Category Archives: Innovation

Top 10 Human-Centered Change & Innovation Articles of January 2025

Top 10 Human-Centered Change & Innovation Articles of January 2025Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are January’s ten most popular innovation posts:

  1. A Toolbox for High-Performance Teams — by Stefan Lindegaard
  2. Top 100 Innovation and Transformation Articles of 2024 — Curated by Braden Kelley
  3. The Twelve Killers of Innovation — by Robyn Bolton
  4. Building Trust for High Performing Teams — by David Burkus
  5. Be Ridiculously Easy to Do Business With — by Shep Hyken
  6. Uncertainty Isn’t Always Bad — by Mike Shipulski
  7. The Real Winners of Mega Events — by Shep Hyken
  8. Five Must Reads for 2025 — by Robyn Bolton
  9. Don’t Slow Roll Your Transformation — by Geoffrey A. Moore
  10. Is it Time to ReLearn to Work? — by Geoffrey A. Moore

BONUS – Here are five more strong articles published in December that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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When Best Practices Become Old Practices

When Best Practices Become Old Practices

GUEST POST from Mike Shipulski

When best practices get old, they turn into ruts of old practice. No, it doesn’t make sense to keep doing it this way, but we’ve done it this way in the past, we’ve been successful, and we’re going to do it like we did last time. You can misuse old practices long after they’ve withered into decrepit practices, but, ultimately, your best practices will turn into old practices and run out of gas. And then what?

It’s unskillful to wait until the wheels fall off before demonstrating a new practice – a new practice is a practice that you’ve not done before – but that’s what we mostly do. There’s immense pressure to do what we did last time because we know how it turned out last time. But when the environment around a process changes, there’s no guarantee that the output of the old process will adequately address the changing environment. What worked last time will work next time, until it doesn’t.

But there’s another reason why we don’t try new practices. We’ve never taught people how to do it. Here are some thoughts on how to try new practices.

  • If you think the work can be done a better way, try a new practice, then decide if it was better. If the new practice was better, do it that way until you come up with an even better practice. Rinse and repeat.
  • Don’t ask, just try the new practice.
  • When you try a new practice, do it in a way that is safe to fail. (Thanks to Dave Snowden for that language.) Like before you use a new cleaning product to remove a stain on your best sweater, test the new practice in a way that won’t ruin your sweater.
  • If someone asks you to use the old practice instead of trying the new practice, ask them to do it the old way and you do it the new way.
  • If that someone is your boss, tell them you’re happy to do WHAT they want but you want to be the one that decides HOW to do it.
  • If your boss still wants you to follow the old practice, do it the old way, do it the new way, and look for a new job because your boss isn’t worth working for.

Just because best practices were best last time, doesn’t mean they’re good practice this time.

Image credits: Pixabay

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99% of Companies Failed to Do This Last Year

99% of Companies Failed to Do This Last Year

GUEST POST from Art Inteligencia

In today’s rapidly changing business landscape, one essential activity that 99% of companies failed to prioritize last year is conducting regular independent customer and employee experience audits. These audits are critical for understanding the current state and potential improvements needed to enhance engagement, loyalty, and satisfaction among customers and employees.

For most companies, customer and employee experiences are the backbone of their success. A business can’t thrive without satisfied customers buying their products or services, and employees are the driving force behind delivering these experiences. Despite this understanding, many businesses neglect the proactive steps necessary to evaluate and enrich these experiences systematically utilizing unbiased external third parties to walk the experiences and document friction points and opportunities.

Is your company part of the 99% that failed to conduct both an independent customer experience audit and an independent employee experience audit last year?

If you are part of the 1%, please be sure and leave some thoughts about the experience (no pun intended) in the comments!

