Tag Archives: effectiveness

Are You Pursuing Efficiency at the Expense of Effectiveness?

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Are You Pursuing Efficiency at the Expense of Effectiveness?

GUEST POST from Mike Shipulski

Efficiency is a simple measurement – output divided by resources needed to achieve it. How much did you get done and how many people did you need to do it? What was the return on the investment? How much money did you make relative to how much you had to invest? We have efficiency measurements for just about everything. We are an efficiency-based society.

It’s easy to create a metric for efficiency. Figure out the output you can measure and divide it by the resources you think you used to achieve it. While a metric like this is easy to calculate, it likely won’t provide a good answer to what we think is the only question worth asking– how do we increase efficiency?

Problem 1. The resources you think are used to produce the output aren’t the only resources you used to generate the output. There are many resources that contributed to the output that you did not measure. And not only that, you don’t know how much those resources actually cost. You can try the tricky trick of fully burdened cost, where the labor rate is loaded with an overhead percentage. But that’s, well, nothing more than an artifact of a contrived accounting system. You can do some other stuff like calculate the opportunity cost of deploying those resources on other projects. I’m not sure what that will get you, but it won’t get you the actual cost of achieving the output you think you achieved.

Problem 2. We don’t measure what’s important or meaningful. We measure what’s easy to measure. And that’s a big problem because you end up beating yourself about the head and shoulders trying to improve something that is easy to measure but not all that meaningful. The biggest problem here is local optimization. You want something easy to measure so you cull out a small fraction of a larger process and increase the output of that small part of the process. The thing is, your customer doesn’t care about the efficiency of that small piece of that process. And, improving that small piece likely doesn’t do anything for the output of the total process. If more products aren’t leaving the factory, you didn’t do anything.

Problem 3. Productivity isn’t all that important. What’s important is effectiveness. If you are highly efficient at the wrong thing, you may be efficient, but you’re also ineffective. If you launch a product in a highly efficient way and no one buys it, your efficiency numbers may be off the charts, but your effectiveness numbers are in the toilet.

We have very few metrics on effectiveness. But here are some questions a good effectiveness metric should help you answer.

  • Did we work on the right projects?
  • Did we make good decisions?
  • Did we put the right people on the projects?
  • Did we do what we said we’d do?
  • After the project, is the team excited to do a follow-on project?
  • Did our customers benefit from our work?
  • Do our partners want to work with us again?
  • Did we set ourselves up to do our work better next time?
  • Did we grow our young talent?
  • Did we have fun?
  • Do more people like to work at our company?
  • Have we developed more trust-based relationships over the last year?
  • Have we been more transparent with our workforce this year?

If I had a choice between efficiency and effectiveness, I’d choose effectiveness.

Image credit: Unsplash

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Top 10 Human-Centered Change & Innovation Articles of December 2022

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Top 10 Human-Centered Change & Innovation Articles of December 2022Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are December’s ten most popular innovation posts:

  1. Forbidden Truth About Innovation — by Robyn Bolton

  2. A Letter to Innovation Santa — by John Bessant

  3. Preserving Ecosystems as an Innovation Superpower — by Pete Foley

  4. What is a Chief Innovation Officer? — by Art Inteligencia

  5. If You Can Be One Thing – Be Effective — by Mike Shipulski

  6. How to Drive Fear Out of Innovation — by Teresa Spangler

  7. 3 Steps to Find the Horse’s A** In Your Company (and Create Space for Innovation) — by Robyn Bolton

  8. Six Ways to Stop Gen-Z from Quiet Quitting — by Shep Hyken

  9. Overcoming the Top 3 Barriers to Customer-Centricity — by Alain Thys

  10. Designing Innovation – Accelerating Creativity via Innovation Strategy — by Douglas Ferguson

BONUS – Here are five more strong articles published in November that continue to resonate with people:

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last three years:

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If You Can Be One Thing – Be Effective

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If You Can Be One Thing - Be Effective

GUEST POST from Mike Shipulski

If you’re asked to be faster, choose to be more effective. There’s nothing slower than being fast at something that doesn’t matter.

If you’re given a goal to be more productive, instead, improve effectiveness. There’s nothing less productive than making the wrong thing.

If you’re measured on efficiency, focus on effectiveness. Customers don’t care about your efficiency when you ship them the wrong product.

If you’re asked to improve quality, that’s good because quality is an important element of effectiveness.

If you’re asked to demonstrate more activity, focus on progress, which is activity done in an effective way.

If you’re asked to improve your team, ask them how they can be more effective and do that.

Regardless of the question, the answer is effectiveness.

