Tag Archives: Networking

How Networks Power Transformation

Why Blockbuster Really Failed

Today, Blockbuster is a cautionary tale, but for all the wrong reasons. When the spinoff was announced, Antioco moved quickly to build an online rental business and remove the late fees that so many found annoying. Later, in 2006, he created the Total Access program that allowed customers rent DVDs online and return them in stores.

The convenience of the Total Access program was something that Netflix couldn’t match and almost immediately Blockbuster began to surpass Netflix in adding new subscribers. Yet within a few months, a compensation dispute arose between Antioco and the corporate raider Carl Icahn, who had gotten control of the company. Antioco left, the new CEO reversed the strategy and Blockbuster declared bankruptcy in 2010.

The tensions had actually been building for some time. Antioco’s shift to the online business made franchisees, many of whom had their life’s savings tied up in Blockbuster stores, uneasy. The changes were also costly, which depressed earnings and made investors and analysts skeptical. The stock price cratered.

It was the low stock price that led Icahn to buy up stock in Blockbuster, a proxy fight that allowed him to take control of the company’s board, the compensation dispute, Antioco’s departure and the reversal of the strategy. What really killed Blockbuster wasn’t external competition, but internal opposition.

Addressing The Internal Struggle

While Antioco framed the challenge Blockbuster faced largely in terms of strategy and tactics, McChrystal saw his task as an internal struggle. His forces were among the best in the world and were winning every battle. Yet somehow, they were losing the war and losing it badly.

As McChrystal would later write, “the world had outpaced us. In the time it took us to move a plan from creation to approval, the battlefield for which the plan had been devised would have changed. By the time it had been implemented, the plan—however ingenious in its initial design—was often irrelevant.”

So instead of trying to come up with better plans, McChrystal sought to change how his organization functioned. The problem, as he saw it, was one of interoperability. His forces needed not only to work with each other, but also partner agencies and other stakeholders, in order to succeed.

“I needed to shift my focus from moving pieces on the board to shaping the ecosystem,” McChrystal would remember. The moves paid off. The tide of the war soon shifted and the forces under his command would achieve their major objectives.

Rewiring Networks

The main difference between Antioco and McChrystal had less to do with their actions than it did with their mindsets. Where Antioco saw his task in terms of planning and execution, McChrystal saw his in terms of connection. “We began to make progress when we started looking at these relationships as just that: relationships— parts of a network, not cogs in a machine or outputs and inputs,” he would later write.

Antioco would take a very different approach. He set up the Blockbuster Online team in a warehouse down the street its Dallas headquarters. That allowed him to pursue the online strategy with little disruption to operations in the core business, but it also allowed suspicion and fear to fester and grow.

McChrystal, on the other hand, moved to forge links anywhere he could. He started embedding intelligence analysts into commando teams and vice versa. Liaison officer positions, traditionally given to marginal performers or those nearing retirement, were now earmarked for the very best operators.

Moves like these slowed down the individual teams — commandos in business suits placed at embassies don’t kill many terrorists — but that wasn’t the point, building networks of trust and interoperability was. Over the next few years, the effectiveness of his organization improved markedly and overall operating efficiency improved by a factor of seventeen.

Rethinking Leadership For A Networked Age

To a large degree, the most important difference between Antioco and McChrystal was how they saw their role as leaders. Antioco was truly a brilliant strategist and had built an enormously successful career devising effective plans and driving efficient execution. He had encountered opposition before, but had always been able to prevail by showing results.

McChrystal came to see things differently. “I began to reconsider the nature of my role as a leader,” he would later write. “The wait for my approval was not resulting in any better decisions, and our priority should be reaching the best possible decision that could be made in a time frame that allowed it to be relevant.

In other words, where Antioco saw a vertical hierarchy for carrying out tasks efficiently, McChrystal saw a horizontal network of connections which needed to be cultivated. Where Antioco built a strong senior management team to drive his strategy, McChrystal forged shared values throughout his organization so that units could act independently.

