Tag Archives: digital transformation

Bringing Yin and Yang to the Productivity Zone

GUEST POST from Geoffrey A. Moore

Digital transformation is hardly new. Advances in computing create more powerful infrastructure which in turn enables more productive operating models which in turn can enable wholly new business models. From mainframes to minicomputers to PCs to the Internet to the Worldwide Web to cloud computing to mobile apps to social media to generative AI, the hits just keep on coming, and every IT organization is asked to both keep the current systems running and to enable the enterprise to catch the next wave. And that’s a problem.

The dynamics of productivity involve a yin and yang exchange between systems that improve efficiency and programs that improve effectiveness. Systems, in this model, are intended to maintain state, with as little friction as possible. Programs, in this model, are intended to change state, with maximum impact within minimal time. Each has its own governance model, and the two must not be blended.

It is a rare IT organization that does not know how to maintain its own systems. That’s Job 1, and the decision rights belong to the org itself. But many IT organizations lose their way when it comes to programs—specifically, the digital transformation initiatives that are re-engineering business processes across every sector of the global economy. They do not lose their way with respect to the technology of the systems. They are missing the boat on the management of the programs.

Specifically, when the CEO champions the next big thing, and IT gets a big chunk of funding, the IT leader commits to making it all happen. This is a mistake. Digital transformation entails re-engineering one or more operating models. These models are executed by organizations outside of IT. For the transformation to occur, the people in these organizations need to change their behavior, often drastically. IT cannot—indeed, must not—commit to this outcome. Change management is the responsibility of the consuming organization, not the delivery organization. In other words, programs must be pulled. They cannot be pushed. IT in its enthusiasm may believe it can evangelize the new operating model because people will just love it. Let me assure you—they won’t. Everybody endorses change as long as other people have to be the ones to do it. No one likes to move their own cheese.

Given all that, here’s the playbook to follow:

If it is a program, the head of the operating unit that must change its behavior has to sponsor the change and pull the program in. Absent this commitment, the program simply must not be initiated.
To govern the program, the Program Management Office needs a team of four, consisting of the consuming executive, the IT executive, the IT project manager, and the consuming organization’s program manager. The program manager, not the IT manager, is responsible for change management.
The program is defined by a performance contract that uses a current state/future state contrast to establish the criteria for program completion. Until the future state is achieved, the program is not completed.
Once the future state is achieved, then the IT manager is responsible for securing the system that will maintain state going forward.

Delivering programs that do not change state is the biggest source of waste in the Productivity Zone. There is an easy fix for this. Just say No.

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

Image Credit: Unsplash

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5 Tips for Leaders Navigating Uncertainty

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From Executives at P&G, CVS, Hannaford, and Intel

5 Tips for Leaders Navigating Uncertainty

GUEST POST from Robyn Bolton

“We have successfully retained the opportunity for improvement.”

When the CEO said this to kick off a meeting, I knew we were in for an adventure. He smirked at the corporate double-speak, paused for the laughter, then outlined all the headwinds facing the business. But the only thing I remember from that meeting was his opening line.

I think about it all the time. Because it seems to apply all the time.

And despite the turmoil brought on by a pandemic, a war, and an economic slowdown, we have successfully retained the opportunity to improve how we deal with uncertainty.

That isn’t to say we haven’t improved over the past three years. In fact, at an event sponsored by NextUp, four executives from P&G, CVS, Hannaford, and Intel shared what they learned and how they changed while navigating uncertainty.

Listen more

Dave DeJohn, Director of Operations for Hannaford, talked about the importance of listening deeply and constantly to employees, especially those on the front lines. Consistent with its core values of family, community, quality, and value, store associates are trained that the customer is always right. However, as incidents of verbal abuse increased during the lockdowns, employee satisfaction and mental health declined. By closely listening and observing what was happening in stores, Hannaford’s leadership modified their customer service approach to “the customer is always right, within reason” and empowered employees to stand up for themselves and each other when faced with hostile shoppers.

Stronger relationships lead to stronger results

Every executive shared stories from the early days of working from home – technical glitches, kids invading calls, and even cats positioning themselves awkwardly in front of cameras when the human stepped away. Far from being signals of a lack of commitment or professionalism, these moments transformed roles and titles into human beings, juggling all the things humans must juggle. Once people started seeing others as fellow humans versus bosses, peers, or subordinates, they connected on a human level and formed genuine and trusting relationships. Those relationships led to better collaboration, more effective troubleshooting, and better business results.

Concise concrete communication is critical

In periods of uncertainty, information is power. But it’s also constantly changing. For that reason, constant communication is a must. But in a large organization, communication often comes from multiple departments – employee relations, HR, health and safety, operations, and marketing, to name a few – and that can be overwhelming. For this reason, DeJohn learned that keeping every message concise (ideally the length of a tweet but no more than a short paragraph) and concrete (specific, tangible, tactical rather than high-level platitudes) proved critical to keeping people aligned and moving forward.

