Tag Archives: Innovation Culture

SpaceX is a Masterclass in Innovation Simplification

SpaceX is a Masterclass in Innovation Simplification

GUEST POST from Pete Foley

This capture from a recent SpaceX tweet is a stunning visual example of smart innovation and simplification. 

While I’m not even close to being a rocket scientist, and so am far from familiar with all of the technical details, I’ve heard that breakthroughs incorporated into this include innovative sensor design that allows for streamlined feedback loops. But this goes beyond just impressive technical innovation.   To innovate at this level requires organizational and cultural flexibility as well as technical brilliance. That latter flexibility is probably far more broadly transferable and adoptable than specific advances in rocket science, and hence more useful to the broader innovation community. So let’s dig a little deeper into that space.

Secret Sauce?  Organizationally SpaceX is well known for less formal hierarchies, passion, ownership and engineers working on the production floor.  This hands on approach creates a different, but important kind of feedback, while passion feeds intrinsic motivation, ownership and engagement, which is so critical to consistent innovation. 

Learning from Failure – An Innovation Superpower?  But perhaps most important of all is the innovation culture. Within SpaceX there is a very clear willingness to experiment and learn from failure.  Not lip service, or the sometimes half-hearted embrace of failure often found in large, bureaucratic organizations, where rewards and career progression often doesn’t reflect the mantra of learning by failing.  This is an authentic willingness to publicly treat productive failure of individual launches as a learning success for the program, and to reward productive failure and appropriate risk taking.  Of course, it’s not always easy to walk the talk of celebrating failure, especially in spacecraft design, where failures are often spectacular, public, and visual gold for the media.  And no doubt this is compounded by Musk’s controversial public profile, where media and social media are often only too keen to highlight failures.  But the visual of Raptor 3 is for me a compelling advertisement for authentically embedding learning by failure deeply into the DNA of an innovative organization. 

Stretch Goals:  Musk is famous for, and sometimes ridiculed for setting ambitious stretch goals, and for not always achieving them.   But in a culture where failure is tolerated, or if done right, celebrated, missing a stretch goal is not a problem, especially if it propelled innovation along at a pace that goes beyond conventional expectation.    

Challenging Legacy and ‘Givens’:  Culturally, this kind of radical simplification requires the systematic challenge of givens that were part of previous iterations.  You cannot make these kind of innovation leaps unless you are both willing and able to discard legacy technical and organizational structures.  

At risk of kicking Boeing while it is down, it is hard not to contrast SpaceX with Boeing, whose space (and commercial aviation) program is very publicly floundering, and facing the potentially humiliating prospect of needing rescue from the more agile SpaceX program. 

Innovation Plaque:  But in the spirit of learning from failure, if we look a bit deeper, perhaps it should not be a surprise that Boeing are struggling to keep up. They have a long, storied, and successful history as a leader in aerospace.  But history and leadership can be a blessing and a curse, as I know from P&G. It brings experience, but also bureaucracy, rigid systems, and deeply rooted culture that may or may not be optimum for managing change.  Deep institutional knowledge can be a similar mixed blessing.  It of course allows easy access to in-domain experience, and is key to not repeating past mistakes, or making naïve errors.  But is also comes with an inherent bias towards traditional solutions, and technologies.  Perhaps even more important is the organizationally remembered pain of past failures, especially if a ‘learn by failure’ culture isn’t fully embraced.  Failure is good at telling us what didn’t work, and plays an important role in putting processes in place that help us to avoid repeating errors.  But over time these ‘defensive’ processes can build up like plaque in an artery, making it difficult to push cutting edge technologies or radical changes through the system.

Balance is everything.  Nobody wants to be the Space Cowboy.  Space exploration is expensive, and risks the lives of some extraordinarily brave people.  Getting the balance between risk taking and the right kind of failure is even more critical than in most other contexts. But SpaceX are doing it right, certainly until now. Whatever the technical details, the impact on speed, efficiency and $$ behind the simplification of Raptor 3 is stunning.  I suspect that ultimately reliability and efficiency will also likely helped by increased simplicity.  But it’s a delicate line.  The aforementioned ‘plaque’ does slow the process, but done right, it can also prevent unnecessary failure.   It’s important to be lean, but  not ‘slice the salami’ too thin.  Great innovation teams mix diverse experience, backgrounds and personalities for this reason.  We need the cynic as well as the gung-ho risk taker.  For SpaceX, so far, so good, but it’s important that they don’t become over confident.  

