Tag Archives: speed

Business Pundits Love to Say These 4 Untrue Things

Business Pundits Love to Say These 4 Untrue Things

GUEST POST from Greg Satell

Go to just about any business conference and you will see a pundit on stage. He or she will show some company that failed and explain the silly mistakes that they made, then follow-up with a few basic rules to help you avoid those pitfalls and become super successful. You leave feeling confident, because it all seems so simple and easy.

Yet look a little closer and the illusion falls away. Very few of these pundits have ever run a successful business. At the same time, many of the executives that are shown to be so silly today, were hailed as visionaries of their time, often by the same pundits that ridicule them now. Some went on to great success later on.

The truth is that managing a successful enterprise is a very hard and complex thing to do well. It can’t be boiled down to a few simple rules. For every great enterprise that does things one way, you will find one that’s equally successful that goes about things very differently. So to succeed in the long term, we often need to ignore the myths pundits love to repeat.

1. You Need To Move Fast And Break Things

When the iPhone came out in 2007, Microsoft CEO Steve Ballmer dismissed it, saying, “There’s no chance that the iPhone is going to get any significant market share. No chance.” The tech giant recognized the switch too slowly and largely missed out on the mobile market. Microsoft, it seemed, was a dinosaur, soon to become extinct.

Yet actually the opposite happened. Over the next 10 years, the company grew revenues at the impressive annual rate of better than 10% and maintained margins of nearly 30%. Those are very strong numbers. How can a company miss such an enormous opportunity and still survive, much less thrive?

They key to understanding Microsoft’s business isn’t what it missed, but what it was patiently building. While the world was obsessed with mobile, it was developing its servers and tools division, which eventually became the core of its cloud business that is now growing at stellar rates. That’s why Microsoft is once again vying to be the world’s most valuable company.

While agility can be an important asset for developing applications based on technology that is well understood, it is not a great strategy for developing technology that is truly new and different. To do that, you need to explore, discover and invent from scratch. That takes time and patience.

2. Innovation Is About Ideas

There is nothing that pundits and self-styled gurus like to talk about more than the power of ideas. They put up a picture of someone famous, like Albert Einstein, Mahatma Gandhi, Martin Luther King Jr. or, most enthusiastically, Steve Jobs, and revel the audience with a fascinating story about how their ideas changed the world.

The implication is that you can change the world too if only you could find the right idea. So they suggest all manner of exercises, from brainstorming techniques to meditation and mindfulness, designed to get your creative energy flowing so that you can generate more ideas and rise to greatness, just like those fabulous and famous people.

Yet that’s not how innovation happens. Consider Einstein. He didn’t start with an idea, but with a problem. More specifically, he wanted to know what would happen if you shined a lantern while traveling at light speed. It took him ten years to solve that problem with his theory of special relativity. It took him another ten to solve his next problem and arrive at general relativity.

The truth is that if you want to make a real impact, you don’t start with an idea, but by identifying a meaningful problem to be solved. Revolutions don’t begin with a slogan, they begin with a cause.

3. Lowering Costs Will Make You More Competitive

Not all pundits are pie-in-the-sky dreamers. Some are hard-nosed realists and they will tell you that the key to success is focusing on the bottom line. That means a relentless drive toward efficiency and driving down costs so that you can increase margins and achieve a sustainable competitive advantage.

Yet as MIT Professor Zeynep Ton, explains in The Good Jobs Strategy, that’s often not the case, even in the notoriously stingy retail industry, she points to companies like Costco, Trader Joe’s and Spain’s Mercadona as examples of how you can get better results by investing in training and retaining employees to better serve your customers.

The problem with a relentless drive to cut costs and drive efficiency is you often end up impeding the interoperability and exploration it takes to create value. That’s the efficiency paradox. The more we try to optimize operations, the less we are able to identify improvements, react to changes and discover new possibilities.

This is becoming even more important in the age of automation, where it is all too easy to replace employees with robots and algorithms. The truth is that racing to the bottom of the cost curve will almost guarantee that you will become a commodity business. Value never disappears, it just moves to a new place. To compete for the long term, you need to identify value at a higher level, develop new business models and redesign work.