Just because you can, doesn’t mean you need to

Keris Clark, VP of Sales at P&G, spoke about the drastic shift in her work/life balance when she could no longer travel to see customers or attend meetings. Instead of taking the first flight from Boston to Seattle for a meeting and then a red-eye back home, she suddenly had time to work out, cook, and spend time with family. As travel became safer and invitations to far-away meetings came in, she thought more critically about whether or not to book the tickets. Like most of us, she still travels for some things, but it’s no longer the default option now that more people are used to video calls and other ways of working.

We can do things differently and still deliver

COVID’s effect on the supply chain is well documented, and Tiffiny Fisher, Chief of Staff and Technical Assistant for Intel’s America region, gave us a view into Intel’s situation in the earliest days of the pandemic. With fabrication, assembly, and testing sites throughout Asia, Intel had to work quickly to figure out how to continue operating while staying with government lockdown guidelines. Ultimately, hundreds of employees volunteered to leave their families and live in hotels near Intel facilities so that they could continue operating. It was a huge sacrifice by employees and probably not one that anyone would want to make again. Still, it proved that Intel, with the support of its employees, could quickly make massive changes to its operations while continuing to deliver results.

Uncertainty can be deeply uncomfortable, even frightening, even though we face it every day. Building the skills to navigate it and learning lessons about what works and doesn’t can make it easier. But if you still struggle, don’t worry. It just means you’ve successfully retained the opportunity for improvement.

Image credit: Pixabay

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Basketball, Banks and Banana Splits

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Is failure everywhere?

Basketball, Banks and Banana Splits

GUEST POST from Robyn Bolton

When asked to describe his test for determining what is and isn’t hard-core pornography, Supreme Court Justice Potter Stewart responded, “I know it when I see it.”

In that sense, pornography and failure may have a lot in common.

By accident, I spent the month of April thinking, writing (here and here), and talking about failure. Then, in the last week, a bank failed, two top-seeded sports teams were eliminated in the first round of the playoffs, and the New York Times wrote a feature article on the new practice of celebrating college rejections.

Failure was everywhere.

But was it?

SVB, Signature, First Republic – Failure.

On Monday, First Republic Bank became the third bank this year to fail. Like Silicon Valley Bank and Signature Bank, it met the definition of bank failure according to the FDIC – “the closing of a bank by a federal or state banking regulatory agency…[because] it is unable to meet its obligations to depositors and others.”

It doesn’t matter if the bank is a central part of the entrepreneurial ecosystem, is on the cutting edge of new financial instruments like cryptocurrency, or caters to high-net-worth individuals. When you give money to a bank, an institution created to keep your money safe, and it cannot give it back because it spent it, that is a failure.

Milwaukee Bucks – Failure?

Even if you’re not an NBA fan, you probably heard about the Milwaukee Bucks star Giannis Antetokounmpo’s interview after the team’s playoff elimination.

Here’s some quick context – the Milwaukee Bucks had the best regular season record and were widely favored to win the title. Instead, they lost in Game 5 to the 8^th-ranked Miami Heat. After the game, a reporter asked Antetokounmpo if he viewed the season as a failure, to which Antetokounmpo responded:

“It’s not a failure; it’s steps to success. There’s always steps to it. Michael Jordan played 15 years, won six championships. The other nine years was a failure? That’s what you’re telling me? It’s a wrong question; there’s no failure in sports.”

If you haven’t seen the whole clip, it’s worth your time:

The media went nuts, fawning over Antetokounmpo’s thoughtful and philosophical response, the epitome of an athlete who gives his all and is graceful in defeat. One writer even went so far as to proclaim that “Antetokounmpo showed us another way to live.”

But not everyone shared that perspective. In the post-game show, four-time NBA champion Shaquille O’Neal was one of the first to disagree,

“I played 19 seasons and failed 15 seasons; when I didn’t win it, it was a failure, especially when I made it to the finals versus the (Houston) Rockets and lost, made it to the finals for the fourth time with the (Los Angeles) Lakers and lost, it was definitely a failure.

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I can’t tell everybody how they think, but when I watch guys before me, the Birds, the Kareems, and you know that’s how they thought, so that’s how I was raised.

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He’s not a failure as a player, but is it a failure as a season? I would say yes, but I also like his explanation. I can understand and respect his explanation, but for me, when we didn’t win it, it was always my fault, and it was definitely a failure.”

Did Antetokounmpo fail? Are the Bucks a failure? Was their season a failure?

It depends.

College Rejections – Not Failure

Failure is rarely fun, but it can be absolutely devastating if all you’ve ever known is success. Just ask anyone who has ever applied to college. Whether it was slowly opening the mailbox to see if it contained a big envelope or a small one or hesitatingly opening an email to get the verdict, the college application process is often the first time people get a taste of failure.