Image credit: Unsplash

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Measuring Innovation Effectiveness

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Two Case Studies

Measuring Innovation Effectiveness

GUEST POST from Art Inteligencia

In the relentless pursuit of growth and competitive advantage, organizations worldwide pour resources into innovation. They fund R&D, launch incubators, foster hackathons, and preach a culture of creativity. Yet, when asked to quantify the return on these investments, many leaders find themselves grasping at straws. The reality is, innovation, by its very nature, often defies traditional, linear metrics. It’s messy, unpredictable, and its true impact can take time to materialize. But just because it’s hard doesn’t mean it’s impossible. Measuring innovation effectiveness isn’t about rigid ROI formulas; it’s about establishing a holistic view that combines qualitative insights with carefully selected quantitative indicators. It’s about moving beyond mere activity to demonstrable impact, ensuring that your innovation efforts are not just busywork, but truly driving strategic value.

Beyond the Buzzwords: What Are We Really Measuring?

Before we even discuss metrics, we must align on what “innovation effectiveness” truly means for *your* organization. Is it about disruptive new revenue streams? Operational efficiencies that cut costs dramatically? Enhanced customer loyalty and market share? Or fostering an adaptable, future-ready culture that can weather any storm? Without clear, strategically aligned objectives, any measurement effort will be futile. Define your innovation strategy, articulate its desired outcomes, and then — and only then — select your metrics. I advocate for a balanced scorecard approach, looking at innovation through several critical lenses:

  • Input Metrics: These measure the resources and effort dedicated to innovation. Examples include R&D expenditure as a percentage of revenue, employee hours allocated to innovation projects, the number of ideas generated per month, or investment in innovation training programs. These indicate commitment and capacity.
  • Process Metrics: These track the efficiency and flow of ideas through your innovation pipeline. Key indicators might be time-to-market for new products/features, conversion rates between different innovation stages (e.g., idea to prototype, prototype to launch), or the number of innovation projects actively managed. They highlight bottlenecks and operational strengths.
  • Output Metrics: These quantify the tangible results of your innovation activities. This could be the number of new products or services launched, patents filed, new markets entered, or new customer segments acquired. These are often easier to count but don’t always reflect true impact.
  • Impact Metrics: These provide the ultimate evidence of innovation’s value. They link innovation directly to business performance. Examples include revenue generated from new offerings (e.g., products launched in the last 3-5 years), cost savings from process improvements, Net Promoter Score (NPS) for new products, market share gain in new segments, or even improvements in employee engagement and retention due to an innovative culture. It’s these metrics that truly tell you if your innovation is paying off.

It’s the Impact Metrics that often provide the most profound insights, yet they are also the hardest to track, requiring patience, robust data collection, and a willingness to connect the dots over time. They require a shift from simply tracking “what we did” to “what value did it create?”

Case Study 1: The Global Consumer Electronics Giant

From Patent Count to Market Adoption and Value Creation

A leading global consumer electronics firm, let’s call them “InnovateTech,” historically measured innovation effectiveness almost exclusively by the number of patents filed and the size of their R&D budget. While these input and output metrics showed significant activity, they failed to explain why some seemingly brilliant inventions languished in the market while others, with less initial fanfare, became blockbuster hits. This narrow focus led to a substantial “innovation theater” problem – a lot of show, but little sustained business value.

Recognizing this disconnect, InnovateTech underwent a profound shift. They began tracking a more balanced set of metrics, deeply tied to their strategic goals:

  • Revenue from products launched in the last 3 years: This directly linked innovation efforts to current financial performance, forcing R&D to think about commercial viability.
  • Customer Net Promoter Score (NPS) for new product lines (pre and post-launch): A critical qualitative measure providing insight into user satisfaction, loyalty, and advocacy, driving human-centered design.
  • Time from idea conception to first market prototype (and then to full commercial launch): A key process metric to identify bottlenecks, especially where product development cycles were too long, allowing competitors to beat them to market.
  • Employee engagement scores related to innovation: Gauging how well the internal culture supported idea generation, cross-functional collaboration, and intelligent risk-taking, measured through internal surveys and participation rates in innovation challenges.

This comprehensive shift revealed that while InnovateTech was indeed patenting extensively, many patents weren’t translating into commercially viable products or meaningful customer experiences. Furthermore, their time-to-market was significantly slower than agile competitors. By focusing on these new metrics, InnovateTech was able to streamline R&D processes, invest more heavily in user-centric design research, and ultimately, bring more successful products to market, leading to a demonstrable 15% increase in revenue from new offerings within two years, alongside a measurable uplift in overall brand perception.

