If you don’t know what the problem is, that’s your first problem.
A problem can’t be a problem unless there’s a solution. If there’s no possible solution, don’t try to solve it, because it’s not a problem.
If there’s no problem, you have a big problem.
If you’re trying to solve a problem, but the solution is outside your sphere of influence, you’re taking on someone else’s problem.
If someone tries to give you a gift but you don’t accept it, it’s still theirs. It’s like that with problems.
If you want someone to do the right thing, create a problem for them that, when solved, the right thing gets done.
Problems are good motivators and bad caretakers.
A problem is between two things, e.g., a hammer and your thumb. Your job is to figure out the right two things.
When someone tries to give you their problem, keep your hands in your pockets.
A problem can be solved before it happens, while it happens, or after it happened. Each time domain has different solutions, different costs, and different consequences. Your job is to choose the most appropriate time domain.
If you have three problems, solve one at a time until you’re done.
Solving someone else’s problem is a worst practice.
If you solve the wrong problem, you consume all the resources needed to solve the right problem without any of the benefits of solving it.
Ready, fire, aim is no way to solve problems.
When it comes to problems, defining IS solving.
If you learn one element of problem-solving, learn to see when someone is trying to give you their problem.
Image credit: Pixabay
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Leveraging the Three Horizons for Tomorrow’s Triumphs
GUEST POST from Teresa Spangler
The future belongs to those who prepare for it today. As we stand at the dawn of the AI revolution, we must not merely adapt to change; we must anticipate it, shape it, and turn it to our advantage. Embracing the three horizons of AI is not just about technology or strategy; it’s about purpose – our purpose as leaders to guide our organizations, our people, and our society into a prosperous, equitable, and truly human future.
Teresa Spangler
As we turn the page on a year of profound transformation, the horizon of 2024 and beyond takes shape. Artificial Intelligence (AI) is steadfastly marching forward, and as leaders, the pressing call to pilot our organizations through these new frontiers couldn’t be more poignant. We must explore how executive leadership can initiate actionable measures today to harness tomorrow’s opportunities.
As the silhouette of 2024 looms ahead, we realize that maneuvering through the turbulent waters of change requires not just a reactive approach, but a meticulously charted plan. A navigational tool that can prove invaluable in this journey is the Three Horizons framework for futures planning. This framework allows us to methodically comprehend, envision, and shape our path through the cascading waves of AI development. By exploring each horizon in detail, we can create a strategic roadmap that integrates immediate actions, mid-term plans, and long-term visions. Let’s delve deeper into this process, beginning with the groundwork of understanding today’s AI landscape.
The Groundwork: Understanding Today’s AI Landscape – Horizon 1
Diving into the fast-paced whirlwind of AI, a comprehensive grasp of today’s landscape is the cornerstone for future triumphs. Familiarity with various AI technologies, like machine learning, natural language processing, robotics, and computer vision, is now an indispensable part of the executive toolkit. However, a theory is merely the starting point.
Turning this knowledge into strategic assets necessitates that you:
Actively interact with AI tools like, ChatGPT, DALL-E, DeepArt and DeepDream, Stable Diffusion, Midjourney …etc. Developing even rudimentary AI models with platforms like TensorFlow or PyTorch can shed light on AI’s potential and limitations. For instance, IBM’s Project Debater showcases how AI can understand the context and form logical arguments, pushing the boundary of natural language processing.
Forecast AI’s immediate future is leveraging trends in AI research, market dynamics, societal needs, and regulatory shifts. Access the best industry reports and collaborate with external experts that offer invaluable insights. A recent McKinsey report, for instance, found that companies integrating AI were nearly twice as likely to be top-quartile performers in their industry.
It’s widely acknowledged that AI will significantly alter the dynamics of how our world operates. While the intricacies of this transformation can seem complex, it’s certainly not an insurmountable challenge! The Three Horizons methodology is one of many effective strategies your organization can adopt to manage this transition. By strategically navigating through these horizons with a cohesive team and a well-articulated plan, your organization will be well-positioned to embrace the AI revolution. Here are a few other methodologies you might consider:
Scenario Planning: This approach involves envisioning different future states and developing strategies to succeed in each potential scenario.
Backcasting: Starting with a desirable future end-state, this method works backward to identify the strategic steps required to reach that goal.
Roadmapping: This technique charts out the evolution of technologies and products, helping you understand how technological progress might affect your business over time.
Choosing the right methodology will depend on your specific circumstances and objectives. Regardless of the approach, remember that the key to success lies in aligning your team and developing a clear, comprehensive plan of action.
On to Horizon 2 & 3
Navigating the Waves: Crafting the Mid-Term AI Future – Horizon 2
As part of the C-suite, your role extends beyond mere reactions to change – you’re a herald of future trends. Structuring the mid-term AI future necessitates:
Assimilating the implications of AI for your industry. Evaluate how job roles might evolve, identify the ethical and privacy concerns, and understand the geopolitical interplays of AI on your global strategies. For instance, AI-driven automation could reshape employment, as seen with Amazon’s warehouse robots.
Tailoring a 3-5 year forecast using foresight platforms like FuturePlatform to incorporate technological breakthroughs, policy changes, societal trends, and economic factors. Staying informed about AI regulations through think tanks like the AI Now Institute can help you navigate this complex terrain.
Setting the Sails: Envisioning a Decade Ahead – Horizon 3
Leadership in the AI epoch means having the courage to gaze beyond the immediate future. For the long-term horizon, consider the following:
Contemplating the possibilities. Quantum computing, advanced neural networks, and sophisticated AI-human interfaces might be the norm a decade from now. Consider how Microsoft’s recent advancements in quantum computing could revolutionize data processing and analysis in your industry.