Now, they also get a taste of ice cream.

Around the world, schools are using the college application and rejection process as a learning experience:

LA: Seniors gather to feed their rejection letters into a shredder and receive an ice cream sundae. The student with the most rejections receives a Barnes & Noble gift card. “You have to learn that you will survive and there is a rainbow at the other end,” said one of the college counselors.
NYC: After adding their rejection letters to the Rejection Wall, students pull a prize from the rejection grab bag and enjoy encouraging notes from classmates like, “You’re too sexy for Vassar” or “You’ve been rejected, you’re too smart. Love, NYU.”
Sydney, Australia: a professor started a Rejection Wall of Fame after receiving two rejections in one day, sharing his disappointment with a colleague only to hear how reassured they were that they weren’t alone.

“I know it when I see it” – Failure

I still don’t know a single definition or objective test for failure.

But I do know that using “I’ll know it when I see it” to define failure is a failure.

It’s a failure because we can define success and failure before we start.

Sometimes failure is easy to define – if you are a bank and I give you money, and you don’t give it back to me with interest, that is a failure. Sometimes the definition is subjective and even personal, like defining failure as not making the playoffs vs. not winning a championship, or not applying to a school vs. not getting in.

Maybe failure is everywhere. Maybe it’s not.

I’ll know it when I define it.

Image credit: Pixabay

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What is Failure?

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What is Failure?

GUEST POST from Robyn Bolton

A couple of weeks ago, I wrote about my hatred of failure while acknowledging that there are things I hate more (inertia, blind allegiance to the status quo, unwillingness to try) that motivate me to risk it.

In response, I received this email from my friend and former colleague Daymara, now the Founder & CEO of Rockin’ Baker in Fayetteville, AR (shared here with her permission)

I’m the opposite. I love failing! That’s when I learn the most, that I question what and how I could better, question more and more. It triggers my brain to look back, re-evaluate, assess and spring forward. I wouldn’t be here today if I had not risked. I don’t think anyone starts anything thinking when they’d fail. But some of us aren’t afraid or hate it. I wouldn’t be here if I hate failing, wouldn’t have left my country looking for a safer place, wouldn’t have launched RBI because I didn’t have any entrepreneurial experience not even in the hospitality industry, wouldn’t have switched to focus on neurodiversity and so much more.

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Because I came to the US, I got to meet you. Yes, I failed at seeing the signs & lost over 60% of my savings just 2 weeks before leaving Venezuela. I could’ve decided to stay because maybe it was going to be harder and the risk of failing in a country I didn’t know higher. I had a plan. If it didn’t work, come back home & start all over again.

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I started RBI understanding that I could fail. I told myself, if I did, at least I would have an answer. Yes, I’m failing terribly at making this social enterprise work. Yet, I’ve gained so much knowledge about humanity, our differences, the unfairness that neurodivergents have to live daily, running a social enterprise and so much more. If I had hated failing, I wouldn’t be sharing my experience with other entrepreneurs so they don’t make the same mistakes I made. I wouldn’t be advocating for more equitable places for all, including women.

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Failing feeds me to do better, to ask more questions, to explore more, to lead me to become better. I don’t love failing, I welcome it.

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My first thought was, “Wow, this is so healthy! I wish more people felt and acted this way!”

My second thought was, “I wouldn’t apply the word ‘fail’ to any of these situations. You’re trying, learning, changing, and trying again.:

Just because you don’t get the expected outcome the first time doesn’t mean you failed.

Or does it?

What the Dictionary Says

According to Oxford Languages, “fail” (verb) means

Be unsuccessful in achieving one’s goal, “he failed in his attempt to secure election.”
Neglect to do something, “the firm failed to give adequate risk warnings.”
Break down; cease to work well, “a truck whose brakes had failed.”

True but contextual:

If success is defined as launching a new product, but customer feedback proves there’s no demand or willingness to pay, is shutting it down a failure?
If you neglect something that isn’t important or doesn’t have significant ramifications, like not eating breakfast, did you fail or simply forget, run out of time, or make a mistake?
If something works but not well, like an expense reporting system, is it a failure or just burdensome, a pain, or a necessary evil?

Also, incomplete.

What People Say

“Fail” has so many definitions and meanings in Daymara’s telling of her story. In addition to some of the dictionary’s definitions, she also uses “Fail” to mean:

Take smart risks, “I could’ve decided to stay because maybe it was going to be harder and the risk of failing in a country I didn’t know higher. I had a plan. If it didn’t work, come back home & start all over again.”
Get new information to facilitate learning,
- “I’m the opposite. I love failing! That’s when I learn the most, that I question what and how I could better, question more and more. It triggers my brain to look back, re-evaluate, assess and spring forward.”
- I started RBI understanding that I could fail. I told myself, if I did, at least I would have an answer.
Adapt and change based on learning, “wouldn’t have switched to focus on neurodiversity”
Grow, improve, evolve, “Failing feeds me to do better, to ask more questions, to explore more, to lead me to become better. I don’t love failing, I welcome it.”

