Category Archives: Innovation

Managing Knowledge Spaghetti

How collaboration platforms can help turbocharge your innovation efforts

Managing Knowledge Spaghetti

GUEST POST from John Bessant

Say the word ‘innovation’ and many people quickly conjure in their mind the wonderful ‘lightbulb moment’. But of course, innovation isn’t like this — that flash of inspiration is only the start of what will be a long journey trying to create value from that initial idea. It’s all about navigating our way through a landscape of uncertainty, learning to deal with a variety of roadblocks, potholes and other unexpected barriers.

And if we want to be able to repeat the trick, to give our ideas a fighting chance then the evidence is clear; we need some kind of a process. Over a hundred years of research has fed our understanding to the point where the kind of system we need to make innovation happen can be specified as an international standard. And in terms of pictures what we’re really looking for is less a lightbulb moment than a reproduceable process, something like this.

Clear Innovation Strategy Bessant

Which is fine, as long as we bear in mind one important truth. Innovation doesn’t happen like that.

Back in 1931 the mathematician Alfred Korzybski presented a paper to a meeting in New Orleans on mathematical semantics. It was pretty complex stuff but one phrase which he used has stuck in the wider popular memory. He pointed out that ‘the map is not the territory…’ In other words, a description of something is not the thing itself. The model is not reality. Which has some pretty important implications for the way we work with innovation.

Process models, however detailed, are simplifications, ways of representing how innovation might take place. But — like any map, be it a crumpled sketch someone has drawn or a sophisticated Google Maps picture — it is a guide, it isn’t the place itself. The map is, by its nature, a reduction of the process and in reducing it we lose some important information.

The reality, of course, is that innovation is more complex. And it’s all about knowledge spaghetti.

Just like a plate of pasta innovation involves many different strands. Only this time we are talking about knowledge — technical knowledge, market knowledge, legal knowledge, financial knowledge and so on. They need to be woven together to create value.

And these knowledge strands are held by different people, inside and outside the organization. We have to find them and connect them, link them together to enable us to innovate. Whilst we can superimpose structures on it to help us with this task, we shouldn’t forget that we’re really working with knowledge spaghetti.

Spaghetti solutions

So how do we work with it? Just like recipes for spaghetti there are many variations. One approach is to employ specialists and create cross-functional teams which bring together the relevant strands and align them towards a focused target. That’s proved to be a good model for developing new products and services, especially if we can find ways to bring in all the relevant players including users.

We can use a similar cross-functional approach to the design and implementation of major internal process innovations — things like introducing a new IT system or reorganizing to become more customer-focused. And a third approach involves carefully constructed strategic collaborations, bringing knowledge partners together with complementary strands of knowledge spaghetti.

One very powerful model is based on the idea that everyone in the organization has something to contribute to the innovation story — high involvement innovation. Here we’re working on the belief that even small strands of knowledge can be important and if we could bring them in to the story, we’d make significant progress.

Which history tells us we can. In countless embodiments the principle of high involvement has been shown to pay dividends. Ask people for what they know that might help solve problems around quality, cost, delivery, etc — and there’s no shortage of good ideas in response. The challenge has, historically, been one of working with such high volumes of knowledge and keeping the flywheel going by responding to employee suggestions and giving feedback on progress towards their implementation.

Suggestion boxes and schemes work but until recently had their limitations. Two recent trends have changed all that. The first, borne on the waves of total quality thinking and then the whole ‘lean’ movement, has shown us that in any context people are very effective innovators, well able to improve on what they are doing on a continuing basis.

And the second has been the emergence of collaboration platforms on which they can deploy their innovation skills. Today’s collaborative innovation platform resembles its suggestion box predecessor in outline only; it’s still a way of collecting ideas from employees. But it does so in an interactive space in which challenges can be posed, ideas suggested, comments added and shaping, and welding together multiple knowledge sets and experience enabled. And in doing so they open up the very real possibilities of high involvement innovation — getting everyone to contribute to the innovation story.

Emergent properties

But it’s not just the raw return on investment which collaboration platforms offer — though these benefits are impressive. Their real value lies in the way they enable ‘emergent properties’ — the innovation whole becomes much greater than the sum of its parts.

They give us new and powerful ways of working with the knowledge spaghetti. Not only can we handle the sheer scale of the knowledge challenge and focus it towards key objectives but we can do so in ways which yield surprising additional benefits. They effectively turbocharge our innovation system.

In particular they contribute in the following ways:

  • Reach — one of the obvious ways in which platforms can help is that they create a network which even remote users can connect to. We can spread the innovation net far and wide, can reach the parts other innovation approaches don’t. For example, recruiting ideas from people on ships at sea or working on an off-shore oil platform would have been impossible until recently. Now they can join the innovation conversation as simply as placing a phone call. Working under extreme conditions like in a humanitarian disaster area can now also be a space for crowdsourcing new and urgent solutions to problems. (We’ve seen this in Ukraine where the problems of getting urgent supplies in and vulnerable people out of a war zone are being addressed by many people sharing ideas across makeshift collaboration platforms based on mobile phone networks). We’re now able to involve people in innovation anywhere on the planet and on a 24/7 timescale.
  • High involvement innovation has always worked well in teams — that’s been at the heart of the success of lean approaches. But until recently that depended on the team being physically together, exploring and co-creating solutions — not easy if you’re working with a distributed team. Platforms solve this challenge, enabling virtual team meetings and collaboration and asynchronous collaboration.

    Organizations like Conoco-Philips employ around 10,000 people, globally distributed and often in hard to access places like off-shore oil platforms. Airbus has around 130,000, again globally distributed and engaged in multiple activities. And Bombardier have over 15,000 ‘knowledge workers’ around the world with whom they want to engage. Through the use of collaboration platforms organizations like these are able to achieve sustained high involvement and significant traction on their innovation challenges.

    • Richness — successful high involvement innovation isn’t just about assembling lots of people. By their nature people are different and diversity matters in innovation. They bring different perspectives, different ways of framing and working with the problem being explored. Plus they are not just cardboard cut-outs, they have a rich history of different experiences — their origins, their education, their work experience. All of this represents potentially useful strands of knowledge spaghetti, and platforms help us draw on this.

    Subsea7, a major player in the world of offshore services for the oil and other industries has used a platform approach to great effect. In one example a long-running concern with turnaround times for fitting out ships was solved when someone on the platform identified a solution which he had originally seen in action at a previous employer. The resulting savings ran into millions of dollars.

    People also bring with them networks of connections; knowledge is socially distributed and connecting to these networks can yield surprising possibilities. It means the innovating organization can access different skills and specialized knowledge inside and outside the organization. It’s classic open innovation, building on the idea that in even the largest organization ‘not all the smart people work for you’.

    • Refining — one of the powerful features of collaboration platforms is that they enable — well, collaboration! They make it possible to comment, criticize (constructively), modify and refine ideas, setting up a process of true co-creation. This fits well with recent research which argues that there’s a fundamental flaw in the model of ‘brainstorming’ used by many organizations to source ideas. The principle of postponing judgment has been replaced by a ‘no criticism’ approach in which every idea is accepted. But the reality is that good ideas need to be tempered, hammered into shape, worked on — and processes of constructive criticism are really important. Pixar, for example, has made this a core feature of its daily ideation process.

    And having access to the diversity of perspectives which platforms allow means that there is real potential for shaping and developing interesting ideas into great and value-adding ones. They provide a way of creating those magical ‘water-cooler’ moments in an online and distributed world.

    • Requiring — using focused campaigns to draw out ideas in particular directions. One of the limits of the old model of suggestion schemes is that they operate in ‘bottom up’ fashion, solving problems which are important and visible at a local level. But the real power of HII lies in mobilizing it to work on ‘top-down’ strategic challenges. The campaign model sits at the heart of many collaboration platforms and allows short intense ‘sprints’ focusing the innovation energy on a key problem area, rather like a laser beam.

    Conoco Philips Alaska have been using a process targeted at continuous improvement of their extensive operations; they run between 6 and 8 campaigns every year, involve around 1500 employees and generate savings running into millions of dollars annually.

    But it depends on several things — not least spending time to ensure the ‘right’ question is being asked. Simply setting ‘how can we improve productivity’ as a target is too vague, a bit like using that medieval weapon, the blunderbuss. Chances are some of your shots will hit the target but there’s an awful lot of waste involved.

    So it’s important to ensure we’re asking the ‘right’ question; a key feature of successful collaboration platforms is the amount of effort which goes in to this kind of front-end problem exploration. The sharper the question the better the quality of answers and the chance that new creative pathways can be opened up.

