Author Archives: Stephen Shapiro

About Stephen Shapiro

Stephen Shapiro is the author of five books including “Best Practices Are Stupid” and “Personality Poker” (both published by Penguin). He is also a popular innovation speaker and business advisor.

Freedom Can Limit Innovation

GUEST POST from Stephen Shapiro

Over the past couple of weeks, I have had the identical conversation with several different clients. Apparently, there is an existing belief that if you want to instill a mindset of creativity, you need to have less “structure.” To some degree that is true. But unfortunately, most companies, when undergoing this kind of change, swing too radically to the other side.

One company that has been autocratic for decades now wants to be more innovative. Their belief is that they can accomplish this by letting people do what they want to do, in turn, enhancing their competitive position.

Another organization wants it’s employees to be more creative. They are now encouraging people to “think outside the box” while giving them minimal constraints.

In both of these cases, the company is going from a highly structured and bureaucratic approach to one that is a bit of a free-for-all. Sadly, and often surprisingly, swinging the pendulum that far in the other direction might also kill creativity and innovation.

To illustrate this point, there is an exercise I conduct with my clients that is simple yet powerful. I won’t go into all of the details here as I describe it in my new book, Best Practices Are Stupid: 40 Ways to Out-Innovate the Competition. But here’s a short version…

Exercise #1: People are asked to list a number of ways in which they can use a brick. They are given no restrictions (unbounded). I give them about a minute. Typical answers involve using it as a paperweight, a door stop, or a weapon.

Exercise #2: Then they are asked to identify something random (e.g., on the body, in the kitchen, in a marriage) and are to find all of the uses of a brick for that. For example, if “a kitchen” were the random context, people might find uses like heating it up to make paninis, flattening a lump of dough, or using it as a trivet.

When I ask groups which approach – #1 (unbounded) or #2 (connecting to something random) – yields more creative solutions, nearly 90% of audiences choose the second way. In fact, when we take the time to evaluate the uses, there is indeed much greater divergence when using the second method. The first approach tends to yield a lot of common solutions.

In some respects, this seems counterintuitive. By bounding people we actually increase creativity.

How can this be applied in a business setting?

A client, in an attempt to expand, is always looking at ways to branch into new markets. To accomplish this, they used to ask employees the unbounded question, “How can we adapt our (commodity) product to new markets?” Unfortunately they found that most suggestions were mundane. Therefore, as a way of increasing their level of creativity, they created a list of 200 different industries/roles (one for each business day of the year) and posted it on their wall. Each day management chose a different industry/role from the list (e.g., toll booth collectors, nurses/healthcare, or librarians) and used that to brainstorm new opportunities for their product for that industry/role. They found that they generated greater insights when bounding the conversation around a specific market segment.

In this case, more structure increased creativity.

The same is true when it comes to organization structures. For this, I use jazz and classical music as the metaphors.

Most organizations, in the past, have been designed like classical symphonies. Large compositions (processes, policies and procedures) where employees were expected to perform rote, note by note, exactly as written. There was very little room for creativity or improvisation.

But some organizations, in their attempt to increase their level of innovation, have decided to throw out all structures. Power to the people. However this leads to chaos, not innovation. There is no coordination between individuals or groups. The level of work redundancy is high. And the level of collaboration is low. If you brought together a bunch of musicians and didn’t give them any structure, they would not be able to play anything that resembles music.

Therefore, organizations would better benefit by structuring themselves like jazz music. Jazz is not random. There is a simple structure – like a 12 bar B flat blues – that enables the musicians to collaborate and play together while improvising their own parts. Adding structure, in this case, allows innovation to emerge in the moment when it is needed most.

Although it might be tempting to throw structure out the window in the name of innovation, this may kill the very thing you want. Paradoxically, more structure often leads to greater innovation.

P.S. The brick exercise, as it is described in Best Practices Are Stupid, makes several other important points on innovation and breakthrough thinking.

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Innovation, Invention, Creativity and Artistry are not the same

GUEST POST from Stephen Shapiro

Last night I was at an event where I woman said, “I want to get in touch with my creativity. I used to paint and play music, but no longer do that.”

This got me thinking about how we throw around a lot of terms with no real clarity around what they mean.

Here are four terms that people use interchangeably.