What Do You Say?

Like “Innovation,” “Failure” is a word we all use A LOT that no longer has a common definition. In the dictionary, failure is bad and to be avoided. To Daymara and scores of entrepreneurs and innovators, failure is wonderful and welcome.

Progress, either towards or away from failure, requires us to define “Failure” for ourselves and our work and agree on a definition with our teammates.

So, tell me:

What is failure to you?
To your team?
To your boss?

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A Tipping Point for Organizational Culture

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A Tipping Point for Organizational Culture

GUEST POST from Janet Sernack

Like millions of others globally, I watched with fascination, the sensational and striking spectacle of the ceremony, significant symbolism, spectacular artifacts, and rituals at the recent King of England’s majestic coronation. At the same time, I allowed my mind to wander and wondered how this visually stunning and unrivaled British ceremony would impact the nations and realms’ culture and leadership, today and in the future, wondering if, indeed, it is at a cultural tipping point.

Where it is believed, by some, that the coronation made “two statements of great importance for today’s world about the place of religion in public life and the importance and meaning of the nation”. Acknowledging that such a monumental and marvelous event is indicative of a cultural tipping point, not only for the people it embraces but also for organizations, nations, and realms as a whole, to search for what is meaningful and valued by its people.

Making the connection

My mind wandered and made some obvious connections between the core and common elements that embody both organizational, and national cultural realms – the values, beliefs, assumptions, and mindsets that drive key behaviors and deliver the common implicit messages. As well as the disciplined systems and processes that deliver the results, the rituals that are enacted, and finally, the artifacts whose symbols represent what the culture values.

Maintaining relevance and engagement

Like the monarchy, what do organizations need to do to maintain relevance and engagement to thrive in unstable and uncertain times, especially when their existence and legacies are being questioned and evaluated by the people they serve?

At a pivotal time when new sets of global, societal, and organizational demands are being made, largely as a result of the fourth industrial revolution, encompassing the convergence of exponential technologies impacting all of us globally.

At the same time, we are all still affected by the consequences of the global pandemic-induced lockdowns, impacting every fabric of our social and civic structures in our world today.

A case study for leveraging cultural tipping points differently

The coronation of King Charles III provides us with a great case study of an outstanding and remarkable display of English cultural attributes.

This enables us to ask some serious questions about how national and organizational cultures and leadership in times of exponential change, like today, might thrive with uncertainty and co-create solutions to some of the most complex global challenges, by leveraging the range of cultural tipping points differently.

A range of organizational cultural tipping points

We are in effect, experiencing globally a range of cultural tipping points:

At the macro level, according to a recent article here in Australia, where King Charles still resides as our head of state, the local SMH states that this realm is in a state of flux:

“The King is head of state in 15 countries. More than half of the so-called “realm states” are in the Caribbean and most of them are bailing out. Barbados two years ago, Jamaica probably next year. Belize, Grenada, Saint Vincent and the Grenadines are planning their exit as well”.

At the micro level, according to Mc Kinsey & Co, in a recent article “New Leadership for a new era of thriving organizations” stated that organizations and leadership are also in a state of flux:

“Organizations such as Allianz, Haier, Microsoft, and Nucor are transforming their industries with a new organizational approach that seeks to be open, fluid, and adaptable; unleashes the collective energy, passion, and capabilities of its people; reimagines strategy; and focuses on delivering greater value to all stakeholders”.

“Their cultures support a more open, collaborative, and emergent way of working. And the shift to this new kind of model changes the way businesspeople must lead”.

Going back to culture and leadership fundamentals

Because culture and leadership are, according to Edgar H. Schein “two sides of the same coin and cannot understand one without the other” we have to be in charge and focused to intentionally, constructively, and creatively manage their interdependence.

He also states that culture matters because it is a “powerful, tacit, and often unconscious set of forces that determine both our individual and collective behaviors, ways of perceiving, thought patterns, and values”.

If we do not intentionally and strategically take charge, focus, and leverage these forces, we will simply always be at the effect of them, as they take us down the path of least resistance, remain implicit, and will not deliver the results we want and need in a disruptive world.

Going back to culture and leadership fundamentals

Sharing the key messages

My mind then wandered and considered what might be the key messages being communicated by this incredible series of marvelous events, and wondered how relevant and engaging they might be to people today:

A coronation signals the conferment of God’s grace upon a ruler,
A coronation appoints the king as the Supreme Governor of the Church of England,
A coronation is a joyous and celebratory event.

Back to the SMH “The people got what they wanted. The cheers in the Mall, the boulevard built for the adoration of royalty, were real, even if the masses were down on those for the Queen’s Jubilee.”