    • Recombination — ‘ if only our organization knew what it knows’ is a source of concern for anyone concerned with innovation. So much knowledge which might be useful is locked up inside silos and not shared. Worse, we don’t always know what’s inside those silos or whether and how it could be relevant to someone else. Platforms have the power to make this visible, not least by drawing it out in response to focused and challenging campaigns.

    There’s also the possibility that someone else in the organization may have experienced a similar type of problem even if they don’t recognize the relevance of their experience. A powerful principle in creativity is looking for analogous solutions — for example, the challenge of cutting turnaround times in airports for low-cost carriers was solved by applying principles originally developed for Formula 1 pitstops. And the same approach was then adopted by surgeons in London looking to improve the utilization of operating theatres.

    • Reverse reinvention — lots of effort is often wasted by reinventing wheels, solving the same problem in different places. Platforms offer a way of reversing this process, highlighting solutions which have been tried elsewhere and also inviting creative improvisation around those solutions, extending their applicability and effectiveness. A kind of creative re-iteration.

    The Canadian engineering company Bombardier have been using a collaboration platform approach for over ten years and one of the biggest benefits they have seen is a significant increase in the amount of knowledge being shared across their organization.

    • Retaining and recording — making sure ideas are retained even if they can’t be applied right now. One of the challenges of mobilizing collective intelligence is that we may well attract thousands of ideas. Some can be shaped and refined for immediate implementation, some require further work and investment. And for some there is the problem of being the right idea at the wrong time. In the past organizations hitting this problem would probably lose sight of the idea, leaving it buried in a file somewhere or gathering dust. But platforms allow for effective curation of ideas, not only tracking and recording all suggestions but also retaining them to match against future campaigns and challenges.
    • Rewiring — organizations are like people — they have ‘predictive minds’ . They are inclined to take a lazy approach, picking tried and tested solutions off the shelf when they confront a problem. But being forced to redefine, to reframe, can trigger a search for new approaches to those old problems. We see this effect often under crisis conditions where traditional solution pathways may not be available and we have to think differently — to make new neural connections across the collective mind. Creating novel campaigns to provide this challenge can open up new idea space — they can help us ‘get out of the box’.
    • Refreshing — at heart high involvement innovation is about people and the key ingredient to its long term success is finding ways to keep the motivation high. People are brilliant problem solvers but they’re only going to give their ideas if they see some benefit. Research has shown that money isn’t a strong motivator — but having your voice heard and having the opportunity to create the change you’d like to see around your organization is. There’s a wealth of research to support this going right back to the early years of organization studies; the message on employee engagement remains the same but the question is then raised about how to achieve this. Collaboration platforms by their inclusive and open nature offer a powerful new tool to help and organizations like Liberty Global consider this motivational aspect to be a key factor in helping build a culture of innovation across a large organization.

    Knowledge Spaghetti Success

    So whether it is an upgrade to continuous improvement activity, harvesting employee suggestions for doing what we do but better, or pushing the frontiers to create novel products and services, there’s real scope for using this turbocharged approach.

    But powerful though they are, collaboration platforms are at heart still software. It’s not a case of ‘plug and play’ — getting the best out of these systems requires hands-on management, something we’ll look at in a future blog.

    For more on innovation-related themes like this please visit my website

    And if you’d like to listen to this as a podcast please visit my site here

    Image credits: Pexels, John Bessant

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    Edge Computing and Its Implications for Innovators

    Edge Computing and Its Implications for Innovators

    GUEST POST from Chateau G Pato

    In the rapidly evolving landscape of technology, edge computing stands out as a promising frontier that amplifies the potential for innovation. By processing data closer to the source, edge computing reduces latency and enhances the speed and reliability of data transfer. This paradigm shift presents an array of opportunities for innovators looking to redefine industries. In this article, we will explore edge computing and its implications for innovators through two compelling case studies.

    The Essence of Edge Computing

    Edge computing represents a distributed computing architecture where data processing occurs near the data source rather than relying solely on centralized cloud environments. This approach minimizes latency, reduces bandwidth usage, and allows for more immediate responses, crucial for applications demanding real-time data processing. As we delve deeper into edge computing’s implications, let’s consider two case studies that highlight its transformative impact.

    Case Study 1: Smart Cities and Intelligent Traffic Management

    Innovators in urban planning and transportation are leveraging edge computing to enhance traffic management systems in smart cities. By integrating edge devices in traffic lights, road sensors, and connected vehicles, cities can gather and analyze traffic data in real-time.

    For instance, a forward-thinking municipality deployed edge computing devices at multiple intersections across the city. These devices continuously collect data on vehicle flow, pedestrian movement, and even weather conditions. The edge processing allows the system to adaptively change traffic light patterns to minimize congestion and reduce accidents, without the delay inherent in cloud-only solutions.

    Outcome: The implementation resulted in a 20% reduction in average commute times and a 15% decrease in traffic-related accidents, showcasing how edge computing can improve urban living while contributing to sustainability by reducing fuel consumption.

    Case Study 2: Manufacturing and Predictive Maintenance

    In the manufacturing sector, edge computing is revolutionizing predictive maintenance processes. A leading industrial equipment manufacturer introduced edge computing to monitor machinery health using IoT sensors. Traditionally, data from these sensors would be sent to the cloud for analysis, causing delays in detecting potential issues.

    With edge computing, data is processed at the equipment level. Real-time analysis enables the identification of anomalies and deviations from normal operating conditions. Maintenance alerts can be raised instantaneously, allowing for timely interventions before equipment failures occur.

    Outcome: This strategic innovation led to a 25% reduction in downtime and a 30% increase in equipment lifespan, translating to substantial cost savings and enhanced operational efficiency.

    Implications for Innovators

    Edge computing empowers innovators with several distinct advantages:

    • Real-Time Decision Making: By facilitating immediate data processing and analysis, edge computing allows innovators to implement real-time decision-making processes critical in dynamic environments.
    • Enhanced Privacy and Security: Processing data at the edge can enhance security and privacy by minimizing the amount of data sent to external servers, reducing exposure to potential breaches.
    • Scalability and Flexibility: Edge computing supports scalable and flexible system designs, enabling innovators to deploy solutions that adapt to changing demands and expand functionality over time.
    • Cost Efficiency: By reducing the reliance on constant cloud connectivity and bandwidth, edge computing can lead to significant cost reductions, particularly in data-intensive applications.

    Embracing the Edge

    The future of innovation lies in the effective integration of edge computing across various sectors. For innovators ready to embrace this cutting-edge technology, the potential is immense. From enhancing urban living to optimizing industrial processes, edge computing is a catalyst for transformative change.

    As we continue to explore the vast potential of edge computing, innovators must remain focused on designing human-centered solutions that not only leverage technological advancements but also address the real needs and challenges of users. By doing so, we can unlock unprecedented levels of efficiency, sustainability, and progress.

    Edge computing is not just a technological paradigm shift; it is an invitation for innovators to pioneer a new era of intelligent, responsive, and sustainable solutions. The future is at the edge—let’s innovate together.

    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: Pexels

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    Managing Remote Teams with Empathy

    A remote or hybrid work culture requires a new approach to managing remote teams: use empathy and grace to keep your team connected.

    Managing Remote Teams with Empathy

    GUEST POST from Douglas Ferguson

    Managing remote teams goes beyond using the right tools and tech for communication: intangibles like grace and empathy are an essential part of successfully leading teams.

    Remote work undoubtedly changes team dynamics and communication. Making the most of distance work requires us to humanize remote work and challenge the culture of isolation that remote companies typically face.

    In this article, we’ll discuss:

    • Remote Work Culture
    • Conflict in Remote Teams
    • Exercising Empathy Online
    • Building Psychologically Safe Remote Teams
    • Transforming Your Remote Team Management

    Remote Work Culture

    The nature of remote work undoubtedly changes company culture. As team members prepare to work remotely, they lose out on the real human connections gained from working in person. As a result, it can be challenging for coworkers and management to truly connect with each other.

    By intentionally creating a remote work culture of connectedness, remote companies can navigate the hurdle of separation and bring team members together regardless of where they may be working.

    Strong remote work culture counteracts the effects of isolation and unites team members around their shared purpose or common goal.

    When managing remote teams, it’s important to:

    • Encourage feelings of camaraderie
    • Ensure regular effective communication
    • Shift your work culture to a balance of synchronous and asynchronous work

    Remote Management

    Conflict in Remote Teams

    Making the transition to successful remote work culture isn’t easy, especially with regard to conflict resolution. This lack of face-to-face interaction makes miscommunication easier than ever before. While all team members may be focused on achieving a common goal, in the digital world it’s easier for words, and actions to get lost in translation, causing conflict between team members.

