Braden Kelley has been focusing on human-centered change and innovation for more than twenty years, bringing in elements of design thinking, customer experience, employee experience and digital transformation as needed.
On November 18, 2022 our founder will be in New York City (Midtown Manhattan) and available to connect for any of the following purposes:
Featured keynote speaker or workshop for a sales event or conference
Advisory session to provide input on a specific innovation project or your overall innovation or transformation program
Audio or video podcast appearance
Grab a coffee or a meal — to connect or reconnect
Or, if you think Braden should interview you on camera to join the video interviews he’s done with luminaries like Dean Kamen, Seth Godin, Dan Pink, Roger Martin, Kevin Roberts, and most recently – PepsiCo’s Chief Design Officer Mauro Porcini – Braden will bring his video camera!
If you work in Manhattan or are willing to travel in from elsewhere in the greater New York City metropolitan area (or the world) and are looking to increase the innovation or transformation capabilities of your organization or to de-risk an innovation project by getting an outside perspective, or just to connect, contact Braden to book time on November 18, 2022.
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Money, money, money. It wasn’t so long ago that it was always sunny in the rich man’s world. But today, things just aren’t that easy, and talking about money isn’t enough.
Businesses cannot thrive and survive in a competitive environment with only one bottom line – profit.
United Nations Global Compact report points out that such issues as poverty, an uneducated workforce, and resource scarcity will, and already is, causing issues for business growth. In addition, both investors and potential talents are looking deeper than just the company’s financial success before they commit. So, next to Profit, business’s effect on People and the Planet are just as crucial measurement indicators.
“Poverty, conflict, an uneducated workforce, and resource scarcity for example, are also strategic issues for business success and viability.” – UN Global Compact
And what do you get once you combine all three? Planet, People, and Profit are often referred to as the three pillars of sustainability. However, for a business to define sustainability, to have clear and reachable goals, and in return to have a fitting strategy to reach those goals can be challenging.
This is where the need and benefits of the triple bottom line framework become most evident.
What is the Triple Bottom Line Framework?
The term triple bottom line (TBL) was coined by John Elkington, corporate environmentalist, and author back in 1994. It isn’t exactly a new concept and we had plenty of time to see it being tried on by different companies like Patagonia, Unilever, Novo Nordisk and so many more. It is evident that the triple bottom line approach works.
So, what exactly is TBL?
Many like to argue that it is just another accounting tool. Yet in Elkington’s own words, it is a sustainability framework that examines an organization’s social, environmental, and economic impact. It measures a business’s environmental efforts (“planet account”), social well-being (“people account”), and a fair economy. It can be implemented by a business, a non-profit organization, or a governmental institution. It is flexible and adaptable.
Decades before the triple bottom line, the dominant belief was that the only responsibility a business has is to generate profit. It was set in place by economist Milton Friedman and his shareholder theory. With TBL, Elkington challenged the status quo by proposing accountability to all stakeholders and not just shareholders.
In addition to helping with planning sustainable growth, the triple bottom line can act as a reporting tool, thus, it focuses on long-term results and not just one-off campaigns to gain some publicity – can an organization sustain a just economy, environmental resources, and human capital?
Once we shift our attention from quarterly reports to a span of multiple years,
sustainability is no longer just a “to-do” list, but an opportunity that will rejuvenate business in an economy that does not exploit natural resources and social systems.
The Three Pillars of Sustainability
The triple bottom line goes hand in hand with the 1987’s Brundtland Report and the three key areas of development established by it: environmental conservation (Planet), economic development (Profit), and social sustainability (People).
Yet the definition of sustainability is a little bit more complex than that.
It is natural, that once you think of sustainability, your mind might wander to emissions, deforestation, climate change, and other related issues. For the longest, environmental changes have been the most reported and the most talked about topic. And for a good reason. The environmental pillar or Planet is considered to be the most important component of sustainability as it contains the social and economic systems within it.
But just like there wouldn’t be people without a planet, there wouldn’t be a business without people, and there wouldn’t be prosperity without business. All three areas are tightly interconnected and initiatives to address one often overlap with the other area, and naturally, when everything is so tightly knit, trade-offs are inevitable.
Sometimes decisions must be made to accommodate people at the cost of the environment OR decisions must be made to solve one environmental issue at the cost of another. A good example here would be an effort to reduce the consumption of single-use plastic bags by offering paper bags instead. Paper bags are easier to recycle and even if they do end up in a landfill, the lifespan of paper is drastically shorter than plastics. However, paper bag production is resource-heavy, consuming “four times more energy than plastic bags”.
Trade-offs make it impossible to talk about sustainability without considering all the pillars equally. Implementing the triple bottom line helps a business to form a holistic view of it.
Sustainability strives for:
Viable environmental-economic impact: business is executed with the environment and resources in mind, when possible, looking for green solutions or giving back, i.e., reforestation work. Trade-off: green business solutions can be intrusive and negatively affect private property (i.e., wind turbines in neighboring lands).
Bearable socio-environmental impact: education and awareness allow people to make environmentally conscious decisions, curb consumption and develop healthy habits that directly impact the environment. Trade-off: minimal consumption and complete protection of the land stalls economic growth.
Equitable socio-economic impact: people have an opportunity to work and earn a fair wage, and business strives to increase the general welfare of the people and increase the standard of living. This generates economic opportunity for both businesses and individuals. Corporate taxes also play a crucial role here – it is thanks to taxes that an organization contributes to supporting various societal programs. Trade-off: new business ventures can create more jobs but increase consumption of nonrenewable materials.
Planet
Planet bottom line focuses on an organization’s environmental impact, both positive and negative. Sustainable innovation (or on the environmental scale – eco-innovation), helps an organization to place its focus on the environment, by improving its production, manufacturing, marketing, and also all the in-house functions.
Impact on the planet can be created by such efforts as choosing natural and/or locally sourced materials, upcycling waste, using recyclable components, reducing unnecessary travel time, or saving energy usage.
Positive environmental impact can seem grandiose and nearly impossible to achieve. Not every organization is equally equipped to take drastic measures and pursue such efforts as reforestation, ocean clean-up, or full refurbishment of manufacturing facilities. Thus, while many regulations and recommendations exist, there is no one-size-fits-all approach to sustainability. Reporting and measurement really depend on such variables as the organization’s industry, location, size, and financial capabilities.
In addition, pursuing this bottom line can put the business in limbo, forcing it to decide between faster or more sustainable goods delivery; lower-costing or ethically sourced materials, and so on. These and similar initiatives can seem costly and counterproductive to what a business should be doing – generating profit. Yet like with most things in life, sustainability is not just black or white and it would not be a prevailing topic if there wasn’t true profit to be gained.
Benefits of The Planet Bottom Line
Besides the obvious emotional benefits of saving the earth, just feeling good while doing good, and complying with regulations there are practical reasons why you should pursue Planet bottom line:
Satisfying consumer demand: GreenPrint’s 2022 Business of Sustainability Index indicates that demand for sustainable services and products is growing with 69% of respondents saying that “a product’s environmental friendliness is important to their purchasing decision” and 78% agreeing that they are interested in buying from environmentally friendly businesses.
New business opportunities: a shift towards net zero is creating demand for new green solutions. A recent report by McKinsey indicates that reaching net zero by 2050 requires “investments amount to $9.2 trillion per year, of which $6.5 trillion annually would go into low-emissions assets and enabling infrastructure”.
Cost reduction: in another report McKinsey notes that environmentally focused initiatives can “improve operating profits by up to 60%”, by reducing unnecessary waste as well as the usage of water or raw materials, that due to growing scarcity, are becoming more and more expensive.
Improved brand image: knowing that consumers are seeking environmentally friendly products and services, it makes sense to invest in and report on sustainability initiatives. It improves the brand’s image which can lead to increased sales. In addition, nowadays, stakeholders can easily hold an organization accountable for action or inaction, thanks to the speed at which information spreads on social media. Even the smallest misstep by a brand can be rapidly broadcast to millions, causing damage, and leading to lost revenue.