4. Companies That Fail Weren’t Paying Attention

The one thing that you can almost guarantee at any conference is that at least one of the fancy pants gurus will tell a story about a great big company, usually Blockbuster, Kodak or Xerox, that was run by eminently silly people. Because these dull executives were asleep at the wheel, they failed to notice the change swirling around them and drove their enterprises into the ground.

The problem is that these stories are almost never true. Make no mistake, it takes talent, intelligence and ambition to run a significant enterprise. So whenever anybody tells you that there was a simple fix to a complex problem, you should raise your B.S. antenna. You’re probably being sold a fairy tale.

Reality is never simple or clear cut. Executives need to make tough decisions with incomplete information, often in a complex time frame. So rather than looking for easy answers, you would do yourself a much greater service by trying to uncover why smart, diligent leaders with good intentions so often get it wrong and learning from them.

Most of all, you need to internalize the fact that success or failure never boil down to a single decision or event. Even the best of us have bad moments and sometimes the least deserving get lucky. The best you can do is to keep moving forward, continue to learn and, most of the time, ignoring the pundits.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credit: Dall-E on Bing

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

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

  1. A 90% Project Failure Rate Means You’re Doing it Wrong — by Mike Shipulski
  2. ‘Innovation’ is Killing Innovation. How Do We Save It? — by Robyn Bolton
  3. Sustaining Imagination is Hard — by Braden Kelley
  4. Unintended Consequences. The Hidden Risk of Fast-Paced Innovation — by Pete Foley
  5. 8 Strategies to Future-Proofing Your Business & Gaining Competitive Advantage — by Teresa Spangler
  6. How to Determine if Your Problem is Worth Solving — by Mike Shipulski
  7. Sprint Toward the Innovation Action — by Mike Shipulski
  8. Moneyball and the Beginning, Middle, and End of Innovation — by Robyn Bolton
  9. A Shortcut to Making Strategic Trade-Offs — by Geoffrey A. Moore
  10. 3 Innovation Types Not What You Think They Are — by Robyn Bolton

BONUS – Here are five more strong articles published in April 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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Today’s Customer Wants to Go Fast

Today's Customer Wants to Go Fast

GUEST POST from Shep Hyken

Customers don’t want to wait. Specifically, they don’t want you to waste their time. If you do make them wait, you risk losing them. Making your customers wait sends the message that you don’t respect them or their time.

Jay Baer, a customer experience and marketing expert, proves this in his latest study, The Time to Win, which measures the impact of speed and responsiveness on customer experience and loyalty.

Just how important is speed? Consider these findings from Baer’s report:

  • Two-thirds of customers say speed is as important as price.
  • More than half of the customers surveyed hired the first business to respond to their requests, even if it was more expensive.
  • Half of all customers will not wait more than three minutes in a store.

I had a chance to interview Baer on Amazing Business Radio, where he shared some important insights that should be considered. Here are six of my favorites, followed by my commentary:

  • Speed is the most important component of customer experience and the only one that never pauses or goes backward – Calling it the most important component of the customer experience is bold, but consider a key finding from the report: 50% of customers are less likely to spend money with a business that takes longer to respond than they expect. Baer says, “Customers’ expectations for speed and responsiveness escalate every year without fail.”
  • Everyone has the same amount of time, 1,440 minutes a day, and there is nothing we can do to get more – Time is the same for everyone. Nobody gets more than anyone else. It has nothing to do with being rich, poor, young or old. And once it’s gone, you can’t get it back. Starting with that premise, business leaders should ask themselves, “What can we do to make sure we’re not to blame for wasting our customers’ time?”
  • Age makes a difference – In our interview, I was surprised when Baer shared the generations that were most and least patient. I would have thought Baby Boomers (the older generation) would have been more patient, but I was wrong. Gen-Z is the most patient generation. Boomers are the least patient. The point is to know your customers. Who do you cater to? Understand the demographics and improve your response time accordingly.
  • The first company that responds to a customer has an incredible advantage – If your company is the first to respond, you could win the customer’s business, regardless of price. Specifically, 53% of consumers hired the first business that responded to them. Customers want to make decisions and move on. If you give them what they want, they can skip the hassle and time of comparing all the competition.
  • Fast response impacts your bottom line – Just as customer service and convenience make price less relevant, so does quick response or fast service. The research found that customers would pay an average of 19% more for “always immediate service,” which includes no waiting in line, not waiting on hold, etc. In other words, customers put a premium on speed. It’s about convenience. Furthermore, 27% of customers are more likely to spend money when the brand responds faster than expected.
  • Right now is not really right now – As customers’ expectations and their need for speed increase, the concept of “right now” can seem daunting. According to Baer, the concept of “right now” is the optimal amount of elapsed time in every customer interaction throughout the entire customer journey. If that sounds technical, here’s a simpler way of putting it: “Right now” is simply slightly faster than the customer expected.

