Category Archives: Innovation

Leveraging Tacit Knowledge to Drive More Innovation

GUEST POST from Diana Porumboiu

The value of intangible assets in organizations is nowadays five times greater than the one of tangible assets. In fact, 84% of value in S&P companies is currently represented by intangible assets, like intellectual property, knowledge, or brand recognition, compared to merely 16% for tangible ones.

Even so, some leaders still have difficulties in grasping the power of knowledge and how it can be leveraged and managed to drive more innovation in their organizations. One of the biggest challenges for these leaders is that the majority of knowledge that makes more innovation happen is tacit, and therefore it’s harder to tap into its full potential through the traditional methods: processes, procedures and policies available in databases and documents.

Unfortunately, companies that were not able to keep up with these changes in value distribution faced difficulties and were surpassed by those that leveraged tacit knowledge better. Now, the question that arises is how top companies tap into the full potential of tacit knowledge.

So, in today’s article we’ll explain how different types of knowledge trigger innovation, what is the true value of tacit knowledge, as well as some practical tips on how to make the most of tacit knowledge.

Tacit Brain Knowledge

Explicit, implicit, and tacit knowledge and their role in driving innovation

Before diving into the practical things, we’ll go through some theoretical aspects which can help clarify the reasoning behind some actions. There’s a lot of literature on tacit knowledge and knowledge management which you can explore more in depth if you’re interested, but for the purpose of this article we chose the essential information which can serve leaders, managers and decision-makers who want to tap into the potential of tacit knowledge.

The goal of this article is not to offer a perspective rooted in cognitive science and we are aware that there are different interpretations and a variety of opinions on the topic. That being said, let’s get to it.

Knowledge, especially tacit, is hard to quantify and measure, which makes it elusive and difficult to capture, but its role in driving innovation is undeniable. To exploit its innovation potential, it’s essential to understand the different types of knowledge, how they can be managed and how they come into play in an organization.

For this, we’ll briefly explain the three main types of knowledge and their role in making innovation happen.

First, there is explicit knowledge, which is the easiest to manage and understand. It’s the most basic type of knowledge that can be collected and transmitted throughout an organization. It comes from organizing, structuring, and processing data and it’s usually stored in databases or files like internal documentation, reports, analytics and financials, process maps, handbooks, and so on.

For example, all metrics and KPIs are forms of explicit knowledge. Explicit knowledge supports everyday improvements which primarily leads to incremental innovations.

Next is implicit knowledge, which oftentimes is put under the same umbrella with tacit knowledge. However, we prefer to separate the two because there are small differences in how you should manage them in practice.

Implicit knowledge is essentially explicit knowledge applied: how we make use of existing information and put it into practice. Each of us has different past experiences and ways of thinking. As you’ve probably seen, that means that we can draw different conclusions from the same data, and thus apply the same explicit knowledge in very different ways.

This is true especially when we think of how people communicate and transfer information. For example, when we create a report or a presentation, even if we work with the same data points and results, different people may choose to focus on different pieces of information and tell a very different story.

Last, but not least, is the focus of this article: tacit knowledge. Tacit knowledge refers to the wisdom we accumulate through experience but that is not codified or clearly expressed. These are the things we know but can’t really put into words. Think cognitive skills, mental models, intuition, and general know-how.

Different sources are citing various figures of how knowledge is distirbuted in an organization. From 80% all the way to 95%, tacit knowledge seems to be the bottom of an iceberg, hidden under water. Regardless of what the specific number really is, it’s probably safe to say, that the vast majority of information is tacit.

Tacit Knowledge Pyramid

It’s believed that turning tacit knowledge into explicit knowledge is extremely difficult because of its nature. Many times, when we think we articulate or codify tacit knowledge, we might deal with implicit knowledge instead. Why is it then so hard to capture tacit knowledge — and should we even try to make it explicit?

In practice, people often aren’t aware of the tacit knowledge they possess, and that’s a big part of what makes it so elusive. Transferring know-how and cognitive skills requires regular contact, interaction, and trust between people. When this can be turned into a conscious, systematic effort, that’s when we start to get its value and make the best of it.

The importance of tacit knowledge and how to make the most of it

In the era of information technology, it’s so easy to become obsolete, that retaining and acquiring knowledge has become a central focus for most organizations.

Today most companies recognize employees’ talent and knowledge as a major competitive advantage. We’ll explain later in the article why most innovations and breakthroughs don’t come from explicit, but from tacit knowledge.

Losing employees with the tacit knowledge that hasn’t been passed on can lead to the inability to complete projects or meet strategic targets. For example, an engineering company lost its dominant market position simply because it lost the experienced engineers that major clients were looking for. Typically, that relationship isn’t as obvious, but the same principles still apply. The most talented or experienced employees create dramatically outsized returns for the organization.

As already mentioned, explicit knowledge refers to the public information, which would be easily accessible if desired, because it can be codified and transmitted in writing. As we know, such knowledge generally contributes to incremental improvements, but breakthrough innovations require truly novel knowledge, and that usually starts at an individual level.

From a highly experienced floor worker who comes up with ideas to streamline processes to a researcher’s insights that help develop a new product, the key is to make this individual knowledge available to others. That is one of the main sources of competitive advantage in knowledge-centric companies.

How tacit knowledge impacts organizational performance

Traditionally, knowledge isn’t systematically measured against financial results, so some executives might not be aware of how knowledge loss impacts their performance. It’s understandable, given that it’s easier to measure and track the impact of tangible assets, so the focus usually goes in that direction.

