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Your Ability to Innovate Determined By Your Ability to Pause

GUEST POST from Janet Sernack

Many of my coaching clients have recently shared their struggles with feeling tired, emotionally overwhelmed, and cognitively overloaded and are close to burnout. They attribute these issues to the pervasive and addictive nature of technology, exacerbated by the pandemic and divisive global conflicts, accelerating change and the rise of AI and hybrid work. As a result, many have retreated and frozen into a state of habitual, reactive ‘busyness.’ This affects their overall emotional, physical, and mental health and wellness. It also inhibits their ability to focus, create, invent and innovate and restricts their optimism, hope, and positivity about their future in an unstable and uncertain world.

The Coaching Opportunity

Coaching creates a unique opportunity to partner with people to develop their pause-power to identify the transformative actions to reverse this pervasive phenomenon to flourish in a world of unknowns.

A coaching session usually serves as a first step towards cultivating the pause-power needed to stop, observe, reflect and take valuable time out to rest, replenish, re-energize and reboot. This allows people to courageously notice, attune to, and express their true feelings and thoughts, to disrupt, dispute and deviate them to develop the pause-power required to heal and provide relief, hope and optimism for a better future.

Everyone must cultivate intentional pause-power to empower them to observe and understand their inner and outer worlds. This practice helps them remove distractions, stop multitasking, and break free from the ‘busyness’ that depletes their cognitive, emotional, and visceral resources, putting them in the driver’s seat of their mental and emotional well-being.

Self-reflection and reflective practice become potent tools, enabling people to move away from reactivity and short-term focus and towards taking the transformative actions to adapt, create, invent, and innovate.

Hitting Your Pause Button

Being adaptive, creative, inventive and innovative involves consciously taking your hands off the controls and encouraging yourself and others to notice and disrupt your habitual and addictive ‘busyness’ (time scarcity + task focus).

This awareness is the first step towards reclaiming your focus and attention so that you can engage with and interpret the modern world rather than try to control it or withdraw from it.

Being willing to take a break and hit the ‘pause button’ stops your continuous cycle of doing. It focuses your attention on breaking limiting beliefs or unresourceful patterns and provides a support structure for applying rigorous perception practices to our daily lives.

Using pause-power to create a place, as recently described by Otto Scharmer from the Presencing Institute:

“Between action and non-action, there is a place. A portal into the unknown. But what are we each called to contribute to the vision of the emerging future? Perhaps these times are simply doorways into the heart of the storm, a necessary journey through the cycles of time required to create change”.

What Does Pause-Power Involve?

A pause is created when you suspend activity, a time of temporary disengagement when you no longer move towards any goal. It can occur amid almost any activity and can last for an instant by taking a deep breath to get grounded, for minutes to become mindful or to take a rest, for hours to enjoy a well-deserved break, or for years to experience life in a different culture or place.

Intentionally pausing enables you to take time between your range of habitual, largely unconscious reactive responses; it helps our brain’s executive function utilize the valuable ‘empty spaces’ between stimulus and response and between different ideas. It creates a space open to options and choices for being, thinking and acting differently.

Doing this allows you to notice and disrupt unresourceful and habitual auto ‘stimulus-response’ default patterns, which usually occur when things go wrong, you make a mistake and fail, or you dive into blaming, shaming or avoiding others as part of our naturally wired defence mechanisms.

Radical Acceptance

Learning to pause is one of the critical steps in innovation because it helps you initiate a practice of radical acceptance. This requires embracing uncertainty, or ‘what is’ truly happening in the present moment, relationship, or situation, by accepting things just as they are.

“During the moments of a pause, we become conscious of how the feeling that something is missing or wrong keeps us leaning into the future, on our way somewhere else. This gives us a fundamental choice in how we respond: We can continue our futile attempts at managing our experience or meet our vulnerability with the wisdom of Radical Acceptance”.

By being willing to dive into an ‘empty space’ from an emergent process, you can unleash possibilities, opportunities, options, and choices towards identifying the transformative actions that create your desired future.

People who can artfully and skillfully facilitate creative conversations that funnel pause power and co-create valuable ‘empty spaces’ to occur can generate our imagination and curiosity to manifest glorious moments of insights required to emerge creative ideas.

Pausing also enables you to observe, pay attention, notice, and regulate how your overall nervous system impacts and manages your brain’s functions. This is key to being practical, resourceful, healthy, and productive in the face of volatility, complexity, uncertainty, and accelerating change in our hyper-connected world.

It also needs rest to do this. By applying our pause-power and giving ourselves some rest, we offer our bodies, hearts, and minds a chance to recharge, keep moving, and work towards taking the transformative actions required to build better workplaces and flourishing futures.

A Valuable Toolkit and Habit

This skill is valuable for everyone to reflect upon, cultivate and master. It is initiated by intentionally stopping by hitting an invisible cognitive ‘pause button’ to observe, pay attention, notice your inner experience, and see yourself as the cause of it.

Developing pause power involves six simple vital steps and questions:

1.Retreat from reacting to the situation – by stepping back into the present moment or time to notice, be with, allow, accept (radical acceptance), and acknowledge ‘what is’ going on internally and externally, and be willing to name it with detachment and discernment.

What is going on for me right now – how am I feeling about it?

2. Step up and out to disrupt yourself and create an opening, doorway, threshold, or empty space – to allow something new to emerge.

What can I learn from this situation?

3. Step up and out to disrupt yourself and create an opening, doorway, threshold, or empty space – to allow something new to emerge.

What can I learn from this situation?

4. Be willing to introduce and explore options and choices that allow you to deviate and refocus your attention on what really matters – taking a rest, having a holiday, completing a project, being a better person, getting a new job, or getting a promotion.