Why Independent Experience Audits Matter

Independent experience audits are comprehensive reviews of interactions customers and employees have with a company performed by an unbiased external resource. They help identify pain points and opportunities for improvement. These audits should be performed regularly as they can reveal insights into:

  • The alignment between company offerings and customer needs.
  • The effectiveness of internal processes in promoting a positive work environment.
  • The coherence of brand values with actual customer and employee experiences.
  • Emerging trends and preferences that might impact future strategies.

“73% of customers are willing to pay more for a great customer experience.” – Temkin Group

Despite the apparent value proposition of these independent audits, why are so many companies still overlooking them? The constraints are often a mix of perceived complexity, lack of in-house expertise, or prioritization of immediate financial metrics over strategic insights. However, history has shown that organizations that adapt ahead of changes in expectations are better positioned to succeed over those that react out of necessity.

Case Study 1: An Overlooked Opportunity – Company X

Company X, a well-established retail brand, faced declining sales figures and employee turnover. Their product line remained strong, and pay scales were competitive. However, deeper insights revealed that customer experiences were inconsistent, and employees often felt disengaged due to a lack of communication and growth opportunities.

Recognizing the signs, Company X engaged in a comprehensive independent experience audit. The audit discovered two key issues:

  • Customer Experience: Customers reported a lack of personalization in their shopping journey, expressing frustration over disconnected in-store and online experiences.
  • Employee Experience: Employees felt unappreciated, with inadequate feedback channels and professional development options.

Armed with these insights, Company X implemented a strategy that enhanced personalized shopping experiences using AI-driven recommendations and integrated both digital and physical stores for seamless customer journeys. Simultaneously, they developed a robust internal communication framework that empowered employees through regular feedback and offered career progression pathways.

Within six months post-intervention, Company X witnessed a 15% increase in customer satisfaction scores and a 20% decrease in employee turnover—solidifying the importance of independent experience audits.

Case Study 2: A Success Story – Company Y

Company Y, on the other hand, already valued independent customer and employee experience audits as a vital component of their corporate strategy. As a result, they experienced steady growth and minimal churn rates despite operating in the highly competitive tech industry.

Company Y conducts bi-annual audits using a company like HCLTech, reviewing user interactions with their software products and collecting feedback through employee surveys intertwined with one-on-one interviews. They discovered that:

  • Customer Experience: The need for improved user interface intuitiveness was prevalent, prompting a user-centered design overhaul that optimized performance and usability.
  • Employee Experience: Although engagement levels were high, team collaboration across departments showed potential for enhancement.

By proactively addressing these issues, Company Y not only improved its software product, which increased customer retention by 25%, but also invested in team-building exercises and diversified project teams, leading to more innovative solutions and a dynamic organizational culture.

How to Implement Experience Audits in Your Organization

To avoid the common pitfalls highlighted, businesses need to incorporate independent experience audits into their regular strategic evaluations. Here’s a simplified approach to getting started:

  1. Define Objectives: Clearly identify what you aim to discover with the audit. Are you focusing on loyalty, satisfaction, efficiency, or a combination?
  2. Select a Partner: Choose an independent resource that is experienced, trustworthy and thorough in their activities to assess and document their findings as they walk the critical components of your customer and employee experiences.
  3. Gather Data: Utilize surveys, interviews, focus groups, and data analytics to collect comprehensive insights.
  4. Analyze Findings: Categorize feedback to identify consistent patterns, pain points, and potential areas for improvement.
  5. Develop an Action Plan: Prioritize issues by impact and feasibility, then devise a strategy that aligns with your company’s goals.
  6. Implement Changes: Address the identified opportunities with targeted interventions, ensuring stakeholders are engaged and informed.
  7. Measure Impact: Continuously track the effectiveness of changes and refine strategies as necessary.

Conclusion

Independent experience audits are not just a ‘nice to have’ but a strategic necessity. Companies can no longer afford to be complacent; they must take actionable insights from these audits to craft memorable and meaningful experiences for their customers and employees. Companies like Y that put independent experience audits at the heart of their strategy invariably found themselves robust against industry challenges, offering lessons that the broader business community should heed.

