Category Archives: Innovation

The Innovator’s Mindset

Traits of Top Leaders

The Innovator's Mindset

GUEST POST from Art Inteligencia

In the rapidly evolving landscape of business and technology, innovation is the lifeblood that sustains competitive advantage. However, innovation doesn’t emerge in a vacuum. It is the product of an intricate tapestry woven with creativity, resilience, and leadership. As someone who has spent years deciphering the cognitive processes behind breakthrough ideas, I’ve observed specific traits that set apart top innovators. In this article, I’ll explore these key traits and illustrate them with real-world case studies.

Embracing Ambiguity

Top innovators are comfortable operating in uncertainty. They approach ambiguity not as a hurdle but as an opportunity to explore uncharted territories. This trait allows them to remain flexible and adaptable, pivoting strategies when necessary without losing sight of their ultimate goals.

Case Study: Steve Jobs at Apple

One of the quintessential examples of embracing ambiguity is Steve Jobs. When Jobs returned to Apple in the late 1990s, the company was struggling. He faced the ambiguity of reinvigorating a potentially sinking ship. Instead of following the conventional path, Jobs focused on a daring vision: creating innovative products that often seemed impractical at the time. His approach with products like the iPod and later the iPhone revolutionized markets and established Apple as a leader in innovation. Jobs embraced ambiguity, pushing the boundaries of what personal electronics could be, and trusted that consumers would follow.

Curiosity and Continuous Learning

Curiosity is a fundamental driving force for innovation. Top leaders never stop asking questions or seeking new information. They understand that the path to innovation is paved with insights gathered from diverse fields and industries.

Case Study: Elon Musk and SpaceX

Elon Musk’s journey with SpaceX exemplifies the power of curiosity and learning. Musk entered the aerospace industry with no formal background, yet he educated himself by reading widely about rocket science. His curiosity did not stop at merely understanding concepts; he challenged established norms and practices. This mindset not only helped him create SpaceX but also brought innovations like the Falcon Heavy and the concept of reusable rockets. Musk’s ability to continuously learn and adapt in an industry dominated by veterans encouraged a new era of space exploration.

Empathy and Consumer Insight

Empathetic leaders understand the importance of connecting with consumers on a deeper level. They prioritize consumer insights, which helps in designing products and solutions that truly resonate with the end-user.

These leaders engage with their audience, listen to feedback, and observe behaviors to unveil hidden needs and desires. This consumer-centric approach not only drives successful product development but also fosters brand loyalty.

Resilience and Grit

Innovation is a turbulent ride with more valleys than peaks. Resilient innovators are not deterred by failure; they view it as a vital component of the learning process. They display grit by persisting in the face of challenges and maintaining their vision despite setbacks.

Consider Thomas Edison, who famously remarked, “I have not failed. I’ve just found 10,000 ways that won’t work.” It is this tenacity that allowed Edison to eventually succeed with the light bulb after numerous trials. Resilient leaders recognize that each failure brings them closer to the solution and continuous improvement.

Collaboration and Building Diverse Teams

While many view innovation as a solitary pursuit, it is enhanced in a collaborative environment. Top innovator leaders build diverse teams, drawing on varied experiences and perspectives to fuel creativity. Collaboration enhances problem-solving and leads to more robust, innovative solutions.

A notable example is the development of the Boeing 787 Dreamliner, which involved collaboration between teams across multiple countries. With inputs from diverse global teams, Boeing could create a cutting-edge aircraft that emphasized fuel efficiency and passenger comfort.

Conclusion

The traits of an innovator’s mindset are not inherent but can be cultivated through intentional practice and dedication. Leaders who foster these characteristics will be better equipped to navigate the complexities of today’s business landscape and emerge as pioneers in their fields. As innovation leaders, it is our responsibility to instill these values within our teams and organizations, ensuring a legacy of creativity and progress for future generations.

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: Pixabay

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Design Thinking versus Human-Centered Design

Clearing the Confusion

Design Thinking versus Human-Centered Design

GUEST POST from Chateau G Pato

In the realm of innovation and creative problem-solving, two approaches often emerge as frontrunners: Design Thinking and Human-Centered Design. While these methodologies share similarities, they are not identical. Understanding their nuances is essential for organizations striving to remain competitive and truly meet the needs of their users.

Understanding Design Thinking

Design Thinking is a solution-focused methodology that revolves around a structured innovation cycle. It comprises five stages:

  1. Empathize
  2. Define
  3. Ideate
  4. Prototype
  5. Test

This approach is both iterative and non-linear, allowing teams to move back and forth between phases as needed. It emphasizes understanding the end-user, challenging assumptions, and redefining problems to identify alternative strategies and solutions.

Exploring Human-Centered Design

Human-Centered Design (HCD), on the other hand, is an approach that prioritizes the users, their needs, and their challenges at every phase of the design process. HCD is deeply rooted in empathy for the user, with a strong focus on co-creation and active involvement of stakeholders throughout the design and development process.

HCD follows a similar journey to Design Thinking with slightly different emphases: Inspiration, Ideation, and Implementation. Its essence lies in creating solutions that are not only innovative but also truly resonate with and enhance users’ experiences.

Key Differences

While both methodologies prioritize the user and involve iterative processes, the key differences lie in their application and focus:

  • Application Scope: Design Thinking is often applied more broadly beyond design contexts, in corporate strategy, service design, and product management. Human-Centered Design, however, remains closely tied to the design field itself.
  • Emphasis: HCD places a stronger emphasis on empathy and user engagement throughout the process, while Design Thinking maintains a balance between user needs and business viability.