Employing scenario planning to prepare for a multitude of futures. Use strategic planning software like Lucid chart to visualize different assumptions about technological progress, regulatory changes, and societal evolution.
Formulating strategic plans based on these scenarios. The essence of leadership is making today’s decisions with an eye on tomorrow’s probabilities.
Maximize the power of external expertise. Benefit from programs like Plazabridge Group’s Innovation Pro™, Innofusion™ Transformation, Innofusion™ Sprint, and Innofusion™ Sustainability Assessment to aid your journey. These programs offer valuable outside perspectives that can enrich your understanding and application of AI. They provide fresh insights, hands-on experience, and expert guidance in navigating the complex AI landscape. Find out more [Learn more] to embark on your AI journey.
External experts act as crucial navigators in this AI expedition. They help decode ethical challenges, demystify technological complexities, and forecast future trends, equipping executives to make well-informed, strategic decisions in the face of AI’s rapid evolution.
As we draw closer to 2024, remember that we’re not merely spectators of the emerging AI revolution – we’re the trailblazers. As leaders, we have the power to do more than respond to change; we can architect it. The ripples of our leadership will extend beyond our organizations, shaping the very fabric of our society. The future isn’t something that simply happens to us – we’re active participants in its creation. Now is the time to embrace this momentous journey, and lead with boldness and determination.
Image credit: Unsplash
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That means you know the answer to every question, make the right decision when faced with every choice, and act confidently when others are uncertain. Right?
(Insert uproarious laughter here).
Of course not. But you act like you do because you’re the leader, the boss, the person in charge.
You are not alone. We’re all doing it.
We act like we have the answers because we’ve been told that’s what leaders do. We act like we made the right decision because that’s what leaders do in a volatile, uncertain, complex, and ambiguous (VUCA) world where we must work quickly and flexibly while doing more with less.
But what if we didn’t?
What if we stopped pretending to have the answer or know the right choice? What if we acknowledged the ambiguity of a situation, explored its options and interpretations for just a short while, and then decided?
We’d make more informed choices. We’d be more creative and innovative. We’d inspire others.
So why do we keep pretending?
Ambiguity: Yea! Meh. Have you lost your mind?!?
Stanford’s d.School calls the ability to navigate ambiguity “the super ability” because it’s necessary for problem-finding and problem-solving. Ambiguity “involves recognizing and stewing in the discomfort of not knowing, leveraging and embracing parallel possibilities, and resolving or emerging from ambiguity as needed.”
Navigating ambiguity is essential in a VUCA world, but not all want to. They found that people tend to do one of three things when faced with ambiguity:
Endure ambiguity as “a moment of time that comes before a solution and is antagonistic to the objective – it must be conquered to reach the goal.”
Engage ambiguity as “an off-road adventure; an alternate path to a goal. It might be rewarding and helpful or dangerous and detrimental. Its value is a chosen gamble. Exhilaration and exhaustion are equally expected.”
Embrace ambiguity as “oceanic and ever-present. Exploration is a challenge and an opportunity. The longer you spend in it, the more likely you are to discover something new. Every direction is a possibility. Navigation isn’t simple. It requires practice and patience.
Students tend to enter the program with a resignation that ambiguity must be endured. They leave embracing it because they learn how to navigate it.
You can too.
In fact, as a leader in a VUCA world, you and your team need to.
How to Embrace (or at least Engage) Ambiguity
When you want to learn something new, the library is one of the best places to start. In this case, the Library of Ambiguity – an incredible collection of the resources, tools, and activities that professors at Stanford’s d.School use to help their students build this super ability.
It’s easy to get overwhelmed by the number of resources, so here are three that I recommend:
What it is: A tool to help individuals better understand the tolerance of ambiguity, especially their comfort, learning, and panic zones
When to use it: Stanford used this as a reflection tool at the end of an introductory course, BUT I would use it at the start of the project as a leadership alignment and team-building tool:
Leadership alignment – Ask individual decision-makers to identify their comfort, learning, and panic zones for each element of the Project Scoping Guide (problem to be solved, target customer, context, goals, and priorities), then synthesize the results. As a group, highlight areas of agreement and resolve areas of difference.
Team-building – At the start of the project, ask individual team members to complete the worksheet as it applies to both the project scope and the process. Individuals share their worksheets and, as a group, identify areas of shared comfort and develop ways to help each other through areas of learning or panic.
Why I like it: Very similar to the Project Playground concept I use with project teams to define the scope and set constraints, it can be used individually to build empathy and support amongst team members.
What it is: A tool to build trust and confidence amongst a team working through an ambiguous effort
When to use it: At regular pre-defined intervals during a project (e.g., every team check-in, at the end of each Sprint, once a month)
What I like about it:
Individuals complete it BEFORE the meeting, so the session focuses on discussing the dashboard, not completing it
The dashboard focuses on the usual business things (progress against responsibilities, the biggest challenge, next steps) and the “softer” elements that tend to have the most significant impact on team experience and productivity (mood, biggest accomplishment, team balance between talking and doing)
Learn It. Do It.
The world isn’t going to get simpler, clearer, or slower. It’s on you as a leader to learn how to deal with it. When to slow it down and explore and when to speed it up and act. No one is born knowing. We all learn along the way. The Library will help. No ambiguity about that!
Image credit: Pexels
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Creative and reactive both contain the same letters.
Different order.
Very different results.
These are strange times.
A relentless stream of news and updates are coming at us, warning us about COVID-19, a declining stock market, rising unemployment, and the financial crunch facing millions and millions of individuals and families.