However, nowadays we have plenty of research that supports the idea that losing knowledge has a significant negative impact on an organization’s performance. This helps us better understand how losing tacit knowledge affects the bottom line. At the same time, if leaders can articulate the role of tacit knowledge, they can also assess the real costs of managing it and raise awareness on the investments required to create, retain, and transmit it.

Losing knowledge capital can affect the performance of an organization in different ways.

From reduced organizational capabilities or ability to achieve strategic objectives, to disruptions, increased time to accomplish tasks, increased costs, or reduced customer satisfaction.

Let’s take the example of a company where a veteran sales executive who played a major role in dealing with important customers is leaving the organization. His strong customer relationships developed over the years could affect the firm, leading to a loss of up to $ 10 million. The business will not only lose significant revenue but its ability to acquire new ones will also diminish.

In such cases, the external social capital is useful for the organization at large. Having access to a diverse external network allows people inside the organization to tap into a wide range of information.

On the other side, when these connections are exclusively internal, politics can get in the way and affect the transparent flow of information.

To summarize, losing knowledge capital can affect the performance of an organization in different ways. From reduced organizational capabilities or ability to achieve strategic objectives, to disruptions, increased time to accomplish tasks, increased costs, or reduced customer satisfaction.

On the other hand, if you focus on developing a knowledge-creating company that encourages continuous learning, interaction, and constant dialogue you will see additional benefits, as well as positive impact on the bottom line.

By now, you’re surely thinking what all this theory means in practice, so let’s take a look at that next by going through some methods that can help reap these benefits.

How to capture tacit knowledge

As already mentioned, turning tacit knowledge into explicit knowledge requires some work and effort, but by starting with baby steps like getting people to share thoughts, issues, or ideas on a regular basis you are already one step ahead.

We believe there’s no need to overcomplicate things and the good news is that something as simple as gathering ideas will force people to turn their tacit knowledge into something more tangible. Obviously, each organization has its share of bad ideas, but even so, it’s still a great way of bringing people’s insights to the table because it can uncover new opportunities, sometimes even unrelated with the idea itself.

It might not be the first thing that comes to mind when trying to access tacit knowledge, but an idea management tool can help you turn it into a systematic, continuous practice that on the long run, can lead to more innovation.

Collaboration Unsplash or Pexels

However, at the end of the day, a tool is just a tool. It helps you organize your processes better, automate tasks, and facilitates easy communication. The complexity and nature of such methods and processes varies greatly from one organization to the next.

If you are operating in an industry with higher risks, codifying tacit knowledge becomes even more complicated. A continuous ideation process could reveal new creative ways of accessing it as well as maintain communication and a constant flow of information.

To put things in perspective, let’s take the example of a maintenance technician who retired from a plant that produced soybean oil. After he left, the produced oil quickly started to go bad. It took the company two years and it cost them millions of dollars before they realized that the maintenance worker had been changing a seal on the machines that pressed the oil every week, instead of the eight weeks that was instructed in the maintenance manual.

The first reaction would be to blame the technician for not transferring that information before leaving, but in reality, it’s the company’s responsibility to have in place processes that ensure smooth transfer of information and knowledge.

Managers and leaders should be aware of these differences in procedures and in this particular case the mistake could have been easily avoided with a better process of documenting the steps taken to produce the soybean oil.

As this example shows, different organizations need different processes at various levels of complexity. Developing those processes that support knowledge creation and retention is still up to you, so let’s have a look at three simple steps that can make a big difference.

Bring to the surface the knowledge losses and the risk associated with that. What knowledge supports the strategic objectives and business goals? To run a diagnosis process you could, for example, start with a series of interviews that will help you surface potential issues.
Here’s where you want to identify the critical knowledge that might be lost and its impact, the interviewees perception of existing knowledge and the transfer processes and opportunities to leverage knowledge in case employees leave.
Map the employees and the roles whose knowledge is essential and play a key role in transmitting it. The previous step can also guide you in creating this map or list.
Create the environment and practices that encourage socialization and interaction. Since tacit knowledge is about the know-how and the skills we acquire through experience, these are best learned through emulation, imitation, and repetition.

There are many ways to go about this, and in the best practice section we go a bit deeper into these details.

Best practices for accessing tacit knowledge

These are three first steps that could be applied in any organization, regardless of their profile. They can become the foundation for a more thought-through process which you can develop in time. On a more practical level, the methods and processes you decide on, can be supported by some of these best practices:

Build a continuous improvement culture as it helps to reinforce the social capital.

It encourages contribution and collaboration between people. It enables networks of relationships that help the organization function effectively. When these connections are strong and built on trust and transparency, they facilitate the transfer of know-how and other skills that otherwise would be lost.

Encourage constant social interaction and exchange of ideas

As already mentioned, tacit knowledge is about the know-how and the skills acquired through experience. These skills are better transmitted through emulation, mentorship, and repetition. This knowledge is deeply embedded in people’s minds and human interactions are essential to facilitate the transfer of information.

Make idea generation and collection a systematic process

This won’t help you just to find answers and solutions to specific problems but also to uncover opportunities that have an impact on the entire organization.

Collecting ideas systematically enables the entire workforce to get involved and build on each other’s knowledge. Moving from a traditional “suggestion box” to a more wholistic and transparent approach with an idea management tool can dramatically help in sharing and making knowledge more accessible.

Encourage storytelling in different forms

You can create a “lessons learned” database where people can learn about successes and failures that lead people to acquire their knowledge. The best way to tell these lessons, might be through stories.

