Category Archives: marketing

How to Design a Horrible, Terrible, No Good, Very Bad User Experience

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How to Design a Horrible, Terrible, No Good, Very Bad User Experience

GUEST POST from Geoffrey A. Moore

Some of you may know that early in my career I taught English at the college level. The freshman writing requirement was always a challenge as textbook publishers struggled valiantly to find some reading material that would actually help students write better. One of their best efforts was an essay titled “How to Write an F Paper.” It turns out we learn better from failure than from success—who knew?

With that thought in mind, and taking liberties with the title of one of my favorite children’s books, I want to review an actual user experience delivered to me by the manufacturer of a luxury automobile. The vehicle itself performs admirably, so kudos to the product engineers. It is the customer experience team that needs to be taken to the woodshed.

Here’s how the experience starts. I get in my car, start it, and back out of my garage, benefiting as always from the rear camera system. The system stays on when I shift into drive until I get onto the road and have gone perhaps fifty yards. At that point, the multimedia display presents the following:

An update is ready for installation on your multimedia system. The following conditions must be agreed to before installation.
(READ NOW) (LATER)

Well, I am driving the car, so I don’t think READ NOW is a very good option. I hit LATER, the screen returns to normal, and I get on with my day. To tell the truth, I forget about the whole experience until the next day when, after backing out of my garage and getting onto the road, I get a replay of the same message. Astoundingly, I am driving my car again, so again I push LATER.

Now, as my spouse will testify, sometimes I am a slow learner, so it is not until the better part of a week has passed that I realize the only time I am going to get this message is the first time I start the car in the morning and have driven around fifty yards. At this point, I decide to pull over and push READ. Here is what I got in reply:

Software update for your infotainment system — In order to read the terms and conditions, please park the vehicle safely, switch off the ignition and apply the parking brake.

Well, as it turns out, the reason I got in my car and drove that first fifty yards is that I actually have someplace I need to get to on time, so the idea of switching off the ignition does not appeal. I go back, push the LATER button (feeling a bit like Neo in the Matrix at this point), sub-vocalize a few choice words for the vendor, and carry on with my day.

I won’t testify as to how many days after I had the same introductory message appear and pushed LATER because you guessed it, I actually had somewhere to go and wanted to arrive there on time. But, one day I had the opportunity to be parking somewhere for a good while, so that day I did not push either button until I got to the lot. (“You can fool some of the people all the time, and all of the people some of the time, but you cannot fool all the people all the time.”) Once parked, I did switch off my ignition and applied the parking brake, and was rewarded with the following messages.

Software update for your installation system

Notes
The installation process requires several minutes and cannot be canceled or closed. Individual functions and buttons in the vehicle are not available for use during the installation or their use is limited. The multimedia display does not support display messages.

In the unlikely event of a technical error during installation, functional restrictions of the multimedia system and the above-mentioned functions may persist and make it necessary to consult a workshop.

This is what happens when you let the legal team review the customer communications text. Fresh from their latest efforts with the Safe Harbor statement from the prior quarter’s earnings call, they are fiercely protecting their enterprise from any and every liability risk. Heartwarming as these words were, they actually felt they were not protection enough because they were followed by:

Warnings

During installation of this update, the multimedia system is not available. In particular, this includes systems such as the navigation system, phone, reversing camera, 360 camera, Active Parking Assist, Remote Parking Assist, PARKTRONIC, and the switch for DYNAMIC SELECT.

There is an increased risk of accident.

Installing the update while operating the vehicle may distract you from the traffic situation.

There is an increased risk of accident.

Carry out the installation

And yes, that last line is a call to action, clearly meant to benefit from the wave of inspiration created by the earlier sentences. My only surprise was that it did not append the phrase “at your own risk.”

Now, to be fair, I did carry out the installation, and it took about seven minutes or so, and it was fine. So again, the product engineers know what they are doing. But where in the name of all that is holy is the customer experience engineering? Who in their right mind would ever want their customers—and remember this is a luxury vehicle with some pretty high-end customers—to go through such an experience? And most importantly, what are the takeaways that will keep us from going down the same path?

Here are three that come to mind:

  1. Design the experience. Work backward from the end in mind, making sure each element is contributing to the desired outcome.
  2. Test the experience. Make this a real-world test, not a lab test. Recruit vehicle owners to participate. Capture their feedback.
  3. Eliminate friction. All hygiene processes entail some amount of friction. In such situations, your job is not to delight your customers here but rather to avoid annoying them. Do so by respecting their time.

In this case, what if the car company had sent me an email first? That could have included all their liability stuff. It also could coach me on when and how to best install the update. Once I replied I had read the stuff, then they could have sent a much simpler message over the multimedia system, or maybe just triggered the download on my behalf when my car was safely in my garage. The point is, there was clearly a better way, and just as clearly, nobody at the car company cared enough to advocate for it.

That’s what I think. What do you think?

Image Credit: Pexels, Geoffrey Moore

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The Trapped Value Playbook

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Creating and Closing Multi-million Dollar Deals

Trapped Value PLaybook

GUEST POST from Geoffrey A. Moore

Dear Readers,

I want to forewarn you that this article is quite long. For those of you who prefer delving into it at your leisure, I’ve arranged for a downloadable version. Happy reading, and I look forward to your insights and discussions in the comments section.

The Concept

Most ROI comes from productivity improvements, and most productivity improvements come from releasing trapped value. The reason is simple. All systems trap value all the time, the only question is, where is it getting trapped today? That is, systems are implemented to help make people more productive than they were, and they do so with varying degrees of success. But to whatever degree that success has been achieved, that simply resets the bar. The old bottlenecks have been addressed, but that just surfaces the new bottlenecks. There is no such thing as a system with no bottlenecks (see Second Law of Thermodynamics 😉), so there is always the opportunity to release trapped value.

Let me give some examples:

  • On a macro scale, much of the trapped value that IT released in the 1980s and 1990s was in the supply chain. The technology that broke through the bottlenecks of communication and coordination included ERP systems for global commerce, the internet for global communications, and client-server infrastructure for standardized universal enablement.
  • In the 2000s attention shifted from the supply chain to the delivery chain with a focus on consumer markets, and especially those that dealt in services and digital goods. Here traditional media, broadcast advertising, and retail distribution, as powerful as they all were, represented massive waste as well as lost opportunity because they could not close the loop with the prospect nor serve them in the moment they were ready to transact. Smart mobile devices, cloud computing, machine learning, predictive analytics, real-time transaction processing, and home delivery were able to close this loop and thereby transform whole swaths of the consumer economy.
  • In the current era, at the macro level, the trapped value of highest priority has shifted back to enterprise markets, in particular those that require professional engagement to deliver products, sales, services, and customer success. Here generative AI and data amalgamation look to be game-changing resources, the former enabling untrained users to interact directly with the most sophisticated IT systems available, the latter feeding those systems with an ever-broadening stream of real-time data and transaction history. The trapped value to be released is tied to the current lack of user empowerment in the moment of engagement. That is, while predictive AI has for some time been able to come up with the right answers, most professionals are unable to access that help in real-time; and while ML and AI could be fed some of the data it craves, much more was trapped in data silos and thus not available in any timely manner. As a consequence, although we have had business intelligence for some time, we have largely been unable to translate it into operational intelligence in a scaled way.

There is one final point to make at the macro level before we transition to major account selling. How does releasing trapped value translate into customer return on investment, and how does that in turn help vendors set a good price? Here’s the deal. If you help your customer release a dollar of trapped value, they are happy to give you a dime. If you ask for fifteen cents, they hesitate, if you ask for twenty cents, they begin to think you’re gouging. So, let’s use ten percent to set our sights if for no other reason than it makes the math easier. The equation is simple. You want a million-dollar deal? Find a way to release ten million dollars of trapped value. You want a ten-million-dollar deal? Find a way to release a hundred million dollars worth. You want a hundred-million-dollar deal? Find a way to release one billion dollars in trapped value. Yes, these are very large numbers, but the larger the target enterprise, the more plausible they become, so this playbook is directed toward the Global 2000 and the public sector, two places where billions of dollars of trapped value are commonplace.

