Category Archives: collaboration

Five Keys to Company Longevity

Five Keys to Company Longevity

GUEST POST from Robyn Bolton

The quest for immortality is as old as humankind.  From King Gilgamesh in 2100 BCE to Jeff Bezos and Larry Page, the only thing that stops our pursuit of longevity is death.   So why don’t we apply this same verve and vigor to building things that last forever?  Why don’t we invest in corporate longevity?

Consider this—in the last 80 years, human life expectancy increased by almost 30% while corporate life expectancy declined by almost 500%. Other research indicates that the average company’s lifespan on the S&P 500 Index dropped from 60 years in 1960 to just under 15 years in 2024.

We spend billions on products to slow, stop, and even reverse aging. Yet, according to the New York Times, there are just seven keys to living longer.

Could achieving corporate longevity possibly be just as simple?

Yes.

Here are five keys to corporate longevity.

1. Take care of yourself today AND invest for tomorrow

We all know what we should do to stay healthy.  But one night, you don’t sleep well, and hearing your 5:00 am alarm is physically painful.  What harm is there in skipping just one workout? At work, you had a bad quarter, so cutting the research project or laying off the innovation team seems necessary.  After all, if you don’t save today, there won’t be a tomorrow, right?

Right.  But skipping workouts becomes a habit that can bring your retirement plans crashing down.   Just like cutting investments in R&D, innovation, and next-gen talent makes keeping up with, adapting, and growing in a rapidly changing world impossible.

2. Build and nurture relationships.  Inside AND outside your company

According to the Harvard Study of Adult Development, strong relationships lead to happier and healthier lives and are the biggest predictor of well-being.  Turns out relationships are also good for business.

Strategic alliances and partnerships directly grow revenue.  For example, 95% of Microsoft’s commercial revenue comes from its partner ecosystem. Starbucks’ collaboration with Nestle allowed the coffee chain to expand its presence in people’s lives while Nestle gained access to a growing category without the cost of building its own brand.  There’s a reason that Andreessen Horowitz declared partnerships a “need to have” in today’s world.

3. Everything in moderation

Toddlers are the only people more distracted by shiny objects than executives.  Total Quality Management.  Yes, please.  Disruptive Innovation.  Absolutely.  Agile.  Thank you, I’ll take two.

Chasing new ideas isn’t wrong. It’s how you chase them that’s dangerous. Uprooting your existing processes and forcing everyone to immediately adopt Agile is the corporate equivalent of a starvation diet. You’ll see immediate improvements, but long-term, you’ll end up worse off.

4. Eliminate bad habits (and bad people)

“The culture of any organization is shaped by the worse behavior the leader is willing to tolerate.”

Read that again.  Slowly. 

To live longer, stop engaging in, tolerating, and justifying bad habits.  To make your company live longer, stop tolerating and justifying people and behaviors that contradict your company’s culture.  Eliminating bad behavior is tough, but it’s the only way to get to your goal.  In life and in business.

5. Rest

Getting 7-8 hours of sleep a night adds years to your life.  Less than five hours doubles your dementia risk.  More sleep also boosts your productivity and creativity at work.

The latest example of rest’s power is the four-day workweek.  In 2022, 61 UK companies adopted it without any changes in pay.  Two years later, 54 still have the policy, and over 30 made it permanent.  Other companies, like Microsoft in Japan, reported productivity increases of more than 40%.

What will you unlock with these keys?

As a leader, you have the power to build a legacy and a company that thrives for generations.  But that only happens if you channel the same energy into achieving corporate longevity that you put into pursuing a longer, healthier life.

By embracing the keys of corporate longevity—caring for today while investing in tomorrow, nurturing relationships, practicing moderation, eliminating bad habits, and prioritizing rest—you’ll build businesses that endure.

The journey to corporate immortality starts with a single step. What’s yours?

Image credit: Pixabay

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Who Are the Most Important People in Your Company?

Who Are the Most Important People in Your Company?

GUEST POST from Mike Shipulski

When the fate of your company rests on a single project, who are the three people you’d tap to drag that pivotal project over the finish line? And to sharpen it further, ask yourself “Who do I want to lead the project that will save the company?” You now have a list of the three most important people in your company. Or, if you answered the second question, you now have the name of the most important person in your company.

The most important person in your company is the person that drags the most important projects over the finish line. Full stop.

When the project is on the line, the CEO doesn’t matter; the General Manager doesn’t matter; the Business Leader doesn’t matter. The person that matters most is the Project Manager. And the second and third most important people are the two people that the Project Manager relies on.