The truth is that we need to reimagine leadership for a networked age to focus less on driving strategy and tactics and more on widening and deepening connections in networks. Or, as McChrystal put it, “The role of the senior leader was no longer that of a controlling puppet master, but that of an empathetic crafter of culture.

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

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Innovation and Transformation Advisory and Connection Opportunity

Building a Global Sensing Network – Revisited

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When I first wrote about Building a Global Sensing Network I wrote in the specific context of the war for innovation and the need to make sure you’re fighting it outside your organization — not inside.

We looked at how most organizations hire the most clever, educated, experienced and motivated people you could afford and then direct them to come up with the best customer solutions possible, organize and execute their production and marketing predictably and efficiently, and do their best to outmaneuver the competition.

In short, most organizations pursue success by building a fortress from which the organization can defend its intellectual property and its market position utilizing the human resources it can assemble within the castle walls. At the same time most organizations focus on achieving organizational success by achieving the greatest overlap possible between the skills, abilities and talents of each job applicant and the job description for each role.

But most organizations (referred to as Typical Organizations in the graphic below) fail to harness ALL of the skills, abilities and talents of the individuals they have in their organization to achieve greater performance as a collective. In my mind this is painful, wasted human capital – painful for the organization (lost potential revenue and profitability) and painful for the individual (boredom, stress, and disappointment).

But, a handful of more progressive, innovative organizations are trying to do better to harness the passions AND the skills, abilities, and talents of their individuals to better achieve the collective’s ability to generate revenue and profits (or other appropriate benefits) by engaging their employees in the innovation efforts of the organization, and allowing their employees to take some of their skills, abilities and talents and apply them to help fulfill other job descriptions. This looks something more like this:

But in the most progressive organizations, they not only provide a way to better harness a more complete set of their employees’ skills, abilities and talents to more than one job description, but they also find a way to harness more of the skills, abilities, and talents that employees are currently realizing outside the organization in their hobbies, volunteer work, or other places.

And the successful organizations of the future will not stop there. They will also harness the connections their employees have outside the organization to increase the innovation capacity of the organization, and better engage not only partners in helping to fulfill the needs of different job descriptions, but they will also even engage their customers in achieving the work of the organization.

Where customer or partner skills, abilities and talents intersect with the job requirements, work can get done, and where customer or partner skills, abilities or talents intersect with employee skills, abilities or talents intersect, communities and connections have the chance to form and be nurtured. This is what organizations of the future will look like:

In this scenario, where innovative organizations begin to move beyond better harnessing the internal innovation capacity of their employees, to also harnessing the external capacity to work (and to innovate) of individuals outside of the organization (and to expand the scope of the collective), and to attract partners and customers to participate, organizations that allow and even encourage employees to develop a personal brand and greater external connections, will claim an outsized share of the potential benefits to both the mission of the organization and to its innovation efforts.

If your employees lack the external exposure, the external connections, and the external personal brand equity and awareness, how much harder will it be for your organization to:

Attract the best partners to your innovation efforts
Recruit the best customers to co-create with you
Build a strong pipeline of potential future internal talent

Through this lens you can see that in the future, successful innovation and change will be determined not just by how strong the brand of your organization is (or the collective), but also will be shaped by the strength of the personal brands of the collective’s component individuals.

As the commercial battlefield continues to change, future business success will be built upon more fluid boundaries and the ability to leverage skills, abilities and talents of people and other organizations outside the company and also the ability to:

Utilize expert communities.

Identify and gather technology trend information, customer insights and local social mutations from around the globe.

Mobilize the organization in organic ways to utilize resources and information often beyond its control.

Still organize and execute production and marketing predictably and efficiently in the middle of all this complexity.

Market leaders in our evolving reality will be increasingly determined not by an organization’s ability to outmaneuver the competition in a known market, but by their ability to identify and solve for the key unknowns in markets that will continue to become more global and less defined. Future market leaders will be those organizations that build superior global sensing networks and do a better job at making sense of the inputs from these networks to select the optimal actionable insights to drive innovation and change.