Creating the multi-million-dollar deal

So much for the macro level. Multi-million-dollar don’t happen there. They happen at the level of specific accounts, in specific industries, in specific geographies, at specific points in time. The question we need to answer is, how does trapped value show up locally?

It turns out this is a tough question to answer. After all, it is not as if your prospects haven’t been trying to improve their productivity already. Nonetheless, simply by asking the question from an outsider’s perspective, and by being intellectually curious as to where the real answers might lie, account teams can bring unique value-add to their target customers. Specifically, they can help construct a trapped value map.

A trapped value map is analogous to what oil companies create when their exploration & production divisions are prospecting for petroleum reservoirs. It’s very expensive to come up empty in that business, and so they invest considerably in seismic studies before they commit. By contrast, how many sales interactions have you witnessed where the team, to stick with the oil industry analogy, begins by presenting their drilling history, then demos their oil rigs, and then, because they always want to be closing, asks the prospect when they can get started drilling? They call it “solution selling,” but they don’t even know what the problem is.

Co-creating a trapped-value map

The goal is to co-create this map with your target customer. They are stuck, so they need you to help them get unstuck. But you need them too, not only because they have the domain knowledge as to where the bodies are buried, but also because it is their buy-in that will drive the deal. Both of you need to bring imagination, intellectual curiosity, and attention to detail to this effort because it won’t be easy. Wherever the trapped value is, it is not obvious, or it would have already been detected and dealt with.

One way to start the journey is to begin by just asking people. You want to engage with a cross-section of managers, work teams, and executives. In each case, the dialog is informal, the questions you pose are open-ended. Start with “What is working well?” Be sure to capture their answers because this is the stuff you will likely want to protect. Then move on to, “What is holding you back?” Sometimes they know and can tell you, sometimes they know but are reluctant to tell you, and sometimes you just have to hold up a mirror so they can see it for themselves. Regardless, you need to spend time walking in their shoes, observing what they do, inspecting the way they are using their systems, and just as importantly, how their systems are using them. You need to bring a beginner’s mind and design thinking to develop a fresh perspective that could support taking novel actions. Specifically, you are looking for the intersection of their trapped value with your disruptive innovation, the one that will release the trapped value, the place where you will drill for oil.

To give you a closer look at the work involved, here is an outline for a typical trapped value discovery workshop:

Kickoff

  • Explain the concept of releasing trapped value as the foundation for ROI.
  • Use the example of Amazon Prime as compared with brick-and-mortar retail, or the example of Amazon Web Services as compared with enterprise data centers.
  • Share personal experiences of trapped value—e.g. stuff that gets in the way of you doing your best work or getting things done expeditiously.

Brainstorm trapped-value bottlenecks in your enterprise’s operating model from multiple points of view, including those of:

  • A customer
  • A customer-facing employee
  • An internal-facing employee
  • A partner
  • An investor

Identify bottlenecks in your overall industry’s operating model, examining things like:

  • Resource-consuming regulatory regimes
  • Fragmented installed bases
  • Locked-in customers
  • Process steps that add more cost than value
  • Dropped connections due to latency delay
  • “Brittle” communication mechanisms that cause outages
  • Absence of telemetry and lack of available data
  • Prioritization disconnects leading to poor implementations

Prioritize bottlenecks in terms of potential ROI from removing them:

  • Target the “big rocks”
  • Don’t “major in minors”
  • Don’t try to solve these problems yet
  • Do try to quantify them and put them in rank order

Double-click on the top priority items:

  • Employ a “Five Whys?” approach to begin to get at root causes.
  • Identify “interventions” that could materially improve things.
  • Discuss past attempts that may not have succeeded.
  • Discuss the potential impact a disruptive technology could have
  • Discuss customer examples or war stories that reflect successes.

Summarize and outline next steps.

Sometimes you may find that the trapped value is glaringly obvious, but that might just mean you don’t really understand the trap. In other words, if the right answer is staring everyone in the face, but no one is doing anything about it, then it is likely for some reason there is no permission to pursue it. It may be political, it may be cultural, but intransigent resistance to change is at least part of the problem. Now, do you still want your multi-million-dollar deal? Well then, you not only will have to break the bottleneck at the operational level, you’ll have to solve for the change management problem as well.

That said, keep in mind that your goal at this point is not to solve the problem. Rather, it is to understand it deeply. You are doing diagnosis, not prescription. Eventually, you will convert to prescription, but know that when you do, you will also be capping the size of the deal. That is, one of the barriers to closing a multi-million-dollar deal is to close a million dollar deal instead. Everything has to close eventually, and sometimes the right thing to do is to take the million dollar deal (or the one hundred thousand dollar deal, or even the ten thousand dollar deal) today, and kick the multi-million can down the road. But don’t kid yourself. You don’t get a lot of bites at the apple, and the probability is, once you have set your price envelope, it will not get expanded any time soon.

The trapped value map, by contrast, represents an open-ended narrative, one that can be taken on in chapters, with more to come. At present, we don’t know what the answers will be. Nobody does. We are just assessing whether the problem is material enough to spend the time, talent, and management attention necessary to come up with a feasible solution. Facilitating this assessment is a gift that the account team can bring to the prospect. When conducted with integrity and skill, it positions your company as a trusted advisor, regardless of whether this particular effort bears fruit or not. That’s because you and the customer have been sitting on the same side of the table, working together to co-create something that uniquely describes their challenges in a way that makes them more actionable to address.

Transitioning to the Proposal: Co-creating a V2MOM

A great way to transition from the trapped value map to a full-on proposal is to use the V2MOM framework as a template for getting everyone on the same page. Working one-on-one with your customer sponsor, or in an ideation workshop with a small customer team, address the following:

  • Vision. What is the outcome we are seeking to bring about? Where is the trapped value today? What will things look like once the trapped value has been released? Why is this a big deal?
  • Values. What values get realized if we accomplish our vision? One of these should highlight the financial ROI, but the others can be more qualitative. Will this effort improve our ability to deliver on our mission? Will it help us fulfill one of our brand promises? Will it free our workforce to be more effective? Will it help us recruit and retain the talent we need?
  • Methods. What are all the things we have to get done in order to secure the outcome promised by our vision? The goal here is to describe the whole product, which includes not only whatever products and services are funded by the proposal but also any other deliverables from partners or from the customer team itself that will be required to achieve the desired outcome.
  • Obstacles. For each method in the whole product, what are the challenges we anticipate having to overcome? What is our current thinking about how we will do so?
  • Measures. What are the measures that will confirm we are realizing the outcome promised in our vision? What are the intermediate milestones that will ensure we are progressing toward that goal in a timely fashion?

It is hard to overestimate the positive impact of doing this work with the customer prior to developing a proposal. Not only does it get everyone on the same side of the table, all pulling together, but the level of confidence that the vision can be achieved goes way up, as does the sense of inclusion resulting from simply being heard.

Converting the V2MOM into a formal proposal

Creating major proposals is something account teams do for a living, so we don’t need to address all that here. What is needed, however, is a playbook that constructs that proposal from the outside in rather than from the inside out.

Bad proposals are all about you. They are inside-out presentations and documents that explain what a great company you are, how wonderful your products are, how many references and endorsements you have, why you are so superior to the competition, and why all those bad things they say about you aren’t true. Just remember one thing — nobody cares!