    According to a study on remote work conflict, 81% of workers reportedly experience conflict and 39% of workers think about leaving their jobs as a result of a virtual conflict. Moreover, workplace conflicts are increasing in remote teams as employees are no longer able to verbally and visually communicate as they would in a physical workplace.

    Exercising Empathy Online

    With more workplace conflicts happening online, it’s up to companies to head off these communication challenges as proactively as possible. Experts suggest that empathy may be the cure-all to virtual drama in the remote working world.

    When managing remote teams, maintaining team members’ well-being, morale, and engagement from afar requires intentionally exercising empathy.

    Practice exercising empathy with your remote teams by:

    1. Connecting with Your Team

    Managing remote teams with empathy starts with establishing and maintaining a meaningful connection with your team.

    Improve team connections with the following:

    • Ice breakers that add team-building and play to a meeting
    • Regular check-ins with team members
    • Video chats so team members can see facial expressions
    • Consistantant communication via platforms like Slack, Trello, or Asana

    2. Actively Listening

    Listening is an essential part of empathy, especially in remote teams. Listening allows remote teams to contextualize conversations and can help team members avoid unnecessary conflict.

    Actively listen by asking intentional questions during check-ins to identify challenges team members might be facing. Experts recommend using prompts to help check-in.

    3. Creating Opportunities to Ask for Help

    It’s not always easy for employees to speak up and ask for help. Team leaders can demonstrate empathy by showing other members of the team that it’s okay to ask for assistance. By being vulnerable with your teams and asking for help yourself, you’ll open the door for others to feel as though it’s okay to ask for help as well.

    4. Equipping Team Members

    Ensuring that team members have everything they need to complete their work is another way to embody empathy. Be sure to ask thoughtful questions and offer materials and tools proactively to ensure your team is properly equipped to do their jobs.

    Be sure to ask questions such as:

    • What traditional resources does my team not have access to when working remotely?
    • Do any team members have accessibility needs?
    • What tools do all team members need?

    5. Encouraging Transparency

    Transparency is key when managing remote teams. Without in-person conversation, information isn’t always as readily understood in the virtual realm, so it’s essential to regularly share important and accurate information.

    • Set explicit expectations for team members like KPIs, milestones, and timeframes
    • Share objectives clearly with the team
    • Provide feedback and guidance regularly to team members

    6. Increasing Recognition

    Recognition is essential in helping employees feel valued and validated. Employee recognition for remote teams can take on many forms from a shoutout via email or a monthly gift certificate. A small gesture of gratitude goes a long way online as it reminds your team members that you see the work they do and you value them as a critical part of the team.

    Building Psychologically Safe Teams

    Another element of successfully managing remote teams is creating a sense of psychological safety. When team members feel psychologically safe, they’re most confident to share their ideas, ask for help, and perform their best work. Creating this environment in the virtual realm allows employees to work without the fear of being punished, judged, or ignored.

    Empathy and psychological safety go hand-in-hand. Team members are all responsible for creating this environment for each other.

    Promote an environment of psychological safety by:

    • Encouraging participation
    • Practicing conversational turn-taking
    • Encourage leaders to take on challenges
    • Use breakout rooms on Mural or Miro
    • Address problems immediately
    • Increase mistake tolerance

    Psychological Safety

    Transforming Your Remote Team Management

    With empathy in mind, it’s time to transform your remote team management.

    Manage remote teams with these best practices:

    1. Offer Multiple Contact Options

    When managing a remote team, it’s essential to provide multiple forms of contact. Share your contact information for video chat, email, instant messaging, telephone calls, and other platforms. By diversifying your methods of communication, you’ll give your team every opportunity to stay in contact with you.

    2. Increase Flexibility

    Flexibility is a valuable element when managing remote teams. From offering flexible hours to allowing team members to set their own deadlines, allowing more flexibility will help build trust and boost morale with your remote teams.

    3. Use Remote Work Advantageously

    Focus on the advantages of remote work and hire a diverse and dynamic team. Remote work gives companies access to the global workforce, allowing them to hire the best in the business from any country in the world.

    4. Find a Balance for Asynchronous and Synchronous work

    When managing remote teams, there is untapped potential in understanding, and utilizing synchronous and asynchronous work times. With remote workers, we have discovered the benefits of deep focus that asynchronous work has to offer. This allows for flexibility across timezones, teams accomplish more in a shorter amount of time, and it allows for synchronous time to be more focused and productive. Managing remote teams takes a leadership team that understands the importance of synchronous and asynchronous work.

    5. Accept Adjustment Periods

    In learning how to best manage remote teams, don’t forget to be patient. Transitioning to a remote-only or hybrid workplace will take time. From troubleshooting technological issues during meetings to learning new habits to improve your virtual workplace, allowing team members to learn as they go is an important part of managing your remote team.

    Working remotely comes with its own set of risks and rewards. Want to learn more about how to navigate the ins and outs of managing remote teams? Connect with us to discover how to implement empathy and grace as you lead your remote team to success.

    Article Originally Appeared on VoltageControl.com

    Image credits: Pixabay, Unsplash

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    The Gilded Age of SickTech

    The Sicktech Gilded Age

    GUEST POST from Arlen Meyers, M.D.

    The WSJ reported that Twitter Inc. TWTR 5.66% accepted Elon Musk’s bid to take over the company and go private, a deal that would give the world’s richest person control over the social-media network where he is also among its most influential users.

    The $44 billion deal marks the close of a dramatic courtship and a change of heart at Twitter, where many executives and board members initially opposed Mr. Musk’s takeover approach. The deal has polarized Twitter employees, users and regulators over the power tech giants wield in determining the parameters of discourse on the internet and how those companies enforce their rules.

    In response, the NYT reminded us that two years ago, the economists Emmanuel Saez and Gabriel Zucman published a statistic that you don’t normally see. It was the share of wealth owned by the richest 0.00001 percent of Americans.

    That tiny slice represented only 18 households, Saez and Zucman estimated. Each one had an average net worth of about $66 billion in 2020. Together, the share of national wealth owned by the group had risen by a factor of nearly 10 since 1982.

    Wealth inequality in the US is rising with fewer and fewer owning more and more. As digital health consolidates and unicorns become as common as dandelions on your lawn this time of year, should we fear the Sicktech Gilded Age? What are the concerns?

    1. Will these technologies cause more problems than they solve?
    2. With wealth comes power. What will that mean for equitable access?
    3. What will be the impact on the business of medicine?
    4. Will profits precede patient interests more than they are now?
    5. What will be the impact of private equity on medical practice?
    6. How should we educate and train health professionals to work in the Sickcare Gilded Age?
    7. How will sickcare entrepreneurs respond?
    8. What will be the backlash from the sickcare workforce? Labor actions and strikes?
    9. How much more will the prices of sickcare rise as inflation eats away at household spending?
    10. Will technobarons be able to transform sickcare into healthcare?
    11. Will there be a Luddite backlash? The past is prologue.
    12. What will be the impact of sickcare technologies on society?

    Or, will there the bubble pop and we will start seeing more “cram downs”? Do you trust sickcare technobarons to do the right thing?

    We will have to wait and see whether Mr. Musk can unleash the value of Twitter or whether sickcare barons can do the same. Many other billionaires have failed trying.

    Image Credit: Pixabay

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    A Strategic Approach to Evaluating Innovation Portfolios

    A Strategic Approach to Evaluating Innovation Portfolios

    GUEST POST from Art Inteligencia

    Innovation is not just about fostering creativity; it is about steering that creativity into a focused, strategic direction. Evaluating innovation portfolios requires a thoughtful balance of risk and strategic alignment to ensure long-term success. In this article, we’ll explore how organizations can effectively manage and evaluate their innovation portfolios to drive sustainable growth. We’ll examine real-world examples to illustrate successful strategies in action.

    The Importance of a Balanced Innovation Portfolio

    An innovation portfolio should reflect strategic priorities and strike a balance between different types of innovation, such as incremental, adjacent, and disruptive. By doing so, organizations can safeguard their present while investing in their future.

    Key Considerations for Evaluating Innovation Portfolios

    Evaluating an innovation portfolio goes beyond simply measuring returns; it requires a deeper understanding of alignment with strategic goals, market potential, and resource allocation. Here are some critical factors to consider:

    • Strategic Alignment: Evaluate how each innovation aligns with overarching business objectives.
    • Risk and Reward: Assess the balance between high-risk, high-reward projects and safer, incremental innovations.
    • Resource Allocation: Ensure resources are being effectively deployed across the portfolio.
    • Stage-Gate Processes: Utilize stage-gate processes to manage project progression and investment decisions.