Case Study 1: IBM’s Adoption of Design Thinking

IBM’s Transformation Through Design Thinking

IBM is an exemplary case study of how embracing Design Thinking cultivates innovation. Traditionally known for its technical and engineering prowess, IBM found itself needing to pivot towards a more user-oriented approach to keep pace with evolving market demands.

By training over 100,000 employees in Design Thinking, IBM fundamentally shifted its corporate culture. This initiative encouraged cross-functional collaboration and a deeper connection to user insights. As a result, IBM was able to accelerate product development cycles and significantly improve the customer experience across their service offerings.

An example of this transformation is the redesign of IBM’s enterprise cloud offerings. Through Design Thinking workshops, they discovered that the complexity of their product was hindering user adoption. By empathizing with the user and iterating on design prototypes, IBM streamlined its cloud interface, leading to a significant uptick in user satisfaction and engagement.

Case Study 2: IDEO and Human-Centered Design in Action

IDEO’s Human-Centered Design Approach to Healthcare

IDEO, a global design company, is a beacon of Human-Centered Design, particularly renowned for its work in healthcare. One compelling case is IDEO’s collaboration with the healthcare sector to redesign patient experience.

By employing HCD techniques, IDEO involved patients, doctors, and nurses in the entire design process. Through in-depth interviews, shadowing medical staff, and empathy-building exercises, IDEO identified that the anxiety and fear surrounding hospital visits stemmed largely from uncertainty and lack of clear communication.

Taking these insights, IDEO created new hospital layouts that integrated clearer signage and communication touchpoints. They developed prototype communication tools that ensured patients were continually informed of treatment processes. These changes dramatically reduced patient anxiety and improved overall satisfaction scores in the hospitals they partnered with.

Conclusion: Bridging the Gap

To clear the confusion between Design Thinking and Human-Centered Design, organizations need to realize that while both are valuable, their adoption depends on specific needs and contexts. Design Thinking may be better suited for broader strategic or organizational innovation, whereas Human-Centered Design offers unparalleled depth in user-focused product and experience development.

Ultimately, integrating the strengths of both methodologies can create a powerful design and innovation strategy that not only meets user needs but also drives meaningful business results. By cultivating a culture of empathy and user engagement, organizations can transcend traditional problem-solving paradigms and achieve sustainable innovation.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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Benchmarking Innovation – Standards and Practices

Benchmarking Innovation - Standards and Practices

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the ability to innovate consistently and effectively is more critical than ever. Yet, defining how to measure and benchmark innovation remains a complex challenge. Benchmarking innovation involves evaluating how different organizations manage to achieve success in innovative practices and understanding the key components that contribute to their performance. As a human-centered change and innovation thought leader, I propose that there are several layers to effectively benchmarking innovation: defining innovation metrics, recognizing best practices, and understanding the cultural components of innovation.

Defining Innovation Metrics

Measuring innovation is not a one-size-fits-all proposition. Organizations must carefully select metrics that align with their strategic goals. Common metrics might include research and development expenditure, the number of new products or services launched, the percentage of revenue from these new offerings, and the scope of patent filings. However, organizations should also consider less conventional metrics, such as the speed of idea to implementation, customer satisfaction, and customer adoption rates. Establishing clear metrics upfront is critical, as they guide both internal evaluations and external benchmarking activities.

Recognizing Best Practices

Analyzing the best practices of companies renowned for their innovative capabilities can provide powerful insights. Companies like Apple, Google, and 3M are often cited for their innovation successes. By studying their methodologies, such as Apple’s focus on user-centric design or Google’s commitment to creating a ‘20% time’ for creativity, organizations can adopt practices that may fit their own innovation frameworks. Collaboration, cross-functional teams, and fostering a culture where risk-taking is encouraged are just as important as technological advancements. Benchmarking against these exemplary models helps companies identify gaps and opportunities within their own structures.

Understanding Cultural Components

The culture of innovation within an organization plays a pivotal role in its success. It’s a blend of leadership, employee empowerment, and the willingness to embrace failure as a stepping stone to success. Effective innovation cultures often feature strong leadership commitment to innovation as a core value, continuous learning opportunities, and a structure that rewards both individual and team contributions to innovation. These cultural components can be benchmarked against industry peers and leaders in unrelated industries to gather insights and adapt strategies to fit their unique environments.

Case Study 1: Apple’s User-Centric Innovation Model

Apple Inc. has consistently been at the forefront of innovation, primarily due to its unwavering commitment to a user-centric approach. The company benchmarks its innovation efforts not merely by technological advancements but by its ability to address user needs in transformative ways. A key standard that Apple employs is its design philosophy, where form and function go hand-in-hand.

By analyzing customer feedback, market trends, and user behaviors, Apple has refined its processes to keep innovation at the core. They benchmark the success of their products not only through sales but also through customer satisfaction metrics and brand loyalty scores. For instance, the iterative improvements in the iPhone line demonstrate how Apple remains responsive to consumer needs while maintaining stringent internal standards for innovation. This approach has made Apple’s innovation practices a standard reference point for companies worldwide.

Case Study 2: 3M’s Diversification and Employee Initiative

3M is a quintessential example of fostering innovation through employee initiative and diversification. Known for its wide range of products spanning numerous industries, 3M has built an innovation culture that emphasizes cross-pollination of ideas, allowing innovation to flow across diverse sectors of the company.

One of their hallmark practices is the ‘15% rule,’ which allows employees to dedicate a portion of their working time to pursue ideas they are passionate about. This practice, which can be seen as a unit of measurement itself, ensures that 3M cultivates an environment ripe for spontaneous innovation. Benchmarking their success often involves comparing the ratio of resources allocated to these initiatives versus the resulting revenue from new product lines. Internal metrics focus on the balance and effectiveness of diversification strategies, which in turn reinforce 3M’s position as an innovation leader.

