Category Archives: culture

Are You Lying to Your Customers?

Are You Lying to Your Customers?

It seems like every company these days is trying to claim that they are innovative, trying to claim that they are customer-centric, trying to claim that their employees are important to them. But are they?

Can all this be true?

Or, are all of these companies lying to their customers, lying to their employees, and lying to their shareholders?

Many companies say that they are committed to innovation, but employees know the truth. If employees’ experience around the innovation efforts of the company (and its outcomes) isn’t consistent with the innovation messages being communicated, then not only will innovation participation and outcomes be low, but ongoing trust and loyalty will be further eroded in the organization.

Employees can see the Lucky Charms on your face when you say you’re committed to innovation publicly, but behind the scenes your actions demonstrate that you really are not.

And don’t be fooled, customers will start to see the Lucky Charms show up on your face, no matter how hard you try and convince them that the marshmallow goodness is not there.

If you aren’t going to define what innovation means to your company, if you aren’t going to create a common language of innovation, if you aren’t going to teach people new innovation skills and support innovation at all levels by making limited amounts of time and capital available to push their ideas forward, then don’t say you’re committed to innovation. You’ll tear the organization down instead of building it up.

Lying to CustomersIf customers don’t see you increasing your level of value creation, improving your level of value access, and doing a better job at value translation (see Innovation is All About Value), especially when compared to the competition, then they too will become disillusioned, frustrated, and start to look for other alternative solutions that deliver more value then all of your offerings.

Meanwhile, shareholders behave like customers on steroids. If you are being rewarded with an innovation premium by the market, you can’t be “all hat and no cattle” for very long, meaning you have to deliver compelling inventions on a repeated basis with a strong potential to become the innovations that drive the future growth of the company. This is hard to do once, let alone on a repeated basis. We will likely see Apple be the latest victim in the next twelve months.

Why? Because AAPL is at an all-time high based on the likely high percentage of people that are likely to upgrade from an iPhone 4 or 5s to an iPhone 6 or 6 Plus. What about after that? Well, the smartphone industry is about to enter the same place that the PC industry hit a few years ago, when replacement cycles began to lengthen, reducing revenues, and forcing prices (and margins) lower. Simultaneously carriers will seek to extract more of the margin from the overall equation, and if Google/Motorola/Lenovo, Nokia and others start to bring $99 smartphones developed for India and other places to the richer economies that will in their next generation likely be “good enough” compared to the high end $699 handsets, more people will choose to wait longer between upgrades, or trade down with their next purchase, much as they did when $400 laptops started to become the rage.

So, what are we to learn from Apple’s pending share price collapse about the middle of next year?

Well, the first thing we will learn is that continuous innovation is hard. Now I’m not saying that Apple is going to go away, HP and Dell haven’t gone away, but Apple’s share price in Q2/Q3 2015 will struggle, they will face employee defections, and it will become more like Dell, HP and Microsoft than Facebook or Google. Not because those companies are any more or less innovative than any of the others, but because the growth paradigms are different and those companies are still in a different place on their growth curves.

We can also learn that continuous innovation requires consistency, commitment, the ability to recognize and prepare for the inevitable peaking of any growth curve, the organizational agility necessary to change as fast as the wants and needs of your customers and your environment, and the ability to understand what your customers will give you permission to do (so you know where to go next when your most profitable growth curve begins to peak).

You should see by now that continuous innovation is about far more than technological innovation, but instead requires not only continuous commitment, but also a continuous willingness and ability to change, and a continuous scanning of your environment using a Global Sensing Network.

Do you have one?

What is yours telling you about your company’s future?

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Let’s Chat About the Language of Innovation

Let’s Chat About the Language of Innovation

Let’s Chat About the Language of Innovation

It was bound to happen sooner or later…

What is it you might ask?

Well, it is the recognition that the language we use (and more importantly, having a common language) when it comes to innovation, to change, or to pretty much any other aspect of business is just as important as it is in our personal lives.

Who does the recognition come from?

