Tag Archives: Employees

Exploring Performance Management

Exploring Performance Management

GUEST POST from Geoffrey A. Moore

Performance management is a tool for managing Performance Zone commitments. These are the outcomes and deliverables that your organization, or for that matter you yourself, are being funded to deliver. In the Vision, Value, Methods, Obstacles, and Measures (V2MOM) framework, they will be represented by one or more of your Methods and will be tied directly to a corresponding set of Measures.

The primary goal of performance management is to ensure success in meeting such commitments. This includes early detection of things going off track—hence the need for frequent check-ins. It includes coaching and mentoring to help team members succeed—something we all need at one time or another. It asks us all to balance empathy for times when people don’t succeed with accountability for the need to succeed. People need help when they are down, but it is not fair to continue to accept funding for outcomes that do not get delivered.

When people under-deliver against their commitments, nobody wins. Most importantly, and this is something a lot of people miss, the person who is under-delivering is not winning. When coaching and mentoring are not getting them to success, the likelihood is that they are in the wrong role. Keeping them in that role, which we sometimes think of as protecting them, just prolongs the agony. A far better response is to step back and assess what would be the right role for this person, whether it be another one on the same team, or one on a different team, or one in another organization, or one in another company. The point is, rather than obsessing about what they are doing badly, we need to focus instead on what they could be really good at and get them into that role as swiftly as possible.

Let me be even more clear. It is obvious that when under-performing folks are kept in a role, everyone else on the team has to work harder. What is not so obvious is that when under-performing folks move on, even if their roles are not back-filled, the team discovers it has less work to do! The reason is that under-performing people absorb everyone else’s time. After all, they are trying to help, they just aren’t succeeding. And since helping teammates is baked into collaborative cultures, we give them extra time even though it is not productive to do so.

Again, nobody is winning here. We need an intervention. In this context, policies that call for managing out the bottom five percent are simply a heuristic that says, in any organization at any time, there are bound to be some number of round pegs in square holes, and leaving them in place doesn’t help anyone.

So, why then do we still bristle at the notion of performance management? There’s a ton of psychology behind this question, more than I am competent to address, but the net effect is that performance management puts enormous pressure on a set of social skills many of us lack. That’s not going to change anytime soon, so we should not be surprised at our reluctance to engage. But it is not OK to dodge our responsibilities either. Our best bet, in my view, is to bake into our protocol a discussion of positive next steps that includes concrete recommendations, and cope with our emotional challenges as best we can.

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

Image Credit: Unsplash

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Why Employees Must Do More Than Expected

(Even When It’s Not in Their Job Description)

Why Employees Must Do More Than Expected

GUEST POST from Shep Hyken

As customers, we appreciate it when someone we’re doing business with does more than we expect. Even if we don’t consciously recognize it when it’s happening, the value of that “something extra” makes us enjoy the experience and want to come back.

The same thing happens with employees inside an organization. You can usually find someone who seems to be doing more than expected – something that’s not in their job description.

The other night I was at a restaurant that had an outside patio. It looked like it was going to rain, so we opted to eat inside. About 20 minutes later, the sky opened up, and it didn’t just rain. It stormed. The wind blew over the tables and chairs, and one of the umbrellas blew onto the street. Without hesitation, our server, who was dressed neatly in black slacks, a dress shirt and a tie, ran outside in the pouring rain and moved the umbrella and all the tables and chairs into a covered area of the patio. He came back drenched. As he walked through the restaurant, all the customers who had been watching him through the window gave him an enthusiastic round of applause. I also noticed that the manager thanked him for being the “hero of the moment.”

When our server had dried off and returned to our table, I had to ask him, “When you applied to the job, was moving patio furniture in the rain included in the job description?” We laughed, and he smiled and said, “I just do what it takes.”

I loved that answer.

Doing More Than Expected Shep Hyken Cartoon

How many employees do what it takes? This comes in many forms, from working a little later when needed, coming to the office over the weekend if necessary or doing anything outside of a typical job description. By the way, I’m not suggesting employees should not be appropriately compensated for their hard work. They should be. And there’s nothing wrong if employees do only what you hired them to do, especially if they’re really good at it. You don’t want to lose them, so don’t expect them to do more and don’t be upset when they don’t. If you expected more, that should have been discussed and agreed upon when you hired them.

The point is you’ll find people willing to go above what’s expected and those who won’t. As a customer, which employee would you want to do business with? As an employer, which employee would you prefer to be taking care of your customers?