Integrating Benchmarking into Innovation Strategy

To integrate benchmarking effectively into your innovation strategy, companies should create a structured approach. Begin with a thorough internal analysis of current innovation practices. Identify strengths and areas for improvement by comparing against industry standards and leading companies in related fields.

Engage in cross-industry benchmarking to broaden perspectives and bring insights from diverse practices and challenges. Involve diverse teams in the benchmarking process to ensure that findings are holistic and inclusive of different viewpoints within your organization.

Finally, make sure that learnings from benchmarking efforts translate into actionable strategies—whether it be modifying internal processes, updating metrics, or investing in cultural shifts. This continuous learning and adaptation cycle is key to maintaining competitive edge and fostering sustained innovation.

Conclusion

Benchmarking innovation is an ongoing journey of learning, adapting, and applying. While it involves comparing metrics and practices, it is ultimately about transforming insights into innovative practices that propel an organization forward. By embracing both the measurable and intangible elements of innovation, businesses can ensure that they not only keep pace with the rapidly changing world but lead the charge into new frontiers of possibility.

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: Pixabay

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Chance to Help Make Futurism and Foresight Accessible

I’ve been hard at work building all kinds of tools to help innovation, change, transformation and design thinking practitioners be more successful in their jobs.

The number of human-centered tools in the Change Planning Toolkit v13 from the initial fifty (50) to more than SEVENTY.

I also introduced lots of inexpensive tools like the:

  1. $9.99 – Problem Finding Canvas
  2. FREE – Innovation Maturity Assessment
  3. FREE – Visual Project Charter™
  4. FREE – Experiment Canvas™
  5. FREE – ACMP Standard for Change Management® Visualization

And the core of the forthcoming Human-Centered Innovation Toolkit is well underway.

But I’ve also been exploring the very obtuse realm of futurism and foresight and pondering how to make it more accessible to us ordinary humans, and I think I’ve done it!

Chance to Help Make Futurism Accessible

I’ve created a set of TWENTY (20) simple but powerful foresight and futurism tools to power my FutureHacking™ methodology.

To spread them farther and faster I’m looking to partner with a forward-thinking organization to bring them to market.

  • Does your organization view itself as leading its customers into the future?
  • Are you looking for an amazing marketing opportunity?
  • One that would empower thousands of innovation and strategy professionals to do their own foresight and futurism work?

If so, then contact me here and we’ll build a launch plan together that connects your brand to a powerful new FutureHacking™ movement!

FutureHacking Tools Collection

Benefits to you will include, but will not be limited to:

  1. Joint promotion of your brand via my site, social media, email newsletters, etc.
  2. Presence of your logo as a sponsor on the tools and educational assets
  3. Access to the tools for your employees
  4. Other ideas you suggest!

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The Suggestion Box Strikes Back!

How collaboration platforms can turbocharge your innovation efforts

The Suggestion Box Strikes Back!

GUEST POST from John Bessant

Organizations need to innovate. So far, so blindingly obvious. But they also need to innovate their innovation approaches; the best recipes may no longer work in a context which is continually changing. Smart players recognize that they need to add innovation model innovation to their repertoire — constantly reviewing what they do to organize and manage the process of creating value from ideas and, if necessary, adapting it.

Sometimes this will involve dramatic change. Think, for example, of the way Procter and Gamble have been re-engineering their whole business over the past twenty years from a model dominated by internal R&D to an open approach based on ‘Connect and develop’. Or how capital goods giants like Caterpillar and Rolls-Royce have shifted the entire basis of their business towards ‘servitization’, no longer developing and selling new products but rather renting out capabilities like ‘power by the hour’. This has required them to rethink the entire innovation model, putting customer focus much more center stage and involving extensive partnerships and strategic alliance to deliver the whole new package of service.

But often it’s a quieter revolution, a gradual change in which new routines emerge or existing ones are upgraded to work in new ways, deploying new mechanisms to make them work better. That’s been the story of the suggestion box.

Smart People Don't Always Have Smart Ideas

‘….the beauty of it is that with every pair of hands I get a free brain!’

It’s a very old idea, and an obvious one. People are smart so why not tap into their ideas to help with the innovation agenda? Ask them, and you might be surprised at what they have to offer. Elements of this approach can be found in the medieval guild system where it was used to help develop and improve craft skills and practices. It was an idea which the eighth shogun of Japan, Yoshimuni Tokugawa tried out in 1721 with his ‘Meyasubako’, a box placed at the entrance of the Edo Castle for written suggestions from his subjects. And the British navy pioneered a similar scheme in 1770, asking its sailors and marines for their ideas — significantly reassuring them that such suggestions would not carry the risk of punishment!

By the time of the Industrial Revolution innovation was recognized as a powerhouse — and not everyone thought that ideas should be confined to specialists with the workers simply employed as pairs of hands. In 1871 Denny’s shipyard on the banks of the Clyde began operating a suggestion scheme amongst its 350 employees; it enabled them to cut the time to build a warship from six months to four whilst contributing a variety of other quality and productivity improvements. And in 1892 John Paterson at the National Cash Register company in the USA began exploring ways of tapping into ‘the hundred-headed brain’ of his workforce; his success led the Eastman Kodak company to implement a similar scheme in 1896.

It wasn’t just innovation rates which improved; a growing number of studies, not least in the famous Western Electric research at the Hawthorne plant, found that asking people for their ideas and enrolling them in workplace productivity improvements had the by-product effect of better motivation and employee satisfaction. The great quality management writer Joseph Juran talked about ‘the gold in the mine’, describing how unlocking the potential of employees to add their mental weight to the innovation problem could dramatically improve quality.

By the late twentieth century these ideas were widespread; the 1980s total quality revolution gave birth to lean thinking and with it the core recognition that asking people for their ideas was a pretty smart way of driving up productivity, whatever the setting.