Well, none other than the innocats, a cool group of people who host a twitter chat at #innochat every Thursday at 5PM GMT (that’s 9AM for those of you on the west coast of the USA, Noon on the east coast, and well, 5PM for those of you in the UK).

Personally I tend to use Tweetchat.com to participate in twitter chats like this because it makes it easy to follow along real-time. If you go to the Tweetchat.com web site, just enter the hashtag #innochat as the room you’d like to enter.

So, come join me tomorrow (October 9, 2014) for an #innochat on the language of innovation. You can find the introductory post for the session here:

Sorry, link expired

UPDATE: Sorry, link to transcript expired

On that page you’ll also find links to my latest article on the topic and my latest white paper (commissioned by Planview).

If you’d like to commission a white paper, webinar, or keynote speech on innovation, social business, inbound/digital/content marketing or some other topic you think I can help people make sense of, contact me.

Otherwise, come join me for a lively Twitter discussion of the importance of a common language of innovation.

Oh, and if you’re curious what my current definition of innovation is, here you go:

“Innovation transforms the useful seeds of invention into widely adopted solutions valued above every existing alternative.” – Braden Kelley

Keep innovating!

Please note the following licensing terms for Stikkee Situations cartoons:

1. BLOGS – Link back to https://bradenkelley.com/category/stikkees/ and you can embed them for free
2. PRESENTATIONS, please send $25 to me on PayPal by clicking the button 3. NEWSLETTERS & WEB SITES, please send me $50 on PayPal by clicking the button
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Think Like a Tech Company or Go Out of Business

Think Like a Tech Company or Go Out of Business

by Braden Kelley and Linda Bernardi

Even in 2014, there are business sectors who feel they are not ‘tech companies’. News flash: Whether you are a consumer products company, an insurance company, a hotel, or a pharmaceutical company, your business is a technology business. Why?

Technology is the link between any business and its customers. To say technology is not core to your business strategy, means you think customers are not the key to your business success. So, your business is a technology business whether you want it to be or not.

Today technology is how you market and sell your products, make your business more efficient, and most importantly, how you stay connected to your customers. Some companies mistake the importance of technology to mean that they need to open a twitter account and monitor social media, put in an ERP and CRM system, and revamp their web site. But the importance of technology in today’s business environment is more than that.

ERP and CRM are common tools, a requirement to remain competitive, and while social media and the internet are important to sales and marketing success, they are becoming yesterday’s news as customers develop deeper connections to their mobile devices. If you aren’t on their devices and interacting in a meaningful way with them there in real-time, you won’t stay connected to them in the long run.

Let’s look at the impact on a few different industries whose members tend not to see themselves as technology companies:

1. Fortune 100 consumer product goods (CPG) companies
2. Hotel Chains
3. Big Box Retailers

1. Fortune 100 CPG companies typically manufacture large quantities of consistent products and have visually pleasing (static) web pages for consumers. But they don’t use technology well enough to detect what the market wants before it knows it, often fail to personalize or customize products to customer needs, and usually lack the online networks that could help connect other customer product needs together into new potential product ideas that the company could co-create with their customers. Often connection means post mortem analytics on data collected in the past, or, analyzing previous customer interactions with static web pages. Creating authentic customer connections requires online and mobile technology these companies usually don’t possess. I don’t mean apps (which often are pretty much the same as a website), but new physical/online/mobile engagement models that inspire customers to stay connected to the company (and each other) in a dynamic, evolving community. Rethinking is needed here. The customer is not just a buyer but an influencer. If CPG companies want to sell that next bottle of $300 facial cream, they better consider delighting, and not just marketing to, their customer base.

2. AirBnB has proven to be a major disruptive force in the hotel and hospitality business, grabbing a massive foothold in a market that the Homeaway.com member companies created and should have dominated. Resistance to AirBnB is massive and lawsuits are abundant, but for a moment let’s go beyond the hype and explore the angst of traditional hotels. AirBnB created a highly connected, effective community of property owners and property renters. This bi-directional ecosystem can only thrive if they are both happy and satisfied. To experience what they’ve created, first go to a traditional hotel website (pictures of room, building, lobby) and then go to AirBnB and browse the hundreds of customer experiences their property owners offer. On the hotel site you’ll see they’ve created the mechanics of paying to rent a hotel room, while on AirBnB you’ll see that they’ve created both an ecosystem and an experience.