Image Credits: Shep Hyken, Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

Top 10 Human-Centered Change & Innovation Articles of July 2023

Top 10 Human-Centered Change & Innovation Articles of July 2023Drum 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 July’s ten most popular innovation posts:

  1. 95% of Work is Noise — by Mike Shipulski
  2. Four Characteristics of High Performing Teams — by David Burkus
  3. 39 Digital Transformation Hacks — by Stefan Lindegaard
  4. How to Create Personas That Matter — by Braden Kelley
  5. The Real Problem with Problems — by Mike Shipulski
  6. A Triumph of Artificial Intelligence Rhetoric — by Geoffrey A. Moore
  7. Ideas Have Limited Value — by Greg Satell
  8. Three Cognitive Biases That Can Kill Innovation — by Greg Satell
  9. Navigating the AI Revolution — by Teresa Spangler
  10. How to Make Navigating Ambiguity a Super Power — by Robyn Bolton

BONUS – Here are five more strong articles published in June 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:

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

The Real Reasons Employees Stay Or Leave

Hint: It’s about more than money

The Real Reasons Employees Stay Or Leave

GUEST POST from Shep Hyken

What if every great employee you (or your company) hired never left? Of course, that’s unrealistic … or is it? Joey Coleman is one of the brightest authors and speakers on the planet. His first book, Never Lose a Customer Again, is one of the very best books I’ve read on how to keep your customers coming back. He’s now taken some of the same ideas that worked for customer retention and written a second book, just as brilliant, Never Lose an Employee Again.

Coleman studied and researched organizations worldwide, and he found that 50% of hourly employees quit before their 100-day anniversary. For non-hourly or salaried employees, it’s 20%. I interviewed Coleman on Amazing Business Radio to learn how we can keep good employees.

“How we onboard employees and make them feel part of our community can differentiate whether they will be long-time employees or leave almost as fast as they came,” Coleman said. “The first 100 days are the most important time in the entire relationship with an employee because this is where the foundation is laid.”

So, why do employees leave? Contrary to popular belief, the No. 1 reason an employee leaves to work elsewhere is not money. In the traditional exit interview, where an employee talks to their employer face-to-face, money is the easiest and safest excuse for an exit. The true reasons for leaving are more telling—and can help prevent an employee from going, even if offered more money somewhere else. Coleman cites the Work Institute employee retention study, sharing the top five reasons employees leave:

  1. No clear career path — This is the top reason employees leave. Nearly one-quarter (24%) don’t see future opportunities in the organization. Most employees want to advance their careers and learn new skills. Laying out a potential path for an employee from the very beginning of their employment with you can have long-term benefits.
  2. Stress or lack of resources — Not providing employees with the tools they need or giving them too heavy of a workload can impact their emotional health, which could lead them to find work at another company.
  3. Health and family matters — As much as an employee may love working with your organization, personal health, a sick child or an aging parent can interfere with their ability to work. Regarding the latter, Coleman says, “Just as some employers provide daycare for young children, some employers in the future will also provide an eldercare program.”
  4. Work/life balance — The job has to fit the employee’s lifestyle. Something as seemingly insignificant as a long commute can negatively impact the employee’s personal life so much that they leave.
  5. Money — Almost one in 10 (9%) leave because of money. That means nine out of 10 leave for other reasons, often within our control.

After reading the reasons listed above, here is Coleman’s top advice:

  • Affirm the employee made the right decision to come to work at your organization — The concept of affirm is one of the eight phases of the first 100 days Coleman covers in his book. There is a scientifically proven emotional reaction in which a new employee begins to doubt their decision to accept your job offer. It is called “new hire’s remorse,” which happens between when they accept the job offer and their first day. Reaffirm your new employee’s decision to accept your job offer. Establish a personal and emotional connection even before their first day.
  • On-boarding must be practiced at a higher level — Don’t just onboard the first day or two (or even a week or two). Coleman says, “If you’re not painting a clear path for your people but expecting them to manage and figure out their careers on their own, then you deserve to lose them.” The amount of time you spend with employees over the first 100 days directly correlates to how long they will stay.
  • The employee’s personal life is important — Notice that three of the five reasons people leave the organization are personal. Coleman says, “You need to know what’s going on between 5 p.m. and 9 a.m. as much as you are interested in what’s happening between 9 a.m. and 5 p.m. What are your people doing and dealing with when they are not at work?”