By this point, hopefully you are asking yourself three questions:

1. How do I create more fluid boundaries in my organization?

2. What does a global sensing network look like?

3. How do I build one?

One View of a Global Sensing Network

The purpose of a global sensing network is to allow an organization to collect and connect the partial insights and ideas that will form the basis of the organization’s next generation of customer solutions. This involves collecting and connecting:

Click to access this framework as a scalable 11″x17″ PDF download

1. Customer Insights

Ethnography
Private Communities
Focus Groups
Surveys
Lead User Observation

2. Core Technology Trends

3. Adjacent Technology Trends

4. Distant technology trends

5. Local social mutations

Demographic trends
Sociological trends
Economic trends
Political trends (including regulation)
Behavioral trends

6. Expert Communities

University Research
Government Research
Corporate Research
Charitable Research
Hobbyists

To actually build a global sensing network you need to start from the inside out. You have to take a look around inside your organization and see what employees you have, what natural connections they have, and where they are currently located on the globe. At the same time you need to understand how employees in your organization naturally connect with each other and define what core, adjacent and distant technologies mean in the context of your organization. You must also look and see what tools you have inside the organization for managing insights, expertise and information within the organization, and what expert communities you may already have connections into.

I would recommend beginning to establish your global sensing network inside your organization before venturing to build it out completely with the resources and connections that you will naturally need outside your organization. This will enable you to get some really great feedback from employees on the connections that will be necessary to foster and manage outside of your organization and to prepare your information sharing systems and internal communications to enable increased sharing and improved innovation inputs and outputs.

It is likely that many organizations will already be gathering some level of customer insight information from ethnography, private communities, focus groups, surveys, lead user observation, etc. but not have a good infrastructure, policies or procedures in place for sharing this information. If you’re truly serious about creating a deep innovation capability and working to achieve innovation excellence in the same way that you pursue operational excellence, you should experiment with your systems by making customer information more available.

Next, you should leverage your employees and existing partnerships to reach outside the organization to organize and establish stronger communication channels with the relevant expert communities, including those focused on university research, government research, charitable research, corporate research (industry associations and competitors), and even to inventors or hobbyists.

And then finally from the connections you’ve built to this point, you should have identified where you have good people internally to provide information on local social mutations (local developments of interest spawned by local demographic, sociological, economic, political and behavioral trends), and where you have gaps. Hopefully by this point you may have also identified people outside your organization in countries around the world that you already have formal or informal connections to that can be leveraged to fill the gaps in your global sensing network footprint.

Conclusion

If you’re already involved in innovation and change, or have read a lot on the topic, it should be obvious to you why your organization needs a global sensing network.

Building a global sensing network helps organizations:

Accelerate their innovation efforts
Create more fluid organizational boundaries
Embrace a more open approach to innovation
Monitor emerging and evolving technologies
Track changes in customer behavior in the unending search for new insight-driven ideas

But the main that should jump out as you look at the download titled Building a Global Sensing Network is that innovation can come from anywhere, so you need to be listening everywhere.

The purpose for building a global sensing network is much like the purpose for having a SETI program. We know that there must be intelligent life outside the four walls of our organization, but to find it, we must be listening. And we must be listening so that we can amplify, combine and triangulate the weak signals that we might pick up so that we can find the next innovation and change that our organization is capable of delivering – before the competition. After all, there is a war for innovation and change out there. The only true unknown is who’s going to win.

I hope you’ll come join me on this journey to improve the pace and execution of innovation and change efforts in our organizations!

Click to access this framework as a scalable 11″x17″ PDF download

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What is the Role of Personal Branding in Achieving Innovation Success?