Don’t believe that? Well, take a bite of this. If the project fails, the product doesn’t sell. And if the product doesn’t sell, the revenue doesn’t come. And if the revenue doesn’t come, it’s game over. Regardless of how hard the CEO pulls, the product doesn’t launch, the revenue doesn’t come, and the company dies. Regardless of how angry the GM gets, without a product launch, there’s no revenue, and it’s lights out. And regardless of the Business Leader’s cajoling, the project doesn’t cross the finish line unless the Project Manager makes it happen.

The CEO can’t launch the product. The GM can’t launch the product. The Business Leader can’t launch the product. Stop for a minute and let that sink in. Now, go back to those three sentences and read them out loud. No, really, read them out loud. I’ll wait.

When the wheels fall off a project, the CEO can’t put them back on. Only a special Project Manager can do that.

There are tools for project management, there are degrees in project management, and there are certifications for project management. But all that is meaningless because project management is alchemy.

Degrees don’t matter. What matters is that you’ve taken over a poorly run project, turned it on its head, and dragged it across the line. What matters is you’ve run a project that was poorly defined, poorly staffed, and poorly funded and brought it home kicking and screaming. What matters is you’ve landed a project successfully when two of three engines were on fire. (Belly landings count.) What matters is that you vehemently dismiss the continuous improvement community on the grounds there can be no best practice for a project that creates something that’s new to the world. What matters is that you can feel the critical path in your chest. What matters is that you’ve sprinted toward the scariest projects and people followed you. And what matters most is they’ll follow you again.

Project Managers have won the hearts and minds of the project team.

The Project manager knows what the team needs and provides it before the team needs it. And when an unplanned need arises, like it always does, the project manager begs, borrows, and steals to secure what the team needs. And when they can’t get what’s needed, they apologize to the team, re-plan the project, reset the completion date, and deliver the bad news to those that don’t want to hear it.

If the General Manager says the project will be done in three months and the Project Manager thinks otherwise, put your money on the Project Manager.

Project Managers aren’t at the top of the org chart, but we punch above our weight. We’ve earned the trust and respect of most everyone. We aren’t liked by everyone, but we’re trusted by all. And we’re not always understood, but everyone knows our intentions are good. And when we ask for help, people drop what they’re doing and pitch in. In fact, they line up to help. They line up because we’ve gone out of our way to help them over the last decade. And they line up to help because we’ve put it on the table.

Whether it’s IoT, Digital Strategy, Industry 4.0, top-line growth, recurring revenue, new business models, or happier customers, it’s all about the projects. None of this is possible without projects. And the keystone of successful projects? You guessed it. Project Managers.

Image credit: Unsplash

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The Coming Leadership Confidence Crisis

Executive Trust in Their Teams is Plummeting – Here is How to Rebuild It

The Coming Leadership Confidence Crisis

GUEST POST from Robyn Bolton

“Trust no one.  Suspect everyone.”  Great advice if you’re an MI6 agent trying to uncover a spy at the height of the Cold War.  Not great advice if you’re a senior executive responsible for leading a team to deliver record results.  So, when a report titled “Leadership Confidence Falls to Three-Year Low” was published, I hoped it was clickbait.  So I clicked.

Things only got worse.

While two-thirds of CEOs believe that their teams role model the right culture and behaviors, work together effectively as a team, and effectively embrace change, everyone else disagrees.  Only about half the C-suite believes their teams work together well, are role models, and embrace change.  The lower in the organization you go, the lower those percentages get.

Why confidence is at an all-time low

In a word – change.  Neither humans nor financial markets like change, and that’s all we’ve experienced for the past four years.  “From the conflicts in Ukraine and the Middle East and their destabilizing effects on the world, to inflation, rising interest rates, and the launch of ChatGPT igniting massive interest in generative AI, the leadership landscape has been far from quiet. What’s more, nearly half of the world’s population is set to head to the polls for what many are calling a ‘super election year.’”

None of this is the executive team’s fault, but the relentless nature of depressing and destabilizing news wears everyone down.  As a result, people have less patience and empathy and are quicker to anger, judge, and blame others.  Senior execs are people, too.  And they’re taking their exhaustion out on the people they spend the most time with – their teams.

What you can do about it

If you have the power to stop the wars, improve the financial markets, quell GenAI fears, and ensure that democracy reigns, please use that power now. (Also, what have you been waiting for?)

If you do not have such powers, there is still something you can do: Build trust.