I’ve often said that you won’t have a business without customers. Coleman makes the case that the same applies to employees. Much of what gets customers to come back is a great customer experience. You can’t deliver a great CX without a great employee experience on the inside of your organization. Coleman says, “People think that customer experience and employee experience are two different silos. The better way to look at this is that they are two sides of the same coin. We must work on both!”

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

3 Examples of Why Innovation is a Leadership Problem

Through the Looking Glass

3 Examples of Why Innovation is a Leadership Problem

GUEST POST from Robyn Bolton

Do you sometimes feel like you’re living in an alternate reality?

If so, you’re not alone.  Most innovators feel that way at some point.

After all, you see things that others don’t.

Question things that seem inevitable and true.

Make connections where others only see differences.

Do things that seem impossible.

It’s easy to believe that you’re the crazy one, the Mad Hatter and permanent resident of Wonderland.

But what if you’re not the crazy one?

What if you’re Alice?

And you’re stepping through the looking glass every time you go to work?

In Lewis Carroll’s book, the other side of the looking glass is a chessboard, and all its inhabitants are chess pieces that move in defined and prescribed ways, follow specific rules, and achieve defined goals.  Sound familiar?

Here are a few other things that may sound familiar, too

“The rule is, jam tomorrow and jam yesterday – but never jam today.” – The White Queen

In this scene, the White Queen offers to hire Alice as her lady’s maid and pay her “twopence a week and jam every other day.”  When Alice explains that she doesn’t want the job, doesn’t like jam, and certainly doesn’t want jam today, the queen scoffs and explains the rule.

The problem, Alice points out, is that it’s always today, and that means there’s never jam.

Replace “jam” with “innovation,” and this hits a little too close to home for most innovators.

How often do you hear about the “good old days” when the company was more entrepreneurial, willing to experiment and take risks, and encouraged everyone to innovate?

Innovation yesterday.

How often do you hear that the company will invest in innovation, restart its radical innovation efforts, and disrupt itself as soon as the economy rebounds, business improves, and things settle down a bit?  Innovation tomorrow.

But never innovation today.  After all, “it’s [innovation] every other day: today isn’t any other day, you know.”

“When I use a word, it means just what I choose it to mean – neither more, not less.” – Humpty Dumpty

In this scene, poor Alice tries to converse with Humpty Dumpty, but he keeps using the “wrong” words.  Except they’re not the wrong words because they mean exactly what he chooses them to mean.

Even worse, when Alice asks Humpty to define confusing terms, he gets angry, speaks in a “scornful tone,” and smiles “contemptuously” before “wagging his head gravely from side to side.

We all know what the words we use mean, but we too often think others share our definitions.  We use “innovation” and “growth,” assuming people know what we mean.  But they don’t.  They know what the words mean to them.  And that may or may not be what we mean.

When managers encourage people to share ideas, challenge the status quo, and take risks, things get even trickier.  People listen, share ideas, challenge the status quo, and take risks.  Then they are confused when management doesn’t acknowledge their efforts.  No one realizes that those requests meant one thing to the managers who gave them and a different thing to the people who did them.

“It takes all the running you can do, to keep in the same place.  If you want to go somewhere else, you must run at least twice as fast as that!” – The Red Queen

In this scene, the Red Queen introduces life on the other side of the looking glass and explains Alice’s new role as a pawn.  Of course, the explanation comes after a long sprint that seems to get them nowhere and only confuses Alice more.

When “tomorrow” finally comes, and it’s time for innovation, it often comes with a mandate to “act with urgency” to avoid falling behind.  I’ve seen managers set goals of creating and launching a business with $250M revenue in 3 years and leadership teams scrambling to develop a portfolio of businesses that would generate $16B in 10 years.

Yes, the world is moving faster, so companies need to increase the pace at which they operate and innovate.  But if you’re doing all you can, you can’t do twice as much.  You need help – more people and more funding, not more meetings or oversight.

“Life, what is it but a dream?”

Managers and executives, like the kings and queens, have roles to play.  They live in a defined space, an org chart rather than a chessboard, and they do their best to navigate it following rules set by tradition, culture, and HR.

But you are like Alice.  You see things differently.  You question what’s taken as given.  And, every now and then, you probably want to shake someone until they grow “shorter – and fatter – and softer – and rounder – and…[into] a kitten, after all.”

So how do you get back to reality and bring everyone with you?  You talk to people.  You ask questions and listen to the answers.  You seek to understand their point of view and then share yours.