Impacting the future

It remains to be seen if this powerful, majestic, memorable, and significant once-in-a-lifetime ceremonial event will ultimately help unify or divide the English realm. Which it seems, is facing its own range of unique challenges and a controversial cultural tipping point, ultimately and seriously impacting its future viability.

Back to the SMH “But Charles’s big show might be his last great day. The last dance of a wheeling, brilliant circus that has entertained and beguiled but which soon enough, in its distant realms, will stutter and shrink and reel no more.”

Why does this matter?

This matters today because we are individually, and collectively at a range of social, civic, and organizational cultural tipping points.

Where our organization and leaders are also dancing many of our “last dances”, and “stutter and shrink and reel nor more” because, according to some, we are not strategically focussed on leveraging the culture and leadership basics:

Implicitly clarifying values that focus on delivering value that improves the quality of people’s lives that they appreciate and cherish and explicitly making them an active part of corporate life.
Ensuring that leaders role model and enact behaviors that demonstrate the values in action, where people are accountable and rewarded by rigorous systems and supportive disciplined, and agile processes.
Co-creating powerful sets of rituals, symbols, and artifacts, aligned to the values, that deliver the “new architectures” to create permission, safety, and trust that drive collaboration, experimentation, innovation, inclusion, and sustainability.
Communicating engaging and inclusive messages that resonate creativity, respect, and appreciation for people, profit, and the planet.

Shifting the organizational cultural tipping points

It’s time to transform leadership to transform organizations, in ways that are self-aware and inspiring, meaningful and purposeful, equitable and sustainable, with increasing speed, resilience, and efficiency to guide organizational cultures and leadership that:

Helps people navigate and balance in-person and remote work, be mentally healthy and well, and make the way for both applied AI and human skills development.
Develops new rules for attracting and retaining people, close the capability chasm and walk the talent tightropes to better equip, empower and harness people’s harness collective intelligence to make both the organization and the world better places.
Creates, invents, and innovates new ways of thinking, and acting that ultimately shift the range of cultural tipping points to meet new sets of global, societal, and organizational demands and challenges emerging in the 21^st century, and lets go of what is no longer relevant to better serve humanity as a whole.

Find out more about our work at ImagineNation™

Find out about our collective, learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack, is a collaborative, intimate, and deeply personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, which 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. Find out more about our products and tools.

Image Credit: Pixabay

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3 Innovation Types Not What You Think They Are

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But They Do Determine Your Success

3 Innovation Types Not What You Think They Are

GUEST POST from Robyn Bolton

The Official Story

When discussing innovation, you must be specific so people know what you expect. This is why so many thought leaders, consultants, and practitioners preach the importance of defining different types of innovation.

Clayton Christensen encourages focusing on WHY innovation is happening – improve performance, improve efficiency, or create markets – in his 2014 HBR article.
The classic Core/Adjacent/Transformational model focuses on WHAT is changing – target customer, offering, financial model, and resources and processes.
McKinsey’s 3 Horizons focus on WHEN the results are achieved – this year, 2-3 years, 3-6 years.

It’s easy to get overwhelmed by the options and worry about which approach is “best.” But, like all frameworks, they’re all a little bit right and a little bit wrong, and the best one is the one that will be used and get results in your organization.

The REAL story

Everything in the official story is true, but not the whole truth.

“Innovation” is not peanut butter.

You can’t smear it all over everything and expect deliciousness.

When doing innovation, you must remember your customer – the executives who make decisions, allocate resources, and can accelerate or decimate your efforts.

More importantly, you need to remember their Jobs to be Done (JTBD) – keep my job, feel safe and respected, and be perceived as competent/a rising star – because these jobs define the innovations that will get to market.

Three (3) REAL types of innovation

SAFE – The delightful solution to decision-makers’ JTBD

Most closely aligned with Core innovation, improving performance or efficiency, and Horizon 1 because the focus is on improving what exists in a way that will generate revenue this year or next. Decision-makers feel confident because they’ve “been there and done that” (heck, doing “that” is probably what got them promoted in the first place). In fact, they’re more likely to get in trouble for NOT investing in these types of innovations than they are for investing in them.

STRETCH – The Good Enough solution

Most like Adjacent innovation because they allow decision-makers to keep one foot in the known while “stretching” their other foot into a new (to them) area. This type of innovation makes decision-makers nervous because they don’t have all the answers, but they feel like they at least know what questions to ask. Progress will require more data, and decisions will take longer than most intrapreneurs want. But eventually, enough time and resources (and ego/reputation) will be invested that, unless the team recommends killing it, the project will launch.