Thinking Inside the Box

Thinking inside the box

So a great idea — but not without its limitations. The trouble with suggestion boxes and schemes is that they bump up against some unfortunate logistical challenges. Even in the best-intentioned companies, with enlightened leadership supporting the concept and innovation facilitators trying to make it happen the idea of high involvement quickly runs aground on some simple arithmetic around idea management.

Suppose you have a workforce of 100 people and you convince them to join in the innovation effort and suggest improvements. By the end of week one you have 100 ideas, by week four 400 and pretty soon you can get into thousands of ideas. Lots of enthusiasm and there’s no shortage of good ideas — people generally have them and have probably been carrying a backlog around with them for some time. And when they tell their friends there’s an accelerator effect; the innovation wave starts to build.

Your problem is most certainly not going to be a shortage of ideas — quite the reverse. But what do you do with them? Of course, a good percentage will be simple things which people can implement for themselves — and your job is to encourage them (and also to track the changes they’re making to ensure they don’t end up conflicting with your established operating procedures).

But a lot more will need thinking about. They may need modifying and developing from a germ of a possibility into something polished. Juran’s raw gold ore doesn’t glisten straight away, it needs processing. And some of them will need quite a lot of effort and specialist input to yield eventually valuable results.

All the while you are working on these the inflow pipeline is filling up, hundreds of ideas every week. But with the ideas also comes expectation — people not unreasonably asking ‘what are you doing with my idea?’ So you need to spend your precious time not only processing the ideas but also feeding back; sometimes this means saying no to unworkable ideas or those which don’t fit, and doing so in a way which doesn’t discourage people from suggesting further new ideas.

Walt Disney Fantasia

It doesn’t take long before you’re like Mickey Mouse in the wonderful Disney film ‘Fantasia’ where he plays the Sorcerer’s Apprentice. He tries to improve the way he deals with his household chores by a little magic spell which at first helps him out with brooms, buckets and scrubbing cloths working hard on his behalf. But pretty soon things get out of control, there’s water everywhere and an army of brushes and mops threatening to take over his world. The resulting chaos is only halted by the arrival of the master Sorcerer who magically puts things back to how they were.

It’s potentially the same with your magic spell of high involvement innovation. What began as a great movement towards innovation from everyone soon becomes a nightmare precisely because people are volunteering ideas. There isn’t the capacity to deal with them, they’re coming at you thick and fast but you can’t handle them all. And then things take a turn for the worse. People keep asking you what’s happening to their idea and when they get no response they start to grumble. They get fed up with seeing their great thoughts disappear into what seems to them to be a black hole. Nothing seems to happen and so they stop bothering to make suggestions and slip back into simply doing what they are told, albeit with a bad grace. And they tell their friends who nod their heads and agree that the system simply isn’t working, so why bother with it?

Pretty soon you’re back to where you started. Not only has the flow if ideas dried up but now people are resentful and suspicious. They won’t get fooled again; next time you come around asking for their suggestions they’re not going to give them up so easily.

Sadly, that kind of story is typical; the limitation of suggestion schemes is that they aren’t well-equipped to deal with a high volume of ideas or high levels of participation. There’s nothing wrong with the model which is why employee engagement can work so well in teams. Where the focus is local, based around workplace teams working on quality or lean six sigma a trained team can keep chipping away at its productivity improvement goals very effectively. There’s shared motivation, clear local targets and high visibility of the results. Getting everyone involved in innovation works and if you keep it going it delivers consistent bottom line benefits. The only trouble is that it’s hard to scale it.

Doctor Superhero

Technology to the rescue…

Fortunately, around the turn of the millennium things began to change. Faced with the problem of idea management a number of people began working on IT-based solutions. Their earliest attempts were little more than electronic versions of the old physical suggestion box and they had limited success. Feeding ideas into complicated spreadsheets wasn’t particularly exciting or motivating even if it was now possible to do some rudimentary tracking of those ideas.

But gradually things improved. The interface became more friendly and, with the growth of internal networks, the possibility of accessing a terminal and logging on to a screen became available to many more people. Instead of being a one-way posting process the beginnings of visibility emerged; people could see what happened to their ideas and get some feedback on them.

It wasn’t just the technology which was getting better and offering a closer match to the needs which organizations had for effective idea management. The wider context was changing too, undergoing a revolution at scale. Social networking began to emerge and quickly caught on, offering new ways to interact with people in an online space. By 2008 close to 120 million people were using the MySpace platform every day and by 2012 Facebook had a user base in excess of 1bn and growing.

This external shift opened up huge new possibilities for the ways in which interaction could happen across an innovation platform. People could not only connect but also share, like, comment, build the conversation — all features which developers of collaborative innovation platforms saw as rich in possibilities for their offering. User companies began to sit up and take notice as a new way of engaging employees emerged — one which offered the twin advantages of richness and reach. Through such platforms a high volume of people could be connected, forming the ‘neurons’ in a potentially giant innovation brain. And their activity could be extended way beyond simply posting up a suggestion; they could comment on other people’s ideas, like or suggest modifications, join into virtual teams building and shaping ideas into real innovation possibilities.

As if that wasn’t a strong enough impulse to regenerate interest in high involvement innovation we also discovered ‘crowdsourcing’ as an approach to collecting ideas. This wasn’t a new concept; back in 1714 the idea of taking a big and apparently intractable problem and asking a lot of people for their help with solving it had been deployed to great effect. Faced with the growing crisis in navigation caused by ship’s captains being unable to calculate their longitude accurately because they lacked a reliable portable timepiece the British Admiralty launched what we would recognize today as an innovation contest. With the support of the king and with the attraction of a significant financial prize the challenge was taken up and solved very effectively; the winning (and wonderful) design by John Harrison was soon being fitted to all the ships in the British navy as standard equipment.

