Tag Archives: Innovation

Do You Find Growth By Searching, Seeking, or Stalking?

GUEST POST from Robyn Bolton

Growth is the lifeblood of any organization, and the quest for growth opportunities is not just a strategic imperative. It is a fundamental necessity because the ability to identify and capitalize on opportunities is a game-changer for companies wanting to achieve sustainable success and stay ahead of the competition.

The challenge, however, is that not all opportunities are the same – some are head-smackingly obvious, while others are like trying to nail down JELL-O. Yet companies take a “one size fits all” approach to finding, developing, and capitalizing on them.

SEARCH when need to transform

What do you do when you need information but don’t know precisely what you need and certainly don’t know where to find it? You Google it or, in less-branded terms, you search for it.

When searching for growth opportunities, you’re looking for something but don’t know exactly what you need or where you’ll find it. Finding opportunities requires you to go beyond traditional market analysis and adopt a learner’s mindset to see ways to disrupt the status quo, challenge existing paradigms, and create new value propositions for your customers.

Searching is a creative process that entails investing in R&D, fostering a culture of intrapreneurship, and experimenting with new technologies. It requires a culture of creativity, experimentation, and agility to adapt to changing market dynamics. You have to be willing to be wrong on your way to being right, to move slowly so you can act quickly, and to throw out the timeline to harness the game-changing opportunity.

SEEK when you need to innovate

What do you do when you know what you need and generally where to find it? You seek it out – you go to where you think it will be, and, on the off-chance it’s not there, you pivot to Option B.

When you’re seeking growth opportunities, you have a target in mind but are not 100% sure how to hit it. Maybe you know you want to enter a new geography, but you need to figure out how to do it successfully and avoid the mistakes of previous entrants. Maybe it’s a new industry or category, but you must understand if and how to do it without disrupting your existing business model.

Seeking is both creative and analytical. You look for data and market intelligence, interview experts and individuals, analyze industry trends and explore untapped segments. It also requires you to stay open to surprises and new possibilities and take calculated risks to capitalize on emerging trends or consumer preferences. Like searching, it requires patience. Unlike searching, it respects a deadline.

STALK when you need to improve

Just like a lioness stalking a wildebeest, you do this when you see an opportunity and know exactly how to capture it. Yes, there will be zigs and zags along the way, and an unexpected competitor may pop up. But this is who you are and what you do.

When stalking opportunities, you bring the full value and power of your experience, expertise, resources, and capabilities to bear on an opportunity. This may happen when you’re operating and improving your core business. It may also occur after you’ve searched (and found) an opportunity, sought (and decided on) a strategy, and now you have the confidence to launch and scale.

Do Your Approaches Align with Your Goals?

Most companies say that they want to transform. Still, very few have the patience or intestinal fortitude to search because there is no Google for Transformation that produces the exact plan you need to transform successfully.

Companies also tend to stalk when they want to innovate, leaving opportunities to change the game and build sustainable competitive advantage on the sideline because they’re too uncertain or take too long.

Growth requires all three approaches – search, seek, and stalk – but only happens when your chosen approach aligns with your goals.

Image credit: Pexels

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Five Lessons from the Apple Car’s Demise

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Five Lessons from the Apple Car's Demise

GUEST POST from Robyn Bolton

In 2014, rumors started to circulate that Apple was developing a self-driving autonomous car to compete with Tesla. At the end of February 2024, rumors circulated that Apple was shutting down “Project Titan,” its car program. According to multiple media outlets, the only logical conclusion from the project’s death is that this decision signals the beginning of the end of Apple.

As much as I enjoy hyperbole and unnecessary drama, the truth is far more mundane.

The decision was just another day in the life of an innovation.

As always, there is a silver lining to this car-shaped cloud: the lessons we can learn from Apple’s efforts.

Lesson 1: Innovation isn’t all rainbows and unicorns

People think innovation is fun. It is. It is also gut-wrenching, frustrating, and infuriating. Doing something new requires taking risks, which is uncomfortable for most people. Even more challenging is that, more often than not, when you take a risk, you “fail.” (if you learned something, you didn’t fail, but that’s another article).

What you can do: Focus on the good stuff – moments of discovery, adventures when experimenting, signs that you’re making life better for others – but don’t forget that you’re defying the odds.

Lesson 2: More does not mean success

It’s been reported that Apple spent over ten billion dollars on Project Titan and that over 2000 people were working on it before it was canceled. With a market cap of over two trillion dollars, a billion dollars a year isn’t even a rounding error. But it’s still an eye-popping number, which makes Apple’s decision to cut its losses downright courageous.

What you can do: Be on guard for the sunk-cost fallacy. It’s easy to believe that you’ll eventually succeed if you keep working and pouring resources into a project. That’s not true, as Apple experienced. And in the rare cases when it is, executives are often left wondering if the success was worth the cost.

Lesson 3: Pivot based on data, not opinions

At least four different executives led Project Titan during its decade in development, and each leader brought their own vision for what the Apple Car should be. First, it was an electric vehicle with driver assistance that would compete with Tesla. Next, it was a self-driving car to compete with Google’s WayMo. Then, plans for fully autonomous driving were canceled. Finally, the team returned to its original target of matching Tesla’s Level 2 automation.

