Category Archives: Strategy

Strategy for a Post-Digital World

Strategy for a Post-Digital World

GUEST POST from Greg Satell

For decades, the dominant view of strategy was based on Michael Porter’s ideas about competitive advantage. In essence, he argued that the key to long-term success was to dominate the value chain by maximizing bargaining power among suppliers, customers, new market entrants and substitute goods.

Yet digital technology blew apart old assumptions. As technology cycles began to outpace planning cycles, traditional firms were often outfoxed by smaller competitors that were faster and more agile. Risk averse corporate cultures needed to learn how to “fail fast” or simply couldn’t compete.

Today, as the digital revolution is coming to an end, we will need to rethink strategy once again. Increasingly, we can no longer just move fast and break things, but will have to learn how to prepare, rather than just adapt, build deep collaborations and drive skills-based transformations. Make no mistake, those who fail to make the shift will struggle to survive.

Learning to Prepare Rather Than Racing to Adapt

The digital age was driven, in large part, by Moore’s law. Every 18 months or so, a new generation of chips would come out of fabs that was twice as powerful as what came before. Firms would race to leverage these new capabilities and transform them into actual products and services.

That’s what made agility and adaptation key competitive attributes over the past few decades. When the world changes every 18 months, you need to move quickly to leverage new possibilities. Today, however, Moore’s Law is ending and we’ll have to shift to new architectures, such as quantum, neuromorphic and, possibly, biological computers.

Yet the shift to this new era of heterogeneous computing will not be seamless. Instead of one fairly simple technology based on transistors, we will have multiple architectures that involve very different logical principles. These will need new programming languages and will be applied to solve very different problems than digital computers have been.

Another shift will be from bits to atoms, as fields such as synthetic biology and materials science advance exponentially. As our technology becomes infinitely more powerful, there are also increasingly serious ethical concerns. We will have to come to some consensus on issues like what accountability a machine should have and to what extent we should alter the nature of life.

If there is one thing that the Covid-19 crisis has shown is that if you don’t prepare, no amount of agility will save you.

Treating Collaboration as a New Competitive Advantage

In 1980, IBM was at an impasse. Having already missed the market for minicomputers, a new market for personal computers was emerging. So, the company’s leadership authorized a team to set up a skunk works in Boca Raton, FL. A year later, the company would bring the PC to market and change computer history.

So, it’s notable that IBM is taking a very different approach to quantum computing. Rather than working in secret, it has set up its Q Network of government agencies, academic labs, customers and start-ups to develop the technology. The reason? Quantum computing is far too complex for any one enterprise to pursue on its own.

“When we were developing the PC, the challenge was to build a different kind of computer based on the same technology that had been around for decades,” Bob Sutor, who heads up IBM’s Quantum effort, told me. “In the case of quantum computing, the technology is completely different and most of it was, until fairly recently, theoretical,” he continued. “Only a small number of people understand how to build it. That requires a more collaborative innovation model to drive it forward.”

It’s not just IBM either. We’re seeing similar platforms for collaboration at places like the Manufacturing Institutes, JCESR and the Critical Materials Institute. Large corporations, rather trying to crush startups, are creating venture funds to invest in them. The truth is that the problems we need to solve in the post-digital age are far too complex to go it alone. That’s why today, it’s not enough to have a market strategy, you need to have an ecosystem strategy.

Again, the Covid-19 crisis is instructive, with unprecedented collaborative efforts driving breakthroughs.

Drive Skills-Based Transformations

In the digital era, incumbent organizations needed to learn new skills. Organizations that mastered these skills, such as lean manufacturing, design thinking, user centered design and agile development, enjoyed a significant competitive advantage. Unfortunately, many firms still struggle to deploy critical skills at scale.

As digital technology enters an accelerated implementational phase, the need to deploy these skills at scale will only increase. You can’t expect to leverage technology without empowering your people to use it effectively. That’s why skills-based transformations have become every bit as important as strategic or technology-driven transformations.

As we enter the new post-digital era the need for skills-based transformations will only increase. Digital skills, such as basic coding and design, are relatively simple. A reasonably bright high school student can become proficient in a few months. As noted above, however, the skills needed for this new era will be far more varied and complex.

To be clear, I am not suggesting that everybody will need to have deep knowledge about things like quantum mechanics, neurology or genomics a decade from now any more than everybody needs to write code today. However, we will increasingly have to collaborate with experts in those fields and have some sort of basic understanding.

Making the Shift from Disrupting Markets to Pursuing Grand Challenges

The digital economy was largely built on disruption. As computer chips became exponentially faster and cheaper, innovative firms could develop products and services that could displace incumbent industries. Consider that a basic smartphone today can replace a bundle of technologies, such as video recorders, GPS navigators and digital music players, that would have cost hundreds of thousands of dollars when they were first introduced.

