Management Accountability in Two Dimensions

Performance and Power

GUEST POST from Geoffrey A. Moore

In Silicon Valley, we talk a lot about leadership but perhaps not enough about management. That’s because we are famous for working the fuzzy front end of things, where management is premature and leadership is paramount. But to have real impact on the world, you must eventually lean on strong management to operate at scale. So, what exactly does that entail?

First and foremost, management is about delivering the performance committed to in the plan. Everyone gets this, and while there are major differences in styles of management, all are measured ultimately by performance metrics, and no one is confused. We may not like the numbers we are supposed to make, but we know what they are, we have some idea of what it will take to make them, and we will get report-outs along the way to tell us how we are doing.

Such is not the case, however, with a second dimension of management accountability—the need to continually invest in ways that will power future performance. Performance consumes power as a means to create returns. If we focus 100% of our resources on performance, we will eventually exhaust all our existing sources of power and will be unable to compete effectively going forward.

Seems obvious enough, but here is the problem. We do not define power anywhere nearly as clearly as we define performance. We do not have reports that tell us how we are doing on the power side of the equation. We are often not really clear about what power we should be going after, what investments could be specifically targeted to deliver power, or what metrics would verify that we have succeeded. Worse still, our performance compensation systems can actually incent us to ignore all this ambiguity around “power management” and focus solely on meeting our performance commitments, particularly when resources are tight. Worst of all, as power dwindles, it becomes harder and harder to make the number, which puts more pressure on the resources we have, which further disincentivizes investing in future power. The result is a downward spiral from which it is painfully hard to escape.

So, what can we do to prevent it?

To begin with, we will need a map—specifically a power map, an understanding of the geography of our current power base. We can develop one through root cause analysis. That is, if we are in the Performance Zone, we can ask, where are our products successful, where are they not, and why? Where are our sales efforts successful, where are they not, and why? Similarly, if we are in the Productivity Zone, we can ask, where are our systems working as promised, where are they not, and why? Which of our programs have delivered the change in state promised, which have not, and why? (Note: if we are in the Incubation Zone, we are already an investment in power, so this exercise would not apply.)

Root cause analysis, by its very nature, shifts the focus from the domain of performance (effects) to that of power (causes). The deeper this analysis can penetrate, the more insightful our map of power becomes. This is a good opportunity to engage the entire team, not only to improve the quality of the analysis, but also to help everyone develop their own management perspective.

Once a power map is in view, then the question becomes, if we could intervene in only one place, where could we have the most impact, and what would it take to bring it about? We are looking for a specific initiative that could change the game within whatever time limits are appropriate to the situation. Here are some examples:

In response to a weakening industry status, Sybase leveraged the financial crisis in 2008 to boost its power on Wall Street, a long-dormant part of its power map, with a campaign that focused on portfolio risk analysis, capitalizing on the unique attributes of its columnar database for online analytics. The success of that campaign bought valuable time to develop a mobile app platform for hosting enterprise applications on the iPhone, something that led to SAP acquiring the company at a premium in 2010.

In response to the successful performance of the iPod and iTunes (almost half of Apple’s revenue in 2007), subsequently being exposed to the existential threat of smartphones eventually assimilating music players, Apple invested deeply in the iPhone, leveraging its existing wireless downloading infrastructure to liberate programs and content from carrier control. Today, the iPod is effectively embedded in the iPhone, and it is that device that supplies 50 percent of Apple’s revenue.

In response to drastically deteriorating industry power at IBM in the early 1990s, Lou Gerstner completely reframed the enterprise’s power map, rejecting the view that future power would come from disaggregation, asserting instead that it would come from global integration. Leveraging an emerging global trend in e-commerce, he and his team transformed the company into a services-led powerhouse that helped lead the IT industry for another decade.

These examples, of course, represent big power maps. Most of us play on a considerably smaller stage. But the principles are the same:

Leave conventional wisdom behind
Take a fresh view of the power dynamics influencing your organization
Launch a single focused initiative that tees things up for future success

All that remains is to create accountability for power outcomes. Accountability begins with identifying a single accountable person. People often shy away from this because they associate it with someone to blame. That is neither the point nor the role. Rather, this person is the quarterback of the initiative. To be really clear, they are not the team owner (that would be the executive sponsor) nor are they the coach (that would be the line manager in charge of delivering both performance and power), but rather they are the person on the field taking input from teammates to make the best calls in the moment. Without this single point of coordination, initiatives are unable to take decisive action under conditions of uncertainty—in other words, they underperform in game-time situations.

The next thing we need is a good way to keep score. This can be tricky because indicators for power are not as easy to see as those for performance. Nonetheless, we cannot manage what we cannot measure, so we need to get creative here. One place we can look for ideas is from our customer success operations. There the focus is on onboarding, adoption, usage, and upsell—all of which are signals of whether power is waxing or waning. Whatever the initiative we are managing, we need to create proxies to detect these kinds of signal and use them to track our progress.

Finally, we need to tie meeting power metrics with compensation, not only for the single accountable person but also for the organization making the resource sacrifices to enable the investment required. This will typically be in the form of bonuses for hitting key metrics within a given time limit. Not only do such bonuses motivate, they also make clear to the rest of the enterprise that this initiative is important, and that the people leading it are committed to its success.

That’s what I think. What do you think?

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Integrating Ethics into Every Stage of Innovation

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From Concept to Conscience

Integrating Ethics into Every Stage of Innovation

GUEST POST from Art Inteligencia

In the relentless pursuit of innovation, we often celebrate speed, disruption, and market dominance. The mantra “move fast and break things” has, for too long, overshadowed a more profound responsibility. As a human-centered change and innovation thought leader, I have seen the dazzling promise of new technologies turn into societal pitfalls due to a critical oversight: the failure to integrate ethics at the very inception of the innovation process. It’s no longer enough to be brilliant; we must also be wise. We must move beyond viewing ethics as a compliance checklist or a post-launch clean-up operation, and instead, embed **conscience into every single stage of innovation**, from the initial concept to the final deployment and beyond. The future belongs to those who innovate not just with intelligence, but with integrity.

The traditional innovation pipeline often treats ethics as an afterthought—a speed bump encountered once a product is almost ready for market, or worse, after its unintended consequences have already caused harm. This reactive approach is inefficient, costly, and morally bankrupt. By that point, the ethical dilemmas are deeply baked into the design, making them exponentially harder to unwind. The consequences range from algorithmic bias in AI systems to privacy invasions, environmental damage, and the erosion of social trust. True human-centered innovation demands a proactive stance, where ethical considerations are as fundamental to the design brief as user experience or technical feasibility. It’s about asking not just “Can we do this?” but “Should we do this? And if so, how can we do it responsibly?”

The Ethical Innovation Framework: A Human-Centered Blueprint

Integrating ethics isn’t about slowing innovation; it’s about making it more robust, resilient, and responsible. Here’s a human-centered framework for embedding conscience at every stage:

1. Concept & Ideation: The “Pre-Mortem” and Stakeholder Mapping:
At the earliest stage, conduct an “ethical pre-mortem.” Imagine your innovation has caused a major ethical scandal in five years. What happened? Work backward to identify potential failure points. Crucially, map all potential stakeholders—not just your target users, but also those who might be indirectly affected, vulnerable groups, and even the environment. What are their needs and potential vulnerabilities?
2. Design & Development: “Ethics by Design” Principles:
Integrate ethical guidelines directly into your design principles. For an AI product, this might mean “fairness by default” or “transparency in decision-making.” For a data-driven service, it could be “privacy-preserving architecture.” These aren’t just aspirations; they are non-negotiable requirements that guide every technical decision.
3. Testing & Prototyping: Diverse User Groups & Impact Assessments:
Test your prototypes with a diverse range of users, specifically including those from marginalized or underrepresented communities. Conduct mini-impact assessments during testing, looking beyond functionality to assess potential for bias, misuse, or unintended social consequences. This is where you catch problems before they scale.
4. Launch & Deployment: Transparency, Control & Feedback Loops:
When launching, prioritize transparency. Clearly communicate how your innovation works, how data is used, and what ethical considerations have been addressed. Empower users with meaningful control over their experience and data. Establish robust feedback mechanisms to continuously monitor for ethical issues post-launch and iterate based on real-world impact.