“Companies that excel at customer experience are 60% more profitable than their peers.” – Gartner

If you would like to engage an unbiased external person like Braden Kelley to conduct a customer experience and/or employee audit for you this year to join the 1% leapfrogging their competition, contact us!

Bottom line: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pixabay

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Which Go to Market Playbook Should You Choose?

Which Go To Market Playbook Should You Choose?

GUEST POST from Geoffrey A. Moore

Life-cycle go-to-market has been the focus of much of my life’s work, and I had the opportunity to recap that experience at a recent chalk talk at the HackerDoJo in Mountain View. It turned out that most of what I had to say was captured on a single slide. For readers over the age of X, this may be familiar territory; for those under the age of Y, it may prove new.

This framework highlights four different go-to-market playbooks, each optimized for a different stage of the Technology Adoption Life Cycle. The two key takeaways are:

  1. The playbook that creates success in any given stage will under-perform at any of the other three, and
  2. The playbooks do not blend; instead, they actually undercut each other when combined.

Thus, the number one job of the go-to-market strategy-setting leader is to get the entire team aligned around one, and only one, playbook.

Now, full disclosure, because different segments of the market can be in different phases of the life cycle, a go-to-market organization can be running more than one play at the same time. What they must not do is run more than one at the same time in the same place!

The Early Market Playbook

The focus of this play is to engage with a visionary customer executive who wants to leverage disruptive technology to change the world. Because your technology has yet to be adopted, the category does not yet exist, and thus there is no budget for your product. As a result, it must be funded as a project, and the customer executive has to be senior enough to have the clout to extract the necessary funds from the enterprise’s existing resource pool. Your job is to inspire that executive, hence the emphasis on thought leadership marketing to connect your breakthrough technology to their compelling business vision. It makes for a wild ride, to be sure, but when successful, it puts your company on the map as the company that did what!?!? There still is no market, there still is no budget, but there is buzz, and that buzz is associated with you, provided, that is, that your target customer is a marquee brand that people look up to. For Salesforce in its early days, this was Merrill Lynch. For Amazon Web Services in its early days, this was the CIA. For OpenAI recently, this was Microsoft.

The Bowling Alley Playbook

This is the playbook described in Crossing the Chasm. Its focus is to engage with a pragmatic business manager who is responsible for a deteriorating business process that is causing increasing problems for their enterprise, and thus, urgently needs a fix. All the conventional approaches have been found wanting, and so this prospect is open to a disruptive approach, but only if it commits to solving its specific problem. There is budget to spend here although at present it is allocated to traditional approaches. As a result, the sales cycle begins with winning the right to redirect that spend. Sales success depends on your company demonstrating a deep understanding of the problem state followed by a clear explanation of why your technology can succeed where traditional approaches fail. Implementation success depends on bringing together a team that can solve the problem end to end, leveraging domain expertise with technological leverage, to deliver what Ted Levitt taught us to call the whole product (the minimum set of products and services needed to eliminate the problem). From a market development strategy point of view, the key is to focus on a single use case in a single industry in a single geography, the goal being to develop a congregation of successful companies that will serve as a reference base as well as a loyal customer base. That is how desktop publishing helped give birth to the Mac Faithful.

The Tornado Playbook

This is the playbook that drives The Gorilla Game, a market share land grab that catapults a single company to stratospheric valuation, dragging a cohort of close contenders in its wake, resulting in the gigantic market caps that motivate early-stage venture capital investing. It is triggered by a tipping point in the adoption life cycle when pragmatic customers’ resistance to early adoption is overcome by their fear of missing out. In a flash, the new paradigm becomes the new mandate—we must have mobile apps, we must transition to cloud computing, we must procure software as a service. Budgets sprout up everywhere like mushrooms, and they are there for the picking. All this rewards a “Just win, baby” approach to go-to-market, characterized by as broad a coverage model as possible combined with highly disciplined sales tactics. RFPs (Requests for Proposals) are prevalent, driving both pilot projects and bake-offs, with marketing focusing primarily on competitive differentiation and pricing discounts. Importantly, whichever vendor wins the first pick becomes that customer’s incumbent, giving it privileged access to future purchases. Just as importantly, if one company becomes the clear market share leader, then the ecosystem of supporting companies rallies around it, elevating its competitive advantage to gorilla status.