Case Study 2: The Healthcare Services Provider

Improving Patient Outcomes and Operational Efficiency Through Process Innovation

“HealthPath,” a large, integrated hospital network, struggled to measure the true impact of their continuous improvement and process innovation initiatives. They were constantly implementing new protocols, introducing digital tools, and adopting advanced medical technologies, but the qualitative improvements in patient care and the subtle efficiencies gained were difficult to quantify in traditional financial terms alone, making it hard to justify further investment or identify best practices.

HealthPath adopted a specific outcomes-based framework for measuring effectiveness, moving beyond just direct cost savings to include a broader spectrum of impact metrics:

  • Reduction in average patient wait times for specific high-volume procedures (e.g., MRI scans, initial consultations): A direct measure of operational efficiency improvements and patient experience.
  • Decrease in re-admission rates for key chronic conditions (within 30/90 days): Indicating improved patient care quality, better post-discharge planning, and long-term health outcomes.
  • Staff satisfaction scores related to new technology and process adoption: A crucial metric for identifying successful implementation, potential training needs, and the overall cultural acceptance of change. This also helped pinpoint areas where new tools might be causing frustration rather than efficiency.
  • Number of new patient service offerings launched per quarter (e.g., telehealth programs, specialized clinics): Tracking the expansion of their value proposition to the community and their responsiveness to evolving healthcare needs.

Through this comprehensive approach, HealthPath discovered that innovations in their digital patient intake process significantly reduced average wait times (by an average of 20%) and, surprisingly, led to a measurable decrease in administrative errors, indirectly contributing to lower re-admission rates by ensuring accurate patient data. The staff satisfaction metric also highlighted the critical importance of robust training and proactive change management for new technology, preventing potential innovation failures due to poor adoption and ensuring staff felt empowered, not overwhelmed, by new tools. This holistic view allowed HealthPath to secure further funding for innovation by demonstrating clear, patient-centric results.

Navigating the Pitfalls of Innovation Measurement

While the benefits of measuring innovation are clear, the path is fraught with potential missteps. Be mindful of these common pitfalls:

  • Vanity Metrics: Focusing on easily quantifiable but ultimately meaningless numbers (e.g., total number of ideas submitted without quality filtering, or hours spent in brainstorming meetings).
  • Short-Term Bias: Expecting immediate ROI from all innovation. Truly disruptive innovation often has a longer gestation period and may not yield financial returns for years.
  • Lack of Data & Tools: Without proper systems for tracking, collecting, and analyzing data, measurement becomes an exercise in frustration.
  • Resistance to Transparency: A culture that punishes failure or hides inconvenient truths will undermine any measurement effort. Innovation requires psychological safety.
  • One-Size-Fits-All Mentality: Applying the same metrics to every type of innovation (incremental vs. radical, product vs. process) will lead to skewed results and missed opportunities.

The Path Forward: A Human-Centered Approach to Metrics

Measuring innovation isn’t a “set it and forget it” task. It’s an ongoing, iterative process that demands flexibility, adaptation, and a deeply human-centered perspective. To truly master it, recognize that:

  • Context is King: The “right” metrics for a nimble startup launching a disruptive app will differ vastly from those for a mature enterprise optimizing its manufacturing supply chain. Tailor your measurement strategy to your unique context and strategic intent.
  • Balance Quantitative with Qualitative: Numbers tell part of the story, but interviews, feedback sessions, ethnographic studies, and user testing provide invaluable context, uncover hidden needs, and offer a deeper understanding of true impact. Seek both the “what” and the “why.”
  • Focus on Learning, Not Just Judging: Metrics should serve as navigational tools, helping you understand what’s working, what’s not, and where to pivot. They are for continuous improvement and strategic adaptation, not just annual performance reviews or a stick to beat teams with.
  • Communicate Clearly and Continuously: Ensure everyone involved – from the C-suite to the frontline innovators – understands *why* certain metrics are being tracked, *how* they are collected, and *how* they contribute to the broader organizational vision. Transparency fosters accountability, engagement, and a shared purpose.

Ultimately, effective innovation measurement empowers organizations to move beyond mere activity to demonstrable impact. It allows leaders to make informed decisions, allocate resources wisely, and cultivate a truly innovative culture that doesn’t just embrace change, but actively shapes the future. Stop guessing. Start measuring – intelligently, intentionally, and with a keen focus on the human impact.

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

Image credit: Pixabay

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Measuring the Effectiveness of Change Management Initiatives

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Measuring the Effectiveness of Change Management Initiatives

GUEST POST from Art Inteligencia

Effective change management is a critical factor in the success of any organizational transformation. But how do you measure its effectiveness? While many organizations embark on change initiatives, few actually track the metrics that determine their success. In this article, we will explore key indicators for measuring change management effectiveness and delve into two case studies that highlight these principles in action.