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I’ve been thinking a lot lately about personal branding, in part because I’m about to begin a new commissioned white paper and so I’ve been re-visiting my popular white paper for Innocentive – Harnessing the Global Talent Pool to Accelerate Innovation, and what I wrote about personal branding there:

“… the world continues to move away from being a place where employees expect to have jobs for life, and fight against any change to this paradigm, to a world where portfolios, personal branding, and project-based work will become more common in an increasing number of industries. The evolving world of work is becoming a world in which individuals will need to be really good at collaborating and playing well with others, while also honing their skills at standing out from the crowd. At the same time, the external perception of your network value will expand from a focus on internal connections to also include the talented minds you might know outside the organization that can be brought in on different projects or challenges.”

So, let’s dig in…

The power of the individual versus the power of the collective. This is a tension that has been around longer than the practice of human resources and talent management as an occupation. While the organization is concerned with achieving success for the collective, too often we forget that the collective is made up of a collection of unique individuals, and that each of these individuals have a collection of unique skills, talents, and abilities that may or not directly fulfill the needs of their role and the organization’s goals and brand promise:

“To build a brand, you must start a conversation with your customers. Your customers have to know that you stand for something and that they can count on you to deliver upon your brand promise.” (April 20, 2012)

While the role of the individual in helping to fulfill the organization’s brand promise is often not considered, it should be, at the same time that the organization considers whether its chosen individuals adequately fill the defined job requirements that the organization believes are necessary to fulfill the collective’s mission to achieve revenue and profits for its shareholders, value for its clients and donors, or benefits for its constituents (depending on whether you’re talking about a for-profit, non-profit or governmental organization).

If we look at each role in an organization as an attempt by management and human resources to find a perfect match for the job requirements that live within a certain circle, the fact is that for every role, the circle of the individual’s skills, talents, and abilities will never perfectly overlay the circle of the job requirements, it will always look like a Venn Diagram with a good candidate possessing a large amount of overlap, but with always some of their skills, abilities, and talents lying outside of their job requirements’ circle.

But most organizations (referred to as Typical Organizations in the graphic below) fail to harness the skills, abilities and talents of the individuals they have in their organization to achieve greater performance as a collective. In my mind this is painful, wasted human capital – painful for the organization (lost potential revenue and profitability) and painful for the individual (boredom, stress, and disappointment).

If your employees lack the external exposure, the external connections, and the external personal brand equity and awareness, how much harder will it be for your organization to:

Attract the best partners to your innovation efforts
Recruit the best customers to co-create with you
Build a strong pipeline of potential future internal talent

Through this lens you can see that in the future, innovation success will be determined not just by how strong the brand of your organization is (or the collective), but also will be shaped by the strength of the personal brands of the collective’s component individuals.

Does your organization recognize the value of your personal brand to the innovation success of the collective, and foster it, or attempt to prevent you from growing your personal brand equity?

What is your personal brand, how strong is it, and how are you going to leverage this to power innovation in your organization?

Keep innovating!

Build a common language of innovation on your team

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Top 10 Innovations of All Time

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Accelerating Innovation Requires Accelerating Knowledge and Insight

Accelerating Innovation Requires Accelerating Knowledge and Insight Okay, I admit it, I came across the History Channel’s series Ancient Aliens recently and I’m intrigued, mostly because it is fascinating (and frightening) to me how long it takes to develop true knowledge and insight, but how quickly it can be lost.

Leaving the whole ancient astronaut theory thing out of it, it is obvious looking at the historical record that throughout history, civilizations around the world (more than once) have developed advanced scientific understanding only to have their civilization (and its knowledge) destroyed by a natural catastrophe or fade away for some other reason. At the same time, another thing that is clear as we look across our history as a species is that there are certain periods of time during which innovation accelerates and often this increase in the velocity of innovation is linked to an increase in the velocity of knowledge and insight sharing.

The Renaissance coincided with the arrival of paper in Europe, culminating with paper making its way to Germany in 1400 AD and inspiring the development of the printing press in 1450, which then accelerated the spread of books, magazines, and newspapers in the 15th and 16th centuries.