With only 1,440 minutes available each day, customers want to devote as few minutes as possible to waiting, as Baer’s research proves. This is so important that people will pay more for it. The security lines in airports are perfect examples of this. If you’ve taken a flight in a major U.S. airport, you’ll notice three lines to get through security. The TSA security line is for most passengers. This is free. Then there is TSA PreCheck. For a small investment of $78 (which covers you for five years), you can get pre-qualified to use a shorter line where you don’t have to take your computer out of your bag, take off your shoes, and more. And for a bit more money, you can sign up for CLEAR, which allows you to jump to the front of the TSA lines.

Baer’s research makes an important point. If you want a competitive edge in business, respect your customer’s time. Don’t make them wait. Respond quickly to their questions, requests, and problems. Find ways to incorporate speed into your customer experience and you’ll reap the benefits of returning customers who spend more and say, “I’ll be back!”

This article was originally published on Forbes.com.

Image Credit: Wikimedia Commons

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Speed of Change

Speed of Change

Are You Innovating at the Speed of Change?

The world is changing all around us at an increasing rate, and individuals (and yes organizations too) are struggling to cope with this ever increasing pace of change.

In fact, over the last 50 years the average lifespan of a company on the S&P 500 has dropped from 61 years to 18 years (and is forecast to shrink further in the future).1

Innosight Average Company Lifespan

Nobody of course wants to be one of those organizations that goes out of business, but the fact is that if your organization can’t innovate and change at the speed of change of its customers’ wants and needs, and the pace of geopolitical, social, and economic change in the world around it, then it will likely have to change its sign from open to CLOSED, permanently.

Your organization may indeed be doomed to fail if it develops on or more of the following change gaps:

  1. Your speed of hiring is slower than the speed of your growth
  2. Your speed of market understanding is slower than the pace of market change
  3. Your speed of insight dissemination and acceptance is slower than the pace of market change
  4. Your speed of idea commercialization is slower than the pace of market change
  5. Your speed of innovation is slower than the competition’s speed of innovation
  6. Your speed of internal change is slower than the rate of external change

The last one is of course the largest and the most important, and the most complex, being composed of your speed of:

  • Market Analysis (gathering of insights and inspiration)
  • Invention (creation of innovation source material)
  • Design (building a potential solution around an invention)
  • Development (taking the design and creating a scalable, launch ready solution)
  • Test (Evaluating with customers whether the solution works as designed and scales as intended)
  • Evolution (Launching the solution into the marketplace with open eyes and ears, pivoting/improving as necessary)

While it is possible to enter a market too early, you can survive this tactical error if you enter in a small way instead of committing to a global launch with grand customer promises. However, much more damage comes to organizations that enter too late. So, as an organization we must be constantly striving to get faster at discovering new market insights and adapting and aligning our organization to fulfill newly discovered market needs more quickly than our competition, otherwise we might find ourselves locked out of our customers’ top consideration set tier.

Consumption Spreads Faster

What other change gaps do you see as you look at your business or that of your competition?

This is the first of many articles that I will be writing in the run up to my second book (to be published by Palgrave Macmillan), in which I will explore the importance and implications of change in the ongoing success of organizations, along with building up a concise set of best practices and next practices for change.

To help kick off this journey I will be conducting a FREE webinar with my friends over at CoDev, focusing on how Innovation is All About Change. This exclusive sneak peek and Live Q&A will take place from 12:00-1:00pm ET on January 15, 2015, and will feature a quick introduction to a new visual, collaborative change planning toolkit that I’ve developed and am ready to share with the world. Click here to register (link expired).

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

UPDATE to banner: You can now access a free recording of this webinar using PASSCODE 1515 here (link expired)

1. Innosight/Richard N. Foster/Standard & Poor’s
2. Image Source: Wikipedia


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Are you competing at cloud speed?