Changes in project objectives, strategies, and execution plans are necessary for innovation, so there’s nothing obviously wrong with these pivots. But the fact that they tended to happen when a new leader was appointed (and that Jony Ive caused an 18-month hiring freeze simply by expressing “displeasure”) makes me question how data-based these pivots actually were

What you can do: Be willing to change but have a high standard for what is required to cause a change. Data, even qualitative and anecdotal data, should be seriously considered. The opinion of a single executive, not so much.

Lesson 4: Dream big, build small

Apple certainly dreamed big with its aspirations to build a ~~fully~~ semi-autonomous vehicle and it poured billions into developing and testing the sensors, batteries, and partnership required to make it a reality. But it was never all-or-nothing in its pursuit of the automotive industry. Apple introduced CarPlay the same year it kicked off Project Titan, and it continues to offer regular updates to the system. Car Key was announced in 2020 and is now offered by BMW, Genesis, Hyundai, and Kia.

What you can do: Take a portfolio approach towards your overall innovation portfolio (Apple kept working on the iPhone, iPad, Apple Watch, and Vision Pro) and within each project. It’s not unusual that a part of the project turns out to be more valuable than the whole project.

Lesson 5: ___________________________

Yes, that is a fill-in-the-blank because I want to hear from you. What lesson are you taking away from Project Titan’s demise, and how will it make you a better innovator?

Image credit: Dall-E via Bing

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How I Use AI to Understand Humans

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(and Cut Research Time by 80%)

How I Use AI to Understand Humans

GUEST POST from Robyn Bolton

AI is NOT a substitute for person-to-person discovery conversations or Jobs to be Done interviews.

But it is a freakin’ fantastic place to start…if you do the work before you start.

Get smart about what’s possible

When ChatGPT debuted, I had a lot of fun playing with it, but never once worried that it would replace qualitative research. Deep insights, social and emotional Jobs to be Done, and game-changing surprises only ever emerge through personal conversation. No matter how good the Large Language Model (LLM) is, it can’t tell you how feelings, aspirations, and motivations drive their decisions.

Then I watched JTBD Untangled’s video with Evan Shore, WalMart’s Senior Director of Product for Health & Wellness, sharing the tests, prompts, and results his team used to compare insights from AI and traditional research approaches.

In a few hours, he generated 80% of the insights that took nine months to gather using traditional methods.

Get clear about what you want and need.

Before getting sucked into the latest shiny AI tools, get clear about what you expect the tool to do for you. For example:

Provide a starting point for research: I used the free version of ChatGPT to build JTBD Canvas 2.0 for four distinct consumer personas. The results weren’t great, but they provided a helpful starting point. I also like Perplexity because even the free version links to sources.
Conduct qualitative research for me: I haven’t used it yet, but a trusted colleague recommended Outset.ai, a service that promises to get to the Why behind the What because of its ability to “conduct and synthesize video, audio, and text conversations.”
Synthesize my research and identify insights: An AI platform built explicitly for Jobs to be Done Research? Yes, please! That’s precisely what JobLens claims to be, and while I haven’t used it in a live research project, I’ve been impressed by the results of my experiments. For non-JTBD research, Otter.ai is the original and still my favorite tool for recording, live transcription, and AI-generated summaries and key takeaways.
Visualize insights: Mural, Miro, and FigJam are the most widely known and used collaborative whiteboards, all offering hundreds of pre-formatted templates for personas, journey maps, and other consumer research templates. Another colleague recently sang the praises of theydo, an AI tool designed specifically for customer journey mapping.

Practice your prompts

“Garbage in. Garbage out.” Has never been truer than with AI. Your prompts determine the accuracy and richness of the insights you’ll get, so don’t wait until you’ve started researching to hone them. If you want to start from scratch, you can learn how to write super-effective prompts here and here. If you’d rather build on someone else’s work, Brian at JobsLens has great prompt resources.

Spend time testing and refining your prompts by using a previous project as a starting point. Because you know what the output should be (or at least the output you got), you can keep refining until you get a prompt that returns what you expect. It can take hours, days, or even weeks to craft effective prompts, but once you have them, you can re-use them for future projects.

Defend your budget

Using AI for customer research will save you time and money, but it is not free. It’s also not just the cost of the subscription or license for your chosen tool(s).

Remember the 80% of insights that AI surfaced in the JTBD Untangled video? The other 20% of insights came solely from in-person conversations but comprised almost 100% of the insights that inspired innovative products and services.

AI can only tell you what everyone already knows. You need to discover what no one knows, but everyone feels. That still takes time, money, and the ability to connect with humans.

Run small experiments before making big promises

People react to change differently. Some will love the idea of using AI for customer research, while others will resist with. Everyone, however, will pounce on any evidence that they’re right. So be prepared. Take advantage of free trials to play with tools. Test tools on friends, family, and colleagues. Then under-promise and over-deliver.

AI is a starting point. It is not the ending point.

I’m curious, have you tried using AI for customer research? What tools have you tried? Which ones do you recommend?

Image credit: Unsplash

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Predicting Unintended Consequences

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The 93% Rule

Predicting Unintended Consequences

GUEST POST from Robyn Bolton

Unintended consequences often catch us off guard despite their predictability. The moment they occur, we gasp in shock, shake our heads, and look at each other in wide-eyed horror at this thing that just happened that we could never ever ever have anticipated.