What are some of my options for change?

5. Be inquisitive, curious and open to reimagining, reinventing, and pivoting – an intention, mindset, behaviour, task, goal, or business focus to re-plenish, re-energize, re-engage and re-boot to mobilize yourself.

How might I feel, think or act differently to achieve my outcome?

6. Step out into the system’s edges – by being calm, hopeful and optimistic, to identify the transformative actions required to move towards and exploring new creative, inventive and innovative solutions for providing value in ways people appreciate and cherish.

What will I do next?

Engaging in a Looking Lab

As many of our ImagineNation community members know, I am currently writing a book on ‘Being Innovative.’ There is a whole chapter on developing pause power to help people engage what Christian Madsbjerg calls in his latest book “Look: How to Pay Attention in a Distracted World” (Riverhead Books) – a Looking Lab, to:

“Get away from your screens, turn off your notifications, go out into the wilds of reality, and look around. Let go of all filters—clichés, conventions, colour corrections, whatever they may be. Try to pay attention to the simple act of seeing.”

He reveals that “if we choose to look for them, there are invisible worlds all around us ready to reveal their magic. The seemingly mundane or average can appear extraordinary, but only if we take the time to notice and see it”.

This is a vital part of our remarkable human capacity to transform through the slow, patient act of observing, attending, noticing, replenishing, re-energizing, re-engaging, and re-booting to take the transformative actions that will help you make the world a better place and achieve your 21st-century growth and success differently.

Please find out more about our work at ImagineNation™.

Please find out about our collective learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack, it is a collaborative, intimate, and profoundly personalised innovation coaching and learning program supported by a global group of peers over 9-weeks, and can be customised as a bespoke corporate learning program.

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

Image Credit: Pixabay

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Smarter Risk Taking

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Smarter Risk Taking

GUEST POST from Janet Sernack

After founding ImagineNation™ in Israel, I invested a year of my time and considerable money in taking what I thought were smart risks to invent an experiential business game. This involved collaborating with one of the top game design companies to co-create a live business simulation incorporating innovative gamification elements intending to teach corporations how to be innovative.

To my shock and surprise at the time, my invention initially failed!

Despite being an adult and experiential learning specialist and having designed and facilitated hundreds of corporate learning games for some of Australia’s top 100 companies over twenty-five years. It felt really horrible, and it was a visceral, heartbreaking, shameful and ego-destroying experience that I would not want anyone, anywhere, ever to experience.

Deep Learning Experience

Yet, it became a profound learning experience, enabling me to understand how:

My imposter syndrome played a significant self-sabotaging role. It did not set me up for success, nor did it set me up for maximising the importance of self-efficacy and self-mastery when on an innovation roller-coaster ride.
I had not undertaken sufficient research studies to determine if users wanted and were ready to accept such a radical innovation. Nor had I noticed how much the corporate learning market was being disrupted by technology, causing significant time and budget constraints, that I had neglected to address.
I had not paused long enough to consider, anticipate, plan and mitigate the risks involved in prototyping a viable minimal product in a new market.
I had not considered the risks involved with collaborating with a new consulting partner and co-facilitator, as well as with a new client. Nor anticipated how to resolve the values conflict that erupted when the project failed.
I had not fully understood the process involved in iterating and pivoting a new invention and the time it would take to produce a commercially viable product that the market would understand, be ready for, and respond to.

Finally, it seems that I had unconsciously fallen victim to the innovative start-up entrepreneur’s curse – falling in love with my product!

This was generated by my excitement, enthusiasm and energy of the possibilities rather than balancing these courageously and compassionately with the:

Harsh realities to be innovative.
Vital role of smart risk-taking and experimentation.
What ‘fails fast, to learn quickly’ really means at the heart (emotional), head (cognitive) and gut (visceral) levels.

Value of Failing Fast

They say that people need to teach what they need to learn themselves.

This valuable failure enabled me to invest the next ten years in learning to make sense of innovation and what it means to be innovative, including:

Helped me develop self-efficacy, trust my inner knowing and judgement, and make a stand for myself in the face of opposition and criticism I often received when presenting at a global conference on the people side of innovation, especially by process engineers.
Investing more attention, time in iterating and pivoting, testing and validating the two-day business simulation MVP to make it more tangible, simpler and teachable.
Acknowledging that technology had accelerated sufficiently to accept that the original creative idea of a simple hybrid board game was the most valuable commercial option that could make the difference I wanted to make in the world.
Becoming more patient, self-compassionate, and courageous in smart risk-taking and leading, coaching, and engaging in team innovation and continuous learning through various innovation, entrepreneurial and intrapreneurial learning initiatives.

Iterating and Pivoting

I iterated, pivoted, and refined my intellectual property by presenting and bespoking the Coach for Innovators, Leaders and Teams Certified Program™ for over twelve years to global change-makers.

Most importantly, I reined in my competitive, risky and restless saboteur and focused on doing just one thing, which has finally morphed into a book, supported by a board game to teach people how to be innovative and develop an innovation mindset.

Taking Risks

In the fog of a globalised, disrupted, unpredictable and increasingly uncertain world, no innovation can progress, and no one can be innovative without smart risk-taking.

No innovation can improve without rigorous experimentation, where learning mainly happens by doing things to explore, discover, and know what not to do.

Research has shown that most successful new business ventures abandoned their original business strategies when implementing their initial plans, learned what would and would not work in the market, and conserved sufficient resources to have a second or third stab at getting it right.

Trial and Error and Cause and Effect

Innovation is a never-ending, risky, adaptive process involving trial and error and understanding cause and effect.