SPLATTER – The Terrible solution

No matter what you call them – transformational, radical, breakthrough, disruptive, or moonshots – these innovations make everyone’s eyes light up before reality kicks in and crushes our dreams. These innovations “define the next chapter of our business” and “disrupt ourselves before we’re disrupted.” These innovations also require decision-makers to let go of everything they know and wander entirely into the unknown. To invest resources in the hope of seeing the return (and reward) come back to their successor (or successor’s successor). To defend their decisions, their team, and themselves when things don’t go exactly as planned.

How to find the REAL type that will get real results.

“You said you want X. Would you describe that for me?” (you may need to give examples). When I worked at Clayton Christensen’s firm, executives would always call and ask for our help to create a disruptive innovation. When I would explain what they were actually asking for (something with “good enough” performance and a low selling price that appeals to non-consumers), they would back away from the table, wave their hands, and say, “Oh, not that. We don’t want that.”
“How much are you willing to risk?” If they’re willing to go to their boss to ask for resources, they’re willing to Stretch. If they’re willing to get fired, they’re willing to Splatter. If everything needs to stay within their signing authority, it’s all about staying Safe.
“What would you need to see to risk more?” As an innovator, you’ll always want more freedom to push boundaries and feel confident that you can convince others to see things your way. But before you pitch Stretch to a boss that wants Safe, or Splatter to a boss barely willing to Stretch, learn what they need to change their minds. Maybe it will be worth your effort, maybe it won’t. Better to know sooner rather than later.

Image credits: Pixabay

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‘Innovation’ is Killing Innovation. How Do We Save It?

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'Innovation' is Killing Innovation. How Do We Save It?

GUEST POST from Robyn Bolton

How do people react when you say “innovation?”

Lean forward, eyes glittering, eager to hear more
Stare blankly and nod slowly
Roll their eyes and sigh
Wave their hands dismissively and tell you to focus on other, more urgent priorities.

If you answered C, you’re in good company.

Innovation is a buzzword. Quick searches of Amazon and Google Scholar result in 100,000+ books and 200,000+ articles on the topic, while a scan of the SEC’s database yields 8,000 K-1 filings with the word “innovation” in 2020 alone.

“Innovation” is meaningless, like all buzzwords. There’s a reason that practitioners and consultants insist on establishing a common definition before starting innovation work. I’ve been in meetings with ten people, asked each person to define “innovation,” and heard 12 different answers.

But all this pales in comparison to the emotional response it elicits. Some people get incredibly excited, bouncing out of their seats, ready to bring their latest idea to life (whether it should be brought to life is a different story.). Some nod solemnly as if confronted by a necessary evil, accepting a fate beyond their control. Most roll their eyes because they’ve been through this before and, like all management “flavors of the month,” this too shall pass.

“Innovation” is killing Innovation

The emotions and opinions we tie to “innovation” overwhelm the dictionary definition, making it difficult to believe that the process and, more importantly, the result will be different this time.

We need a different word.

One that has the same meaning and none of the baggage.

This may feel impossible, but if “literally” can mean “figuratively” (do NOT get me started on this 2013 decision) and the Oxford English Dictionary can add 700 new words in 2022, surely we can figure this out.

10 alternatives to ‘Innovation’

The following options are sourced primarily from conversations with other experts and practitioners.

Invention
Ideation
Incubation
Improvement
Creation
Design
Growth
Transformation
Business R&D*

Yes, #10 is intentionally missing because…

What do you think?

Finding a new word (or maybe changing how “innovation” is perceived, understood, and pursued) is a group effort. One person alone can’t do it, and a few people on a call complaining about the state of things certainly won’t (we’ve tried).

What do you think?

Do we need a different word for “innovation,” or should we keep it and deal with the baggage?

If we need a different word, what could it be? What do YOU use?

If we keep it, how do you combat the misunderstanding, eye rolls, and emotional baggage?

Let us know in the comments.

* This option came directly from a conversation with a client last week, and I kinda love it.

We discussed the challenge of getting engineers to stay in a discovery mindset rather than jumping immediately to solutions. Even though they work in R&D (the function), he observed that 99.9% of their work (and, honestly, their careers) is spent on the D in R&D (development).

That’s when it clicked.

Research begins with investigation and inquiry to understand a broad problem and then uses the resulting insights to solve a specific problem. It is a learning process, just like the early stages of Innovation. And, just like in the early days of Innovation, you can’t predict the result or routinize the work.

Development focuses on bringing the “new or modified product or process to production,” Just like the later phases of Innovation when prototyping and experimentation are required, and risk is driven out of the proposition.

Traditional R&D focuses on technical and scientific exploration and solutioning,

Innovation focuses on market, consumer/customer, and business model exploration and solutioning.

It is R&D for the business.

Business R&D.

Image credits: Pixabay

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How Has Innovation Changed Since the Pandemic?

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The Answer in Three Charts

How Has Innovation Changed Since the Pandemic?

GUEST POST from Robyn Bolton

“Everything changed since the pandemic.”