The Age of Enlightenment coincided with early semi-public libraries that were only available to a learned few, but those few were inspired to create important and transformative thought in the 17th and 18th centuries.

The 19th century was a golden age of invention and innovation, ushering in the era of modern medicine, and technologies like the telegraph and the telephone which enabled information, knowledge and insight to finally travel faster than the horse.

The modern public library, as we now know it, came into its own in the the United Kingdom in the 19th century and the United States in the 20th century (thanks to Andrew Carnegie) and new communications technologies like radio and television brought information and knowledge to the illiterate and enabled people to see and hear things they would never have imagined before.

And by the close of the 20th century and the beginning of the 21st century, human beings had gained the ability to learn from each other no matter where they live in the world, in real time, in words, pictures, and now even through the sharing of videos sharing knowledge and insight, and even by showing people how to do things.

It is my contention that the pace of innovation accelerates when the speed of knowledge sharing accelerates, that knowledge acceleration leads to innovation acceleration. As we have developed more efficient ways of accelerating the pace of knowledge sharing, our pace of innovation has sped up.

It is shocking to think that if you go back only two hundred years as a species we had no idea how disease was transmitted, couldn’t send a message from one side of an ocean to another without using a ship, and that most human beings on this planet would not travel farther than 50 miles from the place of their birth during their lifetime.

Now we can travel to outer space, levitate objects using sound or magnetism, create life, destroy whole cities in an instant, build things smaller than the width of a human hair, and do some other things that even twenty years ago would have seemed impossible.

We are inventing and innovating today at an astonishing rate, and for companies or nations that want to outpace their competition, they should be laser-focused on accelerating the pace of knowledge sharing if they are intent on being faster and more efficient than their competition at innovation. But it isn’t even the speed of knowledge or information sharing that is the holy grail, it is the speed of insight sharing that leads to faster and more efficient innovation, and many organizations mistakenly restrict access to the voice of the customer. And when you cut off your employees from your customers, how can you expect to can anything but inventions instead of innovations?

It is because of these important linkages that I believe the below ten items are the Top 10 Innovations of All Time:

Paper (105AD – Europe 10th century – Germany 1400)
Printing Press (1450)
Telegraph (1837)
Telephone (1876)
Modern Public Library (1850-1945 depending on country)
Commercial Radio (1920)
Commercial Television (1936 UK, 1948 US)
World Wide Web (1991)
Wikipedia (2001)
YouTube (2005)

Caution – We May be Becoming Too Reliant on Technology

But there is a cautionary tale contained in this list and the Ancient Aliens reference at the beginning. You will notice that this list is increasingly dependent on technology – especially the existence of electricity.

What would happen if there was a major natural catastrophe (flood, famine, major volcanic eruption or meteor strike, giant solar flare) and for some reason all of our electrical devices ceased to function?

How much of our accumulated knowledge and technology would we lose?

Despite the growing decline of print and rising usage of digital media, the book has one major advantage, it doesn’t require power to operate. Stone tablets don’t decay as fast as paper.

Should we as a society be transcribing our most important knowledge onto something that could survive a major catastrophe (including the potential loss of electricity for an extended period of months or years), so that we as a species don’t have to start over again as we obviously have had to do in the distant past?

Technology is wonderful and allows us to do many amazing things but we should be careful about becoming too reliant on it, or we risk potentially losing the knowledge that allowed us to create it in the first place.

Just a thought…

And if you are intent on accelerating the sharing of knowledge, information, insight and innovation in your company or country, let me know, I could help with that.

Image source: kansasbob.com

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Human-Centered Change and Innovation

Innovation, change and transformation thought leadership, lovingly curated by Braden Kelley

Tag Archives: Networking

How Networks Power Transformation

Why Blockbuster Really Failed

Addressing The Internal Struggle

Rewiring Networks

Rethinking Leadership For A Networked Age

Innovation and Transformation Advisory and Connection Opportunity