‘Broadcast search’ of this kind undoubtedly works — the trouble was that in those days it was a difficult process to organize and manage. But with today’s powerful communications infrastructure it’s possible to set up and run an innovation contest in an afternoon and reach out to the whole world for answers. Idea marketplaces have sprung up all over the internet, connecting seekers of solutions with potential solvers; one such platform, Innocentive.com currently has a population of regular solvers over half a million strong offering their input to the various challenges posted on the site.

Tapping into such ‘collective intelligence’ in this way isn’t just about increasing the volume of ideas coming into the system. Its real value is in extending the reach, drawing in ideas from across the ‘long tail’ of different perspectives on the problem you’re trying to solve. Karim Lakhani and colleagues highlighted this effect in their detailed studies of traffic across the innocentive.com platform; the benefits came not from having tens of thousands of people working on your problem but from the diversity in approaches which they brought. Fresh minds, new insights, alternative ways of framing the problem.

Collaboration platforms 2022

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.

And it works. There are countless case studies drawn from contexts as different as aerospace and agriculture, medicine to microelectronics manufacture. High involvement works in in the public and not-for-profit world as well as in the commercial one, and the targets for such innovation range from straightforward cost-savings and productivity improvements to creating new crisis responses in the world of humanitarian aid or finding ways to improve access to shelter, health care and basic needs in the world of international development.

Where it was once the exception to find firms like Toyota reporting high levels of participation and harvesting the benefits emerging from millions of suggestions, it is now commonplace to find benefits reported in terms of million dollar savings. One of the founder companies in the idea management field, Imaginatik, has a running total on its website suggesting that their platform has enabled over 2bn ideas to be suggested, generating $1.1bn of savings; similar data emerges from other suppliers of the technology.

But it’s not just the raw return on investment which collaboration platforms offer — thought these benefits are impressive. Their real value lies in the way they have matured to enable systematic innovation routines to work at scale and across the entire process of innovation, not just the front-end idea generation.

Idea Plugin
Image: @studiogstock on Freepik

Plug’n’play?

So you might think that the answer is simple — invest in a platform if you want to turbocharge your innovation activities. But you’d be wrong, and for several reasons. First we need to remind ourselves that platforms are simply tools. They may be significantly more powerful than their predecessors but just like a power drill with lots of shiny new attachments, in the hands of an inexperienced amateur it will not deliver — and may leave you with a series of unsightly holes and marks on your wall!

In particular they need embedding in a culture which supports the underlying values and behaviors associated with high involvement innovation. If you don’t actually believe that everyone can contribute, or if you believe it but don’t commit the resources to train and enable people to deliver their ideas, then your investment in a platform will simply be a white elephant. What makes it work is a culture, an integrated suite of behaviors which are articulated, supported, reinforced until they become ‘the way we do things around here

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: Pixabay, Wikimedia Commons, Pexels, Freepik

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Innovation Practices Need a Compelling Purpose

Innovation Practices Need a Compelling Purpose

BMNT Editor’s note: This is the second in a weekly series that will explain 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.

GUEST POST from Brian Miller

Private capital investors are clear about the purpose of their investments, and it’s written down in the form of a thesis or mandate. This thesis explains where they plan to invest and why. It’s used to attract capital to a fund and deploy it for a future return. Consider Not Boring Capital, a small multi-stage fund that invests in founders and companies executing on complex, non-obvious strategies aimed at huge visions.

Innovation vs ExecutionGovernment organizations seeking alignment between innovation and execution can borrow from this common practice in order to increase confidence in their investment decisions. Recall from the last post that innovation projects are not simply smaller versions of existing programs. Resources are first invested in validating a project (explore). Only after validation are significant investments made in deploying a new capability (exploit). Government leaders feel comfortable making investments in the former, but not the latter. The common risk management approach is simply avoidance, because the rewards of innovation projects seem distant and uncertain. This is magnified in the national security community, where lives are on the line and no-fail missions are prevalent.

A carefully constructed innovation thesis will help to manage this risk and focus limited time, energy, and resources. It is what key stakeholders rally around. Yet it must be detailed enough for leadership, key partners, and even skeptics to understand how developing a disciplined process – an Innovation Pipeline® – will address the significant challenges facing the organization. Above all, it helps to build consensus and commitment. Otherwise, capabilities that emerge from an innovation practice will become orphans, never to be adopted by the enterprise.

What an innovation thesis consists of

Like the private sector, a public sector innovation thesis defines where to invest and why. It helps to filter out “nice to have” projects from the “must have.” It consists of two major parts:

1. A unique perspective on where relevant fields are going and the sorts of challenges that lie ahead. For example:

  • Emerging surveillance technology and the evolution of tradecraft for an intelligence service
  • Leaps in healthcare delivery for the Department of Veterans Affairs
  • Advanced manufacturing for the Department of Commerce
  • Commercial space investments for the U.S. Space Force and NASA

2. The types of ideas the organization will (and will not) invest in, informed by their desirability, viability and feasibility.

Desirability Feasibility Viability

How to create one

Designing an innovation thesis takes four general steps, which can be accomplished in a single day with the right stakeholders and a trained facilitator.