The Elon Musk Factor:  For anyone who hasn’t noticed. Musk has become a somewhat controversial figure of late. But even if you dislike him, you can still learn from him, and as innovators, I don’t think we can afford not to. He is the most effective innovator, or at least innovation leader for at least a generation. The teams he puts together are brilliant at challenging ‘givens’, and breaking out of legacy constraints and the ‘ghosts of evolution’. We see it across the SpaceX design, not just the engine, but also the launch systems, recycling of parts, etc. We also see an analogous innovation strategy in the way Tesla cars so dramatically challenged so many givens in the auto industry, or the ‘Boring company in my hometown of Las Vegas.

Ghosts of Evolution I’d mentioned the challenges of legacy designs and legacy constraints. I think this is central to SpaceX’s success, and so I think it’s worth going a little deeper on this topic.  Every technology, and every living thing on our planet comes with its own ghosts.   They are why humans have a literal blind-spot in our vision, why our bodies pleasure centers are co-located with our effluent outlets, and why the close proximity of our air and liquid/solid intakes lead to thousands of choking deaths every year. Nature is largely stuck with incrementally building on top of past designs, often leading to the types of inefficiency described above. Another example is the Pronghorn antelope that lives in my adopted American West. It can achieve speeds of close to 90 mph. This is impressive, but vastly over-designed and inefficient for it’s current environment. But it is a legacy design, evolved at a time when it was predated upon by long extinct North American Cheetah. It cannot simply undo that capability now that it’s no longer useful. So far, it’s survived this disadvantage, but it is vulnerable to both competition and changing environment simply because it is over-designed.

Bio-Inspiration:  I’ve long believed we can learn a great deal from nature and bio-inspired design, but sometimes learning what not to do is as useful as ‘stealing’ usable insights. It’s OK to love nature, but also acknowledge that evolution has far more failures than successes. There are far, far more extinct species than living ones.  And virtually every one was either too specialized, or lacked the ability to pivot and adapt in the face of changing context.  

As innovators, we have unique option of creating totally new 2.0 designs, and challenging the often unarticulated givens that are held within a category. And we have the option of changing our culture and organizational structures too.  But often we fail do so because we are individually or organizationally blind to legacy elements that are implicitly part of our assumptions for a category or a company.  The fish doesn’t see the water, or at least not until it’s dangling from a hook. By then it’s too late.   Whatever you think of Musk, he’s taught us it is possible to create innovation cultures that challenge legacy designs extremely effectively.  It’s a lesson worth learning

Image credits: Twitter (via SpaceX)

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A Tipping Point for Organizational Culture

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:

  1. 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”.

  1. 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

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.

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 collaborationexperimentation, 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 21st 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

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.

  1. “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.
  2. “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.
  3. “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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Moneyball and the Beginning, Middle, and End of Innovation

Moneyball and the Beginning, Middle, and End of Innovation

GUEST POST from Robyn Bolton

Recently, pitchers and catchers reported to MLB Spring Training facilities in Florida and Arizona.  For baseball fans, this is the first sign of Spring, an occasion that heralds months of warmth and sunshine, ballparks filled (hopefully) with cheering fans, dinners of beers and brats, and the undying belief that this year will be the year.

Of course, there was still a lot of dark, dreary cold between then and Opening Day.  Perfect weather for watching baseball movies – Bull DurhamMajor LeagueThe NaturalField of Dreams, and, of course, Moneyball.

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

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

The Beginning

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

John Henry, Owner of the Boston Red Sox

Context

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

Lesson

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

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

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

The Middle

“It’s a process, it’s a process, it’s a process”

Bill Beane

Context

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

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

Lesson

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

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

The End

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

Billy Beane

Context

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

Lesson

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

That’s the cue to “hang up.”