Some will choose to stay where they are.

Some will choose to follow you back through the looking glass.

They will be the ones who transform a leadership problem into a leadership triumph.

Image credits: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

A Different Approach to Well-being, Resilience and Creativity

A Different Approach to Well-being, Resilience and Creativity

GUEST POST from Janet Sernack

In our previous blogs, we outlined the need, in our chaotic world of unknowns, to reclaim our focus and attention and take charge of our own minds. By reclaiming these, and enhancing self-awareness we have a deeper understanding of the sources of our anxiety and distractions.  How to self-manage and self-regulate them through developing deliberate calm. To effectively create consciousness, and a safe space that potentially transforms the power of our minds and hearts to connect with others, cultivate well-being, harness people’s collective genius, and generate our resilience, through thinking about creativity differently.

Transforming fear and alarm

This mobilizes the energy our fears, anxiety, and alarm provide to transform the power of our minds and develop physical and psychological well-being. We can then apply proven neuroscience principles and coaching practices to cultivate resilience and think about creativity differently.

Transforming our fears and alarm in this way increases our resilience in responding to events in real-time, anticipating future events, and processing learning’s post events. It also enhances our well-being and creativity to enable us to be courageous and compassionate when inventing and innovating in an uncertain and constantly changing environment.

The potential outcomes include people experiencing more positive emotions, increased engagement at work, increased development of positive relationships, and more meaningful and purposeful work. These help us be adaptive, and transform the power of our hearts and minds to be creative, accomplish, learn, adapt, grow, and innovate through disruption.

Well-being is in crisis

In the latest report, by Udemy on “Workplace Learning Trends” they compare data collected from Australian workers (human capital) in early September 2022 with previous surveys in November 2019, August 2020, and May 2021.

They discovered three surprising truths about well-being, including:

  • Workers’ resilience levels are waning. More than two-thirds of workers (68.5%) felt like they were burning out at work. This is impacting workers’ levels of performance, job satisfaction, and commitment.
  • There is a crisis for meaningful work Only 39.1% of workers said their work was valuable and worthwhile, versus 47% in 2021, and 52.9% in 2020.
  • Many workplaces are wasting their well-being Workplaces have too much invested in EAP services (which are proving only slightly more effective than doing nothing) and not enough in more effective tools that workers are more comfortable accessing like Wellbeing Artificial Intelligence Bots, Wellbeing Apps, Wellbeing Workshops and Wellbeing Coaching.

This reinforces the need to think and act differently when we approach cultivating well-being, resilience, and creativity to better realize our human potential and human skills in times when they are our most valuable assets and needed the most and are crucial to future success!

Developing deliberate calm

“Deliberate calm” involves developing a practice of adaptive, intentional choices that anyone can develop by embracing what was once regarded as “soft” stuff: self-awareness, emotional intelligence, and mindfulness to learn proactively and lead dynamically amid the most uncertain circumstances, where according to Aaron De Smet, the co-author of “Deliberate Calm: How to Learn and Lead in a Volatile World”:

“Why do we say “deliberate”? Because if you’re not deliberate about it you will probably freak out. I need to be very deliberate in knowing that I’m in a chaotic situation, knowing the stakes are high, knowing there’s a lot of uncertainty, and then deliberately calming myself down and taking stock”.

Deliberate calm looks at the inner world, the outer world, the context, and the dynamic between those and starts by slowing down to create a safe space for people to enjoy the benefits of deliberate calm.  This helps activate, focus, and unleash our creative brains and facilitates thinking about creativity differently.

Hitting our pause buttons

Creating deliberate calm is one of the most critically urgent human skill sets to develop.

It involves creating for ourselves and co-creating, with others, more normalized states of equilibrium and calmness. This enables us to cultivate our physical and psychological well-being, develop resilience and unleash creativity differently by accessing our collective intelligence, skills, and experience through applying proven neuroscience principles and coaching practices.

It starts with initiating a habit of pausing long enough to take deep breaths, retreat, reflect, and access these inner parts of ourselves; including noticing our emotions, identifying our triggers, observing our physical reactions to normalize our equilibrium, coherence, and calmness, and focusing on thinking about creativity differently.

Re-appraising our situation

We can then reappraise what is really going on, by identifying what our emotions are telling us, sustaining the most resourceful emotions and letting negative ones go, and finally, by identifying the key options for taking positive actions. Ultimately take smarter risks, make smarter decisions, and take more intelligent actions that cultivate our well-being, develop our resilience, unleash creativity differently, and satisfy our desire for meaning, purpose, and accomplishment.