1. Map the organization’s current “mission model”

  • The organization’s approach to satisfying customers and partners
  • The various ways it does so (e.g., capabilities, products, services)
  • The senior leaders, end-users, subject matter experts, saboteurs, and enablers whose buy-in and support is needed to see results (e.g., legal, contracts, policy, IT, security)

2. Map the key trends and consequential forces affecting the organization’s mission. For example:

  • Emerging technology
  • Budget forecasts
  • Policy development
  • Political shifts
  • Availability of key resources

3. Identify the gaps or misalignment between 1 and 2

4. Consider how to best fill them by changing the mission model (in theory) and what innovations must be realized to do so (in practice)

Output

Such an exercise will easily generate an artifact to communicate updated direction and guidance from senior leadership to the rest of the organization and its partners. It does not need to be anything more than a short memo or a succinct slide deck. All that is required is that it yields a clear idea of how the world is changing and how the organization intends to counter or take advantage of the momentum.

Next, a minimum viable team can begin to execute the strategy.

Image credits: BMNT

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Innovation Requires Constraints

Innovation Requires Constraints

GUEST POST from Greg Satell

Some years ago, I wrote an article in Harvard Business Review about stock buybacks, which were being pilloried at the time. Many people thought that companies were spending too much money to gin up their stock price when they could be investing those funds into innovation, making better products and creating new markets.

Yet I pointed out that things weren’t as they seemed. As Clayton Christensen had showed around the same time, there was a superabundance of capital (in response to the financial crisis, central banks had been flooding markets with money) and corporations had more money than they could profitably invest.

I also suspected, although the evidence was scant at the time, that the extra money was going to Silicon Valley startups, which seemed to me to be less potentially problematic, especially when the public sector was being woefully underfunded at the same time. Today, we can see the results and they aren’t pretty. Without constructive constraints, even good ideas go bad.

The Chimera of Mass Adoption

Shai Agassi had a good idea. His key insight was that electric cars couldn’t survive without an ecosystem of charging stations. Therefore, he reasoned, to spur mass adoption you needed to develop the cars and the charging stations in tandem. Once you relieved the problem of “range anxiety,” so the theory went, ordinary consumers would buy in.

An entrepreneur at heart, Agassi started a company, Better Place, to make his vision a reality and, with the support of a wide array of celebrities and politicians, raised nearly a billion dollars of venture capital. It seemed like a sure winner. After all, with that much money and star power, what could go wrong?

As it turns out, everything could go wrong. From the design of the cars, to the charging stations to the batteries themselves, every detail was fraught with problems. But with so much money, Agassi could continue to press forward, sell his vision and win over partners. Instead of resolving issues, they multiplied. In a few short years, the company was bankrupt.

The truth is that, outside of software, going after mass adoption from the start is usually a bad idea. Rather than trying to please everybody at once, you are much better off focusing on a hair-on-fire use case—a small segment of customers that has a problem they need solved so badly that they almost literally have their hair on fire—and building up from there.

Incidentally, that is exactly what Elon Musk did with Tesla. He didn’t try to build for the mass market, but for Silicon Valley millionaires who wanted a cool, eco-friendly car and wouldn’t need to rely on it for everyday use. That foothold allowed the company to learn from its inevitable mistakes, improve the product and its manufacturing process and, eventually, to prevail in the marketplace against much bigger, but more traditional, competitors.

Buying Into The Silicon Valley Myth

While Agassi’s idea had a certain logic to it, Adam Neumann’s is much harder to figure out. Essentially, he sold investors on the idea that renting coworking space to businesses, which was not at all a new or innovative idea, could somehow be married with some Silicon Valley pixie dust. The result was WeWork, a $47 billion debacle.

While WeWork is, in many ways, an exceptional case, in others it is surprisingly mundane. For more than a decade, investors—and the business community at large— have bought into the Silicon Valley myth that its model of venture-funded entrepreneurship is widely applicable outside of software and consumer gadgets. It is not.

The truth is that Silicon Valley’s way of doing business was a specific solution that applied to a limited set of industries where low or near-zero marginal costs and the potential for network effects made increasing returns to investment not only possible, but a legitimate business planning objective.

Unfortunately, when you try to apply those same business principles to an industry where those conditions do not exist, you essentially get a Ponzi scheme. As long as investors continue to pour money in, the business can continue to win market share by undercutting competitors on price. Eventually though, as in the case of WeWork, the bottom falls out.

The Cult of Talent

Better Place and WeWork, as well as other notable “unicorn debacles” such as Uber and Theranos, are cautionary tales. Venture capitalists, believing in their own brilliance as well as their ability to spot it in others, shoveled money into founders with questionable ideas and, as soon became apparent, even worse morals.

But what if you could have the best of both worlds? What if you could take all of that Silicon Valley venture money and, instead of throwing it all at some young hotshot, invest it in some grizzled veterans with real track records. Instead of betting on a long shot, you could essentially put your money on a proven performer.

That, essentially, was the idea behind Quibi, a short form video company founded by Jeffrey Katzenberg, who revived Disney’s animation studio and then went on to even greater success as Co-Founder of Dreamworks, and Meg Whitman, who led eBay from a small startup of 30 people to become a global powerhouse employing thousands and earning billions.

Yet these two old hands, with all of their experience and know-how, somehow managed to do even worse than the more obviously incompetent Agassi and Neumann. Despite raising more than $2 billion, within seven months of launching, Quibi acknowledged defeat, shutting down operations and vowing to return whatever money that was left over to investors.

A Recurring Pattern of Fundamental Fallacy

It’s not hard to see an underlying pattern in all three of these massive failures. Venture investors, whose model is based on the principle that one outsized success can easily make up for any number of failed ventures, have come to believe that betting big can increase the chance of hitting that unlikely triumph.

What they don’t seem to have considered is that too much money can make a good idea go bad. Clearly, electric cars can succeed in the marketplace. Coworking spaces have been a viable business model for decades. There’s no question that Katzenberg and Whitman are talented executives. Yet, with the massive support of investors, they all failed massively.