The Main Street Playbook

This is the playbook that drives sustained earnings growth in markets that have adopted the new technology and now seek to maintain it over as long a useful lifetime as possible. At this stage, customers prefer to work with their incumbent vendors and over time to consolidate around a smaller set of integrated suites. These suites serve as platforms for ongoing innovations that are sustaining rather than disruptive, something that bores visionaries but appeals greatly to pragmatists and even more so to conservatives. In the land-and-expand as-a-service business model, we are in the expansion phase, and the growth goal is to cross-sell and up-sell new service transactions, and the earnings goal is to maximize renewals and minimize attrition. Telemetry about user adoption and feature usage is mission-critical to this effort, enabling both account managers as well as the software itself to guide the customer’s buying decisions. Product-led growth supported by self-service transactions is mission-critical for consumer applications and other user-driven offers. For enterprise sales, packaging up sets of requirements and aligning with the customer’s procurement cycle calls for the kind of account management we used to call farming and now call customer success.

Final Takeaway

Each of these playbooks makes distinctly different demands of the marketing, sales, and services teams running the go-to-market effort. People talented at one type of play may struggle with another. Our tendency as human beings is to want to stick with what we are good at, so it is usually wise to empower a new leader whenever you change playbooks.

That’s what I think. What do you think?

Image Credit: Pixabay

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How Courage and Trust are Transforming Bayer

Fewer Rules and Better Results

How Courage and Trust are Transforming Bayer

GUEST POST from Robyn Bolton

“Consider this question: If workers are hobbled by 1,000 rules, does it make a meaningful difference to reduce them to only 900?”

The answer is No.  In fact, this is precisely why most attempts at fighting bureaucracy fail – and why true transformation requires starting completely fresh.

Bill Anderson, CEO of Bayer, knows this and isn’t afraid to admit it.  When he took the helm in June 2023, he discovered a company paralyzed by bureaucracy. Instead of trying to optimize the system, he looked at the company’s “1,362 pages” of employee rules and knew the entire structure needed to change.

Breaking the Stranglehold

As Anderson stated in Fortune, “There was a time for hierarchical, command-and-control organizations – the 19th century, to be exact, when many workers were illiterate, information traveled at a snail’s pace, and strict adherence to rules offered the competitive advantage of reliability.”

The modern reality is different. Today’s Bayer employs highly skilled experts, operates at digital speed, and competes in markets where, as Anderson observes, “the most reliable companies are the most dynamic.”

The challenge wasn’t just the encyclopedic rule book. The organization’s “12 levels of hierarchy” created what Anderson called “unnecessary distance between our teams, our customers, and our products.” In today’s innovation-driven market, this industrial-age structure threatened the company’s future.

Unleashing Innovation

Anderson’s solution? “Dynamic Shared Ownership” – a radical model that puts 95% of decision-making in the hands of the people actually doing the work. Instead of annual budgets and endless approvals, self-directed teams work in 90-day sprints with the autonomy to make real-time decisions.

The results are already showing. Take Vividion, Bayer’s independently operated subsidiary. Operating in small, autonomous teams, they went from FDA approval to first patient dosing in just six weeks. They’re now on track to produce one or two new drug candidates for clinical testing every year.

Speed Becomes Reality

The impact extends across the organization. Bayer’s scientists have transformed their plant breeding process, reducing cycles from “five years down to merely four months.”

In the consumer health division, teams have accelerated their development timelines significantly, reducing product launch schedules “by up to nine months” in Asia. Within their first two months under the new system, these teams generated millions in additional value.