Yet, when (if) we do an After-Action Review, we often realize that these consequences were not entirely unforeseeable. In fact, had we anticipated them, we might have made different decisions.

The Unintended Consequences of Spreadsheets

In 1800 BCE, ancient Babylonians started recording data by scratching grids and columns onto clay tablets, and the spreadsheet was born. Over the millennia, we went from clay tablets to papyrus to parchment and then paper.

Fast forward to 1963 when R. Brian Walsh of Marquette University ported the Business Computer Language (BCL) program to an IBM 7040, and electronic spreadsheets became a reality. The introduction of VisiCalc by Apple in 1979 revolutionized spreadsheet capabilities, followed by Lotus 123 and Microsoft Excel. Today, spreadsheets are ubiquitous in education, business operations, financial markets, budgeting, and even personal inventories.

Unintended yet predictable consequences

While spreadsheets have undoubtedly enhanced efficiency and accuracy compared to traditional methods like clay tablets or hand-drawn tables on parchment, their ease of use has inadvertently led to complacency.

We stopped engaging in a multi-millennial habit of discussing, debating, and deciding before making a spreadsheet. We started flippantly asking people to create spreadsheets and providing little, if any, guidance because “it’s easy to make changes and run scenarios.”

This shift resulted in a reliance on automated models and a lack of shared assumptions or analytical rigor in decision-making processes.

Of course, these behaviors were never intended. They were, however, very predictable.

93% of Human Behavior is predictable .

Research spanning disciplines as varied as network scientists, anthropology, neuropsychology, and paleontology shines a light on how truly predictable we are.

Here are some examples:

Emotions before Reason: Ask someone if they make decisions based on their motivations, aspirations, and fears and use data to justify the decisions, and they’ll tell you no. Ask them the last time someone else made a decision that “made no sense,” and you’ll listen to a long list of examples.

Small gains now are better than big gains later: Thoughtfully planning before using solutions like spreadsheets, word processing, email, and instant messaging could save us time at work and help us get home 30 minutes earlier or work a few hours less on the weekend. But saving a few seconds now by brain-dumping into Word, setting up a “flexible” spreadsheet, and firing off a text feels much better.

Confidence > Realism: We’ve all been in meetings where the loudest voice or the most senior person’s opinion carried the day. As we follow their lead, we ignore signs that we’re wrong and explain away unexpected and foreboding outcomes until we either wake up to our mistakes or adjust to our new circumstances.

Predict the 93%. Create for the 7%

Acknowledging the predictability of human behavior is not an endorsement of stereotypes but a recognition of our innate cognitive processes. By incorporating this understanding into design, innovation, and decision-making processes, we better anticipate potential outcomes and mitigate unintended consequences.

While 93% of human behavior may follow predictable patterns rooted in evolutionary instincts, focusing on the remaining 7% allows for the exploration of unique behaviors and novel solutions. By embracing both aspects of human nature, we can navigate challenges more effectively and anticipate a broader range of outcomes in our endeavors, leading to informed decision-making and value creation.

Now, if I could only get Excel to stop auto-converting numbers into date/time format.

Image credit: Pixabay

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Positive Power of Negative Emotions Drive Change

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Positive Power of Negative Emotions Drive Change

GUEST POST from Robyn Bolton

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

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

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

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

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

Consider that:

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

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

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

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

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

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

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

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

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

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

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

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

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

Image credit: Pixabay

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Cover versions, Sequels, Taylor Swift and Innovation

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Taylor Swift and Innovation

GUEST POST from Pete Foley

An inherent contradiction in almost any new innovation is that it needs to be both new, but also somewhat familiar. If it doesn’t offer anything new, there is little motivation for consumers to risk abandoning existing habits or preferences to try it. But if it is not at least anchored in familiarity, then we ask consumers to put a lot of effort into understanding it, in addition to any opportunity cost from what they give up for trying something new. Innovation is difficult, and a lot of innovations fail, at least in part because of this fundamental contradiction.

Transformative Performance: Of course, innovations can be successful, which means we do navigate this challenge. But how? One way is to deliver something with such transformative benefits that people are willing to push themselves over the hump of learning something new. Huge benefits also create their own ‘gravity’, often spreading via world of mouth via media, social media, and even old-fashioned human-to-human conversations. This avoids the need for brute force mass marketing spend that can create the illusion of familiarity, but with a hefty price tag that is typically beyond smaller companies

Familiarity: The second option is to leverage what people already know in such a way that the ‘adoption hump’ becomes relatively insignificant, because new users intuitively know what the innovation is and how to use it.

Wow! The best innovations do both. CHATgpt Generative AI is a contemporary example, where transformative performance has created an enormous amount of word of mouth, but the interface is so intuitive there is little barrier to adoption, at least superficially.

Of course, using it skillfully is another thing altogether, but I think there is an insight there too. It’s OK to have an ongoing learning curve after initial adoption, but initial engagement needs to be relatively simple. The gaming industry are masters of this.

Little Wows! CHATgpt is brilliant innovation. But realistically, few of us are gong to create something quite that extraordinary. So how do we manage to create more modest wows that still drive trial, engagement and ultimately repeat business?

