Tag Archives: mindsets

Shifting Mindsets to Compete in an Ecosystem-Driven World

Shifting Mindsets to Compete in an Ecosystem-Driven World

GUEST POST from Greg Satell

In 1980 Harvard professor Michael Porter published Competitive Strategy, which recommended that firms create advantage by driving efficiencies throughout the value chain and mastering competitive forces by maximizing bargaining power. These concepts drove corporate thinking for decades.

Yet as AnnaLee Saxenian explained in Regional Advantage, around the same time that Porter’s ideas were ascending among CEOs in the establishment industries on the east coast, a very different way of doing business was gaining steam in Silicon Valley. The firms there saw themselves not as isolated fiefdoms, but as part of a larger ecosystem.

Competitive advantage can no longer be reduced to the sum of efficiencies in a value chain, but is embedded in webs of connections. To compete in an ecosystem-driven world, Leaders need to do more than adapt how we deploy assets, we need to look at things differently. It is no longer enough to merely plan and direct action, we need to inspire and empower belief.

Shifting From “Compel And Control” To “Access And Empower”

In the 1920s Henry Ford built the almost completely vertically integrated River Rouge plant. Because the company had the ability to produce just about every facet of its product itself (the plant even had its own steel mill), it had tremendous control over the value chain, making it virtually immune to the bargaining power of suppliers.

However, as the industry matured, other companies began to specialize in particular components. Ford, unable to compete in so many directions, became integrated into the larger ecosystem. In fact, during the financial crisis in 2008, the company’s CEO, Alan Mulally, said this in testimony to Congress:

“In particular, the collapse of one or both of our domestic competitors would threaten Ford because we have 80 percent overlap in supplier networks and nearly 25 percent of Ford’s top dealers also own GM and Chrysler franchises”

In a value-chain-driven world, Ford would have welcomed its competitors’ demise. In an ecosystem-driven-world, however, their collapse would damage nodes that the company itself depended on. Clearly, the principles of competitive advantage have changed. Today your fate depends less on the assets and capabilities you control, than what you can access.

That, in essence, is why we need an ecosystem strategy. Control has become a dangerous illusion. It’s what led to the demise of the East Coast technology companies such as DEC and Data General that AnnaLee Saxenian wrote in her book. By seeking full control of their value chain, they cut off connection to important parts of the ecosystem. When the market and technology shifted, they were left on their own island.

Building Silos Of Excellence

It’s become so common for pundits to complain about organizational silos that few even think about what it means anymore. Why do silos form in the first place? Why do they persist? If silos are so egregious, why are they so common? And once we get rid of them, what takes their place? To “break down silos” and not ask these questions is just lazy thinking.

Silos aren’t necessarily a bad thing. Essentially, they are centers of excellence. It’s true that people who work closely together naturally form a working culture and tacit domain knowledge that can be hard for others to penetrate, but breaking those units apart can undermine the important work they do.

Another problem is that when you reorganize to break down one kind of silo, you inevitably create others. If, for example, your company is organized around functional groups, then you will get poor collaboration around products. But when you reorganize to focus on product groups, you get the same problem within functions.

The truth is that you don’t want to break down silos, you want to connect them. What we need to learn is how to network our organizations to help silos become interoperable with other silos that have complementary resources and areas of areas of expertise. That, essentially, is what an ecosystem is, a network of interoperable networks.

Paradoxically, we need silos of excellence to provide value to the ecosystem in order to get value out. The best way to form a connection is to have something attractive that others want to connect to.

Connecting Silos To Leverage Platforms

It’s become clear that no organization can survive focusing exclusively on capabilities it owns and controls. Today, we need to leverage platforms to access ecosystems of technology, talent and information from a variety of stakeholders, including customers, partners, vendors and open platforms. Yet, that is often easier said than done.

The truth is that while platforms offer enormous possibilities to scale, they also have deep vulnerabilities. Yes, platforms can help connect to capabilities and assets, but they are no substitute for a sound business model that creates, delivers and captures value. That was one problem with Uber, it created connection, but little else.

Organizations that successfully leverage platforms do so with silos of capability at the core. Amazon has leveraged decades of investment in building an unparalleled logistic capability to create a dominant commerce platform. In a similar way, IBM has leveraged its expertise in quantum computing to create a network of like-minded organizations. Corporate Venture Capital (VC) funds leverage industry expertise to access entrepreneurial innovation.