“Innovation without ethics is a car without brakes. You might go fast, but you’ll eventually crash.” — Braden Kelley

Case Study 1: The IBM Watson Health Debacle – The Cost of Unchecked Ambition

The Challenge:

IBM Watson Health was launched with immense promise: to revolutionize healthcare using artificial intelligence. The vision was to empower doctors with AI-driven insights, analyze vast amounts of medical data, and personalize treatment plans, ultimately improving patient outcomes. The ambition was laudable, but the ethical integration was lacking.

The Ethical Failure:

Despite heavy investment, Watson Health largely failed to deliver on its promise and ultimately faced significant setbacks, including divestment of parts of its business. The ethical issues were systemic:

Lack of Transparency: The “black box” nature of AI made it difficult for doctors to understand how Watson arrived at its recommendations, leading to a lack of trust and accountability.
Data Bias: The AI was trained on limited or biased datasets, leading to recommendations that were not universally applicable and sometimes even harmful to diverse patient populations.
Over-promising: IBM’s marketing often exaggerated Watson’s capabilities, creating unrealistic expectations and ethical dilemmas when the technology couldn’t meet them, potentially leading to misinformed medical decisions.
Human-Machine Interface: The integration of AI into clinical workflows was poorly designed from a human-centered perspective, failing to account for the complex ethical considerations of doctor-patient relationships and medical liability.

These failures stemmed from an insufficient integration of ethical considerations and human-centered design into the core development and deployment of a highly sensitive technology.

The Result:

Watson Health became a cautionary tale, demonstrating that even with advanced technology and significant resources, a lack of ethical foresight can lead to commercial failure, reputational damage, and, more critically, the erosion of trust in the potential of AI to do good in critical fields like healthcare. It highlighted the essential need for “ethics by design” and transparent AI development, especially when dealing with human well-being.

Case Study 2: Designing Ethical AI at Google (before its stumbles) – A Proactive Approach

The Challenge:

As Google became a dominant force in AI, its leadership recognized the immense power and potential for both good and harm that these technologies held. They understood that building powerful AI systems without a robust ethical framework could lead to unintended biases, privacy violations, and societal harm. The challenge was to proactively build ethics into the core of their AI development, not just as an afterthought.

The Ethical Integration Solution:

In 2018, Google publicly released its **AI Principles**, a foundational document outlining seven ethical guidelines for its AI development, including principles like “be socially beneficial,” “avoid creating or reinforcing unfair bias,” “be built and tested for safety,” and “be accountable to people.” This wasn’t just a PR move; it was backed by internal structures:

Ethical AI Teams: Google established dedicated teams of ethicists, researchers, and engineers working cross-functionally to audit AI systems for bias and develop ethical tools.
AI Fairness Initiatives: They invested heavily in research and tools to detect and mitigate algorithmic bias at various stages of development, from data collection to model deployment.
Transparency and Explainability Efforts: Work was done to make AI models more transparent, helping developers and users understand how decisions are made.
“Red Teaming” for Ethical Risks: Internal teams were tasked with actively trying to find ethical vulnerabilities and potential misuse cases for new AI applications.

This proactive, multi-faceted approach aimed to embed ethical considerations from the conceptual stage, guiding research, design, and deployment.

The Result:

While no company’s ethical journey is flawless (and Google has certainly had its own recent challenges), Google’s early and public commitment to AI ethics set a new standard for the tech industry. It initiated a critical dialogue and demonstrated a proactive approach to anticipating and mitigating ethical risks. By building a framework for “ethics by design” and investing in dedicated resources, Google aimed to foster a culture of responsible innovation. This case highlights that integrating ethics early and systematically is not only possible but essential for developing technologies that genuinely serve humanity.

Conclusion: The Moral Imperative of Innovation

The time for ethical complacency in innovation is over. The power of technology has grown exponentially, and with that power comes a moral imperative to wield it responsibly. Integrating ethics into every stage of innovation is not a burden; it is a strategic advantage, a differentiator, and ultimately, a requirement for building solutions that truly benefit humanity.

As leaders, our role is to champion this shift from concept to conscience. We must move beyond “move fast and break things” to “move thoughtfully and build better things.” By embedding ethical foresight, transparent design, and continuous accountability, we can ensure that our innovations are not just brilliant, but also wise—creating a future that is not only technologically advanced but also fair, just, and human-centered.

Extra Extra: Futurology is not fortune telling. Futurists use a scientific approach to create their deliverables, but a methodology and tools like those in FutureHacking™ can empower anyone to engage in futurology themselves.

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Psychological Safety: The Foundation of a Thriving and Innovative Culture

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Psychological Safety: The Foundation of a Thriving and Innovative Culture

GUEST POST from Chateau G Pato

In a world defined by volatility, uncertainty, complexity, and ambiguity (VUCA), the old rules of leadership no longer apply. For too long, we have celebrated organizational cultures built on a foundation of intense competition, relentless efficiency, and a drive for individual brilliance. The implicit message was simple: success belongs to the most competent, the most certain, and the most productive. As a human-centered change and innovation thought leader, I am here to argue that this approach is fundamentally flawed. The most resilient, innovative, and high-performing teams are not the ones with the most talent, but the ones with the most trust. Their secret weapon is a concept known as **psychological safety**, the shared belief that the team is a safe place for taking interpersonal risks.

Psychological safety is not about being “nice” or creating a “safe space” for mediocrity. It’s about building a foundation of trust where people feel safe enough to be vulnerable. It’s the feeling that you can admit a mistake, ask a “stupid” question, or challenge the status quo without fear of being ridiculed, shamed, or punished. This is a crucial distinction. When psychological safety is absent, our natural human instinct to self-preserve kicks in. We self-censor, we withhold critical information, and we stick to the known, a recipe for stagnation and eventual failure. But when it’s present, something magical happens: individual intelligence transforms into collective genius. Teams learn faster, innovate more freely, and adapt to change with a level of agility that is impossible in a fear-based environment.

The Business Case for Safety: Why Trust is Your Greatest Asset

The argument for psychological safety isn’t just a philosophical one; it’s a strategic imperative with a clear business case. Research from a wide range of fields—from organizational psychology to neuroscience—confirms its power. In a landmark study, Google’s “Project Aristotle,” researchers set out to find the secret to the company’s most effective teams. They analyzed everything from individual skills to personality types, but the data revealed a surprising truth: the single most important factor was not talent, but psychological safety. This finding cemented psychological safety as the ultimate foundation for high-performance.

When psychological safety is high, a team can:

Embrace a Learning Mindset: Mistakes are seen as data points for learning, not failures to be punished. This enables rapid iteration and a “fail-fast” culture.
Unlock Creativity and Innovation: When people are free from the fear of looking foolish, they are more likely to share unconventional ideas, leading to genuine breakthroughs.
Improve Problem-Solving: Team members are more likely to speak up about potential problems, raise red flags, and engage in constructive conflict, allowing the team to address issues before they become crises.
Increase Employee Engagement and Retention: People want to work in an environment where they feel valued, respected, and safe. A culture of psychological safety fosters deep loyalty and reduces turnover.

“Talent gets you on the field, but psychological safety is what allows you to win the game.”

Case Study 1: Pixar’s “Braintrust” – A Masterclass in Candor and Trust

The Challenge:

In the high-stakes world of animated filmmaking, a single creative misstep can lead to a disastrous flop. For Pixar, the challenge was to create a mechanism for frank, honest, and even brutal feedback on films in progress without crushing the creative spirit of the director and their team. A typical corporate review process would be too political and hierarchical for the level of candid feedback needed.