Storytelling is a powerful tool because it allows people to reflect on their learnings. Essentially, you want people to share their (true) stories that serve as metaphors which make difficult-to-grasp information easier to digest and understand. Stories are powerful because they convey meaning and knowledge, not just unconnected bits of information. For example, you can put this in practice through internal newsletters, or casebooks.

Create succession planning, retirement policies, and mentoring programs

Retirement is one of the causes of knowledge loss and some companies don’t tap into the tacit knowledge of older employees. The loss of experienced employees can threaten core capabilities that rely on complex experiential knowledge. Organizations should have mentoring programs to train less experienced employees, as well as retirement policies and plans that help maintain the balance of the workforce.

Examples of codifying tacit knowledge:

As you’ve seen so far, there are different factors that can help you either capture tacit knowledge or turn it into explicit knowledge. And as mentioned, sometimes learning new things also comes from emulation and imitation. With that in mind, let’s see what other companies are doing to address the issue of tacit knowledge and think of what you could also learn from their experiences.

Matsushita Electric

The first example is one that helped popularizing the concept of tacit knowledge as well as the idea that it supports innovation.

Kneading Bread Unsplash or Pexels

In 1985 Matsushita Electric, now Panasonic, was working on creating a better home bread-machine. However, they lacked the knowledge a baker had. So Ikuko Tanaka, a software developer at Matsushita decided to learn from the best. He trained with the master baker at The Osaka International Hotel and observed the technique he had for kneading the dough.

The know-how of the baker, his special stretching technique, was the tacit knowledge that Matshushita was lacking, and that Tanaka was able to uncover and reproduce through imitation and observation. After working with the baker, experimenting, testing and developing the product, Matsushita created a final product that led to record sales.

Rolls-Royce

Even though it’s not a recent example Rolls-Royce is still a good case to look into. Rolls-Royce turbojet engines powered Concorde, the aircraft that introduced supersonic air travel to the world. The Rolls-Royce engineers held most of the knowledge on how to maintain the sophisticated supersonic jet engines and many of them were preparing for retirement.

Before the Concorde was retired in 2003 the company identified how the big number of retirements would impact their key capabilities. This helped them prepare for uncertainties and decide on future investments.

Bessemer

Last, but not least, an example that takes us even farther back into the history is Henry Bessemer and his patent for an advanced steelmaking process. Bessemer sold his patent, but he was later sued because they couldn’t make it work. So, Bessemer set up his steel company because he knew best how to do it, even though he wasn’t able to articulate it.

As you can see from these examples, tacit knowledge spans its impact in various areas and at different levels in each organization. So, it’s important to remember that tacit knowledge plays an important role in all stages of innovation.

It can be in the early stages, where there’s a higher degree of ambiguity so more knowledge to be harnessed. Or, it can be in the later stages of innovation, where execution and implementation require you to tap into the tacit knowledge of your employees to speed up the process and get better results

Conclusion

“We can know more than we can tell”, said Polanyi, the one to whom we attribute the concept of tacit knowledge. We couldn’t agree more. We can’t possibly articulate everything we know, so we need to find other means to go about it.

As leaders, managers, or someone with decision-making powers, you have to maximize the opportunities of expressing this knowledge. You can choose to develop a culture of innovation where continuous learning, improvement and knowledge exchange are encouraged and sustained. With a strategic and systematic approach, the flow of information will become more natural and easier to manage.

This article was originally published in Viima’s blog.

Image credits: Viima, Pixabay, Unsplash, Pexels

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Engaging Users in Co-Creation During the Innovation Process

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Engaging Users in Co-Creation During the Innovation Process

GUEST POST from Chateau G Pato

In today’s fast-paced, constantly evolving business environment, innovation has become an imperative rather than a luxury. For companies seeking to stay competitive, the classic model of top-down innovation is increasingly being replaced by more inclusive approaches such as co-creation. By engaging users directly in the innovation process, organizations can not only foster more meaningful relationships but also tap into a wellspring of creative potential that traditional models miss. In this article, I’ll explore the value of user co-creation, provide practical insights on executing it effectively, and highlight two case studies to illustrate its impact.

Why Co-Creation Matters

The shift towards engaging users in co-creation stems from a fundamental realization: who better to inform the creation of new products and services than the people who will eventually use them? Co-creation leverages the collective wisdom of a diverse group, blending customer insights with the company’s expertise. This collaboration can lead to more relevant and innovative advancements, reduce the risk of market failure, and build customer loyalty.

Implementing Co-Creation in the Innovation Process

Step 1: Define the Objectives

Before diving into co-creation, it’s crucial for organizations to set clear objectives. Whether the goal is to refine a product, explore new markets, or enhance customer experience, aligning these objectives with the company’s strategic vision sets the tone for a successful co-creation process.

Step 2: Select the Right Participants

Choosing the right mix of participants is essential. This might include lead users, industry experts, or even forward-thinking customers who can provide unique perspectives. The diversity of the participant pool will enrich the creative output and ensure that multiple viewpoints are considered.

Step 3: Foster an Open Environment

Creating a supportive environment that encourages open communication and the free flow of ideas is fundamental. Employing structured yet flexible brainstorming sessions, design thinking workshops, or hackathons can help harness the collective creativity of participants.

Step 4: Iterate and Prototype

Co-creation is not a one-time event but a continuous process. Iteration is a key component, involving rapid prototyping, user feedback, and subsequent refinements. This approach ensures that the innovation is closely aligned with user needs and expectations.

Step 5: Implementation and Launch

Finally, integrate the outcomes of co-creation into the development and implementation phases. When users see their contributions materialize into tangible products or services, it strengthens their connection to the brand, resulting in increased loyalty and advocacy.