This displacement process has been highly disruptive, but there are serious questions about whether it’s been productive. In fact, for all the hype around digital technology “changing the world,“ productivity has been mostly depressed since the 1970s. In some ways, such as mental health and income inequality, we are considerably worse off than 40 or 50 years ago.

Yet the post-digital era offers us a much greater opportunity to pursue grand challenges. Over the next few decades, we’ll be able to deploy far more powerful technologies to solve problems like cancer, aging and climate change. It is, in the final analysis, these physical world applications that can not only change our lives for the better, but open up massive new markets.

The truth is that the future tends to surprise us and nobody can say for sure what the next few decades will look like. Strategy, therefore, can’t depend on prediction. However, what we can do is prepare for this new era by widening and deepening connections throughout relevant ecosystems, acquiring new skills and focusing on solving meaningful problems.

In the face of uncertainty, the best way to survive is to make yourself useful.

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

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Why Data-Based Decisions Will Lead You Straight to Hell

Why Data-Based Decisions Will Lead You Straight to Hell

GUEST POST from Robyn Bolton

Many years ago, Clay Christensen visited his firm where I was a partner and told us a story*.

“I imagine the day I die and present myself at the entrance to Heaven,” he said. “The Lord will show me around, and the beauty and majesty will overcome me. Eventually, I will notice that there are no numbers or data in Heaven, and I will ask the Lord why that is.”

“Data lies,” the Lord will respond. “Nothing that lies can be in Heaven. So, if people want data, I tell them to go to Hell.”

We all chuckled at the punchline and at the strength of the language Clay used (if you ever met him, you know that he was an incredibly gentle and soft-spoken man, so using the phrase “go to Hell” was the equivalent of your parents unleashing a five-minute long expletive-laden rant).

“If you want data, go to Hell.”

Clay’s statement seems absolutely blasphemous, especially in a society that views quantitative data as the ultimate source of truth:

  • “In God we trust. All others bring data.” W. Edward Deming, founding Father of Total Quality Management (TQM)
  •  “Above all else, show the data.” – Edward R. Tufte, a pioneer in the field of data visualization
  • “What gets measured gets managed” – Peter Drucker, father of modern management studies

But it’s not entirely wrong.

Quantitative Data’s blessing: A sense of safety

As humans, we crave certainty and safety. This was true millennia ago when we needed to know whether the rustling in the leaves was the wind or a hungry predator preparing to leap and tear us limb from lime. And it’s true today when we must make billion-dollar decisions about buying companies, launching products, and expanding into new geographies.

We rely on data about company valuation and cash flow, market size and growth, and competitor size and strategy to make big decisions, trusting that it is accurate and will continue to be true for the foreseeable future.

Quantitative Data’s curse: The past does not predict the future

As leaders navigating an increasingly VUCA world, we know we must prepare for multiple scenarios, operate with agility, and be willing to pivot when change happens.

Yet we rely on data that describes the past.

We can extrapolate it, build forecasts, and create models, but the data will never tell us with certainty what will happen in the future. It can’t even tell us the Why (drivers, causal mechanisms) behind the What it describes.

The Answer: And not Or

Quantitative data Is useful. It gives us the sense of safety we need to operate in a world of uncertainty and a starting point from which to imagine the future(s).

But, it is not enough to give the clarity or confidence we need to make decisions leading to future growth and lasting competitive advantage.

To make those decisions, we need quantitative data AND qualitative insights.

We need numbers and humans.

Qualitative Insight’s blessing: A view into the future

Humans are the source of data. Our beliefs, motivations, aspirations, and actions are tracked and measured, and turned into numbers that describe what we believed, wanted, and did in the past.

By understanding human beliefs, motivations, and aspirations (and capturing them as qualitative insights), we gain insight into why we believed, wanted, and did those things and, as a result, how those beliefs, motivations, aspirations, and actions could change and be changed. With these insights, we can develop strategies and plans to change or maintain beliefs and motivations and anticipate and prepare for events that could accelerate or hinder our goals. And yes, these insights can be quantified.

Qualitative Insight’s curse: We must be brave

When discussing the merit of pursuing or applying qualitative research, it’s not uncommon for someone to trot out the saying (erroneously attributed to Henry Ford), “If I asked people what they wanted, they would have said a horse that goes twice as fast and eats half as much.”

Pushing against that assertion requires you to be brave. To let go of your desire for certainty and safety, take a risk, and be intellectually brave.

Being brave is hard. Staying safe is easy. It’s rational. It’s what any reasonable person would do. But safe, rational, and reasonable people rarely change the world.