Science, Art and Analogy: As a believer that a lot of interesting things happen at the interface between science and art, and that analogy is a great tool, I think we cam learn a little about solving this by taking insight from the arts. In this case, music and movies. For example, popular music routinely plunders the familiar, and repackages it as new via cover versions. I often do the same myself! Movies do something similar, either with the cycle of remakes of classic movies, or with sequels that often closely follow the narrative structure of the original.

But this highlights some of the challenges in solving this dichotomy. It’s rare for a remake, cover version, or sequel to do better than the original. But a few do, so what is their secret? What works, and what doesn’t?

Distance from the original. Some of the best movie remakes completely reframe the original in ways that maintain a largely implicit familiarity, but do so without inviting direct comparisons of alignable differences to the original. For example, West Side Story is a brilliant retelling of Romeo and Juliet, Bridget Jones Diary reframes Pride and Prejudice, She’s All That is a retelling of George Bernard Shaw’s Pygmalion, while The Lion King retools Hamlet, etc. I’m not suggesting that nobody sees these connections, but many don’t, and even if they do, the context is sufficiently different to avoid constant comparisons throughout the experience. And of course, in most of these cases, the originals are not contemporary, so there is temporal as well as conceptual distance between original and remake. Similarly with cover versions, Hendrix and the Byrds both completely and very successfully reframed Dylan (All Along the Watchtower and Mr. Tambourine Man). Sinead O’Connor achieved similar success with Prince’s “Nothing Compares 2 U”. For those of you with less grey in their hairl, last summers cover of Tracy Chapman’s ‘Fast Car’ by Luke Combs shows that covers can still do this.

2. Something New. A different way to fail is to tap familiarity, but without adding anything sufficiently new or interesting. All too often covers, sequels and remakes are simply weaker copies of the original. I’m sure that anyone reading this can come up with their own examples of a disappointing remake or sequel. Footloose, Annie, Psycho, Tom Cruise’s the Mummy or Karate Kid are all candidates for me. As for sequels, again, I’m sure you can all name a respectable list of your own wasted 2 hours, with Highlander 2 and Jaws the Revenge being my personal cures for insomnia. And even if we include novelty, it cannot be too predictable either. It needs to at least be a little surprising. For example, the gender reversal of the remake of Overboard has a point of difference in comparison to the Goldie Hawn original, but its not exactly staggeringly novel or surprising. It’s a lot like a joke, if you can see it coming, it’s not going too create a wow.

3. Don’t Get De-Selected. Learning from the two previous approaches can help us to create sufficient separation from past experience to engage and hopefully delight potential consumers. But it’s important to not get carried away, and become un-tethered from familiarity. For example, I personally enjoy a lot of jazz, but despite their often extraordinary skill, jazz musicians don’t fill many arenas. That’s in part because jazz asks the listener to invest a lot of cognitive bandwidth and time to develop an ‘ear’, or musical expertise in order to appreciate it. It often moves a long way from the familiar original, and adds lot of new into the equation. As a result, it is a somewhat niche musical form. Pop music generally doesn’t require the same skill or engagement, and successful artists like Taylor Swift understand that. And when it comes to innovation, most of us want to be mainstream, not niche. This is compounded because consumers today face a bewildering array of options, and a huge amount of information. One way our brains have evolved to deal with complexity is to quickly ignore or ‘de-select’ things that don’t appear relevant to our goals. A lot of the time, we do this unconsciously. Faced with more information than we can process, we quickly narrow our choices down to a consideration set that is ‘right-sized’ for us to make a decision. From an innovation perspective, if our innovations are too ‘jazzy’, they risk being de-selected by a majority on consumers before they can be fully appreciated, or even consciously noticed.

There’s no precise right or wrong strategy in this context. It’s possible to deliver successful innovations by tapping and balancing these approaches in many different ways. But there are certainly good and bad executions, and I personally find it helpful to use these kinds of analogy when evaluating an innovation. Are we too jazzy? Do we have separation from incumbents that is meaningful for consumers, and not just ourselves? And the latter is a real challenge for experts. When we are deeply engaged in a category, it’s all too easy to get lost in the magic of our own creations. We see differences more clearly than consumers. It’s easy for us to become overly excited by relatively small changes that excite us, but that lack sufficient newness and separation from existing products for consumers who are nowhere near as engaged in our category as we are. But it’s also easy to create ‘jazz’ for similar reasons, by forgetting that real world consumers are typically far less interested in our products than we are, and so miss the brilliance of our ‘performance’, or perhaps don’t ‘get it’ at all.

For me, it is useful to simply ask myself whether I’m a Godfather II or a Highlander II, a Taylor Swift or a Dupree Bolton, or even Larry Coryell. And there’s the rub. As a musician, I’d rather be Larry, but as a record company exec, I’d far rather have Taylor Swift on my label.

Image credits: Wikimedia Commons

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Good Intentions Pave the Way to Innovation Hell

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

Good Intentions Pave the Way to Innovation Hell

GUEST POST from Robyn Bolton

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bottom line

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

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

But that’s better than where it could go.