As evidenced by our global coaching practice, this personally empowering and energizing activity focuses our attention, minds, and hearts on what really matters, and on what we can truly influence and control in a world of unknowns, and engages people deeply in doing the value-adding, productive and meaningful work that delivers it.

Three new deliberate calming practices to access and unleash our creative brains

  • Being grounded: involves being fully embodied, whole, centered, and balanced in ourselves and our relationships, we are in complete control of our mental, physical, and emotional selves, and are not easily influenced or shaken by other ideas or individuals.
  • Our unconscious mind, through our brains’ default mode network (DMN), is freed to wander, and be spontaneous in emerging and generating novel and surprising ideas and patterns.

This is usually achieved by regularly practicing a range of very simple activities that help us get centered, including removing any distractions (mobile phones), deep breathing (box breathing), and slow grounding repetitive exercises such as Feldenkrais.

  • Being mindful: involves focusing our conscious attention on the present moment, our physical sensations, thoughts, and emotions in an accepting, nonjudgmental, and discerning way. It involves training our unconscious minds to notice, focus and pay deep attention to what is really going on, for ourselves, for others, and in the system, we are operating within.
  • Our conscious minds are now provided with the focus necessary for guided problem-solving and for identifying the actions required to deliver the desired outcomes.

This is usually achieved by simple activities, by directing your focus when walking during the day (in nature without headsets), yoga, swimming, golf, tennis, listening to music, cooking, or by simple mindful meditation practices.

  • Being conscious: involves being in the present moment, or fully in the “here and now,” and means that we are grounded, fully aware, and mindful of what is happening at every moment because we are now consciously aware and able to shift our minds and generate creative thinking strategies.
  • Our conscious minds are able to exploit possibilities and make sense of the ideas that surface in the mind-wandering phase, by accessing the salience network, which then recruits the executive control networks, in our brains to refine and develop an idea. We can then exploit the range of creative ideas to make unexpected connections and to emerge, diverge and converge novel ideas for thinking about creativity differently, as well as for smart risk-taking, decision-making, and innovative problem-solving.

Empowering people to envision and transform

Creating a safe space, to transform the power of our minds and hearts to connect with others cultivates our well-being, harnesses peoples’ collective genius, generates resilience, and unleashes creativity by thinking about creativity differently.

This manifests as an opportunity to empower people to plan and make the nudges necessary to kickstart change, envision and plan for the future of unknowns.

Rather than unintentionally colluding with their unconscious panicking and retreating from the fears, anxiety, and risks currently emerging in an uncertain world full of disruption and crises.

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, starting Friday, May 12, 2023.

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.

Image Credit: Pixabay

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

How Has Innovation Changed Since the Pandemic?

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:

  1. 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
  2. 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.
  3. 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

Subscribe to Human-Centered Change & Innovation WeeklySign up here to join 17,000+ leaders getting Human-Centered Change & Innovation Weekly delivered to their inbox every week.

What Business Are You In?

(Hint: It’s Probably Not What You Think)

What Business Are You In?

GUEST POST from Robyn Bolton

“What business are you in?”

How do you answer this all-too-common question?

Do you name the company you work for?

The industry you’re in?

The function you perform?

Bad news, your business isn’t defined by the company, the industry, and even your function.

Good news, the business you’re in is defined by your customers.

And their definition unlocks incredible potential for innovation and growth.

The 2:00 am Answer

In my first few months as an Assistant Brand Manager at P&G, I had a truly terrifying experience. Sitting in a training session, a senior executive locked eyes with me and asked, “What is Brand Equity?”

My first thought was, “you tell me, buddy. I’m the newbie here.”  My second thought, and the one that came out of my mouth, was probably something straight out of a marketing textbook.

“Wrong!” he exclaimed. “Brand equity is what a consumer says if you wake them up from a dead sleep at 2:00 am and scream ‘What is [brand]?’ in their face.”

I don’t know what scared me more, being yelled at for being wrong or the idea that breaking and entering and screaming brand names at unsuspecting sleepers was suddenly part of my job description.

The 2:00 am Answer is the business you’re in

The 2:00 am answer applies to more than just brand equity.

It reveals the business you’re in.

Because it’s the Job-to-be-Done your customers hire you to do

As the training went on, we learned how this mantra manifests in everything a brand (or company) does – its products, pricing, packaging, distribution, and marketing.