The Psychological Safety Solution:

Pixar’s solution was the **Braintrust**, an exclusive group of the company’s most accomplished directors and storytellers. This wasn’t a formal committee; it was a culture built on psychological safety. The core rules of the Braintrust are simple yet powerful: a director is never obligated to act on the feedback, and the group’s purpose is to help the film succeed, not to assert power. The feedback is always on the work, never the person. This deep, shared belief that everyone is there to help and that no one is judging personal worth allowed for a level of open, candid criticism that is almost unheard of in other creative industries. Directors could present their half-finished, deeply flawed films and receive honest input without fear of professional harm.

The Result:

The Braintrust is a key reason for Pixar’s long-term, unprecedented creative success. It is a living testament to the power of psychological safety. By building an environment where candor and vulnerability were not just tolerated but celebrated, Pixar created a collective intelligence that consistently elevated the quality of every film. They proved that honest feedback, delivered with a foundation of trust, is the ultimate driver of creative excellence.

Case Study 2: The Boeing 737 MAX Crisis – The Catastrophic Cost of Silence

The Challenge:

In the years leading up to the two fatal crashes of the Boeing 737 MAX, the company was under immense pressure to compete with Airbus and deliver a new, fuel-efficient aircraft on an aggressive timeline. Internally, a culture of cost-cutting and a rigid, top-down hierarchy created a fear-based environment. Engineers and employees were aware of potential issues with the new flight control software (MCAS), but they felt unable to raise their concerns.

The Psychological Safety Failure:

In this culture of fear, with an emphasis on meeting deadlines at all costs, employees chose silence over speaking up. A damning report by the House Transportation and Infrastructure Committee found that a lack of psychological safety prevented whistleblowers from coming forward. Engineers felt that raising safety concerns would not only fall on deaf ears but could also lead to retaliation or professional damage. Instead of a collaborative problem-solving approach, the culture fostered a dangerous “don’t ask, don’t tell” mentality. The very people who could have prevented the tragedy were silenced by an environment that prioritized speed and cost over human lives.

The Result:

The absence of psychological safety at Boeing led to one of the most devastating corporate crises in modern history. The two fatal crashes killed 346 people and resulted in a massive financial and reputational blow. The case of the 737 MAX serves as a powerful cautionary tale, demonstrating that a lack of psychological safety is not just a cultural problem; it is a critical strategic risk with potentially catastrophic consequences. It’s a stark reminder that when people are afraid to speak up, the cost can be measured in both lives and livelihoods.

Conclusion: The Ultimate Foundation for Innovation

Psychological safety is not a “nice-to-have” or a buzzword from a corporate retreat. It is the ultimate foundation for building teams that are resilient, adaptable, and ready for anything. It is the soil in which innovation grows, where creativity flourishes, and where people are empowered to be their best, most authentic selves. As leaders, our most important job is not to have all the answers, but to create the environment where our teams feel safe enough to find them together.

In a world of constant change, the ability to learn and evolve is paramount. And learning only happens when we are willing to admit what we don’t know, to experiment without fear of failure, and to speak our minds without fear of judgment. The future belongs to the psychologically safe. Let’s start building it, one conversation and one act of vulnerability at a time.

Extra Extra: Because innovation is all about change, Braden Kelley’s human-centered change methodology and tools are the best way to plan and execute the changes necessary to support your innovation and transformation efforts — all while literally getting everyone all on the same page for change. Find out more about the methodology and tools, including the book Charting Change by following the link. Be sure and download the TEN FREE TOOLS while you’re here.

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A Superpower That Can Save The Day

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Same But Different

GUEST POST from Mike Shipulski

If there’s one superpower to develop, it’s to learn how to assess a project and get a good feel for when it will launch.

When you want to know how long a project will take, ask this simple question: ‘What must the project team learn before the project can launch?” By starting with this single question, you will start the discussion that will lead you to an understanding of what hasn’t been done before and where the uncertainty is hiding. And if there’s one thing that can accelerate a project, it’s defining where the uncertainty is hiding. And knowing this doubly powerful, like a pure two-for-one, because if you know where uncertainty is, by definition, you know where it isn’t. Where the uncertainty isn’t, you can do what you did last time, and because you’ve done it before, you know how long it will take. No new tools, no new methods, no new analyses, no new machines, no new skillsets, no new anything. And for the remaining elements of the project, well, that’s where the uncertainty is hiding and that’s where you will focus on the learning needed to secure the launch.

But it can be difficult to understand the specific learning that must be done for a project to launch. One trick I like to use is the Same-But-Different method. It goes like this. Identify a project that launched (Project A) that’s most similar to the one that will launch next (Project B) and perform a subtraction of sorts. Declare that Project B (the one you want to launch) is the same as Project A (the one you already launched) but different in specific ways and then define those differences as clearly and tightly as possible. And where it’s different, that’s where the learning energy must be concentrated.

Same-But-Different sounds simplistic and trivial, but it isn’t. More than anything, it’s powerful. For the elements that are the same, you do what you did last time, which is freeing. And for the small subset if things that are different, you dig in!

Same-But-Different drives deep clarity and extreme focus, which result in blistering progress and blinding effectiveness.

And for some reason unknown to me, asking a team to define the novel elements of a project is at least fifty times more difficult than asking them how Project B is different than Project A. So, it feels good to the team when they can use Same-But-Different to quickly easily define what’s different and then point directly to the uncertainty. And once the team knows where the uncertainty is hiding, it’s no longer hiding.

And if there’s one thing a project team likes, it’s knowing where the uncertainty is hiding.

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Corporate Venturing as a Catalyst for Innovation

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Venture Beyond

Corporate Venturing as a Catalyst for Innovation

GUEST POST from Art Inteligencia

In today’s rapidly evolving business landscape, the pursuit of innovation is no longer optional; it’s existential. Yet, many large, established corporations struggle to innovate at the pace of the market. Internal bureaucracy, risk aversion, and a focus on incremental improvements can stifle the disruptive thinking required for true transformation. As a human-centered change and innovation thought leader, I am here to argue that one of the most powerful and underutilized strategies for overcoming this inertia is corporate venturing. This isn’t just about investing money; it’s about strategically engaging with the startup ecosystem to ignite new growth, access frontier technologies, and inject a vital dose of entrepreneurial DNA into the heart of your organization. Corporate venturing is a deliberate act of looking beyond your walls to find the future.

Corporate venturing encompasses a range of activities, from direct venture capital investments (Corporate Venture Capital or CVC) to incubation programs, accelerators, and strategic partnerships with startups. Its core purpose is to bridge the innovation gap between the agile, disruptive startup world and the established, resource-rich corporate entity. This symbiotic relationship offers startups access to capital, market reach, and mentorship, while providing corporations with a window into emerging technologies, new business models, and fresh talent. More importantly, it acts as an external nervous system for innovation, allowing the corporation to sense, adapt, and respond to market shifts with a speed that internal R&D often cannot match. It’s a human-centered approach to expanding your innovation capacity, leveraging the entrepreneurial spirit that often flourishes outside traditional corporate structures.

The Strategic Imperatives of Corporate Venturing

To truly leverage corporate venturing as a catalyst for innovation, it must be approached with strategic intent, not just as a financial play. Here are four key imperatives:

1. Strategic Alignment, Not Just Financial Return: While financial returns are welcome, the primary driver for corporate venturing should be strategic. How does this investment or partnership align with your long-term vision? Does it open up new markets, provide access to critical technologies, or deepen your understanding of future customer needs?
2. Active Engagement, Beyond Capital: Successful corporate venturing is not passive. It requires active mentorship, resource sharing, and a genuine effort to integrate lessons learned from startups back into the core business. It’s a two-way street of learning and collaboration.
3. Build Bridges, Not Walls: The biggest challenge is often integrating the fast-paced startup mentality with the established corporate culture. Dedicated venturing units should act as translators, bridging the gap between the two worlds and fostering mutual understanding and respect.
4. Portfolio Thinking and Experimentation: Treat your venture portfolio like an experimental lab. Not every investment will succeed, but each provides valuable learning. Diversify your bets across different technologies, markets, and business models to hedge against uncertainty and maximize discovery.