  1. Invention, from my perspective, invention is the creation of something that previously was not in existence. The focus is not on commercial value but rather on novelty.
  2. Innovation, on the other hand, is an end-to-end process that starts with a specific problem, challenge or opportunity and results in commercial value (however that is defined for the organization).
  3. Creativity is one step in the innovation process. When you have a defined problem/opportunity, creativity is the act of finding a solution.
  4. Artistic endeavors are things like music, painting, and photography. There may be commercial value. But the primary focus is often on the experience.

You might think I am splitting hairs discussing the differences between these terms. But language is important to any culture. And distinguishing these words can be quite useful in helping an organization grow.

Commercial organizations (including non-profits) really want innovation. Putting people through creativity training is interesting, but if the resulting solutions are not relevant to needs or are not ultimately implemented, there is no point. In fact, it can create extra work that detracts from the real opportunities.

Invention can be great. But I know a lot of broke inventors. Developing something new does not mean there is a market need.

Equally, I know a lot of great artists who never want to “sell out” and as a result are struggling to get by.

Innovation is the key. The resulting change does not need to be radical, it only needs to be relevant to the needs of the market. It does not need to be fancy, as long as the solution is commercially viable an implementable.

Getting clear on these distinctions can help you focus your energies on what matters most.

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New School is Old School

GUEST POST from Stephen Shapiro

I just finished reading a mindless crime novel* – my favorite genre of book. The victim was the producer of an old television series who recently sold the rights to do a remake of the show.

Fans were outraged. Most were purists who liked the original version and would do anything to prevent the new show…including kill the producer.

The producer of the remake defended the decision to do a new version of an old show. He said…

“New school is old school. It’s too risky for the networks and for the audiences. People are much more comfortable with the familiar. Re-imagination is the new new.”

Basically he is suggesting that “re-imagining” something old is the latest way to innovate.

But is it? Is “re-imagining” the same as innovation?

  • Is remaking a classic television show innovative? “The Twilight Zone” remake, “Star Trek: The Next Generation,” or “America’s Got Talent” (a re-imagination of the “Gong Show”).
  • Is remaking an old song with a new interpretation innovative? Jimi Hendrix covering Bob Dylan’s “All Along The Watchtower” is a classic example.
  • What about sampling an old song in a new song? Eminem sampled Dido’s “Thank You” in his rap, “Stan.” Vanilla Ice sampled Queen’s “Under Pressure” in “Ice Ice Baby.”
  • What about TV spin-offs such as “The Jeffersons” (an “All in the Family” spin-off), “Frasier” (a “Cheers” spin-off), or “Mork and Mindy” (a “Happy Days” spin-off)?
  • Are movie sequels such Hangover 2 (which is awesome, by the way), Father of the Bride 15, or The Fockers movies, innovative?

You get the idea.

Many would argue that these are NOT great examples of innovation. But I beg to differ. Although they may not all be wildly original, that does not mean that they are not innovative.

Innovation is developing anything new that creates substantial value. It does not need to be original or even creative in order for it to be innovative.

If a remake, re-sample, spin-off, or sequel can generate profits, then from my perspective, it is innovative.

It takes innovation to adapt something old to new tastes. It takes creative thinking to develop sequels and spin-offs that are as good as (if not better than) the original. It takes marketing savvy to convince people that they should spend their time and money on something that they have seen before (albeit in another form).

From my perspective, re-imagining is definitely a form of innovation – as long as it creates the intended value.

But of course, not all innovation is simply revamping the old. Adaptive innovation is only one form of innovation.

And equally important: innovation is more than creating a single hit. You need to do it over and over again. Repeatability is key. If you only re-imagine the old, at some point you will run out of ideas.

* Mr. Monk in Outer Space by Lee Goldberg. This book series is a re-imagination of the TV show “Monk.”

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Should You Fish for Innovations or Catch Them?

GUEST POST from Stephen Shapiro

On talk radio the other day, they were discussing the fishing industry. The conversation centered on how certain types of much more popular than others. I not sure of the specifics, but I think salmon, tuna, and sea bass are the hot fish.

Most consumers, when they go to the supermarket, ask for those specific fish. They have a recipe in mind and want to cook that. It was suggested that it would be better if people asked the “freshest” catch instead.

From their perspective, there are two reasons why requesting the freshest catch is good idea. The obvious reason is that the fish will most likely be tastier.