Researchers found that leaders of high-performing organizations are 8x more likely to feel that their teams practice and role model high levels of trust in all their interactions across the organization. But the teams won’t practice and role model trust if you don’t set the example through:

  1. Inclusive, transparent, and vulnerable communication – Most of us grew up in cultures where information is power, so it is hard to build a habit of sharing information with everyone on the team, especially if it isn’t good news. But if you want your people to work together as a team, you can’t create cliques or pick and choose the information you share.  There is no trust where there are Haves and Have Nots.
  2. Lead by listening and collaborating – In case you haven’t noticed, command and control styles of management don’t work anymore.  The people on your teams are experienced adults with good ideas.  Treat them like adults, value their experience, and listen to their ideas.  You’ll be pleasantly surprised by what you hear and earn.
  3. Be consistent – If one of the causes of the problem is change and you want to be part of the solution, do the opposite – be consistent.  Yes, things can change, but who you are, the values you role model, and how you treat people shouldn’t.  When things change (and they will), remember that decisions made with data should only be unmade with data.  Then, communicate those changes broadly, transparently, and honestly (see #1)

What will you do about it?

Rebuilding trust within your team isn’t a quick fix; it’s an ongoing process that requires commitment and consistency. By being transparent, authentic, and reliable, fostering open communication, and empowering your team, you can create a high-trust environment that drives success.

What steps are you taking to (re)build trust within your teams? Share your thoughts and let’s navigate this journey together. Remember, trust is the glue that holds your team together and propels your organization forward.

Image credit: Pixabay

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Adjacent Innovation is the Key to Growth and Risk

Adjacent Innovation is the Key to Growth and Risk

GUEST POST from Robyn Bolton

It’s not easy leading innovation.  Especially these days.  You need to do more with less.  Take risks while guaranteeing results.  Keep up with competition through incremental innovation and redefine the industry with radical and disruptive innovation.  It’s maddening.  Until you find the Goldilocks Zone of adjacent innovation.

Adjacent Innovation: From Middle Child to Just Right

As HBS Professor Regina E. Herzlinger and her co-authors point out in a recent HBR article, the US is in the midst of an innovation crisis. The cost of lost productivity, estimated at over $10 trillion between 2006 and 2018, is a stark reminder of the economic consequences of a lack of innovation. This figure, equivalent to $95,000 per US worker, should serve as a wake-up call to the importance of innovation in driving economic growth.

The authors identify the root cause of this loss as the ‘polarized approach companies take to innovation.’ While companies focus on incremental innovation, the safe and reliable oldest child of the innovation family, the Venture Captialists chase after radical, transformative innovations, the wild, charismatic, free-spirited youngest child.  Meanwhile, adjacent innovation – new offerings and business models for existing customers or new customers for existing offerings and business models – is, like the middle child, too often overlooked.

It’s time to rediscover it.  In fact, it’s also time to embrace and pursue it as the most promising path back to growth.   While incremental innovation is safe and reliable, it’s also the equivalent of cold porridge. Radical or transformative innovation is sexy, but, like hot porridge, it’s more likely to scorch than sustain you. Adjacent innovation, however, is just right – daring enough to change the game and leapfrog the competition and safe enough to merit investment and generate short-term growth.

Proof in the Porridge: 4x the returns in HALF the time

Last year, I worked with an industrial goods company. Their products aren’t sexy, and their brands are far from household names, but they make the things that make America run and keep workers (and the public) safe. The pandemic’s supply chain disruptions battered their business, and their backlog ballooned from weeks to months and even years.  Yet amidst these challenges, they continued to look ahead, and what they saw was a $6M revenue cliff that had to be filled in three years and a product and innovation pipeline covered in dust and cobwebs.

From Day 1, we agreed to focus on adjacent innovation.  For four weeks, we brainstormed, interviewed customers, and analyzed their existing offerings and capabilities, ultimately developing three concepts – two new products for existing customers and one existing product repositioned to serve a new customer.  After eight more weeks of work, we had gathered enough data to reject one of the concepts and double down on the other two.  Three months later, the teams had developed business cases to support piloting two of the concepts.

It took six months to go from a blank piece of paper to pilot approval.

It took just another 12 months to record nearly $25M in new revenue.

Those results are more than “just right.”

Be Goldilocks. Pursue Adjacent Innovation

Every organization can pursue adjacent innovation.  In fact, most of the companies we consider amongst the world’s “Most Innovative” have that reputation because of adjacent innovation. 

How will you become your organization’s Innovation Goldilocks and use adjacent innovation to create “just right” growth?

Image credit: Pixabay

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What is Your Purpose?

What is Your Purpose?

GUEST POST from Robyn Bolton

Purpose.  Goal.  Mission.  You hear these words a lot this time of year.  Not because it’s the start of the annual business planning cycle but because it’s graduation season. 

Across the country, commencement speakers and wise family members espouse the importance of having a purpose to guide and sustain graduates as they set out on their next adventures.

All the talk of purpose can feel overwhelming, especially as you listen to graduates’ wide-eyed optimism about how they will change the world while stewing in an existential crisis that makes you wonder if you even have a purpose.

You do.

And part of that purpose is finding and creating purpose.

What is “Purpose?’

