Category Archives: collaboration

I Sent AI a Survey

… and the Results Were Brilliant … and Dangerous

I sent AI a survey and the results were brilliant and dangerous

GUEST POST from Robyn Bolton

AI is everywhere: in our workplaces, homes, schools, art galleries, concert halls, and even neighborhood coffee shops. We can’t seem to escape it. Some hope it will unlock our full potential and usher in an era of creativity, prosperity, and peace. Others worry it will eventually replace us. While both outcomes are extreme, if you’ve ever used AI to conduct research with synthetic users, the idea of being “replaced” isn’t so wild.

For the past month, I’ve beta-tested an AI research tool that allows you to create surveys, specify segments of respondents, send the survey to synthetic respondents (AI-generated personas), and get results within minutes.

Sound too good to be true?

Here are the results from my initial test:

150 respondents in 3 niche segments (50 respondents each)
51 questions, including ten open-ended questions requiring short prose responses
1 hour to complete and generate an AI executive summary and full data set of individual responses, enabling further analysis

The Tool is Brilliant

It took just one hour to gather data that traditional survey methods require a month or more to collect, clean, and synthesize. Think of how much time you’ve spent waiting for survey results, checking interim data, and cleaning up messy responses. I certainly did and it made me cry.

The qualitative responses were on-topic, useful, and featured enough quirks to seem somewhat human. I’m pretty sure that has never happened in the history of surveys. Typically, respondents skip open-ended questions or use them to air unrelated opinions.

Every respondent completed the entire survey! There is no need to look for respondents who went too quickly, chose the same option repeatedly, or abandoned the effort altogether. You no longer need to spend hours cleaning data, weeding out partial responses, and hoping you’re left with enough that you can generate statistically significant findings.

The Results are Dangerous

When I presented the results to my client, complete with caveats about AI’s limitations and the tool’s early-stage development, they did what any reasonable person would do – they started making decisions based on the survey results.

STOP!

As humans, we want to solve problems. In business, we are rewarded for solving problems. So, when we see something that looks like a solution, we jump at it.

However, strategic or financially significant decisions should never rely ona single data source. They are too complex, risky, and costly. And they definitely shouldn’t be made based on fake people’s answers to survey questions!

They’re Also Useful.

Although the synthetic respondents’ data may not be true, it is probably directionally correct because it is based on millions and maybe billions of data points. So, while you shouldn’t make pricing decisions based on data showing that 40% of your target consumers are willing to pay a 30%+ premium for your product, it’s reasonable to believe they may be willing to pay more for your product.

The ability to field an absurdly long survey was also valuable. My client is not unusual in their desire to ask everything they may ever need to know for fear that they won’t have another chance to gather quantitative data (and budgets being what they are, they’re usually right). They often ignore warnings that long surveys lead to abandonment and declining response quality. With AI, we could ask all the questions and then identify the most critical ones for follow-up surveys sent to actual humans.

We Aren’t Being Replaced, We’re Being Spared

AI consumer research won’t replace humans. But it will spare us the drudgery of long surveys filled with useless questions, months of waiting for results, and weeks of data cleaning and analysis. It may just free us up to be creative and spend time with other humans. And that is brilliant.

Image credit: Microsoft Copilot

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ISO Innovation Standards

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The Good, the Bad, and the Missing

ISO Innovation Standards

GUEST POST from Robyn Bolton

In 2020, the International Standards Organization, most famous for its Quality Management Systems standard, published ISO 56000, Innovation Management—Fundamentals and Vocabulary. Since then, ISO has released eight additional innovation standards.

But is it possible to create international standards for innovation, or are we killing creativity?

That’s the question that InnoLead founder and CEO Scott Kirsner and I debated over lunch a few weeks ago. Although we had heard of the standards and attended a few webinars, but we had never read them or spoken with corporate innovators about their experiences.

So, we set out to fix that.