For example, if the most important thing to you about laundry is that clothes come out of the washing machine clean, you have dozens of options and probably buy the cheapest one.

But, if you want to be sure that clothes will be immaculate after the first wash because you know your kids will wear anything, even if it has stains, which will lead the other parents to judge you, you have one option – Tide.

Why the 2:00 am Answer matters

The 2:00 am Answer also defines where you have a right to play and to win.

Sometimes this space is bigger than you expect, revealing incredible opportunities for innovation and growth.

Sometimes it’s smaller than you want, exposing a strategic misalignment between what you offer and what your customers want. This happened to LEGO and took the company to the brink of bankruptcy.

In 1998, LEGO posted its first loss in company history. To reinvigorate growth, it shifted from being in the business of Toys to being in the business of Play. This led to two decisions that, while strategically aligned with Play, almost bankrupted the company. First was the introduction of new toys specifically designed to be built in less than 10 minutes so kids could start playing quickly. The second decision took LEGO into other aspects of play – video games, amusement parks, and a TV show supported by a line of action figures.

In 2003, LEGO reported a $238M loss, and with only one profitable product line, the future was bleak. So, LEGO started talking to customers (though probably not at 2:00 am). Through the conversations, LEGO learned that its expansion into all forms of play and the prioritization of Play over creation (building) wasn’t LEGO-y in the minds of consumers. So they rejected the new offerings. Instead, people loved LEGO because it offered “creative play” – the freedom and ability to turn ideas into tangible and interactive 3D models.

LEGO listened and went “back to the brick.”  The results speak for themselves. In 2015, LEGO overtook Ferrari to become the world’s most powerful brand. In 2021, LEGO earned $8.06B in revenue, a 27% increase from the prior year.

How to get and use the 2:00 am Answer (without committing a felony)

First, get clear on the business you WANT to be in. Ask yourself and your colleagues, what do we want our customers to hire us to do? Push beyond the easy and obvious answers (usually functional Jobs to be Done). How do you want customers to feel after hiring your company (emotional Jobs to be Done)? How do you want them to be perceived (social Jobs to be Done)? What Job to be Done do you want to do uniquely well?

Second, talk to your customers one-on-one at a time and place of their choosing. Ask them why they hire your business. Again, push beyond the easy and obvious answers to understand what they want to feel and be perceived after choosing you. Ask what other options they considered and why they hired your business.

Find and close the gap. What’s the difference between what you wanted to hear and what you actually heard? If the gap is bigger than expected, how can you expand and innovate your business to grow into all the Jobs people want to hire you to do? If the gap is smaller, how can you shift or redirect efforts to grow in ways where you have permission to operate?

The 2:00 am Answer can be the key to defining, growing, and transforming your business.

Who says nothing good happens after midnight?

Image credit: Unsplash

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

3 Steps to Find the Horse’s A** In Your Company (and Create Space for Innovation)

3 Steps to Find the Horse's A** In Your Company (and Create Space for Innovation)

GUEST POST from Robyn Bolton

Innovation thrives within constraints.

Constraints create the need for questions, creative thinking, and experiments.

But as real as constraints are and as helpful as they can be, don’t simply accept them. Instead, question them, push on them, and explore around them.

But first, find the horse’s a**

How Ancient Rome influenced the design of the Space Shuttle

In 1974, Thiokol, an aerospace and chemical manufacturing company, won the contract to build the solid rocket boosters (SRBs) for the Space Shuttle. The SRBs were to be built in a factory in Utah and transported to the launch site via train.

The train route ran through a mountain tunnel that was just barely wider than the tracks.

The standard width of railroad tracks (distance between the rails or the railroad gauge) in the US is 4 feet, 8.5 inches which means that Thiokol’s engineers needed to design SRBs that could fit through a tunnel that was slightly wider than 4 feet 8.5 inches.

4 feet 8.5 inches wide is a constraint. But where did such an oddly specific constraint come from?

The designers and builders of America’s first railroads were the same people and companies that built England’s tramways. Using the existing tramways tools and equipment to build railroads was more efficient and cost-effective, so railroads ended up with the same gauge as tramways – 4 feet 8.5 inches.

The designers and builders of England’s tramways were the same businesses that, for centuries, built wagons. Wanting to use their existing tools and equipment (it was more efficient and cost-effective, after all), the wagon builders built tramways with the exact distance between the rails as wagons had between wheels – 4 feet 8.5 inches.