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

In closing

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

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

Are you willing to step up to the plate?

Image credits: Pixabay

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

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

GUEST POST from Robyn Bolton

How do people react when you say “innovation?”

  1. Lean forward, eyes glittering, eager to hear more
  2. Stare blankly and nod slowly
  3. Roll their eyes and sigh
  4. 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.

  1. Invention
  2. Ideation
  3. Incubation
  4. Improvement
  5. Creation
  6. Design
  7. Growth
  8. Transformation
  9. 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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Innovation Is Driving Away Your Top Talent

Innovation Is Driving Away Your Top Talent

GUEST POST from Robyn Bolton

You want and need the best, most brilliant, most awesome-est people at your company. But with unemployment at a record low, the battle for top talent is fierce.

So, you vow not to enter the battle and invest in keeping your best people and building a reputation that attracts other extraordinary talents.

You offer high salaries, great benefits, flexible work arrangements, the prestige of working for your company, and the promise of rapid career progression. All things easily matched or beaten by other companies, so you get creative.

INNOVATION!

Your best people are full of ideas and have the confidence and energy to make things happen. So, you unleash them. You host hackathons and shark tanks. You install idea collection software and run contests. You offer training on how to be more innovative. You encourage employees to spend 20% of their time on passion projects.

And they quit.

They quit participating in all the opportunities you offer.

They quit sharing ideas.

They quit your company,

Not because they are ungrateful.

Or because they don’t want to innovate.

Or because they don’t have ideas.

They quit because they realize one of the following “truths”

They’re not “Innovators”

High performers believe they need to work on an innovation project to progress (because management explicitly or implicitly communicates this). But when they finally get their chance, they struggle. The project falls behind schedule, struggles to meet objectives, and is quietly canceled. They see this as a failure. They believe they failed.

But they didn’t fail. They learned something very uncomfortable – they’re not good at everything.

Innovation is different than Operation. When you’re operating, you’re working in a world full of knowledge, where cause and effect are predictable and “better” is easily defined. When you’re innovating, you’re working in a world full of assumptions, where things are unpredictable, patterns emerge slowly, and few things are defined. Most people are great at operating. Some people are great at innovating. Extraordinarily few are great at both.

Innovation is a hobby, not an imperative

The problem with innovation efforts like hackathons, shark tanks, and “20% Time” is that people pour their hearts and souls into them and get nothing in return. Sure, an award, a photo with the CEO, and bragging rights motivate them for a few weeks. But when their hard work isn’t nurtured, developed, and brought to a conclusion (either launched or shelved), they realize it was all a ruse.

They are disappointed but hope the next time will be different. It isn’t.

They stop participating to spend time on “more important” things (their “real” work). But they still care, so they keep tabs on other people’s efforts, quietly hoping this time will be different. It isn’t.

They grow cynical.

They choose to stay and accept that innovation isn’t valued or resign and go somewhere it is.

Their potential is bigger than your box

“I felt like Dorothy in the Wizard of Oz. Before the training, the world was black and white. After, it was full color. I don’t want to go back to black and white.”

For this person, the training had gone wonderfully awry.

The training built their innovation skills but motivated them to find another job because it opened their eyes. They realized that while they loved the uncertainty and creativity of innovation, their place in the organization wouldn’t allow them to innovate. They were in a box on an org chart. They no longer wanted to be in that box, but the company expected them to stay.

But are these “truths” true?

As Mom always said, actions speak louder than words.

  • Who does your company value more – innovators or operators? The answer lies in who you promote.
  • Is innovation a strategic priority? The answer lies in where and how you allocate resources (people, money, and time).
  • Do you want to retain the person or the resource? The answer lies in your willingness to support the person’s growth.

Speak the truth early and often

If a top performer struggles in an innovation role, don’t wait until the project “fails” to reassure them that operators are as (or more) important and loved as innovators. Connect them with senior execs who faced the same challenges. Make sure their next role is as desirable as their current one.

(Or, if innovators are truly valued more than operators, tell them that, too.)