At this point, my husband, a Navy veteran, is very likely to moo (yes, like a cow). It’s a habit he picked up as a submarine officer, something the crew would do whenever someone said something blindingly obvious because “moo” is not just a noise. It’s an acronym – Master Of the Obvious.

But HOW did things change?

From what, to what?

So what?

It can be hard to see the changes when you’re living and working in the midst of them. This is why I found “Benchmarking Innovation Impact, from InnoLead,” a new report from InnoLead and KPMG US, so interesting, insightful, and helpful.

There’s lots of great stuff in the report (and no, this is not a sponsored post though I am a member), so I limited myself to the three charts that answer executives’ most frequently asked innovation questions.

Innovation Leader Research 2023 Chart 1

Question #1: What type of innovation should I pursue?

2023 Answer: Companies are investing more than half of their resources in incremental innovation

So What?: I may very well be alone in this opinion, but I think this is great news for several reasons:

Some innovation is better than none – Companies shifting their innovation spending to safer, shorter-term bets is infinitely better than shutting down all innovation, which is what usually happens during economic uncertainty
Play to your strengths – Established companies are, on average, better at incremental and adjacent innovation because they have the experience, expertise, resources, and culture required to do those well and other ways (e.g., corporate venture capital, joint ventures) to pursue Transformational innovation.
Adjacent Innovation is increasing –This is the sweet spot for corporate innovation (I may also be biased because Swiffer is an adjacent innovation) because it stretches the business into new customers, offerings, and/or business models without breaking the company or executives’ identities.

Innovation Leader Research 2023 Chart 2

Question #2: Is innovation really a leadership problem (or do you just have issues with authority)?

2023 Answer: Yes (and it depends on the situation). “Lack of Executive Support” is the #6 biggest challenge to innovation, up from #8 in 2020.

So What?: This is a good news/bad news chart.

The good news is that fewer companies are experiencing the top 5 challenges to innovation. Of course, leadership is central to fostering/eliminating turf wars, setting culture, acting on signals, allocating budgets, and setting strategy. Hence, leadership has a role in resolving these issues, too.

The bad news is that MORE innovators are experiencing a lack of executive support (24.3% vs. 19.7% in 2020) and “Other” challenges (17.3% vs. 16.4%), including:

“Different agendas held by certain leadership as to how to measure innovation and therefore how we go after innovation. Also, the time it takes to ‘sell’ an innovative idea or opportunity into the business; corporate bureaucracy.”
“Lack of actual strategy. Often, goals or visions are treated as strategy, which results in frustration with the organization’s ability to advance viable work and creates an unnecessary churn, resulting in confused decision-making.”
“Innovations are stalling after piloting due to lack of funding and executive support in order to shift to scaling. Many are just happy with PR innovation.”

Innovation Leader Research 2023 Chart 3

Question #3: How much should I invest in innovation?

2023 Answer: Most companies are maintaining past years’ budgets and team sizes.

So What?: This is another good news/bad news set of charts.

The good news is that investment is staying steady. Companies that cut back or kill innovation investments due to economic uncertainty often find that they are behind competitors when the economy improves. Even worse, it takes longer than expected to catch up because they are starting from scratch regarding talent, strategy, and a pipeline.

The bad news is that investment is staying steady. If you want different results, you need to take different actions. And I don’t know any company that is thrilled with the results of its innovation efforts. Indeed, companies can do different things with existing budgets and teams, but there needs to be flexibility and a willingness to grow the budget and the team as projects progress closer to launch and scale-up.

Not MOO

Yes, everything has changed since the pandemic, but not as much as we think.

Companies are still investing in incremental, adjacent, and transformational innovation. They’re just investing more in incremental innovation.

Innovation is still a leadership problem, but leadership is less of a problem (congrats!)

Investment is still happening, but it’s holding steady rather than increasing.

And that is nothing to “moo” at.

Image credits: Pixabay, InnoLead

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Innovation and the Silicon Valley Bank Collapse

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Why It’s Bad News and Good News for Corporate Innovation

Innovation and the Silicon Valley Bank Collapse

GUEST POST from Robyn Bolton

Last week, as news of Silicon Valley Bank’s losses and eventual collapse, took over the news cycle, attention understandably turned to the devastating impact on the startup ecosystem.

Prospects brightened a bit on Monday with news that the federal government would make all depositors whole. Startups, VCs, and others in the ecosystem would be able to continue operations and make payroll, and SVB’s collapse would be just another cautionary tale.

But the impact of SVB’s collapse isn’t confined to the startup ecosystem or the banking industry.

Its impact (should have) struck fear and excitement into the hearts of every executive tasked with growing their business.

Your Portfolio’s Risk Profile Just Changed

The early 2000s were the heyday of innovation teams and skunkworks, but as these internal efforts struggled to produce significant results, companies started looking beyond their walls for innovation. Thus began the era of Corporate Venture Capital (CVC).