But there was a bigger reason; one that is critical to the industry.

If people stop asking for specific fish, it would allow fishermen to “catch” rather than “fish.”

The distinction might seem subtle, but it is important.

Fishing means you target specific fish, even if they are not plentiful or fresh.

On the other hand, catching means you get what you get; whatever is plentiful and ready to be caught. From an industry perspective, this is preferred. It prevents over-catching of popular fish and helps the industry survive.

This got me thinking about innovation.

What is better: catching or fishing for innovations?

Although catching might be better for the fishing industry, fishing is better for the innovation industry.

When you “catch,” you tend to innovate around your capabilities (what you do well), what you do today, or what feels right. This is not a good strategy. If you do this, your innovations will not be grounded in what the market desires.

According to an Accenture study of executives in 639 companies, the number one reason for innovation failure was that their products and services “failed to meet customer needs.”

Your innovations need to be relevant to the needs of the marketplace.

Therefore, “fishing” for solutions that meet consumer needs it a more powerful strategy. Innovating on what is “important” helps focus your efforts, ensures relevance of solutions, and increases your overall capacity to innovate.

So, although the “catch of the day” might be a good strategy for selecting your dinner, using this as an innovation strategy might leave you with a lot of unpopular (and unsold) solutions.

P.S. For those of you who fish, if I got the distinction backwards, please don’t shoot me… I’m running from my recollection of the radio broadcast.

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Insider's View on Microwork and a Sample Output

GUEST POST from Stephen Shapiro

As readers of this blog know, I am always interested in exploring different forms of open innovation, collaboration, and outsourcing. Personally, I have used a number of sites including 99designs.com and elance.com. I have used these for the development of logos, graphics, websites, and research. In most cases I would pay several hundred dollars for the work.

An interesting trend has emerged: microwork outsourcing. This is work that can be completed in a matter of minutes and costs only a few dollars.

My favorite microwork website is fiverr.com. Here you can hire people to do lots of things for only $5. I saw that someone offered to write an article for only $5, so I hired her to write an article on innovation. I was impressed with how she could pull together something of high quality so quickly.

This got me wondering: Can she make a living at $5 a time? How long does it take to complete a $5 job? And why do it at all?

So I invested another $5 and hired her to write another article. But instead of writing about innovation, I had her answer five questions about her experience on fiverr.

1. How did you write an article on a topic you don’t know so quickly…and for only $5?

Coming up with methods that businesses can use for innovation and creativity actually is something that I know very well. As an ex-model turned writer/teacher/businesswoman, I try to incorporate as much creativity into my life as possible. None of my income would be possible without a high respect for imagination. As a business owner, I realized quickly that low prices sell large amounts of goods, and it also is a very decent gig for me. Eventually, I will raise my prices, but not yet.

2. Why do you sell your services on Fiverr, when you could probably make more money per gig on sites like eLance?

Actually, I tried eLance, but never quite seemed to get any jobs off it. The minute that I tried Fiverr, I managed to get a gig in the first day. When people actually noticed that my work is decent, the orders poured in.

3. Is there enough money to be made doing micro work? Or do you do this for some pocket money? How many gigs can you possibly do in one day?

I do up to 30 gigs in one day. Microwork can be a decent way to make money, but I think having a part time job is also a smart idea. I like a balance of work.

4. How much time do you spend, on average, for each gig? I was impressed with the article you wrote on innovation.

Depending on how much research I do for the gig, I can spend anywhere from 10 minutes to an hour or so (when I decide to watch TV or eat while working). My typing speed is notoriously speedy, so doing research and actually just compiling my thoughts coherently are the bulk of time spent on each gig.

5. Anything else you I should know about you?

Because of the extreme injustices that have happened to me as an inexperienced model, I have recently taken up advocating for women’s rights, as well as model’s rights. One of my photographers gave me a website which I update with my own blogs about various subjects that I feel are important to women, men, and everyone in that industry. I don’t think that many people realize how corrupt, how sick, and how twisted the world of modeling has become. This is the reason why I warn my students’ parents against getting their children involved in child modeling, and also warn young teenagers who want to follow in my footsteps about the dangers of being a model.

Conclusion AND the Article I Got for $5

All forms of open innovation, crowdsourcing, outsourcing and microwork are evolving. They are redefining what “work” means for individuals and is creating new career models. It provides exciting opportunities for both the buyer and the service provider.