While financial markets remain uncertain about this transformation, one crucial metric suggests it’s working: employee retention has improved. The scientists, researchers, and product developers – the people doing the innovative work – are showing their confidence in this dramatic shift toward autonomous operation.

Why This Matters & What to do Next

For most of us, the question isn’t whether our organization has too much bureaucracy – it almost certainly does. The question is: what are you going to do about it?

Try this – Create a small, autonomous team with a 90-day mission. Give them real decision-making power and see what they can accomplish when freed from bureaucratic constraints.

Remember Anderson’s key insight: reducing rules from 1,000 to 900 won’t create meaningful change. Real transformation requires the courage to fundamentally rethink how work gets done.

For anyone who’s ever felt the soul-crushing weight of bureaucracy, Bayer’s radical reinvention offers hope. Maybe the path to innovation isn’t through better rules and processes, but through the courage to trust in human potential.

Image credit: Unsplash

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Top 10 Human-Centered Change & Innovation Articles of December 2024

Top 10 Human-Centered Change & Innovation Articles of December 2024Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are December’s ten most popular innovation posts:

  1. Top Six Trends for Innovation Management in 2025 — by Jesse Nieminen
  2. Best Team Building Exercise Around — by David Burkus
  3. You Are Doing Strategic Planning Wrong (According to Seth Godin) — by Robyn Bolton
  4. Why Annual Employee Experience Audits Are Important — by Braden Kelley and Art Inteligencia
  5. Don’t ‘Follow the Science’, Follow the Scientific Method — by Pete Foley
  6. Artificial Innovation — by Braden Kelley
  7. Dynamic Thinking — by Mike Shipulski
  8. The State of Customer Experience and the Contact Center — by Shep Hyken
  9. The Duality of High-Performing Teams — by David Burkus
  10. Uber Economy is Killing Innovation, Prosperity and Entrepreneurship — by Greg Satell

BONUS – Here are five more strong articles published in November that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

SPECIAL BONUS: While supplies last, you can get the hardcover version of my first bestselling book Stoking Your Innovation Bonfire for 44% OFF until Amazon runs out of stock or changes the price. This deal won’t last long, so grab your copy while it lasts!

Build a Common Language of Innovation on your team

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

There is Nothing Without Trust

There is Nothing Without Trust

GUEST POST from Mike Shipulski

If someone treats you badly, that’s on them. You did nothing wrong.

When you do your best and your boss tells you otherwise, your boss is unskillful.

If you make a mistake, own it. And if someone gives you crap about it, disown them.

If someone is untruthful, hold them accountable. If they’re still untruthful, double down and hold them accountable times two.

If you’re treated unfairly, it’s because someone has low self-esteem. And if you get mad at them, it’s because you have low self-esteem.

What people think about you is none of your concern, especially if they treat you badly.

If you see something, say something, especially when you see a leader treat their team badly.

A leader that treats you badly isn’t a leader.

If you don’t trust your leader, find a new leader. And if you can’t find a new leader to trust, find a new company.

If someone belittles you, that’s about them. Try to forgive them. And if you can’t, try again.

No one deserves to be treated badly, even if they treat you badly.

If you have high expectations for your leader and they fall short, that says nothing about your expectations.

If someone’s behavior makes you angry, that’s about you. And when your behavior makes someone angry, the calculus is the same.

When actions are different from the words, believe the actions.

When the words are different than the actions, there can be no trust.

The best work is built on trust. And without trust, the work will not be the best.

If you don’t feel comfortable calling people on their behavior it’s because you don’t believe they’ll respond in good faith.

If you don’t think someone is truthful, nothing good will come from working with them.

If you can’t be truthful it’s because there is insufficient trust.

Without trust there is nothing.

If there’s a mismatch between someone’s words and their actions, call them on their actions.

If you call someone on their actions and they use their words to try to justify their actions, run away.