Minimizing regulatory risks: Staying within safe lines of regulations keeps your organization from fines and penalties. Plus, it’s typically easier and less expensive to take such measures proactively, than it is to do so when your hand is forced.
Competitive edge: by excelling at and advocating for an environmental cause, an organization can put pressure on its competitors and use the achievement as a competitive advantage.
Initiatives to Consider
As mentioned earlier, pursuing The Planet bottom line does not necessarily mean making big and drastic changes. Environmentally positive impact-creating initiatives that you can consider are:
Recycling opportunity in-house and limited use of materials (i.e., unnecessary printing).
Reducing travel, remote work opportunities, and/or public transportation benefits.
Partnerships with green businesses and buying locally manufactured goods.
Optimizing and reducing energy consumption.
Seasonal company-wide green initiatives (i.e., day to collect trash or volunteer).
Becoming an ambassador of an environmental cause and advocating for it.
Creating an option for customers and employees to donate instead of receiving material gifts.
Workshops and training to educate and bring awareness on environmental issues and how the organization can positively impact it.
Find innovative ways to be more effective or efficient in your operations by involving employees.
The bigger picture will always be comprised of smaller bits and pieces and while the above-mentioned initiatives might seem small, put together they can make an impact. That’s why giving your employees a voice and engaging the whole organization is so important. While it might sound like a big and complex feat, right tools, such as Viima can simplify the process allowing you to run idea challenges on sustainable innovation and development topics.
Reporting
Now, while environmental initiatives are important on many different levels, from a business point of view, they should contribute to profit generation. Thus, once your Planet bottom line initiatives are in place and running, it is crucial to report on them either on your website, or in your annual business or sustainability report.
The Non-Financial Reporting Directive (NFRD) came into effect back in 2018 requiring public interest companies with more than 500 employees to report on how they are dealing with sustainability matters. In 2024 we will see an additional directive on Corporate Sustainability Reporting which will apply to large companies that meet 2 of the following 3 criteria: more than 250 employees; more than €40 million net turnover; more than €20 million on the statement of financial position.
But reporting should be considered by small organizations too as talking about your achievements beyond the mandatory reporting will positively affect your brand image, it will increase transparency, and improve your reputation.
Reporting and measurement of positive impact can be quite difficult, especially if it is a voluntary initiative and is not based on any regulation-implied requirements. Below is a list of KPIs to consider:
Information on electricity consumption.
Information on fossil fuel consumption.
Information on waste management.
Change in land use/land cover.
Reduction in greenhouse gas emission.
Amount of waste generated and, when relevant – amount recycled.
Amount of ethically sourced materials.
Information on volunteering or charitable work done.
Information on new local, sustainable partnerships.
People
People of the triple bottom line encompasses all the people included in or affected by a business.
It goes far beyond just the small circle of shareholders. This category includes (but is not limited to) employees, suppliers, wholesalers, customers, local or global communities within which the business operates, and future generations. Some people like to emphasize the future generations by separating it into the fourth sphere and adjusting the framework’s name to quadruple the bottom line. Yet in J. Elkington’s views, the future generations are simply an inseparable part of society, and it fits just perfectly in the People category.
There are certain aspects of this bottom line that might be regulated by local or regional governing bodies. For example, local labor law might indicate a specific number of working hours per week, how long lunch breaks your employees are eligible to take or what kind of health insurance the company must provide. However, as with all things sustainability, social responsibility extends beyond the bare minimum – it is a business’ voluntary and proactive way of recognizing its impacts on stakeholders.
The People aspect is an organization’s social impact or social responsibility. And as earlier cited UN Global Compact states, “social responsibility should be a critical part of any business because it affects the quality of a business relationship with stakeholders”.
Benefits of The People Bottom Line
Social initiatives might not be seen as profitable in the short run, but on a bigger scale, doing what is right and doing good positively affects the company’s standing amongst its competitors. For example, such initiatives can positively affect the following:
Employee retention: Companies that invest in their employees’ satisfaction end up saving resources in the longer run. Time and money spent searching, hiring, and training employees can be invested in different opportunities. In addition, people that want to stick around in a company indicate good organizational health and improve brand image.
Attraction of top talents: More and more routine work is being automated, and value is starting to be increasingly created by fewer people of higher talent creating systems, processes, and technology (=innovations) that drive value. Thus, attracting these top talents is increasingly important, but more and more of these people are these days motivated by factors such as the purpose and mission of the organization beyond just compensation, career growth, etc. more traditional factors.
Customer loyalty: Companies willing to walk that extra mile, give to societies or contribute to positive impact will reap the benefits of a better brand image, and in line with their customers’ social values they will naturally have a chance to retain old and attract new customers.
Raising capital: Socially responsible investing is constantly growing and the opportunity to attract investors depends on the organization’s sustainability achievements, the social aspect and how your organization treats people are always on the list of things to be evaluated.
Avoiding risk: Strong commitment to social initiatives will eliminate work-disrupting and reputation-damaging risks. Any mistreatment of an employee or other community member can cause a severe backlash that will affect the organization’s profitability. In addition, the business’s focus on social responsibility in return creates supply chain security.
Expanding the market: If most people can’t afford to buy your services, the size of your market dramatically increases if you are able to a) lower the prices of your products by decreasing costs, and/or b) by helping improve the income of said people. Combining both can be a powerful way to grow the business and create a more positive impact all around you.
Source for innovation: As mentioned in our earlier article social issues need to be addressed and this in return can create business opportunities – “more than 80% of economic growth comes from innovation and application of new knowledge.” People-centric innovation (social innovation) enables the business to tap into that growth and reap benefits.
Initiatives to Consider
There are a lot of organizations that go far beyond the basic in-house social needs and are willing (and are financially capable) to give back to communities with charity work, donations, education grants, and various volunteering and community engagement initiatives.
However, not every company is capable of running such initiatives. Smaller-scale improvements like supporting your employees in setting up home offices with recycled or new equipment can be a great morale boost. In return, it creates comfort for people to work from home, reducing time spent commuting and/or using cars, leaning toward the Planet bottom line. With sustainability, every small effort counts.
Paid internships for students.
Organizing educational projects for externals (i.e., coding academy for students, job searching training).
Skill training and learning opportunities for employees.
Internal anti-racist training.
Employee surveys or feedback to keep everyone in the loop.
Salary transparency.
Employee stock plan.
Volunteering work within the nearest communities.
Reporting
Topics to report on and how your organization’s initiatives affected them can be:
Demographics of your employees and partners (i.e., working with small or minority-owned businesses).
Vacation days collected and used to see whether employees are rested and not overworked.
The average difference between wages and finances needed for minimum living standards in the area.
Hours spent on employee or external communities’ training.
Information on second-tier suppliers (i.e., where and how your first-tier suppliers are sourcing materials).
Profit
Profit by default seems to be the most analyzed and the best-understood segment of all the three covered in this article. By definition, profit means “money that is earned in trade or business after paying the costs of producing and selling goods and services”.
TBL is not meant to discount profit in any way – rather incorporate it into the other two legs of sustainability: investment in social initiatives or environmental projects relies directly on profit and a company that does not do well financially cannot contribute to the other areas – social and environmental impact.
Profit refers to the influence that the organization is creating on the whole environment within which it operates: ethical means to earn a profit; cooperating with and supporting ethical partners; fair wages and full taxes paid.
Profit as a component of TBL is pretty straightforward, yet there are certain aspects that might be confusing. And it seems to arise from a two-sided view of Profit: the philanthropic take with emphasis to give back to society as a charity, and pure profit to satisfy shareholders.