Purpose hasn’t reached buzzword status, but it’s close, so let’s start with a definition, or three, courtesy of The Britannica Dictionary:

  1. the reason why something is done or used: the aim or intention of something – The purpose of innovation is to create value
  2. the feeling of being determined to do or achieve something – The team worked with purpose
  3. the aim or goal of a person: what a person is trying to do, become, etc. – He knew from a young age that her sole purpose in life was to be an orthodontist

Three different definitions of purpose.  Three questions that it’s part of your purpose to ask.

“What’s THE purpose?”

Innovation is all about creating value.  Sometimes, to create value, you need to do new things.  Sometimes, you need to stop doing things.  It’s hard to tell the difference if you don’t ask.

That’s why innovative leaders are curious.  You aren’t afraid to ask, “What’s the purpose of this product/process/meeting/decision/(fill in the blank).”  You want to know “why something is done or used,” and they know that the best way to figure that out is by asking.

You ask this question at least once a day.  When you ask it, you’re genuinely curious about the answer.  After all, we’ve all experienced people and cultures that weaponize questions – “Johnny, is that where the scissors go?” or “Why did you think that was a good idea?” – and you reassure people that you’re asking a genuine question, even if they should know that by your tone.

“What’s OUR purpose?”

Innovation is hard.  You live in ambiguity and uncertainty.  You fail (learn) more often than you succeed.  You are told “No” and “Stop” more than “Yes,” “Keep going,” and “Thank You.”

Innovators are courageous.  You do the hard work of innovation because you are “determined to do or achieve something.” 

You also know that sustaining courage and purpose requires a team. 

You aren’t fooled by the myth of the lone genius. After all, Thomas Edison worked with as many as 200 people in his West Orange lab. Heck, even Steve Jobs needed Sir Jony Ive (and a few hundred other people) to bring his vision of “1,000 songs in your pocket” to life.

“What’s MY purpose?”

Innovation takes a long time.  Change happens gradually, then suddenly.  We chose to preserve what we have, rather than take a risk to get more.

Innovators are committed.  You are patient for change, steadfast in the face of resistance, and optimistic when others are afraid because of your “aim or goal…what [you are] trying to do, become, etc.” 

Even if you can’t articulate it in a grand statement or simple, pithy soundbite, you have a purpose.  As Viktor Frankl wrote, “Those who have a ‘why’ to live, can bear with almost any ‘how’.”

Three Purposes.  Three questions

Even if you lack the wide-eyed optimism of a new graduate and feel like you spend most days just muddling through life, because you are here, you have a purpose.  So tell me:

  1. When was the last time you were curious and asked, “What’s the purpose of (artifact of the status quo)?”
  2. When was the last time you were courageous and used your feeling of determination to inspire others to join your purpose, overcome obstacles, and get something done?
  3. When was the last time you had to dig deep, rediscover your purpose, and reinforce your commitment so that you could bear and overcome the “how?”

Image credit: Dall-E via Microsoft Bing

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Four Secrets of Building a Shared Team Identity

Four Secrets of Building a Shared Team Identity

GUEST POST from David Burkus

Creating shared identity on a team is crucial to building a high-performing one. Shared identity refers to the extent to which team members feel the same sense of who they are as a designated group. It indicates whether or not individual members truly feel like this is the team they’re a part of and most loyal to.

Decades of social science research have shown that individuals make sense of their world by applying categories and labels to their environment—including themselves and the people around them. “Team” is one such label, and it carries great importance, because when we identify with a particular group, that group shapes our own identity and behavior.

A strong shared identity on a team reduces conflict, standardizes norms of behavior, increases cohesion and collaboration, and ultimately enhances team performance. In this article, we will explore four key actions that leaders can take to foster a shared identity within their teams.

1. Start With Purpose

The first action in creating shared identity on a team is to start with purpose. Understanding the purpose of the team’s work and how it aligns with the organization’s mission is the first step in creating a shared identity. For most teams, this isn’t about restating or even remembering the larger organization’s mission statement. It’s about how their specific work relates to that overall mission. More importantly, it’s about who is positively affected by the team working well together.

One question to distill this “who” is simple, asking the team “Who is served by the work that we do?” By answering that, team members can gain a deeper understanding of the impact they have on the organization and the people they serve. And when team members recognize the significance of their contributions, they are more likely to feel motivated and engaged/ Identifying the specific group of people that benefit from the team’s performance allows team members to connect their work to real-world outcomes and identify with the team to realize those outcomes.

2. Build On Values

The second action in creating shared identity on a team is to build on values, meaning to determine the team’s specific values and how they want to treat each other. By identifying the values that the team wants to emphasize in their interactions, team members can establish a common set of principles to guide their behavior. Or as Seth Godin is fond of saying, it’s about emphasizing that “people like us, do things like this.”