Scott convened an all-star panel of innovators from Entergy, Black & Veatch, DFW Airport, Cisco, and a large financial institution to read and discuss two ISO Innovation Standards: ISO 56002, Innovation management – Innovation management systems – Requirements and ISO 56004, Innovation Management Assessment – Guidance.

The conversation was honest, featured a wide range of opinions, and is absolutely worth your time to watch.

Here are my three biggest takeaways.

The Standards are a Good Idea

Innovation doesn’t have the best reputation. It’s frequently treated as a hobby to be pursued when times are good and sometimes as a management boondoggle to justify pursuing pet ideas and taking field trips to fun places.

However, ISO Standards can change how innovation is perceived and supported.

Just as ISO’s Quality Management Standards established a framework for quality, the Innovation Management Standards aim to do the same for innovation. They provide shared fundamentals and a common vocabulary (ISO 56000), requirements for innovation management systems (ISO 56001 and ISO 56002), and guidance for measurement (ISO 56004), intellectual property management (ISO 56005), and partnerships (ISO 56003). By establishing these standards, organizations can transition innovation from a vague “trust me” proposition to a structured, best-practice approach.

The Documents are Dangerous

However, there’s a caveat: a little knowledge can be dangerous. The two standards I reviewed were dense and complex, totaling 56 pages, and they’re among the shortest in the series. Packed with terminology and suggestions, they can overwhelm experienced practitioners and mislead novices into thinking they have How To Guide for success.

Innovation is contextual. Its strategies, priorities, and metrics must align with the broader organizational goals. Using the standards as a mere checklist is more likely to lead to wasted time and effort building the “perfect” innovation management system while management grows increasingly frustrated by your lack of results.

The Most Important Stuff is Missing

Innovation is contextual, but there are still non-negotiables:

Leadership commitment AND active involvement: Innovation isn’t an idea problem. It’s a leadership problem. If leadership delegates innovation, fails to engage in the work, and won’t allocate required resources, you’re efforts are doomed to fail.
Adjacent and Radical Innovations require dedicated teams: Operations and innovation are fundamentally different. The former occurs in a context of known knowns and unknowns, where experience and expertise rule the day. The latter is a world of unknown unknowns, where curiosity, creativity, and experimentation are required. It is not reasonable to ask someone to live in both worlds simultaneously.
Innovation must not be a silo: Innovation cannot exist in a silo. Links must be maintained with the core business, as its performance directly impacts available resources and influences the direction of innovation initiatives.

These essential elements are mentioned in the standards but are not clearly identified. Their omission increases the risk of further innovation failures.

Something is better than nothing

The standards aren’t perfect. But one of the core principles of innovation is to never let perfection get in the way of progress.

Now it’s time to practice what we preach by testing the standards in the real world, scrapping what doesn’t work, embracing what does, and innovating and iterating our way to better.

Image credit: Pixabay

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The Secret Sauce of Tiger Teams

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Think Small, Win Big

The Secret Sauce of Tiger Teams

GUEST POST from Robert B. Tucker

Sooner or later, you will be asked to lead a tiger team. In common parlance, a tiger team refers to a small, highly skilled group of specialists assembled to solve a specific, high-stakes problem or to tackle a critical project, often within a short timeframe. These teams are typically composed of cross-functional members who bring diverse skills and expertise, allowing them to address complex challenges that require innovative thinking and rapid decision-making.

The term originally came from military and aerospace contexts, where tiger teams were used for troubleshooting and mission-critical problem-solving (most famously during the Apollo 13 mission). In business and technology settings today, tiger teams are often called upon for tasks like responding to crises or driving rapid innovation initiatives.