However, when talking about sustainability and the triple bottom line, these two sides are inseparable. The company can stay in business and drive value for the People and the Planet only if it makes a profit.
The triple bottom line’s Profit is a cycle: a business that makes a profit can then invest in innovation, creating a positive impact on the Planet and the People; can then pay taxes that in return will be used for social good; can then grow to create jobs for People and so on.
Conclusion
The triple bottom line like other sustainability-oriented initiatives can seem quite idealistic in a world still strongly focused on profit.
But as McKinsey report over the past 5 years, investment into sustainable funds has been on a rise and even if current environmental, social, and governance (ESG) frameworks are far from perfect, ESG considerations are becoming more important in companies decision making. In addition, investing in sustainable innovation does result in stronger economies, higher living standards, and more opportunities for individuals.
There are no better words, to sum up this article than John Elkington’s words:
“To truly shift the needle, however, we need a new wave of TBL innovation and deployment. None of these sustainability frameworks will be enough, as long as they lack the suitable pace and scale — the necessary radical intent — needed to stop us all overshooting our planetary boundaries.”
The challenge here is that businesses still must satisfy shareholders and to deliver the value they have to make tradeoffs. There’s no one golden rule on how to satisfy all three areas of TBL equally, it is a continuous, balancing act, and decision-making should be based on long-term goals. But the fact is, that decisions must be made, and it is the best time to go beyond planning and start implementing.
This article was previously published in Viima’s blog.
Image Credits: Unsplash, Viima, Pexels
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In the exhilarating rush of creation, we often celebrate innovation as an unmitigated good. We focus on the problem solved, the need met, and the market disrupted. But as a human-centered change and innovation thought leader, I am here to challenge that narrow perspective. Every new product, every disruptive service, and every breakthrough technology casts a shadow — a trail of unforeseen consequences that can range from minor inconvenience to societal-level disruption. True innovation leadership is not just about solving today’s problems; it’s about anticipating the ripple effects of your solution and taking proactive steps to mitigate potential harm. The greatest innovators are not just brilliant creators; they are also responsible stewards of the future they are building.
The paradox of progress is that our focus on a single, positive outcome often blinds us to the broader systemic impact. We drop a stone in a pond, focused solely on the satisfying splash, and fail to see the ripples that wash up on distant shores. This lack of foresight is not a moral failing, but a cognitive one. Our brains are wired for a singular focus, which is excellent for solving complex problems but poor for considering the peripheral damage. To build a more resilient and ethical future, we must intentionally embed a new practice into our innovation process—one of anticipating and mitigating unintended consequences from the very beginning.
A Human-Centered Framework for Responsible Innovation
Moving beyond a naive optimism requires a new framework for innovation—one that is built on ethical foresight and systemic thinking. Here’s how you can proactively address the risks of your next big idea:
Conduct a “Worst-Case” Brainstorm: Gather your innovation team and intentionally brainstorm all the negative outcomes. What’s the worst-case scenario? Who could be harmed? How could this be misused? This exercise isn’t meant to stop the project, but to expose potential vulnerabilities and build resilience into the design.
Practice Systemic Empathy: Go beyond your direct user. Map out the entire ecosystem your innovation will enter. How will it affect competitors, adjacent industries, communities, and even the planet? The goal is to develop empathy for every stakeholder in the system, not just the one you’re designing for.
Design with a Moral Compass: Build ethical considerations into your design principles. Is your product a tool for connection or a platform for division? Is it creating value for everyone in the supply chain or just the end user? These questions should guide your decisions, not just be addressed in a post-mortem.
Build for Transparency and Control: Empower your users. Give them clear, easy-to-understand controls over their data and experience. When people feel a sense of agency, they are more likely to trust your platform and less likely to feel exploited by an unforeseen consequence.
“The best innovations are not just profitable; they are wise. They create the future without leaving a wake of unaddressed problems.”
Case Study 1: The Social Media Revolution – The Unforeseen Cost of Connection
The Intended Consequence:
In the early days, platforms like Facebook, Twitter, and YouTube were designed with a clear and noble purpose: to connect the world, give a voice to the voiceless, and foster a global community. The goal was to break down barriers and create a more open and connected society. This was the “splash” that captivated the world.
The Unintended Consequences:
As these platforms grew, a dark side emerged. The design choices, particularly the algorithms that prioritized engagement and virality, led to a cascade of unforeseen consequences: the proliferation of misinformation and fake news, increased social and political polarization, a rise in cyberbullying and online harassment, and a measurable negative impact on the mental health of users, particularly adolescents. These unintended consequences were not malicious; they were the direct result of a lack of ethical foresight and systemic thinking. The companies were so focused on optimizing for a single metric—user engagement—that they failed to consider the human and societal harm it would cause. The trust that was once a given for these platforms is now a major challenge.
The Lesson:
The social media story is a cautionary tale for all innovators. It teaches us that a single-minded focus on a positive outcome can create a new set of complex and damaging problems. It shows that the true measure of an innovation’s success is not just its adoption, but its long-term impact on the world. Ethical foresight is not a luxury; it is a fundamental requirement for building a responsible and sustainable technology.
Case Study 2: The E-Scooter Boom – Navigating Urban Chaos
The Intended Consequence:
When companies like Lime and Bird launched their e-scooter services, their purpose was clear and positive: to provide an efficient, fun, and eco-friendly “last-mile” transportation solution for urban commuters. The goal was to reduce traffic congestion and carbon emissions. The initial reception was enthusiastic, and the model spread rapidly across cities worldwide.
The Unintended Consequences:
The sudden influx of thousands of scooters led to a wave of unforeseen problems. They were left haphazardly on sidewalks, creating accessibility hazards for people with disabilities and a safety nightmare for pedestrians. Injuries from falls and collisions soared. Cities were unprepared to regulate the new technology, leading to public outrage and, in many cases, a swift ban of the services. The innovators were so focused on the user experience of the ride itself that they failed to consider the broader system of the urban environment they were disrupting.
The Lesson:
The e-scooter case is a powerful example of how a failure of systemic thinking can derail a promising innovation. While the companies had a good intention, they did not adequately consider the impact on the public right-of-way, city regulations, and the safety of non-users. In response, they have since had to pivot and collaborate with cities to create designated parking zones, improve safety features, and build better relationships with local governments. This case demonstrates that proactively engaging with all stakeholders—not just your target consumer—is essential to mitigate risk and ensure long-term viability.
Conclusion: The Ethical Imperative of Innovation
Innovation is humanity’s greatest engine of progress, but it is not without its risks. The most powerful innovations of the future will be those that are not only technologically brilliant but also ethically wise. As leaders and innovators, our most critical role is to move beyond the narrow focus of problem-solving and embrace a broader responsibility to the systems and people we impact.
The next time you are building something new, take a moment to look at its shadow. Ask the difficult questions. Challenge your assumptions. And remember that the most profound and lasting change is not just about what you create, but how you create it—with foresight, with empathy, and with an unwavering commitment to leaving the world better than you found it. The future depends on it.
Extra Extra: 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: Wikimedia Commons
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For too long, the gig economy has been viewed through a narrow, transactional lens. We’ve seen it as a way to cut costs, fill temporary gaps, or manage seasonal demand. The debate has largely centered on labor laws and the future of work, overshadowing a far more critical conversation. As a human-centered change and innovation thought leader, I am here to argue that the gig economy is not just a labor model; it is a profound innovation engine. By embracing independent talent, organizations can unlock a level of creativity, specialized expertise, and strategic agility that is simply unattainable within the confines of a traditional, full-time workforce. The future of innovation is flexible, decentralized, and driven by a global network of independent thinkers.