Wagon wheels were 4 feet 8.5 inches apart to fit into the well-worn grooves in most old European roads. The Romans built those roads, and Roman chariots made those grooves, and a horses pulled those chariots, and the width of a horses was, you guessed it, 4 feet 8.5 inches.

To recap – the width of a horses’ a** (approximately 4 feet 8.5 inches) determined the distance between wheels on the Roman chariots that wore grooves into ancient roads. Those grooves ultimately dictated the width of wagon wheels, tramways, railroad ties, a mountain tunnel, and the Space Shuttle’s SRBs.

How to find the horse’s a**

When you understand the origin of a constraint, aka find the horse’s a**, it’s easier to find ways around it or to accept and work with it. You can also suddenly understand and even anticipate people’s reactions when you challenge the constraints.

Here’s how you do it – when someone offers a constraint:

  1. Thank them for being honest with you and for helping you work more efficiently
  2. Find the horse’s a** by asking questions to understand the constraint – why it exists, what it protects, the risk of ignoring it, who enforces it, and what happened to the last person who challenged it.
  3. Find your degrees of freedom by paying attention to their answers and how they give them. Do they roll their eyes in knowing exasperation? Shrug their shoulders in resignation? Become animated and dogmatic, agitated that someone would question something so obvious?

How to use the horse’s a** to innovate

You must do all three steps because stopping short of step 3 stops creativity in its tracks.

If you stop after Step 1 (which most people do), you only know the constraint, and you’ll probably be tempted to take it as fixed. But maybe it’s not. Perhaps it’s just a habit or heuristic waiting to be challenged.

If you do all three steps, however, you learn tons of information about the constraint, how people feel about it, and the data and evidence that could nudge or even eliminate it.

At the very least, you’ll understand the horse’s a** driving your company’s decisions.

Image credit: Pixabay

Endnotes:

  1. To be very clear, the origin of the constraint is the horse’s a**. The person telling you about the constraint is NOT the horse’s a**.
  2. The truth is never as simple as the story and railroads used to come in different gauges. For a deeper dive into this “more true than not” story (and an alternative theory that it was the North’s triumph in the Civil War that influenced the design of the SRBs, click here

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.

People Drive the World-Technology as a Co-Pilot via Center of Human Compassion

People Drive the World-Technology as a Co-Pilot via Center of Human Compassion

GUEST POST from Teresa Spangler

People at the Center – Technology as a Co-Pilot

Are people at the center of your innovation and new product plans? Have we made people the center of all things digital? Are human’s and our environment the center of the new world entering the 4th Industrial Revolution? When innovation is during groundbreaking disruptive inventions or whether innovation is iterating into new products… what is placed at the center of your strategies? What are the reasons for these new inventions?

So much is at stake, as the world turns to being driven by AI, humanoids, rockets’ red glare searching for new lands to inhabit, games and more games feeding our brains with virtual excitement and stimulation, devices galore on our bodies, in our hands, in our homes helping us navigate our every move and in many ways directing us on how to think. The acceleration of digital permeating our lives is mind boggling. The news we are fed, seemingly unbiased, the product advertisements that sneak into our feeds, the connections via too many social and work-related networks that appear all too promising and friendly too is overwhelming. Technology is encompassing our lives!

The Power of Technology

Don’t get me wrong, I love technology for all the positive it contributes to the world. Technology is allowing individuals to create! To create and earn! To take control of their lives and build meaningful endeavors. The creation of TIME and SPACE to live how we to live has been a major outcome of

1. technology but also 2. the pandemic.

Let’s explore the creator economy which has experienced an explosion of late. As referenced in the Forbes articleThe Biggest Trends For 2022 In Creator Economy And Web3, by Maren Thomas Bannon, Today, the total size of the creator economy is estimated to be over $100 billion and 50 million people worldwide consider themselves creators. Creators will continue to bulge out of the global fabric as individuals seek to augment their incomes or escape the confines or rigged corporate cultures. Technology is enabling creators no doubt!

Technology is also allowing forward acting organizations to scale growth at unprecedented speeds. Let’s look at a recent survey conducted by Accenture

Curious about the effects of the pandemic, we completed a second round of research in early 2021 and discovered the following:

  1. Technology Leaders have moved even further ahead of the pack and have been growing at 5x the rate of Laggards on average in the past three years.
  2. Among the “Others” there is a group of organizations—18% of the entire sample—that has been able to break previous performance barriers—the Leapfroggers.