Image credits: Unsplash

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Lean is the Enemy of Learning

And Other Counterintuitive Lessons from a Day at MIT

Lean is the Enemy of Learning

GUEST POST from Robyn Bolton

I firmly believe that there are certain things in life that you automatically say Yes to.  You do not ask questions or pause to consider context. You simply say Yes:

  1. Painkillers after a medical procedure
  2. Warm blankets
  3. The opportunity to listen to brilliant people talk about things that fascinate them.

So, when asked if I would like to attend an Executive Briefing curated by MIT’s Industrial Liaison Program, I did not ask questions or pause to check my calendar.  I simply said Yes.

I’m extremely happy that I did because what I heard blew my mind.

Lean is the enemy of learning

When Ben Armstrong, Executive Director of MIT’s Industrial Performance Center and Co-Lead of the Work of the Future Initiative, said, “To produce something new, you need to create a lot of waste,” I nearly lept out of my chair, raised my arms, and shouted “Amen brother!”

He went on to tell the story of a meeting between Elon Musk and Toyota executives shortly after Musk became CEO.  Toyota executives marveled at how quickly Tesla could build an EV and asked Musk for his secret.  Musk gestured around the factory floor at all the abandoned hunks of metal and partially built cars and explained that, unlike Toyota, which prided itself on being lean and minimizing waste, Tesla engineers focused on learning – and waste is a required part of the process.

We decide with our hearts and justify with our heads – even when leasing office space

John E. Fernández, Director of MIT’s Environmental Solutions Initiative, shared an unexpected insight about selling sustainable buildings effectively.  Instead of hard numbers around water and energy cost savings, what convinces companies to pay the premium for Net Zero environments is prestige.  The bragging rights of being a tenant in Winthrop Center, Boston’s first-ever Passive House office building, gave developers a meaningful point of differentiation and justified higher-than-market-rate rents to future tenants like McKinsey and M&T Bank.

49% of companies are Silos and Spaghetti

I did a hard eye roll when I saw Digital Transformation on the agenda.  But Stephanie Woerner, Principal Research Scientists and Executive Director for MIT’s Center for Information Systems Research, proved me wrong by explaining that Digital Transformation requires operational excellence and customer-focused innovation.

Her research reveals that while 26% of companies have evolved to manage both innovation and operations, operate with agility, and deliver great customer experiences, nearly half of companies are stuck operating in silos and throwing spaghetti against the wall.  These “silo and spaghetti companies” are often product companies rife with complex systems and processes that require and reward individual heroics to make progress. 

What seems like the safest option is the riskiest

How did 26% of companies transform while the rest stayed stuck or made little progress?  The path forward isn’t what you’d expect. Companies that go all-in on operational excellence or customer innovation struggle to shift focus and work in the other half of the equation.  But doing a little bit of each is even more risky because the companies often wait for results from one step before taking the next.  The result is a never-ending transformation slog that is eventually abandoned.

Academia is full of random factoids

They’re not random to the academics, but for us civilians, they’re mainly helpful for trivia night:

  • 50% of US robots are used in the automotive industry
  • <20% of manufacturing job descriptions require digital skills (yes, that includes MS Office)
  • Data centers will account for 8-21% of global energy demand by 2030
  • Energy is 10% of the cost but 90% of the cost of mining bitcoin
  • Cities take up 3% of the earth’s surface, contain 33% of the population, account for 70% of global electricity consumption, and are responsible for 75% of CO2 emissions

Why say Yes

When brilliant people talk about things they find fascinating, it’s often because those things challenge conventional wisdom. The tension between lean efficiency and innovative learning, the role of emotion in business decisions, and the risks of playing it too safe all point to a fascinating truth: sometimes the most counterintuitive path forward is the most successful. 

How have you seen this play out in your work?