Now, as promised, here is the article on innovation she wrote for $5. Not bad, if you want my two cents…

Five Ways To Make Your Company More Innovative

Innovation is one of the most important things to keep constant in your company. Without new ideas, it’s impossible to stay ahead of the business curve. For a good example of what innovative staff can create, look at businesses like Google or Apple. Both are innovative companies, and both are extremely profitable. It’s easy to see why you should encourage innovation in your staff as a business owner.

1. Hire innovative and creative people for your company.

If you continually hire people who lack creativity, or even a spark of passion for working in your business field, you aren’t going to get people who are going to be innovative. When you need to hire an intern, look for an intern who has a lot to say about what the company should do, as well as being able to help out around the office. By hiring people specifically because they are creative, you will create an atmosphere that promotes new ideas.

2. Offer rewards or bonuses for employees who come up with imaginative solutions to normal problems.

Giving people an incentive to “think outside the box” is one of the quickest ways to get employees motivated to start thinking differently. If you need to be blunt, tell them flatly, “Any time that you think to yourself, ‘I wish our product had this feature,’ tell us. If it’s a good idea, we’ll pay you a bonus.”

3. Take half an hour to an hour every week to come up with new ideas.

Call it a creativity break, call it a brainstorm, but meeting up with employees every week for the sole purpose of figuring out innovative solutions to all sorts of problems is a great way to get the wheels turning. Some businesses even take time off to let their employees partake in creative exercises such as painting in order to boost employee imagination in other realms of work. Moreover, these meetings offer a great opportunity for employees to prove their creative abilities to higher ups.

4. Even if the idea is downright awful, do not overly criticize or embarrass the employee who suggests it.

In order to encourage others to share ideas, it’s crucial to avoid making employees regret presenting their ideas. No matter how bad the idea may be, thank them for their input, and encourage everyone to contribute their ideas to the table. Embarrassing one employee will make others think twice about sharing any ideas with you.

5. Keep staff up to date on what other companies are creating.

Sometimes, reading a news article about the latest app to hit the market, or a new method of marketing is all that a person needs to jog their creative streak. Keeping staff updated on the latest in your business also will provide the added advantage of more knowledgeable staff on all levels of your business. Encourage your staff to come up with similar ideas every time you forward them an article. Talk about your business field, and keep them engaged. The more they think about the field they work in, the more likely it is that they will come up with a brilliant innovation that can turn into huge profit.

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It is Okay to Marry Your Work (Part 2)

GUEST POST from Stephen Shapiro

Last week I wrote an article for American Express about marrying your work. Unlike the “ball and chain” picture that tends to pop into our heads, I espoused the merits of loving your job, just like you would marry a spouse you love. Be sure to read that article before reading on. I’ll wait.

OK, now that you read the first part, here is, as Paul Harvey would say, the rest of the story…

I’m on vacation this week in Mexico and I just had an epiphany.

Tonight while cooking up some steaks on the barbeque, I looked through the window and saw everyone else on their computers working. In fact, all day long while I relaxed in the pool with my Kindle, everyone else was busy working away.

Admitted, I work a lot, but I love what I do. I truly do. Regardless, I have not taken a “real” vacation in 2.5 years and I work 80+ hours a week. I use this “dedication” as a badge of honor.

But tonight, while watching everyone work while vacationing in paradise, I realized something important.

You can be married to someone, yet not spend 24 hours a day with them. The best relationships are often those where each individual has their own life in addition to their marriage.

Kahlil Gibran’s “The Prophet” is one of my favorite books. In his poem “On Marriage,” he so beautifully says:

“Love one another, but make not a bond of love:
Let it rather be a moving sea between the shores of your souls.
Fill each other’s cup but drink not from one cup.
Give one another of your bread but eat not from the same loaf.
Sing and dance together and be joyous, but let each one of you be alone.
Even as the strings of a lute are alone though they quiver with the same music.”

For me, this always described the ideal relationship. A deep closeness that is not TOO close. There is space.

Last night I reread the poem through the lens of “marrying your work,” and it took on a whole new meaning.

You can love your work. In fact, you can be married to your work. This is a good thing.

But just as you do not need to be with your spouse 24 hours a day, you don’t need to be with your work around the clock.