Because people are fearful of making mistakes and the negative consequences of failure, innovation requires leadership to develop both foresight and prospection skills to:

Empower and enable them to paradoxically take both a strategic and systemic perspective and a human-centred approach.
Equip them to be innovative when designing business ventures and transformation initiatives that deliver commercially viable outcomes to successfully improve the quality of people’s lives that are appreciated and cherished.

Risk-taking is a Choice

In most businesses and organizations, innovation involves taking considerable risks, especially if seeking to enter a new market with a new product. It is compounded and resisted by many people in organizations because they are too focused on personal survival, personal gain, short-term gain and shareholder return.

Unfortunately, many organizations end up, paradoxically, undermining their organization’s capacity to be innovative, adapt, innovate and grow. Mainly due to their people being disengaged, resistant to change, lacking agency and being held back by bureaucracy and hierarchy that is averse to smart risk-taking and experimentation.

The Future is Permissionless

Because most people generally do not have permission, and are not allowed to make mistakes. They are not encouraged to try new things, so they become risk-averse, avoidant, oppositional and conventional, and don’t feel safe in deviating from the accepted way of doing things.

This is commonly known as the ‘status quo’ and drives people to comply with ‘what is’ (even when it no longer matters) and not apply their human ingenuity, be innovative and create new inventions from ‘what could be’ possible and through smart risk-taking to partner with AI in delivering innovative solutions in a disruptive world of complexity and unknowns.

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How Eavesdropping Can Unlocked Exponential Growth

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How Eavesdropping Can Unlocked Exponential Growth

GUEST POST from Robyn Bolton

It’s easy to get caught up in the hunt for unique insights that will transform your business, conquer your competition, and put you on an ever-accelerating path to growth. But sometimes, the most valuable insights can come from listening to customers in their natural environment. That’s precisely what happened when I eavesdropped on a conversation at a local pizza joint. What I learned could be worth millions to your business.

A guy walked into a pizza place.

Last Wednesday, I met a friend for lunch. As usual, I was unreasonably early to the local wood-fired pizza joint, so I settled into my chair, content to spend time engaged in one of my favorite activities – watching people and eavesdropping on their conversations.

Although the restaurant is on the main street of one of the wealthier Boston suburbs, it draws an eclectic crowd, so I was surprised when a rather burly man in a paint-stained hoodie flung open the front door. As he stomped to the take-out order window, dust fell from his shoes, and you could hear the clanging of tools in his tool belt. He placed his order and thumped down at the table next to me.

A Multi-Million Dollar Chat

He pulled out his cell phone and made a call. “Hey, yeah, I’m at the pizza place, and they need your help. Yeah, they hate their current system, but they don’t have the time to figure out a new one or how to convert. Yeah, ok, I’ll get his number. Ok if I give him yours. Great. Thanks.”

A few minutes later, his order was ready, and the manager walked over with his pizza.

Hoodie-guy: “Hey, do you have a card?”

Manager: “No, I don’t. Something I can help you with?”

H: “I just called a friend of mine. He runs an IT shop, and I told him you’re using the RST restaurant management system, and you hate it…”

M: “I hate it so much…”

H: “So my buddy’s business can help you change it. He’s helped other restaurants convert away from RST, and he’d love to talk to you or the owner.”

M: “I’m one of the co-owners, and I’d love to stop using RST, but we use it for everything – our website, online ordering, managing our books, everything. I can’t risk changing.”

H: “That’s the thing, my friend does it all for you. He’ll help you pick the new system, set it up, migrate you from the other system, and ensure everything runs smoothly. You have nothing to worry about.”

M: “That would be amazing. Here’s my direct line. Have him give me a call. And if he’s good, I can guarantee you that every other restaurant on this street will change, too. We all use RST, and we all hate it. We even talked about working together to find something better, but no one had time to figure everything out.”

They exchanged numbers, and the hoodie guy walked out with his pizza. The manager/owner walked back to the open kitchen, told his staff about the conversation, and they cheered. Cheered!

Are You Listening?

In just a few minutes of eavesdropping, I uncovered a potential goldmine for a B2B business – 15 frustrated customers, all desperate to switch from a system they hate but unable to do so due to time and resource constraints. The implications are staggering – an entire local market worth tens of millions of dollars ripe for the taking simply by being willing to listen and offer a solution.

As a B2B leader, the question is: are you truly tapping into the insights right in front of you? When was the last time you left your desk, observed your customers in their natural habitat, and listened to their unvarnished feedback? If you’re not doing that, you’re missing out on opportunities that could transform your business.

The choice is yours. Will you stay in your office and rely on well-worn tools, or venture into the wild and listen to your customers? Your answer could be worth millions.

Image credit: Pixabay

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The Surprising Downside of Collaboration in Problem-Solving

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The Surprising Downside of Collaboration in Problem-Solving

GUEST POST from Robyn Bolton

You are a natural-born problem solver. From the moment you were born, you’ve solved problems. Hungry? Start crying. Learning to walk? Stand up, take a step, fall over, repeat. Want to grow your business? Fall in love with a problem, then solve it more delightfully than anyone else.

Did you notice the slight shift in how you solve problems?

Initially, you solved problems on your own. As communication became easier, you started working with others. Now, you instinctively collaborate to solve complex problems, assembling teams to tackle challenges together.

But research indicates your instincts are wrong. In fact, while collaboration can be beneficial for gathering information, it hinders the process of developing innovative solutions. This counterintuitive finding has significant implications for how teams approach problem-solving.