Case Study 1: LEGO Ideas

One of the most compelling examples of successful user engagement in co-creation is LEGO’s ‘LEGO Ideas’ platform. Launched in 2008, the platform allows users to submit their LEGO set designs online. If a proposed set garners sufficient support from the community (10,000 votes), LEGO reviews it for production. This initiative has proven incredibly successful, leading to the commercialization of numerous fan-created sets.

The outcome has been a win-win: fans contribute creatively, seeing their designs come to life, while LEGO benefits from a rich pipeline of ideas and an engaged community of enthusiasts. Through this platform, LEGO effectively harnesses the creativity of its user base, staying relevant and innovative in a competitive market.

Case Study 2: BMW’s Co-Creation Lab

BMW’s Co-Creation Lab provides another insightful case study. The automotive giant launched this online platform to engage users in the development of new vehicle features and concepts. Users are invited to participate in innovation challenges, share ideas, and provide feedback on early-stage designs.

One of the standout outcomes was the creation of BMW ConnectedDrive services, a suite of digital services and apps developed with significant input from users. By directly involving customers in the innovation process, BMW not only tailored its offerings to real consumer needs but also reinforced its image as a customer-centric brand.

Conclusion

As these case studies demonstrate, co-creation can serve as a powerful strategic tool for innovation. Engaging users early and often in the innovation process helps ensure that new products and services are not only innovative but also market-successful. By breaking away from traditional, siloed forms of development and embracing a more collaborative approach, organizations can unlock unparalleled opportunities for growth and transformation.

In summary, the potential of user co-creation is immense. Embracing this inclusive, human-centered approach can redefine the boundaries of what is possible, driving sustainable innovation and creating lasting value for both organizations and consumers alike. Let’s forge ahead, embracing the future of co-created 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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Measuring Innovation Outcomes from Idea to Impact

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Measuring Innovation Outcomes from Idea to Impact

GUEST POST from Art Inteligencia

Innovation is the lifeblood of progress and business success. In a rapidly changing world, the ability to convert novel ideas into tangible results can define the trajectory of an organization. However, bridging the gap from idea inception to impactful outcomes requires more than inspiration. It demands a rigorous approach to measure, manage, and maximize the value of innovation activities.

The Innovation Measurement Conundrum

Innovation, by its nature, is nebulous and unpredictable, often challenging conventional methods of measurement. Traditional business metrics, heavily reliant on past performance, are insufficient for gauging future potential. Recognizing the unique challenges in measuring innovation outcomes, organizations must adopt a tailored assessment approach.

Five Key Dimensions of Innovation Measurement

Idea Generation: Evaluating the quantity and diversity of ideas generated.
Feasibility Assessment: Analyzing the technical and economic viability of ideas.
Development Efficiency: Monitoring the speed and cost-effectiveness of transforming ideas into products or services.
Market Impact: Measuring the uptake, market share, and customer satisfaction regarding the innovation.
Strategic Alignment: Ensuring innovations align with the long-term vision and goals of the organization.

Case Study 1: Tesla’s Electric Vehicle Revolution

Tesla exemplifies how transformative innovation can be methodically measured and interpreted to yield significant competitive advantages. At the heart of Tesla’s success is its rigorous approach to innovation management across various dimensions.

“Tesla’s focus was not just building faster cars but reimagining transportation itself.”

When Tesla embarked on its journey, the idea of electric vehicles (EVs) was met with skepticism. Yet, by leveraging an interlocking innovation strategy, Tesla was able to revolutionize the auto industry.

Key Measurements and Outcomes

Idea Generation: Tesla’s continuous emphasis on research and development, illustrated by its expansive patent portfolio, drove a stream of innovative ideas not just in vehicles but in energy solutions too.
Feasibility Assessment: The Gigafactory was fundamental to producing high-capacity batteries efficiently, rendering the idea of viable EVs more feasible.
Market Impact: As of recent years, Tesla dominates the electric vehicle market, achieving unprecedented valuations and market shares previously deemed unattainable for EVs.
Strategic Alignment: Every innovation, from the Roadster to the Cybertruck, aligns with the core mission of accelerating the world’s transition to sustainable energy.

Tesla’s structured approach to innovation allowed it to not only come up with groundbreaking ideas but also to meticulously track their progress toward strategic success.

Case Study 2: Starbucks’ Digital Transformation

Starbucks, a leader in retail coffee, faced the challenge of adapting to a digital age where customer engagement and convenience became paramount. The company’s innovation in digital engagement provides essential insights into measuring innovation outcomes.

“Transforming from a coffee company to a tech-enabled customer experience leader wasn’t just about the coffee; it was about the connection.”

Key Measurements and Outcomes

Idea Generation: Starbucks continuously invests in technology-centric solutions, driven by a dedicated tech innovation team exploring everything from AI to mobile payment systems.
Feasibility Assessment: A major move was the deployment of mobile order and pay systems after thorough feasibility studies assured integration with existing operations without disrupting service.
Development Efficiency: Swift deployment of these digital services was critical. This rapid rollout required strong cross-functional collaboration and efficient back-end processes.
Market Impact: The introduction of the Starbucks app significantly boosted customer engagement and sales, contributing to over $1 billion in mobile payment transactions in a single quarter.
Strategic Alignment: The innovations have consistently aligned with Starbucks’ strategy of enhancing customer convenience and personalization, reinforcing brand loyalty and market leadership.