Okay, now I need to get back to my vacation…

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Why We Crave Goals

GUEST POST from Stephen Shapiro

As many of you may know, my second book was called Goal-Free Living. Although it was originally going to be a book on how to be more creative, it morphed into a manifesto for a counter-cultural way of living.

In fact, the “goal-free” philosophy will be featured in a major newspaper early next year. Stay tuned for that.

Someone once asked me why people crave goals. It is a hard question to answer. But an interesting point of view was sent to me by Antony Woods from Australia, and I wanted to share it with you…

He quotes a renowned 20th Century Burmese Meditation Master:

“The fourth protection for your psychological benefit is to reflect on the phenomenon of ever-approaching death. Buddhist teachings stress that life is uncertain, but death is certain; life is precarious but death is sure. Life has death as its goal. There is birth, disease, suffering, old age, and eventually, death. These are all aspects of the process of existence.”

From: Practical Vipassana Meditation Exercises by Mahasi Sayadaw

Antony then suggested that “people often set goals for their lives assuming that they won’t die in the foreseeable future. They assume that the New Year will come, tomorrow will come etc. The only thing one knows that is coming is death, but one doesn’t know when. Rather than thinking “death, death, death,” reflection helps one to appreciate the duration of each breath and have a playful, tentative and pragmatic attitude about the future. I reckon this is what Goal-Free Living is all about.”

Interesting thing to consider as we get ready for New Year’s Eve and the goal-setting ritual known as “resolutions.”

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Why Change is Hard

GUEST POST from Stephen Shapiro

I am someone who loves change. In fact I sometimes change things simply for change sake.

But I recently learned a powerful lesson on why change is difficult, even for someone like me who loves to stir things up.

I bought a MacBook Pro a few weeks ago. Friends have been prodding me to buy Apple after a number of technical issues with my Windows-based machine.

I have to admit, I really liked my PC. But for a variety of reasons, it was time for a change.

I was excited. As I said, I love change.

But what I discovered quickly was that I did not love my Mac.

To be clear, there is nothing inherently wrong with my Mac. It is just different than Windows. I am so used to my old PC that I could do things so quickly with hotkeys. From my perspective, nearly everything was intuitive on the PC while the Mac just doesn’t make sense to me.

My productivity diminished significantly since the switch. Last week I seriously considered loading Windows on my Mac via bootcamp. This would turn my Mac hardware into a PC. I was finding my new operating system and software too difficult to learn.

And then it dawned on me. I was resisting change, the way most people do.

It is not that Windows is better. It’s just different. The more I use my Mac, the more I get used to it. I am assured by most people that Mac is indeed a better solution.

And this is what happens inside of organizations. We resist change not because the old way is better. We resist change because the effort it takes to do things differently is difficult. It takes time. It takes patience. It takes breaking old habits and learning new ones.

The “culture” of an organization is much like the operating system of a computer. Maybe you have a PC culture today but want a Mac culture. There are things that everyone will need to learn. And everyone will have to believe the the switch is valuable enough to justify the effort.

If they don’t see the reason for the change, they will do what I did…revert to old habits and find ways of circumventing the system. Much like my running Windows on a Mac.

In the end I did not install Windows on my machine. I decided to really dive in and learn the new operating system. I am convinced that in the long run, this will be a better solution.

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How to Motivate Innovators

GUEST POST from Stephen Shapiro

Organizations use a variety of tools to motivate employees to participate in their innovation efforts.

The most common form of motivation involves compensation via a points system. When you contribute an idea, solution, comment or vote, you get points – much like American Express Membership Rewards points – that can be used to buy a variety of items: company T-shirts, mugs, and other “exciting” things. For some reason this reminds me of the arcade games like skeeball where you would win tickets that could be exchanged for wonderful items like fake vampire fangs or rubber spiders.

Some companies have taken the concept a bit further and allowed people to accumulate points that can be used in auctions. Once a month the company holds an auction for a trip to, say, Tahiti. Anyone with points can join the bidding. This encourages people to earn and save as many points as possible so that they can have a chance at some really big prizes. This supposedly stimulates contributions to innovation.