One more story

In 1980, McKinsey predicted that the worldwide market for cell phones would max out at 900,000 subscribers. They based this prediction on solid data, analyzed by some of the most intelligent people in business. The data and resulting recommendations made sense when presented to AT&T, McKinsey’s client.

Five years later, there were 340,213 subscribers, and McKinsey looked pretty smart. In 1990, there were 5.3 million subscribers, almost 6x McKinsey’s prediction.   In 1994, there were 24.1M subscribers in the US alone (27x McKinsey’s global forecast), and AT&T was forced to pay $12.6B to acquire McCaw Cellular.

Should AT&T have told McKinsey to “go to Hell?”  No.

Should AT&T have thanked McKinsey for going to (and through) Hell to get the data, then asked whether they swung by earth to talk to humans and understand their Jobs to be Done around communication? Yes.

Because, as Box founder Aaron Levie reminds us,

“Sizing the market for a disruptor based on an incumbent’s market is like sizing a car industry off how many horses there were in 1910.”

* Except for the last line, these probably (definitely) weren’t his exact words, but they are an accurate representation of what I remember him saying

Image Credit: Pixabay

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Business Models Supporting Circular Principles

Business Models Supporting Circular Principles

GUEST POST from Chateau G Pato

In today’s rapidly evolving economic landscape, the concept of circular business models is gaining heightened attention. The traditional linear business model—take, make, dispose—is increasingly unsustainable given the finite nature of resources and environmental degradation. Adopting circular principles not only benefits the planet but also opens new avenues for growth and innovation. In this article, we delve deep into circular business models and explore two inspiring case studies illustrating successful implementation.

Understanding Circular Business Models

Circular business models are designed to maximize resource efficiency by creating closed-loop systems where waste is minimized, and materials are reused and recycled. They focus on various key principles such as designing for longevity, encouraging sharing, and promoting recycling and renewability.

  • Design for Longevity: Creating products that are durable, repairable, and timeless reduces waste and environmental impact.
  • Encourage Sharing: Sharing models aim to increase product utilization rates—think car-sharing or tool libraries.
  • Promote Recycling and Renewability: Incorporating recycled materials and ensuring products can be disassembled encourages a lifecycle-focused approach.

Case Study 1: Patagonia

Patagonia, the outdoor clothing company, exemplifies how circular principles can be integrated into a business model. With a mission to create sustainable apparel, Patagonia has implemented several initiatives:

  • Worn Wear Program: This program focuses on repairing old gear, reselling used products, and recycling materials.
  • Recycled Materials: A significant portion of Patagonia’s products uses recycled materials, minimizing dependency on virgin resources.
  • Product Lifespan: By offering repairs for their products, Patagonia extends their lifespan and reduces waste.

Through these practices, Patagonia not only reduces its ecological footprint but also builds brand loyalty and engages with environmentally conscious consumers.

Case Study 2: Caterpillar’s Remanufacturing

Caterpillar, the heavy machinery giant, has embraced circular principles through its extensive remanufacturing operations:

  • Core Collection & Remanufacturing: Caterpillar collects end-of-life components, transforms them into like-new products, and sells them at a fraction of the cost.
  • Cost Efficiency: Remanufactured products are cheaper for consumers and preserve raw materials.
  • Environmental Impact: This process reduces landfill waste and lowers energy consumption associated with new manufacturing.

By investing in remanufacturing, Caterpillar enhances sustainability while maintaining product quality and competitiveness in the marketplace.

Expanding Circular Opportunities

Businesses across various sectors can benefit from embracing circular principles. To explore these opportunities, consider the following strategies:

  • Collaborate with Stakeholders: Effective implementation often requires collaboration with suppliers, consumers, and even competitors to establish a common vision for sustainability.
  • Innovate in Design: Rethink product design from the ground up to enhance modularity, repairability, and recyclability.
  • Educate and Engage Consumers: Building awareness and educating consumers about the benefits of circular products can drive demand and foster a movement towards sustainability.

Conclusion

Transitioning to circular business models is not just an ethical responsibility but a strategic imperative. As Patagonia and Caterpillar demonstrate, integrating circular principles leads to sustainable innovation, economic resilience, and a stronger brand reputation. Embracing this paradigm shift offers businesses the chance to lead in an ever-changing environment, driven by the imperative to safeguard our planet for future generations.

By 2030, it is anticipated that businesses that integrate circular principles will significantly outperform their linear counterparts. The journey to a circular economy is paved with challenges, but the rewards—in terms of business growth, environmental conservation, and societal impact—are well worth the pursuit.