“Don’t just acquire the future; invest in building it. Corporate venturing is your strategic lens into tomorrow’s disruption and market expansion.” — Braden Kelley

Case Study 1: Google Ventures (GV) – Investing in the Adjacent Future

The Challenge:

Google, despite its massive internal R&D capabilities, recognized that innovation often happens at the edges of an industry, driven by small, agile teams. The challenge was to systematically identify and invest in groundbreaking startups that could either complement Google’s core business or open up entirely new growth areas, without stifling their entrepreneurial spirit with corporate bureaucracy.

The Corporate Venturing Solution:

Google established Google Ventures (GV) as its venture capital arm. Unlike traditional corporate VCs, GV operates with a high degree of autonomy, investing in a broad range of technology companies, many of which are not directly related to Google’s immediate product lines. However, the strategic alignment is clear: GV invests in areas that represent the adjacent future of technology—AI, life sciences, consumer tech, enterprise software—giving Google an early window into the next wave of disruption. GV provides more than just capital; it offers startups access to Google’s unparalleled expertise in engineering, design, and marketing through its “GV Experts” program.

Strategic Alignment: GV’s investments provide Google with intelligence on emerging technologies and market shifts that could impact its long-term strategy.
Active Engagement: The “GV Experts” program offers invaluable operational support, helping startups scale and overcome technical challenges.
Autonomy and Agility: By operating somewhat independently, GV avoids many of the bureaucratic pitfalls that can slow down corporate innovation efforts.

The Result:

GV has been incredibly successful, with a portfolio that includes major companies like Uber, Slack, and Nest (which Google later acquired). These investments provide significant financial returns, but more importantly, they offer Google a strategic vantage point. It allows them to understand and even influence future technological trajectories, keeping the parent company at the forefront of innovation. GV demonstrates how a well-structured CVC can act as a crucial early warning system and growth engine for a tech giant.

Case Study 2: BMW i Ventures – Driving Future Mobility

The Challenge:

The automotive industry is facing unprecedented disruption, driven by trends like electrification, autonomous driving, shared mobility, and connected vehicles. BMW, a legacy automaker, needed to rapidly adapt and innovate beyond its traditional car manufacturing core to secure its position in the future of mobility. Relying solely on internal R&D would be too slow and limited in scope.

The Corporate Venturing Solution:

BMW established BMW i Ventures, a corporate venture capital fund dedicated to investing in early- to mid-stage startups in the mobility, digital, and sustainability sectors. The fund strategically targets companies developing cutting-edge technologies and services that could shape the future of transportation and enhance the overall customer experience. This includes areas like advanced materials, AI for autonomous systems, smart charging solutions, and innovative digital services for car ownership or sharing. BMW i Ventures provides capital, but also offers strategic partnerships, pilot opportunities within BMW’s ecosystem, and valuable market insights.

Strategic Alignment: Every investment is directly tied to BMW’s long-term vision for sustainable, intelligent, and human-centered mobility.
Access to Frontier Tech: The fund provides early access to technologies that might take years or decades to develop internally, accelerating BMW’s innovation timeline.
New Business Models: Investments in areas like shared mobility or digital services help BMW explore and validate entirely new revenue streams beyond traditional car sales.

The Result:

BMW i Ventures has allowed the company to stay ahead of the curve in a rapidly changing industry. It has fostered collaborations with innovative startups, informed BMW’s internal product roadmaps, and positioned the brand as a leader in future mobility solutions. By strategically venturing beyond its core business, BMW has gained agility, expanded its innovation ecosystem, and proactively secured its relevance in the coming decades.

Conclusion: The Future of Innovation is Open

Corporate venturing is more than just a financial vehicle; it is a mindset—an acknowledgment that the most profound innovations often emerge from outside your established walls. It’s a strategic embrace of openness, agility, and the entrepreneurial spirit. For large corporations, it represents a vital pathway to overcome internal inertia, access game-changing technologies, and build a more resilient and future-ready organization.

As leaders, our challenge is to move beyond short-term thinking and embrace a portfolio approach to innovation. By strategically venturing into the unknown, by actively engaging with the disruptors, and by fostering a culture that learns from both successes and failures, we can unlock unprecedented growth and ensure our organizations are not just prepared for the future, but actively shaping it.

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Emotional Connections Drive Customer Loyalty

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Emotional Connections Drive Customer Loyalty

GUEST POST from Shep Hyken

There are many reasons a customer might come back to a business again and again that have nothing to do with loyalty. A repeat customer can come about because of a convenient location, a lower price, a bigger selection and more. But those don’t create loyalty. It just looks as if the customer is loyal.

Actually, you could say that they are loyal—but not to the company. They are loyal to the price, convenient location, etc. The customer who comes back again and again for those types of reasons can deceive you. Not on purpose. It’s their behavior that imitates loyalty. Consider a retail store with repeat customers (not loyal customers), and ask this: If a competitor moves into the neighborhood, has a more convenient location and advertises lower prices, would the customer switch?

If you want your customers to be loyal, you must find a way to create an emotional connection.

Meet Zhecho Dobrev, a principal consultant at Beyond Philosophy and the author of the newly published book, The Big Miss: How Organizations Overlook the Value of Emotions. I interviewed Dobrev for an episode of Amazing Business Radio, and he shared his insights on what drives loyalty.

According to Dobrev, “Emotional connection creates preference over the competition. Customers don’t just come back out of convenience. They see a difference between doing business with your company and other companies.” His research has found that the amount of business a company gets is dependent on its relationships with customers.

The relationship you want with customers is rooted in emotion. A good experience creates a positive memory. Dobrev is a fan of Professor Daniel Kahneman, who says that people don’t choose between experiences. They choose between the memories of their experiences.

Often, memory is based on interactions customers have had with a salesperson, customer support or a process that a company has. Ideally, it’s a good memory. And when the customer comes back a second time and third time and has similar experiences, the memories of those interactions become an owned experience. The customer expects it. They know it’s going to happen, just like last time. That’s where the relationship starts to solidify, with a consistent and predictable experience. It goes to an even higher level when the customer feels valued and appreciated. Ultimately, the brand becomes more important than just a place to stop and do business.

Dobrev surveyed more than 19,000 customers in the U.S. and UK and determined that emotional attachment was the biggest driver of value, being responsible for about 43% of business value. Compare that to a company that promotes product features, which came in second at 20%. “Customers don’t know what they really want,” says Dobrev. “They say they want a product, but what really drives business value is emotional attachment.”

Emotions can start to develop even before the customer chooses to do business with a company or brand. Emotions can be found in a marketing strategy. Consider the automobile manufacturer BMW, which in the 1970s used the slogan The Ultimate Driving Machine — a description of the car — until it switched its focus to the emotion of owning and experiencing the car with the slogan BMW is Joy. While BMW still includes The Ultimate Driving Machine in its descriptors, today’s slogan is Sheer Driving Pleasure. Joachim Blickhäuser, head of corporate and brand identity at the BMW Group, says, “The ‘Sheer Driving Pleasure’ slogan delivers positive emotions and does exactly what a claim should.”

While an emotional connection may help create customer loyalty, you can’t ignore other competitive features. While loyalty makes price less relevant, there is a breaking point. Being easy to do business is also a big factor, so eliminate the friction that will potentially cause customers to run to your competition.