A third model that doesn’t necessarily need a points system involves “priceless” awards. Remember the Mastercard commercials? These are items that you can’t buy with money: dinner with the CEO, a prime parking space or an extra week of vacation. These types of prizes are particularly enticing because no amount of money can buy them

The thing that these three models have in common is that the prize is tangible. Some might call it an extrinsic form of motivation. Chip Conley, author of Peak, might point out that these are the lowest rung of motivations on Maslow’s hierarchy of needs: food and shelter/safety and security.

There is an opportunity for other, potentially more effective forms of motivation.

At the highest level of Maslow’s hierarchy (going back to Conley’s concept), you will find self-actualization. In the innovation/business world, this is where “the work is its own reward.” The open source software movement was largely built on this model. Millions of people have helped develop software without any formal extrinsic compensation. Many do it just because it feels good to contribute. For some, it is about building software that will bring down the “evil empire” (aka Microsoft).

Although this is an incredibly effective motivator for many, this is difficult to put into practice inside of a “typical” organization. Ok, when I worked for a Formula 1 team, people there truly love their work because they were fans of the sport. But this is usually the exception, not the rule. At least from my experience.

Between food & shelter and self-actualization lies the most under-utilized form of motivation: peer recognition. This can be extremely effective, especially inside of organizations where “intelligence” is highly valued. Pharmaceutical companies, R&D departments, and NASA come to mind off the top of my head.

For some individuals, being recognized by their peers is the highest form of motivation. In come circles, being published in a peer reviewed journal is an incredible honor.

Therefore find ways of recognizing people, especially when it involves peer recognition.

One way to do this if you use a points system like the ones described above, is to create a leader board. This creates a friendly competition and helps individuals stand out from the crowd based on their contributions.

Another approach, of course, is to develop a good recognition program as part of your communication plans. Many companies do this, but they rarely do it well. Here’s the real opportunity…

Stop recognizing people for doing their job. When you hire someone to work for you, it should be expected that they are competent. When you recognize people for doing what they are hired to do, it reinforces a “culture” where the status quo is good enough.

Instead, recognize (and reward) people for going beyond their job; for doing things that are unexpected.

If you want to encourage open innovation or cross-business unit collaboration, then recognize people for that. If you want employees to take risks, make a big deal out of individuals who do that. If you want to let people know that failure is ok – when done the right way – then promote situations where something didn’t work as planned yet powerful lessons were learned and risk was mitigated risk.

Define what your organization values and then reward on that.

Culture is sometimes defined as “a network of conversations.” What they say to each other and what they think to themselves. Shift the conversations and you begin to shift the culture. These types of programs are a great opportunity to create an environment of innovation and promote the values/conversations you want to instill.

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Do You Know Why You Are Successful…or Not?

GUEST POST from Stephen Shapiro

I just gave a presentation on “Happiness at Work” in Norway. I started with the following question:

“True or false – People with more money are happier.”

100% of the audience believed that the statement was false.

In reality, the statement is true. Researchers have shown that people with more money are happier.

When people hear this, they immediate assume that money makes people happy. That is NOT true.

The researchers found that money did not make people happy. Instead, happy people attracted wealth into their lives.

I was on a radio show recently and a woman cited a study that said:

“Women who wear lipstick make 80% more money than women who don’t.”

She used this as an example of why women should wear lipstick. She seemed to imply that if you wear lipstick, you will make more money.

But again, I am confident that the causation is backwards. Lipstick does not create wealth. Wealthy women are more naturally inclined to wear lipstick for a variety of reasons.

In business, it is equally important to differentiate correlation from causation.

Understanding what causes success – or failure – will help you in the future. Avoid making assumptions.

Did your marketing efforts truly increase sales? Did your 19th reorganization really improve performance? Did that consultant you hired really help you grow?

The next time an innovation consultant tells you that their clients increased revenues/improved performance after hiring them, be a bit skeptical. Maybe the consultant didn’t improve the business. Maybe businesses that can afford to hire high priced consultants are already better positioned for growth and would have improved anyway.

Hmmm…if my innovation consulting business drops off in the near future, I will simply assume that this article was the cause.

P.S. The happiness study is this: Sonja Lyubomirsky, a psychologist at U Cal Riverside, who looked at the correlation between happiness and success. She observed that, “Happy people were not necessarily happier after their success than they were before, but they tended to be happier than others who were less successful.” Her conclusion? “Success is related to happiness – but as a consequence, not a cause, of mood…happy people have other personality traits that facilitate success.”

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