Starbucks’ approach highlights the importance of aligning technological innovations with consumer expectations and long-term business strategy, ensuring that each innovation drives meaningful impact.

Conclusion: A Pathway to Impactful Innovation

These case studies illustrate that the key to transitioning from idea to impactful innovation lies in a structured and nuanced measurement strategy. Organizations must not only generate great ideas but also deploy tools and frameworks that evaluate and guide these innovations through various stages, aligning them with strategic imperatives. By focusing on the five dimensions of innovation measurement, businesses can demystify the process of innovation, ensuring its outcomes are both predictable and impactful.

As we journey into the future, the ability to measure innovation outcomes with precision will become a cornerstone of success, enabling companies to adapt, scale, and thrive in an ever-evolving landscape.

This article explores the complex process of measuring innovation outcomes through case studies of Tesla and Starbucks—two companies known for their transformative innovations. The article underscores the importance of a structured measurement approach that spans idea generation, feasibility assessment, development efficiency, market impact, and strategic alignment. The insights from these companies hope to inspire others to adopt comprehensive frameworks to transition from idea to impactful innovation.

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.

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Corporate Social Responsibility as a Catalyst for Innovation

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GUEST POST from Chateau G Pato

In today’s hyper-connected world, businesses face immense scrutiny from stakeholders who demand transparency, sustainability, and ethical practices. Corporate Social Responsibility (CSR) has emerged as a critical framework for organizations seeking to align their operations with these expectations. However, beyond compliance and reputation management, CSR offers a more profound opportunity—it can serve as a catalyst for innovation. Companies that embed CSR into their core strategy often witness not only social and environmental benefits but also innovative breakthroughs that drive business success.

The Intersection of CSR and Innovation

CSR is not merely about philanthropy or fulfilling legal obligations. It is about integrating social and environmental initiatives into a company’s operations and strategy. When organizations leverage CSR as a strategic tool, it creates a fertile ground for innovation by fostering a culture of creativity, collaboration, and continuous improvement. By addressing the pressing social and environmental challenges, companies can uncover new opportunities, develop novel products and services, and even transform entire industries.

“Innovation is the specific instrument of entrepreneurship… the act that endows resources with a new capacity to create wealth.” – Peter Drucker

Case Study 1: Unilever’s Sustainable Living Plan

Unilever, a global consumer goods company, has long been recognized as a pioneer in sustainability and CSR. The introduction of its Sustainable Living Plan in 2010 marked a significant turning point for the company. This strategic initiative aimed to decouple its growth from environmental impact while increasing its positive social impact.

The plan set ambitious targets, including halving the environmental footprint of its products, improving the health and well-being of over a billion people, and enhancing the livelihoods of millions. By embedding these objectives into its core business strategy, Unilever drove innovation across its entire value chain. Products like the compressed deodorant bottles, which use less packaging and emit fewer greenhouse gases, emerged from this commitment to sustainability.

Moreover, the HealthyWater1 program exemplifies how Unilever’s CSR focus led to innovative partnerships and solutions. In collaboration with governments, NGOs, and local communities, Unilever developed and distributed Pureit, a low-cost water purifier, addressing water safety issues in developing regions.

These initiatives illustrate how Unilever’s dedication to CSR sparked innovation, resulting in new product lines and market expansion, benefitting both the company and society.

Case Study 2: Tesla’s Mission-Driven Approach

Tesla, led by visionary entrepreneur Elon Musk, demonstrates how a strong sense of purpose combined with CSR can fuel innovation. Tesla’s mission, to accelerate the world’s transition to sustainable energy, forms the cornerstone of its business strategy, influencing all aspects of its operations, from design to production to end-user experience.

Tesla’s commitment to sustainability has driven technological advancements in electric vehicles (EVs), battery storage systems, and solar energy solutions. The development of affordable and long-range EVs challenged traditional automotive paradigms and sparked industry-wide innovations, pushing competitors to accelerate their electric vehicle plans.

In addition, Tesla’s innovation extends to energy solutions such as the Powerwall and Powerpack, which revolutionize energy storage for homes and businesses. These innovations not only address environmental challenges but also open new revenue streams for the company.

Through its mission-driven CSR approach, Tesla has reshaped the transportation and energy sectors, proving that innovation thrives at the intersection of social responsibility and technological advancement.

Lessons for Forward-Thinking Companies

The journeys of Unilever and Tesla offer valuable lessons for companies seeking to harness CSR as an innovation catalyst:

Embed CSR into Core Strategy: Treat CSR as a business imperative, integrating it into strategic goals rather than viewing it as a separate initiative.
Foster a Culture of Innovation: Encourage creativity, collaboration, and experimentation across all levels of the organization.
Build Strategic Partnerships: Collaborate with diverse stakeholders, including NGOs, governments, and communities, to co-create innovative solutions.
Communicate and Educate: Transparently communicate CSR efforts and educate stakeholders about their impact on society and the environment.

Conclusion

Corporate Social Responsibility is not an abstract concept confined to boardrooms and annual reports; it is a dynamic force capable of driving innovation and generating tangible business results. By aligning with social and environmental goals, companies can unlock a wealth of innovative opportunities that benefit both their bottom line and society at large.

As we move forward in a world increasingly focused on sustainability and ethical practices, let us embrace CSR as a catalyst for innovation, allowing it to guide us toward a prosperous and sustainable future.

Image credit: Pixabay

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The Role of Psychological Safety in Fostering Innovation

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The Role of Psychological Safety in Fostering Innovation

GUEST POST from Art Inteligencia

In the rapidly changing world of business, innovation isn’t just encouraged—it’s essential for survival. Yet, fostering an environment where innovation thrives isn’t merely about investing in the latest technology or having creative job titles. At the foundation of sustained innovation lies a crucial and often overlooked factor: psychological safety.

