Asking the Wrong Questions Gets You the Wrong Answers

Asking the Wrong Questions Gets You the Wrong Answers

GUEST POST from Greg Satell

“Greed… is good,” declared Gordon Gekko, the legendary character from the 80s hit film Wall Street. “Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.”

The line resonated because it answered a question that people cared deeply about at the time, “how can we become more efficient?” In the face of heightened competition from Japan’s doctrine of total quality management, American firms appeared too sclerotic to compete. Corporate raiders preaching shareholder capitalism offered an easy answer.

The results are clear. Since then, the stock market has crashed a number of times, the last one resulting in a Great Recession. Productivity growth has been depressed for half a century. The incidence of extreme weather events and pandemics like coronavirus is on the rise. Clearly, we’ve been getting the wrong answers. It’s time we started asking different questions.

How Can We Become More Resilient?

We’ve grown accustomed to a reasonably stable world in which disasters were relatively rare. In the 19th century, wars, epidemics and financial panics were relatively common. The 1930s and 40s saw a global depression and a world war that claimed 75 million lives. By 1945, almost all of Europe and large parts of Asia lay in ruins.

Yet out of the ashes, we built a new, more resilient world. Institutions like the United Nations, World Bank and the International Monetary Fund created platforms to solve problems on a global scale. Bretton Woods established a global financial system and the Marshall Plan rebuilt Europe. An emerging welfare state permanently altered the role of the public sector in society.

That began to change in the Go-Go 80s when we shifted our focus from resilience to output maximization. As economists developed exciting new financial engineering techniques, business and governments increased their tolerance for risk and loaded up on debt. Staid chief executives gave way to corporate raiders and tech moguls.

The result is that we’ve become more vulnerable to shocks. In addition to worrying levels of financial debt, we also have considerable environmental debt and infrastructure debt, even as threats from terrorism, cyberattacks, extreme weather events and, of course, pandemics increase. We desperately need to figure out how to increase our resilience.

Clearly, a capitalism that focuses solely on financial capital and ignores other forms, such as social capital, human capital, natural capital, etc., is far too narrowly construed. We need to get better at integrating Environmental, Social and Corporate Governance (ESG) metrics into how we evaluate organizational performance.

What is the Relationship Between Cause and Effect?

Even a young child understands that if she touches a hot stove, her burn was caused by the stove and that it is no coincidence that both happened at the same time. We would expect her to run to her mother crying, “the stove burnt my hand!,” not “the pain in my hand coincided with touching the hot stove.”

Yet our algorithms and equations have no way of making basic distinctions between correlation and causality, which makes it difficult to design interventions. For example, if you find a strong correlation between temperature readings and ice cream sales, you might conclude that moving the thermometer close to a heater will improve ice cream sales.

Now I admit that sounds a bit silly, but similar mistakes happen all the time. For example, if a correlation is found between certain zip codes, crime rates and recidivism, we will tend to design our systems to punish people from poor neighborhoods more harshly. In fact, there is abundant evidence that mistakes such as these are common.

Debates about correlation and causation may seem academic, but they have real world impacts. If we could incorporate causation into our machine learning algorithms, we would greatly increase the speed and likelihood of finding a cure to Covid-19. At this point, there is a nascent effort to build intelligent systems based on causal principles, but there haven’t been any practical breakthroughs yet.

What is the Right Thing to Do?

In modern times, acting ethically has been seen as a relatively simple matter. You try to be kind to people and don’t lie, cheat or steal. In a moral classical sense, however, the study of ethics has been less about adhering to moral principles and more about trying to understand what the right thing to do is when there isn’t any cut-and-dried answer.

Most important decisions, like those that involve Covid-19 policy, have tradeoffs. It’s not hard to get people to agree that we should do everything possible to save as many lives as we can. Yet it is also true that we need to think about people’s ability to earn a living as well. So coming up with a strategy that saves lives and minimizes economic impact is far from easy, especially when easing restrictions too early could lead to even greater economic and human costs.

As our technology becomes more powerful, more difficult questions emerge. Can we teach an algorithm to understand right from wrong? Who is accountable for decisions machines make? To what extent should artificial intelligence systems be auditable? Or consider the emerging field of synthetic biology. Clearly, it’s giving us a leg up in fighting the coronavirus, but too what extent is it okay to alter the genetic code?

Part of the reason we were so unprepared for the Covid-19 pandemic is that most people were completely unaware of how dire the danger was. Clearly, we need a more public dialogue about the technologies we are building to achieve some kind of consensus of what the risks are and what we as a society are willing to accept. As we have seen, the consequences, financial and otherwise, can be catastrophic. We no longer have the luxury of acting cavalierly.

What Will It Take to Make Change Happen?

It should be obvious by now that things need to change. What’s not so obvious is how to bring change about. Theoretically, in a democracy you drive change forward by convincing a majority of your fellow citizens that it’s a good idea. However, research suggests otherwise. In fact, one study found that “when a majority—even a very large majority—of the public favors change, it is not likely to get what it wants.”

We see this play out in the real world as well. It has become common for those calling for change to organize a “March on Washington.” They make some noise for a while and then sputter out. In 2011, the Occupy Movement organized protests in over 950 cities across 62 countries, with little or nothing to show for it.

Yet it’s also misleading to suggest that shadowy special interests dictate what happens. While it is true that there are a number of rich and powerful forces, ranging from the Koch Brothers and George Soros to the NRA and Planned Parenthood, these forces are often in opposition to each other. They are better at blocking change than bringing it about.

As I explain in Cascades, change is not top-down or bottom-up but moves side-to-side. You need to mobilize people to influence institutions that have the power to affect change. Or, as Martin Luther King Jr’s biographer put it, “A social movement that only moves people is merely a revolt. A movement that changes both people and institutions is a revolution.”

We’re where we’re at today because people convinced institutions that maximizing output was more important than stability and resilience, that correlation was more important than causation and that technology was ethically neutral. We know now that none of these things are true. If we are to come up with better answers, we need to start asking different questions.

— Article courtesy of the Digital Tonto blog
— Image credit: Business Insider

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Holistic Metrics for Customer Experience Innovation

Beyond NPS

Holistic Metrics for Customer Experience Innovation

GUEST POST from Art Inteligencia

In the world of customer experience (CX), the Net Promoter Score (NPS) has become the gold standard. With its simple, elegant question — “How likely are you to recommend us to a friend or colleague?” — it has given leaders a seemingly clear and powerful metric to track customer loyalty. And while NPS has served its purpose, it has, in my opinion, become a crutch. As a human-centered change and innovation thought leader, I am here to argue that chasing a single score is a dangerous oversimplification. It tells you what is happening, but it provides almost no insight into why or how to fix it. The future of customer experience innovation belongs to organizations that move beyond a single number and embrace a holistic, multi-dimensional metric framework that captures the full, rich tapestry of the customer journey.

The problem with a metric like NPS is that it is a lagging indicator. It measures the outcome of an experience, but it doesn’t diagnose the cause. It’s like a doctor taking your temperature and knowing you have a fever, but having no idea if the cause is a minor cold or a serious infection. This singular focus can lead to a host of negative consequences: a lack of actionable insight, a disconnection from real customer behavior, and a dangerous internal obsession with “gaming the number” at the expense of genuine customer value. To truly innovate the customer experience, we must stop chasing a score and start understanding the human story behind it. We need to measure not just what customers say, but what they do and how they feel.