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

Image credit: Pexels

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The Resilience Conundrum

From the Webb Space Telescope to Dishwashing Liquids

The Resilience Conundrum

GUEST POST from Pete Foley

Many of us have been watching the spectacular photos coming from Webb Space Telescope this week. It is a breathtaking example of innovation in action. But what grabbed my attention almost as much as the photos was the challenge of deploying it at the L2 Lagrange point. That not only required extraordinary innovation of core technologies, but also building unprecedented resilience into the design. Deploying a technology a million miles from Earth leaves little room for mistakes, or the opportunity for the kind of repairs that rescued the Hubble mission. Obviously the Webb team were acutely aware of this, and were painstaking in identifying and pre-empting 344 single points of failure, any one of which had the potential to derail it. The result is a triumph.  But it is not without cost. Anticipating and protecting against those potential failures played a significant part in taking Webb billions over budget, and years behind it’s original schedule.

Efficiency versus Adaptability: Most of us will never face quite such an amazing but  daunting challenge, or have the corresponding time and budget flexibility. But as an innovation community, and a planet, we are entering a phase of very rapid change as we try to quickly address really big issues, such as climate change and AI. And the speed, scope and interconnected complexity of that change make it increasingly difficult to build resilience into our innovations. This is compounded because a need for speed and efficiency often drives us towards narrow focus and increased specialization.  That focus can help us move quickly, but we know from nature that the first species to go extinct in the face of environmental change are often the specialists, who are less able to adapt with their changing world. Efficiency often reduces resilience, it’s another conundrum.

Complexity, Systems Effects and Collateral Damage. To pile on the challenges a little, the more breakthrough an innovation is, the less we understand about how interacts at a systems level, or secondary effects it may trigger.  And secondary failures can be catastrophic. Takata airbags, or the batteries in Samsung Galaxy phones were enabling, not core technologies, but they certainly derailed the core innovations.

Designed Resiliency. One answer to this is to be more systematic about designing resilience into innovation, as the Webb team were. We may not be able to reach the equivalent of 344 points of failure, but we can be systematic about scenario planning, anticipating failure, and investing up front in buffering ourselves against risk. There are a number of approaches we can adopt to achieve this, which I’ll discuss in detail later.

The Resiliency Conundrum. But first let’s talk just a little more about the Resilience conundrum. For virtually any innovation, time and money are tight. Conversely, taking time to anticipate potential failures is often time consuming and expensive. Worse, it rarely adds direct, or at least marketable value. And when it does work, we often don’t see the issues it prevents, we only notice them when resiliency fails. It’s a classic trade off, and one we face at all levels of innovation. For example, when I worked on dishwashing liquids at P&G, a slightly less glamorous field than space exploration, an enormous amount of effort went into maintaining product performance and stability under extreme conditions. Product could be transported in freezing or hot temperatures, and had to work extreme water hardness or softness. These conditions weren’t typical, but they were possible. But the cost of protecting these outliers was often disproportionately high.

And there again lies the trade off. Design in too much resiliency, and we are become inefficient and/or uncompetitive. But too little, and we risk a catastrophic failure like the Takata airbags. We need to find a sweet spot. And finding it is still further complicated because we are entering an era of innovation and disruption where we are making rapid changes to multiple systems in parallel. Climate change is driving major structural change in energy, transport and agriculture, and advances in computing are changing how those systems are managed. With dishwashing, we made changes to the formula, but the conditions of use remained fairly constant, meaning we were pretty good at extrapolating what the product would have to navigate. The same applies with the Webb telescope, where conditions at the Lagrange point have not changed during the lifetime of the project. We typically have a more complex, moving target.

Low Carbon Energy. Much of the core innovation we are pursuing today is interdependent. As an example, consider energy. Simply replacing hydrocarbons with, for example, solar, is far more complex than simply swapping one source of energy for another. It impacts the whole energy supply system. Where and how it links into our grid, how we store it, unpredictable power generation based on weather, how much we can store, maintenance protocols, and how quickly we can turn up or down the supply are just a few examples. We also create new feedback loops, as variables such as weather can impact both power generation and power usage concurrently. But we are not just pursuing solar, but multiple alternatives, all of which have different challenges. And concurrent to changing our power source, we are also trying to switch automobiles and transport in general from hydrocarbons to electric power, sourced from the same solar energy. This means attempting significant change in both supply and a key usage vector, changing two interdependent variables in parallel. Simply predicting the weather is tricky, but adding it to this complex set of interdependent variables makes surprises inevitable, and hence dialing in the right degree of resilience pretty challenging.