What a Terrorism Study Reveals About Your Team

In a 2015 study, researchers used a simulation developed by the U.S. Department of Defense to examine how collaboration impacts the problem-solving process. 417 undergrads were randomly assigned to 16-person teams with varying levels of “interconnectedness” (clarity in their team structure and information-sharing permissions) and asked to solve aspects of an imaginary terrorist attack scenario, such as identifying the perpetrators and target. Teams had 25 minutes to tackle the problem, with monetary incentives for solving it quickly.

Highly interconnected teams “gathered 5 percent more information than the least-clustered groups because clustering prevented network members from unknowingly conducting duplicative searches. ‘By being in a cluster, individuals tended to contribute more to the collective exploration through information space—not from more search but rather by being more coordinated in their search,’”

The Least Interconnected teams developed 17.5% more theories and solutions and were more likely to develop the correct solution because they were less likely to “copy an incorrect theory from a neighbor.”

How You Can Help Your Team Create More Successful Solutions

You and your team rarely face problems as dire as terrorist attacks, but you can use these results to adapt your problem-solving practices and improve results.

Work together to gather and share information. This goes beyond emailing around research reports, interview summaries, and meeting notes. “Working together” requires your team to take action, like conducting interviews or writing surveys, with one another in real-time (not asynchronously through email, text, or “collaboration” platforms).
Start solving the problem alone. For example, at the start of every ideation session, I ask people to spend 5 minutes privately jotting down their ideas before group brainstorming. This prevents copying others’ theories and ensures all voices are heard. (not just the loudest or most senior)
Invite the “Unusual Suspects” into the process. Most executives know that diversity amplifies creativity, so they invite a mix of genders, ages, races, ethnicities, tenures, and industry experiences to brainstorming sessions. While that’s great, it also results in the same people being invited to every brainstorm and, ultimately, creating a highly interconnected group. So, mix it up even more. Invite people never before invited to brainstorming into the process. Instead of spending a day brainstorming, break it up into one-hour bursts at different times of the day.

Are You Willing to Take the Risk?

For most of your working life, collaboration has been the default approach to problem-solving. However, this research suggests that rethinking when and how to leverage collaboration can lead to greater success.

Making such a change isn’t easy – it invites skepticism and judgment as it deviates from the proven “status quo” process.

Are you willing to take that risk, separating information gathering from solution development, for the potential of achieving better, more innovative outcomes? Or will you remain content with “good enough” solutions from conventional methods?

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Learning to Innovate

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Learning to Innovate

GUEST POST from Janet Sernack

One of my coaching clients shared with me recently how she was feeling insecure in her job role and lacking motivation. The company she works for is acknowledged as an entrepreneurial industry leader. Because it is currently being challenged by poor sales performance, it has hunkered down and frozen any change initiatives, learning programs or new projects until mid-2025. My client is in a substantial Research and Development function, crucial to innovation, so we aimed to explore new ways of helping the company use their existing equipment (capital investments) and resources (people and expertise) to design and deliver low-cost and sustainable innovations to the market. To create a focused, meaningful, purposeful role and a values-based motivating opportunity for my client to be proactive, that impacts the company by adding value to the bottom line by improving productivity and cost efficiency because anyone can learn to innovate.

Learning to innovate

As a result of our short time together, my client felt confident and empowered, motivated and energized, to invest time in learning how to apply her current skills and strengths, focus and attention to connect with key people and resources, explore options globally for identifying new business development opportunities, and in developing her technical skillset.

My client enrolled in an online innovation learning program to learn to innovate by acquiring the fundamentals of mindset and behavior changes to shift their thinking and act differently.

The innovation imperative has shifted

Productivity growth needs to accelerate

According to McKinsey and Co, in the article “Investing in Productivity Growth” it’s not only time to raise investment and catch the next productivity wave; the world needs to and can accelerate productivity growth.

“Productivity growth means getting more from our work and our investments. It is especially needed now as the world faces the many challenges of a new geo-economic era. Productivity growth is the best antidote to the asset price inflation of the past two decades, which has created about $160 trillion in “paper wealth” and even larger amounts of new debt”.

Adapting to the new net zero reality

The world is currently not on track to meet net-zero targets, yet many opportunities are available to accelerate efforts and help meet de-carbonization goals. Whilst some progress has been made to reduce global carbon emissions, under the current trajectory, the world won’t achieve net-zero emissions even during this century. Again, according to McKinsey and Co., in an article “Adapting to the new net-zero reality”, mitigation efforts alone are no longer sufficient – the world will need to adapt as well by going green, ramping up technologies and increasing investments.

Improving cost efficiencies

According to new BCG research, corporate leaders are making better cost management a priority as a hedge against ongoing economic, financial, and political uncertainties, stating that:

“Wholesale cuts are one way to manage costs. However, drastic measures such as sudden workforce reductions may lead to unintended consequences because they fail to address the root causes of inefficiencies. Nor do they position an organization for future success”.

Generative Ai is a critical enabler of innovation

Whether the organization focuses on developing new products, services, processes, or business models, Generative AI (GenAI) can enhance and challenge the work of leaders and teams across all phases of the innovation cycle and process.

By learning to innovate through knowing how to generatively question and listen, reveal and challenge operating beliefs and test assumptions to enable them to emerge, diverge, converge and prioritize high-quality creative ideas for change.

According to BCG in a recent article, “To Drive Innovation with GenAI, Start by Questioning Your Assumptions.”

“GenAI’s most prominent contribution is in idea generation and validation—innovation’s divergence and convergence phases. Yet, it can play an even more critical role in helping leaders confront and update the strategic assumptions at the foundation of their business and innovation strategies: the doubt phase of the cycle. Organizations that regularly question their beliefs are more resilient because they are more likely to see and position themselves to benefit from the shifts on which competitive advantage turns”.