3. Big box retailers have done a poor job of seeing themselves as technology companies capable of fending off challenges from online-only retailers. Target made the mistake of seeing themselves as a retailer, not a technology business, and so they outsourced their ecommerce to Amazon in the beginning, only to regret doing so because Amazon was able to learn which 20% of their inventory drove 80% of their profits, and when.

Meanwhile, Costco and Walmart, despite being two of the most successful retailers in the world, have struggled to find success online because they can’t get beyond their brick and mortar heritage to see themselves as a technology business with an integrated online/offline ecosystem. Seriously, it is 2014, do we still need to get our Costco circulars in the mail? Nothing has changed about Costco’s interaction with its customers. Walmart exacerbated the disconnection between the two sides of their business by creating a separate online division and exiling it to Silicon Valley. Costco sells different products online than offline. The results of both of these approaches have been far from stellar.

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Technology Lowers Barriers to Entry

In the history of the world, it has never been easier to start and scale a business to a global footprint, not in a matter of decades or years, but in months. And it is not just the other companies in your industry and technology-driven startups that you have to worry about if you choose not to view yourself as a technology company and move as fast as they do. You have to worry about competition from established technology players like Google and Amazon too, because one day they (or people that used to work for them) might decide that your market is attractive enough to enter and come disrupt your industry. For example, Amazon has become a book publisher and a financial services company.

Technology Enables Experiences

Technology enables the creation of customer experiences. I am going to choose my insurance company based on my experience. At the end of the day if all prices are comparable, then how the businesses you interact with make you feel, and the connections you’ve built with them will matter more. Without an emphasis on using technology to make your business a social business, you will find your company displaced by others that do. You must lead your industry in identifying opportunities to use technology to get closer to your customers. The future of business will be all about delighting customers and making their experience more personal.

Technology is not just a tool, but central to everything you do in today’s always on, always connected digital age.

Here are ten ways that technology can help you become a more social business:

  1. Building Connections
  2. Developing Networks
  3. Global Sensing and Prediction
  4. Sharing Recommendations
  5. Creating Experiences
  6. Personalization
  7. Customization
  8. Co-Creation
  9. Crowdsourcing
  10. Open Innovation

To give you an example of what things will look like in the future, the forward thinking health insurance company will leverage the mobile device for virtual ID cards, drug interaction warnings, personal triage, mobile care, wellness, cost sharing calculations, FSA/HSA administration, diagnostics, and more.

Conclusion

In conclusion, no matter what business you are in, it is very dangerous not to see technology as a competitive differentiator and a core driver of your business. Instead, you must constantly look at how you can become more of a technology company in order to enable deeper customer connections and more meaningful experiences. Today if you don’t connect with, understand, delight and start predicting your customer’s needs/wants, you may not thrive in your industry and your competition and new entrants who do embrace technology will replace you.

This article is brought to you by Linda Bernardi and Braden Kelley. Collectively, we have over 30 years of experience working with large, global multi-disciplinary enterprises. We write this with care and passion as we want your enterprises to succeed. We would love to hear your thoughts.


Guest Collaborator:

Linda BernardiLinda Bernardi is a Technology Strategist, Investor, and Founder & CEO at StraTerra Partners, The Bernardi Leadership Institute and a Strategic Advisor at Cloudant Inc. She is also the Author of Provoke, Why the Global Culture of Disruption is the Only Hope for Innovation. Learn more here about Linda’s work on disrupting large enterprise analytics.