Are you competing at cloud speed?We live in an era of constant, accelerating change, and the only organizations that are equipped to keep pace are those that are capable of competing at cloud speed. Does trading out packaged software installed on your own servers for the cloud-based versions offered by your vendor accelerate your organization to cloud speed?

Sorry, no.

So what the heck is cloud speed anyways?

Competing at cloud speed is a goal that every organization should have, and it requires learning fast not failing fast, it involves creating the flexibility to adapt to trends that spread globally faster than ever before, to respond to competition from unexpected sources, and provides a potential antidote to decreasing corporate lifespans.

Accelerating to cloud speed requires your organization to operate under a series of principles that make it both FAST and agile.

Going FAST (the Right Way)

In the experience of Gordon Tredgold, creator of the FAST Approach to Leadership, we usually end up doing either the wrong job or a poor job in an organization because of a lack of focus or accountability, as a result of work has that’s been made overly complex, or because transparency doesn’t exist across the organization.

The FAST Approach to Leadership attempts to address these concerns by answering the What, Who, How and How Far questions related to the task, service or project that is to be delivered (or goal to be achieved). The following four areas make up the letters of the FAST Approach to Leadership and its FAST acronym:

  1. FOCUS is about the WHAT, what we’re doing, what is our objective, and what does success look like.
  2. ACCOUNTABILITY is about the WHO, who is going to do the work, who will be accountable and how will we hold them accountable.
  3. SIMPLICITY is about the HOW, what is the solution, how are we planning to deliver success. Is our solution simple or have we over complicated it.
  4. TRANSPARENCY is about How Far, How Far we have come and How Far we have to go in order to be successful, it’s also about our honesty about our progress and capability.

Focus and Accountability help to ensure that we are getting the right job done, increasing our effectiveness.

Simplicity and Transparency help to ensure that we do a good job.

The objective of FAST Leadership is to ensure that we do the right job, well, each and every time.

Becoming Agile

According to a recent Forrester report titled Business Agility Starts With Your People, a digital business requires an organization to be able to both sense and execute on change, and Craig Le Clair of Forrester outlined a set of ten dimensions that define the digital business, grouped by market, organization and process:

Market Dimensions

1. Channel Integration – Information sharing and cross-channel experiences

2. Market Responsiveness – Customer knowledge and rapid access to resources

Organization Dimensions

3. Knowledge Dissemination – Broader sharing and flatter organizations

4. Digital Psychology – Trend awareness and digital skill sets

5. Change Management – Embracing change and embedded change management

Process Dimensions

6. Business Intelligence – Information management and distributed analytics

7. Infrastructure Elasticity – Cloud awareness and the embrace of cloud options

8. Process Architecture – Process skills and core system independence

9. Software Innovation – Real-time experience and incremental development

10. Sourcing and Supply Chain – Agile sourcing processes and supply chain flexing skills

People looking for a shortcut might hone in on the Process Dimension named Infrastructure Elasticity because it contains a mention of the word cloud and think that this dimension is the secret to competing at cloud speed, but by itself it is not. Forrester’s research showed that the relative performance of an organization along the Infrastructure Elasticity dimension was not a predictor of organizational success, but instead an enabler of improved performance along other dimensions. Craig Le Clair found that greater business agility comes not just from increased Infrastructure Elasticity, but from consciously utilizing that increase to achieve other improvements, such as an improved Digital Psychology or increased Knowledge Dissemination.

Competing at Cloud Speed

When we think about the cloud, what makes it incredibly powerful for organizations is that it breaks down walls. The cloud makes it possible to quickly get people in different departments, geographies, and even organizations collaborating together using a range of cloud-based tools to achieve business goals. When the cloud is viewed not as a solution, but as an enabler of multiple business agility improvements, and a foundation for the principles of FAST Leadership (focus, accountability, simplicity and transparency), we can finally begin competing at cloud speed.

Competing at cloud speed will help improve the velocity of:

  1. Information flow inside and outside the organization
  2. Decision making and commitment
  3. Resource re-deployment
  4. Channel and customer feedback on course corrections

Competing at cloud speed means putting systems in place that quickly capture the voice of the customer, and broadcast it widely and deeply enough into the organization. It means putting the processes and decision-making tools in place to allow leadership to adapt their strategy, redeploy resources and spin up new cross-border and cross-boundary project teams to full productivity faster than the competition in order to capitalize on changes in customer wants and needs.