The other benefit of discussing values is that it establishes the compromises that the team would never make in serving their purpose. By defining the non-negotiables, team members can align their actions and decisions with the team’s values. And as team members internalize those non-negotiables, they start to identify with the values underlying them and align their behavior accordingly. Not surprisingly, identifying more and more with those values helps them identify more strongly with the team that wrote them.

3. Focus On Goals

The third action in creating a sense of shared identity on a team is to focus on goals. By breaking down the team’s purpose and values into specific goals, team members can have a clear understanding of what they are working towards. These goals should be challenging yet achievable, providing team members with a sense of purpose and direction. Sometimes these goals, objectives, or key performance indicators are handed to the team from higher up in the organization. But even then, it’s important to have a team-wide discussion about the assignments and create milestones and sub-goals collectively to build a plan of action.

Setting the team’s goals for completion lays the groundwork for setting the individual goals team members will use to hold each other accountable. When team members have personal goals that contribute to the overall team goals, they are more likely to feel invested in the team’s success. And when those goals are achieved and celebrated, shared identity grows even more. By acknowledging and celebrating achievements, team members feel valued and recognized for their contributions. This fosters a sense of camaraderie and encourages continued collaboration and success.

4. Define Habits

The final action in creating a sense of shared identity is to define habits. Habits here means establishing norms and behaviors for communication and collaboration within the team. It’s about building group norms and expectations. Defining habits means agreeing to use certain communication tools and deciding how they will be utilized. By establishing guidelines for email, instant messaging, and other communication platforms, team members can ensure effective and efficient communication. This reduces misunderstandings and promotes collaboration.

Defining habits has a secondary benefit similar to building on values discussed above. As people share in the process of defining habits, they take greater ownership over the finished set of norms. And as their actions align more strongly with the group norms, their sense of identity with that team grows stronger as well. Overtime, they start to feel less like they act in a certain way because it was laid out in the group norms and more like they act a certain way because “that’s just what we do.” The “we” here being a short but strong signal of shared identity.

Creating shared identity on a team is crucial for achieving success. By starting with purpose, building on values, focusing on goals, and defining habits, leaders can foster a sense of belonging and connection among team members. This leads to a more focused, cohesive, and productive team. By implementing these four actions, leaders can create an environment where team members work together towards common goals and in pursuing those goals, do their best work ever.

Image credit: Unsplash

Originally published on DavidBurkus.com on July 24, 2023

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The Surprising Downside of Collaboration in Problem-Solving

The Surprising Downside of Collaboration in Problem-Solving

GUEST POST from Robyn Bolton

You are a natural-born problem solver.  From the moment you were born, you’ve solved problems.  Hungry?  Start crying.  Learning to walk?  Stand up, take a step, fall over, repeat.  Want to grow your business?  Fall in love with a problem, then solve it more delightfully than anyone else.

Did you notice the slight shift in how you solve problems?

Initially, you solved problems on your own.  As communication became easier, you started working with others.  Now, you instinctively collaborate to solve complex problems, assembling teams to tackle challenges together.

But research indicates your instincts are wrong.  In fact, while collaboration can be beneficial for gathering information, it hinders the process of developing innovative solutions. This counterintuitive finding has significant implications for how teams approach problem-solving.

What a Terrorism Study Reveals About Your Team

In a 2015 study, researchers used a simulation developed by the U.S. Department of Defense to examine how collaboration impacts the problem-solving process. 417 undergrads were randomly assigned to 16-person teams with varying levels of “interconnectedness” (clarity in their team structure and information-sharing permissions) and asked to solve aspects of an imaginary terrorist attack scenario, such as identifying the perpetrators and target. Teams had 25 minutes to tackle the problem, with monetary incentives for solving it quickly.

Highly interconnected teams “gathered 5 percent more information than the least-clustered groups because clustering prevented network members from unknowingly conducting duplicative searches. ‘By being in a cluster, individuals tended to contribute more to the collective exploration through information space—not from more search but rather by being more coordinated in their search,’”

The Least Interconnected teams developed 17.5% more theories and solutions and were more likely to develop the correct solution because they were less likely to “copy an incorrect theory from a neighbor.”

How You Can Help Your Team Create More Successful Solutions

You and your team rarely face problems as dire as terrorist attacks, but you can use these results to adapt your problem-solving practices and improve results.

  1. Work together to gather and share information.  This goes beyond emailing around research reports, interview summaries, and meeting notes.  “Working together” requires your team to take action, like conducting interviews or writing surveys, with one another in real-time (not asynchronously through email, text, or “collaboration” platforms).
  2. Start solving the problem alone.  For example, at the start of every ideation session, I ask people to spend 5 minutes privately jotting down their ideas before group brainstorming.  This prevents copying others’ theories and ensures all voices are heard. (not just the loudest or most senior)
  3. Invite the “Unusual Suspects” into the process.  Most executives know that diversity amplifies creativity, so they invite a mix of genders, ages, races, ethnicities, tenures, and industry experiences to brainstorming sessions.  While that’s great, it also results in the same people being invited to every brainstorm and, ultimately, creating a highly interconnected group.  So, mix it up even more. Invite people never before invited to brainstorming into the process.  Instead of spending a day brainstorming, break it up into one-hour bursts at different times of the day. 