There are a number of ways even small firms can leverage platforms to access ecosystems. The Manufacturing USA Institutes cater to small and medium sized firms. Local universities are often overlooked resources to access deep expertise. Harley Owners Groups are a great example of how firms can leverage their own customer networks.

Strategy Is No Longer A Game Of Chess

Traditionally, strategy has been seen as a game of chess. Wise leaders survey the board of play, plan their moves carefully and execute flawlessly. That’s always been a fantasy, but it was close enough to reality to be helpful. Organizations could build up sustainable competitive advantage by painstakingly building up bargaining power within the value chain.

Yet as Rita McGrath has pointed out, it’s no longer as important to “learn to plan” as it is to “plan to learn.” Today, a better metaphor for strategy is an online role-playing game, where you bring you certain capabilities and assets and connect with others to go on quests and discover new things along the way.

Unlike chess, where everyone knows that their objective is to capture the opponent’s king, in today’s ecosystem-driven world the basis of competition is in continuous flux, so we cannot be absolutely sure of the objective when we start out, or even if our opponent is really an opponent and not a potential ally.

That’s why strategy today requires a more Bayesian approach in which we don’t expect to get things right as much as we hope to become less wrong over time. As I wrote in Harvard Business Review some years ago, “competitive advantage” is no longer the sum of all efficiencies, but the sum of all connections. Strategy, therefore, must be focused on deepening and widening networks of information, talent, partners, and consumers.”

— Article courtesy of the Digital Tonto blog
— Image credits: Pixabay

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The Changemaker Mindset

The Changemaker Mindset

GUEST POST from Greg Satell

Every time I speak to a group of executives, they complain that their organizations desperately need to change, but that the bosses are hostile to it. And every time I speak to a group of leaders, they say that change is their highest priority, but can’t seem to align the rank-and-file behind transformational initiatives.

The truth is that everybody loves their own brand of change, it’s other people’s ideas and initiatives that they don’t like. We all have things that we want to be different. But the status quo has inertia on its side and never yields its power gracefully. To want change is one thing, but to change ourselves, well… that’s another story.

What I’ve found in both my research and my practice is that people who bring about transformational, even historic, change start out no differently than anyone else. In fact, early versions of them are often decidedly unimpressive. The difference between them and everyone else is that somewhere along the way they learn to adopt a changemaker mindset.

A Problem They Couldn’t Look Away From

As a young man, Mohandis Gandhi wasn’t the type of person anyone would notice. Impulsive and undisciplined, he was also so shy as a young lawyer that he could hardly bring himself to speak in open court. With his law career failing, he accepted an offer to represent the cousin of a wealthy muslim merchant in South Africa.

Upon his arrival, Gandhi was subjected to humiliation on a train and it changed him. His sense of dignity offended, he decided to fight back. He found his voice, built the almost superhuman discipline he became famous for and successfully campaigned for the rights of Indians in South Africa. He returned to India 21 years later as the “Mahatma,” or “holy man.”

The truth is that revolutions don’t begin with a slogan, they begin with a cause. Martin Luther King Jr., as eloquent as he was, didn’t start with words. It was his personal experiences with racism that helped him find his words. It was his devotion to the cause that gave those words meaning, not the other way around.

Steve Jobs didn’t look for ideas, he looked for products that sucked. Computers sucked. Music players sucked. Mobile phones sucked. His passion was to make them “insanely great.” Every breakthrough product or invention, a laser printer, a quantum computer or even a life-saving cure like cancer immunotherapy, always starts out with a problem someone couldn’t look away from.

Identifying A Keystone Change

Every change effort, if it is to be successful, needs to identify a Keystone Change to bridge the gap between the initial grievance about the world as it is and the vision for how the world could be. You can’t get there in a single step. This is a lesson that even a legendary changemaker like Gandhi had to learn the hard way.

In 1919, five years after his return to India, Gandhi called for a nationwide series of strikes and boycotts in response to the Rowlatt Acts, which restricted Indian rights. These protests were successful at first, but soon spun wildly out of control and eventually led to the massacre at Amritsar, in which British soldiers left hundreds dead and more than a thousand wounded.

A decade later, when the Indian National Congress asked Gandhi to design a campaign of civil disobedience in support of independence, he proceeded more cautiously. Rather than rashly calling for national action, he set out with 70 or 80 of his closest disciples to protest unjust salt laws. Their nonviolent discipline inspired the nation and the world.