The traditional corporate model, built on a foundation of long-term employment, is ill-equipped for the speed of modern innovation. It’s slow to hire, slow to adapt, and often suffers from institutional inertia. The gig economy shatters these limitations. It provides a direct, on-demand connection to a world of highly specialized professionals who are often at the forefront of their fields. These individuals are not just freelancers; they are experts in AI, behavioral psychology, robotics, and design, who bring an outside-in perspective free from internal politics and organizational biases. Tapping into this talent pool is no longer just a cost-saving measure; it is a strategic imperative for any company that wants to stay relevant and competitive.
The Three Pillars of Gig-Powered Innovation
Harnessing the innovation potential of the gig economy requires a strategic mindset and a shift in how we think about talent. Here are three core pillars:
Access to Niche and Adjacent Expertise: Innovation often happens at the intersection of different fields. The gig economy provides instant access to highly specialized skills that you don’t have—or don’t need full-time. This allows you to quickly prototype, experiment with emerging technologies, and solve problems that your internal teams might not have the expertise for.
Speed and Agility: The gig model allows organizations to create lean, project-based teams that can scale up or down in real-time. This enables a true “fail fast” culture, where you can test a new idea with minimal long-term risk. There’s no lengthy hiring process, no large capital investment, just the ability to assemble the right team for the right moment.
Diversity of Thought: Independent professionals often work across multiple industries and cultures. They bring a fresh perspective and a unique synthesis of ideas from different contexts. This diversity of thought is a powerful antidote to groupthink and can lead to breakthrough solutions that would never have been conceived within a single organization’s walls.
“The gig economy is not about hiring temporary labor; it’s about subscribing to a global network of specialized intelligence.”
Case Study 1: P&G’s “Connect + Develop” Model
The Challenge:
In the early 2000s, consumer goods giant Procter & Gamble faced a major innovation dilemma. Its internal R&D was efficient but insular. The company realized that many of the world’s best inventors and scientists didn’t work for them. They needed a way to tap into a broader network of external talent to accelerate their product development without massive, long-term capital investments.
The Gig-Powered Solution:
P&G launched “Connect + Develop,” a program that fundamentally embodies the principles of the gig economy at an enterprise scale. Instead of relying solely on internal scientists, the company created a system to crowdsource innovation from independent inventors, academics, and research organizations worldwide. They would post specific, well-defined problems (e.g., “Find a way to make laundry detergent work in cold water”) and offer incentives for the best solutions. This was a direct move from a closed innovation model to a flexible, gig-based one.
Access to Expertise: P&G gained access to a vast network of independent scientists and researchers, enabling them to solve problems that had stumped their internal teams for years.
Reduced Risk: The company could experiment with a wide range of ideas without the risk of hiring full-time experts in every niche field.
Speed and Agility: The model dramatically reduced the time it took to move an idea from concept to market, as they could leverage existing, proven intellectual property.
The Result:
The “Connect + Develop” program became a massive success. P&G estimates that over half of its product innovations now come from outside the company, generating billions of dollars in revenue. The model proved that an established giant could successfully leverage the principles of a gig economy to drive continuous, large-scale innovation. It fundamentally shifted their mindset from internal creation to global collaboration.
Case Study 2: Airbnb’s Early Growth through Independent Talent
The Challenge:
In its early days, Airbnb was a lean startup with a small, core team focused on a single, disruptive idea. To grow and iterate quickly, they needed a wide range of skills—from specialized coding and data analysis to design and marketing—but they lacked the capital and time to hire full-time employees for every single need. The challenge was to be agile without burning through their limited resources.
The Gig-Powered Solution:
Airbnb, like many early-stage startups, used the gig economy as a strategic resource for innovation and growth. They leveraged platforms like Upwork and specialized talent networks to access independent contractors who could work on specific, well-defined projects. For instance, they hired freelance designers to test new website layouts, independent writers to create compelling content, and data analysts to quickly crunch numbers and inform strategic decisions. This “pay-as-you-go” approach to talent was a critical enabler of their rapid iteration cycle.
Agility and Speed: The ability to quickly bring on an expert for a specific project allowed Airbnb to test ideas and pivot with incredible speed.
Cost-Effectiveness: They could access high-level talent without the long-term cost and commitment of a full-time employee, which was crucial for a cash-strapped startup.
Focus on the Core: By outsourcing non-core, specialized tasks to independent professionals, the small founding team could remain focused on the central business strategy and product vision.
The Result:
The gig economy was instrumental in Airbnb’s journey from a small startup to a global giant. By strategically using independent talent, they were able to build and scale their product rapidly, test new ideas, and prove their business model. This case study demonstrates how the gig economy is not just a solution for large corporations but is an essential tool for startups to innovate with speed and efficiency.
Conclusion: The Future is a Hybrid Workforce
The future of innovation is not a binary choice between a full-time workforce and a gig economy. It is a powerful hybrid model that combines the deep institutional knowledge and cultural foundation of a core team with the specialized skills, fresh perspectives, and agility of independent talent. This new workforce architecture allows for a level of dynamism and creative problem-solving that has been impossible in the past.
As leaders, our challenge is to move beyond old paradigms and embrace this new reality. We must learn to scope problems, manage external talent, and create a culture that values collaboration regardless of employment status. The gig economy is not just a trend; it is a fundamental shift in how we access human capital. The organizations that see it as a strategic engine for innovation will be the ones that win in the future, building a more resilient, agile, and creative enterprise for generations to come.
Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.
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For too long, innovation has been treated as an exclusive, top-down process. We build small, elite R&D teams, sequester them in innovation labs, and task them with generating the next breakthrough idea. While this model has produced many successes, it is fundamentally limited. It relies on the finite expertise of a select few and often suffers from groupthink, tunnel vision, and a detachment from the very customers it seeks to serve. As a human-centered change and innovation thought leader, I am here to argue that the most powerful engine of creativity is not a closed-door meeting, but the wisdom of the crowd. The future of innovation belongs to those who are willing to democratize the process and harness the boundless creativity of a diverse, global collective.
Crowdsourcing is more than just a buzzword; it is a strategic shift in mindset. It is the practice of outsourcing a task or problem to a large, undefined group of people, whether they are employees, customers, or the general public. By opening up the innovation process, organizations can access a level of diversity in thought and experience that no internal team could ever replicate. It moves the focus from a single point of origin to a decentralized network of passion, insight, and fresh perspective. The problems that have stumped your experts may be solved in minutes by someone with a completely different background. The key is to stop asking “who can solve this?” and start asking, “who might have a good idea?”
The Foundational Pillars of Crowdsourced Innovation
Successful crowdsourcing is not a random act of faith; it is a carefully designed, human-centered process built on a few core pillars:
Openness and Access: The first step is to break down the walls. Create a clear, low-friction platform where anyone can submit an idea. The easier it is to participate, the more diverse and numerous the ideas will be.
Specificity and Challenge: The “crowd” needs a clear, compelling problem to solve. A vague request will yield vague results. Frame the challenge in a way that is inspiring and provides enough context for people to contribute meaningful solutions.
Meaningful Incentives: People are motivated by more than just money. While cash prizes can be effective for technical challenges, a sense of purpose, recognition, or the opportunity to see their idea come to life can be just as, if not more, powerful.
Transparency and a Feedback Loop: The crowd needs to feel heard. Be transparent about the process—how ideas are evaluated, why some are chosen, and what happens to the winning submissions. Closing the loop by celebrating the contributors, even those whose ideas weren’t chosen, builds trust and encourages future participation.
“The best ideas don’t come from the people you pay to think; they come from the people who can’t stop thinking.” — Braden Kelley
Case Study 1: Lego Ideas – From Fan Passion to Product Powerhouse
The Challenge:
For decades, Lego relied on an internal team of master builders and designers to create new sets. While this produced incredible products, the company faced a challenge: how to tap into the passionate and creative community of Lego fans who were building their own amazing creations at home. This was a classic case of an innovation process being limited by its own walls.