Are You Willing to Take the Risk?

For most of your working life, collaboration has been the default approach to problem-solving. However, this research suggests that rethinking when and how to leverage collaboration can lead to greater success.

Making such a change isn’t easy – it invites skepticism and judgment as it deviates from the proven “status quo” process.

Are you willing to take that risk, separating information gathering from solution development, for the potential of achieving better, more innovative outcomes? Or will you remain content with “good enough” solutions from conventional methods?

Image credit: Unsplash

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The Beginning, Middle, and End of Innovation

And How Moneyball Fits In

The Beginning, Middle, and End of Innovation

GUEST POST from Robyn Bolton

Not long ago, pitchers and catchers reported to MLB Spring Training facilities in Florida and Arizona.  For baseball fans, this is the first sign of Spring, an occasion that heralds months of warmth and sunshine, ballparks filled (hopefully) with cheering fans, dinners of beers and brats, and the undying belief that this year will be the year.

Of course, there’s still a lot of dark, dreary cold between now and Opening Day.  Perfect weather for watching baseball movies – Bull DurhamMajor LeagueThe NaturalField of Dreams, and, of course, Moneyball.

Moneyball is based on the book of the same name by Michael Lewis and chronicles the 2002 Oakland Athletics season.  The ’02 Oakland A’s, led by General Manager Billy Beane (played by Brad Pitt), forever changed baseball by adopting an approach that valued rigorous statistical analysis over the collective wisdom of baseball insiders (coaches, scouts, front office personnel) when building a team.  This approach, termed “Moneyball,” enabled the A’s to reach the postseason with a team that cost only $44M in salary, compared to the NY Yankees that spent $125M to achieve the same outcome.

While the whole movie (and book) is a testament to the courage and perseverance required to challenge and change the status quo, time and again I come back to three lines that perfectly sum up the journey of every successful intrapreneur I’ve ever met.

The Beginning

I know you’ve taken it in the teeth out there, but the first guy through the wall…he always gets bloody…always always gets bloody.  This is threatening not just a way of doing business… but in their minds, it’s threatening the game. Really what it’s threatening is their livelihood, their jobs. It’s threatening the way they do things… and every time that happens, whether it’s the government, a way of doing business, whatever, the people who are holding the reins – they have their hands on the switch – they go batshit crazy.”John Henry, Owner of the Boston Red Sox

Context

The 2002 season is over, and the A’s were eliminated in the first round of the playoffs.  John Henry, an owner of the Boston Red Sox, has invited Bill Beane to Boston to offer him the Red Sox GM job. 

Lesson

This is what you sign up for when you decide to be an Intrapreneur.  The more you challenge the status quo, the more you question how business is done, the more you ask Why and demand an answer, the closer you get to “tak(ing) it in the teeth.”

This is why courage, perseverance, and an unshakeable belief that things can and should be better are absolutely essential for intrapreneurs.  Your job is to run at the wall over and over until you get through it.

People will follow.  The Red Sox did.  They won the World Series in 2004, breaking an 84-year-old curse.

The Middle

“It’s a process, it’s a process, it’s a process” — Bill Beane

Context

Billy has to convince the ballplayers to forget all the habits that made them great and embrace the philosophy of Moneyball.  To stop stealing bases, turning double plays on bunts, and swinging for the fences and to start taking walks, throwing to first for the easy out, and prioritize getting on base over hitting a home run.

The players are confused and frustrated.  Suddenly, everything that they once did right is wrong and what was not valued is deeply prized.

Lesson

Innovation is something new that creates value.  Something new doesn’t just require change, it requires people to stop doing things that work and start doing things that seem strange or even wrong.

Change doesn’t happen overnight.  It’s not a switch to be flipped.  It’s a process to be learned.  It takes time, practice, reminders, and patience.

The End

“When you get an answer you’re looking for, hang up.” — Billy Beane

Context

In this scene, Billy has offered one of his players to multiple teams, searching for the best deal.  When the phone rings with a deal he likes, he and the other General Manager (GM) agree to it, Billy hangs up.  Even though the other GM was in the middle of a sentence.  When Peter Brand, the Assistant GM played by Jonah Hill, points out that Billy had just hung up on the other GM, Billy responds with this nugget of wisdom.