Please note the following licensing terms for Stikkee Situations cartoons:

1. BLOGS – Link back to https://bradenkelley.com/category/stikkees/ and you can embed them for free
2. PRESENTATIONS, please send $25 to me on PayPal by clicking the button 3. NEWSLETTERS & WEB SITES, please send me $50 on PayPal by clicking the button
License for presentations - $25
License for newsletters and web sites - $50

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Innovation Culture Battle Royale

Innovation Culture Battle Royale

Earlier this month I wrote an innovation culture white paper for Planview titled “Five Ways to Make Your Innovation Culture Smell Better” that is getting a great response after my appearance as a keynote speaker at the Pipeline 2014 conference where I spoke on the same topic.

Then recently Jim Brown published a white paper with Planview titled “Creating the Environment to Innovate: How Industry Leaders Put People, Processes and Technology in Place to Drive Innovation” and now Planview wants to know which one people like better…

So I need your vote!

Click this link to go to a web page where you can not only download both white papers, but also cast your votes for mine! 🙂

You might even win a $100 gift card!

Please vote for Braden Kelley now!


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Five Ways to Make Your Innovation Culture Smell Better

Five Ways to Make Your Innovation Culture Smell BetterIs Your Organization Committed to Innovation?

If so, download my new innovation culture white paper.

Unfortunately, when it comes to fostering continuous innovation, most organizational cultures stink at it, and they are not innovating fast enough to repel the unrelenting threat posed by new market entrants with declining barriers to entry.

This is why I created my latest innovation white paper in partnership with Planview to help organizations learn how to make their organization’s innovation culture stink less by:

  • Focusing on the basics of culture change
  • Building a common language of innovation
  • Identifying and harnessing the untapped talents, skills, and abilities of employees
  • Leveraging their most curious individuals to drive momentum

Click here to download the white paper

To watch my ON DEMAND video presentation on the same topic, “Your Innovation Culture Stinks: 5 Ways to make it Smell Better” visit www.pipelineconference.com

What does your organization’s innovation culture smell like?


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Free Innovation Culture Keynote

Pipeline 2014 Conference

If your innovation culture leaves something to be desired and its your job to make it better, and you missed my virtual keynote at the June 6, 2014 Pipeline 2014 conference, then you can register now and watch my FREE keynote ON DEMAND and find out five actions you can take to change your innovation culture for the better.

Here is a description of the session:

When it comes to innovation, far too much emphasis is placed on creativity, ideas and products. Innovation requires more than ‘aha’ moments. Innovation is a team sport, not an individual one, and while it may be easier for our reptilian brain to understand a single innovation hero, the truth is that every innovation figurehead from Steve Jobs to Thomas Edison had a whole lab or team of people behind them making the real innovation happen. In this session we will investigate what it takes to build a successful team of capable innovation practitioners and contributors that will effectively form a strong and sustainable innovation culture to power success for the organization, not just for the moment, but for the lifetime of the organization.

And here is some information on this FREE virtual conference:

If you’re not familiar with the Pipeline Conference, it is a virtual conference with more than 4,000 participants from 95 countries over the past four years. PIPELINE offers product development practitioners access to experts as well as practical information they can use right away – all from the comfort of their desks. From idea to launch to end-of-life, the content will appeal to any professional involved in the end-to-end product development process. In addition, the newly designed PIPELINE virtual platform serves as a resource center for 12 months following the live event with new content each quarter.

Register now and get free access to the resource center. PIPELINE 2013 was named Event of the Year category in Best in Biz Awards for virtual conference on innovative product development. For more information and to register, visit:

http://www.pipelineconference.com

Please check out my keynote and Q&A session and let me know your thoughts!


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Are You Investing in an Innovation Culture?

Are You Investing in an Innovation Culture?

Innovation is everywhere.

You can’t go an entire commercial break during the Super Bowl or a State of the Union address (okay, sorry, both American examples) without hearing the word innovation pop up at least once or twice. Companies have added innovation to their company values and mission statements in accelerating numbers. Some organizations have implemented idea management systems. And others are willing to spend large sums of money on design firms and innovation boutique consultancies to get help designing some new widget or service to flog to new or existing customers. Based on all of that you would think that most companies are committed to innovation, right?

If you asked most CEOs “Is your organization committed to innovation?”, do you think you could find a single CEO that would say no?

So, why do think I’m about to make the following statement?