The Grass is Always Greener: And even if we anticipate all of that complexity, I strongly suspect, we’ll see more, rather than less surprises than we expect.   One lesson I’ve learned and re-learned in innovation is that the grass is always greener. We don’t know what we don’t know, in part because we cannot see the weeds from a distance. The devil often really is in the details, and there is nothing like moving from theory to practice, or from small to large scale to ferret out all of the nasty little problems that plague nearly every innovation, but that are often unfathomable when we begin. Finding and solving these is an inherent part of virtually any innovation process, but it usually adds time and cost to the process. There are reasons why more innovations take longer than expected than are delivered ahead of schedule!

It’s an exciting, but also perilous time to be innovating. But ultimately this is all manageable. We have a lot of smart people working on these problems, and so most of the obvious challenges will have contingencies.   We don’t have the relative time and budget of the Webb Space Telescope, and so we’ll inevitably hit a few unanticipated bumps, and we’ll never get everything right. But there are some things we can do to tip the odds in our favor, and help us find those sweet spots.

  1. Plan for over capacity during transitions. If possible, don’t shut down old supply chins until the new ones are fully established. If that is not possible, stockpile heavily as a buffer during the transition. This sounds obvious, but it’s often a hard sell, as it can be a significant expense. Building inventory or capacity of an old product we don’t really want to sell, and leaving it in place as we launch doesn’t excite anybody, but the cost of not having a buffer can be catastrophic.
  2. In complex systems, know the weakest link, and focus resilience planning on it. Whether it’s a shortage of refills for a new device, packaging for a new product, or charging stations for an EV, innovation is only as good as its weakest link. This sounds obvious, but our bias is to focus on the difficult, core and most interesting parts of innovation, and pay less attention to peripherals. I’ve known a major consumer project be held up for months because of a problem with a small plastic bottle cap, a tiny part of a much bigger project. This means looking at resilience across the whole innovation, the system it operates in and beyond. It goes without saying that the network of compatible charging stations needs to precede any major EV rollout. But never forget, the weakest link may not be within our direct control. We recently had a bunch of EV’s stranded in Vegas because a huge group of left an event at a time when it was really hot. The large group overwhelmed our charging stations, and the high temperatures meant AC use limited the EV’s range, requiring more charging. It’s a classic multivariable issue where two apparently unassociated triggers occur at once.   And that is a case where the weakest link is visible. If we are not fully vertically integrated, resilience may require multiple sources or suppliers to protect against potential failure points we are not aware of, just to protect us against things we cannot control.
  3. Avoid over optimization too early. It’s always tempting to squeeze as much cost out of innovation prior to launch. But innovation by its very nature disrupts a market, and creates a moving target. It triggers competitive responses, changes in consumer behavior, supply chain, and raw material demand. If we’ve optimized to the point of removing flexibility, this can mean trouble. Of course, some optimization is always needed as part of the innovation process, but nailing it down too tightly and too early is often a mistake. I’ve lost count of the number of initiatives I’ve seen that had to re-tool or change capacity post launch at a much higher cost than if they’d left some early flexibility and fine-tuned once the initial dust had settled.
  4. Design for the future, not the now. Again this sounds obvious, but we often forget that innovation takes time, and that, depending upon our cycle-time, the world may be quite different when we are ready to roll out than it was when we started. Again, Webb has an advantage here, as the Lagrange point won’t have changed much even in the years the project has been active. But our complex, interconnected world is moving very quickly, especially at a systems level, and so we have to build in enough flexibility to account for that.
  5. Run test markets or real world experiments if at all possible. Again comes with trade offs, but no simulation or lab test beats real world experience. Whether its software, a personal care product, or a solar panel array, the real world will throw challenges at us we didn’t anticipate. Some will matter, some may not, but without real world experience we will nearly always miss something. And the bigger our innovation, generally the more we miss. Sometimes we need to slow down to move fast, and avoid having to back track.
  6. Engage devils advocates. The more interesting or challenging an innovation is, the easier it is to slip into narrow focus, and miss the big picture. Nobody loves having people from ‘outside’ poke holes in the idea they’ve been nurturing for months or years, but that external objectiveness is hugely valuable, together with different expertise, perspectives and goals. And cast the net as wide as possible. Try to include people from competing technologies, with different goals, or from the broad surrounding system. There’s nothing like a fierce competitor, or people we disagree with to find our weaknesses and sharpen an idea. Welcome the naysayers, and listen to them. Just because they may have a different agenda doesn’t mean the issues they see don’t exist.

