authors about the concepts behind the book The Imagination Machine: How to Spark New Ideas and Create Your Company’s Future.

Below is the text of the interview:

1. What do we most need to understand about the slowing growth rates you highlight early in the book?

Long term growth rates have been slowing in recent decades and its likely that this will continue, driven by demographic maturation even in countries which have been motors of global economic growth like China, as well as by increasing material saturation and planetary sustainability limits. The consequence is that it will become harder for companies to passively participate in aggregate growth or to merely refocus on faster growing geographic or product markets. Companies will therefore need to compete more aggressively for growth by creating new opportunities through imagination and innovation.

2. How does imagination differ from dreaming and creativity?

Dreaming is fantasy, unconstrained by the laws of physics and economics. Imagination, as we use the term in the book, is conceiving of things which do not exist but could be created. Imagination is therefore grounded in causal thinking. Creativity is a capability which can help individuals generate imaginative ideas but to systematically harness the power of imagination we need to look at the entire life cycle of ideas from inspiration through obsolescence and renewal and we need to consider how ideas develop and spread socially.

3. What makes imagination go?

Imagination is triggered by surprises which do not fit our current mental model for how the world, or a business is supposed to work. These surprises occur in the form of accidents (unintended consequences), anomalies (deviations from normal outcomes), and analogies (comparisons with other situations). In order to leverage a surprise, we need to first perceive it, requiring an external orientation, keen observation and open-mindedness. We also need to care about what we see, in the sense of harboring ideals or frustrations which propel is to pursue further the impetus created by surprise.

4. What is collective imagination, why is it important, and how is it fostered?

An idea which is not communicated or supported and adopted by others can never create new realities and be of economic value. Since an idea cannot be directly observed, it creates what philosophers call the challenge of inter-subjectivity. We can share ideas socially however by creating a prototype, by sharing the experience of developing an idea together, by witnessing its effect or by hearing and being motivated by a narrative which points to the significance of the idea. Put another way, one person’s idea needs to become the next persons surprise and inspiration if an idea is to spread. Organizations can unwittingly create many barriers to the spread of ideas, from functional silos, to local organizational dialects, to applying financial criteria too early, to skeptical cultures which only embrace proven ideas.

5. What gets in the way of imagination?

There are many obstacles to harnessing imagination throughout the lifecycle of ideas. These begin with the internal orientation of large companies, and over-reliance on averages and aggregates which conceal the surprises we need to see. Then we have the fact that few managers are trained in counterfactual thinking and many company cultures reject new ideas, in the name of “practicality”. Then we have obstacles to the spread of ideas, some of which I have already mentioned. As ideas mature, success needs to replicated and scaled through codification, which many companies make too complex to be implementable or too vague to capture essential features. Finally, past success can be toxic to future success if it becomes enshrined in fixed mental models and complacency.

6. Why is it important to understand and challenge your mental models?

Mental models are often confused with facts, but constructs like an industry, a strategy or a business model are chosen simplifications, which could be otherwise. If we don’t challenge our existing mental models, we cannot create new ones which then become the basis for new realities. To do this, we need to pay attention to anomalies and use them to update and evolve our mental models. It helps if we hold several mental models in mind at one time and if we are familiar with the techniques of counter-factual thinking – like decomposing models into elements and recombining them or imposing or removing constraints. It also helps if we educate ourselves broadly in several disciplines to build our repertoire of concepts and perspectives.

7. What is the link between action and imagination?

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Exclusive Interview Excerpt from InnovationManagement.se with Cyril Bouquet, Jean-Louis Barsoux, and Michael Wade

For the past decade, Cyril Bouquet, Jean-Louis Barsoux, and Michael Wade, professors of innovation and strategy at IMD Business School, have studied inventors, scientists, doctors, entrepreneurs, and artists. These people, or “aliens,” as the authors call them, are able to make leaps of creativity, and use five patterns of thinking that distinguish them from the rest of us.

Alien Thinking leads to a fresh and flexible approach to problem-solving. Alien thinkers know how to free the imagination so it can detect hard-to-observe patterns. They practice deliberate ways to retreat from the world in order to see the big picture underlying a problem. And they approach ideas in systematic ways that reflect the constraints of reality.

I had the opportunity recently to interview these three IMD professors about the concepts behind the book ALIEN Thinking: The Unconventional Path to Breakthrough Ideas.

Below is the text of the interview:

1. It looks like A.L.I.E.N. is an acronym. What are the key components that make up the approach? And what was the genesis for its creation?

Cyril Bouquet (CB): ALIEN thinking is first and foremost a metaphor that captures the need to approach problems with an open mind and a fresh perspective – like a child or an outsider – in order to develop breakthrough solutions.

About 10 years ago, my colleague Estelle Metayer (now professor at McGill University in Canada) was discussing the importance of avoiding strategic blindspots in a session she ran for groups of executives at IMD. Browsing through a book on change called Future Think, she also brought my attention to the first chapter, which was called “Looking Through Alien Eyes”. I thought this metaphor was very applicable to innovation – and at some point, I made a connection between the letters and some of the themes I was teaching to executives in class. Together with my colleagues, Jean-Louis and Mike, we came up with an acronym that highlights the essence of the creative mindset that we believe executives must embrace.

So, A stands for Attention, which is about noticing problems or opportunities that you and others previously missed by changing where and how you look.

L is for Levitation, which means stepping back to gain perspective and make sense of what you’ve seen to reflect on what you need to do differently.

I stands for Imagination, which involves connecting the dots in new and interesting ways to create original and useful ideas.

E is about Experimentation, which is about testing your promising idea and turning it into a workable solution that addresses a real need.