    Case Study 1: 3M’s Diversified Innovation Strategy

    3M is a global innovation leader known for its diversified portfolio of over 55,000 products. The company employs a strategic approach to innovation by encouraging a culture of collaboration and cross-pollination between divisions. This strategic alignment allows 3M to balance its portfolio across various sectors, from healthcare to consumer goods.

    3M’s stage-gate system is key to its success. It ensures that resources are allocated according to the potential impact and strategic value of each project. By embracing both incremental and breakthrough innovations, 3M has maintained a robust and resilient portfolio capable of driving sustainable growth.

    Case Study 2: Google’s Ambitious Moonshot Projects

    Google’s innovation strategy includes a focus on ambitious “moonshot” projects through its division, X (formerly Google X). These projects, such as Waymo (self-driving cars) and Loon (internet balloons), exemplify Google’s commitment to high-risk, high-reward innovation.

    Google evaluates its portfolio by assessing potential social impact and alignment with its mission to organize the world’s information. While many projects may not succeed, the ones that do often create substantial market shifts. Google’s willingness to take significant risks ensures that its portfolio remains dynamic and capable of redefining entire industries.

    Conclusion: A Strategic Framework for Success

    Evaluating innovation portfolios is not a one-size-fits-all process. It requires a strategic approach tailored to the organization’s unique goals and constraints. By incorporating elements such as strategic alignment, balanced risk, and effective resource allocation, organizations can build robust innovation portfolios that drive sustainable success.

    Both 3M and Google illustrate the power of strategic innovation management. Whether through diversification or moonshot endeavors, their commitment to strategic alignment, risk management, and cultural support for innovation provides a blueprint for others seeking success.

    In today’s rapidly changing world, an agile and well-evaluated innovation portfolio is more critical than ever. By adopting a strategic approach, organizations can ensure that they not only survive but thrive in the face of disruption.

    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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    Five Principles for Innovation Deal Flow Managers

    Five Principles for Innovation Deal Flow Managers

    BMNT Editor’s note: This is the fourth in a series explaining the common beginner-steps needed to get an innovation practice off the ground or improve an existing innovation practice. Find our first post, explaining the goals of implementing a structure to guide innovation and training workers how to use it, here. The second installment, on how to create an innovation thesis to guide your team’s activities, is here. The third piece, on how to assemble the right team for the job, is here.

    GUEST POST from Brian Miller

    Steve Blank, the godfather of Silicon Valley, says that “for innovation to contribute to a company or government agency, it needs to be designed as a process from start to deployment.” At the start, you need a steady influx of new project ideas to replace and restore eroding capabilities. Investors refer to this influx as “deal flow,” and it is considered the single most important factor in their success. Here are the key principles and practices to generate the deal flow your innovation practice needs to succeed.

    1. Open your pipeline wider than you feel comfortable

    It’s cliche to say this, but get comfortable with the uncomfortable. It may take hundreds of initial problems to find a few dozen pilot projects, and only a handful of successful programs may result from those pilots. A rigorous process, like the Innovation Pipeline®, ensures you manage the risk and uncertainty of innovation along with your finite resources. When venture capital investors raise a fund, they initially invest only about 40 percent to 60 percent of it. Cash reserves, known as “dry powder,” are held back so investors can quickly invest more in the early bets that pan out. Translating this to the government, resources are first invested in validating a project (explore). Only after validation are significant investments made in deploying a new capability (exploit).

    The Innovation Pipeline

    The Innovation Pipeline

    To get started, you must first understand what you’re doing and where problems will come from. Are you gathering problems from your organization’s workforce (if you’re trying to improve your structure, processes, and culture), your customer base (if you’re trying to improve their job), or both?

    If the former, you could use or create an internal portal, akin to a digital comment box with more rigor. If the latter, you could use a tool like SurveyMonkey or something more sophisticated. If that’s not feasible right away, just do it manually. An innovation pipeline needs a lot of inputs at the beginning in order to produce disruptive solutions at the end. It’s the fuel for innovation, so walk the halls of your organization, cold-call your customers, or deputize people already embedded in key places to be your eyes and ears, spotting and assessing opportunity by collecting problems for you.

    2. Scope and prioritize problems at the atomic level to find the right project ideas

    You will need to see a lot of problems, and rigorously assess them, to find the needs that will lead to transformative change. You cannot be too selective up front, so prepare for the volume by using a simple framework to deconstruct problems into their atomic units.

    A Key Beneficiary has a basic need in order to achieve a desired outcome. This problem-centric approach will help you scope and prioritize all the in-bound opportunities so you can easily focus on certain beneficiaries or certain desired outcomes.

    Pro-tip: If your pipeline is brand-new, focus on a beneficiary group that you can co-opt, like insurgents, to build momentum in your organization. Or focus on the desired outcomes that align to your organization’s stated and published strategic priorities. If you’re still stuck, revisit your innovation thesis (or create one if you haven’t already) to help guide your problem sourcing and triage in-bound opportunities.

    3. Respond to everyone

    Do not leave hundreds or thousands of people hanging if you collect their problems. If your problem sourcing is yet another black box in a large organization, apathy will quickly set in and your projects will dry up. Rather than leave problem-submitters guessing, be honest with them about (1) how you will decide what will get worked on, and (2) that not everyone’s problem will get worked on directly. This communication can be as simple as a Senior Leader announcement at a town hall, or it can be memorialized in an Innovation Doctrine that lays out the fundamental principles that guide coordinated action in your organization.

    Pro-tip: the best innovation programs provide all problem owners with valuable information in exchange for their input. For example, pointing them in the direction of the office that can help them solve a simple problem; connecting them to someone experiencing a similar one, so they can band together; or just showing them a dashboard of your deal flow so they can see where their problem ranks or fits with others. A transparent and responsive innovation practice keeps contributors motivated to pursue their ideas and contribute to new ones in the future.

    4. Look for patterns

    Not every problem will get worked on. Even with infinite resources, you must prioritize based on your innovation thesis. However, seeing patterns in hundreds or thousands of problems, even the ones you set aside, will reveal the root cause of something greater. For example, you may find lots of problems related to testing new software. Instead of fixing each one, fix the process for testing, evaluating, and approving new software tools, eliminating an entire category of problems in one project.

    5. Generate short, descriptive problem statements

    Your success or failure is based on a disciplined commitment to problem-centric innovation. The best way to keep yourself honest is to initially frame projects as problem statements that provide sufficient background on the origins of the problem to be solved. This kick-starts the next stage of innovation (Curation) and ideally identifies (for the purpose of recruitment) at least some of the key stakeholders around a problem, their basic needs, and an early definition of success.

    Pro-tip: a great problem statement should be shareable with and understandable by anyone. The goal is to present a clear articulation of the opportunity and to expand the coalition around the problem so that others can help you solve it.

    Next, you’ll rigorously assess and prioritize your problems, and you’ll begin to interview and observe people affected by them. In the next post, we’ll share more insights on how to do it, so you know you can trust the data that results and amplify the confidence in your decisions.

    Image credits: BMNT, Pixabay

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    Partnerships for Social Impact to Achieve Collaboration in Innovation

    Partnerships for Social Impact to Achieve Collaboration in Innovation

    GUEST POST from Chateau G Pato

    In today’s rapidly changing world, solving complex social challenges requires more than just good intentions—it demands collaboration, innovation, and strategic partnerships. As a human-centered change and innovation thought leader, I’ve witnessed firsthand the transformative power of cross-sector collaborations. By bringing together diverse groups of stakeholders, we can leverage different perspectives and resources to create solutions with a lasting social impact.

    This article explores how partnerships serve as catalysts for innovation and highlights two compelling case studies where collaborations achieved significant social progress.

    Why Partnerships Matter in Social Innovation

    Social innovation thrives on diversity, common goals, and shared values. Partnerships bring together various entities—nonprofits, governments, corporations, and communities—to pool resources, knowledge, and expertise. This collective approach enables us to tackle multifaceted societal issues that no single organization could address alone. It is the synergy created through these relationships that sparks groundbreaking solutions and drives sustainable change.

    Case Study 1: The Alliance to End Plastic Waste

    Launched in 2019, the Alliance to End Plastic Waste (AEPW) is a global partnership of nearly 50 companies in the plastics and consumer goods value chain. Their goal is to eliminate plastic waste in the environment, primarily focusing on developing innovative solutions and infrastructure to manage plastic waste effectively.

    The AEPW collaborates with governments, environmental organizations, and communities to implement projects that improve waste management systems and promote circular economy practices. For instance, in Indonesia, the Alliance worked with local municipalities to enhance waste sorting and collection, directly resulting in significantly reduced plastic leakage into oceans.