Image credit: Unsplash

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Challenging the Assumption of the Status Quo

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(A Lesson Learned from Yogurt)

Challenging the Assumption of the Status Quo

GUEST POST from Robyn Bolton

In September 2006, I moved to Copenhagen, Denmark, on a temporary assignment with BCG. As one does when arriving somewhere for an extended period, I went to the grocery store to stock my kitchen.

Since the grocery store was on the ground floor of my building, I bought enough food for a few breakfasts and dinners, made note of the other offerings for future trips, and learned through painful public embarrassment that one must purchase grocery bags (and those bags are nowhere near the checkout lane).

The following day, yogurt was on the menu, and I grabbed the first of the three options I had bought the previous day – a small container of strawberry yogurt.

My heart sank when I peeled off the top.

Instead of super healthy, organic, natural (I’m in Scandinavia, for crying out loud!) yogurt, the stuff in my cup was a rather suspicious beige with dark brown flecks.

Stifling my instinct to dry heave, I chucked the cup into the garbage, along with the five other cups in the clearly spoiled pack, and pulled Brand #2 out of the refrigerator. Surely, this strawberry yogurt would be safe to eat.

But it, too, was beige. A lighter beiger and without the disturbing brown flecks. But still beige.

“You’ve got to be kidding me,” I muttered. Admittedly, the grocery store was more of a glorified convenience store, but c’mon, how hard is it to keep track of Sell By dates?

Into the garbage, it went. Out of the refrigerator came Brand #3 (Yes, I take a portfolio approach to innovation AND food purchases)

Closing my eyes and saying a quick prayer to both the grocery and yogurt gods, I peeled open the yogurt. Not beige but a slight hint of pink, just enough to reassure me that it contained strawberries and hadn’t curdled but not so much that I suspected an American-amount of food coloring.

Later that day…

At lunch, my new colleagues asked how I was settling in. I regaled them with my “bumbling American experiencing culture shock in a country where she looks (and is initially treated like) a local” stories.

As we gathered up our dishes and returned to the kitchen, I commented that I was surprised that my local grocery would keep expired products on the shelf. When they echoed my surprise, I told them about the spoiled yogurt and that 2 of the three brands I purchased were bad.

Based on the glances they exchanged, I knew I had another story to add to an already uncomfortably full book.

It turns out that. The “good” yogurt I ate that morning was from the lowest quality brand, one that no self-respecting Dane would consider eating but that is sold to unsuspecting foreigners (Hi, that’s me). The “bad” yogurt was from respected all-natural brands. All yogurt, they explained, falls somewhere in the spectrum from white to beige or even tan. That’s why they print the flavor name and a picture of the fruit on the label.

How often do we make the same mistake?

How often do we reject something because it’s not what we expect to see? Because it’s not what we’re used to?

Maybe not often when it comes to yogurt, but what about other more important things, like:

Trends
Technologies
Ideas
Business Models
Startups
People

And what happens when we don’t have people willing to point out that we’re no longer in a place where our status quo applies?

Image credit: Pixabay

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Thinking Differently About Leadership and Innovation

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Thinking Differently About Leadership and Innovation

GUEST POST from Janet Sernack

We live in a world, with less stability, certainty, simplicity, and predictability, where regional conflicts, societal divisions, and civil unrest have increased globally. Simultaneously, technological-induced disruptive innovations and the climate crisis impact every aspect of our daily lives. This means that we live in an age of overwhelm and a world of unknowns, requiring us all to know how to uncover and eliminate our individual and collective blind spots, to be adaptive and innovative. By thinking and acting differently about leadership and innovation, we can all grow, survive, and thrive within it.

This a moment in time that calls for leaders to boldly and courageously, step up, shift out of any myopic, reactive, cost, and short-term focus, and develop their leadership consciousness. By taking personal responsibility, and being accountable for owning and shifting their interior state or inner being, to eliminate flaws, maximize core strengths, and build confidence, capacity, and competence to adapt, innovate, and grow through disruption.

To refocus on developing future-fit systemic and innovative solutions, that add real value in ways that serve and sustain people, profit, and the planet, differently.

Leadership is in crisis

We are experiencing a global leadership crisis.

Many leaders, in the corporate sector, and national and international institutions have become increasingly reactive. In ways that are passively or aggressively defensive, egotistic, and often self-serving. By vacillating between political correctness, denial, justification, and avoidance – and between attacking, shaming, and blaming groups, individuals, and nations for the current state of social unrest, political chaos, cultural divisions, and regional and religious conflicts.

Hitting a pause button

The missing key element is the leadership consciousness required in taking the time to pause, retreat (step back), reflect, and explore the deep causes, current implications, and nature of challenging, complex, and systemic problems.

Leaders are obliged to step out of their habitual comfort zones and boost their ability to bravely make sense of what is going on – and develop the foresight skills to risk mitigate and identify the most intelligent actions that will deliver high-value and high-impact outcomes that serve people, profits, and the planet.

To uncover the repetitive mindsets and behaviors that keep on producing results that no one wants, by bravely exposing and eliminating their leadership blind spots.

Leadership blind spots

We know that most of the innovative solutions to the complex challenges we face already exist.

To unleash these desirable, value-adding, and innovative solutions, we need to empower, enable, and equip leaders to bravely and safely expose and eliminate their largely, unconscious and unknown leadership blind spots. These exist in our individual and collective leadership, they also exist in our everyday team and social interactions.