Great proposals, on the other hand, are all about the customer:

  • They start with grounding everyone in the problem to be solved or the opportunity to be captured. They do so in an authentic way that is neither slanted nor self-serving but genuinely positions the customer to make good, if challenging, choices.
  • They “size the prize.” The co-creation team gives its best assessment of the trapped-value costs it seeks to eliminate as well as the unrealized gains it seeks to achieve. Taken together these constitute the targeted ROI and set the 10X mark for positioning a fair price for the solution.
  • They map the solution to the problem, not the other way around. Each plank in the proposal has a clear reason to be, all based on releasing trapped value.
  • They address the whole product, focusing on the sold products and services, but also including both the roles of partners and allies and their responsibilities to the customers themselves, thereby giving the customer a complete picture of what it will take to succeed.
  • They position the proposed solution relative to reference competitors who represent the best alternatives to what is being proposed. These alternatives are honored for what they are. At the same time, the proposal makes clear why they fall short and why what is being proposed is preferable instead.

Building a Stairway to Heaven

Multi-million-dollar deals have grandiose objectives that capture the minds and hearts of visionaries, raise skeptical hackles with pragmatists, and scare the pants off of conservatives. Getting them funded normally requires building a coalition of the willing across all three constituencies. The framework for so doing is called a stairway to heaven.

Here’s the framework:

Capitalizing on Disruption

The point of the framework is that all four steps will play a part in capturing the total ROI from the proposal. Conservative personas will be most interested in the bottom stair, pragmatists under duress, the second one up, pragmatists with options, the third, and visionaries, the topmost. To build the kind of coalition of the willingness necessary to fund a multi-million dollar deal, you meet with as many key stakeholders one-on-one as you can, directing their attention to the stair that is of most interest to them, and showing how the plan will meet their needs, when and where that stair is expected to be addressed, and what measures will verify and validate that this has been achieved.

Conclusion

Freud is famous for saying, “Sometimes a cigar is just a cigar.” The same is true of frameworks. By themselves they achieve nothing. People do all the work. But people can often work at cross purposes not only for each other but for their intended objectives as well. Good frameworks can help them align to be more effective, and with that thought in mind, let me wish you and your team great success.

That’s what I think. What do you think?

Image Credit: Pexels, Geoffrey Moore

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Entrepreneurial Efforts Must Fit with the Brand

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Entrepreneurial Efforts Must Fit with the Brand

GUEST POST from Mike Shipulski

To meet ever-increasing growth objectives, established companies want to be more entrepreneurial. And the thinking goes like this – launch new products and services to create new markets, do it quickly and do it on a shoestring. Do that Lean Startup thing. Build minimum viable prototypes (MVPs), show them to customers, incorporate their feedback, make new MVPs, show them again, and then thoselaunch.

For software products, that may work well, largely because it takes little time to create MVPs, customers can try the products without meeting face-to-face and updating the code doesn’t take all that long. But for products and services that require new hardware, actual hardware, it’s a different story. New hardware takes a long time to invent, a long time to convert into an MVP, a long time to show customers and a long time to incorporate feedback. Creating new hardware and launching quickly in an entrepreneurial way don’t belong in the same sentence, unless there’s no new hardware.

For hardware, don’t think smartphones, think autonomous cars. And how’s that going for Google and the other software companies? As it turns out, it seems that designing hardware and software are different. Yes, there’s a whole lot of software in there, but there’s also a whole lot of new sensor systems (hardware). And, what complicates things further is that it’s all packed into an integrated system of subsystems where the hardware and software must cooperate to make the good things happen. And, when the consequences of a failure are severe, it’s more important to work out the bugs.

And that’s the rub with entrepreneurship and an established brand. For quick adoption, there’s strong desire to leverage the established brand – GM, Ford, BMW – but the output of the entrepreneurial work (new product or service) has to fit with the brand. GM can’t launch something that’s half-baked with the promise to fix it later. Ford can come out with a new app that is clunky and communicates intermittently with their hardware (cars) because it will reflect poorly on all their products. In short, they’ll sell fewer cars. And BMW can’t come out with an entrepreneurial all-electric car that handles poorly and is slow off the start. If they do, they’ll sell fewer cars. If you’re an established company with an established brand, the output of your entrepreneurial work must fit with the established brand.

If you’re a software startup, launch it when it’s half-baked and fix it later, as long as no one will die when it flakes out. And because it’s software, iterate early and often. And, there’s no need to worry about what it will do to the brand, because you haven’t created it yet. But if you’re a hardware startup, be careful not to launch before it’s ready because you won’t be able to move quickly and you’ll be stuck with your entrepreneurial work for longer than you want. Maybe, even long enough to sink the brand before it ever learned to swim. Developing hardware is slow. And developing robust hardware-software systems is far slower.

If you’re an established company with an established brand, tread lightly with that Lean Startup thing, even when it’s just software. An entrepreneurial software product that works poorly can take down the brand, if, of course, your brand stands for robust, predictable, value and safety. And if the entrepreneurial product relies on new hardware, be doubly careful. If it goes belly-up, it will be slow to go away and will put a lot of pressure on that wonderful brand you took so long to build.

If you’re an established brand, it may be best to buy your entrepreneurial products and services from the startups that took the risk and made it happen. That way you can buy their successful track record and stand it on the shoulders of your hard-won brand.

Image credit: Slashgear.com

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Unlocking Trapped Value from the Technology Adoption Lifecycle

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Unlocking Trapped Value from the Technology Adoption Lifecycle

GUEST POST from Geoffrey A. Moore

For some time now I have been making the case that investment decisions, be they made by customers engaging with a new product and vendor or private equity firms backing a new technology and entrepreneur, should begin with finding the intersection between the innovation at hand and a pool of trapped value it can release, thereby creating the return on investment. That said, one of the core principles of investing is called risk-adjusted returns, meaning that the greater the risk you take, the higher the return needs to be. My expertise is in the risks related to technology adoption, where the risk factors change over the course of a new technology’s deployment. With that thought in mind, here is how the trapped value thesis needs to risk-adjust to adapt:

  • Early Market: very high technology adoption risk. The prize here has to be quite large indeed. Typically it will come in one of two forms. For B2B investments, it will be like an oil reservoir that, if tapped correctly, will produce a gusher. Regulated industries have pockets of trapped value all over the place that fit the bill. Also, industries like automotive and real estate, which are restructuring their relationships with dealers and agents, would qualify. By contrast, B2C investments tap into trapped value that looks more like shale oil—no deep pockets, but incredibly broad presence. Media, transportation, and hospitality have funded extraordinary returns for Netflix, Uber, and Airbnb, not because the trapped value was severe but because it was so pervasive. The point is, early-stage venture investing needs to target home-run bets to warrant the risks it takes. Same goes for visionary customers in B2B markets who are the early adopters of these technologies. They are taking on significant risk so they need to be targeting outstanding rewards.
  • Crossing the Chasm: high technology adoption risk, but readily mitigated. The challenge here is that the technology has great potential for any number of use cases but needs some additional support in every case to achieve the desired end result. The chasm-crossing playbook focuses on a single use case in a single industry and geography in order to create a killer “whole product” that nails the use case and to build a coalition of customer references and partner successes that will keep the market growing even as the technology vendor expands into other segments. Here the trapped value should be intense but narrowly confined, designed to meet three critical success factors:
    1. Big enough to matter (it should be able to generate 10X your current year’s billings target)
    2. Small enough to lead (if you crush your plans, you should get 50% segment share)
    3. Good fit with your crown jewels (if you win, nobody is going to displace you).

    As you can see, there is risk here, but it is manageable through market focus and disciplined execution, the key risk reduction factor being how compelling is the customer’s reason to buy.