On the other hand, we’re also getting daily notifications from companies about what they’re doing in the face of all of this news, tips for working from home and maintaining our mental health, and encouragement to support our friends, families, neighbors, and strangers in new ways.
Should we be scared or stoic? Isolated or connected? Hoarding or sharing?
Whatever you choose (and it is your choice), I encourage you to also be creative.
I’m not talking about being creative in the capital C way and take up painting, sculpting, composing, or any of the other activities we typically associate with the fine arts.
I’m talking about calmly assessing your situation, clearly acknowledging the constraints that are requiring change, and then exploring the “new normal” you can create.
This is what innovators do and you, yes YOU, are an innovator.
Innovators know that creativity thrives within constraints. If anything is possible and everything is permissible, you can do whatever you want! But that’s not how the world is. Not now and not before COVID-19.
We, people and businesses, have always faced constraints because we’ve never had infinite resources, money, or time. But we acknowledged the constraints and created within them. That’s what we have to do now.
Caterers have to order food well before events take place so when events are cancelled, caterers are left with a lot of food that they’ve already paid for and without the event income that was going to cover their costs.
Devil’s Food Catering in Portland OR faced exactly this situation. Instead of letting the food go to waste or trying to become a take-out shop on their own, they created Handbasket by teaming with other with other Portland area restaurants, breweries, distilleries, bakeries, and other providers to create “handmade menus for quality in-home dining experiences during this of social distancing.”
Some people are gifted with the motivation to workout and some of us, well… aren’t.
In-person classes and personal training are often the solutions we rely on because we feel a sense of connection with our instructors, trainers, and classmates. As gyms close and social distancing becomes a way of life, the loss of live workouts can deepen our sense of isolation.
Recognizing this, local gyms, studios, and personal trainers in cities across the country are offering livestream classes so that we can continue to feel connected AND healthy AND active from the comfort of our own homes.
p.s. the link above is for the Boston area but I found similar articles for Philly, Washington, Houston, and even Wyoming
Spears Who Dare bills itself as TED meets Broadway, “a groundbreaking speaker series produced like a Broadway show, featuring speakers from around the world who want to ignite change and inspire new ways of thinking.”
Scheduled to take place on March 24, the organizers recognized that, like many other live events, their original plans for a live Broadway event needed to change. Last week, they shifted from live to livestream, planning a 6-camera shoot of each speaker and performer sharing their messages and art in an empty theater.
Then NYC closed the theaters. Within hours the organizers shifted again and asked each speaker to record a “mini-movie” that could be edited together to create “a full-blown Speakers Who Dare Film” to be shared with a global audience, viewing together on the original event date.
How and what will YOU create today?
Just in case you need a nudge … find the perfect gif starring the perfect celebrity expressing the perfect emotion and send it to someone who needs it.
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Probably the biggest myth about innovation is that it’s about ideas. It’s not. It’s about solving problems. The truth is that nobody cares about what ideas you have, they care about the problems you can solve for them. So don’t worry about coming up with a brilliant idea. If you find a meaningful problem, the ideas will come.
The problem with ideas is that so many of them are bad. Remember New Coke? It seemed like a great idea at first. The new formula tested well among consumers and even had some initial success in the market. Yet what the marketers missed is that many had an emotional attachment to the old formula and created a huge backlash.
Our minds tend to play tricks on us. We think we’ve done our homework and that we base our ideas on solid insights, but often that’s not the case. We see what we want to see and then protect our ideas by ignoring or explaining away facts that don’t fit the pattern. In particular, we need to learn to identify and avoid these three cognitive biases that kill innovation.
1. Availability Bias
It’s easy to see where the marketers at Coke went wrong. They had done extensive market testing and the results came back wildly positive. People consistently preferred the new Coke formula over the old one. The emotional ties that people had to the old formula, however, were harder to see.
Psychologists call these types of errors availability bias. We tend to base our judgments on the information that is most easily available, such as market testing, and neglect other factors, such as emotional bonds. Often the most important factors are the ones that you don’t see and therefore don’t figure into your decision making.
The way to limit availability bias is to push yourself to get uncomfortable facts in front of you. In his new book, Farsighted, Steven Johnson notes two techniques that can help. The first, called pre-mortems, asks you to imagine that the project has failed and figure out why it happened. The second, called red teaming sets up an independent team to find holes in the idea.
Amazon’s innovation process is specifically set up to overcome availability bias. Project managers are required to write a 6-page memo at the start of every project, which includes a press release of both positive and negative reactions. Through a series of meetings, other stakeholders do their best to poke holes in the idea. None of this guarantees success, but Amazon’s track record is exceptionally good.
2. Confirmation Bias
Availability bias isn’t the only way we come to believe things that aren’t true. The machinery in our brains is naturally geared towards making quick judgments. We tend to lock onto the first information we see (called priming) and that affects how we see subsequent data (framing). Sometimes, we just get bad information from a seemingly trustworthy, but unreliable source.
In any case, once we come to believe something, we will tend to look for information that confirms it and discount contrary evidence. We will also interpret new information differently according to our preexisting beliefs. When presented with a relatively ambiguous set of facts, we are likely to see them as supporting out position.
This dynamic plays out in groups as well. We tend to want to form an easy consensus with those around us. Dissent and conflict are uncomfortable. In one study that asked participants to solve a murder mystery, the more diverse teams came up with better answers, but reported doubt and discomfort. The more homogeneous teams performed worse, but were more confident.
Imagine yourself sitting in a New Coke planning meeting. How much courage would it have taken to challenge the consensus view? How much confidence would you have in your dissent? What repercussions would you be willing to risk? We’d all like to think that we’d speak up, but would we?