Today, the Salt March is known as Gandhi’s greatest triumph. It was the first time that the British was forced to negotiate with the Indians and, because it demonstrated that the Raj could be defied, helped lead to Indian independence in 1947. Yet without that earlier failure, which Gandhi would call his Himalayan miscalculation, it would not have been possible.

Gandhi is, of course, a legendary historical figure. But other, more pedestrian, changemakers learned the same thing. A lean manufacturing transformation at Wyeth Pharmaceutical started with a single change with a single team, but quickly spread to 17,000 employees. A healthcare revolution began with just six quality practices. When the CIO of Experian set out to move his organization to the cloud, he began with internal API’s and just a few teams.

To make change real, you need to get out of the business of selling an idea and into the business of selling a success. You do that with a Keystone Change.

Empowering A Movement

We revere legendary change leaders like Gandhi, Martin Luther King Jr, Nelson Mandela and others not just for their ideas, but because of how they empowered others to take ownership of their cause. Those who followed them did so not in their names, but for themselves. The struggle was collective, not one of subservience.

That’s what makes building a movement different from traditional change models they often teach in business schools. A snazzy internal communication program and a training regimen may help an organization adopt new software or gear up to support a new product line, but it won’t change how people fundamentally think or act.

Movement leaders focus on empowerment, not persuasion. Gandhi didn’t need to convince his countrymen about the daily humiliations and injustices suffered under the British Raj. King did not have to explain to black Americans that racism was wrong. Mandela did not have to persuade black South Africans about the evils of Apartheid. They empowered them to make a difference. That’s what makes movements so compelling and effective.

Changemakers of all kinds can do the same. At Experian, the CIO set up an “API Center of Excellence” to help product managers who wanted to build out cloud-based features. To power the quality movement in healthcare, activists created “change kits” to guide hospital staff who were on board and wanted to bring their colleagues along. Change can only succeed if you equip those who believe in it to drive it forward.

Building Empathy, Even For Your Enemies

People who believe in change want to believe that if everyone understood it, they’d want it to happen. That’s why “change management” gurus focus on communication and persuasion. They think that if you explain your idea for change in just the right way, others will see the light. For many change consultants, transformation is primarily a messaging problem.

Yet anyone who has ever been married or had kids knows how hard it can be to convince even a single person of something. Persuading hundreds, if not thousands—or even an entire society—that they should drop what they’re thinking and doing to adopt your idea and help drive it forward is a tall order. The simple truth is that no one is really that charming.

Make no mistake. If your idea is important, if it has real potential to affect how people think and how they act, there will always be those who will hate it and they will work to undermine it in ways that are dishonest, underhanded and deceptive. That’s just a simple fact of life that every potential changemaker needs to learn to internalize and accept.

Yet adopting a changemaker mindset means that you understand that change is always built on common ground and that you need to build empathy, even for your most ardent adversaries, because that is how you identify shared values and move things forward. It is by listening to your opposition and internalizing its logic that you can learn how to discredit it, or even better, inspire those hostile to change to discredit themselves.

That is the changemaker mindset: To understand that change is hard, even unlikely, but to remain clear-eyed, hard-nosed and opportunity focused. To know that through shared values and shared purpose, radical, transformational change is not only possible, but ultimately inevitable.

— Article courtesy of the Digital Tonto blog
— Image credits: Unsplash

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What is Your Mindset? Fixed, Growth or Hybrid?

What is Your Mindset? Fixed, Growth or Hybrid?

GUEST POST from Stefan Lindegaard

What does it mean to have a mindset? How does it shape your actions, and those of the people you interact with? Is it steadfast, or does it evolve? Could it perhaps be a fusion of elements? It’s crucial to understand mindsets as they influence not only our behaviors but also the behaviors of those we engage with, allowing us to better navigate the world.

Research defines “mindset” as a mental frame or lens that selectively organizes and interprets information, orienting an individual’s understanding of experiences and guiding their responses and actions.

This definition, adapted from Carol Dweck by Salovey and Achor, illuminates that our mindset, composed of our thoughts and beliefs, influences our perception of ourselves, our environment, and the broader world. Such understanding is vital in team dynamics, leadership, and organizational contexts.

Dweck identified two primary mindsets:

1. A fixed mindset, in which intelligence is viewed as static, leading to the desire to appear intelligent and influencing specific behaviors.

2. A growth mindset, where intelligence is seen as something that can be developed, sparking a desire to learn and driving diverse behaviors.