  • Bowling Alley: modest adoption risk. The challenge here is to expand beyond your first “beachhead” vertical into adjacent use cases with the same segment as well as adjacent segments with the same use case. Part of the source of reduced risk is that you have a working playbook from the first vertical. Much of the source, however, comes from the emergence of local ecosystems of partners who complete the whole product solutions for each use case. These partners make their living supplementing the technology vendor’s product or platform, and their extra talent, domain expertise, and segment focus represent a major risk reduction. As a result, the trapped value rewards have a lower hurdle to clear to garner investor interest and customer buy-in.
  • Tornado: low adoption risk. The risk here is the opposite—getting left behind as the world embraces the shift to a new normal. The trapped value that drives a tornado is released by “killer apps.” These apps may not release the most trapped value, but they represent a sure winner to start with, making the buying decision a no-brainer. The point is, if you want to get any traction in the tornado, you have to lead with a killer app, a no-regrets offering that delivers simple-to-consume rewards and gets everyone onto the new platform. That means the trapped value must be easy to target and the value of releasing it must be obvious to all, especially to the end users who will be the prime beneficiaries.
  • Main Street: very low adoption risk. The primary adoption challenge here is converting conservative end users who simply do not want to switch to yet another new technology. The trapped value now exists in nuisances, little bits of inefficiency that have workarounds but are annoying. From the point of view of productivity, the cost savings from eliminating them are minimal. But in terms of the user experience, as well as customer satisfaction, the impact can be substantial. B2C enterprises spend most of their R&D here focused either on eliminating “hygiene” issues or innovating with new “delighters,” both of which can increase demand, the cornerstone for volume operations success. B2B enterprises use six-sigma analytics to scout their value chains for bottlenecks that increase latency, something that adds risk without adding value, and frustrates even their most loyal customers.

The key takeaway is that there are different kinds of trapped value, each occupying a different sweet spot in the Technology Adoption Life Cycle. As a vendor and potential leader of a go-to-market ecosystem, you must be crystal clear about the kind of trapped value you are targeting, the kind of risk-taking it warrants, and the kinds of solutions that will get the most traction.

That’s what I think. What do you think?

Image Credit: Unsplash

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VC-Backed Firms in Regulated Industries

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The Times They Are A-Changin’

VC-Backed Firms in Regulated Industries

GUEST POST from Geoffrey A. Moore

This week I have had conversations with executive teams of VC-backed firms working in three different regulated industries: Healthcare, Telco, and Financial Services. All of them reported that their sales pipelines were around 3X what they were a year ago. We didn’t dig into why, although I expect that it means the incumbent providers are under increasing pressure to modernize their operating models and streamline their infrastructure models to meet customer demand and pricing pressure.

The reason we did not get to discuss why this is happening is that each of the teams was more focused on how — how do we adapt our playbook to this new development? You might not think an upsurge in demand would be a problem, but all three of these firms are at least an order of magnitude sub-scale to properly address the demands of their target customers. How do you ride such a wave demand without wiping out? How do you scale and not break your company?

Understanding the Dynamics of the Situation

The easiest way to see what is going on here is to examine it through the lens of the Hierarchy of Powers. Here’s how it plays out:

  • Category Power. The category is shifting from resisting the next wave to embracing it, albeit reluctantly, because the status quo is deteriorating, and it is clear something has to change. This leads to the upsurge in RFPs and RFIs that each company is now seeing. Budget is being created whereas before it had to be scrounged. This is great news for each enterprise, but it has its challenges.
  • Company Power. Compared to the Tier 1 prospects each of these companies is targeting, their own is tiny indeed. All of them lack the global reach and depth of personnel their customers require. Nonetheless, these are their most valuable prospects, so they must find a way to engage. That’s the core of the challenge.
  • Market Power. Each company has already focused on a single vertical—that is how they got as far as they have. Now they are going to have to focus even more rigorously in order to control their exposure to too much demand coming at them too fast and too soon. To secure market power, to become the go-to vendor for their category of offer for this vertical, they must prioritize the right subset of prospects and do whatever it takes to get them over the line.
  • Offer Power. This is where each company shines. It is why they are each attracting the attention of companies that a year ago were not returning their calls. Their products, however, are highly complex, and the implementations even more so, so they cannot support runaway growth. Moreover, the regulated industries they serve impose rigorous, one might even say onerous, demands, creating a whole series of hoops to jump through before they can get to the other side. How do you “catch the wave” when the sign on the beach says “proceed with caution”?
  • Execution Power. At the end of the day, this is the crux of the challenge. How can a subscale company with a world-class offer meet the demands of a regulated industry dominated by behemoth enterprises? How should it adapt its playbook?

Adapting the Playbook

Given this change in dynamics, here are the kinds of adaptions that are called for:

  • Control your destiny by narrowing your focus. The key for all three enterprises is to win a handful of Tier 1 accounts that the rest of the industry looks to for best practices. Winning these accounts will establish them as the go-to choice for the industry as a whole. This objective trumps all others, and every organization inside the company needs to reprioritize its workload accordingly.
  • Hold fast to your priorities. This is an internal transformation that requires strict discipline to execute. In the past, it was OK to step off the path to address an impromptu request because the demand for everyone’s time was less insistent. Now it is not. Use weekly commits as a way to make workloads visible, and intervene whenever they are drifting off course.
  • Stay very focused on your top-tier target accounts. Every one of them is a priority, even when they may not be giving you all the reception you want. Conversely, all other prospects are a distraction even when they are inviting you in.
  • Continue to serve your existing customer base. These are not the Tier 1 players we are targeting, but they are references that can help win those accounts. In addition, they are the early adopters who put their faith in you. You must do right by them.
  • Align with a big friend. Your target customers need you to bring many more resources to the table than you have inside your company. The good news is that these same customers work with global service providers who specialize in helping them on-board next-generation offers. You need to secure strong support from at least one of these, and you probably cannot easily support more than one, so pick one you think you can trust, and go all in with them on your go-to-market planning.
  • Let the big friend help you clear your regulatory hurdles. Time is your scarcest resource, and unfortunately, regulated industries are not good at moving swiftly. It’s a mismatch in operating models. VC-backed companies take risks to save time; regulated industries take time to reduce risk. This is not something you are well positioned to deal with. Global services firms, on the other hand, already have relationships with the regulatory authorities you must interface with, not to mention the bandwidth to work through the mandated processes. Do whatever you can to get their help in expediting whatever needs to be done.
  • Create the solution playbook that you and your GSI friend will co-deliver. Do not let the GSI take over the implementation. You know a lot more about what it takes to make your solution work than they do. But you can make sure that the work is profitable for them by giving them the playbook and letting them bill for their time. You don’t need the services revenue anywhere near as much as you need the Tier 1 account win.
  • Defer inbound requests that take you off strategy. You don’t have to say no. You just have to say, not yet. Given the amount of stress that any Tier 1 engagement will put on your firm, taking even one account that is off-script risks breaking your camel’s back.
  • Defer inbound interest around an acquisition. You are at an inflection point in value creation that is potentially extraordinary, the very outcome you and your investors have been preparing for. This is not the time to let go of the reins, particularly if they are going to get handed to an established enterprise whose culture is likely to clash with yours. Moreover, you cannot afford the distraction of all the due diligence that M&A discussions necessarily entail. M&A cannot solve your Tier 1 problem. You have to do that yourself.

Now, to be clear, there are exceptions that could overrule any one of the prescriptions above, so each team needs to review them in light of its own history and circumstances. The key point is that when the market is shifting from a state of scarcity to one of abundance, there is a short time window to catch that wave. The large competitors cannot move fast enough to do this themselves — that is why they are interested in making an acquisition. You are agile enough to do so, but you are painfully subscale — hence the need for the somewhat drastic prescriptions above. Navigating this part of the journey is tricky, but if you stay focused on winning (and keeping!) a handful of Tier 1 accounts, you are making the best bet.

That’s what I think. What do you think?

Image Credit: Google Gemini

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Why We Love to Hate Chatbots

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Why We Love to Hate Chatbots

GUEST POST from Shep Hyken

More and more, brands are starting to get the chatbot “thing” right. AI is improving, and customers are realizing that a chatbot can be a great first stop for getting quick answers or resolving questions. After all, if you have a question, don’t you want it answered now?