Image credit: Unsplash

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When Scaling Innovation Backfires

How One Company Became the Theranos of Marshmallows

When Scaling Innovation Backfires

GUEST POST from Robyn Bolton

Here’s a head-scratcher when it comes to scaling innovation: What happens when your innovative product is a hit with customers, but you still fail spectacularly? Just ask the folks behind Smashmallow, the gourmet marshmallow company that went from sweet success to sticky situation faster than you can say “s’mores.”

The Recipe for Initial Success

Jon Sebastiani sold his premium jerky company Krave to Hershey for $240 million and thought he’d found his next billion-dollar idea in fancy French marshmallows. And initially, it looked like he had. 

Smashmallow’s artisanal, flavor-packed treats weren’t just another fluffy, tasteless sugar puff – they created an entirely new snack category. Customers couldn’t get enough of their handcrafted, churro-dusted, chocolate-chip-studded clouds of happiness. The company hit $5 million in sales in its first year, doubled that the next, and was available in 15,000 stores nationwide in only its third year.

Sounds like a startup fairy tale, right? Right!  If we’re talking about the original Brothers Grimm versions.  Corporate innovators start taking notes.

The Candy-coated Vision

Sebastiani and his investors weren’t content with building a successful premium regional brand. They wanted to become the Kraft of craft marshmallows, scaling from artisanal to industrial without losing what made the product special. It’s a story that plays out in corporations every day: the pressure to turn every successful pilot into a billion-dollar business.

So, they invested.  Big time.

They signed a contract with “an internationally respected builder of candy-making machines” to design and build a $3 million custom-built machine and another with a copacker to build an entirely new facility to accommodate the custom machine.

Bold visions require bold moves, and Sebastiani was a bold guy.

The Scale-up Meltdown

But boldness can’t overcome reality, and the custom machine couldn’t replicate the magic of handmade marshmallows. It couldn’t even make the marshmallows.

Starch dust created explosion hazards. Cinnamon wouldn’t stick. Workers couldn’t breathe through spice clouds. The handmade ethos of imperfect squares gave way to industrialized perfection. Each attempt to solve one problem created three more, like a game of confectionery whack-a-mole.

By 2022, Smashmallow was gone, leaving behind a cautionary tale about the gap between what customers value and what executives and investors want. The irony? They succeeded in their mission to disrupt the market – by 2028, the North American marshmallow market is projected to more than double its 2019 size, largely thanks to the premium category Smashmallow created. They just won’t be around to enjoy it.

A Bittersweet Paradox

For so many corporate innovators, this story hits close to home. How many promising projects died not because customers didn’t love them but because they couldn’t scale to “move the needle” for a multi-billion dollar corporation? A $15 million business might be a champagne-popping moment for an entrepreneur, but it barely registers as a rounding error on a Fortune 500 income statement.

This is the innovation paradox facing corporate innovators: The very pressure to go big or go home often destroys what makes an innovation special in the first place. It’s not enough to create something customers love – you must create something that can scale to satisfy the corporate appetite for growth.

Finding the Sweet Spot

The lesson isn’t that we should abandon ambitious scaling plans. Instead, we must be brutally honest about whether our drive for scale aligns with what makes our innovation valuable to customers. If it doesn’t, we must choose whether to scale back our ambitions (unlikely) or let go of our successful-but-small idea.   

After all, not every marshmallow needs to be a mountain, but every mountain climber (that’s you) needs a mountain.

Image credit: Unsplash

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Innovation or Not – The VR Path to the Super Bowl

Innovation or Not - The VR Path to the Super Bowl

GUEST POST from Art Inteligencia

In the competitive arena of sports, athletes and coaches are perpetually seeking the next edge, the innovative stroke of genius that will propel them towards success. Enter Jayden Daniels, a pioneer quarterback who has embraced one of the most cutting-edge tools in sports performance enhancement: Virtual Reality (VR) training. Is this a true innovation or just another gimmick? Let’s journey through the lens of Jayden’s experience and see how this technology is reshaping the sporting world.