Key Metrics for Measuring Effectiveness

There are several metrics organizations can use to assess the success of their change management initiatives:

  • Employee Engagement: Levels of employee participation and enthusiasm towards the change.
  • Adoption Rates: The speed and extent to which the new practices or tools are adopted.
  • Resistance Levels: The volume and intensity of opposition to the change.
  • Performance Metrics: Productivity, quality, and other performance metrics before and after the change.
  • Cultural Shift: Long-term sustainability of the change in the organization’s culture.

Case Study 1: TechCorp’s Agile Transformation

TechCorp, a mid-sized software development company, decided to shift from a waterfall to an agile development methodology. Here’s how they measured the effectiveness of their change management initiative:

  • Employee Engagement: The company conducted monthly surveys to gauge team morale and engagement. Engagement levels increased by 25% within six months.
  • Adoption Rates: Within three months, 90% of the development teams were practicing Agile methodologies.
  • Resistance Levels: Initial resistance was high, but decreased significantly after implementing a series of workshops and training sessions.
  • Performance Metrics: Lead time and cycle time metrics showed a 30% improvement in the first year.
  • Cultural Shift: Two years post-implementation, Agile principles were deeply embedded in the company culture, with ongoing improvements driven by employee feedback loops.

TechCorp’s methodical approach to measuring change allowed them to pinpoint areas of resistance and adapt their strategies, ensuring a successful transformation.

Case Study 2: HealthWay’s Digital Healthcare Initiative

HealthWay, a healthcare provider, embarked on a digital transformation to improve patient experience through telehealth services. Their measures of change management effectiveness included:

  • Employee Engagement: Weekly town hall meetings were held to address concerns and share progress. Engagement surveys indicated a 40% improvement in employee sentiment towards the initiative.
  • Adoption Rates: Telehealth consults increased from 5% to 60% of total consultations within six months.
  • Resistance Levels: Through one-on-one coaching and extensive training, initial resistance levels dropped from 30% to under 5% within the first quarter.
  • Performance Metrics: Patient satisfaction scores improved by 20%, while operational costs associated with consultations dropped by 15%.
  • Cultural Shift: A year after the initiative, the company saw a significant shift towards a more technology-oriented culture, with continual investments in digital tools and services.

HealthWay’s focus on robust engagement and thorough training was crucial for the success of their digital transformation, significantly enhancing both employee and patient satisfaction.

Conclusion

Measuring the effectiveness of change management initiatives is not just about tracking immediate outcomes, but also about understanding the long-term impact on your organization. By focusing on key metrics such as employee engagement, adoption rates, resistance levels, performance metrics, and cultural shifts, organizations can ensure that their change initiatives are not only successful but also sustainable. TechCorp and HealthWay demonstrate that with the right measures in place, meaningful change is achievable, paving the way for continuous improvement and a resilient organizational culture.

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

Image credit: Pixabay

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Measuring and Evaluating Change Success

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Offering Insights into Key Metrics and Indicators that can be Used to Assess the Effectiveness of Change Initiatives and Make Data-Driven Decisions

Measuring and Evaluating Change Success

GUEST POST from Art Inteligencia

Change is inevitable in today’s fast-paced business environment, and organizations must effectively manage and evaluate their change initiatives to drive success. Assessing the impact of change requires measurement and evaluation based on key metrics and indicators that provide valuable insights into the effectiveness of ongoing initiatives. In this thought leadership article, we will explore the significance of measuring and evaluating change success and present two case studies showcasing the application of data-driven decision-making in assessing change initiatives.

Case Study 1: Implementing a Digital Transformation Program

Organization X, a multinational company, embarked on a digital transformation journey encompassing various areas, from technology infrastructure to workforce skills development. To measure change success, the following key metrics were identified:

1. Adoption Rate: Tracking the adoption rate of digital tools and technologies across departments and teams provides a measure of overall acceptance and utilization. By analyzing data on the number of employees actively using new tools, applications, or processes, Organization X can assess the progress of its digital transformation efforts.

2. Productivity and Efficiency Improvements: Measuring productivity and efficiency metrics before and after the digital transformation program allows for an evaluation of the impact on operational performance. Parameters such as reduced manual work hours, decreased error rates, or improved cycle times provide valuable insights into the program’s effectiveness.

3. Customer Satisfaction: Monitoring changes in customer satisfaction ratings, feedback, and repeat business can indicate how well the digital transformation program aligns with customer expectations. Surveys, feedback mechanisms, and social media analytics can help capture customer sentiment and identify shifts resulting from the implemented changes.