The growth mindset, characterized by the belief that abilities can be honed with consistent effort, is shaped by how we perceive and tackle five critical areas:

  1. Viewing effort as a path to mastery
  2. Demonstrating persistence in the face of obstacles
  3. Seeing others’ success as a source of inspiration and learning
  4. Embracing challenges
  5. Welcoming criticism as an opportunity to learn and grow

However, we need to acknowledge that our mindsets aren’t strictly “fixed” or “growth” in nature. They’re typically a hybrid of both, influenced by the context and phase of our lives. It’s is also situational. Our response to situations can shift, revealing the dominance of one mindset over the other at different times. Recognizing this within ourselves and avoiding prematurely labeling others is vital.

A Few Cases, Examples

To give a practical example, let’s look at the world of education. Imagine a student who struggles with math. With a fixed mindset, they might think, “I’m just not good at math,” and subsequently put less effort into learning. However, if they adopt a growth mindset, they would perceive math as a challenge they can overcome with practice and effort. Using different strategies and seeking help when necessary, the student’s math skills can improve, highlighting the practical application of a growth mindset.

In the business world, Microsoft provides an excellent case study. Under CEO Satya Nadella’s leadership, Microsoft shifted from a fixed to a growth mindset. Nadella introduced Dweck’s growth mindset concept to the company culture, fostering innovation and collaboration. The shift, encapsulated in the motto “Learn it all” vs. “Know it all,” encouraged employees to remain open-minded, learn from their mistakes, and continually improve. This change in mindset led to increased employee engagement, innovation, and contributed to Microsoft’s recent growth.

In sports, athletes often exemplify the growth mindset. Consider basketball legend Michael Jordan. He was cut from his high school varsity team because he was deemed “not good enough.” Rather than accepting this as an unchangeable state, he viewed it as a challenge and redoubled his efforts to improve. His eventual rise to becoming one of the greatest basketball players of all time showcases how a growth mindset can lead to superior performance in the face of setbacks and criticism.

As I often say, “The essence of the growth mindset in an organizational context is to instill a mindset focused on continuous improvement rather than the need to prove that one is the best.”

Implementing the growth mindset in team dynamics is part of my work. However, it doesn’t stand alone. It must be complemented by other factors like fostering a learning culture, ensuring psychological safety, and expanding the comfort zone. All these components are critical to effective team, leadership, and organizational development.

If you have questions or interesting perspectives on these topics, I would be more than happy to discuss them. Get in touch!

Image Credit: Pixabay, Stefan Lindegaard

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

Top 10 Human-Centered Change & Innovation Articles of November 2023Drum roll please…

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

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

  1. A Quantum Computing Primer — by Greg Satell
  2. Disagreements Can Be a Good Thing — by Mike Shipulski
  3. What’s Your Mindset — by Dennis Stauffer
  4. We Are Killing Innovation in America — by Greg Satell
  5. Two Kinds of Possible — by Dennis Stauffer
  6. Eddie Van Halen, Simultaneous Innovation and the AI Regulation Conundrum — by Pete Foley
  7. Five Secrets to Being a Great Team Player — by David Burkus
  8. Be Clear on What You Want — by Mike Shipulski
  9. Overcoming Your Assumptions — by Dennis Stauffer
  10. Four Things All Leaders Must Know About Digital Transformation — by Greg Satell

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

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

Have something to contribute?

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

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

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What’s Your Mindset?

What's Your Mindset?

GUEST POST from Dennis Stauffer

Your mindset has a powerful influence on how you think and behave—including how innovative you are. You have the power to shift your mindset to become more innovative. However, to do that effectively you need to know what your mindset is now, and it’s mostly subconscious.

I’m going to show you how to measure your mindset, by surfacing some of those hidden assumptions. To do this, you’ll need some way to jot down four numbers and make a simple calculation.

You may have heard about the work of Stanford University Professor Carol Dweck and her distinction between a growth and a fixed mindset, which is what I’m having you measure. It’s what Dweck calls your Theory of Intelligence.

For each of four statements, I’d like you to write down a number between 1 and 6. One indicating that you strongly disagree with that statement, and six that you strongly agree, with increments in-between.

  1. Strongly Disagree
  2. Disagree
  3. Slightly Disagree
  4. Slightly Agree
  5. Agree
  6. Strongly Agree

Ready?

  1. __ The first statement is: Our intelligence is something about each of us that we can’t change very much. Give that number between 1 and 6, depending on how strongly you agree or disagree with that statement.
  2. __ The next statement is: We can learn new things but we can’t really change how intelligent we are. Give that a number from one to six.
  3. __ The next statement is: No matter how much intelligence a person has, they can always change it quite a bit. Give that a number 1-6
  4. __ And the final statement is: I can always change how intelligent I am. Give that a number.