Building a Holistic CX Metric Framework: The Three Dimensions

A more effective approach to measuring customer experience involves a framework that looks at three distinct, yet interconnected, dimensions. These are your essential innovation levers:

  • 1. Behavioral Metrics (The “What”): These are the objective data points that show what your customers are actually doing. Metrics like repeat purchase rate, average session time, feature adoption, time to resolution for a support ticket, or product usage frequency provide hard, undeniable facts about customer engagement. These tell you if your product or service is truly creating value.
  • 2. Perceptual Metrics (The “How They Think”): This is where traditional scores can be useful, but in a more nuanced way. Metrics like Customer Effort Score (CES) — “How much effort did you have to put in to get your issue resolved?” — or Customer Satisfaction (CSAT) on a specific interaction are incredibly powerful. They tell you if the experience was easy, simple, and satisfying.
  • 3. Emotional Metrics (The “How They Feel”): This is the most critical and often overlooked dimension. It goes beyond a simple number to capture the emotional state of the customer. Use sentiment analysis on open-ended survey responses, call center transcripts, or social media comments. Qualitative feedback, such as an interview where a customer shares a story of a “wow” moment or a frustrating interaction, provides the color and context that no score ever could.

In the pursuit of holistic experience management, many of my clients are turning to strategic partners to help them build the necessary infrastructure. A great example of this is the work being done by companies like HCLTech, which helps clients implement Experience Management Offices (XMOs). These are not just new departments; they are a centralized command center for an organization’s entire experience ecosystem. By creating a dedicated XMO, companies can move beyond siloed efforts and begin to measure and manage experiences for their customers, partners, and employees as a unified whole. This includes the deployment of Experience Level Measures (XLMs), a set of sophisticated metrics that go far beyond a simple NPS score. XLMs capture the full journey, measuring everything from emotional sentiment and perceived effort to behavioral data and digital engagement. It’s a fundamental shift from a reactive, score-based approach to a proactive, human-centered one, ensuring that every touchpoint is optimized for a truly superior experience.

“The best metric is not a score; it’s a story. And a holistic framework gives you the chapters, the characters, and the plot points you need to innovate.”


Case Study 1: Zappos and the Obsession with “Wow”

The Challenge:

In the early 2000s, Zappos faced the monumental challenge of building a viable e-commerce business for shoes, a category that many believed would never succeed online due to the need for a physical try-on. The challenge was not just to sell shoes but to create a customer experience so exceptional that it would overcome the inherent friction of online retail and build a brand on trust and loyalty.

The Holistic Metrics Response:

Zappos’ innovation was not just in their business model, but in their metric framework. While they tracked revenue, they were obsessed with delivering “wow” moments. They didn’t just measure Customer Satisfaction; they actively encouraged employees to spend a minimum of an hour on a single customer service call to build a deep, human connection. They measured the number of free shipping upgrades to delight customers. The company was willing to spend money on a customer call or shipping because they understood the immense, long-term value of an emotional connection. Their core metric wasn’t NPS; it was the number of times they could surprise and delight a customer. Their behavioral metric was the high rate of repeat purchases, which they knew was a direct result of the positive emotions they fostered.

The Result:

Zappos became famous for its customer service. The emotional and behavioral metrics they prioritized directly led to high customer lifetime value and an army of loyal brand advocates. This focus on the holistic experience was their primary innovation, and it created a level of brand love that was almost impossible for competitors to replicate. The lesson: by measuring the moments that matter, you can build a more resilient and beloved business.


Case Study 2: HubSpot’s Proactive Customer Health Score

The Challenge:

In the world of B2B SaaS, customer churn is a constant threat. Historically, companies would rely on a lagging indicator — cancellation — to know when a customer was at risk. The challenge for HubSpot, a leader in marketing and sales software, was to move from a reactive posture to a proactive one. They wanted to know a customer was unhappy or disengaged long before they decided to leave.

The Holistic Metrics Response:

HubSpot developed a “Customer Health Score” as their primary innovation metric. This wasn’t a simple survey result; it was a holistic metric composed of three key dimensions:

  1. Behavioral: How often were they logging in? Were they adopting and using the key features of the software? Was their team size expanding or contracting?
  2. Perceptual: What was their satisfaction with the support team?
  3. Emotional: What was the sentiment from a recent check-in call with their account manager?

By combining these dimensions, HubSpot could see a comprehensive view of a customer’s health. For example, a customer who was logging in less frequently and had a recent low satisfaction score would be flagged as at-risk, even if they hadn’t expressed a desire to leave. This gave the team a chance to intervene and innovate the experience — by offering more training, providing personalized support, or addressing a specific pain point — before it was too late.

The Result:

HubSpot’s proactive, holistic approach to customer health significantly reduced churn and increased customer lifetime value. By moving beyond a single metric like NPS and instead focusing on the full story of customer behavior, perception, and emotion, they were able to build a more resilient customer base and a product that continuously evolved to meet customer needs. This case study proves that a holistic metric framework is not just a tool for measurement but a powerful engine for continuous innovation.


Conclusion: The Future of Experience is Human

A single score, no matter how elegant, is an oversimplification of the complex human experience. It is a tool for the passive manager, not the human-centered innovator. The most successful organizations of the future will be those that have the courage to move beyond the comfort of a single number and embrace the messy, beautiful complexity of their customers’ lives. By building a holistic metric framework that measures what people do, how they think, and how they feel, we can move from simply managing customer satisfaction to truly innovating the human experience.

The time has come to stop chasing a number and start listening to the human story. The next great innovation is not hiding in a spreadsheet; it’s waiting for you to find it in the heart of your customer’s journey.

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.

Image credit: Unsplash

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Innovation and Transformation Advisory and Connection Opportunity

Innovation and Transformation Advisory and Connection Opportunity

Braden Kelley has been focusing on human-centered change and innovation for more than twenty years, bringing in elements of design thinking, customer experience, employee experience and digital transformation as needed.

On November 18, 2022 our founder will be in New York City (Midtown Manhattan) and available to connect for any of the following purposes:

  • Private keynote or workshop for your organization
  • Certification session on the Change Planning Toolkit™ and/or FutureHacking™ sets of tools for your team
  • Featured keynote speaker or workshop for a sales event or conference
  • Advisory session to provide input on a specific innovation project or your overall innovation or transformation program
  • Audio or video podcast appearance
  • Grab a coffee or a meal — to connect or reconnect
  • Or, if you think Braden should interview you on camera to join the video interviews he’s done with luminaries like Dean Kamen, Seth Godin, Dan Pink, Roger Martin, Kevin Roberts, and most recently – PepsiCo’s Chief Design Officer Mauro Porcini – Braden will bring his video camera!

If you work in Manhattan or are willing to travel in from elsewhere in the greater New York City metropolitan area (or the world) and are looking to increase the innovation or transformation capabilities of your organization or to de-risk an innovation project by getting an outside perspective, or just to connect, contact Braden to book time on November 18, 2022.

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The Triple Bottom Line Framework

The Triple Bottom Line Framework

GUEST POST from Dainora Jociute

Money, money, money. It wasn’t so long ago that it was always sunny in the rich man’s world. But today, things just aren’t that easy, and talking about money isn’t enough.

Businesses cannot thrive and survive in a competitive environment with only one bottom line – profit.