90+% of organizations have no sustained commitment to innovation.

When it comes to fostering continuous innovation, most organizational cultures stink at it.

Let’s look at some data, because anyone who is committed to innovation (and not just creativity) should love data (especially unstructured data from customers):

  • Over the last 50 years the average lifespan of a company on the S&P 500 has dropped from 61 years to 18 years (and is forecast to grow even shorter in the future)1
  • In a worldwide survey of 175 companies by Hill & Knowlton (a communications consultancy), executives cited “promoting continuous innovation” as the most difficult goal for their company to get right. “Structurally, many companies just aren’t set up to deliver continuous innovation.”2
  • 84% of more than 2,200 executives agree that their organization’s culture is critical to business success3
  • “96% of respondents say some change is needed to their culture, and 51% think their culture requires a major overhaul.”3

So what does this data tell us?

For one thing, it helps to reinforce the notion that the pace of innovation is increasing.

For another thing, it doesn’t exactly scream that organizations are as committed to building an innovation culture internally as their words externally say about being committed to innovation.

Why is this?

Well, as fellow Innovation Excellence contributor Jeffrey Phillips once said:

“When it comes to innovation, ideas are the easy part. The cultural resistance learned over 30 years of efficiency is the hard part.”

And when you get right down to it, most employees in most organizations are slaves to execution, efficiency, and improvement. And while those things are all important (you can’t have innovation without execution), organizations that fail to strike a balance between improvement/efficiency and innovation/entrepreneurship, are well, doomed to fail.

This increasing pace of innovation along with the lower cost of starting/scaling a business and the always difficult challenge of building a productive culture of continuous innovation, is the reason that the lifespan of organizations is shrinking.

So if it isn’t enough to talk about innovation, or to invest in trying to come up with new products and services, shouldn’t more organizations be also investing to making sure their innovation culture doesn’t, well, stink?

The obvious answer is… (insert yours here)

So, if your innovation culture stinks, I encourage you to come join me at Pipeline 2014 and attend my keynote session on exploring five ways to make it smell better:

“Our Innovation Culture Stinks – Five Ways to Make it Smell Better”

It’s a free virtual event on June 6, 2014.

I look forward to seeing you there!

Sources:
1. Innosight/Richard N. Foster/Standard & Poor’s
2. Hill & Knowlton Executive Survey
3. Booz & Company Global Culture and Change Management Survey 2013


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Free Virtual Keynote on Innovation Culture – June 6, 2014

Pipeline 2014 Conference

If your innovation culture leaves something to be desired and its your job to make it better, then come join me online at Pipeline 2014 for my FREE keynote on June 6, 2014 and find out five actions you can take to change your innovation culture for the better.
Here is a description of the session:

When it comes to innovation, far too much emphasis is placed on creativity, ideas and products. Innovation requires more than ‘aha’ moments. Innovation is a team sport, not an individual one, and while it may be easier for our reptilian brain to understand a single innovation hero, the truth is that every innovation figurehead from Steve Jobs to Thomas Edison had a whole lab or team of people behind them making the real innovation happen. In this session we will investigate what it takes to build a successful team of capable innovation practitioners and contributors that will effectively form a strong and sustainable innovation culture to power success for the organization, not just for the moment, but for the lifetime of the organization.

And here is some information on this FREE virtual conference:

If you’re not familiar with the Pipeline Conference, it is a virtual conference with more than 4,000 participants from 95 countries over the past four years. PIPELINE offers product development practitioners access to experts as well as practical information they can use right away – all from the comfort of their desks. From idea to launch to end-of-life, the content will appeal to any professional involved in the end-to-end product development process. In addition, the newly designed PIPELINE virtual platform serves as a resource center for 12 months following the live event with new content each quarter.

People who register for the conference get a free access to the resource center. PIPELINE 2013 was named Event of the Year category in Best in Biz Awards for virtual conference on innovative product development. For more information and to register, visit:

http://www.pipelineconference.com

I hope to see you online on June 6th for my presentation and the Q&A session!