3. The Semmelweis Effect
In 1847, a young doctor named Ignaz Semmelweis had a major breakthrough. Working in a maternity ward, he discovered that a regime of hand washing could dramatically lower the incidence of childbed fever. Unfortunately, instead of being lauded for his accomplishment, he was castigated and considered a quack. The germ theory of disease didn’t take hold until decades later.
The phenomenon is now known as the Semmelweis effect, the tendency for professionals in a particular field to reject new knowledge that contradicts established beliefs. The Semmelweis effect is, essentially, confirmation bias on a massive scale. It is simply very hard for people to discard ideas that they feel have served them well.
However, look deeper into the Semmelweis story and you will find a second effect that is just as damaging. When the young doctor found that his discovery met some initial resistance, he railed against the establishment instead of collecting more evidence and formatting and communicating his data more clearly. He thought it just should have been obvious.
Compare that to the story of Jim Allison, who discovered cancer immunotherapy. At first, pharmaceutical companies refused to invest in Jim’s idea. Yet unlike Semmelweis, he kept working to gather more data and convince others that his idea could work. Unlike Semmelweis, who ended up dying in an insane asylum, Jim won the Nobel Prize.
We all have a tendency to reject those who reject our ideas. Truly great innovators like Jim Allison, however, just look at that as another problem to solve.
Don’t Believe Everything You Think
When I’m in the late stages of writing a book, I always start sending out sections to be fact checked by experts and others who have first-person knowledge of events. In some cases, these are people I have interviewed extensively, but in others sending out the fact checks is my first contact with them.
I’m always amazed how generous people are with their time, willing in some cases to go through material thoroughly just to help me get the story straight. Nevertheless, whenever something comes back wrong, I always feel defensive. I know I shouldn’t, but I do. When told that I’m wrong, I just have the urge to push back.
But I don’t. I fight that urge because I know how dangerous it is to believe everything you think, which is why I go to so much effort to send out the fact checks in the first place. That’s why, instead of publishing work that’s riddled with errors and misinterpretations, my books have held up even after being read thousands of times. I’d rather feel embarrassed at my desk than in the real world.
The truth is that our most fervently held beliefs are often wrong. That’s why we need to make the effort to overcome the flawed machinery in our minds. Whether that is through a formal process like pre-mortems and red teams, or simply seeking out a fresh pair of eyes, we need to avoid believing everything we think.
That’s much easier said than done, but if you want to innovate consistently, that’s what it takes.
Innovation is something different that creates value. Sometimes it’s big, new to the world, world-changing things. Sometimes it’s a slight tweak to make things easier, faster, cheaper or better.
Sometimes, it’s both.
It’s no secret that the military and NASA are birthplaces of incredible inventions (something new) and innovations (something different that creates value). Most people know that Velcro, nylon, and powdered drinks (Tang!) originated at Nasa, and that Jeep, GPS, and the internet come to us from the military.
But did you know that these 10 everyday innovations have their origin in the military?
1. Duct Tape
Invented in 1942 to seal ammo boxes with something that could resist water and dirt while also being fast and easy to remove so soldiers could quickly access ammunition when they needed it. Originally, it was made by applying a rubber-based adhesive to duck cloth, a plain and tightly woven cotton fabric, and has evolved over the years to be used for everything from repairing equipment on the moon to purses.
2. Synthetic Rubber Tires
Speaking of rubber, prior to WWII, most rubber was harvested from trees in South America and shipped to southern Asia where the majority of rubber products were produced. When the Axis powers cut-off access to Asia, the US military turned to Firestone, Goodyear, and Standard Oil to create a replacement substance. The recipe they created is still used today.
3. Silly Putty
Image Credit: thestrong.org
Like most inventions, there were a lot of failed experiments before the right synthetic rubber recipe was found. Silly Putty is the result of one of those experiments. A scientist at GE developed the strange substance but quickly shelved it after it became clear that it had no useful military application. Years later, GER execs started showing off the novelty item at cocktail parties, an advertising exec in attendance saw its commercial potential and bought the manufacturing rights, packaged it into eggs and sold it as a toy. 350 million eggs later, we’re still playing with it.
4. Superglue
The result of another failed experiment, Superglue came onto the market in 1958 and has stuck around ever since (sorry, that pun was intended). Military scientists were testing materials to use as clear plastic rifle sights and created an incredibly durable but impossibly sticky substance called cyanoacrylate. Nine years later it was being sold commercially as Superglue and eventually did make its way into military use during the Vietnam War as a way to immediately stop bleeding from wounds.
5. Feminine Hygiene Pads
Image Credit: Museum of American History
Before Superglue was used to stop bleeding, bandages woven with cellulose were used on the battlefields and hospitals. Seeing how effective the bandages were at holding blood and the convenience of having so many on hand, US and British WW1 nurses began using them as sanitary napkins and bandage makers adapted and expanded their post-War product lines to accommodate.
6. Undershirts
Image Credit: Foto-ianniello/Getty Images
While people have been wearing undergarments for centuries, the undershirt as we know it — a t-shaped, cotton, crewneck — didn’t come into being until the early twentieth century. Manufactured and sold by the Cooper Underwear Co., it caught the Navy’s eye as a more convenient and practical option than the current button-up shirts. In 1905, it became part of the official Navy uniform and the origin of the term “crewneck.”