So, here is your assignment. Ask your customers, “Why do you do business with us?” Their reasons will help you define the differences between features and benefits compared to feelings and emotions. Once you have your features and benefits in place, work on creating emotional connections, and your customers will come back for the right reasons—because they love doing business with you.

This article originally appeared on Forbes

Image Credit: Pixabay

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Engaging Users in the Design Process

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Co-Creation for Experience

Engaging Users in the Design Process - Co-Creation for Experience

GUEST POST from Chateau G Pato

In the world of design and innovation, we have long operated under a traditional model. We observe users from a distance, conduct market research, and then retreat to our labs and conference rooms to design a solution that we believe they will love. We call this “customer-centric” design, but it’s a one-way street. As a human-centered change and innovation thought leader, I am here to argue that this model is no longer enough. The future of innovation belongs to those who move beyond designing **for** their users to designing **with** them. This is the power of **co-creation**, a strategic shift that transforms customers from passive recipients of a product into active, invaluable partners in its creation.

Co-creation is the ultimate form of empathy. It’s an open invitation for your most passionate users to contribute their insights, skills, and creativity directly to the design process. This isn’t just about collecting feedback; it’s about treating your customers as equal partners in the journey of innovation. The benefits are profound. By involving the people you serve, you bypass the risk of building something they don’t genuinely need. You uncover unarticulated pain points and desires that a traditional survey could never reveal. And perhaps most importantly, you build a powerful sense of ownership and community. When customers have a hand in creating a product, they don’t just use it; they become an army of loyal advocates, invested in its success and eager to spread the word.

The Co-Creation Framework: A Human-Centered Approach

Successful co-creation is not a random act of crowdsourcing; it is a structured, human-centered process. It requires a clear framework to ensure that the collaboration is meaningful, productive, and respectful. Here are four essential steps:

1. Define the Challenge, Not the Solution: The starting point is crucial. Don’t ask users to validate a product you’ve already built. Instead, present them with a clear, compelling problem to solve. For example, instead of “How do you like our new app?”, ask, “How might we make your daily commute more enjoyable?” This opens the door to a wider range of creative solutions.
2. Build the Right Platform: Co-creation can happen in many forms. It could be a series of in-person workshops, a dedicated online community, a digital platform for ideation and voting, or a private beta program. Choose a platform that is accessible, easy to use, and facilitates collaboration among all participants.
3. Empower the Co-Creator: Treat your users as equal partners. Give them the information they need, and make their role in the process explicit. Whether they are ideating, prototyping, or providing feedback, ensure they understand how their contributions will be used and how they fit into the bigger picture.
4. Close the Loop: This is arguably the most important step. A co-creation initiative is not a one-off event. It requires transparency and a continuous feedback loop. Be sure to show participants what happened to their ideas. Even if an idea wasn’t chosen, explain why and thank them for their contribution. This builds trust and encourages continued participation, turning a single project into a long-term community.

“The best innovations are not born in a lab; they are born in the conversations between creators and the people they are creating for.” — Braden Kelley

Case Study 1: Threadless – Building a Business on Collective Creativity

The Challenge:

In the highly competitive world of apparel, fashion trends are traditionally dictated from the top-down by designers and major retailers. This process is inherently risky and often disconnected from what consumers actually want to wear. A small t-shirt company needed a new model that could consistently produce fresh, relevant designs with minimal risk while building an authentic brand.

The Co-Creation Solution:

Threadless launched a revolutionary business model based entirely on co-creation. The company’s platform is a digital community where artists from around the world submit t-shirt designs. The community then votes on their favorite submissions. Each week, the designs with the highest votes are put into production. The winning artists receive prize money and royalties on their designs. This model is a masterclass in crowdsourced innovation.

Empowered Co-Creators: Threadless gives artists a clear incentive and platform to contribute their creativity. They are not just submitting work; they are participating in a creative community.
Reduced Risk: The voting process acts as powerful market validation. Threadless knows a design is likely to be a commercial success before it ever spends a dollar on production, significantly reducing inventory and design risk.
Built-in Community: The platform fostered a vibrant, global community of artists and fans who felt a deep sense of ownership. This turned a transactional relationship into a collaborative partnership, leading to immense brand loyalty.

The Result:

Threadless became a major success story, proving that a company’s most valuable design team might be its own customers. By co-creating with its community, Threadless not only built a profitable business but also created an authentic, beloved brand known for its originality and its dedication to the collective voice of its creators. The company’s model demonstrates that the best way to predict what consumers want is to simply ask them to create it.

Case Study 2: L’Oréal’s Open Innovation Platform – Co-Creating Science and Beauty

The Challenge:

As a global beauty giant, L’Oréal’s R&D model was powerful but also traditional and at times, slow. The company needed to accelerate its innovation pipeline, especially in cutting-edge fields like green chemistry, artificial intelligence, and new biotech ingredients. The challenge was how to access and integrate external expertise from the world’s most brilliant scientists, researchers, and startups in a way that was agile and efficient.

The Co-Creation Solution:

L’Oréal adopted a strategic open innovation approach, which is a sophisticated form of co-creation. Instead of relying solely on internal labs, the company actively seeks partnerships with independent scientists, researchers, and startups through dedicated platforms and venture capital initiatives. L’Oréal presents specific scientific or technological challenges and invites external experts to co-develop solutions. For example, they might partner with a startup to develop a new sustainable ingredient or collaborate with a university lab to create a new method for personalized skincare.

Defined Challenges: L’Oréal clearly articulates its technological and scientific needs, empowering a global network of experts to contribute.
Empowered Partners: The company treats these external collaborators as true partners, not just vendors. This approach fosters a culture of shared purpose and mutual trust.
Continuous Innovation: This model is not a one-time project; it is a permanent innovation channel that allows the company to continuously learn from and adapt to the rapid advancements in science and technology.

The Result:

By implementing a co-creation strategy on a massive scale, L’Oréal has been able to significantly accelerate its innovation cycle and develop groundbreaking products that would have been impossible to create internally alone. The approach has led to new patents, new product categories, and a more agile business model. This case study demonstrates that co-creation is not limited to consumer-facing products; it is a powerful strategic tool for even the largest and most complex organizations to stay at the forefront of their industries.

Conclusion: The Future of Innovation is Collaborative

The era of closed-door design is over. In a world where customer expectations are higher than ever, the most successful organizations will be those that open their doors and invite their users to the innovation table. Co-creation is not a marketing gimmick; it is a fundamental strategic shift from “customer-centric” to “customer-led.” It is an acknowledgment that your users are not just consumers; they are a wellspring of insight, creativity, and passion.

As leaders, our role is to create the platforms and the culture that enable this collaboration. By treating your users as partners, you will not only build better products and services but also forge a deeper, more resilient connection to the people you serve. The future of innovation is not solitary; it is collaborative, and it is waiting for you to invite the first person in.

Image credit: Pexels

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5 Simple Steps for Launching Game-Changing New Products

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5 Simple Steps for Launching Game-Changing New Products

GUEST POST from Teresa Spangler

There has never been a better time to invent, create, and innovate game-changing products, new business models, and services. In fact, I will be so bold as to say, we must change it dramatically to succeed in the future. You know your team needs to be more creative, they need to collaborate, or many seek more outside influence, but this is counter to your current culture. For years, your company has spent much of its efforts and resources on becoming a lean, mean growth machine.

A few questions you might consider:

Are you creating for the future? How do you know?
Will what you sell today to be relevant tomorrow? Do you know where your customers are headed? How are your customers changing?
Are you paying close attention to the growth trends in your market space? Are there competitors you cannot see lurching behind someone else’s geographic lines?

The start-up world of entrepreneurship is escalating. New things are being developed all over the world. This is good news for our needy economy, but these are the very companies that could come up and bite you where it hurts…right in your future’s revenue pocket.