The Crowdsourcing Solution:
Lego launched Lego Ideas (originally Lego Cuusoo), a brilliant crowdsourcing platform that turned its most loyal fans into an R&D department. The process is simple: anyone can submit an idea for a new Lego set. If the idea garners 10,000 votes from the community, Lego’s internal team reviews it. If it is chosen for production, the creator receives a percentage of the sales and credit for the design. This model is a masterclass in human-centered innovation.
Incentivized Engagement: The promise of having their design sold globally and receiving a portion of the profits is a powerful incentive for creators.
Built-in Feedback: The voting process acts as a powerful market validation tool. Lego gets instant feedback on which ideas resonate most strongly with their core audience.
Community Building: The platform transformed passive consumers into active co-creators. It fostered a vibrant, global community of builders who felt a deep sense of ownership and pride in the brand.
The Result:
Lego Ideas has been a resounding success, leading to the creation of some of Lego’s most popular and iconic sets, including the *Minecraft* series and the *Back to the Future* DeLorean. The program proved that the best ideas were not always in the boardroom but were being built in the homes of their most dedicated fans. It leveraged passion, talent, and a sense of shared purpose to build an innovation engine that is both profitable and profoundly human.
Case Study 2: The Netflix Prize – A Technical Challenge for a Global Crowd
The Challenge:
In the mid-2000s, Netflix was a DVD-by-mail service. A key part of its business model was its movie recommendation engine, which was good, but not great. Improving its accuracy by just a small percentage could lead to millions of dollars in savings and increased customer satisfaction. This was a highly technical, data-driven problem that had stumped its internal team of brilliant engineers.
The Crowdsourcing Solution:
Netflix took a bold and unconventional approach. They launched the Netflix Prize, a global crowdsourcing competition with a prize of $1 million to the first team that could improve their recommendation algorithm’s accuracy by 10%. They provided a massive dataset (anonymized, of course) and a clear, measurable goal. The contest was a highly structured, incentive-based crowdsourcing effort that attracted academics, data scientists, and engineers from around the world.
A Clear, Measurable Goal: The 10% improvement target was specific and quantifiable, which made the challenge compelling to a technical audience.
High-Stakes Incentive: The $1 million prize was a significant reward that attracted some of the world’s best minds in a way that traditional recruitment could not.
Intellectual Freedom: Netflix provided the problem and the data, but no one was constrained by internal bureaucracy, politics, or assumptions. The crowd was free to experiment without limits.
The Result:
The contest was a wild success. Over 40,000 teams from 186 countries participated. After three years, a collaborative team of researchers finally met the 10% goal, with the winning algorithm being an ensemble of different methods. The Netflix Prize not only solved a critical business problem but also created a new industry standard for recommendation engines and demonstrated the power of open innovation. It proved that for highly complex problems, the right answer may not be in your office, but in the collective genius of the global crowd.
Conclusion: The Future of Innovation is Collaborative
The era of closed-door innovation is over. In a world defined by complexity and rapid change, the ability to crowdsource creativity is a non-negotiable strategic capability. It’s about more than just getting new ideas; it’s about building a more resilient, connected, and human-centered organization. By treating your customers, employees, and the global community not as passive audiences but as active collaborators, you can tap into a wellspring of creativity that is truly infinite.
As leaders, our role is to move beyond the traditional models and create the platforms, the incentives, and the cultural mindset that empowers everyone to contribute. The most profound innovations of the future will not be created by a single genius in a lab, but by the collective wisdom of a motivated crowd. It’s time to open our doors and invite the world to help us build a better future, together.
Extra Extra: 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: Freepik
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Recently I had the opportunity to interview Mauro Porcini, author of the new book The Human Side of Innovation: The Power of People in Love with People.
Mauro Porcini is PepsiCo’s first ever Chief Design Officer. He joined the food & beverage corporation in 2012 and in said role he is infusing design thinking into PepsiCo’s culture and is leading a new approach to innovation by design that impacts the company’s product platforms and brands, which include Pepsi, Lay’s, Mountain Dew, Gatorade, Sodastream, Doritos, Lifewtr, Bubly, Aquafina, Cheetos, Quaker, 7Up, Mirinda, amongst many others. His focus extends from physical to virtual expressions of the brands, including product, packaging, events, advertising, fashion and art collaborations, retail activation, architecture, and digital media.
The interview dives into multiple aspects of innovation and design, including risk management, incremental versus disruptive innovation, the importance of language, meaning, and more.
Without further ado, here is the video recording:
Thanks to you Mauro for sharing your insights with our global human-centered change and innovation community!
To learn more about Mauro’s views on the importance of our humanity to design and innovation, grab yourself a copy of his new book The Human Side of Innovation: The Power of People in Love with People.
If you are more of a reader, then WITH FAIR WARNING, below you will find the questions I asked Mauro and a RAW TRANSCRIPT pulled directly out of YouTube without punctuation, etc. for the brave of heart.
I’m sorry, but it’s the best I can do right now. Here is the RAW, UNPUNCTUATED TRANSCRIPT of our interview:
1. Why is there no innovation without risk?
First of all thanks for having me it’s a pleasure to be here with you today why there is no innovation with our risk because the moment you change the status quo the moment you take anything it could be a product a brand
And experience a service anything and you modify uh its nature you modify that thing to take you to another status by definition you don’t know exactly uh what is going to happen you cannot control all the variables even just the fact that by modifying uh the solution people will react to it in a variety of different ways there is a wonderful um author and philosopher from Italy that inspired me since I was a child his name
Is pirandel and he wrote a book that in Italian was called Uno nesuno centonida I do remember exactly how they translated the title in English is available in many different languages but literally it means one nobody one hundred thousand and it talks about how we are one person but then eventually we are seen by the people surrounding Us in so many
Different ways and so we are 100 000 different people for all the people looking at us and interacting with us and seeing something different in us and then it goes on saying well because of this you know if you’re not yourself anymore and you are all those hundreds of thousands of interpretation uh you become nobody now we don’t need to think about this third iteration and this idea of nobody but that inspired me since I was very young because this is true for
Us as people but this is true also for anything we do as designers innovators entrepreneurs brand leaders we create something but we have no idea how that something is going to be interpreted by the people out there how they’re gonna use it they could spin it in One Direction in the other direction and so by definition when we create something we need to try to understand as much as possible the people in front of us their needs their wants their dreams and then
We need to really Buffet we need to do a proposal Ernesto juice Monday the founder of the lighting company are telling me that is Iconic you know premium luxury lighting firm used to say I don’t create solutions for people I create proposals and we’ll see how they will go obviously you know I try to manage the risk of The Proposal I try to control all the variables but we need to understand that we are Innovative and we’re really innovating we are need to
Be ready to take risk and we need to manage the risk with all the tools that we can with data we research with our knowledge but at the end of the day we need to be ready to take the risk and we also need to be ready therefore to manage the risk I used to work in 3M and the famous iconic CEO of 3M for many many years William McKnight used to say that once again there is not Innovation with our risk he was saying essentially the same thing and therefore we need to
Manage risk in the culture of the common we need to be okay with missteps with mistakes with failures or as I like to call them with experiments we need to be ready to embed the idea of failure slash experiment in our financial algorithms and we need to make sure that if somebody make an experiment that doesn’t go in the right direction by the way an experiment that by definition is all about testing and ideas so in any direction it goes is probably the right
Direction but you understand what I’m talking about when somebody makes an experiment proceed eventually by people as a failure or a mistake we don’t crucify the person we actually celebrate eventually the learning coming out of the misstep and we need to put in place also and ecosystem our processes and tools to extract as much learning out of that misstep and share the learn with the rest of the organization
Yeah I think I think it’s very important that that last Point especially that you just made around learning is the the key thing that you’re trying to achieve with any experiment and you can learn uh from success and failure and you know most of the time we we focus on trying to eliminate risk but I think you’re right that it’s key to not only manage it but manage the acceptance of the risk so so building upon that
2. You say innovation should start from our personal lives, but we also frequently say in design thinking that ‘you are not the customer’. How do you reconcile the two?