7. Aerosol Big Spray
Image Credit: National WWII Museum
Soldiers fighting in the Pacific theater of WWII had a lot to worry about, so they were eager to cross mosquitos and malaria off that list. In response, the Department of Defense teamed up with the Department of Agriculture to find a way to deliver insecticide as a fine mist. The first aerosol “bug bomb” was patented in 1941 and, thanks to the development of a cheaper plastic aerosol valve, became commercially available to civilians in 1949.
8. Canned Food
Image Credit: Pacific Paratrooper — WordPress.com
While it’s not surprising that canned foods were originally created for the military, it may surprise you to learn that it was Napoleon’s armies that first used the concept. In response to the French Government’s offer of a large cash reward for anyone who could find a way to preserve large quantities of food, an inventor discovered that food cooked inside a jar wouldn’t spoil unless the seal leaked, or the container was broken. But glass jars are heavy and fragile, so innovation continued until WW1 when metal cans replaced the glass jars.
9. Microwave
RadaRange on the Nuclear Ship NS Savannah
This is another one that you probably would have guessed has its origins in the military but may be surprised by its actual origin story. The term “microwave” refers to an adaptation of radar technology that creates electromagnetic waves on a tiny scale and passes those micro-waves through food, vibrating it, and heating it quickly. The original microwaves made their debut in 1946 on ships but it took another 20 years to get the small and affordable enough to be commercially viable.
10. Wristwatches
Image Credit: Hodinkee
Watches first appeared on the scene in the 15th century but they didn’t become reliable or accurate until the late 1700s. However, up until the early 20th century, wristwatches were primarily worn as jewelry by women and men used pocket watches. During its military campaigns in the late 1880s, the British Army began using wristwatches as a way to synchronize maneuvers without alerting the enemy to their plans. And the rest, as they say, is history.
So, there you have it. 10 everyday innovations brought to us civilians by the military. Some, like synthetic rubber, started as intentional inventions (something new) and quickly became innovations (something new that creates value). Some, like superglue and silly putty, are “failed” experiments that became innovations. And some, like undershorts and feminine products, are pure innovations (value-creating adaptations of pre-existing products to serve different users and users).
There is a line of thinking that says that the world is built on ideas. It was an idea that launched the American Revolution and created a nation. It was an idea that led Albert Einstein to pursue relativity, Linus Pauling to invent a vaccine and for Steve Jobs to create the iPhone and build the most valuable company in the world.
It is because of the power of ideas that we hold them so dear. We want to protect those we believe are valuable and sometimes become jealous when others think them up first. There’s nothing so rapturous as the moment of epiphany in which an idea forms in our mind and begins to take shape.
Clearly, ideas are important, but not as many believe. America is what it is today, for better or worse, not just because of the principles of its founding, but because of the actions that came after it. We revere people like Einstein, Pauling and Jobs not because of their ideas, but what they did with them. The truth is that although possibilities are infinite, ideas are limited.
The Winklevoss Affair
The muddled story of Facebook’s origin is now well known. Mark Zuckerberg met with the Winklevoss twins and another Harvard classmate to discuss building a social network together. Zuckerberg agreed, but then sandbagged his partners while he built and launched a competing site. He would later pay out a multimillion dollar settlement for his misdeeds.
Zuckerberg and the Winklevoss twins were paired in the news together again recently when Facebook announced that it’s developing a new cryptocurrency called Libra. As it happens, the Winklevoss twins have been high profile investors in Bitcoin for a while now. The irony was too delicious for many in the media to ignore. First he stole their idea for Facebook and now he’s doing the same with cryptocurrencies!
Of course this is ridiculous. Social networks like Friendster and Myspace existed before Facebook and many others came after. Most failed. In much the same way, many people today have ideas about starting cryptocurrency businesses. Most of them will fail too. The value of an initial idea is highly questionable.
Different people have similar ideas all the time. In fact, in a landmark study published in 1922 identified 148 major inventions or discoveries that at least two different people, working independently, arrived at the same time. So the fact that both the Winklevoss twins and Zuckerberg wanted to launch a social network was meaningless.
The truth is that Zuckerberg didn’t have to pay the Winklevoss twins because he stole their idea, but because he used their trust to actively undermine their business to benefit his. His crime wasn’t creation, but destruction.
The Semmelweis Myth
In 1847, a young doctor named Ignaz Semmelweis had a major breakthrough. Working in a maternity ward, he discovered that a regime of hand washing could dramatically lower the incidence of childbed fever. Unfortunately, the medical establishment rejected his idea and the germ theory of disease didn’t take hold until decades later.
The phenomenon is now known as the Semmelweis effect, the tendency for people to reject new knowledge that contradicts established beliefs. We tend to think that a great idea will be immediately obvious to everyone, but the opposite usually happens. Ideas that have the power to change the world always arrive out of context for the simple reason that the world hasn’t changed yet.
However, the Semmelweis effect is misleading. As Sherwin Nuland explains in The Doctor’s Plague, there’s more to the story than resistance to a new idea. Semmelweis didn’t see the value in communicating his work effectively, formatting his publications clearly or even collecting data in a manner that would gain his ideas greater acceptance.
Here again, we see the limits of ideas. Like a newborn infant, they can’t survive alone. They need to be nurtured to grow. They need to make friends, interact with other ideas and mature. The tragedy of Semmelweis is not that the medical establishment did not immediately accept his idea, but that he failed to steward it in such a way that it could spread and make an impact.
Why Blockbuster Video Really Failed
One of the most popular business myths today is that of Blockbuster Video. As the story is usually told, the industry giant failed to recognize the disruptive threat that Netflix represented. The truth is that the company’s leadership not only recognized the problem, but developed a smart strategy and executed it well.