Finally, N stands for Navigation, which is about finding ways to get your solution accepted without getting shot down in the process.

2. Why is originality important? Why is it difficult to be original?

Jean-Louis Barsoux (JLB): Originality is a key driver of innovation and progress. It’s what fuels economic growth and brings advances in domains from science and medicine to inequality and sustainability, not to mention spiritual and emotional sustenance through the creative and performing arts.

But originality often represents a challenge to the prevailing norms and practices. It can easily trigger an allergic reaction toward the “odd” idea or its “weird” originator. The more disruptive your idea, the harder you need to work to show how it fits with the belief systems of people whose support you need to move the idea forward.

This is especially the case within companies. Intrapreneurs who come up with breakthrough ideas are often shocked to discover how much resistance they elicit from inside the organization that stands to benefit the most.

3. What does it mean to think like an “alien”?

Michael Wade (MW): Urging would-be innovators to think like aliens is similar to what Zen Buddhists call adopting the “beginner’s mind”. It’s about developing an attitude of openness and overcoming the many biases and blindspots that place artificial limits on your creative intelligence.

Perhaps the most insidious of these biases is what the French call “déformation proféssionnelle”. This is your tendency to look at the world through the distorting lens of your job, your training or profession. The very expertise that can help you solve problems can blind you to a wider range of creative possibilities. Instead of seeing the world as it is, you view it in the way an accountant, lawyer, engineer, or professor would see it.

This expertise baggage is problematic because it can impact every phase of the innovation process: starting with what problems we pay attention to or ignore; and how we interpret the information. It influences the types of ideas we generate and what aspects we stress or neglect in testing. Ultimately, it also impacts who we reach out to for support and what arguments we put forward to convince them.

It is vital to be conscious of this conditioning as we develop our ideas, test them, and try to sell them. Whenever possible we need to get input from people who think differently from us – and make sure we listen to them – to counteract our preconceptions.

4. Why do existing innovation frameworks – including design thinking and lean startup – fall short?

CB: The design thinking and lean start up methodologies have done a wonderful job of raising our understanding of innovation and creating a shared vocabulary – with concepts like “minimum viable product”, ideation, and pivot. But we feel that like other innovation frameworks, they fall short in two ways.

First, they are incomplete. They don’t explicitly take account of the vital role of reflection – what we call levitation – throughout the innovation process. Instead they emphasize speed and action, presenting innovation as a series of sprints. Lean startup takes the initial problem as a given, leaving no space for reframing it, before launching into a frenzied cycle of build-measure-learn. Nor do existing models integrate the digital aspect of innovation or show how digital technologies relate, say, to the “human-centric” principles enshrined in design thinking.

Second, existing models are misleading because they gloss over the psychological pitfalls and biases that inhibit your original thinking. They tell you what to do, without acknowledging why it’s difficult. For example, pivoting is a great concept, but to do it, you must overcome some critical cognitive biases, including confirmation biases and sunk cost effects. By contrast, ALIEN thinking surfaces some of the ways we deceive ourselves at different stages of the innovation process – and end up focusing on the wrong problems, or jumping to solutions, or sticking too long with a bad idea.

Our view is that an alien mindset can support and complement design thinking and lean startup by helping to challenge assumptions that these frameworks take for granted.

5. What can or should be the role of digital augmentation be in innovation activities?

MW: Digital technologies can boost ALIEN thinking in several ways – but especially during the attention and experimentation phases.

For example, in terms paying attention to how products or services are actually used and what are some of the unmet needs, we traditionally relied on painstaking direct observation of users. But today, a lot of that observation can be automated. You can remotely monitor people and objects in close to real time through sensors and social listening. For example, the German-based Nivea brand tapped into discussions across social media sites concerning deodorant use. Contrary to expectations, they discovered that the main preoccupation of consumers was not fragrance or effectiveness, but clothes stains. This insight triggered the development of a new category of anti-stain deodorants. Digital tools enable you to collect data without direct observation and on a much larger scale than previously.

Digital technologies also make a dramatic difference at the experimentation stage. You can build digital twins of objects to experiment quickly, safely, and cheaply. This is exactly what Bertrand Piccard’s team did when they built the first solar-powered plane, with the wingspan of an Airbus, the weight of a car and the power of a small motorcycle. Testing multiple full-scale prototypes would have been ruinously expensive. But computer simulation creates the possibility of trial without error – or at least without costly errors.

6. In an era of digital saturation and burnout, how are people supposed to make time to focus and elevate their thinking?

JLB: Occasionally stepping back from the action to regain perspective and make sense of disparate pieces of information is vital to creativity. Reflection is an integral part of the innovation process – whether it’s to reconsider the problem, or your approach to it – or the solution itself.

But elevating your thinking, which we call “levitation”, has become increasingly difficult in a context where we are inundated with calls, emails, and texts from colleagues expecting quick responses.

Paradoxically, the experience of working from home, which should have given us more control over our agenda, has often exacerbated the problem, with back-to-back or even overlapping zoom calls. And although we save on commuting time, we rarely make use of that time to re-energize or re-assess.

The only way to secure reflection time is to plan for it. This may seem forced, but unless you schedule breaks, you will find that the demands of the problems at hand always win out. It also has to be a meaningful break. Snatching a short lunch at your desk while watching social media for distraction won’t help. Nor does going out a walk and taking your phone with you.

Creativity demands introspection. To leverage your pause, you really need to unplug and see where your mind leads you. You need to protect your boredom! Is it any wonder that people often report getting their best ideas in the shower? It is one of the few mindless activities that remains beyond the reach of digital technology!

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