Through continuous measurement and evaluation of these key metrics, Organization X can assess the impact of its digital transformation program, modify strategies as needed, and make informed, data-driven decisions.

Case Study 2: Restructuring and Change Management in a Service Organization

Organization Y, a service-oriented company, underwent a comprehensive restructuring process to optimize operations and better align with evolving market demands. Key metrics and indicators utilized for measuring change success included:

1. Employee Engagement: Assessing employee satisfaction, motivation, and commitment through surveys, focus groups, or one-on-one discussions measures the success of change initiatives. Improvements in engagement levels indicate that the restructuring efforts positively impacted the workforce.

2. Financial Performance: Analyzing financial indicators such as revenue growth, cost reduction, and profitability pre- and post-restructuring gives insights into the financial impact of organizational changes. Positive changes in metrics demonstrate that the implemented changes led to desired outcomes.

3. Client Retention and Acquisition: Evaluating changes in client retention and acquisition rates provides valuable information about customer perception and satisfaction. Positive shifts in these metrics confirm that the restructuring efforts aligned with client expectations and needs.

By leveraging these metrics, Organization Y was able to measure the effectiveness of its restructuring initiatives, identify areas of improvement, and drive data-driven decision-making to sustain positive change outcomes.

Conclusion

Measuring and evaluating change success through key metrics and indicators is vital for organizations aiming to make data-driven decisions and ensure the effectiveness of their change initiatives. The provided case studies demonstrate how organizations have successfully utilized metrics focused on adoption rates, productivity improvements, customer satisfaction, employee engagement, financial performance, and client retention/acquisition. By consistently assessing these metrics, organizations can gain valuable insights, adapt their change strategies, and achieve long-term success in an ever-changing business landscape.

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

Image credit: Pixabay

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Effective Communication: Unlocking Collaborative Innovation

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Effective Communication: Unlocking Collaborative Innovation

GUEST POST from Art Inteligencia

In today’s fast-paced and interconnected world, effective communication plays a vital role in driving collaborative innovation. Whether it is within organizations or across industries, effective communication allows teams to share ideas, exchange knowledge, and work together towards achieving common goals. This article explores the significance of effective communication and presents two compelling case studies that demonstrate how it can unlock collaborative innovation.

Case Study 1: Pixar Animation Studios

Pixar Animation Studios has revolutionized the animation industry with its groundbreaking films and innovative storytelling techniques. To maintain their competitive edge, Pixar understands the importance of effective communication in driving collaborative innovation among their teams.

One example of effective communication at Pixar comes from the production of their hit film, “Toy Story.” The movie was a result of a collaborative effort between animators, storytellers, and technical experts. Regular meetings and brainstorming sessions were held, allowing team members to contribute their ideas and perspectives. Open lines of communication fostered a creative environment, where everyone felt comfortable sharing their thoughts and challenging existing ideas. This collaborative approach led to the development of fresh concepts and innovative animation techniques, ultimately making “Toy Story” a groundbreaking success.

Case Study 2: Google’s Project Aristotle

Google’s Project Aristotle is an extensive study conducted to understand the factors that contribute to effective team performance within the company. One of the key findings of this study was the significance of effective communication and psychological safety in fostering collaborative innovation.

The research showed that the most successful teams at Google were characterized by open and transparent communication. Team members felt comfortable expressing their ideas, even if they differed from others. This environment of psychological safety allowed for constructive debates and diverse perspectives, ultimately leading to more innovative solutions. Teams that cultivated effective communication practices were more likely to experiment, take risks, and explore new ideas together, driving collaborative innovation across the organization.

Key Takeaways:

1. Active Listening: Effective communication requires active listening, allowing team members to understand each other’s perspectives and build upon their ideas collaboratively. Actively listening to team members fosters an environment of trust and respect, encouraging the generation of innovative solutions.

2. Clear Communication Channels: Establishing clear communication channels ensures that information flows smoothly among team members. Whether it is through regular meetings, online platforms, or project management tools, accessible communication channels facilitate the exchange of ideas, knowledge, and feedback, enhancing collaborative innovation.

Conclusion

Effective communication is the key that unlocks collaborative innovation. The case studies of Pixar Animation Studios and Google’s Project Aristotle demonstrate how organizations can unleash their creative potential by fostering open communication, encouraging active listening, and creating an environment of psychological safety. Embracing effective communication practices allows teams to break down barriers, share ideas, and collaborate more effectively, paving the way for groundbreaking innovation and success.

Image credit: Unsplash

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