If innovation is an imperative, commit as much time and effort to planning what happens after the event as you do planning the event itself. Have answers to how people will be freed up to continue to work on their projects, money will be allocated, and decisions will be made.

(Or, if innovation really is a corporate hobby, follow the model of top universities and let people participate f they want and give everyone else time off to pursue their hobbies).

If you want to retain the person more than the resource, work with them to plot a path to the next role. Be honest about the time and challenge of moving between boxes and the effects on their career. And if they still want to break out of the box, help them.

(Or, if you want them to stay in the box, tell them that, too.)

Don’t let Innovation! drive away your top talent. Use honesty to keep them.

Image credits: Pixabay

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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

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5 Questions to Answer Before Spending $1 on Innovation

5 Questions to Answer Before Spending $1 on Innovation

GUEST POST from Robyn Bolton

Just because you can doesn’t mean you should.

That is one of the very few pieces of advice that seems to apply to everything, including spandex workout clothes, movie tickets, and bank fees.

And innovation.

Just because you can invest in innovation doesn’t mean you should.

Yes, I know this is borderline blasphemy in a volatile, uncertain, complex, and ambiguous (VUCA) world. It’s also downright shocking from someone who spends every day trying to help companies innovate.

But it’s true.

And the state of corporate innovation would be infinitely better if executives stopped spending on innovation simply because they can and started exploring if they should.

You can start that exploration with these five (5) questions:

1. What is the current state of the business?

If the business fundamentals aren’t solid – you’re hemorrhaging cash, customers are abandoning you like a sinking ship, and you can’t make or deliver a quality solution to save your life – DO NOT INNOVATE! Do not spend $1 or 1 minute on anything other than fixing your fundamentals.

While innovation theory is very clear about the importance of building your core business and creating new ones, it does not apply in this situation because, in this situation, you won’t be in business long enough to reap the rewards of your innovation investment. Instead, invest in re-building your business into a viable and sustainable enterprise. Then invest in innovation.

If your fundamentals are solid, go to the next question.

2. Why is innovation important?

There is no wrong answer to this question. But your answer has massive implications on what you do next and the results you should expect.

If innovation is important because it enables or accelerates a strategic priority, creates or reclaims a competitive advantage, or fundamentally alters the basis of competition in your industry, then invest in it like the Mission Critical endeavor it is and expect game-changing results.

If innovation is important because it builds your reputation as an innovator while helping you attract and retain customers, employees, and investors, then it’s a marketing or PR tactic. Invest in it as you would other marketing and PR tactics and measure success in awareness, trial, and loyalty.

If innovation is important because investors are demanding it, take time to understand why. The answer is probably one of the two reasons above.

3. What does it need to deliver, and by when?

What gets measured gets managed. If it’s measured, it’s important. If it’s not measured, it’s a hobby.

You would never enter a new market, invest in a new plant, or launch a new product without success metrics and KPIs. You start with a plan for measuring success because these investments are important.

If innovation is truly important, you need to do the same thing – determine what you will measure (how we will quantify success), how (specific metrics and tools), and how often (monthly, quarterly, annually). And then do the work of measuring (and managing).

4. How much are we willing to invest before we get ROI?

Innovation takes time to generate meaningful results, but very few executives have the patience to wait years for results, mainly because they know that every dollar or person they allocate to innovation is a dollar or person not generating (almost) guaranteed results this year.

Be honest about when you expect meaningful results and whether you’re willing to continue to invest money and hire people for that long before you get results. If there’s a gap, close it by moving the time to results in (and adjusting expectations) or moving your investment horizon out.

5. ???

I want to hear from you.

What’s a question that you wished leadership asked before investing in innovation?

Drop your suggestion in the Comments, and I promise to respond!
(plus others will thank you)

Image credits: Pixabay

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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

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Innovation and the Silicon Valley Bank Collapse

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 2nd 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:

  1. Are critical enablers of strategic priorities
  2. Pursue realistic goals (stretch, don’t splatter!)
  3. Receive the people and resources required to deliver against those goals
  4. Are empowered to choose progress over process
  5. 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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