Let’s look at a recent survey conducted by Accenture

Curious about the effects of the pandemic, we completed a second round of research in early 2021 and discovered the following:

  1. Technology Leaders have moved even further ahead of the pack and have been growing at 5x the rate of Laggards on average in the past three years.
  2. Among the “Others” there is a group of organizations—18% of the entire sample—that has been able to break previous performance barriers—the Leapfroggers.

Of course, so much technology is doing good things for the world. 3-D printing is emerging at the center of homelessness. As reported in the #NYTIMES, this tiny village in Mexico is housing homeless people. The homes were built using an oversized 3-D printer.

Another example positive outcomes of technology is the emergence of over-the-counter hearing devices. Fortune Business Insights estimates the global hearing aids market is projected to grow from $6.67 billion in 2021 to $11.02 billion by 2028 at a CAGR of 7.4% in forecast period, 2021-2028.

These devices, until this year, were regulated to being sold by medical professionals at, for the majority of population in need, very high prices $2000 to $5000+ per hearing aid. Yes typically you need two. But recent innovations in ear buds and bluetooth are allowing other technology companies into the game! Take Bose for example, the FDA recently approved Bose SoundControl Hearing Aids to be purchased on their website for $895/pair. No need for a hearing professional. This significantly changes the playing field and opens the doors for so many that have put off purchases (of these not covered by insurance by the way) devices.

Entertainment & leisure travel is going to a whole new level with the help of technology. It’s wonderful that anyone with connectivity and travel the world and explore via Virtual Reality. Here are 52 places you can explore in the comfort of your home shared by NY Times. Many of us attended conferences and events over the past two years virtually. We’ll see an exponential growth in virtual reality experiences in the coming year.

So why am I talking about creating a Center for Human Compassion if so much good is really coming out of technology? Because many of the outcomes are also unrealized and not anticipated or at least publicized to prepare people. It is essential for companies, technologists, and product teams to consider the consequences of new technologies. Not as an afterthought but at the forethought, from inception of ideas we must ask what are the downsides? How will people be affected? What could happen?

The quote below is taken from the World Economic Forum report, Positive AI Economic Futures

machines will be able to do most tasks better than humans. Given these sorts of predictions, it is important to think about the possible consequences of AI for the future of work and to prepare for different scenarios. Continued progress in these technologies could have disruptive effects: from further exacerbating recent trends in inequality to denying more and more people their sense of purpose and fulfillment in life, given that work is much more than just a source of income.

WeForum brings 150 thought leaders together to share thoughts on how we create an AI world we want. For all of AI’s good, there are potentials for negative outcomes.

Let’s take the military’s fight again hobbyists and drones. In the recent article from WSJ, The Military’s New Challenge: Defeating Cheap Hobbyist Drones, how much energy was placed on Human Compassion if drone technologies, IoT and AI got in the wrong hands?

The U.S. is racing to combat an ostensibly modest foe: hobbyist drones that cost a few hundred dollars and can be rigged with explosives. @WSJ

I feel certain there was some consideration but not enough to draw out possible negative impacts and how to mitigate them before they could even start. Did we really put people at the center of what is possible with drone technologies? What do you think?

This is no easy task. We know what is good for us can turn to bad for us when in the wrong hands, or if it’s not moderated to healthy limits. How do we help facilitate a more compassionate relationship with technology and put people at the center?

Here are four strategies to ensure you are keeping people at the center of your innovation, new products and technology development efforts.

  1. Create a Center of Human Compassion, or People Centered Technology Consortium, or what ever you wish to brand your initiative. Select trusted advisors from external (customers, partners…) and a select group of internal stake holders to join your collaborative to gather input, feedback and push back!
  2. Discuss with your trusted group very early on. Gamify initiatives around gathering what ifs! Anticipating the worst you will plan better for the best! (leaving the hope out)
  3. Build a continuous feedback loop. It is important that insights and scenarios are revisited and rehashed over and over again.
  4. Join other consortiums and get involved with AI and tech for good initiatives. If you can’t find ones you feel are of value to you and your company, start one!

Mantra for the year: #lucky2022 but not without work and placing people front and center of plans will good fortune and luck come for the masses.

As always, reach out if you have ideas you’d like to share or questions you’d like to discuss!

Subscribe to Human-Centered Change & Innovation WeeklySign up here to get Human-Centered Change & Innovation Weekly delivered to your inbox every week.