In a recent interview, I was asked, “What do you love about chatbots?” That was easy. Then came the follow-up question, “What do you hate about chatbots?” Also easy. The truth is, chatbots can deliver amazing experiences. They can also cause just as much frustration as a very long phone hold. With that in mind, here are five reasons to love (and hate) chatbots:

Why We Love Chatbots

  1. 24/7 Availability: Chatbots are always on. They don’t sleep. Customers can get help at any time, even during holidays.
  2. Fast Response: Instant answers to simple questions, such as hours of operation, order status and basic troubleshooting, can be provided with efficiency and minimal friction.
  3. Customer Service at Scale: Once you set up a chatbot, it can handle many customers at once. Customers won’t have to wait, and human agents can focus on more complicated issues and problems.
  4. Multiple Language Capabilities: The latest chatbots are capable of speaking and typing in many different languages. Whether you need global support or just want to cater to different cultures in a local area, a chatbot has you covered.
  5. Consistent Answers: When programmed properly, a chatbot delivers the same answers every time.

Chatbots Shep Hyken Cartoon

Why We Hate Chatbots

  1. AI Can’t Do Everything, but Some Companies Think It Can: This is what frustrates customers the most. Some companies believe AI and chatbots can do it all. They can’t, and the result is frustrated customers who will eventually move on to the competition.
  2. A Lack of Empathy: AI can do a lot, but it can’t express true emotions. For some customers, care, empathy and understanding are more important than efficiency.
  3. Scripted Retorts Feel Robotic: Chatbots often follow strict guidelines. That’s actually a good thing, unless the answers provided feel overly scripted and generic.
  4. Hard to Get to a Human: One of the biggest complaints about chatbots is, “I just want to talk to a person.” Smart companies make it easy for customers to leave AI and connect to a human.
  5. There’s No Emotional Connection to a Chatbot: You’ll most likely never hear a customer say, “I love my chatbot.” A chatbot won’t win your heart. In customer service, sometimes how you make someone feel is more important than what you say.

Chatbots are powerful tools, but they are not a replacement for human connection. The best companies use AI to enhance support, not replace it. When chatbots handle the routine issues and agents handle the more complex and human moments, that’s when customer experience goes from efficient to … amazing.

Image credits: Unsplash

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Win Your Way to an AI Job

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Anduril’s AI Grand Prix: Racing for the Future of Work

LAST UPDATED: January 28, 2026 at 2:27 PM

Anduril's AI Grand Prix: Racing for the Future of Work

GUEST POST from Art Inteligencia

The traditional job interview is an antiquated artifact, a relic of a bygone industrial era. It often measures conformity, articulateness, and cultural fit more than actual capability or innovative potential. As we navigate the complexities of AI, automation, and rapid technological shifts, organizations are beginning to realize that to find truly exceptional talent, they need to look beyond resumes and carefully crafted answers. This is where companies like Anduril are not just iterating but innovating the very hiring process itself.

Anduril, a defense technology company known for its focus on AI-driven systems, recently announced its AI Grand Prix — a drone racing contest where the ultimate prize isn’t just glory, but a job offer. This isn’t merely a marketing gimmick; it’s a profound statement about their belief in demonstrated skill over credentialism, and a powerful strategy for identifying talent that can truly push the boundaries of autonomous systems. It epitomizes the shift from abstract evaluation to purposeful, real-world application, emphasizing hands-on capability over theoretical knowledge.

“The future of hiring isn’t about asking people what they can do; it’s about giving them a challenge and watching them show you.”

— Braden Kelley

Why Challenge-Based Hiring is the New Frontier

This approach addresses several critical pain points in traditional hiring:

  • Uncovering Latent Talent: Many brilliant minds don’t fit the mold of elite university degrees or polished corporate careers. Challenge-based hiring can surface individuals with raw, untapped potential who might otherwise be overlooked.
  • Assessing Practical Skills: In fields like AI, robotics, and advanced engineering, theoretical knowledge is insufficient. The ability to problem-solve under pressure, adapt to dynamic environments, and debug complex systems is paramount.
  • Cultural Alignment Through Action: Observing how candidates collaborate, manage stress, and iterate on solutions in a competitive yet supportive environment reveals more about their true cultural fit than any behavioral interview.
  • Building a Diverse Pipeline: By opening up contests to a wider audience, companies can bypass traditional biases inherent in resume screening, leading to a more diverse and innovative workforce.

Beyond Anduril: Other Pioneers of Performance-Based Hiring

Anduril isn’t alone in recognizing the power of real-world challenges to identify top talent. Several other forward-thinking organizations have adopted similar, albeit varied, approaches:

Google’s Code Jam and Hash Code

For years, Google has leveraged competitive programming contests like Code Jam and Hash Code to scout for software engineering talent globally. These contests present participants with complex algorithmic problems that test their coding speed, efficiency, and problem-solving abilities. While not always directly leading to a job offer for every participant, top performers are often fast-tracked through the interview process. This allows Google to identify engineers who can perform under pressure and think creatively, rather than just those who can ace a whiteboard interview. It’s a prime example of turning abstract coding prowess into a tangible demonstration of value.

Kaggle Competitions for Data Scientists

Kaggle, now a Google subsidiary, revolutionized how data scientists prove their worth. Through its platform, companies post real-world data science problems—from predicting housing prices to identifying medical conditions from images—and offer prize money, and often, connections to jobs, to the teams that develop the best models. This creates a meritocracy where the quality of one’s predictive model speaks louder than any resume. Many leading data scientists have launched their careers or been recruited directly from their performance in Kaggle competitions. It transforms theoretical data knowledge into demonstrable insights that directly impact business outcomes.

The Human Element in the Machine Age

What makes these initiatives truly human-centered? It’s the recognition that while AI and automation are transforming tasks, the human capacity for ingenuity, adaptation, and critical thinking remains irreplaceable. These contests aren’t about finding people who can simply operate machines; they’re about finding individuals who can teach the machines, design the next generation of algorithms, and solve problems that don’t yet exist. They foster an environment of continuous learning and application, perfectly aligning with the “purposeful learning” philosophy.

The Anduril AI Grand Prix, much like Google’s and Kaggle’s initiatives, de-risks the hiring process by creating a performance crucible. It’s a pragmatic, meritocratic, and ultimately more effective way to build the teams that will define the next era of technological advancement. As leaders, our challenge is to move beyond conventional wisdom and embrace these innovative models, ensuring we’re not just ready for the future of work, but actively shaping it.

Anduril Fury

Frequently Asked Questions

What is challenge-based hiring?

Challenge-based hiring is a recruitment strategy where candidates demonstrate their skills and problem-solving abilities by completing a real-world task, project, or competition, rather than relying solely on resumes and interviews.

What are the benefits of this approach for companies?

Companies can uncover hidden talent, assess practical skills, observe cultural fit in action, and build a more diverse talent pipeline by focusing on demonstrable performance.

How does this approach benefit candidates?

Candidates get a fair chance to showcase their true abilities regardless of traditional credentials, gain valuable experience, and often get direct access to influential companies and potential job offers based purely on merit.
To learn more about transforming your organization’s talent acquisition strategy, reach out to explore how human-centered innovation can reshape your hiring practices.

Image credits: Wikimedia Commons, Google Gemini

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Reimagining Personalization

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Reimagining Personalization

GUEST POST from Geoffrey A. Moore

Personalization was one of the leading rationales for companies investing in digitalization. The idea was that you were going to delight your customers by proactively offering them goods and services they were predisposed to want. This would create customer loyalty, increase their lifetime value, spur word-of-mouth endorsement, drive up Net Promoter Scores (NPS), and solve world hunger.

OK, not so much. A decade or more in, it’s time we ask ourselves, what is the real value of personalization, and how should we allocate our future investments in it? This begins with getting ourselves onto the right playing field in the first place. Personalization has different dynamics depending on whether your enterprise is Business to Consumer (B2C), Business to Business (B2B), B2B2C or B2G2C. Here’s how it plays out.