Psychological safety, a term popularized by Harvard Business School professor Amy Edmondson, refers to a team climate characterized by interpersonal trust and mutual respect, where people are comfortable being themselves. In such an environment, team members feel safe to take risks, voice their ideas, and even fail—all without the fear of repercussion or ridicule. Let’s explore the pivotal role psychological safety plays in enhancing innovation potential within organizations, supported by real-world case studies.

The Science of Psychological Safety

Several studies highlight the profound impact of psychological safety on team performance. When team members feel psychologically safe, they are more likely to engage in learning behaviors—seeking feedback, sharing information, experimenting, and discussing mistakes. These behaviors are the bedrock of an innovative culture, fostering environments where breakthroughs happen and improvements are continuous.

“Innovation is fueled by the ability to connect previously unconnected information and ideas. This happens best when people feel comfortable to express their diverse thoughts without fear.” — Braden Kelley

Case Study 1: Google’s Project Aristotle

Google’s Project Aristotle was a comprehensive research initiative to understand what makes teams effective. After studying over 180 teams, Google discerned that the most successful teams shared a common characteristic—psychological safety.

Teams with high levels of psychological safety were not necessarily composed of all-star players. Instead, their success stemmed from encouraging equal speaking opportunities among team members, empathy towards one another, and valuing diversity of thought. These teams were more innovative and productive. Google now emphasizes psychological safety as a cornerstone of its team-building exercises and leadership training, firmly embedding it into their culture.

Case Study 2: Toyota’s Culture of Continuous Improvement

Toyota is renowned for its continuous improvement methodology, known as Kaizen. A significant contributor to the success of this approach is the cultivation of psychological safety within their teams. Toyota encourages its employees to voice their opinions and suggest improvements without the fear of negative consequences. This approach has led to significant innovations and enhancements in their production processes and has positioned Toyota as a leader in quality and efficiency in the automobile industry.

For example, Toyota’s commitment to psychological safety was evident in their assembly line workers’ empowerment. Workers could stop the production line if they identified a problem, so it could be fixed promptly. This policy not only improved overall quality but also reinforced the value of each worker’s input, thereby driving innovation from all levels of the company.

Creating a Psychologically Safe Environment

Launching into this cultural transformation isn’t merely a top-down directive. It involves cultivating a grass-roots shift and embedding psychological safety into the team’s DNA. Here are several strategies organizations can implement to foster a more psychologically safe environment:

1. Encourage Open Communication

Create an atmosphere where team members feel encouraged to share their ideas and opinions without judgment. Regularly solicit feedback and listen actively to what your team has to say.

2. Demonstrate Vulnerability as a Leader

Leaders should model the behavior they wish to see by admitting their own mistakes and uncertainties. This openness can help set a tone that failing and learning are part of the creative process.

3. Normalize Inclusivity and Diversity

Value and harness the diversity of your team by recognizing the variety of perspectives that members bring. Cultivate an inclusive environment where different viewpoints are appreciated and respected.

4. Provide Constructive Feedback

Deliver feedback that is constructive and focused on improvement rather than personal criticism. Encourage a growth mindset where feedback is viewed as a pathway to better performance and innovation.

5. Encourage Experimentation

Create opportunities for your team to try new ideas in a safe environment. Emphasize learning from what doesn’t work as much as from what does.

Conclusion

In a world where innovation is more critical than ever, creating and nurturing psychologically safe environments has proven to be a key enabler of creative and effective teams. By embracing psychological safety, organizations unlock the full potential of their workforce, allowing for the free exchange of ideas, increased engagement, and transformational innovations. When organizations commit to embedding this principle into their culture, they pave the way for sustainable success and groundbreaking advancements.

Let us champion the charge towards psychological safety and make innovation a cornerstone of our work environments, paving the path towards a brighter, more innovative future.

Image credit: Pixabay

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Bring Newness to Corporate Learning with Gamification

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Bring Newness to Corporate Learning with Gamification

GUEST POST from Janet Sernack

I was first introduced to gamification upon meeting Mario Herger, in 2012, when he was a Senior Innovation Strategist at SAP Labs LLC, in Israel, as a participant in his two-day gamification workshop for Checkpoint Security Software. It was an exciting and exhilarating journey into the playful and innovative world of gamification pioneers such as Farmville, Angry Birds, and BetterWorks. Creatively exploiting the convergence of trends catalyzed by the expansion of the internet, and by the fast pace of exponential technology development making gamification accessible to everyone.

Propelled further by people’s increasing desire to socialize and share ideas and knowledge across the globe. Coupled with their desire to learn and connect in a high-tech world, to be met in ways that also satisfied their aspirational, motivational, and recreational needs, as well as being playful and fun.

The whole notion of making gamification accessible to corporate learning simmered in my mind, for the next ten years, and this is what I have since discovered.

Evolution of the gamification market

In 2012 Gartner predicted that – Gamification combined with other technologies and trends, gamification would cause major discontinuities in innovation, employee performance management, education, personal development, and customer engagement. Further claiming that by 2014, 80% of organizations will have gamified at least one area of their business.

It seems their prediction did not eventuate.

In their Gamification 2020 report, Gartner then predicted that gamification, combined with other emerging trends and technologies, will have a significant impact on:

Innovation
The design of employee performance
The globalization of higher education
The emergence of customer engagement platforms
Gamification of personal development.