United Nations Global Compact report points out that such issues as poverty, an uneducated workforce, and resource scarcity will, and already is, causing issues for business growth. In addition, both investors and potential talents are looking deeper than just the company’s financial success before they commit. So, next to Profit, business’s effect on People and the Planet are just as crucial measurement indicators.

“Poverty, conflict, an uneducated workforce, and resource scarcity for example, are also strategic issues for business success and viability.”
– UN Global Compact

And what do you get once you combine all three? Planet, People, and Profit are often referred to as the three pillars of sustainability. However, for a business to define sustainability, to have clear and reachable goals, and in return to have a fitting strategy to reach those goals can be challenging.

This is where the need and benefits of the triple bottom line framework become most evident.

What is the Triple Bottom Line Framework?

The term triple bottom line (TBL) was coined by John Elkington, corporate environmentalist, and author back in 1994. It isn’t exactly a new concept and we had plenty of time to see it being tried on by different companies like Patagonia, Unilever, Novo Nordisk and so many more. It is evident that the triple bottom line approach works.

So, what exactly is TBL?

Many like to argue that it is just another accounting tool. Yet in Elkington’s own words, it is a sustainability framework that examines an organization’s social, environmental, and economic impact. It measures a business’s environmental efforts (“planet account”), social well-being (“people account”), and a fair economy. It can be implemented by a business, a non-profit organization, or a governmental institution. It is flexible and adaptable.

Decades before the triple bottom line, the dominant belief was that the only responsibility a business has is to generate profit. It was set in place by economist Milton Friedman and his shareholder theory. With TBL, Elkington challenged the status quo by proposing accountability to all stakeholders and not just shareholders.

In addition to helping with planning sustainable growth, the triple bottom line can act as a reporting tool, thus, it focuses on long-term results and not just one-off campaigns to gain some publicity – can an organization sustain a just economy, environmental resources, and human capital?

Once we shift our attention from quarterly reports to a span of multiple years,

sustainability is no longer just a “to-do” list, but an opportunity that will rejuvenate business in an economy that does not exploit natural resources and social systems.

Triple Bottom Line 3 Areas

The Three Pillars of Sustainability

The triple bottom line goes hand in hand with the 1987’s Brundtland Report and the three key areas of development established by it: environmental conservation (Planet), economic development (Profit), and social sustainability (People).

Yet the definition of sustainability is a little bit more complex than that.

It is natural, that once you think of sustainability, your mind might wander to emissions, deforestation, climate change, and other related issues. For the longest, environmental changes have been the most reported and the most talked about topic. And for a good reason. The environmental pillar or Planet is considered to be the most important component of sustainability as it contains the social and economic systems within it.

But just like there wouldn’t be people without a planet, there wouldn’t be a business without people, and there wouldn’t be prosperity without business. All three areas are tightly interconnected and initiatives to address one often overlap with the other area, and naturally, when everything is so tightly knit, trade-offs are inevitable.

Sometimes decisions must be made to accommodate people at the cost of the environment OR decisions must be made to solve one environmental issue at the cost of another. A good example here would be an effort to reduce the consumption of single-use plastic bags by offering paper bags instead. Paper bags are easier to recycle and even if they do end up in a landfill, the lifespan of paper is drastically shorter than plastics. However, paper bag production is resource-heavy, consuming “four times more energy than plastic bags”.

Trade-offs make it impossible to talk about sustainability without considering all the pillars equally. Implementing the triple bottom line helps a business to form a holistic view of it.

Sustainability strives for:

  • Viable environmental-economic impact: business is executed with the environment and resources in mind, when possible, looking for green solutions or giving back, i.e., reforestation work.
    Trade-off: green business solutions can be intrusive and negatively affect private property (i.e., wind turbines in neighboring lands).
  • Bearable socio-environmental impact: education and awareness allow people to make environmentally conscious decisions, curb consumption and develop healthy habits that directly impact the environment.
    Trade-off: minimal consumption and complete protection of the land stalls economic growth.
  • Equitable socio-economic impact: people have an opportunity to work and earn a fair wage, and business strives to increase the general welfare of the people and increase the standard of living. This generates economic opportunity for both businesses and individuals. Corporate taxes also play a crucial role here – it is thanks to taxes that an organization contributes to supporting various societal programs.
    Trade-off: new business ventures can create more jobs but increase consumption of nonrenewable materials.

Planet

Planet bottom line focuses on an organization’s environmental impact, both positive and negative. Sustainable innovation (or on the environmental scale – eco-innovation), helps an organization to place its focus on the environment, by improving its production, manufacturing, marketing, and also all the in-house functions.

Impact on the planet can be created by such efforts as choosing natural and/or locally sourced materials, upcycling waste, using recyclable components, reducing unnecessary travel time, or saving energy usage.

Positive environmental impact can seem grandiose and nearly impossible to achieve. Not every organization is equally equipped to take drastic measures and pursue such efforts as reforestation, ocean clean-up, or full refurbishment of manufacturing facilities. Thus, while many regulations and recommendations exist, there is no one-size-fits-all approach to sustainability. Reporting and measurement really depend on such variables as the organization’s industry, location, size, and financial capabilities.

In addition, pursuing this bottom line can put the business in limbo, forcing it to decide between faster or more sustainable goods delivery; lower-costing or ethically sourced materials, and so on. These and similar initiatives can seem costly and counterproductive to what a business should be doing – generating profit. Yet like with most things in life, sustainability is not just black or white and it would not be a prevailing topic if there wasn’t true profit to be gained.

Benefits of The Planet Bottom Line

Besides the obvious emotional benefits of saving the earth, just feeling good while doing good, and complying with regulations there are practical reasons why you should pursue Planet bottom line:

  1. Satisfying consumer demand: GreenPrint’s 2022 Business of Sustainability Index indicates that demand for sustainable services and products is growing with 69% of respondents saying that “a product’s environmental friendliness is important to their purchasing decision” and 78% agreeing that they are interested in buying from environmentally friendly businesses.
  2. New business opportunities: a shift towards net zero is creating demand for new green solutions. A recent report by McKinsey indicates that reaching net zero by 2050 requires “investments amount to $9.2 trillion per year, of which $6.5 trillion annually would go into low-emissions assets and enabling infrastructure”.
  3. Cost reduction: in another report McKinsey notes that environmentally focused initiatives can “improve operating profits by up to 60%”, by reducing unnecessary waste as well as the usage of water or raw materials, that due to growing scarcity, are becoming more and more expensive.
  4. Improved brand image: knowing that consumers are seeking environmentally friendly products and services, it makes sense to invest in and report on sustainability initiatives. It improves the brand’s image which can lead to increased sales. In addition, nowadays, stakeholders can easily hold an organization accountable for action or inaction, thanks to the speed at which information spreads on social media. Even the smallest misstep by a brand can be rapidly broadcast to millions, causing damage, and leading to lost revenue.
  5. Minimizing regulatory risks: Staying within safe lines of regulations keeps your organization from fines and penalties. Plus, it’s typically easier and less expensive to take such measures proactively, than it is to do so when your hand is forced.
  6. Competitive edge: by excelling at and advocating for an environmental cause, an organization can put pressure on its competitors and use the achievement as a competitive advantage.