The failure, in fact, had less to do with strategy and tactics than it did with managing stakeholder networks. Blockbuster moved quickly to launch an online business, cut late fees and innovated its business model. However, resistance from franchisees, who were concerned that the changes would kill their business, and from investors and analysts, who balked at the cost of the initiatives, sent the stock price reeling.
From there things spiraled downward. The low stock price attracted the corporate raider Carl Icahn, who got control of the board. His overbearing style led to a compensation dispute with Blockbuster’s CEO, John Antioco. Frustrated, Antioco negotiated his exit and left the company in July of 2007.
His successor, Jim Keyes, was determined to reverse Antioco’s strategy, cut investment in the subscription model, reinstated late fees and shifted focus back to the retail stores in a failed attempt to “leapfrog” the online subscription model. Three years later, in 2010, Blockbuster filed for bankruptcy.
The Fundamental Fallacy Of Ideas
One of the things that amazed me while I was researching my book Cascades was how often movements behind powerful ideas failed. The ones that succeeded weren’t those with different ideas or those of higher quality, but those that were able to align small groups, loosely connected, but united by a shared purpose.
The stories of the Winklevoss twins, Ignaz Semmelweis and Blockbuster Video are all different versions of the same fundamental fallacy, that ideas, if they are powerful enough, can stand on their own. Clearly, that’s not the case. Ideas need to be adopted and then combined with other ideas to make an impact on the world.
The truth is that ideas need ecosystems to support them and that doesn’t happen overnight. To make an idea viable in the real world it needs to continually connect outward, gaining adherents and widening its original context. That takes more than an initial epiphany. It takes the will to make the idea subservient to its purpose.
What we have to learn to accept is that what makes an idea powerful is its ability to solve problems. The ideas embedded in the American Constitution were not new at the time of the country’s founding, but gained power by their application in the real world. In much the same way, we revere Einstein’s relativity, Pauling’s vaccine and Jobs iPhone because of their impact on the world.
As G.H. Hardy once put it, “For any serious purpose, intelligence is a very minor gift.” The same can be said about ideas. They do not and cannot stand alone, but need the actions of people to bring them to life.
Why keeping an eye on the clock matters in the world of bright ideas
Image: Dall-E via Bing
GUEST POST from John Bessant
On 29th September 1707 a fleet of 21 ships under the command of Admiral Cloudesley Shovell was returning from Gibraltar where it had been supporting action during the long-running war with the French. Crossing the Bay of Biscay the weather grew worse and they were struggling to make their home port of Plymouth in the south-west of England. At around 6pm they believed they were in safe waters but in fact were heading on to the rocks near St Agnes’s Bay in the Scilly Islands — fifty miles west of where they thought they were. Four ships were lost in the disaster including HMS Association, the flagship of the fleet which carried Sir Cloudesley and over 1400 other sailors to their deaths. It was one of the worst naval disasters to befall the British Navy.
And an avoidable one. The problem — which urgent follow-up enquiries highlighted — was familiar. The ships were lost because the experienced seamen steering them didn’t know where they were. Navigating the rocky coastline with hidden shelves and shallows depended on accurate awareness of position — but the methods available at the time weren’t up to it. Depth soundings could help but the key missing ingredient was an accurate measurement of longitude. For which they needed a reliable timepiece on board; despite an array of clocks and pocket watches the technology wasn’t good enough to maintain an accurate sense of the time relative to the Greenwich clock on which all naval longitude is based. Time slipped away — and with it any clear sense of where they were.
Cue one of many early innovation contests — attempts at crowdsourcing a good solution to the problem as fast as possible. The British government offered a huge prize of £20,000 in 1714 equivalent in today’s money to around £3m) to anyone who could construct a clock that would enable sailors to calculate their longitude at sea with an accuracy of within half a degree. It was famously won by John Harrison, a carpenter by trade who spent over twenty years working on the problem, producing four models of chronometer each improving on the previous one. His H4 model finally achieved the accuracy and reliability required and he duly won the prize. More important he — and the many others working on the problem — changed the face of seaborne navigation forever.
Image: Dall-E via Bing
We’re used to thinking about the Industrial Revolution in terms of Britain as the ‘workshop of the world’, driven by a steady stream of manufacturing technology innovations coming from men like Arkwright, Wedgwood, Boulton and Watt. But we should add the clockmakers to that list; without them the workshop of the world would not have been able to get its wares reliably to anywhere but the closest markets. Their innovation heralded the first wave of globalisation in world trade and we’re still building on that legacy.
Nor was their effort confined to seaborne navigation in its impact; with reliable clocks it became possible to standardise time itself. Prior to 1880 different cities in the UK kept different versions of time, each geared to a local standard timepiece. But the introduction of standardised time, all linked to Greenwich Mean time allowed for important shifts like the expansion of railways with trains running on a clear and predictable timetable.
Time is in many ways a key part of the enabling infrastructure, a foundation on which so much innovation can be built. Like today’s internet it enables things to happen which would not have been possible before — and in similar fashion the early days spent innovating towards a reliable infrastructure represent an important but often neglected innovation history.
So time deserves credit as a macro-level innovation enabler — but it also has an impressive history at the micro-level in terms of its innovation impact. In 1909 Frederick Taylor published his book on ‘The principles of Scientific Management’ which became, (in the view of the 2001 members of the Academy of Management) the most influential book on management ever. His principles laid the foundations for the ways in which factories and later many service businesses were constructed and operated and paved the way for Henry Ford’s mass production model. At heart the approach involved applying rigorous engineering principles to the flow and execution of activities throughout a process and they still underpin much of the industrial engineering curriculum today.