Of course, this is all a trade off. I started this with the brilliant Webb Space telescope, which is amazing innovation with extraordinary resilience, enabled by an enormous budget and a great deal or time and resource. As we move through the coming years we are going to be attempting innovation of at least comparable complexity on many fronts, on a far more planetary scale, and with far greater implications if we get it wrong. Resiliency was a critical part of the Webb Telescopes success. But with stakes as high as they are with much of today’s innovation, I passionately believe we need to learn from that. And a lot of us can contribute to building that resiliency. It’s easy to think of Carbon neutral energy, EV’s, or AI as big, isolated innovations. But in reality they comprise and interface with many, many sub-projects. That’s a lot of innovation, a lot of complexity, a lot of touch-points, a lot of innovators, and a lot of potential for surprises. A lot of us will be involved in some way, and we can all contribute. Resiliency is certainly not a new concept for innovation, but given the scale, stakes and implications of what we are attempting, we need it more than ever.

Image Credit: NASA, ESA, CSA, and STScl

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Innovative Strategies for Crisis Management

Innovative Strategies for Crisis Management

GUEST POST from Art Inteligencia

In today’s rapidly changing landscape, organizations must be equipped with effective strategies for crisis management. The ability to navigate a crisis not only determines the survival of a company but can also set the foundation for future success. Innovative thinking becomes crucial here. Let’s explore some key strategies and real-world examples of organizations that have excelled in crisis management.

Strategy 1: Embrace Agility

An agile approach allows organizations to respond quickly and efficiently to crises. This involves having flexible processes and empowering teams to make swift decisions. A culture of agility encourages constant evaluation and immediate action, which can significantly reduce the impact of unforeseen challenges.

Case Study: Airbnb’s Response to the COVID-19 Pandemic

In the face of the COVID-19 pandemic, Airbnb experienced a major crisis as travel restrictions meant a significant drop in bookings. Instead of succumbing to the challenges, Airbnb embraced agility by pivoting their business model:

They introduced online experiences as a way to engage their community and support hosts. This strategic move not only provided a new revenue stream but also strengthened their brand by showing resilience and adaptability.

Strategy 2: Foster Transparent Communication

During a crisis, transparent and consistent communication is vital to maintaining trust among stakeholders. Organizations should aim to provide accurate information and manage expectations effectively. Clear communication minimizes panic and keeps all parties aligned.

Case Study: Johnson & Johnson’s Handling of the 1982 Tylenol Crisis

In 1982, Johnson & Johnson faced a severe crisis when their Tylenol products were tampered with, leading to consumer deaths. Their handling of the situation stands as a textbook example of crisis management:

They immediately launched a massive communications campaign to inform the public and recalled 31 million bottles of Tylenol, prioritizing customer safety above all. The bold and transparent approach not only mitigated the crisis but also restored public trust.

Strategy 3: Leverage Technology

Utilizing technology can offer innovative solutions during a crisis. Technology can facilitate real-time data analysis, communication, and the automation of processes—allowing organizations to respond swiftly and effectively.

Build a Resilient Community

Involving and supporting the community around your organization can serve as a strong foundation during a crisis. A resilient community stands together, helping not only the organization recover but also supporting each other through challenges.

Conclusion

Crisis management requires a balance of agility, communication, and technological innovation. By studying successful case studies like Airbnb and Johnson & Johnson, we learn the value of proactive strategies that prioritize flexibility, transparency, and community engagement. These elements are crucial to overcoming crises and setting a course for sustainable success.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Strategies for Boosting Employee Engagement

Strategies for Boosting Employee Engagement

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, employee engagement is more critical than ever. Engaged employees are not just happier, but they are also more productive, more innovative, and more loyal. Yet, fostering genuine engagement is a challenge that requires deliberate strategies and effort.

Understanding Employee Engagement

Employee engagement is not merely about job satisfaction. It’s about creating an emotional commitment to the organization and its goals. Engaged employees understand their role in the bigger picture, feel valued, and are inspired to contribute to organizational success.

Key Strategies for Boosting Engagement

Below are actionable strategies designed to bolster employee engagement within organizations:

  • Foster Open Communication: Encourage a culture of transparency where employees feel safe to express ideas and concerns. Regularly update teams on company goals and achievements.
  • Offer Professional Growth Opportunities: Invest in training, mentorship, and development programs. A clear path for advancement engages employees and reduces turnover.
  • Recognize and Reward Contributions: Create a recognition program to celebrate achievements and show appreciation. Tailor rewards to individual preferences wherever possible.
  • Cultivate a Positive Work Environment: Ensure a healthy work-life balance, create comfortable workspaces, and promote a supportive and inclusive culture.
  • Empower Employees: Encourage autonomy and resourcefulness by giving employees ownership of their projects and trusting their judgement.

Case Study 1: Tech Innovators Inc.

At Tech Innovators Inc., a software development company, employee engagement was at an all-time low. High turnover and plummeting morale prompted leadership to take action.