Initiatives to Consider

As mentioned earlier, pursuing The Planet bottom line does not necessarily mean making big and drastic changes. Environmentally positive impact-creating initiatives that you can consider are:

  • Recycling opportunity in-house and limited use of materials (i.e., unnecessary printing).
  • Reducing travel, remote work opportunities, and/or public transportation benefits.
  • Partnerships with green businesses and buying locally manufactured goods.
  • Optimizing and reducing energy consumption.
  • Seasonal company-wide green initiatives (i.e., day to collect trash or volunteer).
  • Becoming an ambassador of an environmental cause and advocating for it.
  • Creating an option for customers and employees to donate instead of receiving material gifts.
  • Workshops and training to educate and bring awareness on environmental issues and how the organization can positively impact it.
  • Find innovative ways to be more effective or efficient in your operations by involving employees.

The bigger picture will always be comprised of smaller bits and pieces and while the above-mentioned initiatives might seem small, put together they can make an impact. That’s why giving your employees a voice and engaging the whole organization is so important. While it might sound like a big and complex feat, right tools, such as Viima can simplify the process allowing you to run idea challenges on sustainable innovation and development topics.

Reporting

Now, while environmental initiatives are important on many different levels, from a business point of view, they should contribute to profit generation. Thus, once your Planet bottom line initiatives are in place and running, it is crucial to report on them either on your website, or in your annual business or sustainability report.

The Non-Financial Reporting Directive (NFRD) came into effect back in 2018 requiring public interest companies with more than 500 employees to report on how they are dealing with sustainability matters. In 2024 we will see an additional directive on Corporate Sustainability Reporting which will apply to large companies that meet 2 of the following 3 criteria: more than 250 employees; more than €40 million net turnover; more than €20 million on the statement of financial position.

But reporting should be considered by small organizations too as talking about your achievements beyond the mandatory reporting will positively affect your brand image, it will increase transparency, and improve your reputation.

Reporting and measurement of positive impact can be quite difficult, especially if it is a voluntary initiative and is not based on any regulation-implied requirements. Below is a list of KPIs to consider:

  • Information on electricity consumption.
  • Information on fossil fuel consumption.
  • Information on waste management.
  • Change in land use/land cover.
  • Reduction in greenhouse gas emission.
  • Amount of waste generated and, when relevant – amount recycled.
  • Amount of ethically sourced materials.
  • Information on volunteering or charitable work done.
  • Information on new local, sustainable partnerships.

People and the Triple Bottom Line Pexels

People

People of the triple bottom line encompasses all the people included in or affected by a business.

It goes far beyond just the small circle of shareholders. This category includes (but is not limited to) employees, suppliers, wholesalers, customers, local or global communities within which the business operates, and future generations. Some people like to emphasize the future generations by separating it into the fourth sphere and adjusting the framework’s name to quadruple the bottom line. Yet in J. Elkington’s views, the future generations are simply an inseparable part of society, and it fits just perfectly in the People category.

There are certain aspects of this bottom line that might be regulated by local or regional governing bodies. For example, local labor law might indicate a specific number of working hours per week, how long lunch breaks your employees are eligible to take or what kind of health insurance the company must provide. However, as with all things sustainability, social responsibility extends beyond the bare minimum – it is a business’ voluntary and proactive way of recognizing its impacts on stakeholders.

The People aspect is an organization’s social impact or social responsibility. And as earlier cited UN Global Compact states, “social responsibility should be a critical part of any business because it affects the quality of a business relationship with stakeholders”.

Benefits of The People Bottom Line

Social initiatives might not be seen as profitable in the short run, but on a bigger scale, doing what is right and doing good positively affects the company’s standing amongst its competitors. For example, such initiatives can positively affect the following:

  1. Employee retention: Companies that invest in their employees’ satisfaction end up saving resources in the longer run. Time and money spent searching, hiring, and training employees can be invested in different opportunities. In addition, people that want to stick around in a company indicate good organizational health and improve brand image.
  2. Attraction of top talents: More and more routine work is being automated, and value is starting to be increasingly created by fewer people of higher talent creating systems, processes, and technology (=innovations) that drive value. Thus, attracting these top talents is increasingly important, but more and more of these people are these days motivated by factors such as the purpose and mission of the organization beyond just compensation, career growth, etc. more traditional factors.
  3. Customer loyalty: Companies willing to walk that extra mile, give to societies or contribute to positive impact will reap the benefits of a better brand image, and in line with their customers’ social values they will naturally have a chance to retain old and attract new customers.
  4. Raising capital: Socially responsible investing is constantly growing and the opportunity to attract investors depends on the organization’s sustainability achievements, the social aspect and how your organization treats people are always on the list of things to be evaluated.
  5. Avoiding risk: Strong commitment to social initiatives will eliminate work-disrupting and reputation-damaging risks. Any mistreatment of an employee or other community member can cause a severe backlash that will affect the organization’s profitability. In addition, the business’s focus on social responsibility in return creates supply chain security.
  6. Expanding the market: If most people can’t afford to buy your services, the size of your market dramatically increases if you are able to a) lower the prices of your products by decreasing costs, and/or b) by helping improve the income of said people. Combining both can be a powerful way to grow the business and create a more positive impact all around you.
  7. Source for innovation: As mentioned in our earlier article social issues need to be addressed and this in return can create business opportunities – “more than 80% of economic growth comes from innovation and application of new knowledge.” People-centric innovation (social innovation) enables the business to tap into that growth and reap benefits.

Initiatives to Consider

There are a lot of organizations that go far beyond the basic in-house social needs and are willing (and are financially capable) to give back to communities with charity work, donations, education grants, and various volunteering and community engagement initiatives.

However, not every company is capable of running such initiatives. Smaller-scale improvements like supporting your employees in setting up home offices with recycled or new equipment can be a great morale boost. In return, it creates comfort for people to work from home, reducing time spent commuting and/or using cars, leaning toward the Planet bottom line. With sustainability, every small effort counts.

  • Paid internships for students.
  • Organizing educational projects for externals (i.e., coding academy for students, job searching training).
  • Skill training and learning opportunities for employees.
  • Internal anti-racist training.
  • Employee surveys or feedback to keep everyone in the loop.
  • Salary transparency.
  • Employee stock plan.
  • Volunteering work within the nearest communities.

Reporting

Topics to report on and how your organization’s initiatives affected them can be:

  • Demographics of your employees and partners (i.e., working with small or minority-owned businesses).
  • Vacation days collected and used to see whether employees are rested and not overworked.
  • The average difference between wages and finances needed for minimum living standards in the area.
  • Average commuting time.
  • Average employee benefits.
  • Information on diversity of employees.
  • Job safety KPIs (i.e., reported incidents, corrective actions taken).
  • The number of new jobs created.
  • Hours spent on employee or external communities’ training.
  • Information on second-tier suppliers (i.e., where and how your first-tier suppliers are sourcing materials).

Dubai Skyline Unsplash

Profit

Profit by default seems to be the most analyzed and the best-understood segment of all the three covered in this article. By definition, profit means “money that is earned in trade or business after paying the costs of producing and selling goods and services”.

TBL is not meant to discount profit in any way – rather incorporate it into the other two legs of sustainability: investment in social initiatives or environmental projects relies directly on profit and a company that does not do well financially cannot contribute to the other areas – social and environmental impact.

Profit refers to the influence that the organization is creating on the whole environment within which it operates: ethical means to earn a profit; cooperating with and supporting ethical partners; fair wages and full taxes paid.

Profit as a component of TBL is pretty straightforward, yet there are certain aspects that might be confusing. And it seems to arise from a two-sided view of Profit: the philanthropic take with emphasis to give back to society as a charity, and pure profit to satisfy shareholders.