B2C

Let’s face it — as consumers, we are tired of personalization in its current form. It isn’t really personal, it is just an unending barrage of re-targeted advertising that works statistically but not psychologically. Despite all its promises to the contrary, it is not in fact delightful. So, best to take all that language about delighting our customers and throw it in the trashcan.

Instead of looking for delighters, we should be examining our hygiene factors. These are the things that annoy customers most when they go awry — late shipping, lost luggage, long hold times, rejected passwords, tedious surveys — you name it. Getting hygiene right is hard, but doing so consistently drives brand loyalty through the roof — just ask Amazon. We love what they do so much we subscribe to them! The point is, the things we love are not personal, they are institutional. Amazon has invested enormously in systems that set expectations through timely communication, early anomaly detection, instant alerts, and the like. This is not marketing, it’s logistics, but it is personally delivered, and we feel empowered in a highly differentiated way. (BTW, note to Amazon — you are increasingly over-monetizing your landing pages with sponsored ads, thereby eroding your most valuable asset. You need to set limits and stick to them.)

B2B2C

Rethinking personalization creates a whole new wave of innovation for B2B2C companies to pursue. Instead of optimizing for clicks, help your customers better detect signals. To be fair, some of these could be buying signals, and they should be used to drive consumer traffic along existing lines. But machine learning is also extremely effective at monitoring hygiene factors wherever there is log data to exploit. Omniture was an early pioneer in using this technology for website optimization, and now with generative AI you can let your customers’ websites ask visitors what they are interested in seeing instead of playing whack-a-mole with their best guesses.

The point is, no company is happy with their website, ever — and frankly, for good reason. They are just too hard to navigate, too much about themselves, not enough about the customers and prospects they are there to serve. By focusing on hygiene factors rather than delighters, this can be changed.

B2G2C

OK, when it comes to dealing with government services, no one is really thinking about delighters. Nightmares, on the other hand, do come to mind. Once again, it’s all about hygiene factors. The services that are being offered meet real needs. It’s the obstacles that systems and bureaucracies put in the way of citizens seeking those services that drive everyone crazy.

The fastest way to cut through this mess is to embrace the adage Time is money. The goal is to relentlessly optimize for reducing latency while at the same time reducing fraud as well. This requires the very best in ML and AI, but those resources are available today, and there are plenty of socially minded entrepreneurs who are ready to put in the hard work to make them scale. The core metric of success is time to closure, the tracking of which will be no mean feat. One consequence of its success, to be frank, would be a reduction in bureaucratic employment — not just to free up more money for social services but rather to expedite transaction processing throughout the system. My hope would be that impacted agencies could redeploy their workforces into the field where face-to-face personal interaction actually can make a powerful difference in the moment.

B2B

One question that bugs the you-know-what out of CEOs of successful global enterprises is, Why do our customers keep telling us we are hard to do business with? Of course, the answer is because they are. The real question is what can they do about it? Here are some low-hanging-fruit places to start:

  • Disintermediate your salespeople from replenishment transactions. Instead, empower customers to transact on their own behalf through digital self-service portals. And extend the same courtesy to partners who are acting as agents on behalf of their customers.
  • Attack the long tail of your SKUs. Not only do they entangle your salespeople in majoring in minors, they confuse the heck out of your customers.
  • Stop imposing buying risks on your customers and take them upon yourself instead by tokenizing bundles to allow for swapping out unconsumed portions and truing up on overused ones.
  • Invest in customer success initiatives that build relationships higher up in the customer organization, leveraging thought leadership marketing, customer health scoring, and executive sponsors focused on deep listening. Customers can tell you what they really need from you if you’ll let them.

Here as elsewhere, the goal is not to delight the customer. Customers don’t want to be delighted. They want to be served – thoughtfully, reliably, and economically. Remember, it’s not about you. It’s about them.

That’s what I think. What do you think?

Image Credit: Pexels

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Top 40 Innovation Authors of 2025

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Top 40 Innovation Authors of 2025After a week of torrid voting and much passionate support, along with a lot of gut-wrenching consideration and jostling during the judging round, I am proud to announce your Top 40 Innovation Authors of 2025:

  1. Robyn Bolton
    Robyn BoltonRobyn M. Bolton works with leaders of mid and large sized companies to use innovation to repeatably and sustainably grow their businesses.
    .
  2. Greg Satell
    Greg SatellGreg Satell is a popular speaker and consultant. His first book, Mapping Innovation: A Playbook for Navigating a Disruptive Age, was selected as one of the best business books in 2017. Follow his blog at Digital Tonto or on Twitter @Digital Tonto.
  3. Janet Sernack
    Janet SernackJanet Sernack is the Founder and CEO of ImagineNation™ which provides innovation consulting services to help organizations adapt, innovate and grow through disruption by challenging businesses to be, think and act differently to co-create a world where people matter & innovation is the norm.
  4. Mike Shipulski
    Mike ShipulskiMike Shipulski brings together people, culture, and tools to change engineering behavior. He writes daily on Twitter as @MikeShipulski and weekly on his blog Shipulski On Design.
  5. Pete Foley
    A twenty-five year Procter & Gamble veteran, Pete has spent the last 8+ years applying insights from psychology and behavioral science to innovation, product design, and brand communication. He spent 17 years as a serial innovator, creating novel products, perfume delivery systems, cleaning technologies, devices and many other consumer-centric innovations, resulting in well over 100 granted or published patents. Find him at pete.mindmatters@gmail.com
  6. Geoffrey A. Moore
    Geoffrey MooreGeoffrey A. Moore is an author, speaker and business advisor to many of the leading companies in the high-tech sector, including Cisco, Cognizant, Compuware, HP, Microsoft, SAP, and Yahoo! Best known for Crossing the Chasm and Zone to Win with the latest book being The Infinite Staircase. Partner at Wildcat Venture Partners. Chairman Emeritus Chasm Group & Chasm Institute
  7. Shep Hyken
    Shep HykenShep Hyken is a customer service expert, keynote speaker, and New York Times, bestselling business author. For information on The Customer Focus™ customer service training programs, go to www.thecustomerfocus.com. Follow on Twitter: @Hyken
  8. David Burkus
    David BurkusDr. David Burkus is an organizational psychologist and best-selling author. Recognized as one of the world’s leading business thinkers, his forward-thinking ideas and books are helping leaders and teams do their best work ever. David is the author of five books about business and leadership and he’s been featured in the Wall Street Journal, Harvard Business Review, CNN, the BBC, NPR, and more. A former business school professor turned sought-after international speaker, he’s worked with organizations of all sizes and across all industries.
  9. John Bessant
    John BessantJohn Bessant has been active in research, teaching, and consulting in technology and innovation management for over 25 years. Today, he is Chair in Innovation and Entrepreneurship, and Research Director, at Exeter University. In 2003, he was awarded a Fellowship with the Advanced Institute for Management Research and was also elected a Fellow of the British Academy of Management. He has acted as advisor to various national governments and international bodies including the United Nations, The World Bank, and the OECD. John has authored many books including Managing innovation and High Involvement Innovation (Wiley). Follow @johnbessant
  10. Braden Kelley
    Braden KelleyBraden Kelley is a Human-Centered Experience, Innovation and Transformation consultant at HCL Technologies, a popular innovation speaker, workshop leader, and creator of the FutureHacking™ methodology. He is the author of Stoking Your Innovation Bonfire from John Wiley & Sons and Charting Change from Palgrave Macmillan. Follow him on Linkedin, Twitter, Facebook, or Instagram.