It seems this prediction is now an idea whose time has come!

According to Mordor Intelligence – The global gamification market was valued at USD 10.19 million in 2020 and is expected to reach USD 38.42 million by 2026 and grow at a CAGR of 25.10% over the forecast period (2021 – 2026). The exponential growth in the number of smartphones and mobile devices has directly created a vast base for the gamification market.

This growth is also supported by the increasing recognition of making gamification accessible as a methodology to redesign human behavior, in order to induce innovation, productivity, or engagement.

Purpose of gamification

The initial purpose of gamification was to add game mechanics into non-game environments, such as a website, online communities, learning management systems, or business intranets to increase engagement and participation.

The initial goal of gamification was to engage with consumers, employees, and partners to inspire collaboration, sharing, and interaction.

Gamification and corporate learning

The last two years of the coronavirus pandemic caused many industries to deal with their audiences remotely and combined with an urgent need for having the right technologies and tools to:

Reach out to, and connect with, both their employees and customers, in new ways

Acknowledging the range of constraints and restrictions occurring globally we have an opportunity to couple these with the challenges, disconnectedness, isolation, and limitations of our remote and hybrid workplaces.

While many of us are seeking more freedom, fun, play, and adventure, yet, we are still mostly bound to our laptops, TVs, and kitchens, and locked up within the boundaries of our homes, local neighborhoods, and hometowns.

Expanding knowledge, mindsets, behaviors, and skills

At the same time, this period has also created incredible opportunities for expanding our knowledge, and developing new mindsets, behaviors, and skills!

In different ways to help teams and organizations adapt, innovate, and grow through gamification, which increases our adaptability to flow and flourish and drive transformation, within a constantly, exponentially changing, and disruptive workplace.

Benefits of a gamified approach

Companies that have focused on making gamification accessible within their learning programs are reaping the rewards, as recent studies revealed:

The use of mobile applications gamified individually or as a complement to an LMS or e-learning platform has been shown to improve employee productivity by 50% and commitment by 60%.
That 97% of employees over the age of 45 believe that gamification would help improve work.
That 85% of employees are willing to spend more time on training programs with gamified dynamics.

Gamification is finally at an inflection point

The shift from face-to-face and live events to online created an opening for improving the quality of coaching, learning, and training experiences in ways that align with the client’s or organization needs and strategic business goals.

Keeping people and teams connected, engaged, and motivated in the virtual and hybrid workplace for extended periods of time is a key factor in business success.

Atrivity is a platform that empowers employees and channels to learn, develop, and perform better through games have identified eight trends influencing the growth and adoption of gamification including:

Gamification for Digital Events are here to stay, people are time and resource-poor, and will more likely attend a digital event rather than invest time and resources in travelling.
Gamification for Millennials and gen-Z is their new normal, being a generation who have grown up with, and become habitually attuned to Facebook and Instagram.
The start of Virtual Reality and Augmented Reality is speeding up and offers new creative approaches.
Remote onboarding becomes standard as we all adapt to a globalized and diversified work environment.
Gamification helps to reduce hospital strains with emerging telehealth innovations.
Customization of, and access to contents allows us to visit museums, galleries, libraries virtually
Knowledge evaluation metrics have become common proactive through the use of app-based dashboards and scorecards that provide gamified reward and recognition processes
Gamification is an Enterprise “must-have” tactic to attract and retain talent.

Corporate learning is also finally at an inflection point

Innovative new organizations like Roundtable Learning focus on co-creating one-of-a-kind training programs that utilize innovative technologies, reflect the client’s brand, and show measurable business results by enhancing traditional corporate learning practices and embracing more interactive, engaging programs.

This is what ImagineNation™ is collaborating with Binnakle Serious Games to bring newness, creativity and play, experimentation, and learning in gamified ways to enable people and teams to innovate, by making gamification accessible to everyone!

We have integrated technology and co-created a range of blended learning solutions:

Digital and gamified learning experiences for groups and teams.
Playful and experiential learning activities that deliver deep learning outcomes.
Co-creation of customized or bespoke blended learning programs that deliver what they promise.

Making corporate learning accessible, affordable, and scalable

Our aim is to make corporate learning agile, by making gamification accessible, and scalable to everybody, across all time zones, modalities, geographies, and technologies.

Where people have time and space to unlearn, relearn, reskill and upskill by engaging in and interacting with both technology and people:

Understand and learn new innovative processes, concepts, principles, and techniques and feel that their new skills are valued.
Retreat, reflect and explore, discover and navigate new ways of being, thinking, and acting individually and collectively.
Question, challenge the status quo and experiment with new ideas, explore effective collaborative analytical, imaginative, aligned problem-solving and decision-making strategies.
Safely fail without punishment, make and learn from mistakes, to iterate and pivot creative ideas and innovative solutions that really matter.

To meet our client’s short- and long-term learning needs in terms of innovation focus or topic depth and breadth. Through enhancing teaming, teamwork, and collaboration, by offering products and tools that make gamification accessible to suit all peoples learning styles, time constraints, diverse technologies, and cost needs.

Who was I to know that it would take another ten years for making gamification accessible enough to reach a tipping point!

An opportunity to learn more

Find out about our learning products and tools, including The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, starting Tuesday, May 4, 2022.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem focus, human-centric approach, and emergent structure (Theory U) to innovation, and upskill people and teams and develop their future fitness, within your unique context.

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Assemble Your Avengers to Accelerate Your Mission

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The right team will move your innovation effort forward. Here’s how to build it

Assemble Your Avengers to Accelerate Your Mission

BMNT Editor’s note: This is the third in a weekly 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.