The innovation imperative is paradoxical.

Suppose we combine the contradictory features or qualities of developing productivity growth while adapting to the new net zero reality and improving cost efficiencies. In that case, many organizations have reverted to their conventional, business-as-usual focus, relying on Generative Ai to solve their problems.

This demonstrates a typically faddish response to a revolutionary, transformative new invention whilst being avoidant and resisting the urgent need to change by building the fundamental foundations in learning to innovate.

Thinking and acting differently

Anyone can learn to innovate, and it starts with allowing, accepting and acknowledging that a business-as-usual focus, avoiding risk, making the tough decisions and resisting change are no longer effective, profitable, or sustainable because:

We all know that doing the same thing and expecting a different result is the definition of insanity.
We can no longer afford to keep producing the same results that no one wants.
We can’t solve the problem with the same thinking that created it; we have to learn how to be, think and act differently to deliver the sustainable and innovative solution we want to have.

Learning to innovate requires a radical strategic shift

Harnessing collective intelligence

Anyone can learn to innovate; it’s simply a matter of knowing, combining, leveraging and scaling people’s multiple and collective intelligence – heads/cognition, hearts/emotions and hands/actions.

Revealing and closing knowing-doing gaps

Then, we should align these to close the significant knowing-doing gap or disconnect between what people know and what people do.

Everyone knows that innovation is the most impactful lever to use to scale and leverage change, yet are primarily unwilling to pause, stop and take time to retreat from their short-term focus, pay attention and reflect on how to equip people with the innovation fundamentals by getting people’s:

Heads to make sense of innovation and what innovation means by defining and framing it in their organization’s unique context, setting a strategic focus, determining the level of risk involved in achieving it, and mitigating the roadblocks that may arise.
Hearts aligned to embody and enact what innovation means by setting and sharing a passionately purposeful reason for innovation, building change receptivity and readiness for designing and delivering a range of bespoke deep learning processes and equipping people to activate it.
Hands dirty by creating a safe environment where people are encouraged to emerge and share creative ideas and permission and be allowed to experiment by making small bets and mistakes and learning by doing to know what not to do.

Innovation requires a strategic and systemic focus

Innovation is subjective and contextual, so it must be defined and framed in an organization’s unique context. It requires a strategic and systemic focus, so an organization needs to agree on whether they will choose an incremental, sustainable or disruptive strategy and the level of risk.

The 21st century requires us to unlearn, learn, and relearn a different set of mindsets, behaviors, and skills, and anyone can learn to innovate.

Commitment and conviction to learn to innovate

It’s only through being committed and having the conviction that my coaching client now has – to explore new ways of helping their organizations use their existing capital investments, collective intelligence, people resources, and expertise, supported by Generative AI and deep learning processes, to design and deliver low-cost and sustainable innovations to the market.

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Nike Should Stop Blaming Working from Home for Their Innovation Struggles

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GUEST POST from Robyn Bolton

“But even more importantly, our employees were working from home for two and a half years. And in hindsight, it turns out, it’s really hard to do bold, disruptive innovation, to develop a boldly disruptive shoe on Zoom.” – John Donahoe, Nike CEO

I am so glad CNBC’s interview with Nike’s CEO didn’t hit my feed until Friday afternoon. It sent me into a rage spiral that I am just barely emerging from. Seriously, I think my neighbors heard the string of expletives I unleashed after reading that quote, and it wasn’t because it was a lovely day and the windows were open.

Blaming remote work for lack of innovation is cowardly. And factually wrong.

I’m not the only one giving Mr. Donahoe some side-eye for this comment. “There were a whole bunch of brands who really thrived during and post-pandemic even though they were working remotely,” Matt Powell, advisor for Spurwink River and a senior advisor at BCE Consulting, told Footwear News. “So I’m not sure that we that we can blame remote work here on Nike’s issues.”

There’s data to back that up.

In 2023, Mark (Shuai) Ma, an associate professor at the University of Pittsburgh, and Yuye Ding, a PhD student at the university’s Katz Graduate School of Business, set out to empirically determine the causes and effects of a firm’s decision to mandate a return to work (RTO). They collected RTO mandate data from over 100 firms in the S&P 500, worked backward to identify what drove the decision, and monitored and measured the firm’s results after employees returned to work.

Their findings are stark: no significant changes in financial performance for firm value after RTO mandates and significant declines in employee job satisfaction. As Ma told Fortune, “Overall, our results do not support these mandates to increase firm values. Instead, these findings are consistent with managers using RTO mandates to reassert control over employees and blame employees as a scapegoat for firm bad performance.”

Or to justify spending more than $1B to double the size of its Beaverton, OR campus.

When you start blaming employees, you stop being a leader.

CEOs make and approve big, impactful, complex, high-stakes decisions. That’s why they get paid the big bucks. It’s also why, as Harry Truman said, “The buck stops here.”

Let’s examine some of the decisions Mr. Donahue made or supported that maybe (definitely) had a more significant impact on innovation than working from home two days a week.

Ignoring customers, consumers, and the market: Nike has a swagger that occasionally strays into arrogance. They set trends, steer culture, and dictate the rules of the game. They also think that gives them the right to stop listening to athletes, retailers, and consumers, as evidenced by the recently revealed Team USA Track & Field uniforms, the decision to stop selling through major retailers like Macy’s and Olympia Sports, and invest more in “hype, limited releases, and old school retro drops” than the technology and community that has consumers flocking to smaller brands like Hoka and Brooks.