Its impact was huge — for example in Ford’s Highland Park factory where he began experimenting towards the model using Taylor’s ideas, the productivity gains were stunning. In the first assembly line, installed in 1913 for flywheel production for the Model T, the assembly time fell from 20 man minutes to 5. By 1914 three lines were being used in the chassis department to reduce assembly time from around 12 hours to less than 2.
Key contributors to enabling this to happen were an American couple, Frank and Lilian Gilbreth. They worked on what became known as ‘time and motion study’, analysing and breaking down work processes into individual motions, and then eliminating unnecessary motions to improve efficiency. (They also followed in the above illustrious tradition of creating reliable timepieces, in their case developing the micro-chronometer, a clock that could record time to the 1/2000th of a second).
The image of stop watches and clipboards goes back to their influence — and while (like Taylor) their work often receives a negative press (think Charlie Chaplin in the film ‘Modern Times’ in which he is literally caught up in the machine and under enormous time pressure), the reality is that the Gilbreth’s enabled major improvements not just in productivity but in working conditions and employee satisfaction.
They were early but key figures in what later became ‘lean thinking’ — essentially reducing unnecessary waste, especially in movement. Ergonomics owes a lot to their measurement approach which charmingly gave us a unit of measurement — the ‘therblig’ (Gilbreth spelled backwards) which they applied to analyse a set of 18 elemental motions involved in performing a task in the workplace. These elements include movements such as reach, move, grasp, release, load, use, assemble, and disassemble, as well as unnecessary ones like hold, rest, position, search, select, plan, unavoidable delay, avoidable delay, and inspect.
Paying attention to detail, especially around the time taken to carry out a task, and then redesigning it to reduce wasteful effort, movement, queuing, temporary storage, etc. lies at the heart of another revolutionary process innovation — lean thinking. Pioneered in Japanese factories during the post-war years lean is essentially a focus on waste elimination through the application of core principles and key tools. Amongst the ‘seven deadly wastes’ which lean focuses on is time — and not surprisingly the toolkit which emerges from that places a premium on reducing unnecessary expenditure of that precious commodity.
For example one of the early challenges to the emerging car industry was set-up time. With giant machines capable of pressing a piece of steel into the required shape the ability to make different models depends on how quickly those presses can be set-up for a new job. In the early days this typically took up to a day to reset; now (using the widely-applied techniques originally pioneered by Shigeo Shingo and captured in his excitingly titled book ‘Single minute exchange of die — the SMED system’) that time is routinely counted in single minutes.
The implications of this reach far beyond the car factory. Anywhere where rapid changeover of a key resource is needed can benefit from the approach — and has done. Formula 1 pitstop teams can ‘reset’ an entire car with new tyres, fuel and many other changes within seconds. Hospital operating theatres can maximise the productive (and life-saving) time for operations by applying the principles to changeovers. And the revolution in short-haul flying which we have seen in recent decades owes a great deal to the simple performance metric of turnaround time — how fast can a plane land, empty , be cleaned, refuelled and refilled with passengers and take off again? Southwest Airlines have held the crown for years with turnaround times typically around 15 minutes.
Saving time is at one end of an innovation spectrum — it’s worth looking at because wasted time adds no value and saving it enhances productivity. But there’s another end of this spectrum, one which William McKnight discovered in his work at 3M in their early years. It’s all about spending time.
Innovation is about ideas and sometimes coming up with the good ones , the ones which may offer a whole new angle on a problem, needs time for the innovation to incubate. He observed that by giving people a sense of having a little extra time in which they could play around paid off for the company. His 15% policy did just that, giving people the sense that they have time to think and explore without needing to show productivity — the opposite of the tightly-controlled time of the Gilbreths.
(In reality this didn’t cost much in the way of lost productivity since McKnight observed that 15% of a working day, is taken up with coffee and tea breaks, lunch and other time. Plus people don’t religiously take their 15% and then stop thinking about their innovation; most give much more of their own thinking time for free!)
Breakthroughs (of which 3M has many to be proud of) come more frequently if people have time to think — which is why the approach has been successfully adopted by many other organizations. Google, for example, links many major innovations like Gmail to allowing their engineers to spend 20% of their time on their own projects.
There’s another reason why time pressure shouldn’t always be too strong in the innovation area. By its nature innovation is uncertain — which means that we need to experiment and things will go wrong which need time to explore and fix. But sometimes the project level pressure is too strong — prestige, racing the competition, the need to meet performance targets — there are plenty of culprits turning the temporal screws. Think about the fateful Challenger space shuttle explosion back in 1986 which eventually was blamed on a faulty O-ring seal. But importantly — as the Rogers commission of enquiry commented later — it wasn’t the component which was the problem but the system which put so much pressure on the engineers to push past it and press ahead.
That’s sadly not a new tale; the novelist Nevil Shute spent much of his early life working in the aircraft industry and had first hand experience of the race to design an airship. In response to the German dominance with their Zeppelin designs in the 1920s the British government pushed for a challenger and backed two projects, the R-100 which was built on a shoestring by Shute’s company and the other the R-101 which was built with government resources. The latter had all the advantages of unlimited resources and budget but that came with enormous political pressure to get the job done — and fast.
Sadly on a test flight in 1930 the R101 ploughed into a French hillside killing all on board. Once again the enquiry found that the engineers had been pushed to cut corners and ignore safety concerns; Shute and his fellow engineers had enormous sympathy for the difficult situation in which their R101 colleagues had found themselves. As he describes in his book ‘Slide Rule’
‘The R101 team was working under impossible conditions; they had to design and build an airship that was larger and more complex than anything ever attempted before. They had to meet unrealistic deadlines and specifications imposed by the government. They had to cope with constant changes and revisions to their plans. They had to deal with political interference and public scrutiny…… they were doomed to fail’.