I love this question and nobody asked me this question yet I love it for a reason in the American culture of design that is the cultural design that essentially took to fame the idea of this I think you know and celebrated the idea of the same thinking I think there is somehow
And misunderstanding about what design thinking really is because we’ve been celebrating so much the processes the tools the ways of working uh that we think that is enough to bring in a consultant do a workshop on this and thinking all of a sudden now everybody knows the methodology we can do design think we can solve the problems of the world with that we think that we can bring in a design leader in these organizations and somehow
Introduce the idea of the same thinking and once again we’ll solve everything and the reality is that design thinking is not just a tool it’s not just about the tool eventually if you want to identify the same thinking as a methodology it’s not just about that there is the design thinker behind that and so there is all this conversations about the fact that you need to somehow detach yourself from uh the product the brand experience you
Need to focus everything on your end user or your customer or your consumer on the people you serve I like to call them people human beings and and so a lot of people think that you need to remove the sensitivity of the design The Poetry of the design the ability of the designer to understand those insights to observe people and translate that into poetry
Translate that into something that is unique that is different you know you can observe a reality in a neutral way as much as you want but at the end of the day if you put 20 people observing the same reality in the same way these 20 people we create solutions that are 20 times different on the base of their sensitivity and this is great we need to say that we need to preserve that is so important to understand that the touch of the design
Interpretation of the designer you know how the designer translates something that is objective that is neutral that is read about understanding the people you have in front of you but then add color nuances poetry as I called it earlier to make it magic to make it unique and this is the reason why you cannot replace designers with artificial intelligence at least until artificial intelligence
Will be able to replace human beings but then you know replacing designers or innovators will be the last of the problems or Humanity because artificial intelligence will think that you don’t need Humanity at all because we are totally in efficient in this plan I think we are destroying you know our society and our planet but before we get there hopefully we will never get there this sensitivity of the person the human being is something
We want to save and we need to stop talking about design thinking and Innovation processes as processes that need to be just objective and neutral without realizing the importance of having human beings with their emotions and their interpretations in these processes this is so clear when you are in a startup when you are a star designer to design a chair or a piece of light they make the difference as the
Entrepreneur make the difference in a subtop and then we work in corporations we work a scale and we forget the importance of the human being with a unique approach and sensitivity that can transform a cold data an observation that is available to anybody out there in Magic The Magic that make your company grow the magic that add shoulder value to your stock the magic the set you apart from competition yeah very very great points I think that
Too often people get lost in the idea of design thinking as a process when it’s more about a mindset and like you said the magic that that comes from identifying that key human insight and then doing something interesting with it
3. Why is incremental innovation no longer enough?
Incremental Innovation is safer and is a stable way to keep your company going to keep it up to speed and to progress towards something bigger and
Better so we need that is not enough because we live in a world that is continuously disrupted by new things in the world of business that means that we have so many new companies new brands new products coming in in their business reality competing with our products and brands in our life it means that there are so many things changing all the time and we live in total uncertainty and therefore
The ability to change and to flex and eventually to these wraps is part of this new ecosystem we live in is becoming many situations for you know many people uh in many companies even a condition for survival you know if you’re a person you lose your job or you’re attacked by a virus or something happen imagine you’re like you need to be able to disrupt and and and and this is creating so much anxiety in this Society is so much an
Exciting in companies as well but let’s go back to you know the context of business in companies we live in a world where today anybody can come up with an idea get easy access to funding through their proliferation of investment funds and all platforms like kickstarter.com where you can crowdfund your idea the Custom Manufacturing is going down driven by globalization and new technologies you can go straight to the people you serve what I like to call
People and other person called consumers through the e-commerce platforms to sell them stuff and through social media to promote your ideas and products in all these areas the companies of the past were building their huge barriers to entry middle scale of production distribution and communication it was so difficult to go compete with a big brand with a big company for the man and the woman on the street today they can and so the big and the small are left with
Just one solution they need to focus on the needs and wants of people and create something extraordinary for them the way we are trying to do that at PepsiCo is to think of a future uh where you know understand what is the future understand the societal diffusion understand the freedom marriage category of the future and understand what kind of Road PepsiCo could play in in the future and then understand what kind of product portfolio we need
To have to be ready to the Future so already that thinking is somehow disruptive or generates idea that are disruptive then you need to figure out how to use them this kind of ideas inform our Innovation strategy in turn developing things in-house it informs our partnership and you venture strategy it informs our acquisition strategy so you need to find ways to be disruptive in a strategic way
To be ready to a war that is Shifting and changing in the speed of light and the normal cycle of innovation based on incremental linear innovation don’t work as well as they used to work because of the speed of change it doesn’t mean you need to develop everything from within it means that you need to develop an innovation strategy that then can find different kind of outputs you can do everything by
Yourself you can do it with Partners out there or you can eventually make Acquisitions as well if you are a company I can afford it and this is by the way interesting because in the startup kind of world we live in the acquisition strategy is what many of these are Tabs are looking for so it’s a health ecosystem where you have entrepreneurs eventually build up new things new ideas and you have corporations at a certain point are
Alive and work with them so is is a very interesting new scenario but both the beginners model need to understand how to combine incremental Innovation with more disruptive innovation and thinking definitely definitely and that that’s uh that’s a very important point that without companies seeking to acquire startups then fewer startups would it would exist because they wouldn’t see that as an exit um very cool so uh let’s go back to
Something that you spoke about there just recently there which is …
4. What is the harm in calling people consumers?
Look I studied design in school we would never call the people we designed for consumers it would be so weird and we’re calling them eventually users most of the time people human being we were talking already back then 30 years ago about human centricity but not as a nobody thing it was just the way we were doing things and so if you
Call People’s consumers you’re gonna face that you’re gonna focus on the idea of selling them stuff obviously I mean you look at them as entity buying your product and you want to make money on by the way on top of it you’re gonna categorize people and reduce people to the area of consuming but you know what me you my wife my daughter my friends we do so much more in life than just consuming you know we do so many more things and I
Don’t want companies and Brands to look at me as a consuming being I want to have companies and Brands looking at me as a human being for who I am if you call them users at least you’re gonna focus on the use of the product you’re offering them and so you’re gonna try to satisfy the needs that they have and create products that are functionally relevant and desirable but if you look at them as people as
Human beings you’re gonna go above and beyond you’re going to think about them holistically you’re gonna think about them as people you care about people you love you know the subtitle of the book is people in love with people and when you love somebody could be your kids your wife your husband your significant other your parents and your friends what do you do well you try to do more you try to really make these people happy to do
Magic and expect that you want to make sure that you are serving them at 360 degrees and this is you know the mindset and the culture you build in your company if you stop calling them consumers or even users I used to have to call them for who they are people human beings it changed completely words are powerful and and a word can help you shaping the culture of an organization call them people and you will have armies of other people in love with
People trying to create something extraordinary for them is the product is the brand is the service you’re not going to be happy just with something that is good enough because it’s profitable and people are buying it you’re gonna try always to create something that is extraordinary because you want first of all to make people happy now this was a luxury in the past eventually for companies today is a need and is a must because of the
Competitive landscape we live in with barriers to entry crumbling down under the Winds of globalization new technologies and digital media and therefore the need of this company is already creating something extraordinary in all the different dimensions because if you have one of few areas or weakness that in the past you could protect your barriers to entry today are exactly the entry point for your competitors to come and erode your market share your mind
Share your love share with your with the people you serve well I think I think those are all uh very important points that you have to bring it away from the ACT to consumption and back to the the whole person if you really want to connect with the people that you’re looking to to serve and to bring value and meaning to uh speaking of meaning what does it take my dog that is crying usually stays on the desk with me one of the two and now it’s not but it cannot come out by itself