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Inside Look at Culture of WordPress

Inside Look at Culture of WordPressInterview with Scott Berkun

I had the opportunity to sit down recently with fellow author Scott Berkun to talk with him about his new book The Year Without Pants, which catalogs his experience in two years with Automattic, the company that runs WordPress.com.

Our conversation touched on many different topics including innovation, collaboration, and organizational behavior.

For those of you who haven’t read the book or who aren’t familiar with how Automattic runs as an organization, here are some of the highlights:

  • All of the staff used to report to Matt Mullenweg, the 29-year-old creator of WordPress and founder of Automattic
  • When they passed 50 or so employees, about the time Scott Berkun joined, they introduced team leads
  • Organizational changes happen organically in the company, primarily when the pain gets great enough to force change
  • Automattic now has about 200 employees
  • Email is not the company communications standard – instead they use IRC and Skype and WordPress
  • Employees can work wherever they want
  • They have a company headquarters in San Francisco, but very few people work there
  • All employees get together in person annually and teams get together maybe twice in person to recharge intangibles
  • Hiring decisions are made not with traditional in-person interviews, but instead primarily by evaluating test projects
  • All new employees spend a couple of weeks working in support before occupying their intended role

Scott during his two years at Automattic led the Social team for WordPress.com and one of the things that he focused on while he was there, and that the book focuses on, is experimentation. One of the things that was fascinating in his detailing of his experience was that there was little resistance in his team to all of the experimentation that they engaged in. His theory was that they were ‘makers’ (he led a team of developers) and so they didn’t feel that there was a need to justify their existence. We spoke a great deal about why the culture at Automattic might be so accepting of experimentation, where other organizations are not, and this led to a discussion of some of my theories about the effects of scarcity and lack of firm growth, and we arrived at some of Scott’s comments that focused on the fact that there is too much fear in most organization and most managers don’t invest much time or effort in actually managing. Most managers don’t work to impact the feelings or environment for employees in companies that aren’t growing and/or where job opportunities are scarce. We then dug more into the culture topic.

Changing Culture is Painful

When it comes to culture change, there are a lot of consultants out there that would have you believe that they can come in an change your culture in 30-90 days, and while this might be possible it wouldn’t come without a great deal more pain than most organizations would be willing to bear. The reason a great deal of pain is required to affect culture change is the fact that an organization’s culture is typically determined by:

  1. The organizations cultural history and inertia
  2. The prevalent culture comes from the things that the largest number of people reinforce

So, in most cases changing the culture will require you to stop reinforcing behaviors that are reinforcing the current culture and start reinforcing behaviors that will lead you in the direction of the culture change you desire. What will this mean for the organization? Half the organization might leave! Are you ready for that? Many people who felt comfortable in the old culture, or that derived their power source from their old behaviors will need to be asked to leave the organization, or hopefully, will leave by their own efforts. Add into this potential chaos the fact that in most organizations the culture problem is often being created by the person asking for the culture change consulting, and how many consultants will reveal and stand behind this fact if it occurs?

One of the ways to ensure a healthy culture is constant experimentation driven by experiments that are instrumented for learning and dedicated to its pursuit. If an organization commits itself to a continuous practice of testing and learning within its management practices, in the same way that it hopefully dedicates itself to testing and learning with its products and services, then it has a much greater chance of maintaining a healthy, productive cultural environment. On the flip side, the way that we promote people in most organizations undermines the existence of a healthy, functional culture and so we need to rethink promotion. We need to ensure amongst other things that people with technical proficiency have a career path towards greater compensation that doesn’t have to include management responsibilities for those that don’t embrace the challenge and willingness to experiment in their management approaches. One of the reasons that Automattic’s culture is so strong, is because it was built to be entrepreneurial, collegial, and collaborative, and people are trusted to do what they do well (in their own way).

Of course I had to ask if people had left Automattic, and yes they have. In most cases the left to join other startups, and Scott believes that Automattic will probably stay in their minds one of the best places they worked.