Inspiring our work teams (and leadership) toward a culture of creativity and idea generation is key to just keeping pace and preparing for the future. But that may not be so easy. I have surveyed and had many conversations and meetings recently with leaders of growth companies. How proud we are of strong EBIDTA (earnings before interest, taxes, depreciation, and amortization). The bottom line is… this is their bottom line… very good profitability. It appears we will all earn our bonuses for managing expenses tightly.

If incentives are based on cost-cutting and expense tightening, there will be very little investment in the future. The addictive need for immediate return is paralyzing these leaders. I am all for fiscal responsibility! But, we need more balance in our plans between cost-saving efficiencies and game-changing strategies to fuel future growth.

“Ideas are great, our company has a lot of them, and we have a full innovation pipeline but there’s not been a lot of success getting these out the door to return on our investments.” One CEO shared with me. “We are not making money, so we’ve limited investments here!” First, let me say as you may already be aware, the world has some very big needs/challenges that need all hands on deck. Savvy entrepreneurs & companies that invest in the future are going to win in solving these problems and most likely to the disruption of latent business models & possibly your business.

First, let’s identify a few of the dramatic trends that may beg for new ways to serve up new ideas:

Boomer Segment and Aging: There is a desperate need for new ways to serve this market! Example: an elderly couple cares for each other in their home for many years but neither is very strong, and both have trouble walking much less driving, and getting around is challenging. They do not have the funds for assisted living facilities. They are, however, a lively couple wanting to do things together. What can home designers, product designers, emergency care facilities, security companies do to support these seniors?

The World Is Getting Older (on average) -Shifts in demographics- this is a big change we will start to feel even more in the coming years. Where will the workforce of the future come from? Training older adults to take on new roles, providing new ways to employee talent, leveraging knowledgeable and experienced talent at any age will take shape. What are you doing today to prepare for this shift? Where can you innovate new services, products, solutions to help companies drive a successful shift.

The need for new ways to grow food, provide clean water, and ensure the safety of these precious resources, is a growing concern. Example: Some regions in the world still have little infrastructure to support their enormous population. The majority of the rural areas have not toilets, little running water, their streams are used for bathing and cleaning laundry and drinking… what can be created to help these rural regions around the world that have these needs. The U.S. in rural regions has similar needs. How can your company innovate to solve problems like these?

Consumer behavior is continuing to shift rapidly: Consider how we buy today which changed dramatically in 2020, what we buy has also changed, and so has what influences us to make a decision. And what about places where consumerism has declined for some regions, yet the birth of consumption is occurring in other regions? Example: Sensors that track us and our health (IoT), Tablets, ipads, iphones, and smart devices have changed our behavior as consumers. When you are in the car waiting for your child to come out of school … are you searching on your phone for new doctor, a home designer, a new car? Think NOT about how you are using these tools today but how these tools will progress and continue changing how we do everything. Another example: shopping for that perfect dress or suit. Take your ideas, drawings, colors, and any thoughts you have on the designs…go shopping and have your perfect outfit designed for you. Hyper customization will continue.

The need for alternative energy sources will only be exasperated by the explosive population growth in regions like Shanghai, Mumbai, Hong Kong, Sao Paulo, and NYC.

Cybersecurity: The challenges are beyond comprehension and the solutions are not enough. With all the brilliant technology and creative talent in your community and network, how could you generate breakout ideas to solve some of our most challenging issues in the world today with cyber threats?’

Push the human race forward… and while some see them as the crazy ones, we see them as genius! — Steve Jobs, Think Different

Global Health Care: we’ve watched the best and the worst first-hand over the last year. There is room for improving how healthcare is delivered, prepping for future pandemic-like events, and innovating new methods of caring for people in rural areas. There are so many challenges which is to say, there are so many opportunities.

Mental Health Supports- THIS IS A STAGGERING Statistic reported by TheHartford: New research finds 70% of employers report mental health challenges among their employees, 52% also report substance misuse or addiction, while 72% say mental health stigma blocks care.

These are big problems, big changes, and even bigger opportunities for entrepreneurs and brands alike to innovate. How might these trends be affecting you? Your customer? Your market?

I agree priorities should be on revenue coming in the door. It is a difficult balancing act with such tightly managed resources and focuses on the bottom line and profitability to add any new initiatives that may be futuristic and top-line focused. Much of our client work is about creating the balance for top-line growth initiatives while also managing bottom-line responsibilities.

How do you set aside resources and break down the barriers to game-changing ideas? And then how do you deal with the litany of barriers that will crop up on the path to any new inventive thing?

Let’s dissect a few of the challenges that keep us from continuous innovation on your way to market leadership. Here are 4 examples of barriers you may face along your inventive future:

Companies are fixated on quick returns… there is this addiction like quality to seeing our investments instantly returning benefit to us. But if we do not invest in the future to grow top line revenues and invest in new products, services that will engage the market of the future (and the future is coming at us faster and faster) we’ll extinct our own companies. Example solution: Use open communities or outside consultants that are experts at innovation and commercialization. You can budget your time, leverage their resources, and budget the funds without defocusing your current team.

Nay-Sayers stop us in our tracks all too often. Embrace the Nay-sayers. They should have their voices heard for their valued input but do not cave in the face of their fears. There are, what I call, negative risks and positive risks. Negative risks are those that are pushed through without planning, insights, trends or customer interactions. They are made in isolation.

We are Positive Risk-Takers– Positive Risk-Taking is when you’ve done homework, customer discussions, you understand the trends, but there are still certainly risks on this unknown path. Example solutions: Create pilot programs, move forward slowly, and know what metrics you need to know this big idea is gaining momentum. Give it enough time to get traction. Big ideas do not happen overnight. They do not happen even in a year or two sometimes depending on the nature of your game changing idea. Withstand the Nay-sayers, and hear them out.

Lack of time, mentorship, resources, and investments! in every client these are issues that persist, if you are growing you will always need more of all of those things. Leveraging our open collaboration methodology can be a great way to learn, manage early costs and keep investments low while you are in discovery, planning and building stages.

Lack of embracing older talent. Somewhere along the way of building our great country, corporate America narrowed our prime working years to ages 23 to 42. The employable world has been treated as this demographic is the only time creative brain power exists. What benefits could you receive by diversification of your talent pool? Example solution: build your own internal game-changing mentor network. I once did an innovation workshop and had 4 people from an AARP chapter office join the group. I was shocked (yes, maybe at the time, I had bought into the whole young creative minds thing too) to learn this group was designing alternative transportation and working with the local energy company to do so. Many of the group were retired from larger companies with great knowledge and experience and were very eager to volunteer mentor or contract themselves out. Leverage brilliance, not age.

No need to go it alone! Bring in experts to show you the way. Maybe you are very experienced. Is this where your valuable time should be spent? Leverage is the name of the game. Commercializing our client’s innovations (getting customers and revenue in the door), Aligning internal teams, and accelerating success is 99% of the work we do at Plazabridge Group. There are great options out there to help you. Use them and increasing your available time on critical priorities.

Five Baby Steps to Kick-start your way Game Changing Innovation

What tips can I provide you to break free some of the more challenging barriers? We must change our thinking, our behavior, our cultures to truly create game changing innovations.

1. Be open to the possibility: Our educational systems educate us to research why things will not work, look for justifications, returns, market needs, corporations are stuck in this cycle of simplistic additions of products and services. Not mind-blowing, turn it all inside out, cool as innovations that excite and delight customers! So many great ideas are killed before they are even shared with 3 people. Case brief: In one of our consulting engagements with large consumer beverage company we heard, of course, under their breath “we’ve lost our coolness.” The project goal was to shift their leaders and their corporate culture (globally) from being risk averse to taking more risks. This is a big challenge in the face of Six Sigma black belts. Every idea was summarily dismissed before the idea could be written fully on the whiteboard. The young emerging leaders would get excited the senior team became paralyzed in fear and why it would not work in this lean operationally efficient system. Challenging everything they knew, they agreed to work on one of the ideas that came out of one of our sessions (this took 4 months). That idea took 3 years to finally reach the market, but it was a true game changer for this company. They captured desired market share goals, built a new sustainable revenue stream, and took back the title as “cool”!