Yet researchers have known for decades that creativity needs constraints. When you have a limited budget, you simply don’t have the luxury of ignoring problems. You have to face up to them and solve them or you won’t survive. When you have virtually unlimited resources, however, you can leave the hard stuff till another day. Eventually, it all comes crashing down.

Unfortunately, as Charles Duhigg explains in a piece in The New Yorker, that Silicon Valley investors who are seen as insufficiently “founder friendly,” now find themselves shut out of the best deals. Further research has begun to show that these tendencies, souped up by an overabundance of capital, have begun to crowd out good investments.

Or, put another way, Silicon Valley is building a doomsday machine and we desperately need to get off.

— Article courtesy of the Digital Tonto blog
— Image credit: Unsplash

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Encouraging Creative Confidence in Teams

Encouraging Creative Confidence in Teams

GUEST POST from Art Inteligencia

Creativity is the lifeblood of innovation. In an era where organizations must continuously adapt and innovate to stay competitive, the need for creative confidence among team members has never been greater. Creative confidence isn’t just about having creative ideas; it’s about having the courage to act on them. This article explores strategies for cultivating creative confidence within teams and provides illustrative case studies.

The Significance of Creative Confidence

Creative confidence is crucial because it empowers individuals to venture beyond conventional boundaries, engage in problem-solving with a fresh and diverse perspective, and ultimately drive transformative change. Often, teams have inherent creativity, yet it remains untapped because members may feel intimidated, undervalued, or uncertain about expressing their ideas.

Empowering teams with creative confidence involves nurturing an environment where people feel safe to express themselves without fear of criticism or failure. Howard Schultz, former CEO of Starbucks, summed it up appropriately when he said, “Risk more than others think is safe. Dream more than others think is practical.”

Components of Creative Confidence

  • Psychological Safety: Creating an environment where team members feel secure enough to take risks and share their thoughts openly.
  • Growth Mindset: Encouraging a mindset that views challenges as opportunities to learn, rather than obstacles to success.
  • Collaboration and Diversity: Valuing diverse perspectives and leveraging collective intelligence to foster creativity.
  • Iterative Experimentation: Promoting the idea that innovation is a process characterized by iterative testing, learning, and improvement.

Strategies to Build Creative Confidence

1. Foster a Safe Environment

Instill a culture where failure is viewed as a part of the innovation journey, not a career-ending mistake. Encourage team members to share ideas without fear of criticism. Leaders play a crucial role in modeling this behavior by sharing personal experiences of failure and lessons learned.

2. Embrace a Diversity of Perspectives

Innovation thrives in diverse environments. Empower teams to embrace varying points of view, background experiences, and expertise. This diversity fuels new ideas and approaches that might not be considered in homogenous groups.

3. Encourage Experimentation

Create opportunities for team members to experiment with new ideas through pilot projects or prototyping sessions. Encourage short iterations and maintain an iterative mindset towards product enhancement and service development.

4. Establish a Feedback Culture

Nurture regular feedback mechanisms that are constructive and actionable. Encouraging feedback from various stakeholders increases the range of insights and perspectives, aiding idea refinement.

5. Cultivate a Growth Mindset

Promote a culture where learning is seen as a continuous journey. Recognize and celebrate effort, resilience, and improvement. Showcase real-world examples of how embracing challenges leads to innovation.

Case Study 1: Google’s 20% Time

Google’s “20% Time” initiative is an exemplary case of promoting creative confidence. Engineers and employees are encouraged to spend 20% of their time on projects they are passionate about, outside of their usual work responsibilities. This policy has led to the creation of new innovative products, such as Gmail and Google News.

The “20% Time” initiative shows the power of providing space for creative thought. By trusting employees to explore their ideas, Google harnessed a wealth of creativity that has demonstrably contributed to the company’s growth and innovation pipeline.

Case Study 2: 3M’s Innovation Culture

3M, a world leader in innovation, has created a culture that balances formal structures with the flexibility needed for creativity to flourish. Their “15% Time” rule is a policy allowing employees to spend up to 15% of their working hours on projects that captivate them, akin to Google’s system.

This commitment to creative exploration has paid off tremendously: approximately 30% of 3M’s annual revenues come from products invented within the last five years. The company encourages cross-disciplinary collaboration and ensures a low-risk environment where inventiveness is encouraged and tangibly rewarded.

Conclusion

Encouraging creative confidence in teams is a significant component of sustaining innovation within organizations. By creating environments that nurture psychological safety, diversity, experimentation, feedback, and a growth mindset, your organization can harness the creative potential of its people to drive meaningful change.

Remember, while some strategies may work better for specific environments or industries, the underlying principle remains the same: fostering an environment that encourages creativity and innovation holds the key to navigating and succeeding in the complex landscape of modern business.

The road to creative confidence is a journey, not a destination. By diligently implementing these strategies and learning from the experiences of others, any organization can amplify its innovative capabilities and achieve extraordinary outcomes.

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: Unsplash

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Creating the World’s Best Change & Transformation Book

The Perfect Change & Transformation BookOn Friday I was speaking with my publisher Palgrave Macmillan (now part of Springer) about doing a second edition of Charting Change.

This means that my publisher is interested in having me create a new version of Charting Change that would include most, if not all, of the content contained in the first edition, while also adding thousands of words of new insights (plus new pictures and tools).

This causes me to ask you the following questions:

  1. What human-centered change and transformation topics are missing from Charting Change?
  2. What information would the perfect change & transformation book contain?
  3. What tools do change management professionals and transformation leaders need to enjoy greater success in their jobs, projects, and programs?
  4. Toolkit subscribers – which of my new tools should I highlight in the second edition that I didn’t introduce in the first edition?
  5. Who do you think has something compelling to add to the conversation in an additional guest expert section in the book? And what is the topic you want to hear from them on?