Because most leaders are smart and know what to do, and how to do it, identifying and eliminating any leadership blind spots will enable them to do it better.

Yet, despite, in many cases, years of leadership training they are at risk of being perpetually reactive, unfocused, overcome with “busyness” and addicted to the tasks involved in “getting stuff” (usually the urgent “small stuff” and not always the “important stuff”) the done.

As defined by Dr. Karen Blakeley in “Leadership Blind Spots and What to Do about Them,” a blind spot is “a regular tendency to repress, distort, dismiss or fail to notice information, views or ideas in a particular area that results in an individual failing to learn, change or grow in response to changes in that area.”

Source of leadership blind spots

The majority of leaders are mostly blind to the Source from which they operate. This is often because many do not have the self-awareness and emotional intelligence to manage and self-regulate any of their unconscious un-resourceful emotional states, mindsets, and behaviors.

Leadership Consciousness

“An ordered distinction between self and environment, simple wakefulness, one’s sense of self-hood or soul explored by “looking within”; being a metaphorical “stream” of contents, or being a mental state, mental event or mental process of the brain”.

Igniting the brain

Leadership blind spots are typically contained in our neurology and can be exposed and eliminated by:

Paying attention to their three core neurological levels and being intentional in cultivating their leadership consciousness.

When engaged in a coaching partnership, a leader can learn how to shift, self-regulate, and self-manage at all three levels to effectively eliminate their flaws, and learn how to think and act differently in delivering successful transformation and change initiatives.

Power of Coaching Intervention

A coach is an external disruptor who seeks to bring out the best in a leader, tap into and maximize their potential, and adds value by facilitating deep, insight-based learning processes, that shifts mindsets and result in sustainable behavior change.

Coaching helps smart people be and think beyond who they are being and beyond what they are thinking now. In ways that can empower, enable, and equip leaders to adapt, innovate, and grow, cultivate their imagination and creativity, to think and act differently in an unstable world.

This enables them to develop and implement systemic and innovative solutions in a timely way and at scale.

Noticing, disrupting, disputing, and deviating

Coaches partner with leaders to enable them to notice, disrupt, dispute, and deviate by accessing and harnessing resourceful emotional states, and mindsets. Coaches safely explore the “boxes”, thinking, or the “stories” a leader may have been unconsciously living within, and constricted by.

Because we can’t solve the problem with the same thinking that created it in the first instance.

Especially in a 21st-century world where developing leadership consciousness enables us to adapt, innovate, and grow by:

Reducing our brain’s ability to hijack us when doing its best to constantly keep us safe from danger,
Letting go of old pervasive Industrial Age mental models and perspectives, especially around cost and efficiency,
Relearning new future-fit ways of being, thinking, and acting differently.

And increases our ability to be agile, centered, and focused in thinking faster in the Disruption Age, where technology is accelerating faster than our human brains are.

Upskilling our brains!

A coaching partnership will create a safe and collective holding space to help leaders deep dive into the unknown develop strategies and develop their leadership consciousness in ways that:

Opens their minds, ignites their imagination, curiosity, and creativity, shifts their perspective, makes sense of things develops a whole systems perspective, and think differently,
Opens their hearts to become connected with self, others, systems, and with Source, and be empathic and compassionate,
Opens their will to let go of the need for control, and allows them to deal with paradox and the new to emerge, which can be designed, iterated, and pivoted, in ways that enable them to act differently, in designing and implementing systemic and innovative solutions.

Closing leadership blind spots to adapt, innovate and grow

A coach empowers, enables, and equips a leader’s capacity, confidence, and competence, to identify and close their leadership blind spots, be in charge of their minds, and think and act differently, to adapt, innovate, and grow in times of great uncertainty.

To convincingly work with, and flow with both their peoples overwhelm, and with the constraints in the external environment by:

Developing an awareness of their neurological RIGIDITY which exists within their emotional, cognitive, and visceral states, in turn, impacts their ability to mobilise, focus, and engage their efforts.

When a leader has a blind spot in this area, they may demonstrate rigidity, or functional fixedness, resulting in an inability to mobilise, they will be withdrawn, reactive, and become overly passive or even aggressive. Because they are unconsciously at the effect of the “mental blocks” resulting from unacknowledged fears and anxiety.

Developing their neurological PLASTICITY and flexibility to be able to attend to, regulate, and focus their thoughts, and feelings, and be grounded, mindful, present, and intentional in taking intelligent actions.

When a leader has a blind spot in this area, they will not be able to access their brain’s ability to change, reorganize, or grow new neural networks, learn, adapt, and become resilient. They will not develop the agility required to shift mindsets or behaviours, or even learn the new skills that will equip them to be future-fit and deliver the results they seek.

Generating the critical and creative thinking, problem sensing, and solving skills required to improve their leadership consciousness and GENERATE their crucial elastic thinking and human skills required to see, think differently in solving complex and wicked problems, be future-fit, and lead others to thrive.

When a leader has a blind spot in this area, they will take a conventional and linear approach to decision-making problem-solving, and team development. They will safely stay stuck in what they know, even though what they did in the past may not have worked.