However, when talking about sustainability and the triple bottom line, these two sides are inseparable. The company can stay in business and drive value for the People and the Planet only if it makes a profit.

The triple bottom line’s Profit is a cycle: a business that makes a profit can then invest in innovation, creating a positive impact on the Planet and the People; can then pay taxes that in return will be used for social good; can then grow to create jobs for People and so on.

Key Points

Conclusion

The triple bottom line like other sustainability-oriented initiatives can seem quite idealistic in a world still strongly focused on profit.

But as McKinsey report over the past 5 years, investment into sustainable funds has been on a rise and even if current environmental, social, and governance (ESG) frameworks are far from perfect, ESG considerations are becoming more important in companies decision making. In addition, investing in sustainable innovation does result in stronger economies, higher living standards, and more opportunities for individuals.

There are no better words, to sum up this article than John Elkington’s words:

“To truly shift the needle, however, we need a new wave of TBL innovation and deployment. None of these sustainability frameworks will be enough, as long as they lack the suitable pace and scale — the necessary radical intent — needed to stop us all overshooting our planetary boundaries.”

The challenge here is that businesses still must satisfy shareholders and to deliver the value they have to make tradeoffs. There’s no one golden rule on how to satisfy all three areas of TBL equally, it is a continuous, balancing act, and decision-making should be based on long-term goals. But the fact is, that decisions must be made, and it is the best time to go beyond planning and start implementing.

This article was previously published in Viima’s blog.

Image Credits: Unsplash, Viima, Pexels

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How Stories Drive Transformational Change

Leading with Narrative

How Stories Drive Transformational Change

GUEST POST from Chateau G Pato

When faced with the need for transformational change, leaders often turn to the tools they know best: data, strategy, and process. We craft meticulous spreadsheets, present compelling graphs, and outline new organizational structures. We believe that if we can just provide enough logical evidence, people will get on board. But as a human-centered change and innovation thought leader, I have seen time and again that this approach is fundamentally incomplete. Data informs, but it is **narrative that inspires**. We are not logical machines; we are storytelling beings. The most successful leaders don’t just manage change; they craft and champion a compelling story that connects with the hearts and minds of their people.

Our brains are wired for stories. When we hear a narrative, our brains light up. We release oxytocin, the “trust hormone,” and we enter a state of engagement and empathy. A well-told story is more memorable, more persuasive, and more emotionally resonant than any data point. It takes a complex, abstract idea—like a new corporate strategy—and makes it personal, tangible, and relatable. A story creates a shared reality and a sense of collective purpose. It turns a group of individuals into a tribe, united by a common journey. Therefore, if you are not leading with a powerful narrative, you are leaving your most potent tool for change on the table.

Crafting a Narrative for Change: The Human-Centered Blueprint

A powerful change narrative isn’t a simple announcement; it’s a carefully constructed journey that positions your team as the heroes. Here’s a blueprint for crafting a story that drives transformation:

  • The “Why” Story (The Call to Adventure): Begin by telling the story of why change is necessary. What is the fundamental problem you are solving? Don’t just show market share declines; tell a story about a frustrated customer whose needs aren’t being met. This emotional “why” is the foundation of your narrative.
  • The “What If” Story (The Vision of a New World): Paint a vivid, aspirational picture of the future. What will life be like for employees, customers, and the world after the change? Use rich details and sensory language. What will your company feel like? What will a customer’s day be like with your new product? Make the future feel tangible and desirable.
  • The “Hero’s Journey” (The Role of Your People): Position your employees as the heroes of the narrative. They are not passive recipients of change; they are the ones who will overcome the obstacles and bring the new world to life. This narrative arc gives them purpose and a sense of ownership, transforming them from resistors into champions.
  • The Power of Anecdotes (Sustaining the Story): A single, powerful story can be more effective than a hundred data points. As the change unfolds, leaders must continuously collect and share stories of small wins, customer triumphs, and individual acts of bravery. These anecdotes keep the narrative alive and provide concrete evidence that the journey is progressing.

“Facts tell, but stories sell. In the business of change, you are not selling a strategy; you are selling a story about a better future.”


Case Study 1: Satya Nadella and the Transformation of Microsoft

The Challenge:

In the early 2010s, Microsoft was a technology giant struggling with a stagnant culture. It was known as an internal “know-it-all” organization, marked by intense competition, siloed business units, and a lack of agility. The company was losing relevance in a world dominated by mobile and cloud computing. The challenge for new CEO Satya Nadella was not just to change the strategy, but to change the very soul of the company.

The Narrative-Driven Solution:

Nadella’s approach was a masterclass in leading with narrative. He didn’t just present a “cloud-first, mobile-first” strategy; he crafted a new story for Microsoft. He shifted the focus from competing with others to **empowering every person and every organization on the planet to achieve more**. This was a profound, human-centered “why” that resonated deeply. He replaced the “know-it-all” culture with a **”learn-it-all”** growth mindset. This narrative repositioned employees from being defenders of a legacy to being explorers of a new future. He used his personal story, his love of poetry, and his focus on empathy to make the narrative feel authentic and deeply human. He constantly reinforced the story with anecdotes of customer successes and internal collaboration.

The Result:

The transformation was a resounding success. The shared narrative of empowerment and the growth mindset fundamentally changed the company’s culture. It broke down silos, fostered collaboration, and unleashed a wave of innovation that led to the creation of products like Microsoft Teams and the explosive growth of Azure. By leading with a new story, Nadella didn’t just change what Microsoft did; he changed who they were, proving that narrative is a powerful lever for the most profound organizational change.


Case Study 2: Southwest Airlines and the Story of the Underdog

The Challenge:

In the 1970s, the airline industry was dominated by large, bureaucratic carriers. A small, upstart airline in Texas, Southwest, faced a monumental challenge. They couldn’t compete on size or resources, so they had to compete on something else. Co-founder Herb Kelleher’s challenge was to inspire a team and a customer base to believe in a new, unconventional way of flying.

The Narrative-Driven Solution:

Kelleher didn’t just create a low-cost airline; he created a powerful narrative. The story of Southwest was that of the **underdog fighting the Goliaths** of the industry. The narrative was centered on rebellion, fun, and common sense. Employees were not just ticket agents or flight attendants; they were the heroes fighting for the everyman, making flying affordable and enjoyable. They were empowered to be funny, to go off-script, and to treat customers like friends. Every internal communication and external advertisement reinforced this core story, from flight attendants in shorts to cheeky taglines.

The Result:

This powerful narrative created a culture of fierce loyalty and an employee base that was so engaged they would go above and beyond to delight customers. The story of the underdog resonated with the public, building a customer community that was fiercely loyal to the brand. Southwest became one of the most consistently profitable airlines in history, not by having the most features, but by having the most compelling story. The narrative of rebellion and fun was the single most powerful tool for attracting talent, retaining customers, and driving a truly unique and successful business model.


Conclusion: The Leader as a Storyteller

In the final analysis, leaders are not just managers of resources; they are guardians of a story. Whether you are leading a team, a department, or an entire organization, your ability to inspire change is directly tied to your ability to articulate a compelling narrative. It is the story that provides context, creates purpose, and forges the emotional connections required for people to take on the difficult journey of change.

So, the next time you are faced with a transformation, put away the spreadsheets and data for a moment. Instead, ask yourself: What story are we telling? What is our “why”? What does the new world look like? And who are the heroes who will bring it to life? The most powerful and enduring transformations are built not on logic, but on the enduring and timeless magic of a great story.