Laying off 2% of its workforce: Anyone who has ever been through a layoff senses it’s coming months before the announcement and the verdicts are rendered. Psychological safety, feeling safe in your environment, is a required element for risk-taking and innovation. It’s hard to feel safe when saying goodbye to 1500 colleagues (and wondering if/when you’ll join them).

Investing too much in the core: Speaking of safety, in uncertain times, it’s tempting to pour every resource into the core business because the ROI is “known.” Nike gave in to that temptation, and consumers and analysts noticed. Despite recent new product announcements like the Air Max DN, Pegasus Premium, and Pegasus 41, “analysts point out these ‘new’ innovations rely too much on existing franchises.”

Innovation is a leadership problem that only leaders can solve

Being a CEO or any other senior executive is hard. The past four years have been anything but ordinary, and running a business while navigating a global pandemic, multiple societal upheavals, two wars, and an uncertain economy is almost impossible.

Bosses blame. Leaders inspire.

Mr. Donohue just showed us which one he is. Which one are you?

One MORE thing

This is a losing battle, but STOP USING “DISRUPTIVE” INCORRECTLY!!!! “Disruptive Innovation,” as defined by Clayton Christensen, who literally coined the phrase, is an innovation that appeals to non-consumers and is cheaper and often lower quality than existing competitors.

Nike is a premium brand that makes premium shoes for premium athletes. Employees could spend 24/7/365 in the office, and Nike would never develop and launch a “boldly disruptive shoe.”

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Time is a Flat Circle

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Jamie Dimon’s Comments on AI Just Proved It

Time is a Flat Circle

GUEST POST from Robyn Bolton

“Time is a flat circle. Everything we have done or will do we will do over and over and over and over again – forever.” –- Rusty Cohle, played by Matthew McConaughey, in True Detective

For the whole of human existence, we have created new things with no idea if, when, or how they will affect humanity, society, or business. New things can be a distraction, sucking up time and money and offering nothing in return. Or they can be a bridge to a better future.

As a leader, it’s your job to figure out which things are a bridge (i.e., innovation) and which things suck (i.e., shiny objects).

Innovation is a flat circle

The concept of eternal recurrence, that time repeats itself in an infinite loop, was first taught by Pythagoras (of Pythagorean theorem fame) in the 6^th century BC. It remerged (thereby proving its own truth) in Friedreich Nietzsche’s writings in the 19th century, then again in 2014’s first season of True Detective, and then again on Monday in Jamie Dimon’s Annual Letter to Shareholders.

Mr. Dimon, the CEO and Chairman of JPMorgan Chase & Co, first mentioned AI in his 2017 Letter to Shareholders. So, it wasn’t the mention of AI that was newsworthy. It was how it was mentioned. Before mentioning geopolitical risks, regulatory issues, or the recent acquisition of First Republic, Mr. Dimon spends nine paragraphs talking about AI, its impact on banking, and how JPMorgan Chase is responding.

Here’s a screenshot of the first two paragraphs:

JP Morgan Annual Letter 2017

He’s right. We don’t know “the full effect or the precise rate at which AI will change our business—or how it will affect society at large.” We were similarly clueless in 1436 (when the printing press was invented), 1712 (when the first commercially successful steam engine was invented), 1882 (when electricity was first commercially distributed), and 1993 (when the World Wide Web was released to the public).

Innovation, it seems, is also a flat circle.

Our response doesn’t have to be.

Historically, people responded to innovation in one of two ways: panic because it’s a sign of the apocalypse or rejoice because it will be our salvation. And those reactions aren’t confined to just “transformational” innovations. In 2015, a visiting professor at Kings College London declared that the humble eraser (1770) was “an instrument of the devil” because it creates “a culture of shame about error. It’s a way of lying to the world, which says, ‘I didn’t make a mistake. I got it right the first time.’”

Neither reaction is true. Fortunately, as time passes, more people recognize that the truth is somewhere between the apocalypse and salvation and that we can influence what that “between” place is through intentional experimentation and learning.

JPMorgan started experimenting with AI over a decade ago, well before most of its competitors. As a result, they “now have over 400 use cases in production in areas such as marketing, fraud, and risk” that are producing quantifiable financial value for the company.

It’s not just JPMorgan. Organizations as varied as John Deere, BMW, Amazon, the US Department of Energy, Vanguard, and Johns Hopkins Hospital have been experimenting with AI for years, trying to understand if and how it could improve their operations and enable them to serve customers better. Some experiments worked. Some didn’t. But every company brave enough to try learned something and, as a result, got smarter and more confident about “the full effect or the precise rate at which AI will change our business.”

You have free will. Use it to learn.

Cynics believe that time is a flat circle. Leaders believe it is an ever-ascending spiral, one in which we can learn, evolve, and influence what’s next. They also have the courage to act on (and invest in) that belief.

What do you believe? More importantly, what are you doing about it?

Image credit: Pixabay

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The Beginning, Middle, and End of Innovation

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And How Moneyball Fits In

The Beginning, Middle, and End of Innovation

GUEST POST from Robyn Bolton

Not long ago, pitchers and catchers reported to MLB Spring Training facilities in Florida and Arizona. For baseball fans, this is the first sign of Spring, an occasion that heralds months of warmth and sunshine, ballparks filled (hopefully) with cheering fans, dinners of beers and brats, and the undying belief that this year will be the year.

Of course, there’s still a lot of dark, dreary cold between now and Opening Day. Perfect weather for watching baseball movies – Bull Durham, Major League, The Natural, Field of Dreams, and, of course, Moneyball.