    By leveraging the expertise and financial resources of multiple sectors, the AEPW has set a benchmark on how industrial cooperation can lead to scalable environmental solutions with a profound social impact.

    Case Study 2: The Global Vaccine Alliance (Gavi)

    Founded in 2000, Gavi, the Vaccine Alliance, is a public-private partnership committed to increasing access to immunization in poor countries. By bringing together key international organizations, governments, the vaccine industry, philanthropic institutions, and civil society, Gavi aims to make a substantial impact on public health.

    One notable success story is the introduction of the pneumococcal vaccine in developing countries. Through its Advance Market Commitment model, Gavi incentivized pharmaceutical companies to accelerate the availability of these vaccines at affordable prices. As a result, millions of children worldwide have been vaccinated against pneumonia, dramatically reducing child mortality rates in low-income countries.

    Gavi’s innovative financing and cooperative strategy demonstrate how partnerships can bridge gaps in public health initiatives, making vaccines more accessible to vulnerable populations globally.

    Key Takeaways and Future Directions

    These case studies showcase the immense potential of partnerships in driving social innovation. The key to successful collaboration lies in aligning objectives, maintaining transparent communication, and building trust among partners. It is crucial to continuously evaluate the partnership’s impact and adapt strategies for improving effectiveness.

    As we look to the future, the scope for partnership-driven social impact is limitless. Emerging technologies, such as artificial intelligence and data analytics, offer new opportunities to enhance collaborative efforts. By harnessing these innovations, we can further empower communities, improve lives, and revolutionize how we address complex social issues.

    Ultimately, partnerships in innovation are not just about solving problems—they are about building a better world, together.

    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: Pexels

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    Innovation Lessons from Ukraine and China for the DoD

    Ukraine Satellite Image from Capella Space

    GUEST POST from Steve Blank

    Portions of this post previously appeared in ‘War On the Rocks’

    Looking at a satellite image of Ukraine online I realized it was from Capella Space – one of our Hacking for Defense student teams who now has seven satellites in orbit.

    National Security is Now Dependent on Commercial Technology

    They’re not the only startup in this fight. An entire wave of new startups and scaleups are providing satellite imagery and analysis, satellite communications, and unmanned aerial vehicles supporting the struggle.

    For decades, satellites that took detailed pictures of Earth were only available to governments and the high-resolution images were classified. Today, commercial companies have their own satellites providing unclassified imagery. The government buys and distributes commercial images from startups to supplement their own and shares them with Ukraine as part of a broader intelligence-sharing arrangement that the head of Defense Intelligence Agency described as “revolutionary.” By the end of the decade, there will be 1000 commercial satellites for every U.S. government satellite in orbit.

    At the onset of the war in Ukraine, Russia launched a cyber-attack on Viasat’s KA-SAT satellite, which supplies Internet across Europe, including to Ukraine. In response, to a (tweeted) request from Ukraine’s vice prime minister, Elon Musk’s Starlink satellite company shipped thousands of their satellite dishes and got Ukraine back on the Internet. Other startups are providing portable cell towers – “backpackable” and fixed. When these connect via satellite link, they can provide phone service and WIFI capability. Another startup is providing a resilient, mesh local area network for secure tactical communications supporting ground units.

    Drone technology was initially only available to national governments and militaries but is now democratized to low price points and available as internet purchases. In Ukraine, drones from startups are being used as automated delivery vehicles for resupply, and for tactical reconnaissance to discover where threats are. When combined with commercial satellite imagery, this enables pinpoint accuracy to deliver maximum kinetic impact in stopping opposing forces.

    Equipment from large military contractors and other countries is also part of the effort. However, the equipment listed above is available commercially off-the-shelf, at dramatically cheaper prices than what’s offered by the large existing defense contractors, and developed and delivered in a fraction of the time. The Ukraine conflict is demonstrating the changing character of war such that low-cost emerging commercial technology is extremely effective when deployed against a larger 20th-century industrialized force that Russia is fielding.

    While we should celebrate the organizations that have created and fielded these systems, the battle for the Ukraine illustrates much larger issues in the Department of Defense.

    For the first time ever our national security is inexorably intertwined with commercial technology (drones, AI, machine learning, autonomy, biotech, cyber, semiconductors, quantum, high-performance computing, commercial access to space, et al.) And as we’re seeing on the Ukrainian battlefield they are changing the balance of power.

    The DoD’s traditional suppliers of defense tools, technologies, and weapons – the prime contractors and federal labs – are no longer the leaders in these next-generation technologies – drones, AI, machine learning, semiconductors, quantum, autonomy, biotech, cyber, quantum, high performance computing, et al. They know this and know that weapons that can be built at a fraction of the cost and upgraded via software will destroy their existing business models.

    Venture capital and startups have spent 50 years institutionalizing the rapid delivery of disruptive innovation. In the U.S., private investors spent $300 billion last year to fund new ventures that can move with the speed and urgency that the DoD now requires. Meanwhile China has been engaged in a Civil/Military Fusion program since 2015 to harness these disruptive commercial technologies for its national security needs.

    China – Civil/Military Fusion

    Every year the Secretary of Defense has to issue a formal report to Congress: Military and Security Developments Involving the People’s Republic of China. Six pages of this year’s report describe how China is combining its military-civilian sectors as a national effort for the PRC to develop a “world-class” military and become a world leader in science and technology. A key part of Beijing’s strategy includes developing and acquiring advanced dual-use technology. It’s worth thinking about what this means – China is not just using its traditional military contractors to build its defense ecosystem; they’re mobilizing their entire economy – commercial plus military suppliers. And we’re not.

    DoD’s Civil/Military Orphan-Child – the Defense Innovation Unit

    In 2015, before China started its Civil/Military effort, then-Secretary of Defense Ash Carter, saw the need for the DoD to understand, embrace and acquire commercial technology. To do so he started the Defense Innovation Unit (DIU). With offices in Silicon Valley, Austin, Boston, Chicago and Washington, DC, this is the one DoD organization with the staffing and mandate to match commercial startups or scaleups to pressing national security problems. DIU bridges the divide between DOD requirements and the commercial technology needed to address them with speed and urgency. It accelerates the connection of commercial technology to the military. Just as importantly, DIU helps the Department of Defense learn how to innovate at the same speed as tech-driven companies.

    Many of the startups providing Ukraine satellite imagery and analysis, satellite communications, and unmanned aerial vehicles were found by the Defense Innovation Unit (DIU). Given that DIU is the Department of Defense’s most successful organization in developing and acquiring advanced dual-use technology, one would expect the department to scale the Defense Innovation Unit by a factor of ten. (Two years ago, the House Armed Services Committee in its Future of Defense Task Force report recommended exactly that—a 10X increase in budget.) The threats are too imminent and stakes too high not to do so.

    So what happened?

    Congress cut their budget by 20%.

    And their well-regarded director just resigned in frustration because the Department is not resourcing DIU nor moving fast enough or broadly enough in adopting commercial technology.

    Why? The Defense Ecosystem is at a turning point. Defense innovation threatens entrenched interests. Given that the Pentagon budget is essentially fixed, creating new vendors and new national champions of the next generation of defense technologies becomes a zero-sum game.

    The Defense Innovation Unit (DIU) had no advocates in its chain of command willing to go to bat for it, let alone scale it.

    The Department of Defense has world-class people and organization for a world that no longer exists

    The Pentagon’s relationship with startups and commercial companies, already an arms-length one, is hindered by a profound lack of understanding about how the commercial innovation ecosystem works and its failure of imagination about what venture and private equity funded innovation could offer. In the last few years new venture capital and private equity firms have raised money to invest in dual-use startups. New startups focused on national security have sprung up and they and their investors have been banging on the closed doors of the defense department.

    If we want to keep pace with our adversaries, we need to stop acting like we can compete with one hand tied behind our back. We need a radical reinvention of our civil/military innovation relationship. This would use Department of Defense funding, private capital, dual-use startups, existing prime contractors and federal labs in a new configuration that could look like this:


    Create a new defense ecosystem encompassing startups, and mid-sized companies at the bleeding edge, prime contractors as integrators of advanced technology, federally funded R&D centers refocused on areas not covered by commercial tech (nuclear and hypersonics). Make it permanent by creating an innovation doctrine/policy.

    Reorganize DoD Research and Engineering to allocate its budget and resources equally between traditional sources of innovation and new commercial sources of innovation.

    • Scale new entrants to the defense industrial base in dual-use commercial tech – AI/ML, Quantum, Space, drones, autonomy, biotech, underwater vehicles, shipyards, etc. that are not the traditional vendors. Do this by picking winners. Don’t give out door prizes. Contracts should be >$100M so high-quality venture-funded companies will play.