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.

Image credit: Unsplash

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Anticipating and Mitigating Innovation Risks

The Unintended Consequences

Anticipating and Mitigating Innovation Risks

GUEST POST from Art Inteligencia

In the exhilarating rush of creation, we often celebrate innovation as an unmitigated good. We focus on the problem solved, the need met, and the market disrupted. But as a human-centered change and innovation thought leader, I am here to challenge that narrow perspective. Every new product, every disruptive service, and every breakthrough technology casts a shadow — a trail of unforeseen consequences that can range from minor inconvenience to societal-level disruption. True innovation leadership is not just about solving today’s problems; it’s about anticipating the ripple effects of your solution and taking proactive steps to mitigate potential harm. The greatest innovators are not just brilliant creators; they are also responsible stewards of the future they are building.

The paradox of progress is that our focus on a single, positive outcome often blinds us to the broader systemic impact. We drop a stone in a pond, focused solely on the satisfying splash, and fail to see the ripples that wash up on distant shores. This lack of foresight is not a moral failing, but a cognitive one. Our brains are wired for a singular focus, which is excellent for solving complex problems but poor for considering the peripheral damage. To build a more resilient and ethical future, we must intentionally embed a new practice into our innovation process—one of anticipating and mitigating unintended consequences from the very beginning.

A Human-Centered Framework for Responsible Innovation

Moving beyond a naive optimism requires a new framework for innovation—one that is built on ethical foresight and systemic thinking. Here’s how you can proactively address the risks of your next big idea:

  • Conduct a “Worst-Case” Brainstorm: Gather your innovation team and intentionally brainstorm all the negative outcomes. What’s the worst-case scenario? Who could be harmed? How could this be misused? This exercise isn’t meant to stop the project, but to expose potential vulnerabilities and build resilience into the design.
  • Practice Systemic Empathy: Go beyond your direct user. Map out the entire ecosystem your innovation will enter. How will it affect competitors, adjacent industries, communities, and even the planet? The goal is to develop empathy for every stakeholder in the system, not just the one you’re designing for.
  • Design with a Moral Compass: Build ethical considerations into your design principles. Is your product a tool for connection or a platform for division? Is it creating value for everyone in the supply chain or just the end user? These questions should guide your decisions, not just be addressed in a post-mortem.
  • Build for Transparency and Control: Empower your users. Give them clear, easy-to-understand controls over their data and experience. When people feel a sense of agency, they are more likely to trust your platform and less likely to feel exploited by an unforeseen consequence.

“The best innovations are not just profitable; they are wise. They create the future without leaving a wake of unaddressed problems.”


Case Study 1: The Social Media Revolution – The Unforeseen Cost of Connection

The Intended Consequence:

In the early days, platforms like Facebook, Twitter, and YouTube were designed with a clear and noble purpose: to connect the world, give a voice to the voiceless, and foster a global community. The goal was to break down barriers and create a more open and connected society. This was the “splash” that captivated the world.

The Unintended Consequences:

As these platforms grew, a dark side emerged. The design choices, particularly the algorithms that prioritized engagement and virality, led to a cascade of unforeseen consequences: the proliferation of misinformation and fake news, increased social and political polarization, a rise in cyberbullying and online harassment, and a measurable negative impact on the mental health of users, particularly adolescents. These unintended consequences were not malicious; they were the direct result of a lack of ethical foresight and systemic thinking. The companies were so focused on optimizing for a single metric—user engagement—that they failed to consider the human and societal harm it would cause. The trust that was once a given for these platforms is now a major challenge.

The Lesson:

The social media story is a cautionary tale for all innovators. It teaches us that a single-minded focus on a positive outcome can create a new set of complex and damaging problems. It shows that the true measure of an innovation’s success is not just its adoption, but its long-term impact on the world. Ethical foresight is not a luxury; it is a fundamental requirement for building a responsible and sustainable technology.


Case Study 2: The E-Scooter Boom – Navigating Urban Chaos

The Intended Consequence:

When companies like Lime and Bird launched their e-scooter services, their purpose was clear and positive: to provide an efficient, fun, and eco-friendly “last-mile” transportation solution for urban commuters. The goal was to reduce traffic congestion and carbon emissions. The initial reception was enthusiastic, and the model spread rapidly across cities worldwide.

The Unintended Consequences:

The sudden influx of thousands of scooters led to a wave of unforeseen problems. They were left haphazardly on sidewalks, creating accessibility hazards for people with disabilities and a safety nightmare for pedestrians. Injuries from falls and collisions soared. Cities were unprepared to regulate the new technology, leading to public outrage and, in many cases, a swift ban of the services. The innovators were so focused on the user experience of the ride itself that they failed to consider the broader system of the urban environment they were disrupting.

The Lesson:

The e-scooter case is a powerful example of how a failure of systemic thinking can derail a promising innovation. While the companies had a good intention, they did not adequately consider the impact on the public right-of-way, city regulations, and the safety of non-users. In response, they have since had to pivot and collaborate with cities to create designated parking zones, improve safety features, and build better relationships with local governments. This case demonstrates that proactively engaging with all stakeholders—not just your target consumer—is essential to mitigate risk and ensure long-term viability.


Conclusion: The Ethical Imperative of Innovation

Innovation is humanity’s greatest engine of progress, but it is not without its risks. The most powerful innovations of the future will be those that are not only technologically brilliant but also ethically wise. As leaders and innovators, our most critical role is to move beyond the narrow focus of problem-solving and embrace a broader responsibility to the systems and people we impact.

The next time you are building something new, take a moment to look at its shadow. Ask the difficult questions. Challenge your assumptions. And remember that the most profound and lasting change is not just about what you create, but how you create it—with foresight, with empathy, and with an unwavering commitment to leaving the world better than you found it. The future depends on it.

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.

Image credit: Wikimedia Commons

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What to Do When You Don’t Know What to Do

What to Do When You Don’t Know What to Do

GUEST POST from Mike Shipulski

When you don’t know what to do, what do you do? This is a difficult question.

Here are some thoughts that may help you figure out what to do when you really don’t know.

Don’t confuse activity with progress.

Gather your two best friends, go off-site, and define the system as it is.

Don’t ask everyone what they think because the Collective’s thoughts will be diffuse, bland, and tired.

Get outside.

Draw a picture of how things work today.

Get a good meal.

Make a graph of goodness over time. If it’s still increasing, do more of what you did last time. If it’s flat, do something else.

Get some exercise.

Don’t judge yourself negatively. This is difficult work.

Get some sleep.

Help someone with their problem. The distraction will keep you out of the way as your mind works on it for you.

Spend time with friends.

Try a new idea at the smallest scale. It will likely lead to a better one. Repeat.

Use your best judgment.

Image credit: Pixabay

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The Gig Economy’s Innovation Potential

Harnessing Independent Talent

The Gig Economy's Innovation Potential

GUEST POST from Chateau G Pato

For too long, the gig economy has been viewed through a narrow, transactional lens. We’ve seen it as a way to cut costs, fill temporary gaps, or manage seasonal demand. The debate has largely centered on labor laws and the future of work, overshadowing a far more critical conversation. As a human-centered change and innovation thought leader, I am here to argue that the gig economy is not just a labor model; it is a profound innovation engine. By embracing independent talent, organizations can unlock a level of creativity, specialized expertise, and strategic agility that is simply unattainable within the confines of a traditional, full-time workforce. The future of innovation is flexible, decentralized, and driven by a global network of independent thinkers.