Charting Change introduced my Human-Centered Change™ methodology and a suite of 50+ tools available for purchase (book buyers get access to 26 of the 50+ tools). That toolkit has since grown to a collection of 70+ tools available to toolkit subscribers.

Thank you so much to everyone who has supported the first edition thus far and also to my Human-Centered Change™ Toolkit subscribers.

I’m interested to hear in the comments below your thoughts on the questions above!
(or send me an email)

If you don’t already have a first edition copy of Charting Change, you can get one here:

https://www.amazon.com/dp/1137536950/
(support my sharing of free Human-Centered Change & Innovation tools and insights)

And don’t forget to download your Free Human-Centered Change Tools!

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Skills for Leading Innovation

Developing Future Leaders

Skills for Leading Innovation

GUEST POST from Art Inteligencia

In today’s rapidly accelerating world, innovation is not just a buzzword—it is a critical business capability. Organizations that are unable to innovate risk falling behind their competitors. As such, developing leaders who can successfully navigate and drive innovation is crucial for sustainable success. But what skills do future leaders need to lead innovation effectively? This article dives deep into the essential skills and mindset shifts necessary for fostering future leaders capable of steering innovation.

The Imperative for Innovative Leadership

Change is the only constant in business, and innovation is its engine. Future leaders must embrace this reality and work to harness the power of innovation to solve complex problems, exploit new opportunities, and drive growth. But innovation is not an easy path—it requires a blend of creativity, strategic thinking, resilience, and empathy for the end-user. To successfully lead innovation, leaders must develop a unique set of skills that transcend traditional management practices.

Key Skills for Leading Innovation

  • Visionary Thinking: Innovation starts with a vision. Future leaders must possess the ability to see beyond the horizon and imagine what could be. They need to be able to connect the dots between disparate ideas and recognize their potential for creating something entirely new.
  • Creativity and Experimentation: The ability to foster a culture of creativity and experimentation is crucial. Innovative leaders encourage their teams to explore new ideas, embrace failure as a learning opportunity, and iterate quickly.
  • Empathy and Human-Centered Design: Successful innovation is grounded in a deep understanding of user needs. Leaders must develop empathy to better understand their customers and tailor solutions that resonate on a human level.
  • Adaptability and Resilience: The path to innovation is fraught with uncertainties and setbacks. Leaders must be adaptable and resilient, embracing change and pivoting strategies as necessary to stay on course.
  • Collaboration and Networking: Innovation is rarely the result of solitary genius. Future leaders must excel at building diverse teams and fostering collaboration across organizational boundaries.
  • Communication and Storytelling: Leaders need to effectively communicate their vision for innovation and rally stakeholders around their ideas. Storytelling is a powerful tool in this regard, helping to make complex concepts accessible and inspiring action.

Case Studies in Innovative Leadership

Case Study 1: Google’s 20% Time

Google has long been hailed for its culture of innovation, much of which can be traced back to a policy known as “20% time.” This initiative allows employees to dedicate 20% of their work time to projects outside their usual responsibilities that they are passionate about. This freedom to explore and experiment has led to the creation of highly successful products like Gmail and Google News.

The introduction of 20% time exemplifies how Google has cultivated a leadership style that emphasizes creativity, experimentation, and trust in employees. Leaders at Google have understood the importance of giving employees the autonomy to innovate, demonstrating that future leaders must create environments where teams feel empowered to explore their ideas.

This case study accentuates the critical role of visionary thinking and a culture that embraces risk and creativity in leading innovation.

Case Study 2: LEGO’s Turnaround through Open Innovation

Once on the brink of bankruptcy in the early 2000s, LEGO has since transformed into a powerful force in the toy industry, thanks largely to its commitment to open innovation. The company’s leadership realized that internal innovation alone wasn’t enough. Instead, they embraced open innovation by leveraging their fan base to contribute new ideas for products and designs.

LEGO’s initiative known as “LEGO Ideas” is a platform where fans can submit their own concepts for new LEGO sets. Successful ideas, after gaining sufficient community support, can become official products, sharing a portion of sales with the creators. This approach has led to a renewed sense of creativity and connection with the consumer base.

The LEGO case study highlights the importance of collaboration, community engagement, and leveraging external networks to drive innovation. It also illustrates how adaptability and a willingness to embrace new operational models are pivotal skills for future innovation leaders.

Mindset Shifts for Leading Innovation

Beyond skills, future leaders must also embrace certain mindset shifts to foster a culture of innovation. Here are some key shifts to consider:

  • From Control to Empowerment: Traditional leadership often focuses on control and predictability. However, to spur innovation, leaders need to empower their teams with autonomy and decision-making capabilities.
  • From Perfection to Iteration: Innovation thrives in environments where imperfections are seen as part of the learning process. Leaders should encourage iterative processes and learning from failures rather than striving for perfection from the outset.
  • From Solving Problems to Creating Opportunities: While problem-solving is important, innovative leaders focus on creating opportunities and envisioning new possibilities that disrupt the status quo.
  • From Hierarchies to Networks: Recognizing the value of horizontal networks over traditional hierarchical structures can enhance collaboration and the flow of ideas.

Conclusion

Developing future leaders with the required skills and mindsets to lead innovation is not a singular effort but a continuous journey. It requires shifts in organizational culture, as well as targeted efforts to nurture skills like visionary thinking, creativity, empathy, adaptability, and collaboration. Organizations that invest in cultivating these capabilities in their leaders will be better positioned to harness the power of innovation, driving growth and resilience in the face of an ever-evolving business landscape.

As we look to the future, it is clear that the leaders who will thrive are those who understand that innovation is not just about technology but is intrinsically human-centric, focusing on creating value, engaging stakeholders, and transforming the way we live and work.

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: Unsplash

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