    Reorganize DoD Acquisition and Sustainment to create and buy from new 21st century arsenals – new shipyards, drone manufacturers, etc. that can make 1,000’s of extremely low cost, attritable systems – “the small, the agile and the many.”

    • Acquire at Speed. Today, the average Department of Defense major acquisition program takes anywhere from nine to 26 years to get a weapon in the hands of a warfighter. DoD needs a requirements, budgeting and acquisition process that operates at commercial speed (18 months or less) which is 10x faster than DoD procurement cycles. Instead of writing requirements, the department should rapidly assess solutions and engage warfighters in assessing and prototyping commercial solutions. We’ll know we’ve built the right ecosystem when a significant number of major defense acquisition programs are from new entrants.

    • Acquire with a commercially oriented process. Congress has already granted the Department of Defense “Other Transaction Authority” (OTA) as a way to streamline acquisitions so they do not need to use Federal Acquisition Regulations (FAR). DIU has created a “Commercial Solutions Opening” to mirror a commercial procurement process that leverages OTA. DoD could be applying Commercial Solutions Openings on a much faster and broader scale.

    Integrate and create incentives for the Venture Capital/Private Equity ecosystem to invest at scale. The most important incentive would be for DoD to provide significant contracts for new entrants. (One new entrant which DIU introduced, Anduril, just received a follow-on contract for $1 billion. This should be one of many such contracts and not an isolated example.) More examples could include: matching dollars for national security investments (similar to the SBIR program but for investors), public/private partnership investment funds, or tax holidays and incentives – to get $10’s of billions of private investment dollars in technology areas of national interest.

    Buy where we can; build where we must. Congress mandated that the Department of Defense should use commercial off-the-shelf technology wherever possible, but the department fails to do this (see industry letter to the Department of Defense).

    Coordinate with Allies. Expand the National Security Innovation Base (NSIB) to an Allied Security Innovation Base. Source commercial technology from allies.

    This is a politically impossible problem for the Defense Department to solve alone. Changes at this scale will require Congressional and executive office action. Hard to imagine in the polarized political environment. But not impossible.

    Put Different People in Charge and reorganize around this new ecosystem. The threats, speed of change, and technologies the United States faces in this century require radically different mindsets and approaches than those it faced in the 20th century. Today’s leaders in the DoD, executive branch and Congress haven’t fully grasped the size, scale, and opportunity of the commercial innovation ecosystem or how to build innovation processes to move with the speed and urgency to match the pace China has set.


    Change is hard – on the people and organizations inside the DoD who’ve spent years operating with one mindset to be asked to pivot to a new one.

    But America’s adversaries have exploited the boundaries and borders between its defense and commercial and economic interests. Current approaches to innovation across the government — both in the past and under the current administration — are piecemeal, incremental, increasingly less relevant, and insufficient.

    These are not problems of technology. It takes imagination, vision and the willingness to confront the status quo. So far, all are currently lacking.

    Russia’s Black Sea flagship Moskva on the bottom of the ocean and the thousands of its destroyed tanks illustrate the consequences of a defense ecosystem living in the past. We need transformation not half-measures. The U.S. Department of Defense needs to change.

    Historically, major defense reforms have come from inside the DoD, at other times Congress (National Security Act of 1947, Goldwater-Nichols Act of 1986) and others from the President (Roosevelt’s creation of the Joint Chiefs in 1942, Eisenhower and the Department of Defense Reorganization Act of 1958.)

    It may be that the changes needed are so broad that the DoD can’t make them and Congress needs to act. If so, it’s their time to step up.

    Carpe diem. Seize the day.

    The full article originally appeared on Steve Blank’s blog

    Image credit: Capella Space

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    Culture Hacking Your Way Past Barriers to Innovation

    Culture Hacking Your Way Past Barriers to Innovation

    GUEST POST from Art Inteligencia

    Innovation is often hampered not by the availability of good ideas, but by cultural barriers that exist within an organization. Today’s fast-paced business environment demands that we hack these cultural barriers to create a fertile ground where ideas can flow freely. In this article, we’ll explore how to effectively conduct culture hacking to foster an innovative spirit within your organization, using two compelling case studies as examples.

    What is Culture Hacking?

    Culture hacking is the process of intentionally addressing, disrupting, and reshaping the cultural elements of an organization to remove obstacles to change and innovation. Instead of massive overhauls, it involves small, strategic shifts that have a significant positive impact over time.

    Case Study 1: Google’s ‘20% Time’

    One of the most talked-about examples of culture hacking is Google’s implementation of ‘20% Time,’ where engineers were encouraged to spend 20% of their workweek on projects they were passionate about. This cultural change was aimed at enhancing creativity and innovation by giving employees the freedom to explore their ideas without formal oversight.

    • The Challenge: Google wanted to break free from a rigid work structure to unlock creativity and innovation on a broader scale.
    • The Hack: Project ‘20% Time’ was introduced with minimal official proclamation but quickly embedded itself in Google’s culture as engineers experimented with new ideas. Successful projects that emerged include Gmail and AdSense, revolutionizing both Google’s offerings and internet advertising as a whole.
    • The Outcome: By implementing a tangible alteration in work schedules, Google successfully nurtured an environment of sustained innovation and creativity.

    Case Study 2: W.L. Gore & Associates’ Flat Lattice Structure

    W.L. Gore & Associates, the company behind GORE-TEX, approached their organizational design with a radical hack by adopting a flat lattice structure. There are no conventional managers or divisions; rather, employees are given significant autonomy and leadership is informal, based on followership.

    • The Challenge: The company recognized that traditional corporate hierarchies often stifled creativity and the free flow of information required for innovation.
    • The Hack: By eliminating traditional hierarchies, W.L. Gore empowered associates to pursue ideas based on passion and capability, fostering an environment where innovation is a by-product of the freedom to act and engage in decision-making.
    • The Outcome: This culture hacking strategy has led to continuous innovation with a portfolio of industry-leading products. Additionally, Gore’s consistent appearance on ‘Best Companies to Work For’ lists is a testament to its successful culture reshaping.

    Key Steps to Culture Hacking

    Implementing culture hacking in your organization requires careful planning and courage to embrace change. Here are some key steps:

    • Identify Cultural Barriers: Recognize specific cultural aspects that hinder innovation and need addressing.
    • Small, Strategic Actions: Implement small, strategic changes that align with the larger objectives of the organization without causing major disruptions.
    • Promote Autonomy and Ownership: Encourage employees to take ownership of their roles and ideas, providing them with the agency to act.
    • Iterate on Success: Build on successful hacks by iteratively engaging with employees for feedback and refining approaches based on outcomes.

    Conclusion

    The organizations that succeed in today’s dynamically competitive market will be those able to innovate continuously. Culture hacking offers a grassroots approach to overcoming barriers to innovation, unlocking the creative potential within your team. As the cases of Google and W.L. Gore highlight, sometimes the most profound changes come from those willing to rethink traditional structures and empower individuals to innovate from within.

    “Innovation doesn’t just happen; it is cultivated in an environment free of unnecessary barriers where people feel valued and empowered to make a difference.” — Braden Kelley

    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: misterinnovation.com

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    The Leader’s Guide to Making Innovation Happen

    The Leader’s Guide to Making Innovation Happen

    GUEST POST from Jesse Nieminen

    Many would-be innovators obsess over ideas, wait for inspiration to strike, and believe that with the right idea, success can miraculously come overnight.

    However, as we’ve written before, that’s just not going to happen. In fact, usually the only thing separating the winning innovators from the rest is execution. It makes all the difference in the world, and yet, it’s still a vastly underrated capability.

    As part of our coaching program, we’ve asked hundreds of corporate innovators and innovation leaders to reflect on their strengths and weaknesses. And, by far, the most common answer is that they’re great at coming up with ideas and thinking about the big picture but lack the patience and discipline to see things through to results.

    As such, it’s safe to say that as a community, we innovators need to take a hard look in the mirror and admit that this an area where most of us have a lot of room for improvement.

    So, in today’s article, we’ll explore the topic of executing innovation in more detail to try to understand what the problems associated with it are, and what successful execution of an innovation really takes. This is designed to be a guide to help leaders get it right, but I think there’s a lot that every innovator regardless of job title can learn from.

    What does executing innovation mean?

    Before we dive deeper, it’s probably a good idea to clarify what we mean with the term “executing innovation”, and how it relates to “implementing innovation”.

    These are often used interchangeably, but I think it’s useful to distinguish them from one another. The way we like to put this is as follows:

    Implementing innovation is the process of taking an idea and then turning that into reality.