  11. Art Inteligencia
    Art InteligenciaArt Inteligencia is the lead futurist at Inteligencia Ltd. He is passionate about content creation and thinks about it as more science than art. Art travels the world at the speed of light, over mountains and under oceans. His favorite numbers are one and zero.
  12. Stefan Lindegaard
    Stefan LindegaardStefan Lindegaard is an author, speaker and strategic advisor. His work focuses on corporate transformation based on disruption, digitalization and innovation in large corporations, government organizations and smaller companies. Stefan believes that business today requires an open and global perspective, and his work takes him to Europe, North and South America, Africa and Asia.
  13. Dainora Jociute
    Dainora JociuteDainora (a.k.a. Dee) creates customer-centric content at Viima. Viima is the most widely used and highest rated innovation management software in the world. Passionate about environmental issues, Dee writes about sustainable innovation hoping to save the world – one article at the time.
  14. Teresa Spangler
    Teresa SpanglerTeresa Spangler is the CEO of PlazaBridge Group has been a driving force behind innovation and growth for more than 30 years. Today, she wears multiple hats as a social entrepreneur, innovation expert, growth strategist, author and speaker (not to mention mother, wife, band-leader and so much more). She is especially passionate about helping CEOs understand and value the role human capital plays in innovation, and the impact that innovation has on humanity; in our ever-increasing artificial/cyber world.
  15. Soren Kaplan
    Soren KaplanSoren Kaplan is the bestselling and award-winning author of Leapfrogging and The Invisible Advantage, an affiliated professor at USC’s Center for Effective Organizations, a former corporate executive, and a co-founder of UpBOARD. He has been recognized by the Thinkers50 as one of the world’s top keynote speakers and thought leaders in business strategy and innovation.
  16. Diana Porumboiu
    Diana PorumboiuDiana heads marketing at Viima, the most widely used and highest rated innovation management software in the world, and has a passion for innovation, and for genuine, valuable content that creates long-lasting impact. Her combination of creativity, strategic thinking and curiosity has helped organisations grow their online presence through strategic campaigns, community management and engaging content.
  17. Steve Blank
    Steve BlankSteve Blank is an Adjunct Professor at Stanford and Senior Fellow for Innovation at Columbia University. He has been described as the Father of Modern Entrepreneurship, credited with launching the Lean Startup movement that changed how startups are built; how entrepreneurship is taught; how science is commercialized, and how companies and the government innovate.
  18. Jesse Nieminen
    Jesse NieminenJesse Nieminen is the Co-founder and Chairman at Viima, the best way to collect and develop ideas. Viima’s innovation management software is already loved by thousands of organizations all the way to the Global Fortune 500. He’s passionate about helping leaders drive innovation in their organizations and frequently writes on the topic, usually in Viima’s blog.
  19. Robert B Tucker
    Robert TuckerRobert B. Tucker is the President of The Innovation Resource Consulting Group. He is a speaker, seminar leader and an expert in the management of innovation and assisting companies in accelerating ideas to market.
  20. Dennis Stauffer
    Dennis StaufferDennis Stauffer is an author, independent researcher, and expert on personal innovativeness. He is the founder of Innovator Mindset LLC which helps individuals, teams, and organizations enhance and accelerate innovation success. by shifting mindset. Follow @DennisStauffer

    21. Accelerate your change and transformation success

  21. Arlen Meyers
    Arlen MyersArlen Meyers, MD, MBA is an emeritus professor at the University of Colorado School of Medicine, an instructor at the University of Colorado-Denver Business School and cofounding President and CEO of the Society of Physician Entrepreneurs at www.sopenet.org. Linkedin: https://www.linkedin.com/in/ameyers/
  22. Phil McKinney
    Phil McKinneyPhil McKinney is the Author of “Beyond The Obvious”​, Host of the Killer Innovations Podcast and Syndicated Radio Show, a Keynote Speaker, President & CEO CableLabs and an Innovation Mentor and Coach.
  23. Ayelet Baron
    Ayelet BaronAyelet Baron is a pioneering futurist reminding us we are powerful creators through award winning books, daily blog and thinking of what is possible. Former global tech executive who sees trust, relationships and community as our building blocks to a healthy world.
  24. Scott Anthony
    Scott AnthonyScott Anthony is a strategic advisor, writer and speaker on topics of growth and innovation. He has been based in Singapore since 2010, and currently serves at the Managing Director of Innosight’s Asia-Pacific operations.
  25. Leo Chan
    Leo ChanLeo is the founder of Abound Innovation Inc. He’s a people and heart-first entrepreneur who believes everyone can be an innovator. An innovator himself, with 55 US patents and over 20 years of experience, Leo has come alongside organizations like Chick-fil-A and guided them to unleash the innovative potential of their employees by transforming them into confident innovators.
  26. Rachel Audige
    Rachel AudigeRachel Audige is an Innovation Architect who helps organisations embed inventive thinking as well as a certified Systematic Inventive Thinking Facilitator, based in Melbourne.
  27. Paul Sloane
    Paul SloanePaul Sloane writes, speaks and leads workshops on creativity, innovation and leadership. He is the author of The Innovative Leader and editor of A Guide to Open Innovation and Crowdsourcing, both published by Kogan-Page.
  28. Ralph Christian Ohr
    Ralph OhrDr. Ralph-Christian Ohr has extensive experience in product/innovation management for international technology-based companies. His particular interest is targeted at the intersection of organizational and human innovation capabilities. You can follow him on Twitter @Ralph_Ohr.
  29. Dean and Linda Anderson
    Dean and Linda AndersonDr. Dean Anderson and Dr. Linda Ackerman Anderson lead BeingFirst, a consultancy focused on educating the marketplace about what’s possible in personal, organizational and community transformation and how to achieve them. Each has been advising clients and training professionals for more than 40 years.
  30. Howard Tiersky
    Howard TierskyHoward Tiersky is an inspiring and passionate speaker, the Founder and CEO of FROM, The Digital Transformation Agency, innovation consultant, serial entrepreneur, and the Wall Street Journal bestselling author of Winning Digital Customers: The Antidote to Irrelevance. IDG named him one of the “10 Digital Transformation Influencers to Follow Today”, and Enterprise Management 360 named Howard “One of the Top 10 Digital Transformation Influencers That Will Change Your World.”

  31. Chateau G Pato
    Chateau G PatoChateau G Pato is a senior futurist at Inteligencia Ltd. She is passionate about content creation and thinks about it as more science than art. Chateau travels the world at the speed of light, over mountains and under oceans. Her favorite numbers are one and zero.
  32. Shilpi Kumar
    Shilpi KumarShilpi Kumar an inquisitive researcher, designer, strategist and an educator with over 15 years of experience, who truly believes that we can design a better world by understanding human behavior. I work with organizations to identify strategic opportunities and offer user-centric solutions.
  33. Anthony Mills
    Anthony MillsAnthony Mills is the Founder & CEO of Legacy Innovation Group (www.legacyinnova.com), a world-leading strategic innovation consulting firm working with organizations all over the world. Anthony is also the Executive Director of GInI – Global Innovation Institute (www.gini.org), the world’s foremost certification, accreditation, and membership organization in the field of innovation. Anthony has advised leaders from around the world on how to successfully drive long-term growth and resilience through new innovation. Learn more at www.anthonymills.com. Anthony can be reached directly at anthony@anthonymills.com.
  34. Paul Hobcraft
    Paul HobcraftPaul Hobcraft runs Agility Innovation, an advisory business that stimulates sound innovation practice, researches topics that relate to innovation for the future, as well as aligning innovation to organizations core capabilities. Follow @paul4innovating
  35. Jorge Barba
    Jorge BarbaJorge Barba is a strategist and entrepreneur, who helps companies build new puzzles using human skills. He is a global Innovation Insurgent and author of the innovation blog www.Game-Changer.net
  36. Douglas Ferguson
    Douglas FergusonDouglas Ferguson is an entrepreneur and human-centered technologist. He is the founder and president of Voltage Control, an Austin-based change agency that helps enterprises spark, accelerate, and sustain innovation. He specializes in helping teams work better together through participatory decision making and design inspired facilitation techniques.
  37. Jeffrey Phillips
    Jeffrey Phillips has over 15 years of experience leading innovation in Fortune 500 companies, federal government agencies and non-profits. He is experienced in innovation strategy, defining and implementing front end processes, tools and teams and leading innovation projects. He is the author of Relentless Innovation and OutManeuver. Jeffrey writes the popular Innovate on Purpose blog. Follow him @ovoinnovation
  38. Alain Thys
    Alain ThysAs an experience architect, Alain helps leaders craft customer, employee and shareholder experiences for profit, reinvention and transformation. He does this through his personal consultancy Alain Thys & Co as well as the transformative venture studio Agents of A.W.E. Together with his teams, Alain has influenced the experience of over 500 million customers and 350,000 employees. Follow his blog or connect on Linkedin.
  39. Bruce Fairley
    Bruce FairleyBruce Fairley is the CEO and Founder of The Narrative Group, a firm dedicated to helping C-Suite executives build enterprise value. Through smart, human-powered digital transformation, Bruce optimizes the business-technology relationship. His innovative profit over pitfalls approach and customized programs are part of Bruce’s mission to build sustainable ‘best-future’ outcomes for visionary leaders. Having spearheaded large scale change initiatives across four continents, he and his skilled, diverse team elevate process, culture, and the bottom line for medium to large firms worldwide.
  40. Tom Stafford
    Tom StaffordTom Stafford studies learning and decision making. His main focus is the movement system – the idea being that if we can understand the intelligence of simple actions we will have an excellent handle on intelligence more generally. His research looks at simple decision making, and simple skill learning, using measures of behaviour informed by the computational, robotics and neuroscience work done in the wider group.