Moneyball is based on the book of the same name by Michael Lewis and chronicles the 2002 Oakland Athletics season. The ’02 Oakland A’s, led by General Manager Billy Beane (played by Brad Pitt), forever changed baseball by adopting an approach that valued rigorous statistical analysis over the collective wisdom of baseball insiders (coaches, scouts, front office personnel) when building a team. This approach, termed “Moneyball,” enabled the A’s to reach the postseason with a team that cost only $44M in salary, compared to the NY Yankees that spent $125M to achieve the same outcome.

While the whole movie (and book) is a testament to the courage and perseverance required to challenge and change the status quo, time and again I come back to three lines that perfectly sum up the journey of every successful intrapreneur I’ve ever met.

The Beginning

“I know you’ve taken it in the teeth out there, but the first guy through the wall…he always gets bloody…always always gets bloody. This is threatening not just a way of doing business… but in their minds, it’s threatening the game. Really what it’s threatening is their livelihood, their jobs. It’s threatening the way they do things… and every time that happens, whether it’s the government, a way of doing business, whatever, the people who are holding the reins – they have their hands on the switch – they go batshit crazy.”John Henry, Owner of the Boston Red Sox

Context

The 2002 season is over, and the A’s were eliminated in the first round of the playoffs. John Henry, an owner of the Boston Red Sox, has invited Bill Beane to Boston to offer him the Red Sox GM job.

Lesson

This is what you sign up for when you decide to be an Intrapreneur. The more you challenge the status quo, the more you question how business is done, the more you ask Why and demand an answer, the closer you get to “tak(ing) it in the teeth.”

This is why courage, perseverance, and an unshakeable belief that things can and should be better are absolutely essential for intrapreneurs. Your job is to run at the wall over and over until you get through it.

People will follow. The Red Sox did. They won the World Series in 2004, breaking an 84-year-old curse.

The Middle

“It’s a process, it’s a process, it’s a process” — Bill Beane

Context

Billy has to convince the ballplayers to forget all the habits that made them great and embrace the philosophy of Moneyball. To stop stealing bases, turning double plays on bunts, and swinging for the fences and to start taking walks, throwing to first for the easy out, and prioritize getting on base over hitting a home run.

The players are confused and frustrated. Suddenly, everything that they once did right is wrong and what was not valued is deeply prized.

Lesson

Innovation is something new that creates value. Something new doesn’t just require change, it requires people to stop doing things that work and start doing things that seem strange or even wrong.

Change doesn’t happen overnight. It’s not a switch to be flipped. It’s a process to be learned. It takes time, practice, reminders, and patience.

The End

“When you get an answer you’re looking for, hang up.” — Billy Beane

Context

In this scene, Billy has offered one of his players to multiple teams, searching for the best deal. When the phone rings with a deal he likes, he and the other General Manager (GM) agree to it, Billy hangs up. Even though the other GM was in the middle of a sentence. When Peter Brand, the Assistant GM played by Jonah Hill, points out that Billy had just hung up on the other GM, Billy responds with this nugget of wisdom.

Lesson

It’s advice intrapreneurs should take very much to heart. I often see Innovation teams walk into management presentations with long presentations, full of data and projections, anxious to share their progress, and hoping for continued funding and support. When the meeting starts, a senior exec will say something like, “We’re excited by the progress we’re hearing about and what it will take to continue.”

That’s the cue to “hang up.”

Instead of starting the presentation from the beginning, start with “what it will take to continue.” You got the answer you’re looking for – they’re excited about the progress you’ve made – don’t spend time giving them the info they already have or, worse, could raise questions and dim their enthusiasm. Hang up on the conversation you want to have and have the conversation they want to have.

In closing

Moneyball was an innovation that fundamentally changed one of the most tradition-bound businesses in sports. To be successful, it required someone willing to take it in the teeth, to coach people through a process, and to hang up when they got the answer they wanted. It wasn’t easy but real change rarely is.

The same is true in corporations. They need their own Bill Beanes.

Are you willing to step up to the plate?

Image credit: Wikimedia Commons

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Positive Power of Negative Emotions Drive Change

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Positive Power of Negative Emotions Drive Change

GUEST POST from Robyn Bolton

You want to make life better for others. This desire is reflected in the optimism and positivity of your language – create value, love the problem, and delight the customer. But making life better requires change, and, as the adage goes, “People want change, but they don’t want to be changed.”

You are confident that the solution you created will make life better and that the change people need to make is quite small and painless, well worth the dramatic improvement you offer. Yet they resist. No amount of explaining, showing, convincing, or cajoling changes their mind. What else can you do?

To quote Darth Vader, “Give yourself to the Dark Side. It is the only way to save your friends.”

“If only you knew the power of the Dark Side…”

The Dark Side is populated by “negative” emotions like anger, fear, and frustration, which are incredibly powerful.

Consider that:

Negative events are remembered more accurately and in greater detail than positive events
Six positive comments are required to offset the effect of one negative comment
60% of people make purchases fueled by their fear of missing out (FOMO)

Unfortunately, these are also some of the first emotions experienced when confronting change.

Change requires people to let go of what they know in exchange for the promise of something better. This immediately triggers Loss Aversion, the cognitive bias in which the pain of losing is psychologically twice as powerful as the pleasure of gaining.

As a result, people won’t let go of what they know until the pain of holding on becomes unbearable. When you point out the problems and pain of the current situation, you help people understand and experience the unbearableness of the current situation.

“Anger, fear, aggression; the Dark Side of the Force are they”

Not every “negative” emotion elicits the same behavior, so carefully choose the one to tap into.

Fear motivates people to seek safety, which can be good if your solution truly offers a safer alternative. It’s a motivator used well by companies such as Volvo, SimpliSafe, and Graco. But lean on it too much, and people may feel overwhelmed and remain frozen to the status quo.