The traditional corporate model, built on a foundation of long-term employment, is ill-equipped for the speed of modern innovation. It’s slow to hire, slow to adapt, and often suffers from institutional inertia. The gig economy shatters these limitations. It provides a direct, on-demand connection to a world of highly specialized professionals who are often at the forefront of their fields. These individuals are not just freelancers; they are experts in AI, behavioral psychology, robotics, and design, who bring an outside-in perspective free from internal politics and organizational biases. Tapping into this talent pool is no longer just a cost-saving measure; it is a strategic imperative for any company that wants to stay relevant and competitive.

The Three Pillars of Gig-Powered Innovation

Harnessing the innovation potential of the gig economy requires a strategic mindset and a shift in how we think about talent. Here are three core pillars:

  • Access to Niche and Adjacent Expertise: Innovation often happens at the intersection of different fields. The gig economy provides instant access to highly specialized skills that you don’t have—or don’t need full-time. This allows you to quickly prototype, experiment with emerging technologies, and solve problems that your internal teams might not have the expertise for.
  • Speed and Agility: The gig model allows organizations to create lean, project-based teams that can scale up or down in real-time. This enables a true “fail fast” culture, where you can test a new idea with minimal long-term risk. There’s no lengthy hiring process, no large capital investment, just the ability to assemble the right team for the right moment.
  • Diversity of Thought: Independent professionals often work across multiple industries and cultures. They bring a fresh perspective and a unique synthesis of ideas from different contexts. This diversity of thought is a powerful antidote to groupthink and can lead to breakthrough solutions that would never have been conceived within a single organization’s walls.

“The gig economy is not about hiring temporary labor; it’s about subscribing to a global network of specialized intelligence.”


Case Study 1: P&G’s “Connect + Develop” Model

The Challenge:

In the early 2000s, consumer goods giant Procter & Gamble faced a major innovation dilemma. Its internal R&D was efficient but insular. The company realized that many of the world’s best inventors and scientists didn’t work for them. They needed a way to tap into a broader network of external talent to accelerate their product development without massive, long-term capital investments.

The Gig-Powered Solution:

P&G launched “Connect + Develop,” a program that fundamentally embodies the principles of the gig economy at an enterprise scale. Instead of relying solely on internal scientists, the company created a system to crowdsource innovation from independent inventors, academics, and research organizations worldwide. They would post specific, well-defined problems (e.g., “Find a way to make laundry detergent work in cold water”) and offer incentives for the best solutions. This was a direct move from a closed innovation model to a flexible, gig-based one.

  • Access to Expertise: P&G gained access to a vast network of independent scientists and researchers, enabling them to solve problems that had stumped their internal teams for years.
  • Reduced Risk: The company could experiment with a wide range of ideas without the risk of hiring full-time experts in every niche field.
  • Speed and Agility: The model dramatically reduced the time it took to move an idea from concept to market, as they could leverage existing, proven intellectual property.

The Result:

The “Connect + Develop” program became a massive success. P&G estimates that over half of its product innovations now come from outside the company, generating billions of dollars in revenue. The model proved that an established giant could successfully leverage the principles of a gig economy to drive continuous, large-scale innovation. It fundamentally shifted their mindset from internal creation to global collaboration.


Case Study 2: Airbnb’s Early Growth through Independent Talent

The Challenge:

In its early days, Airbnb was a lean startup with a small, core team focused on a single, disruptive idea. To grow and iterate quickly, they needed a wide range of skills—from specialized coding and data analysis to design and marketing—but they lacked the capital and time to hire full-time employees for every single need. The challenge was to be agile without burning through their limited resources.

The Gig-Powered Solution:

Airbnb, like many early-stage startups, used the gig economy as a strategic resource for innovation and growth. They leveraged platforms like Upwork and specialized talent networks to access independent contractors who could work on specific, well-defined projects. For instance, they hired freelance designers to test new website layouts, independent writers to create compelling content, and data analysts to quickly crunch numbers and inform strategic decisions. This “pay-as-you-go” approach to talent was a critical enabler of their rapid iteration cycle.

  • Agility and Speed: The ability to quickly bring on an expert for a specific project allowed Airbnb to test ideas and pivot with incredible speed.
  • Cost-Effectiveness: They could access high-level talent without the long-term cost and commitment of a full-time employee, which was crucial for a cash-strapped startup.
  • Focus on the Core: By outsourcing non-core, specialized tasks to independent professionals, the small founding team could remain focused on the central business strategy and product vision.

The Result:

The gig economy was instrumental in Airbnb’s journey from a small startup to a global giant. By strategically using independent talent, they were able to build and scale their product rapidly, test new ideas, and prove their business model. This case study demonstrates how the gig economy is not just a solution for large corporations but is an essential tool for startups to innovate with speed and efficiency.


Conclusion: The Future is a Hybrid Workforce

The future of innovation is not a binary choice between a full-time workforce and a gig economy. It is a powerful hybrid model that combines the deep institutional knowledge and cultural foundation of a core team with the specialized skills, fresh perspectives, and agility of independent talent. This new workforce architecture allows for a level of dynamism and creative problem-solving that has been impossible in the past.

As leaders, our challenge is to move beyond old paradigms and embrace this new reality. We must learn to scope problems, manage external talent, and create a culture that values collaboration regardless of employment status. The gig economy is not just a trend; it is a fundamental shift in how we access human capital. The organizations that see it as a strategic engine for innovation will be the ones that win in the future, building a more resilient, agile, and creative enterprise for generations to come.

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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Music Can Make You a More Effective Leader

Music Can Make You a More Effective Leader

GUEST POST from Shep Hyken

You don’t have to be a rock star with an album that makes millions to say, “Music changed my life.” You can be the leader of an organization, searching for a way to overcome an obstacle or challenge plaguing you—potentially for years.

The key to resolving an ongoing leadership challenge could lie in the music you’re listening to. Listening to the right music can actually shift the way you think, help you overcome obstacles and make you a better leader.

Suppose you’re feeling frustrated with your team, wondering why they’re not as motivated or engaged as you are, why they aren’t handling customers the way you would like, why you can’t fully delegate or something else. In that case, you’re probably asking, “How can I get them to change?”

But that may not be the right question. What if you asked instead, “What can I change in myself?” What if the thing you need to change is your internal environment, not your external one?

This is the tough question that The Leader’s Playlist, the book debut by Harvard lawyer turned CEO coach Susan Drumm, invites leaders to ask themselves.

I had the chance to interview Drumm for an episode of Amazing Business Radio. In the interview, she talked about game-changing ways leaders can become more effective. Specifically, she shared a powerful, practical tool for shifting unconscious perspectives and behaviors that may create a poor leadership outcome. That tool is music.

According to Drumm, music is a “brain hack for shifting ineffective leadership patterns.” From her decades of coaching top executives, including billionaire CEOs and high-profile political figures, Drumm knows that when someone is struggling as a leader, especially if they’re feeling strong emotions such as burnout, frustration, imposter syndrome, etc., it’s often because there’s an internal ‘playlist’ on repeat that is shaping how they view their circumstances—not outside pressures.

Drumm says, “This playlist of thoughts is keeping them stuck. It’s become that soft background music they may be unable to hear, but it’s there, hijacking their emotional state.”