If your favorite didn’t make the list, then next year try to rally more votes for them or convince them to increase the quality and quantity of their contributions.

Our lists from the ten previous years have been tremendously popular, including:

Top 40 Innovation Bloggers of 2015
Top 40 Innovation Bloggers of 2016
Top 40 Innovation Bloggers of 2017
Top 40 Innovation Bloggers of 2018
Top 40 Innovation Bloggers of 2019
Top 40 Innovation Bloggers of 2020
Top 40 Innovation Bloggers of 2021
Top 40 Innovation Bloggers of 2022
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Top 40 Innovation Bloggers of 2024

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Making Empathy Your Secret Weapon

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Making Empathy Your Secret WeaponGUEST POST from Greg Satell

When I first moved to Kyiv about 20 years ago, I met my friend Pavlo, who is from Belarus. Eventually our talk turned to that country’s leader, Alexander Lukashenko, and an incident in which he turned off the utilities at the US Ambassador’s residence, as well as those of other diplomats. It seemed totally outlandish and crazy to me.

“But he won,” Pavlo countered. I was incredulous, until he explained. “Lukashenko knows he’s a bastard and that the world will never accept him. In that situation all you can win is your freedom and that’s what he won.” It was a mode of thinking so outrageous and foreign to me that I could scarcely believe it.

Yet it opened my eyes and made me a more effective operator. We tend to think of empathy as an act of generosity, but it’s far more than that. Learning how to internalize diverse viewpoints is a skill we should learn not only because it helps make others more comfortable, but because it empowers us to successfully navigate an often complex and difficult world.

Identifying Shared Values

We all have ideas we feel passionately about and, naturally, we want others to adopt them. The ideas we believe in make up an important facet of our identity, dignity and sense of self. For me, as an American living in post-communist countries, the ideas embedded in democratic institutions were important and it was difficult for me to see things another way.

My conversation with Pavlo opened my eyes. Where I saw America and “the west” as a more just society, people in other parts of the world saw it as a dominant force that restricted their freedom. My big insight was that I didn’t need to agree with a perspective to understand, internalize, and leverage it as a shared value.

For example, once I was able to understand that some people saw Americans as powerful—something akin to an invading force—I was able to shed the feelings of vulnerability that arose from being in a strange and foreign land and focus on the shared value of safety in my dealings with others.

A great strategy for identifying shared values is to listen closely to what your opposition is saying. People say and do things because they believe they will be effective. Once I was able to stop dismissing Lukashenko as a corrupt thug, I was able to identify the issues surrounding safety and dominance that could be useful to me.

Building Shared Purpose

Using empathy to identify shared values is a crucial first step, but doesn’t achieve anything by itself. To move things forward, we need to build a shared purpose. Consider a famous study called the Robbers Cave Experiment, which involved 22 boys of similar religious, racial and economic backgrounds invited to spend a few weeks at a summer camp.

In the first phase, they were separated into two groups of “Rattlers” and “Eagles” that had little contact with each other. As each group formed its own identity, they began to display hostility on the rare occasions when they were together. During the second phase, the two groups were given competitive tasks and tensions boiled over, with each group name calling, sabotaging each other’s efforts and violently attacking one another.

In the third phase, the researchers attempted to reduce tensions. At first, they merely brought them into friendly contact, with little effect. The boys just sneered at each other. However, when they were tricked into challenging tasks where they were forced to work together in order to be successful, the tenor changed quickly. By the end of the camp the two groups had fallen into a friendly camaraderie.

As Francis Fukuyama writes in his recent book, “Identity can be used to divide, but it can also be used to integrate,” which is exactly what I found in my years working is foreign cultures. Once I was able to leverage shared values to create a shared purpose and began engaging in shared actions, that purpose and those actions became part of a shared identity. Yes, I was still an American, with American values and perspectives, but I became their American.

Overcoming Conflict By Designing A Dilemma

Unfortunately, building a shared purpose isn’t always possible. A simple truth is that humans build attachments to people, ideas and things. When those attachments are threatened, they will lash out. That’s why whenever we set out to make a significant impact, there will always be those who will work to undermine what we are trying to achieve in ways that are dishonest, underhanded and deceptive.

When that happens—and it always does eventually—we can get sucked into a conflict, which will likely take us off course and discredit what we’re trying to achieve. Yet, here too, developing empathy skills to identify shared values can be extremely helpful once we learn how to design a dilemma action, which puts the opponents into an impossible position.

Dilemma actions have been used for at least a century—famous examples include Gandhi’s Salt March, King’s Birmingham Campaign and Alice Paul’s Silent Sentinels—but more recently codified by the global activist, Srdja Popović. They are just as effective in an organizational context, using an opponent’s resistance against them.

One of the great things about dilemma actions is that you approach them exactly the same way you approach building allies—by identifying a shared purpose. Once you do that, you can design a constructive act rooted in that shared purpose that advances your agenda. Your opponent then has a choice: they can disrupt the act and violate the shared value or they can let it go forward and let change progress.

For example, I was once running a transformation project that was being impeded by a Sales Director hogging accounts. Although it was agreed that she would distribute her clients, she never got around to it, so I set up a meeting with a key account and one of our salespeople. When she tried to disrupt the meeting, she violated the shared value we had established, was dismissed from her position and everything fell into place after that.

Empathy Is Not Absolution

Empathy, as powerful as it can potentially be, is widely misunderstood. It is often paired with compassion in the context of creating a more beneficial workplace. That is, of course, a reasonable and worthy objective, but the one-dimensional use of the term is misleading and limits its value.

When seen only through the lens of making others more comfortable, empathy can seem like a “nice to have,” trait rather than a valuable competency and an important source of competitive advantage. It’s much easier to see the advantage of imposing your will, rather than internalizing the perspectives of others.

One thing I learned over many years living in foreign cultures is that it’s important to understand how people around you think, especially if you don’t agree with them and, as is sometimes the case, find their point of view morally reprehensible. In fact, learning more about how others think can make you a more effective leader, negotiator and manager.

Empathy is not absolution. You can internalize the ideas of others and still vehemently disagree. There is a reason that Special Forces are trained to understand the cultures in which they will operate and it isn’t because it makes them nicer people. It’s because it makes them more lethal operators.

It is only through empathy that we can understand motivations—for good or ill—and design effective strategies to build shared purpose or, if need be, design a dilemma for an opponent. To operate in an often difficult world, you need to understand your environment. That’s why building empathy skills can be like a secret weapon.

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

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