GUEST POST from Brian Miller

The surest way to get your innovation practice off the ground is to assemble your Avengers – a diverse team working together to solve hard problems. Here are some ideas for doing it, remembering that while an innovation system encompasses problems, technologies, and ideas – it’s powered by people and their abilities, skills, and knowledge to operate within the right structure, processes, and culture (more here from the first post in this series). Human nature being what it is, it can be challenging to get your team aligned around a different way of working.

No organization can change overnight. There is plenty of research to illustrate how changes in human behavior take time even with the right scaffolding and incentives. Yet a small team can punch way above its weight with the right methods for making progress and tools to measure it.

Once you’ve established why your innovation practice exists and assembled the right team, it’s time to figure out exactly what elements (and people) within your organization need to be connected, when, and where. Do this while increasing the volume of opportunities for the organization and the velocity of learning and progress.

Assemble a minimum viable team

This will look different in each organization that adopts it, but the initial innovation team is typically and intentionally small, somewhere between seven and 14 people, including informal allies. Some have started smaller and been highly successful, like the Defense Logistics Agency Technology Accelerator. However, additional personnel, even those contributing part-time or in their spare time, simply increase the probability of early and transformative wins. This is critical to maintaining buy-in and support from leadership and – just as important – the internal and external customers of the Innovation Pipeline® (e.g., capability developers, end-users).

The senior champion is a General Officer (GO) or the civilian equivalent (Senior Executive Service) unafraid to challenge the status quo – and if they made it to this level of seniority while doing so, they also know precisely how the legacy system works in practice (vice on paper) and they have a strong network to navigate it.
The full-time innovation project leaders (at least two to start) are generalists with a broad and diverse range of experience and networks to draw from. They have always leaned into their job, leaving it better than they found it. They are disciplined yet creative, rigorous yet personable, and are probably seen as a “fast riser” or “up and comer,” despite a reputation for comparatively risky decisions within the legacy execution system.
The part-time problem scoping liaison (at least three to start) are natural collaborators with a growth mindset. These team members are always looking to make improvements wherever they go and seem to find opportunities at every turn. If you ask them for information, they’re forthcoming. Instead of who is it for?, they ask, when do you need it? and what comes next?
A procurement or contracts specialist who is known as the go-to person in your organization and will not shy from the creativity required to be innovative. They get things done faster than their peers, seemingly without breaking a sweat.
Numerous on-call allies with whom you have a personal relationship, who are tired of the status quo and would jump at the chance to stealthily use their expertise to help change organizational performance.

Give them clear responsibilities

— Senior Champion: This is the most important connection to the traditional execution system within your organization. This individual provides top cover for the team, and owns the innovation thesis or purpose driving the innovation practice. The champion also removes barriers and creates workarounds (often via policy or doctrinal exceptions) when the team inevitably runs into a bureaucratic roadblock.

— Innovation Project Leader: Leads individual innovation projects, ushering them through the Innovation Pipeline® from problem sourcing and curation to the scaling of a new capability, like a mini CEO. They will:

Identify and test critical assumptions to validate solutions
Use proven methods for making progress (e.g., Lean Startup, design thinking, beneficiary discovery, minimum viable product testing, root cause analysis, user experience and user interface testing, rapid prototyping)
Rely on proven tools for recording and measuring progress (e.g., Investment Readiness Level, Adoption Readiness Level)
Alert the senior champion if something is stuck and a workaround or exception is needed

— Problem Scoping Liaison: This is a part-time role, performed while the individual is already embedded in offices, divisions, or external organizations served by the innovation system. They are your eyes and ears, working to continuously:

Collect innovation opportunities
Scope innovation projects through a formulaic, easily trained methodology
Recruit the right people to innovation projects based on their relationship to prioritized problems (e.g., end-users, subject matter experts, even saboteurs)

— On-call Allies: Finally, you have your allies, almost like assets planted deep behind enemy lines, waiting for your call. They are essential to achieving that goal of delivering at least one new capability within 15 months. Until your innovation practice has an alluring reputation, you’ll have to recruit these people through personal relationships. The common persona is someone tired of the status quo, with a growth mindset, an intrepreneurial spirit, who has been heroically innovating, and is dying to work within a team of like-minded heroes. Just imagine how the Avengers come together in a Marvel movie. In a way, they simply just find each other. These team members can provide:

IT for security and network integration
Engineering support to evaluate technical feasibility of new capabilities
Legal, policy, and human resources experts for essential advice

Train them

Now, your Avengers need a common framework and language for innovation. Your core team will be moving faster than ever before (and get uncomfortable doing so). They need the innovation basics to ground them in their new world, accelerate collaboration, and reduce the uncertainty associated with innovating. For starters, train them:

How to conduct beneficiary discovery interviews
How to turn assumptions into facts by generating and testing critical hypotheses
How to articulate and properly refine problems that others, without domain knowledge, can understand and contribute to solving (problem curation)
How to identify and recruit a coalition of stakeholders around each problem
The basics of Lean Startup and design thinking

Next, you’ll operationalize the pipeline by generating deal flow in the form of problems, curating them, discovering solutions by testing critical hypotheses, then incubating and transitioning solutions into enduring capabilities.

Image credits: BMNT

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The Innovator’s Mindset

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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.

Image credit: Pixabay

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Design Thinking versus Human-Centered Design

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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:

Empathize
Define
Ideate
Prototype
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.

Image credit: Pexels

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Benchmarking Innovation – Standards and Practices

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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.

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