Pressures From Outside

Another topic we touched on in our interview was whether or not Automattic felt pressure to make money faster after taking some VC rounds, but Scott said that while Automattic took some investment from VC’s, it was already profitable at the time and didn’t need the money but took the financing to gain other benefits and wasn’t under undue outside influence. As a result, Matt was able to purposely not assign a team or an individual to focus on growing revenue every quarter. he wanted to be careful not to turn up the monetization dial too fast because in doing so you often make bad decisions by doing so (product, etc.). There was no Store team when Scott joined, but there is now. Matt and team are very careful to maintain a long-term focus and they could easily monetize the 8th most popular web site more than they are (that’s a valuable asset), but are being careful in how they go about it.

Another thing I asked about was the impact on WordPress.com of things like Tumblr and Instagram and others, and Scott said that despite a lot of other companies and supposed competitors that have come along that have been hypothesized to supplant WordPress, they’ve never been super concerned. The reason?

WordPress itself is very flexible and so people are able to easily create themes that replicate the look and feel of a lot of the supposed competitors. The large WordPress community will build Tumblr like themes, etc. And the company itself is very resilient, and so when something new comes out, people will have a look at it and will either incorporate some of what they learn from it or ignore it if there doesn’t seem to be anything there. And, another point on the Automattic culture, if someone were to say “someone should…” in relation to something they see outside, then typically that person becomes the person to take it on.

There is a lot more I think we can learn from the Automattic experiment, and I may talk to Scott again to explore some of the learnings in the second half of the book, but wanted to rush these thoughts and nuggets from the conversation out to you. I hope they have been good for thought and you’ll think more if you’re a manager about what experiments you might run to see if you can make your group function even better.

Final Thoughts

Team size and how the organization grows up around its founder make a huge difference in how the culture evolves and reacts to its environment, and in Automattic Scott’s team was four when he started and nine when he left. The Theme team had 15 people on it, and the Happiness team (aka customer support) was the largest team at 25 people. One thing that happened along the way was when Scott’s Social team reached eight people it sort of naturally started to evolve into two separate sub-teams, which they called squads. Squad leadership was informal. There were no raises or title changes, and the squad leaders had naturally earned the most authority. They actually tried rotating leadership, but the results were mixed at best.

Another thing I asked Scott Berkun about team size was whether he thought the loose oversight and team structure would scale well as Automattic grows. He feels that it if they were to grow from say 200 to 1,000 employees they would probably insert another layer of management and break into groups of 100-150 people centered around product unit owners with teams underneath. This reinforces the thinking that they have at WL Gore, where they consciously spawn a new organization when it passes 60-70 people if my memory serves me correctly.


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Key to Innovation Success Revealed!

Key to Innovation Success Revealed!Achieving innovation success is not easy. Sustaining innovation success is even harder. The list of innovative companies that no longer exist is long, and some of the biggest enemies of innovation are ultimately complacency and resistance to change.

So what is the key to innovation success?

What lies beneath the artifacts of innovation success that we could point to in individuals or companies that we hold up as innovation heroes?

Well, as I tell the audiences of my keynotes, workshops and masterclasses around the world, innovation success rises up from the intersection of invention (which includes creativity), collaboration, and entrepreneurship. This is why you see these topics covered so much here on Human-Centered Change & Innovation.

Innovation is Invention Collaboration Entrepreneurship

Invention

Invention and creativity are incredibly important to innovation, but invention is not innovation and creativity is not innovation. Invention and creativity are but one component to creating successful innovation. And so yes, teaching your employees new creativity tools like SCAMPER or SIT, engaging in brainstorming activities after teaching people how to brainstorm properly, or providing your employees the space and time in their work lives to innovate will help you achieve greater innovation success, but they are not the secret. They are but one part.