2. Yes AND! A first step to get there may be a simple shift: instead of YES BUT use YES AND! We often get stuck in the vision of the Mt. Everest like mountain climb but without training and dedicated Sherpas to lead the way: nearly impossible to reach the peak! We know the outcome before we’ve even taken one step. Drop this thinking now. It is devastating to any game-changing acts. You must be passionate, diligent, believe in the mission, be focused, and not worried about the ups and the downs and the back ups as that is the ride you will be on till the game is changed. Example: As a mentor to young entrepreneurs, I, too often, the words can’t and don’t. We stop ourselves before even getting a good strong start on our ventures. There are many programs through the universities, through organizations like Take advantage of all the resources you can find. In our larger client companies, we hear similar statements, “my ideas go nowhere”, “we aren’t getting traction to get game-changing technologies out the door”, “we are strapped for resources”, “where’s the ROI on the investments?” and so many other barrier statements that stop us in our tracks.

3. Open up! Whether you “open up” to a closed circle of trusted friends and colleagues or to an open collaborative forum sharing your ideas with others who may have interest can propel ideas forward at speeds sometimes unimaginable! Example: In many of the companies we work with, there is the need for a shift in their culture to a creative and innovation culture and centering it on the customer and b. to encourage more creativity amongst themselves. I will admit this is not a baby step but one step that is critical to the success of innovation. There are many simple ways to shift cultures and. in tandem, drive successful results. Here are a few case studies on some of the work we have done:

Case Study: Digital Transformation and Revenue Growth

Case Study: Digital Transformation Leveraging Core Data Assets

4. Enroll others into your vision over time! Not everyone may be as quick at seeing your idea or vision. Spend time with people one on one. Take time to grow consensus on ideas. We must help them see the way. Rarely, in game changing products or companies, do customers immediately flock to the new thing. Again, we must show them, educate, and encourage people to try new things. Example: Many of our clients are in the game changing business. To help them commercialize their new ideas and technologies we build a process that is slow, methodical, and measurable. By building in milestones and measures, we educate ourselves on what we need to do to bring our customers into buying mode. Simple steps are best to start out with and if you engage your customers for feedback along the way you will learn more about what they need from you to buy.

5. Become a Savvy Money Navigator Vs a Bank! Money will always be the subliminal barrier at every stage of your growth! Take some time to learn where funding exists for ideas inside your company. For the CEO, really consider your future growth and task your teams to look forward! Where will growth come from? Will it be with existing customers? Do you know where their future plans are heading and how you align with their journey forward? Many companies lose sight of their customer’s future growth plans and more times than desired those plans do not include their current partners’ and suppliers’ products. Don’t assume…ASK!

How might we help you drive game-changing growth? Reach out directly to me.

Image credit: Pixabay

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The Power of Psychological Safety

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Building Teams Ready for Anything

The Power of Psychological Safety

GUEST POST from Art Inteligencia

For decades, we’ve defined high-performing teams by their collective talent, their competitive drive, or their relentless focus on execution. We’ve believed that success is a matter of gathering the smartest people in a room and demanding excellence. But as a human-centered change and innovation thought leader, I’ve seen time and again that this model is insufficient for the complexity of our modern world. The most resilient, innovative, and successful teams are not defined by individual brilliance, but by a shared sense of trust and vulnerability. Their secret weapon is a concept known as psychological safety, a foundational element that empowers people to take risks, speak up, and learn from mistakes without fear of judgment or reprisal.

Psychological safety is a shared belief held by members of a team that the team is safe for interpersonal risk-taking. In simple terms, it’s the feeling that you can be yourself, ask a “stupid” question, admit a mistake, or propose a wild idea without being shamed, ridiculed, or penalized. This isn’t a “soft” concept; it’s a hard, strategic capability. In a world where change is the only constant, teams must be able to experiment, give and receive honest feedback, and pivot with agility. None of this is possible in a fear-based environment. The human instinct to self-preserve—to avoid looking incompetent—is a powerful force. Without psychological safety, we self-censor, we withhold critical information, and we stick to the known, a sure-fire path to stagnation and irrelevance. Conversely, when psychological safety is high, a team’s collective intelligence soars, and their capacity for innovation becomes limitless.

Cultivating a Culture of Safety: A Leader’s Blueprint

Building psychological safety is a leader’s most important job. It’s not about being “nice”; it’s about being intentional. Here are four essential practices for creating an environment where your team is ready for anything:

1. Frame the Work as a Learning Problem: In a complex world, there is no single right answer. Frame every challenge not just as a task to be executed, but as a hypothesis to be tested. This reframes failure as a source of valuable data and reframes mistakes as essential steps on the path to a solution.
2. Acknowledge Your Own Fallibility: Leaders must go first. When you admit a mistake, say “I don’t know,” or ask for help, you create a powerful permission structure for your team. This vulnerability signals that it’s okay for them to do the same, breaking down the fear of looking incompetent.
3. Practice Inclusive Inquiry: Instead of simply stating your opinion, ask questions. Actively seek out the opinions of quieter team members. Say things like, “What are we missing?” or “I want to hear from someone who disagrees with me.” This signals that diverse perspectives are not just welcome but essential.
4. Respond Constructively to Failure: When a project fails or a mistake is made, your response is everything. Avoid placing blame. Instead, lead with curiosity. Ask, “What did we learn from this?” and “How can we build a system to prevent this from happening again?” This turns a moment of potential crisis into a learning opportunity.

“Talent gets you on the field, but psychological safety is what allows you to win the game.” — Braden Kelley

Case Study 1: Pixar’s “Braintrust” – A Masterclass in Candor

The Challenge:

The Psychological Safety Solution:

Pixar’s solution was the Braintrust, an exclusive group of the company’s most accomplished directors and storytellers. This wasn’t a formal committee; it was a culture built on psychological safety. The core rules of the Braintrust are simple yet powerful: a director is never obligated to act on the feedback, and the group’s purpose is to help the film succeed, not to assert power. The feedback is always on the work, never the person. This deep, shared belief that everyone is there to help and that no one is judging personal worth allowed for a level of open, candid criticism that is almost unheard of in other creative industries. Directors could present their half-finished, deeply flawed films and receive honest input without fear of professional harm.

The Result:

Case Study 2: Volkswagen’s “Dieselgate” – The Cost of Silence

The Challenge:

In the years leading up to the “Dieselgate” scandal, Volkswagen was a highly centralized, hierarchical organization with a demanding culture of top-down perfection. Leaders set ambitious, often unrealistic, performance targets. The challenge was to meet a new set of strict emissions standards for their diesel vehicles, a goal that their engineering teams knew was physically impossible to achieve without compromising performance.

The Psychological Safety Failure:

In this fear-based environment, with a rigid emphasis on hierarchy and an intolerance for failure, employees were not psychologically safe to speak up. The engineers knew the emissions targets were unattainable, but they feared professional repercussions—demotion, firing, or public shaming—if they admitted failure. Instead of raising the impossible challenge to senior leadership, they chose to develop and install a “defeat device,” a software program designed to cheat on emissions tests. This was a direct, disastrous consequence of a culture that prioritized looking good over being honest and vulnerable.

The Result:

When the deception was discovered, it led to one of the biggest corporate scandals in history. The financial cost was in the tens of billions of dollars, but the damage to the company’s brand and reputation was incalculable. “Dieselgate” serves as a powerful cautionary tale. It shows that when psychological safety is absent, people will choose silence over speaking the truth, and a single, unaddressed problem can grow into a monumental crisis that threatens the very existence of the organization. It’s proof that a lack of psychological safety is not just a cultural problem; it’s a critical strategic risk.