Lesson

It’s advice intrapreneurs should take very much to heart.  I often see Innovation teams walk into management presentations with long presentations, full of data and projections, anxious to share their progress, and hoping for continued funding and support.  When the meeting starts, a senior exec will say something like, “We’re excited by the progress we’re hearing about and what it will take to continue.” 

That’s the cue to “hang up.”

Instead of starting the presentation from the beginning, start with “what it will take to continue.”  You got the answer you’re looking for – they’re excited about the progress you’ve made – don’t spend time giving them the info they already have or, worse, could raise questions and dim their enthusiasm.  Hang up on the conversation you want to have and have the conversation they want to have.

In closing

Moneyball was an innovation that fundamentally changed one of the most tradition-bound businesses in sports.  To be successful, it required someone willing to take it in the teeth, to coach people through a process, and to hang up when they got the answer they wanted.  It wasn’t easy but real change rarely is.

The same is true in corporations.  They need their own Bill Beanes.

Are you willing to step up to the plate?

Image credit: Wikimedia Commons

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How Tribalism Can Kill Innovation

How Tribalism Can Kill Innovation

GUEST POST from Greg Satell

While history tends to single out individuals, the truth is that when you look behind the story of any heroic leader, what you find is a network of loyal supporters, active collaborators and outside facilitators that are behind any great achievement. Nobody accomplishes anything significant alone.

That’s probably why it’s become fashionable for pundits to encourage us to “find our tribe,” a network of like-minded people who share your ambitions. Don’t listen to them. The truth is that great things are achieved not by taking comfort from your tribe, but from going beyond it and reaching out to those who aren’t of like mind.

The problem with focusing too much on your tribe is that those people tend to think the same way you do. They frequent the same places, watch the same TED talks and read the same blogs. That may be great for giving you some comfort and confidence, but it also acts as an echo chamber that will reinforce flawed assumptions and lead you down a false path.

The Problem With Closed Networks

In 2005, a team of researchers decided to study why some Broadway plays become hits and others flop. They looked at all the usual factors, such as production budget, marketing budget and the track record of the director, but what they found was that what was most important factor was the informal networks of relationships among the cast and crew.

If no one had ever worked together before, both financial and creative results tended to be poor. However, if the networks among the cast and crew became too dense—for all intents and purposes, becoming a tribe—performance also suffered. It was the teams that had elements of both, strong ties and new blood, that had the greatest success.

The same effect has been found elsewhere. In studies of star engineers at Bell Labs, the German automotive industry and currency traders it has been shown that tightly clustered groups, combined with long range “weak ties” that allow information to flow freely among disparate clusters of activity, consistently outperform close networks of likeminded people.

Just as we need to invest in building strong, trustful relationships, we also need to go beyond our comfort zone and seek out new connections. It’s far too easy to hide in a tribe.

The Discomfort of Diversity

While studies show that closed networks lead to worse performance, it has long been established that diversity improves performance. Researchers at the University of Michigan found that diverse groups can solve problems better than a more homogeneous team of greater objective ability. Another study that simulated markets showed that ethnic diversity deflated asset bubbles.

While the studies noted above merely simulate diversity in a controlled setting, there is also evidence from the real world that diversity produces better outcomes. A McKinsey report that covered 366 public companies in a variety of countries and industries found that those which were more ethnically and gender diverse performed significantly better than others.

Yet diversity also has a downside. In Political Tribes, Yale Professor Amy Chua notes that we are hardwired to be suspicious of others. For example, in a study where young children were randomly assigned to red or blue groups, they liked pictures of other kids who wore t-shirts that reflected their own group better. A study of adults had similar findings.

So you can see the attraction of tribes. We feel uncomfortable with people who we perceive as different. Surrounding ourselves with people who see things the way we do, on the other hand, makes us feel confident and powerful.

Mixing With The Heathens

Growing up in Iowa in the 1930s, Everett Rogers, noticed something strange in his father’s behavior. Although his father loved electrical gadgets, he was hesitant to adopt hybrid seed corn, even though it had higher yields. In fact, his father only made the switch after he saw his neighbor’s hybrid crop thrive during a drought in 1936.

This became the inspiration for Rogers’ now-familiar diffusion of innovations theory, in which an idea first gets popular with a group of early adopters and then only later spreads to other people. Geoffrey Moore later pointed out that most innovations fail because they never cross the chasm from the early adopters to the mainstream.

A study done by researchers at Kellogg and Stanford explains why. They put together groups of college students to solve a murder mystery. The groups made up of students from the same sorority or fraternity felt more confident and successful, even though they performed worse on the task than integrated groups that experienced more conflict, uncertainty and doubt.

That’s the problem with staying in your tribe. Sure, it feels great to have your ideas supported and reinforced by people you like and respect, but they are doing so because they already believe the same things that you do. To actually achieve something worthwhile, however, you have to go beyond preaching to the choir and start mixing with the heathens.