Collaboration

There are a number of people traveling through the world of business and innovation literature spreading the myth that people are either innovative or they or not, that people either possess the innovator’s DNA or they don’t. To that I say “hogwash” (or sometimes something a little bit stronger). Innovation is a team sport and we all have a role to play. It is because of this belief that I created the Nine Innovation Roles and this framework for team-based innovation has resonated well with people all around the world. As a result, the Nine Innovation Roles from my book Stoking Your Innovation Bonfire have already been translated into Spanish, French, and Swedish, with Dutch and Chinese translations on the way soon. If you’re not familiar with the Nine Innovation Roles, they are:

  1. Revolutionary
  2. Artist
  3. Connector
  4. Magic Maker
  5. Customer Champion
  6. Judge
  7. Troubleshooter
  8. Conscript
  9. Evangelist

But understanding which of the Nine Innovation Roles you play on effective innovation teams is just the beginning. At the same time, we must begin to train our employees in the basic principles that power collaboration and teach them how to become effective collaborators. But collaboration is also only one component.

Entrepreneurship

Other than leadership, no other topic probably occupies a greater percentage of the space for business books in an American book store than entrepreneurship. This topic captivates the minds of people in the United States and in many other countries, and everywhere you go cities, states, countries, universities, and private companies are setting up incubators or startup accelerators to encourage entrepreneurship and innovation. This is important, but the importance of entrepreneurship is not limited only to the entrepreneur. At the same time, we must not forget the importance of intrapreneurship to the continuing health of our organizations. In some ways, intrapreneurship is MORE important to the innovation success of a country than entrepreneurship because collaborative, creative intrapreneurship is the flavor of entrepreneurship that keeps a country’s great companies alive (through this innovation intersection of course). Entrepreneurs and intrapreneurs are both important and we must consciously try to grow both in a successful society, and while intrapreneurs may not have the same tolerance for risk as an entrepreneur, they also need to understand how to make a business case and other core tenets of entrepreneurship.

Build a Common Language of Innovation

The Need to Integrate and Educate

I can state in no uncertain terms the importance for companies that are serious about innovation, and yes even countries or states or cities that are serious about innovation, to educate their people in the core knowledge, skills and abilities that relate to invention, collaboration and entrepreneurship. Companies need to educate their employees. Governments AND parents need to collaborate to teach their children. If you do this, your employees or your future citizens will have a much better chance of helping you achieve innovation success for your company or for your society. But even actively encouraging the intersection of invention, collaboration and entrepreneurship knowledge, skills, abilities and practice are not enough. The reason is because the power of this intersection does not represent the secret of innovation success. This intersection is central to sustained innovation success, but the secret lies elsewhere.

So what is the key to innovation success?

In one word?

The answer is…

CURIOSITY

Importance of Curiosity to InnovationDictionary.com defines curiosity as “the desire to learn or know about anything; inquisitiveness.”

Merriam-Webster defines curiosity as “Desire to know… Inquisitive interest in others’ concerns…Interest leading to inquiry

The reason that curiosity is the secret to innovation success is that the absence of curiosity leads to acceptance and comfort in the status quo. The absence of curiosity leads to complacency (one of the enemies of innovation) and when organizations (or societies) become complacent or comfortable, they usually get run over from behind. When organizations or societies lack curiosity, they struggle to innovate. Curiosity causes people to ask ‘Why’ questions and ‘What if’ questions. Curiosity leads to inspiration. Inspiration leads to insight. Insights lead to ideas. And in a company or society where invention, collaboration and entrepreneurship knowledge, skills, abilities and practice are encouraged, ideas lead to action.

So, if you want to have innovation success in your company or in your society, you must work to create a culture that encourages curiosity instead of crushing it. Unfortunately technology and the educational system in the United States and the rallying cry of “More STEM!” are having the unintended consequence of crushing creativity and creating a generation of trivia experts and linear thinkers for our society. We as parents and educators and managers must as a result seek to undo some of this damage. If you haven’t already read it, I encourage you to check out my article ‘Stop Praying for Education Reform‘.

Key to Innovation Success Revealed!We must find ways to reawaken the curiosity of our employees, to keep them curious, and to keep the curiosity of our children alive. We must find a way to fight against the tyranny of linear thinking and the ‘right’ answer, and instead inspire our children to continue asking ‘why’ – despite the fact that sometimes it can be annoying. 😉

To close I will leave you with a bastardized quote from the most interesting man in the world:

“Stay curious my friend.”

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