    Executing innovation, on the other hand, is the entire process of creating value with innovation.

    In other words, implementation is what you do for an individual idea to make that happen. Execution covers the implementation, but also the process of turning that (along with many other ideas and innovations) into something that actually creates value and can be scaled up.

    Implementation isn’t always easy, but it’s still typically a linear project that you can usually plan out in advance. Execution, on the other hand, is a much more complex and multidisciplinary effort.

    To succeed at delivering value, you need to get a lot of things right. And with innovation, there are many assumptions in that plan. Some of those assumptions will always prove to be false, and you’ll need to deviate from the plan.

    That combination of multidisciplinary collaboration and the need to deviate from original plans often leads to a myriad of practical challenges in many large organizations.

    However, before we dive deeper into those challenges, let’s first take a step back to realize why execution is so critical.

    Why execution is critical for innovation success

    There’s a reason for innovation being defined as the act of introducing something new.

    Everyone has ideas. Many can even implement some form of them, typically a prototype, but few successfully realize the full potential of the idea by truly executing on it successfully.

    To clarify, ideas are an important starting point, but with every great idea, there are hundreds or even thousands of people across the world who’ve had the same exact idea.

    Most never start working on it. Many give up in the process. Some make it to market, and a few might even make that into a feasible business. There are usually only a couple of winners. Those are the ones that succeeded in executing that idea.

    Everyone has ideas, but few successfully realize the full potential of their ideas. The ones that do are the ones that know how to execute well. 

    This is of course a bit of an oversimplification but should help explain the fundamental importance of proper execution.

    And that is not just true for individual ideas and innovations, but it’s also the case for corporate strategies at large. Look at any given industry, and it’s quite likely that you’ll see many companies with a nearly identical strategy. Again, the difference comes down to how well the company succeeded in executing that strategy.

    In other words, your idea or strategy sets the ceiling for your impact if successful, but execution determines how close to that ceiling you’ll get. Even the best idea or strategy is worth nothing unless it’s executed well.

    On the other hand, even with a mediocre strategy or idea, you can achieve remarkable success if you just execute it well enough. There are dozens of well-known companies like McDonald’s and FedEx that are obvious examples of this. There’s nothing particularly remarkable or distinctive about their ideas or strategies. They weren’t the first in their respective fields, they just executed on their ideas brilliantly.

    FedEx Truck

    What’s more, if you’re a strong executor, you’ll soon find out the limits of the original strategy or idea, at which point you can adapt and change course accordingly. But, it doesn’t work the other way around.

    Thus, no matter the situation, execution will always be more important than your idea or strategy.

    Misconceptions about executing innovation

    As you might have realized by now, execution is of course a massive, nuanced, context-specific and very complex endeavor. In practice, it’s an endless jungle of interlinked choices and actions affecting one another that you need to navigate with limited information to get to the other side.

    Thus, the space of possible challenges and problems you might encounter is pretty extensive. So, instead of looking at the individual problems themselves, it’s more helpful for us to try to understand the common misconceptions that ultimately lead to teams underappreciating execution and thus subsequently failing at it.

    A big factor behind most of these is the fundamental uncertainty that innovation is always associated with. Because you can’t know everything in advance, it’s not going to be a nice and linear process of doing simple steps one after another. Instead, it’s a messy and iterative process of creative problem-solving.

    Anyway, with that, here are the top four that I most commonly see innovation leaders and their teams have.

    1. The leader’s job is just to get the big picture right

    This is probably the most common problem I’ve come across, and it’s especially common among inexperienced executives, or ones that otherwise lack execution experience, such as some management consultants and academics.

    There are many shapes this one might take, and we’ll return to it later, but what it ultimately comes down to is the glorification of strategy work and/or surface-level creativity.

    In business school, and in consulting, we’re taught to think about the big picture as the job of top management. We’re led to believe that a leader or innovator takes in a market analysis, compares a few scenarios, chooses a positioning, and then paints an inspiring vision to show direction for the company. Then the pieces will simply fall in place and success happens.

    Innovation Leader

    While the above mentioned are of course still useful activities, if you’ve ever actually turned an innovative idea into a successful business, you know that in practice, there’s a lot more to it than that, and experienced executives are of course well aware of that

    Strategic choices can be made across the organization, but the responsibility for execution always lies at the top.

    As Professor Martin has well put it, CEOs should stop thinking that execution is somebody else’s job, and the same applies for every innovation leader. Strategic choices can be, and frequently are, made where the action is. Yet, the responsibility for execution always lies at the top. After all, there’s a reason for the CEO being the Chief Executive Officer.

    2. I don’t need to understand the details

    The second is closely related to our first one. It’s easy to think that as a leader or visionary innovator, you’re the person responsible for the vision, ideas, and big picture decisions, and then the experts will then figure things out in practice. After all, that’s why you hired them, right?

    Well, that might work if you’re operating in a static industry where all the variables are known and static, but with innovation that really isn’t the case.

    You need to get the big picture right, but it isn’t enough to succeed. You need to also have the right product, business model, technology, customer experience, customer acquisition channels and tactics, operating models, etc. All of these have a wide variety of choices that depend on one another and changes in any of the areas will force you to change many of the other pieces in the puzzle too.

    With innovation, the devil is in the details!

    As an innovation leader, connecting the dots is ultimately your job, and you can’t do that without understanding the details.

    That’s why you’ll find an obsession for the details in pretty much every successful innovator, both past and present. They have the same in-depth understanding and attention to detail as the best artists, athletes and top representatives of other fields do too.

    So, while you absolutely need to engage with and empower the experts, they are experts in their own field and likely don’t know how to consider all the other moving pieces in the puzzle. As an innovation leader, connecting the dots is ultimately your job, and you can’t do that without understanding the details.

    It’s the one responsibility you simply can’t delegate away.

    3. Execution requires a clear and unambiguous plan

    Even if you are an experienced executive and value the importance of execution highly, it doesn’t mean you couldn’t fail when executing innovation. Here the most common problems occur if the leader’s experience comes primarily from operations within the known and well understood confines of “business as usual”.

    When the environment is well understood, and the scale large from the get-go, it’s of course valuable to try to plan carefully, analyze business cases and craft detailed project plans prior to execution.

    Also, since everyone knows that innovation is a risky endeavor, it of course makes sense to try to reduce those risks before your start a big innovation project to try to avoid major mistakes and generally just ensure that you’ve done a good job in planning and preparation before committing to the project.

    This often leads to large companies commissioning all kinds of market studies and strategy projects. Some of those can certainly be useful in increasing your understanding of the landscape, but most invest way too much time, energy, and money into these. Also, every now and then these projects seem to be ordered only to have a scapegoat in case something goes wrong.

    Regardless, there’s a fundamental problem: with innovation, you can’t have all the answers in advance. You’ll always need to make a number of assumptions upon which your plan relies on, some of which will inevitably prove to be wrong.

    With innovation, you won’t have all the answers in advance.

    Thus, if you require innovators to propose clear, detailed and unambiguous plans for you, or conversely create such plans and then hold innovators accountable for successfully executing them, it just won’t work out. And, whenever it then comes to surface that everything hasn’t gone according to the plan, innovation projects are frequently shut down, even if they’d still hold a lot of potential.

    You obviously still need to align with the strategy, plan ahead, and have a disciplined approach to execution, but it’s not so much about creating a detailed roadmap, as it is about choosing direction and figuring out which questions or problems you’ll need to address first.

    In other words, you need to embrace the uncertainty and the fact that you can’t have a perfectly unambiguous and detailed plan before starting to execute it. Instead, figure out what the assumptions and uncertainties in your plan are and commit to a disciplined learning effort to figure out the right path forward.

    4. Innovation is fun

    There’s a stereotype around people working in innovation being these visionaries that are bursting with great ideas and seem to come up with great new concepts all the time. And as mentioned in the intro to this article, that is often true.

    The Fun Part of Innovation

    That skillset is of course very useful for innovation, but there’s also a downside. There are naturally exceptions, but many of us working on innovation can find execution too boring and repetitive, and/or lack the perseverance, discipline, and patience needed to succeed at it.

    Innovators often spend too much on the creative and “fun parts” of innovation, as opposed to what’s really needed to turn an idea into a successful innovation

    As a group, we generally love creative work, and are always looking for fresh, new stimuli to feed that inspiration. That often leads us to spend too much time and effort on the “fun parts” of innovation, and too little on the not so fun, more repetitive, and laborious parts of the process that execution essentially is comprised of. The reality is that for every minute you spend coming up with ideas, you’ll probably need to spend a day, a week, or even more implementing those ideas.