5. What does it take to make a design meaningful?
Every time we create a product um or any solution in general somehow we are touching the life of these people in a variety of different
Ways and we can add um convenience safety Beauty style and a variety of other values to the life of these people or on the opposite direction we can make the life of these people and I’m we can create complications to their lives we can make it challenging and difficult therefore when we create something we should always be driven by this idea of creating something that is relevant to them
And relevant to the company you know I I and and so I Define this relevance through a series of principles of meaningful design that I talk about in the book there are two foundational principles that are one the idea of creating something that is functional that is emotional and is semiotic so it fulfilled a specific functional need it creates uh engagement and emotional level between you and the product in the
Quran and then somehow it represents you as a semiotic value it tells a story about you to the rest of the world and then the other foundational principle is that the the solution should be essentially and I synthetizing in a way you know but new unique different uh from anything out there then there are a series of other principles that somehow take you the level down and give you a direction on how to design these products the product should be
Sustainable from aesthetic standpoint from a functional standpoint from an equal ecological standpoint from a social standpoint respectful of people um from a emotional stem points from a financial statement there are a series of um values and I call it sustainable meaning that you need to think about your portfolio of products and Solutions in time it needs to be it needs to add all these different layers of value over
Time uh it’s not just about fulfilling a solution I need in the short term but really thinking about how the solution is sustainable over time and now you need to be ready to change over time to create something extraordinary for them Then There are a series of other clarifying principles but I invite you to have a look at the book it will be a longer story but he told you know those principles are really about the sensitivity of the designer and some of
The things we discussed earlier in this conversation uh about the fact that design is not just about the cold solution to a problem to a product but it’s a story that is the sensitivity of of uh the the the designer or the entrepreneur or anybody coming up with a lady and creating the solution behind that very good that that story is definitely challenging to create I’m sure
6. Why do we work so hard as human beings to get the right answers to the wrong questions? How can we do better?
Well often we live our lives personal lives as well as our professional lives answering to expectations that come from order and so here you are and they tell you
Well you need to do this and to do that you need to you know have certain steps in your life and you’re like okay this is what they’re asking me to do I comply I go to high school I go to university I get married eventually I do certain things that Society expect me to do you go to a job and they tell you this is your job description I hire you because of this and then later on they tell you well this is your project this is the brief
And what most of the people do is answering the brief working within the boundaries of the job description living within the boundaries of those expectations of society there are some people though and usually this is the mindset of the innovator the challenge the convention the challenge the question the challenge the brief not for the sake of challenging but just because they want to understand better they want to understand if what
They ask to do is the right thing to do for them but also for the people asking the people being your boss the company or even Society do we live in the right Society should we challenge the conventions of this Society is my job description great for my company or I could do more than that to really help the company in ways that the company doesn’t even realize is the question in the brief the right one
Or actually they should ask me something else because if I just answer the question I’m gonna generate a series of answers that are great that are right but the question is wrong and therefore by definition also those right answers will be wrong won’t have value as an example is an example I make in the book as well imagine they ask you to design a bridge and many people would be like okay they asked me to design a bridge so I’m going
To design a bridge and I’m going to design a bridge to these beautiful that is functionally unbelievable and and I I’m gonna generate you know a series of bridges and they will be incredible designers and Engineers that we generate beautiful and super functional bridges that we all admire and they’re very iconic but the real innovator and by the way the philosopher the child will ask why
Here I am with another dog just a second she’s well uh the real innovator as well as the philosopher and a child they all ask why is typical of the philosopher to ask why and then again why again why is a technique to arrive to their root cause to the primary cause of everything the children do the same for other reasons and so once when you start to apply you will figure out in the case of the bridge that first of all
Yes you need to move from A to B why do I need a bridge of course you need to move from one side of the river to the other side of the river but then you ask again why why do I need to move on the other side of the river and they will tell you what because in the other side of the river there is the hospital and therefore the people of this town they need to take a bridge to arrive in a convenient way to the hospital if you stop there
Immediately you will think well maybe the bridge is the solution but maybe I can invent something else maybe I’m going to invent a sort of drone that you can write that can make each person real time super quick much faster than taking a car and going on a bridge arriving to the other side of the river so already that is an innovation instead of Designing a bridge you’re designing a machine that can fly it can take you to the hospital
But if you keep asking why maybe you arrive to realize that actually you don’t need the hospital on the other side you know the hospital is there but you can build an Hospital on this side of the river and so instead of Designing yet another Bridge you’re gonna design an hospital that is by far better Solutions because these people can have right much faster to the hospital when they did it than taking a bridge and going to the other side of the river
This is a very banal example very simplistic example to show how often we keep creating solutions for problems that are not the right ones to solve and if we will question the challenge the brief who arrive to something very different I did this all my life because of a man that with these behaviors and the way he was conducting business somehow taught me the kind of mindset it was my partner in the agency I created many years ago his name is Claudio a
Famous shoe business producer imagine like meeting Jay-Z here in the United States when you’re 24 and creating a company with this person so that’s what happened to me and I learned by observing him how he would challenge everything and every time thinking how can I do something different from uh what I did you know even himself before or from what everybody else did before and he was using this technique of always trying to understand the root
Causes and how you could really create something relevant for people in a different way and so with that kind of mindset I joined 3M I joined PepsiCo and I started with challenging my own job description creating something different in the way I was interpreting my job they were asking me to design products mostly the aesthetic side of a product a 3M I created the chief design officer position over time doing much more than what they were asking me and I thought
I’d be in so much more value for the company than if I was just designing the style of those two products they asked me to design when I was 27.
Image credits: Pixabay, Mauro Porcini
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But enough delay, here are October’s ten most popular innovation posts:
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In the Before Times, we attended conferences to learn, make connections, and promote ourselves and our businesses. Then COVID hit, and conferences became virtual. Although that made them easier to attend, it also made them easier to skip. Because, if we’re honest, most conferences were more about connecting and promoting than learning.
Last week, I went to one of those rare, almost mythical, conferences more focused on learning and connecting than promoting. It was fantastic! It was also in Nebraska (which is a pretty interesting place, btw).
It’s a bit embarrassing to admit, but if you asked me to define “Strategy,” I’d respond with a long and rambling answer. Which means I can’t define “strategy.” This admission is especially embarrassing because I have a resume littered with places where I developed, drafted, and implemented strategies, so I should have learned what the word means. But nope, I didn’t.
I suspect I’m not alone.
Asking for the definition of strategy is like asking if you must wear clothes to the office. You should know the answer. But unlike whether or not clothing is mandatory, most of us don’t know the answer, AND it’s easy to get away with never knowing the answer.
The elegant simplicity of Kareen’s definition of strategy blew my mind. It’s short, memorable, and something that most people can understand. Maybe I should share the definition with my alma maters and past employers.
“When we feel threatened, our IQ drops 50 to 70 points”
When I first heard talk about Psychological Safety and Safe Spaces in today’s business world, I rolled my eyes. Hard. As a Gen X-er, I grumbled about how we didn’t need “safe spaces” when I grew up because we were tough and self-reliant, and I lamented the inevitable downfall of society caused by weak and coddled Millennials.
I was wrong.
Psychological Safety is absolutely and unquestionably essential for individuals to grow, teams to work, companies to operate and innovate, and societies to function and evolve. I’ve seen teams and businesses transform and achieve unbelievable success by discussing and living the elements they require for Psychological Safety. I’ve also seen teams and businesses fail in its absence.
These results aren’t surprising when you realize that you feel threatened when you are in a complex situation in which you cannot accurately predict the outcomes. And when you feel threatened, you are half as intelligent, effective, and creative as you are when you’re calm.
So, if you’re a manager and you’re upset that your people aren’t as intelligent, effective, or creative as they should be, it may not be their fault. It may be yours.