If you’re up to the challenge, this will be your time to shine. The distinguishing aspect of leading a special purpose team is that you’re tasked with figuring out how to do something new, so you and your mates are embarking upon a learning journey. As an innovation coach to organizations, I’ve seen plenty of successes and messes. The decisions you make at the outset greatly impact a team’s chances of success. Here are six tips for forming and managing effective tiger teams:

Follow the Pizza Rule. In Silicon Valley, Jeff Bezos’ “pizza rule” has taken hold: If you can’t feed your team with two pizzas, your team is too big. Lots of research supports this notion. Once a group gets beyond five to seven people, productivity and effectiveness begin to decline. Communication becomes cumbersome. Managing becomes a pain. Players begin to disengage, and introverts tend to withdraw. When it comes to team size, less is more. Think small and you’ll win big.
Pay attention to group chemistry. Carnegie Mellon’s research points to three factors that make a team highly functioning. 1) Members contribute equally to the team’s discussions, rather than one or two people dominating; 2) Members are good at reading complex emotional states; and 3) Teams with more women outperform teams with more men. Turns out the emotional component – how we feel when we are engaged with a team – truly matters and is critical to success. Pay attention to how the people you’re inviting to your team will relate to each other. Assess human factors like trust, empathy, ability to resolve conflict, and seek and offer forgiveness. Acknowledge people’s selfless behavior and willingness to “take one for the team.” Always give credit to your team rather than take credit yourself, and practice empathy at all times.
Calculate people’s Teamwork Factor. Will Wright, developer of The Sims, Spore, and other best-selling computer games analyzes what he calls a person’s teamwork factor. “There is the matter of, how good is this person times their teamwork factor,” Wright told interviewer Adam Bryant. “You can have a great person who doesn’t work well on the team, and they’re a net loss. You can have somebody who is not that great but they are very good glue, and [they] could be a net gain.” Team members, Wright considers “glue,” share information effectively, motivate and improve morale, and help out when somebody gets stuck. Be aware of not only the needed skill sets but who works well together and who does not.
Don’t go overboard with diversity. Cross-functional tiger teams are de rigueur, but can too much diversity be a detriment to team chemistry? Researchers at Wharton think so. Too much diversity of “mental models” can be a drag on forward progress, say professors Klein and Lim. If members of a team have a “shared, organized understanding and mental representation of knowledge” about the nature of the challenge, it can enhance coordination and effectiveness when the task at hand is complex, unpredictable, urgent, and novel. The researchers concluded that team members who share common models can save time because they share a common body of knowledge.
Establish a group process. Every team needs a facilitator, and every tiger team needs a process that spells out how we’ll work with each other. Nancy Tennant led an amazingly successful tiger team at Whirlpool Corporation, but when asked to join an ad hoc governmental team tasked with solving a very big problem, she witnessed a floundering.“They brought a group of people together from all over the world to help them brainstorm,” Tennant told me. “They spent a lot of money, put us in a room, and said ‘Think hard.’ But we didn’t know each other. We didn’t have a group process. And we just couldn’t do it.” A group without a process is like a ship without a rudder. It will have a harder time steering.
My strong suggestion is: to take the time to establish and communicate team rules at the outset. Address how you’ll treat each other, and how you’ll respect each other. Articulate how much time each member is committing to the team. Effective teams establish clear goals and expectations at the outset and hold each other accountable.
Pay attention to the 3Rs of team effectiveness: Result, Reputation, and Residuals. What motivates teams over the long haul is not money, but intrinsic rewards. Harvard’s Teresa Amabile’s research shows that feelings of accomplishment, that we are making progress, and doing important work are the biggest motivators. As the team leader, keep the three Rs in mind: 1) Result. If you hit your target, you’ll add another accomplishment to your track record; 2) Reputation: your status in the organization rises. Senior management will be delighted. Colleagues will talk you up, praise your contribution, and invite you to join future projects. 3) Residuals: the lasting payout of participating in a successful collaborative team is that you get to see your “product” being used by customers, both internal and external. You know you’ve made a difference, solved a problem, or created an opportunity for the organization, your team, and most of all yourself.