Conclusion: The Ultimate Foundation for Innovation

Psychological safety is not a “nice-to-have.” It is the ultimate foundation for building teams that are resilient, adaptable, and ready for anything. It is the soil in which innovation grows, where creativity flourishes, and where people are empowered to be their best, most authentic selves. As leaders, our most important job is not to provide all the answers, but to create the environment where our teams feel safe enough to find them together.

Image credit: Pexels

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Reset and Reconnect to Increase our Connectedness

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Reset and Reconnect to Increase our Connectedness

GUEST POST from Janet Sernack

In our second blog in the Reconnect and Reset series of three blogs, we stated that now is not the time to panic. Nor is it a time to languish from change fatigue, pain, and emotional lethargy. It is a significant moment in time to focus, rehabilitate, rebuild, repair, regrow and reset to increase our connectedness through linking human touchpoints that increase people-power in the fourth industrial revolution.

In the current environment, where chaos and order are constantly polarizing, it’s crucial to touch people with empathy, reignite their social skills, and enable them to become healthily self-compassionate and more self-caring to:

Patiently support, lead, manage, mentor, and coach them towards finding their own balance to flow with mitigating the challenges of the fourth industrial revolution.
Take advantage of new technologies, networks, and ecosystems to re-engage and collaborate with others and with civil society in positive ways that contribute to the whole.
Do the good work that creates a more compelling, inclusive, resilient, and sustainable future, that serves the common good.

The Landscape Has Changed and So Have the Solutions

As the fourth industrial revolution continues to implode, we need to zoom out and consider the bigger picture. Where a recent Harvard Review article What Will Management Look Like in the Next 100 Years?” states that we are entering an era, which is fundamentally transforming the way we operate. Which is defined by the disruptive growth in blockchain technology, robotics, artificial intelligence, high-performance computing, and other core digital capabilities.

All of which, in some way, is dependent on linking the key human touchpoints that increase people’s power and our connectedness.

An era of empathy

In the same article, management scholar Rita Gunther McGrath argued that management practices based on command and control, and expertise would ultimately make way for empathy.

Where work is centred around value creation conducted through networks and collaboration, that rely on increasing the connectedness between machines and humans rather than through rigid structures and relationships to thrive through increasing people-power in the fourth industrial revolution.

Capable of better

The Qualtrics 2022 Employee Experience Trends Report also states that the landscape has changed. Where people are choosing to work flexibly, to work in the places that work best for them, and to take time for their own well-being, families, and friends.

Where people are demanding change because they care, about their leaders and their organizations, and want to be capable of developing better ideas; better innovations; and delivering better performances.

The report outlines the four things your people need you to know:

There will be an exodus of leaders – and women will be the first out the door.
People will demand better physical and digital workspaces.
The lack of progress in diversity, inclusion, and belonging won’t be accepted.

People don’t want to become irrelevant, nor do they want their managers, leaders, and organizations to become irrelevant. People know that they can’t, and won’t go back to the old ways of doing things. People also know that they are already living in the new normal and that they need to start working there, too and to do that, we need to increase our connectedness.

Which is especially important for building people’s power and mitigating the challenges emerging in the fourth industrial revolution.

A transformative moment for employees and employers

Businessolver’s Eighth Annual Report on the State of Workplace Empathy describes how the pandemic has impacted on employees’ personal lives, the labor market, and the economy, and states that “we are living through a renegotiation of the social contract between employees and employers”.

Their data shows that amid the return to the office, fewer employees view their organizations as empathetic, and that workplace empathy has clear implications for employee well-being, talent retention, business results, and increases people-power:

About 70% of employees and HR professionals believe that empathetic organizations drive higher employee motivation.
While 94% of employees value flexible work hours as empathetic, the option is only offered in 38% of organizations.
92% of CEOs say their response to returning to in-person work is satisfactory, compared to 78% of employees.
82% of employees say their managers are empathetic, compared to 69% who say the same about their organization’s chief executive.

Yet, there seems to be a true lack of understanding, especially in the corporate sector, of what it means to be empathetic, and a shortage of time and energy to develop the mindsets, behaviors, and skills to practice it and make it a habit.

It is also a fundamental way of being to increase our connectedness and building peoples-power.

Make a Fundamental Choice to Increase our Connectedness

Even though each person is a distinct physical being, we are all connected to each other and to nature, not only through our language but also by having a deeper sense of being.

Human connectedness is a powerful human need that occurs when an individual is aware and actively engaged with another person, activity, object or environment, group, team, organization, or natural environment.

It results in a sense of well-being.

The concept is applied in psychology as a sensation or perception where a person does not operate as a single entity – we are all formed together to make another, individual unit, which is often described as wholeness.

Which is especially important for our well-being and people power in the face of the challenges of the fourth industrial revolution.

Strategies for Developing Quality Connections

Be grounded, mindful and conscious

Being grounded and mindful enables people to become fully present to both themselves and to others. It is a generous gift to unconditionally bestow on others. Especially at this moment in time, where the pandemic-induced social isolation, has caused many people to become unconsciously and unintentionally self-absorbed.

There is an opening to become aware of, and to cultivate our attending and observing skillsets, to sense and see the signals people are sending, at the moment they are sending them. To help people identify the source of their issues to re-establish a sense of influence and control that reduces their autonomic nervous system reactions and help them restore their calmness.

This is the basis to increase our connectedness, by attuning and becoming empathetic as to what thoughts and feelings lay behind their behaviours and actions, with detachment, allowing and acceptance.

Be open-hearted and open-minded

Being curious about what others are feeling and thinking, without evaluating, judging, and opposing what they are saying. By knowing how to listen deeply for openings and doorways that allow possibilities and opportunities to emerge, to generate great questions that clarify and confirm what is being both said and unsaid.

To support people by creating a safe and collective holding space, that reduces their automatic unconscious defensive responses. To defuse situations by being empathic and humble and increase our connectedness by asking how you might help or support them, and gaining their permission and trust to do so.

Increase our connectedness through being vulnerable in offering options so they make the best choice for themselves, to reduce their dependence, help them identify and activate their circles of influence and control and sustain their autonomy.

Help people regenerate

Now is the moment in time to focus on building workforce capabilities and shifting mindsets for generating a successful culture or digital transformation initiative by harnessing, igniting, and mobilizing people’s motivation and collective intelligence and building people power.

It is crucial to acknowledge and leverage the impact of technology through increasing people-power by developing new mindsets, behaviors, skills, and new roles, which are already emerging as fast as other roles change.

Be willing to invest in the deep learning challenges that build people’s readiness and receptivity to change, so they can embrace rather than resist it, and be willing to unlearn, and relearn, differently, by collaborating with other people, leaders, teams, and organizations across the world.

Ultimately, it all depends on being daring and willing to increase our connectedness, through adapting, innovating, and collectively co-creating strategies, systems, structures that serve the common good, and contribute to the well-being of people, deliver profits and nurture a sustainable planet.

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, a collaborative, intimate, and deeply personalized innovation coaching and learning program, supported by a global group of peers over 9-weeks, starting Tuesday, February 7, 2023.

It is a blended and transformational change and learning program that will give you a deep understanding of the language, principles, and applications of an ecosystem focus, human-centric approach, and emergent structure (Theory U) to innovation, and increase people-power, upskill people and teams and develop their future fitness, within your unique context. Find out more about our products and tools.

This is the final in a series of three blogs on the theme of reconnecting and resetting, to create, invent and innovate in an increasingly chaotic world.

You can also check out the recording of our 45-minute masterclass, to discover new ways of re-connecting through the complexity and chaos of dis-connection to create, invent and innovate in the future! Find out more.

Image credit: Pixabay

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