Strategy Implementation:

  • Open Communication: Introduced bi-weekly town hall meetings and an anonymous digital suggestion box.
  • Growth Opportunities: Launched a comprehensive skills-building program and clear career progression plans.

Results: Within six months, the company saw a 30% increase in employee satisfaction scores and a significant reduction in turnover. Employees felt heard and valued, driving a surge in innovative project proposals.

Case Study 2: Green Horizon Solutions

Green Horizon Solutions, an environmental consulting firm, struggled with engagement as employees felt their efforts went unnoticed.

Strategy Implementation:

  • Recognition and Rewards: Developed a ‘Horizon Heroes’ monthly recognition program, where peer-nominated employees receive awards.
  • Positive Work Environment: Improved workspaces with ergonomic furniture and introduced wellness sessions, including yoga and mindfulness practices.

Results: The firm achieved an impressive 40% improvement in employee engagement metrics. The newfound positive atmosphere led to increased collaboration and creative solutions, driving business success.

Conclusion

Boosting employee engagement is a multifaceted endeavor that requires commitment from leadership and strategic action. By implementing the aforementioned strategies and adapting them to your organization’s unique culture, you can initiate transformative change that benefits both employees and the organization at large. Remember, engagement is an ongoing journey, and maintaining it demands continuous and conscious effort.

With these strategies, businesses can cultivate an engaged, motivated workforce, ultimately fostering a thriving organizational environment.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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Surfacing Your Hidden Assumptions

Successful strategy and innovation are about how fast you can become aware of your assumptions.

Surfacing Your Hidden Assumptions

GUEST POST from Soren Kaplan

When it comes to strategy and innovation, success depends on how fast you become aware of your assumptions and then modify them. But it’s a paradox:  You can’t see your most fundamental assumptions until you overcome them. This means that you can only understand your mindsets that were barriers retrospectively.

Let’s look at how this works. I have a quick story for you, then a question.

A bus driver was heading down Van Ness Avenue in my hometown of San Francisco. He went through a stop sign without even slowing down, then turned onto a one-way street going the opposite direction as the rest of the traffic. A police officer saw the whole thing but he didn’t stop him or issue a ticket because no laws had been broken. The question for you is this: How can this scenario be possible?

If you answered that the bus driver was walking down the street, you are correct. This is a very simple example to illustrate how we all make assumptions. Most people just assume that a bus driver is always driving a bus. But of course, that’s not the case. The most important part of this exercise isn’t to point out that an assumption may have been made in the first place – it’s only natural to do so. It’s to show that most of us only recognize that we’ve made an assumption after we’ve discovered that our thinking was invalid or that it led us astray. And by then, it can often be “too late.”

Let’s go back to the bus driver for a moment. What if I had framed things up in the scenario a little differently and included another statement up front that said “In San Francisco, people use cars, take the bus, or walk down the street to get where they’re going.”  How would this have impacted your assumptions? For most people, the idea that it’s possible the bus driver could be walking down the street would have been planted in their brains as they read the rest of the scenario – and they would have more easily overcome their limiting assumption that bus drivers only drive buses. The goal is to continually broaden your perspective so that you can overcome your assumptions before they limit your options or slow you down.

Here are a couple of tried and true approaches I’ve used to challenge and expand mindsets.

Identify Areas of Intrigue

When it comes to developing your strategy or innovating, get clear on what you need to know and learn. List up to 4-5 topics. Examples might include things like board games children like most, the healthiest yet best tasting desserts, or the most successful social media influencers. For each topic, create a list of guiding questions that, if answered, would really give you a solid understanding of the area. For instance, using the board games children like mostexample, you could come up with questions like: What are the most popular children’s board games? How long do the best games take to play? Do adults usually play with the children? What does it take to win? This exercise will help you better understand what’s most important to further explore so you can broaden your perspective.

Adapt a Business Model

Find a company completely outside of your industry or market and look at what makes them different and what they do really well.  Then adapt their model to your cause.  Use the format “I want to be the ____________ of ____________” by putting a company name into the first blank and the area of your target market or innovation area into the second blank.  For example, if you want to transform the fashion industry, you might try “I want to be the Netflix of fashion”, which could lead you down the path of high-end evening gown rental services like Rent the Runway.  Consider companies like Starbucks, Twitter, Domino’s, NIKE, Home Depot, or any other innovative company you can think of.

Your mindsets naturally constrain your ability to consider alternatives and possibilities that go beyond the boundaries of your thinking. Your limiting assumptions can be about personal skills, team knowledge and abilities, organizational capabilities, market needs, technology, financial limitations, partnership possibilities, competition, or just about anything else. The goal is to recognize you hold assumptions and then act to surface them.