This article originally appeared in Forbes
Image credit: Pixabay

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How to Build Innovation Resilience in Uncertainty

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Reality Strikes Back

How to Build Innovation Resilience in Uncertainty

GUEST POST from Robyn Bolton

“This time feels different.” I’ve been hearing this from innovation practitioners and partners for months We’ve seen innovation resilience tested in times of economic uncertainty and geopolitical volatility. We’ve seen it flourish when markets soar and capital is abundant. We’ve seen it all, but this time feels different.

In fact, we feel a great disturbance in the innovation force.

Disturbances aren’t always bad. They’re often the spark that ignites innovation. But understand the disturbance you must, before work with it you can.

So, to help us understand and navigate a time that feels, and likely is, different, I present “The Corporate Innovator’s Saga.”

Episode I: The R&D Men (are) Aces

(Sorry, that’s the most tortured one. The titles get better, I promise)

A long time ago (1876), in a place not so far away (New Jersey), one man established what many consider the first R&D Lab. A year later, Thomas Edison and his Menlo Park colleagues debuted the phonograph.

In the 20^th century, as technology became more complex, invention shifted from individual inventors to corporate R&D labs. By the late 1960s, Bell Labs employed 15,000 people, including 1,200 PhDs. In 1970, Xerox’s famed Palo Alto Research Center (PARC) opened.

Episode II: Attack of the Disruptors

For most of the twentieth century, R&D labs were the heroes or villains of executives’ innovation stories. Then, Harvard Business School professor Clayton Christensen published, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail.

He revealed that executives’ myopic focus on serving their best (most profitable) customers caused them to miss new waves of innovation. In example after example, he showed that R&D often worked on disruptive (cheaper, good enough) technologies only to have their efforts shut down by executives worried about cannibalizing their existing businesses.

C-suites listened, and innovation went from an R&D problem to a business one.

Episode III: Revenge of the Designers

Design Thinking’s origins date back to the 1940s, its application to business gained prominence with l Tim Brown’s 2009 book, Change by Design: How Design Thinking Transforms Organizations and Inspires Innovation.

This book introduced frameworks still used today’s: desirability, feasibility, and viability; divergent and convergent thinking; and the process of empathy, problem definition, ideation, prototyping, and testing.

Innovation now required business people to become designers, question the status quo, and operate untethered from the short-termism of business,

Episode IV: A New Hope (Startups)

The early 2000s were a dizzying time for corporate innovation. Executives feared disruption and poured resources into internal innovation teams and trainings. Meanwhile, a movement was gaining steam in Silicon Valley.

Y Combinator, the first seed accelerator, launched in 2005 and was followed a year later by TechStars. When Eric Ries published The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses in 2011, the US was home to nearly 100 startup accelerators.

Now, businesspeople needed to become entrepreneurs capable of building, and scaling startups in environments purpose-built to kill risk and change.

In response, companies spun up internal accelerators, established corporate venture capital teams, and partnered with startup studios.

Episode V: Reality Strikes Back

Today, the combination of a global pandemic, regional wars, and a single year in which elections will affect 49% of the world’s population has everyone reeling.

Naturally, this uncertainty triggered out need for a sense of control. The first cut were “hobbies” like innovation and DEI. Then, “non-essentials” like “extra” people and perks. For losses continued into the “need to haves,” like operational investments and business expansion.

Recently, the idea of “growth at all costs” has come under scrutiny with advocates for more thoughtful growth strategies emerging There is still room for innovation IF it produces meaningful, measurable value.

Episode VI: Return of the Innovator (?)

I don’t know what’s next, but I hope this is the title. And, if not, I hope whatever is next has Ewoks.

What do you hope for in the next episode?

Image credit: Pexels

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Five Keys to Company Longevity

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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?

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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

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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:

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.
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.
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

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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?

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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:

the reason why something is done or used: the aim or intention of something – The purpose of innovation is to create value
the feeling of being determined to do or achieve something – The team worked with purpose
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:

When was the last time you were curious and asked, “What’s the purpose of (artifact of the status quo)?”
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?
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

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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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