    So, if your innovation team is primarily filled with, or led by, such “idea people”, which is quite common, then there’s a big risk of a systematic lack of respect for and capabilities in execution. This will lead to a very suboptimal culture for innovation, and ultimately disappointing business outcomes.

    Getting Execution Right

    As already mentioned, there are a lot of similarities between successful execution in “business as usual”, and in innovation. However, there are also clear differences between the two.

    So, to help you navigate the differences, and to succeed at executing on whatever innovation you’re working on, here are the five most important factors to keep in mind whenever you’re trying to execute on an innovation and build something truly novel.

    Getting Innovation Execution Right Viima

    1. Take the path most likely to succeed, but keep your options open

    As mentioned, with innovation planning and strategy work need to be done a bit differently than you would with an existing business.

    Good decisions here make it much easier for your team to figure out how to move forward and can save a lot of time money going down the wrong path. Regardless, you’ll soon end up at another crossroads and need to make another decision. Heck, sometimes you might even come across a dead-end and need to backtrack to an earlier crossroads. Sometimes Plan C or D is the way to go.

    Innovation Plan C or D

    The point is that no matter which path you choose, you won’t see what’s ahead all the way to the end.

    Thus, good strategy work requires you to embrace uncertainty, test assumptions critically, and think deeply about the real-life feasibility of each path ahead.

    And it’s certainly not a one-time project you do at the beginning, but more of a continuous learning process as you unravel the puzzle piece by piece.

    If you keep an open mind and build your teams and products to embrace that uncertainty, you can quickly recover and learn from setbacks, as well as embrace new opportunities you couldn’t even think of before you set out. This is what’s known as cognitive and organizational flexibility.

    2. Solve the biggest problems first

    As humans, most of us have a bit of a tendency to go for the comfortable low-hanging fruits and procrastinate on the hard but important problems, as well as uncomfortable truths.

    I’ve certainly been guilty of this on many occasions, even while writing of this article. Getting a number of small things done makes us feel like we’re making good progress, but unfortunately that’s often a bit of a false sensation as we might not really be any better off than when we began.

    With the inherit uncertainty in innovation, that is naturally a bit of a problem. When you’re executing any given innovation, there’s countless things that need to be done so it’s easy to just start checking off boxes like building more features, creating marketing materials, getting compliance approvals, or whatever you may have on your agenda.

    But, it’s the big things that make or break your innovation early on. For example: will a customer benefit from my product, how much are they willing to pay, can I even build the product I’ve envisioned, etc.

    While you need to care about the details, it’s the big things that make or break your innovation early on. So, start from the big problems, even if it hurts!

    The key is finding a way to figure out what these big problems or critical assumptions are, and then find ways to quickly test and address them. This allows you to quickly figure out if you’re on to something, which of course saves a lot of time and money for you in the inevitable case that you weren’t quite there from the get-go.

    Also, if you get the big things right, you can already deliver most of the value, and that means you can more quickly start capturing some of that value to get a return for your investments.

    Plus, if you tackle these early on when you still have a small team, changing course will be much quicker and easier, and you’ll have spent much less money solving the same important problems than you would with a larger team later on.

    In most businesses, these critical assumptions revolve around how much value you can deliver to customers, and how valuable they see that to be. However, in certain circumstances, those can be related to something entirely different, such as the feasibility of implementation when developing a new breakthrough drug.

    Solving for the hardest problems first does generally require a bit more of a leadership commitment as you won’t always be able to show quick wins as early on, but at least it can save you from an embarrassing and costly failure like CNN+.

    3. Build the right team

    It might be a bit of an obvious statement, but it’s still probably worth pointing out: innovation is a bit of a team sport. So, to do well at it, you need the right team.

    However, what might not be as obvious is that ‘the right team’ means in practice. In our experience, there are two key parts to this:

    • Multidisciplinary team with talented individuals in each area
    • Leadership and individuals that share the right mindset for innovation

    The prior is pretty self-explanatory. Innovation is almost always a cross-disciplinary effort. The specifics depend on what kind of an innovation you’re working on, but usually you need expertise in at least design, engineering, commercial and operational matters.

    The most impactful innovations are actually comprised of a stack of innovations in many of these areas, each designed to work together to address a specific problem or ‘job’ for the customer. Thus, if you have talent at every position, the outcome will be much more than the sum of its parts.

    Talented, disciplined, and gritty, multidisciplinary teams are needed for innovation

    The latter, however, is the part that many teams fail to appreciate. Innovation is, by definition, doing something that others haven’t succeeded at before, so the journey won’t be easy.

    Your team will face a lot of uncertainty and struggles, and will still need to perform at their best, often under a lot of pressure. That requires a very specific type of culture within the team, but also the right mindset for each individual. You want people that can cope with uncertainty and are able to remain optimistic and overcome difficult situations while still being realistic and ruthlessly critical of their own capabilities. They need to have an innate passion to strive for excellence, and a lot of discipline, grit, and perseverance.

    And, of course, because it’s a team sport, people need to be able to work well together and perform as a team. This, however, isn’t usually much of an issue as long as people can leave their egos at the door. The struggles you will face together as a team will build bonds and gel you into a team.

    4. Make sure every decision and detail are aligned

    As we already discussed, you don’t need (and usually can’t have) a clear and unambiguous plan for an innovation project where every role and task would be charted out in advance. However, as we also discussed, the devil is often in the details and seemingly small things can derail the project from its goals?

    So, what gives?

    Well, the point is that with innovation, you need to keep an eye on everything. As an innovation leader, you need to maintain excellent awareness of both the big picture and the details throughout the project. But, because the environment changes dynamically and you need to move fast, you can’t really do that work upfront.

    Nor can you just look at some KPIs and financial reports to figure out if things are moving in the right direction because the important things won’t show up in these for quite a while, and at that point, it’s often too already too late to react.

    Everything must align when executing innovation

    As a leader, your primary job is to keep up with what’s going on both with the ever-changing big picture, and the details on the ground so that you can spot problems early and intervene before it’s too late, no matter where the issues might arise from. If you don’t understand how everything works in practice and know what problems everyone is working on and why, it will be pretty much impossible to do that.

    Some might see the latter as micro-management, but it doesn’t mean you have to dictate what everyone does. It just means that as a leader, you need to be the person that connects the dots and then empowers the team to succeed. There’s a clear difference.

    Which brings us nicely to our last point.

    5. Take full ownership for the execution

    As we’ve covered, execution is the make-or-break part in the lifecycle for every innovation.

    It’s always a bit of an exploratory process where you need to remain flexible, while still moving forward quickly and executing at a high level.

    And, at the same time, seemingly inconsequential low-level choices related to implementation turn out to become existential issues for any innovation project.

    Again, you don’t need to decide everything on behalf of your team. In fact, often it’s best to let the experts solve problems and do their job, as long as you can give them the right guidance and constraints to work with. Instead, you need to think of every potential problem as your fault and then figure out a way to get past them together with your team.

    The bottom line is that being an innovation leader isn’t easy. It takes a lot of time and work to understand and stay on top of things, but as already mentioned, that’s the one thing you can’t really skip, automate, or delegate. Essentially everything else you can.

    The only way to succeed at that is to take full ownership and commit to the process.

    Conclusion

    We’ve covered a lot of ground, so let’s do a bit of a recap.

    Innovation isn’t a linear project that you can plan out in advance and monitor progress with a Gantt chart. There will always be plenty of surprises. Many unpleasant, but usually some positive ones too. You’ll need to be flexible enough to react to these and alter course accordingly.

    It’s an inherently messy and iterative process of figuring out a way to build new things and align all the pieces so that everything works out.

    Fundamentally, an innovation leader’s job is to show direction and try to keep track of everything that’s happening, align those puzzle pieces together with the big picture while always being on the lookout for potential problems and then eliminate those before they derail the project, as there will be many.

    It’s not an easy or comfortable job, but if you can get it right, it’s an incredibly rewarding one.

    Ironically, despite all the talk about practical issues and attention to detail being vital, this has been a bit of a high-level overview on the topic. So, if you’re interested in learning more about the details related to what we’ve discussed today, I have a couple of practical recommendations for you:

    First, the best way to learn to innovate is by doing. So, get your hands dirty, keep these tips in mind, do your best, and I’ll guarantee you’ll learn a lot.

    But, if you currently don’t quite have the time to commit to an innovation project, a good alternative way to learn more about innovation management is with our Innovation System online coaching program. We’ve now made the program completely free of charge for the first 1000 readers to sign up for it.

    This article was originally published in Viima’s blog.

    Image credits: Unsplash, Viima

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