Innovation, companies realized, didn’t need to be incubated. It could be purchased.

Often at a lower price than the cost of an in-house team.

And it felt less risky. After all, other companies were doing it and it was a hot topic in the business press. Plus, making investments felt much more familiar and comfortable than running small-scale experiments and questioning the status quo.

Between 2010 and 2020, the number of corporate investors increased more than 6x to over 4,000, investment ballooned to nearly $170B in 2021 (up 142% from 2020), and 1,317 CVC-backed deals were closed in Q1 of 2020.

But, with SVB’s collapse, the perceived risk of startup investing suddenly changed.

Now startups feel riskier. Venture Capital firms are pulling back, and traditional banks are prohibited from stepping forward to provide the venture debt many startups rely on. While some see this as an opportunity for CVC to step up, that optimism ignores the fact that companies are, by nature and necessity, risk averse and more likely to follow the herd than lead it.

Why This is Bad News

As CVC, Open Innovation, and joint ventures became the preferred path to innovation and growth, internal innovation shifted to events – hackathons, shark tanks, and Silicon Valley field trips.

Employees were given the “freedom” to innovate within a set time and maybe even some training on tools like Design Thinking and Lean Startup. But behind closed doors, executives spoke of these events as employee retention efforts, not serious efforts to grow the business or advance critical strategies.

Employees eventually saw these events for what they were – innovation theater, activities designed to appease them and create feel-good stories for investors. In response, employees either left for places where innovation (or at least the curiosity and questions required) was welcomed, or they stayed, wiser and more cynical about management’s true intentions.

Then came the pandemic and a recession. Companies retreated further into themselves, focused more on core operations, and cut anything that wouldn’t generate financial results in 12 months or less.

Innovation muscles atrophied.

Just at the moment they need to be flexed most.

Why This is Good News

As the risk of investment in external innovation increases, companies will start looking for other ways to innovate and grow. Ways that feel less risky and give them more control.

They’ll rediscover Internal Innovation.

This is the silver lining of the dark SVB cloud – renewed investment in innovation, not as an event or activity to appease employees, but as a strategic tool critical to delivering strategic priorities and accelerating growth.

And, because this is our 2^nd time around, we know it’s not about internal innovation teams OR external partners/investments. It’s about internal innovation teams AND external partners/investments.

Both are needed, and both can be successful if they:

Are critical enablers of strategic priorities
Pursue realistic goals (stretch, don’t splatter!)
Receive the people and resources required to deliver against those goals
Are empowered to choose progress over process
Are supported by senior leaders with words AND actions

What To Do Now

When it comes to corporate innovation teams, many companies are starting from nothing. Some companies have files and playbooks they can dust off. A few have 1 or 2 people already working.

Whatever your starting point is, start now.

Just do me one favor. When you start pulling the team together, remember LL Cool J, “Don’t call it a comeback, I been here for years.”

Image credit: Wikimedia Commons

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The Life of a Corporate Innovator

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As Told in Three Sonnets

The Life of a Corporate Innovator

GUEST POST from Robyn Bolton

Day 1

Oh innovation, a journey just begun

A bold quest filled with challenges, risks, and dreams,

A path of creativity, knowledge and fun,

That will bring change, growth and a brighter scene.

Do not be afraid, though unknowns abound,

For greatness starts with small unsteady steps

Take courage and embrace each change that’s found,

And trust that success will be the final event.

Remember, every challenge is a chance,

To learn, grow, and shape thy future bright,

And every obstacle a valuable dance,

That helps thee forge a path that’s just and right.

So go forth, my friend, and boldly strive,

To make innovation flourish and thrive.

The Abyss (Death and Rebirth)

Fight on corporate innovator, who art so bold

And brave despite the trials that thou hast,

Thou hast persevered through promises cold,

And fought through budget cuts that came so fast.

Thou hast not faltered, nor did thou despair,

Despite the lack of resources at thy door,

Thou hast with passion, worked beyond repair,

And shown a steel spine that’s hard to ignore.

Thou art a shining example to us all,

A beacon of hope in times that are so bleak,

Thou art a hero, standing tall and strong,

And leading us to victories that we seek.

So let us celebrate thy unwavering faith,

And honor thee, innovator of great grace.

The Triumph

My dear intrapreneur, well done,

The launch of thy innovation is a feat,

A result of years of hard work, and fun,

That sets a shining example for all to meet.

Thou hast persevered through many a trial,

With unwavering determination and drive,

And now, thy hard work doth make thee smile,

As thy business doth grow and thrive.

This triumph is a testament to thee,

Of thy creativity, passion, and might,

And serves as a reminder of what can be,

When we pour our hearts into what is right.

So let us raise a glass and celebrate,

Thy success, and the joy innovation hath created!

These sonnets were created with the help of ChatGPT

Image credit: Pixabay

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