Adding value to the quality of peoples’ lives

If we keep on trying to solve the problem with the same thinking (and neurological state) that created it, we will continue to reproduce the results no one wants.

We will not be able to shift beyond what we think now, nor will we connect, export, and, discover the crucial new horizons we need to emerge to develop and implement the systemic and innovative solutions, in a timely way and at scale, that the world needs right now!

Imagine if leaders truly and deeply committed to cultivating their leadership consciousness, and make the time and space to eliminate their blind spots, how peaceful and harmonious the world could become!

If leaders could learn how to think and act differently, focus on adding value to the quality of people’s lives in ways they appreciate and cherish, and contribute to the common good, to serve all of humanity, how people, profit, and the planet could flourish.

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, and can be customized as a bespoke corporate learning and coaching program for leadership and team development and change and culture transformation initiatives.

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Agile Innovation Management (Part Two)

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How Agility Enables Innovation

Agile Innovation Management (Part Two)

GUEST POST from Diana Porumboiu

In the previous article on agile innovation we covered the main concepts around agile, business agility and its role as a driver for innovation. Now, let’s see how to actually leverage agility to innovate and how other companies have succeeded in this area.

Agility is an enabler for innovation. The pace of innovation, while not easy to achieve, has become the ultimate competitive advantage as we all need to adapt quickly to evolving environments, the digital age and increasing pressing needs.

The reality is that agile thinking is changing the world whether we decide to adopt it or not.

Those who succeed at this are ahead of the game. McKinsey research suggests that agility is a critical factor for organizational success.

The Organizational Health Index (OHI) assesses various aspects of organizational health, including agility, and examines how these factors correlate with business success. An increased organizational health is linked with more resilient, adaptive, and high-performing organizations that can better navigate complexity, drive innovation, and achieve strategic goals.

What’s more, agile organizations are best at balancing both speed and stability, and these are also the companies that rank highest in the organizational health index.

McKinsey Ability — Source: McKinsey&Company

The research goes even deeper and identifies a series of management practices that differentiate the most from the least agile companies.

As you can see, there’s more to business agility than meets the eye and a few sprints just won’t cut it.

However, if we look at the agile principles, there are several ways in which they can enable innovation:

They bring an empirical process control approach, which emphasizes transparency, evaluation, and adaptation.
They enable experimentation and learning as teams are encouraged to test hypotheses, validate assumptions, and learn from both successes and failures. This experimental mindset is essential for innovation.
They are about adaptive planning processes that allow teams to adjust their priorities, strategies, and product roadmaps based on emerging opportunities and threats.
They emphasize customer-centricity. By focusing on delivering value to customers through continuous delivery and customer feedback loops, you make sure your innovations meet real market demands and solve genuine problems.
They encourage cross-functional collaboration and self-organizing teams, bringing together diverse perspectives and expertise.

To get a better idea of how this looks in practice, we’ll take the example of ING Bank.

ING Bank

ING is a global financial institution originally from the Netherlands and a good example to illustrate how agile can be introduced organization-wide, the right way.

ING wanted to become agile for the right reasons. The shift to agility wasn’t about working faster or growing more—it was about being flexible and adaptable. Even though things were going well financially in 2015, ING noticed that customer behavior was changing due to trends in other industries, not just in banking. So, they knew they had to change too.

ING Bank embraced several key principles of agility, drawing inspiration from the practices of tech companies to align with their objectives and operations:

Cross-Functional Teams: ING structured its IT and commercial departments into agile squads, mirroring the approach seen at Tesla. This integration fosters cross-functionality and collaboration, with teams physically situated together within the same premises.

Agile at ING Bank - McKinsey — source: McKinsey & Company

Rapid Decision-Making and Experimentation: Without bottlenecks created by middle management, ING facilitates swift decision-making and continuous experimentation. This agile approach enables the organization to constantly refine and test customer offerings without bureaucratic delays.
Enhanced Collaboration and Transparency: Recognizing the importance of collaboration, ING implemented structural changes to break down silos. Clear delineation of roles, responsibilities, and governance structures fosters improved cooperation across teams and departments.
Accelerated Delivery: Instead of their usual annual product launches, ING adopted a more agile release cycle, rolling out software updates every two weeks. This agile delivery model allows the organization to respond promptly to market demands and customer feedback, ensuring rapid innovation and adaptation.

The first step in achieving this agile transformation was to develop a clear strategy and vision. They started small and rolled out the new structures and way of working across the entire headquarters in eight to nine months.

Last, but not least, they invested significant energy and leadership time in fostering a culture of ownership, empowerment, and customer-centricity, which are foundational elements of an agile culture.

As Bart Schlatmann from ING points out, agility is a means to an end, not the end goal itself; it is the pathway to achieving innovation.

Drawing from these examples and research from other organizations, we can summarize the five tenets of agile organizations:

Purpose-Driven Mindset: Shift from a focus on capturing value to co-creating value with stakeholders, embodying a shared vision across the organization.
Empowered Network of Teams: Transition from top-down direction to self-organizing teams with clear responsibility and authority, fostering engagement, innovative thinking, and collaboration.
Rapid Learning Cycles: Embrace uncertainty and continuous improvement through iterative decision-making and experimentation, prioritizing quick adaptation over rigid planning.
Innovation Culture: Cultivate ownership, empowerment, and customer-centricity, enabling employees to drive organizational success.
Integrated Technology Enablement: View technology as integral to unlocking value and enabling responsiveness to business and stakeholder needs, leveraging advanced tools for seamless integration and rapid innovation.