“Stage expertise, not industry expertise, is key to innovation success”
There is deep comfort in the known. It’s why we gravitate to people like us. It’s also why companies ask job candidates and consultants about their experience in the industry and choose those with deep experience and impressive expertise. Often, there’s nothing with this question or the resulting decision.
Sometimes, it’s precisely the wrong question.
Sometimes, functional expertise is significantly more important than industry experience. After all, if you’re the hiring manager at a healthcare company looking for a Director of Finance, who would you hire – a Marketing Director from a competitor or a Finance Director from a CPG company?
That’s the case with innovation.
Decades of real-world experience (not to mention the successful launch of 100+ startups) show that successful corporate startup teams had expertise (mindsets, skillsets, executional drive) in the startup’s phase and a working knowledge of the industry rather extensive industry expertise and little to no innovation experience.
Questions are good. The right questions are better. So, the next time you’re staffing up an innovation team (or hiring a consultant), choose based on their innovation experience and willingness to learn about your industry.
Innovation happens everywhere
That’s why people from San Francisco, Austin, Washington DC, NYC, Toronto, Boston, and dozens of other places converged on Lincoln, Nebraska.
We went to see innovation in action and learn about the thriving startup community in the middle of the country. We also went to learn and connect with others committed to creating new things that create value.
Getting our minds blown was a bonus.
Image credit: Pixabay
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Predicting Trends and Uncovering New Opportunities
GUEST POST from Chateau G Pato
In a world of accelerating change, the ability to see around corners is no longer a luxury; it’s a strategic imperative. For decades, organizations have relied on traditional market research, analyst reports, and expert intuition to predict the future. While these methods provide a solid view of the present and the immediate horizon, they often struggle to detect the faint, yet potent, signals of a more distant future. As a human-centered change and innovation thought leader, I believe that **Artificial Intelligence is the most powerful new tool for foresight**. AI is not here to replace human intuition, but to act as a powerful extension of it, allowing us to process vast amounts of data and uncover patterns that are invisible to the human eye. The future of innovation isn’t about predicting what’s next; it’s about systematically sensing and shaping what’s possible. AI is the engine that makes this possible.
The human brain is a marvel of pattern recognition, but it is limited by its own biases, a finite amount of processing power, and the sheer volume of information available today. AI, however, thrives in this chaos. It can ingest and analyze billions of data points—from consumer sentiment on social media, to patent filings, to macroeconomic indicators—in a fraction of the time. It can identify subtle correlations and weak signals that, when combined, point to a major market shift years before it becomes a mainstream trend. By leveraging AI for foresight, we can move from a reactive position to a proactive one, turning our organizations from followers into first-movers.
The AI Foresight Blueprint
Leveraging AI for foresight isn’t a one-and-done task; it’s a continuous, dynamic process. Here’s a blueprint for how organizations can implement it:
Data-Driven Horizon Scanning: Use AI to continuously monitor a wide range of data sources, from academic papers and startup funding rounds to online forums and cultural movements. An AI can flag anomalies and emerging clusters of activity that fall outside of your industry’s current focus.
Pattern Recognition & Trend Identification: AI models can connect seemingly unrelated data points to identify nascent trends. For example, an AI might link a rise in plant-based food searches to an increase in sustainable packaging patents and a surge in home gardening interest, pointing to a larger “Conscious Consumer” trend.
Scenario Generation: Once a trend is identified, an AI can help generate multiple future scenarios. By varying key variables—e.g., “What if the trend accelerates rapidly?” or “What if a major competitor enters the market?”—an AI can help teams visualize and prepare for a range of possible futures.
Opportunity Mapping: AI can go beyond trend prediction to identify specific market opportunities. It can analyze the intersection of an emerging trend with a known customer pain point, generating a list of potential product or service concepts that address an unmet need.
“AI for foresight isn’t about getting a crystal ball; it’s about building a powerful telescope to see what’s on the horizon and a microscope to see what’s hidden in the data.”
Case Study 1: Stitch Fix – Algorithmic Personal Styling
The Challenge:
In the crowded and highly subjective world of fashion retail, predicting what a single customer will want to wear—let alone an entire market segment—is a monumental challenge. Traditional methods relied on seasonal buying patterns and the intuition of human stylists. This often led to excess inventory and a high rate of returns.
The AI-Powered Foresight Response:
Stitch Fix, the online personal styling service, built its entire business model on AI-powered foresight. The company’s core innovation was not in fashion, but in its algorithm. The AI ingests data from every single customer interaction—what they kept, what they returned, their style feedback, and even their Pinterest boards. This data is then cross-referenced with a vast inventory and emerging fashion trends. The AI can then:
Predict Individual Preference: The algorithm learns each customer’s taste over time, predicting with high accuracy which items they will like. This is a form of micro-foresight.
Uncover Macro-Trends: By analyzing thousands of data points across its customer base, the AI can detect emerging fashion trends long before they hit the mainstream. For example, it might notice a subtle shift in the popularity of a certain color, fabric, or cut among its early adopters.
The Result:
Stitch Fix’s AI-driven foresight has allowed them to operate with a level of efficiency and personalization that is nearly impossible for traditional retailers to replicate. By predicting consumer demand, they can optimize their inventory, reduce waste, and provide a highly-tailored customer experience. The AI doesn’t just help them sell clothes; it gives them a real-time, data-backed view of future consumer behavior, making them a leader in a fast-moving and unpredictable industry.
Case Study 2: Netflix – The Algorithm That Sees the Future of Entertainment
The Challenge:
In the early days of streaming, content production was a highly risky and expensive gamble. Studios would greenlight shows based on the intuition of executives, focus group data, and the past success of a director or actor. This process was slow and often led to costly failures.
The AI-Powered Foresight Response:
Netflix, a pioneer of AI-powered foresight, revolutionized this model. They used their massive trove of user data—what people watched, when they watched it, what they re-watched, and what they skipped—to predict not just what their customers wanted to watch, but what kind of content would be successful to produce. When they decided to create their first original series, House of Cards, they didn’t do so on a hunch. Their AI analyzed that a significant segment of their audience had a high affinity for the original British series, enjoyed films starring Kevin Spacey, and had a preference for political thrillers directed by David Fincher. The AI identified the convergence of these three seemingly unrelated data points as a major opportunity.
Predictive Content Creation: The algorithm predicted that a show with these specific attributes would have a high probability of success, a hypothesis that was proven correct.
Cross-Genre Insight: The AI’s ability to see patterns across genres and user demographics allowed Netflix to move beyond traditional content silos and identify new, commercially viable niches.
The Result:
Netflix’s success with House of Cards was a watershed moment that proved the power of AI-powered foresight. By using data to inform its creative decisions, Netflix was able to move from a content distributor to a powerful content creator. The company now uses AI to inform everything from production budgets to marketing campaigns, transforming the entire entertainment industry and proving that a data-driven approach to creativity is not only possible but incredibly profitable. Their foresight wasn’t a lucky guess; it was a systematic, AI-powered process.
Conclusion: The Augmented Innovator
The era of “gut-feel” innovation is drawing to a close. The most successful organizations of the future will be those that have embraced a new model of augmented foresight, where human intuition and AI’s analytical power work in harmony. AI can provide the objective, data-backed foundation for our predictions, but it is up to us, as human leaders, to provide the empathy, creativity, and ethical judgment to turn those predictions into a better future.
AI is not here to tell you what to do; it’s here to show you what’s possible. Our role is to ask the right questions, to lead with a strong sense of purpose, and to have the courage to act on the opportunities that AI uncovers. By training our teams to listen to the whispers in the data and to trust in this new collaborative process, we can move from simply reacting to the future to actively creating it, one powerful insight at a time.
Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.
Image credit: Microsoft CoPilot
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Incremental Innovation is safer and is a stable way to keep your company going to keep it up to speed and to progress towards something bigger and 
Drum roll please…