Are you competing at cloud speed?

Join Inc. 100 and #1 Leadership Expert, Gordon Tredgold, formerly Head of Service Delivery at Henkel, for a simple approach to improve your operational performance live during our expert webinar on October 8 or register for the OnDemand recording.

Sources:

  1. http://www.theleadershiphub.com/blogs/fast-leadership-0
  2. http://solutions.forrester.com/business-agility/improve-your-business-agility-187UW-2434YQ.html
  3. https://www.linkedin.com/pulse/article/20140914015150-649711-don-t-fail-fast-learn-fast
  4. http://www.business-strategy-innovation.com/Voice-of-the-Customer-White-Paper.pdf

NOTE: This article was written for Intuit Quickbase’s The Fast Track but disappeared off the web so I brought it back here


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Velocity, Speed and Innovation

Velocity, Speed and Innovation

Flying for 12 hours at a stretch can give you a lot of time to think, in between in-flight meals, movies and other on-board entertainment.

The more I thought about the current state of innovation, the more I realized that many of us have it all wrong. We at OVO often talk about innovation as an enabler to strategy, not a strategy itself. But I think there’s something much deeper going on than that. First, we know that many executives WANT more innovation. But they don’t want innovation for its own sake. They want innovation that drives more revenue growth, more differentiation and more creation of compelling products and services than what would otherwise happen. This means that innovation must create solutions with more return than existing methods, with only incrementally greater risk.

Executives want to be Innovative, they don’t want Innovation

In the final analysis, CEOs and senior executives don’t want INNOVATION, they want the benefits and outcomes of well-pursued innovation activities, namely, growth, differentiation, market penetration, disruption of adjacent markets and so forth. If there are easier ways to achieve these outcomes, CEOs and organizations will gladly pursue the alternatives, and forgo the risks that surround innovation. What risks? Because of the investments in management tools, techniques and training to improve efficiency and effectiveness, many businesses have very efficient but very brittle and fragile operating models. Innovation introduces risk, uncertainty and change into organizations and business models honed to avoid these issue. Further, most work teams have been right-sized and down-sized to the point where incremental work is almost impossible to engage. No, what executives want is not innovation per se, but they would like to be viewed as INNOVATIVE and enjoy the benefits of meaningful, valuable new products and services.

Why Velocity is more important than Speed

Perhaps what I’ve come to realize is that what most organizations need more than anything is VELOCITY. Let me explain what I mean by Velocity. My daughter’s physics class was working on the definition of motion and speed. Speed measures how fast an object is moving, so many feet or miles divided by the amount of time it takes to complete the distance. Physics and calculus distinguish SPEED from VELOCITY, by taking the stance that VELOCITY is Speed in a specific direction. Physicists and scientists would say that VELOCITY is a Scalar concept.

When we think about most businesses, VELOCITY is exactly what they need. They need speed to compete with a host of changes occurring in their markets, from increased competition to lowered trade barriers to a rapid increase in the abilities of individuals and firms in developing countries and markets. However, speed isn’t all that valuable if it’s in the wrong direction. VELOCITY is speed in a specific direction, and that’s what many organizations need. They need to be faster, more effective, more innovative, and end up in a place that was intentional.

VELOCITY connotes the idea that the firm is going somewhere that matters. How a firm knows where to go is dependent to some extent on corporate strategy and how well that strategy is communicated. Further, how it knows where to go is dependent on the firm’s ability to assess market trends, develop scenarios and understand customer needs. These final factors are innovation tools, which help describe a range of possible futures and help decipher which ones are relevant and important.

Speed kills, Velocity Wins

Over the next few posts I will write about speed, velocity and their relationship to innovation. Because increasingly innovation is just a method to help a firm increase its speed in a particular direction. Speed will become the new competitive weapon in a highly competitive market, but speed in and of itself is useless without intentional direction and guidance. We’ll look at why speed is ever more important, and how good innovation contributes to speed and velocity.

Another way to think of this is that innovation is a feature, and speed or velocity are the potential benefits. I’m increasingly convinced that velocity in a business sense – getting to the right markets and opportunities faster than others, and doing so intentionally – is the capability that will distinguish winners from losers in the coming years.

Image credit: Pixabay

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