As the writer John Seely Brown once said, the harder you fight to hold on to specific assumptions, the more likely there’s gold in letting go of them.

Image credit: Pexels

This article was originally published on Inc.com and has been syndicated for this blog.

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Strategies for Successfully Communicating Change

Strategies for Successfully Communicating Change

GUEST POST from Art Inteligencia

Change is a constant in today’s rapidly evolving world. Organizations that thrive are those that effectively communicate change initiatives, ensuring clarity, alignment, and engagement among their stakeholders. As a thought leader in human-centered change and innovation, I aim to equip you with actionable strategies that enhance communication during change initiatives.

Understanding the Importance of Communication in Change

Communication is the lifeline of any successful change initiative. Without it, uncertainty, resistance, and confusion can erode even the best-laid plans. Crafting a compelling narrative around why the change is happening, who it impacts, and what the benefits are is essential to gaining buy-in and reducing resistance.

Strategy 1: Building a Clear and Unified Message

A unified message serves as the foundation of any successful change communication strategy. It’s crucial that everyone from leadership to front-line employees shares the same understanding of the change.

“A unified message creates a clear vision, fosters trust, and drives engagement across all levels of an organization.”

Consider Case Study: Fortune 500 Tech Corporation. When the company decided to pivot its product line to include more cloud-based solutions, they knew a clear message was key. They developed a communication framework that outlined the “why,” “what,” and “how” – why the change was needed, what the new direction entailed, and how it would be implemented. This message was communicated consistently across all teams, through town halls, newsletters, and dedicated intranet hubs. This strategic communication plan ensured everyone was on the same page and minimized confusion and disruption.

Strategy 2: Leveraging Storytelling for Emotional Connection

Studies have shown that humans are hardwired to respond to stories. Communicating change through storytelling helps create a relatable context, making the change more personal and impactful.

In Case Study: Global Retail Chain, when the company began a digital transformation journey, they employed storytelling to connect with employees emotionally. Leaders shared personal stories about how digital tools positively impacted their work-life balance and productivity. By aligning the transformation with real-life benefits, employees became more receptive and enthusiastic about embracing new technologies.

Strategy 3: Engaging Stakeholders Early and Often

Engagement isn’t a one-time activity. Successful change communication thrives on continuous dialogue. Invite feedback, address concerns, and provide regular updates to maintain momentum and build trust.

For instance, the retail chain from our case study conducted monthly feedback sessions, allowing employees to voice concerns and suggest improvements. This continuous engagement built a sense of community and ownership, further smoothing the change process.

Strategy 4: Utilizing Multiple Communication Channels

Diversifying communication methods ensures that messages reach everyone, respecting different preferences and schedules. Use a mix of emails, face-to-face meetings, video updates, and social media to cater to diverse audiences.

In the tech corporation case study, by employing various channels, the company ensured no one was left out. Employees could access information at their convenience, an approach that was particularly beneficial given remote work dynamics.

Strategy 5: Training and Support

Change can be intimidating. Providing adequate training and support empowers employees to adapt more readily and performing effectively in the new environment.

The retail chain implemented comprehensive training sessions focusing on new digital tools, pairing them with ongoing support and mentorship programs. This not only eased the transition but also equipped employees with new skill sets, transforming apprehension into opportunity.

Conclusion

Effective communication isn’t about what you say, but how you make others feel during a change. It’s about creating understanding, reducing fear, and fostering inspiration. By building clear messages, employing storytelling, engaging stakeholders, utilizing diverse channels, and offering support, organizations can transform change from a challenge into an opportunity.

As we’ve seen in the case studies of the Fortune 500 Tech Corporation and the Global Retail Chain, tailored strategies can lead to successful change communications, ultimately leading to sustained growth and innovation.

Let us embrace change not as a disruption, but as an avenue for growth. Stay innovative, stay connected, and continue to propel forward.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Pexels

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A Strategic Approach to Evaluating Innovation Portfolios

A Strategic Approach to Evaluating Innovation Portfolios

GUEST POST from Art Inteligencia

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

The Importance of a Balanced Innovation Portfolio

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

Key Considerations for Evaluating Innovation Portfolios

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

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

Case Study 1: 3M’s Diversified Innovation Strategy

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

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

Case Study 2: Google’s Ambitious Moonshot Projects

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

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

Conclusion: A Strategic Framework for Success

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

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

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

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

Image credit: Freepik

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Chance to Help Make Futurism and Foresight Accessible

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

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

I also introduced lots of inexpensive tools like the:

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

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

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

Chance to Help Make Futurism Accessible

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

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

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

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

FutureHacking Tools Collection

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

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

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