Actionable Steps to Drive Innovation through Business Agility

We can’t wrap things up without going through some of the key steps that should not be missed in an agile transformation journey.

Constancy of purpose

You might have heard of Edwards Deming and even used his PDCA cycle in your continuous improvement work. He is well known for his legacy in the field of quality management, particularly for his contributions to the improvement of production processes in Japan after World War II. To some degree, his work is also seen as one of the main inspirations for the agile movement.

Among his work, we can also find the “14 Points for Management,” where Deming outlines how essential it is to have a clear and unwavering commitment to a long-term vision or mission.

He called it constancy of purpose. You can also call it your North Star. Regardless of the words you choose, it’s important to set your goals and align all activities, processes, and resources towards achieving them. How to do this?

Communicate the Purpose: Regularly communicate the organization’s purpose, mission and goals as well as how agility contributes to achieving them.
Define Goals: Clearly define objectives and goals that align with the organization’s purpose. These goals should support the overall mission and vision.
Empower Teams: Trust by default and enable teams to make decisions, take ownership of their ideas and work. Provide them with the autonomy and resources they need to innovate and deliver value.
Measure Progress: Measure progress towards your goals, but also establish metrics that can measure your ability to be responsive. Regularly review and assess how agile practices are contributing to the overall mission.
Adapt and Iterate: Embrace continuous improvement processes that align with your internal structures and needs. Encourage teams to experiment, learn, and iterate on their approaches.

Agile leadership

Adopt the ABC of leadership which drives innovation and makes the shift from “vertical ideology of control” to “horizontal ideology of enablement”.

Linda Hill, renowned professor at Harvard Business School, specializing in leadership and innovation makes a great point about the roles a leader should take if they want to drive innovation and agility.

Over time leadership evolved from a purely strategic role, to providing a vision that guides people in the same direction. More recently, research showed that a visionary leader is not enough. You need leaders that can also shape the culture and capabilities needed for people to co-create the future. This requires a different approach to leadership.

Research has identified that in order to lead an organization that innovates at scale with speed, you need leaders that fill in three different functions:

the Architect – to build the culture and capabilities necessary to collaborate, experiment and work.
the Bridger – to create the bridge between the outside and the inside of the organization by bringing together skills and tools to innovate at speed.
the Catalyst – to accelerate co-creation through the entire ecosystem.

Here is Hill’s short summary on the ABC of leadership:

Another top voice is Steve Denning who has been an advocate of agile and agile management for years. He makes some great points about the agile mindset which requires a new way of running organizations.

For an organization to be truly agile, the so called industrial-era management needs to be replaced with digital-age management which is strongly driven by an agile mindset.

The traditional management style makes it hard for agile to work because the old command-and-control approach goes against the agile principles. The top-down approach is riddled with bureaucracy which obstructs visibility to the customer and the realities at the lower levels of the organization.

Some of the most successful and innovative organizations, like Apple, Google, and Microsoft understood this early on and shifted their focus to delivering customer value first, one of the agile principles. This required a change in mindset but also in the corporate culture, which is no easy undertaking.

To make this transition, Denning talks about five major shifts that companies need to make:

From profit-focused to customer-focused goals.
From direct reporting to self-organizing teams where management’s role is not to check on employees, but to enable them to do their work by removing obstacles.
From bureaucracy, rules, and reports to work coordinated by Agile methods and customer feedback.
Prioritize transparency and continuous improvement over predictability.
Encourage horizontal communication rather than top-down directives.

While they are straightforward and make sense for most of us, these changes are maybe the hardest to make, especially for established organizations that are not used to challenging the status quo.

These big undertakings are what make agile possible at scale. But even if you’re not there yet, you can still apply the agile principles at a smaller scale to enable innovation.

Minimize complexity

Complexity is the enemy of agility. People in companies both large and small try to come up with the perfect solution, that often doesn’t exist in the first place, and only end up having solved the wrong problem.

On the other hand, if you were to simply move ahead quickly with something that creates real value and solves at least some of the problems, you’ll see which of your assumptions and concerns are real, and which aren’t. You’ll also see which problems you can work around, and which ones you simply must address directly.

This obviously eliminates a lot of uncertainty and reduces the complexity associated with solving the problem, which again helps you focus your innovation efforts on what matters – creating real value.

The bigger and more complex the problem, the more important it is to take an agile and modular approach.

Thus, the bigger and more complex the problem, the more important it is to take this agile and modular approach that focuses on the speed of making tangible progress.

Conclusion

As we explained in our complete guide to innovation management, there is no single perfect way of managing innovation. Different companies have different approaches for innovation management.

However, the common thread of successful organizations are structures and processes that mitigate the somehow chaotic nature of innovation management.

In these two articles we explored agile as a method to enable innovation and improve its management for sustained success. We don’t believe in quick fixes or miracle solutions. That’s why we made the case of agile as a mindset that should permeate every aspect of the organization.

Article originally published in full format on viima.com/blog

Image credit: Unsplash, McKinsey

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