It would be good to think we’ve finally learned this lesson — but the 2022 well-researched Netflix documentary ‘Downfall’ which charts the disastrous history of the Boeing 737-Max points once again at the same kind of time pressure as being responsible for pushing too far too fast.
There are many more places where we can see time playing a role as a key innovation enabler or shaper. For example the challenge to board-level patience in the face of the long slow haul towards bringing innovation impact at scale. Evidence shows it takes a long time to move from pilot success to widespread impact. As Ray Croc (the architect behind the scaling of McDonalds) pointed out, ‘I was an overnight success all right, but 30 years is a long, long night’.
So providing support and commitment over the long-haul is going to be as important as having an innovation team with a clear vision and strategy to undertake the expedition. Not for nothing does the term ‘patient money’ first appear in the findings of the famous Project Sappho study back in the 1970s which looked at factors affecting success and failure in innovation.
Or the challenge of innovation timing — we hear a lot about ‘first mover advantage’ and it would be easy to think that speed is always the key factor. But being too early is often as risky as being too late; pushing untried innovations into the market too soon can sometimes mean being cut by the bleeding edge of technology. And sometimes the innovation is so far advanced it has to wait for the wider infrastructure or for the social or political climate to catch up. Shai Agassi’s vision for making the world a better place through his electromobility solutions is a good example. The collapse what had been one of the world’s biggest start-ups came ten years before the underlying idea (of battery swap technology for electric vehicles) found widespread acceptance in niche markets like city taxi networks in China.
Time is a precious commodity which, used wisely, is a key part of the innovation story. So when you glance at your watch or the little clock running in the corner of your computer screen spare a thought for the innovators, thousands of them over the centuries, who solved the problem of measuring it reliably and accurately.
Additional Image Credit: Wikimedia Commons
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A few weeks ago, a Google researcher leaked an internal document asserting that Google (and open AI) will lose the AI “arms race” to Open Source AI.
I’ll be honest: I didn’t understand much of the tech speak – LLM, LLaMA, RLHF, and LoRA are just letters to me. But I understood why the memo’s writer believed that Google was about to lose out on a promising new technology to a non-traditional competitor.
They’re the same reasons EVERY large established company loses to startups.
Congratulations, big, established industry incumbents, you’re finally innovating like Google!
(Please note the heavy dose of sarcasm intended).
Innovation at Google Today
The document’s author lists several reasons why “the gap is closing astonishingly quickly” in terms of Google’s edge in AI, including:
“Retraining models from scratch is the hard path” – the tendency to want to re-use (re-train) old models because of all the time and effort spent building them, rather than start from scratch using newer and more flexible tools
“Large models aren’t more capable in the long run if we can iterate faster on small models” – the tendency to want to test on a grand scale, believing the results are more reliable than small tests and drive rapid improvements.
“Directly competing with open source is a losing proposition” – most people aren’t willing to pay for perfect when “good enough” is free.
“We need them more than they need us” – When talent leaves, they take knowledge and experience with them. Sometimes the competitors you don’t see coming.
“Individuals are not constrained by licenses to the same degree as corporations” – Different customers operate by different rules, and you need to adjust and reflect that.
“Being your own customer means you understand the use case” – There’s a huge difference between designing a solution because it’s your job and designing it because you are in pain and need a solution.
What it sounds like at other companies
Even the statements above are a bit tech industry-centric, so let me translate them into industry-agnostic phrases, all of which have been said in actual client engagements.
Just use what we have. We already paid to make it.
Lots of little experiments will take too long, and the dataset is too small to be trusted. Just test everything all at once in a test market, like Canada or Belgium.
We make the best . If customers aren’t willing to pay for it because they don’t understand how good it is, they’re idiots.
It’s a three-person startup. Why are we wasting time talking about them?
Aren’t we supposed to move fast and test cheaply? Just throw it in Google Translate, and we’ll be done.
Urban Millennials are entitled and want a reward. They’ll love this! (60-year-old Midwesterner)
How You (and Google) can get back to the Innovative Old Days
The remedy isn’t rocket (or computer) science. You’ve probably heard (and even advocated for) some of the practices that help you avoid the above mistakes:
Call out the “sunk cost fallacy,” clarify priorities, and be transparent about trade-offs. Even if minimizing costs is the highest priority, is it worth it at the expense of good or even accurate data?
Define what you need to learn before you decide how to learn it. Apply the scientific method to the business by stating your hypothesis and determining multiple ways to prove or disprove it. Once that’s done, ask decision-makers what they need to see to agree with the test’s result (the burden of proof you need to meet).
Talk. To. Your. Customers. Don’t run a survey. Don’t hire a research firm. Stand up from your desk, walk out of your office, go to your customers, and ask them open-ended questions (Why, how, when, what).
Constantly scan the horizon and seek out the small players. Sure, most of them won’t be anything to worry about, but some will be on to something. Pay attention to them.
See #3
See #3
Big companies don’t struggle with innovation because the leaders aren’t innovative (Google’s founders are still at the helm), the employees aren’t smart (Google’s engineers are amongst the smartest in the world), or the industry is stagnating (the Tech industry has been accused of a lot, but never that).
Big companies struggle to innovate because operating requires incredible time, money, and energy. Adding innovation, something utterly different, to the mix feels impossible. But employees and execs know it’s essential. So they try to make innovation easier by using the tools, processes, and practices they already have.
It makes sense.
Until you wake up and realize you’re Google.
Image credit: Unsplash
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