Do You Want To Make A Point Or Do You Want To Make A Difference?

In my book, Cascades, I cover a wide range of movements. Some, like the civil rights movement and the campaign to save 100,000 lives, succeeded brilliantly. Others, like Occupy and the technology companies along Boston’s Route 128, failed miserably. Another thing I found is that many movements that ultimately succeeded, failed initially because they failed to go beyond their tribe.

Here’s what Srdja Popović, who helped lead the Otpor movement that overthrew the brutal regime of Slobodan Milošević in 2000, told me about the initial student protests in 1992.

These were very ‘Occupy’ type of protests where we occupied the five biggest universities and lived there in our little islands of common sense with intellectuals and rock bands while the rest of the country was more or less supportive of Milošević’s idea. And this is where we began to understand that staying in your little blurb of common sense was not going to save the country.

In a similar vein, Nelson Mandela started out as an angry nationalist, but eventually learned that to get results, he would have to actively collaborate with others that didn’t quite see things the same way he did. In Poland, Solidarity’s first actions were disastrous, because they only involved workers. It was only through a later alliance between workers, intellectuals and the church that the movement ultimately succeeded.

Today, both America and the world have become increasingly tribal and it’s easy to retreat into what Srdja calls “your little blurb of common sense.” You can state your beliefs, make your point and see the heads nod around you. You can live in comfort, knowing that any voices of dissent will be quickly shouted down, as you self righteously feel they should be.

However, at some point, you will have to decide if you want to make a point or whether you want to make a difference. To achieve anything worthwhile, you have to go beyond your tribe.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Unsplash

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A Case Study on High Performance Teams

New Zealand’s All Blacks

A Case Study on High Performance Teams

GUEST POST from Stefan Lindegaard

The New Zealand All Blacks’ rugby team exemplifies high performance through a blend of deep cultural traditions, continuous improvement, and exceptional teamwork. Renowned for their winning legacy, the All Blacks have harnessed their unique team ethos and operational strategies to maintain dominance in international rugby.

Deep Dive into the All Blacks’ Team Dynamics

1. The Essence of Their High Performance Culture: At its core, the All Blacks’ success is driven by a strong team culture that emphasizes collective responsibility and personal excellence. Each player is selected not only for their athletic prowess but also for their ability to contribute to the team’s ethos, which is famously encapsulated by the mantra, “Better People Make Better All Blacks.”

2. Leadership and Collective Responsibility: The team operates under a shared leadership model where senior players are tasked with mentoring younger teammates, fostering a sense of responsibility and continuity. This structure enhances cohesion and ensures that the team’s values are imparted effectively across generations.

3. Continuous Cultural and Performance Improvement: Inspired by the concept of ‘Kaizen’, or continuous improvement, the All Blacks strive to enhance every aspect of their performance, from on-field strategies to mental preparation. This approach keeps them adaptable and competitive, regardless of the evolving nature of the game.

Lessons from the All Blacks’ Team Strategies

1. Unity and Shared Vision: The All Blacks’ unity is their strength. A shared vision guided by their cultural values leads to cohesive team efforts. Leaders can learn the importance of aligning team members towards a common goal and the powerful impact of a united front.

2. Cultural Legacy and Identity: The integration of cultural rituals like the Haka into their routine not only intimidates opponents but also strengthens their identity and resolve. This teaches leaders the value of embracing and promoting a unique team identity to enhance solidarity and pride.

3. Mental Toughness and Resilience: The mental preparation of players to handle high-pressure situations is a testament to their resilience. Developing mental toughness is crucial for teams to perform under pressure.

4. Adaptability and Tactical Innovation: The All Blacks’ ability to adapt their game plan in real-time according to the situation on the field underscores the importance of flexibility and innovation in achieving superior results.

5. Empowerment and Accountability: Empowering players to take ownership of their roles and the outcomes teaches accountability and encourages individual contribution to the team’s success.

Reflecting on the All Blacks’ Approach to High Performance

While the cultural and operational strategies of the All Blacks are deeply integrated into the fabric of New Zealand rugby, they provide universal lessons on building and sustaining high performance teams. The key is not merely in adopting specific tactics but in cultivating an environment that promotes continuous improvement, unity, and resilience.

Key Insights for Leaders:

  • Building a high performance team requires more than skills; it requires cultivating a shared culture and identity that can inspire and unify team members.
  • Flexibility in strategies and adaptability in execution are critical to staying competitive and relevant.
  • Continuous improvement and learning are essential for sustaining high performance and should be integral to the team’s operation.

The All Blacks’ method, though deeply rooted in the specific context of rugby and New Zealand culture, offers great insights for leaders in any field aiming to build high performance teams.

Image Credit: Wikimedia Commons

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