Anger motivates people to take risks, which can be good when the change requires bold decisions and dogged persistence. It can be great when it bonds people together to achieve a shared goal or protect a common value. Apple used this emotion to brilliant effect in its famous “1984” commercial announcing the launch of Macintosh. But incite too much anger, and things can get broken and not in a helpful way like Apple’s ad.

Frustration, one of the emotions that often drives aggression, is anger’s polite little sister. When people feel frustrated, they’re likely to act, persistently pursue solutions, and creatively approach and overcome obstacles. But if the change is big, feels scary, and puts their sense of self at risk, frustration isn’t powerful enough to convince people to let go of the old and embrace the new.

“If you start down the dark path, forever will it dominate your destiny.”

Yoda is incredibly wise, but he gets this one wrong. Using the Dark Side to speak to people’s “negative” emotions doesn’t doom you to a life or career of fear-mongering or inciting violence. Start here, don’t stay here.

Multiple research studies show that positive emotions, like hope and joy, are more powerful than negative ones in maintaining motivation and even enable more creative thinking and problem-solving. By speaking to both negative and positive emotions, the Dark Side and the Light, you enable change by giving people a reason to let go of the past and a future worth reaching for.

When people stop resisting and start reaching to the future you’re offering, change happens, and you realize that Yoda was right, “Luminous beings are we, not this crude matter.”

Image credit: Pixabay

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Good Intentions Pave the Way to Innovation Hell

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The road to hell is paved with good intentions, and nowhere is that more true than in innovation.

Good Intentions Pave the Way to Innovation Hell

GUEST POST from Robyn Bolton

That’s one of the insights I took away from InnoLead’s Q1 report on corporate innovation priorities. The report is an eye-opening look at the impact of AI on corporate innovation as experienced by corporate entrepreneurs themselves. But before deep diving into that topic, the report’s authors shared intriguing data about member companies’ innovation structure, leadership engagement, organizational connections, and results. Nestled amongst the charts were several that, when taken together, got my Spidey senses tingling.

61.0% of innovation teams are “directly under a high-visibility leader with a broad company focus.”

This is great because innovation needs senior leaders’ support and active engagement to survive, let alone survive for long enough to produce meaningful results. Add this to the fact that 45% of senior leadership teams frequently discuss the “progress and value of the innovation program,” and all signs point to innovation as a strategic priority.

But (you knew there was a but, didn’t you)…

If “broad company focus” means “no P&L responsibility,” we have a problem. In every for-profit company I’ve worked for and with, people with P&L responsibility have greater power, influence, and access to resources than people without a P&L. This division may not feel fair, but it makes sense – the people who bring in profit and revenue will always be more influential than people who represent “cost centers.”

You can see the impact of P&L owners who are, understandably, focused entirely on delivering short-term results throughout the report – 75% of companies have shifted their focus more towards near-term priorities, and 61% shifted their innovation portfolio away from Horizon 3 (also known as radical, breakthrough, or disruptive innovation).

As for all those discussions, it’d be great if they focused on walking the talk of innovation. But suppose it’s only innovation platitudes or, worse, questioning innovation’s ROI. That doesn’t bode well for the “high-visibility leader with broad company focus,” the innovation team, or the company’s culture.

71.2% of innovation teams’ customers or business partners are unaware of the team’s existence, don’t engage, or engage only occasionally.

Welcome to Innovation Island! Where the cool people work on cool things in cool offices while all you drones slave away doing the same thing you’ve always done and making the money that pays for the cool people to do cool things in their cool offices.

I’m sure this isn’t the message the innovation team intends to send, but it’s the one received by most organizations.

When arguing for Innovation Island, managers often point to the organizational antibodies likely to swarm and kill H3/radical/breakthrough innovation and even some H2/adjacent innovations. They’re right, and those innovations must be “protected.” But not every innovation needs protection. H2 and certainly H1 innovations, where most portfolios are now, should be shared with the core business because the core business will eventually run them.

The bigger problem, in my opinion, is that innovation teams don’t seem to be reaching out to others in the organization. Like the P&L owners they report to, people in the core business are busy running the business and generating revenue. Very few have the time or energy to seek out the innovation team to discuss and explore innovation. Companies that want to build a culture of innovation need to turn their innovators into evangelists, not residents of an island connected to the mainland by a single drawbridge.

23.4% of innovation teams are considered outsiders or actively undermined by other functions and business units.

This may not sound bad, but add to it the 55.0% that are “somewhat integrated with occasional collaboration” with other departments and business units, and you may be tempted to believe that Innovation Island would be wise to invest in a surface-to-air missile defense system.

Sadly, this perception of the innovation team as “The Others” isn’t surprising when considering that the most important tactic for building a relationship between innovation and the functions or business units is already having strong relationships and interpersonal trust (75.3% of respondents). The least effective (4.7% of respondents) is “writing down shared objectives and expectations.” So, no, the email you sent is not enough to win friends and influence people.

Bottom line

Well-intended companies appoint a senior executive to lead the innovation team because they’ve been told that doing so is powerful proof that innovation is a strategic priority. They hire outsiders to inject new thinking into the organization because they know that “what got you here won’t get you there.” They cordon the team and their work off from the rest of the organization because they read that separation is essential to preserving innovation’s disruptive nature.

But if the senior executive doesn’t have the organizational power and influence that comes with P&L ownership, the team doesn’t have strong personal relationships with others in the business, and other functions and business units don’t know the team exists or how to interact with it, innovation will go nowhere.

But that’s better than where it could go.

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