The Virtual Reality Revolution in Sports

For decades, athletes have relied on traditional training regimes, focusing on physical conditioning and repetitive skill drills. However, VR has transformed the landscape by introducing immersive environments where athletes can practice without the physical constraints of time, space, or risk of injury. Through VR headsets and meticulously simulated environments, players like Jayden Daniels are able to visualize and rehearse plays and strategies, improve their decision-making, and enhance their mental resilience.

“VR training is like a playbook come to life—it gives players the opportunity to be in the game without being on the field.”

Realizing this potential, Daniels incorporated VR training into his routine, and the results have been phenomenal. His ability to read defenses and execute plays has been augmented by this technology, helping him transition from mere player to game-changer.

Here is a video that tells the in depth story with commentary, but it won’t let me embed it here so just click the link in the box to watch it on YouTube:

EDITOR’S NOTE: Key takeaways include the technology’s ability to run at 1.75x speed so that on game day things slow down for the quarterback and he is able to engage in extra preparation without the entire team having to be present, and even to familiarize himself with away stadium nuances like where the play clocks are, etc.

Case Study #1: The Championship Turnaround

One of the most striking illustrations of VR’s impact occurred during a pivotal championship game. Daniels’ team was facing a formidable opponent known for their complex defensive schemes. The team’s traditional preparation methods were proving inadequate against such a sophisticated defense.

In the weeks leading to the game, Daniels immersed himself in VR simulations of the opponent’s defense. He studied every blitz, every zone coverage, and every adaptive quirk under the close guidance of his coaches, who were able to create a virtual replica of the team they were facing. By the time the championship game arrived, Daniels was not only prepared—he was several steps ahead.

During the game, his performance was near flawless. He anticipated defensive movements with uncanny accuracy, leading his team to a come-from-behind victory that analysts credited in large part to his innovative use of VR.

The MVP Moment

This VR-driven insight culminated in one memorable play: a perfectly executed fake pass that caught the opposing defense entirely off-guard, leading to the game-winning touchdown. This wasn’t just victory—it was an unveiling of how technology and sport can harmonize to create extraordinary outcomes.

Case Study #2: The Rival Rumble

In another celebrated match-up, Daniels faced his long-time rivals—a team that had bested his own in recent seasons. Known for their reactive plays and dynamic shifts, this opponent posed a considerable mental challenge that extended beyond physical prowess.

Once again, VR training became Daniels’ secret weapon. By simulating hundreds of scenarios, his VR regimen enabled him to practice responses to the rival’s play-calling tendencies, helping him build a memory bank of potential outcomes and counter-strategies.

When faced with crucial decisions on the field, Daniels was markedly less stressed and more composed. He deftly outmaneuvered the rival’s defense, leading his team to a decisive victory, and doing so with an air of confidence that captivated spectators and silenced skeptics.

The VR Vision

By the end of the season, Daniels had not only improved his own performance but had also inspired a wave of interest and investment in VR training across the league. Teams began revisiting their training paradigms, nudging the sports industry towards a more tech-savvy future.

Innovation or Not?

Jayden Daniels’ success with VR training may invite debates about whether this is innovation or merely a novel tool in an athlete’s repertoire. Regardless of where you stand, what cannot be denied is the transformative impact VR has had on enhancing an athlete’s strategic prowess and mental fortitude.

Beyond just quick optical improvements, VR training stands at the intersection of cognitive science and performance enhancement, offering a paradigm where mental sharpness is honed in tandem with physical capabilities. For Daniels, and countless athletes following in his footsteps, VR presents a formidable new teammate in their quest for greatness.

As we stand at the threshold of a technologically enhanced sports era, the question still lingers in the locker room and boardrooms: Is VR the future of sports training, or just another fleeting fad? For Jayden Daniels, it’s clear that VR is more than just a tool—it’s a revelation.

Image credit: Wikimedia Commons – All-Pro Reels of District of Columbia, USA

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