To score your results, add your first and second answers together to give yourself an “A” value, and add your third and fourth answers together to give yourself a “B” value.

If your A value is the larger of the two, that indicates that you favor what Dweck calls a fixed mindset—that you believe intelligence is largely fixed and unchanging.

If your B value is larger, you favor a growth mindset—defining intelligence as something you can change and grow.

The larger the difference between those two numbers, the stronger your preference.

In her research, Dweck has found this simple distinction has all sorts of ripple effects especially on how students perform. Students with a fixed mindset, may be quite smart, but they’re afraid to challenge themselves and try new things because if that reveals any intellectual deficits, they don’t believe they can do anything about it. Students with a growth mindset believe they can get smarter by working at it, giving them a strong motivation to work hard, learn and overcome setbacks. They tend to become the high performers.

You may never have given much thought to your personal theory of intelligence, but you almost certainly have one and it’s one of many hidden assumptions that make up your mindset. Dweck has found that those hidden assumptions impact your beliefs, behavior, motivation, competitiveness and ethics. Other researchers have found that mindset even impacts how your body functions.

Your mindset also impacts how innovative you are, and that can be measured too. Instead of the growth vs. fixed distinction, measuring your innovativeness involves a range of other tradeoffs. Things that impact how imaginative you are, how willing you are to take risks, how you make observations and how open you are to new insights and ideas.

A growth mindset makes you more willing to accept and push through failure, being ready to learn and discover. An Innovator Mindset is about how you go about doing that. How you can systematically find solutions and make improvements—including improving yourself. Being able to adapt and learn and make discoveries has many benefits in all aspects of your personal and professional life.

If you’d like to measure your innovativeness, across twelve dimensions, and receive detailed personalized feedback on how to improve it, go to Innovator Mindset where you’ll find links to take the Innovator Mindset assessment, or enroll in Mindset Trek elearning—which includes the assessment—to get in depth mindset training.

Here is a video version of this post:

Image Credit: Pixabay

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Changing Mindsets: How to Take a Creative Approach to Business Challenges

Changing Mindsets: How to Take a Creative Approach to Business Challenges

GUEST POST from Art Inteligencia

Businesses of all sizes are constantly presented with a range of unique challenges that can disrupt operations, stretch resources, and inhibit growth. To successfully navigate these challenges and put a business on an upward trajectory, leaders need to employ creative problem-solving tactics and be willing to change their mindset. By taking a new approach to business challenges, leaders can find new solutions and put businesses on a path to success.

Case Study 1 – Zomato

One of the best ways to embrace a creative approach to problem-solving is by exploring examples from other businesses that have encountered similar challenges. For instance, Zomato, a New Delhi based restaurant search and delivery service, encountered a significant challenge when it was unable to offer delivery services to certain areas because of a lack of resources. Despite this obstacle, the company was able to think outside the box and find a solution from an unlikely source – a network of independent delivery people. By leveraging this new resource, Zomato was able to deliver food to locations it previously had no access to.

Case Study 2 – Shinola

Another example of a company that successfully adopted a creative approach to problem-solving is Shinola, the upscale Detroit-based watch manufacturer. The brand faced a significant challenge when it needed to scale up production to meet the high demand for its products. Instead of outsourcing production, the company chose to create a highly skilled and trained workforce from the local population. Not only did this strategy allow Shinola to increase its production capacity, but it also helped the local Detroit economy and provided long-term employment opportunities for residents.

Conclusion

These examples demonstrate the importance of adopting creative problem-solving tactics and the value of taking a new approach to business challenges. By looking beyond traditional solutions and exploring different sources, leaders can find the answers they need to take their business to the next level.

Too often, businesses find themselves stuck in traditional and outdated approaches to problem-solving. To successfully navigate the ever-changing landscape of business, leaders need to be open to examining new solutions and embracing the concept of change. Innovation and creativity are key ingredients for success. By speaking to a variety of experts, looking at successful examples from other businesses, and embracing creative problem-solving tactics, leaders can take their business to new heights.

SPECIAL BONUS: Braden Kelley’s Problem Finding Canvas can be a super useful starting point for doing design thinking or human-centered design.

“The Problem Finding Canvas should help you investigate a handful of areas to explore, choose the one most important to you, extract all of the potential challenges and opportunities and choose one to prioritize.”

Image credit: Pexels

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