The internal playlist is typically rooted in childhood “wounds.” Drumm highlights common “playlist titles” she encounters in the executives and leaders she coaches, including, but not limited to:

  1. I am all alone
  2. I am not good enough
  3. I am trapped and confined

These subconscious messages are deeply embedded in the leader’s psyche, and it’s a challenge for most leaders to simply think or decide their way out of their playlist.

During my interview, I asked Drumm if playing music can dramatically change a mood. She quickly answered, “Yes,” so I shared a short story about a favorite song I listen to in the morning when I need a little boost to get me going. The song is Perfect Day by Hoku. It is the upbeat song that was played in the opening of ‘Legally Blonde’. The lyrics don’t match with my work ethic (Sun’s up/It’s a little after twelve/Make breakfast for myself/Leave the work for someone else), but the energy, lightheartedness and overall meaning make it a great song—at least for me.

Music can alter your mood, clear your head and change how you think over time. Drumm’s book outlines a strategy for using music to tap into your subconscious. Change the way you feel, and you shift your thought patterns. Her goal is to help leaders create a playlist that reflects the life they want to lead, understand how their current playlists came to be and learn how the power of music can unlock a leader’s true potential.

So, if you’re struggling to lead your team effectively, check for an internal playlist playing in the background, and then create a literal playlist to help rewire those beliefs. As Drumm says: your personal evolution sparks your leadership evolution!

This article originally appeared on Forbes

Image Credit: Shep Hyken

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Crowdsourcing Creativity

Harnessing the Wisdom of the Collective

Crowdsourcing Creativity

GUEST POST from Art Inteligencia

For too long, innovation has been treated as an exclusive, top-down process. We build small, elite R&D teams, sequester them in innovation labs, and task them with generating the next breakthrough idea. While this model has produced many successes, it is fundamentally limited. It relies on the finite expertise of a select few and often suffers from groupthink, tunnel vision, and a detachment from the very customers it seeks to serve. As a human-centered change and innovation thought leader, I am here to argue that the most powerful engine of creativity is not a closed-door meeting, but the wisdom of the crowd. The future of innovation belongs to those who are willing to democratize the process and harness the boundless creativity of a diverse, global collective.

Crowdsourcing is more than just a buzzword; it is a strategic shift in mindset. It is the practice of outsourcing a task or problem to a large, undefined group of people, whether they are employees, customers, or the general public. By opening up the innovation process, organizations can access a level of diversity in thought and experience that no internal team could ever replicate. It moves the focus from a single point of origin to a decentralized network of passion, insight, and fresh perspective. The problems that have stumped your experts may be solved in minutes by someone with a completely different background. The key is to stop asking “who can solve this?” and start asking, “who might have a good idea?”

The Foundational Pillars of Crowdsourced Innovation

Successful crowdsourcing is not a random act of faith; it is a carefully designed, human-centered process built on a few core pillars:

  • Openness and Access: The first step is to break down the walls. Create a clear, low-friction platform where anyone can submit an idea. The easier it is to participate, the more diverse and numerous the ideas will be.
  • Specificity and Challenge: The “crowd” needs a clear, compelling problem to solve. A vague request will yield vague results. Frame the challenge in a way that is inspiring and provides enough context for people to contribute meaningful solutions.
  • Meaningful Incentives: People are motivated by more than just money. While cash prizes can be effective for technical challenges, a sense of purpose, recognition, or the opportunity to see their idea come to life can be just as, if not more, powerful.
  • Transparency and a Feedback Loop: The crowd needs to feel heard. Be transparent about the process—how ideas are evaluated, why some are chosen, and what happens to the winning submissions. Closing the loop by celebrating the contributors, even those whose ideas weren’t chosen, builds trust and encourages future participation.

“The best ideas don’t come from the people you pay to think; they come from the people who can’t stop thinking.” — Braden Kelley


Case Study 1: Lego Ideas – From Fan Passion to Product Powerhouse

The Challenge:

For decades, Lego relied on an internal team of master builders and designers to create new sets. While this produced incredible products, the company faced a challenge: how to tap into the passionate and creative community of Lego fans who were building their own amazing creations at home. This was a classic case of an innovation process being limited by its own walls.

The Crowdsourcing Solution:

Lego launched Lego Ideas (originally Lego Cuusoo), a brilliant crowdsourcing platform that turned its most loyal fans into an R&D department. The process is simple: anyone can submit an idea for a new Lego set. If the idea garners 10,000 votes from the community, Lego’s internal team reviews it. If it is chosen for production, the creator receives a percentage of the sales and credit for the design. This model is a masterclass in human-centered innovation.

  • Incentivized Engagement: The promise of having their design sold globally and receiving a portion of the profits is a powerful incentive for creators.
  • Built-in Feedback: The voting process acts as a powerful market validation tool. Lego gets instant feedback on which ideas resonate most strongly with their core audience.
  • Community Building: The platform transformed passive consumers into active co-creators. It fostered a vibrant, global community of builders who felt a deep sense of ownership and pride in the brand.

The Result:

Lego Ideas has been a resounding success, leading to the creation of some of Lego’s most popular and iconic sets, including the *Minecraft* series and the *Back to the Future* DeLorean. The program proved that the best ideas were not always in the boardroom but were being built in the homes of their most dedicated fans. It leveraged passion, talent, and a sense of shared purpose to build an innovation engine that is both profitable and profoundly human.


Case Study 2: The Netflix Prize – A Technical Challenge for a Global Crowd

The Challenge:

In the mid-2000s, Netflix was a DVD-by-mail service. A key part of its business model was its movie recommendation engine, which was good, but not great. Improving its accuracy by just a small percentage could lead to millions of dollars in savings and increased customer satisfaction. This was a highly technical, data-driven problem that had stumped its internal team of brilliant engineers.

The Crowdsourcing Solution:

Netflix took a bold and unconventional approach. They launched the Netflix Prize, a global crowdsourcing competition with a prize of $1 million to the first team that could improve their recommendation algorithm’s accuracy by 10%. They provided a massive dataset (anonymized, of course) and a clear, measurable goal. The contest was a highly structured, incentive-based crowdsourcing effort that attracted academics, data scientists, and engineers from around the world.

  • A Clear, Measurable Goal: The 10% improvement target was specific and quantifiable, which made the challenge compelling to a technical audience.
  • High-Stakes Incentive: The $1 million prize was a significant reward that attracted some of the world’s best minds in a way that traditional recruitment could not.
  • Intellectual Freedom: Netflix provided the problem and the data, but no one was constrained by internal bureaucracy, politics, or assumptions. The crowd was free to experiment without limits.

The Result:

The contest was a wild success. Over 40,000 teams from 186 countries participated. After three years, a collaborative team of researchers finally met the 10% goal, with the winning algorithm being an ensemble of different methods. The Netflix Prize not only solved a critical business problem but also created a new industry standard for recommendation engines and demonstrated the power of open innovation. It proved that for highly complex problems, the right answer may not be in your office, but in the collective genius of the global crowd.


Conclusion: The Future of Innovation is Collaborative

The era of closed-door innovation is over. In a world defined by complexity and rapid change, the ability to crowdsource creativity is a non-negotiable strategic capability. It’s about more than just getting new ideas; it’s about building a more resilient, connected, and human-centered organization. By treating your customers, employees, and the global community not as passive audiences but as active collaborators, you can tap into a wellspring of creativity that is truly infinite.

As leaders, our role is to move beyond the traditional models and create the platforms, the incentives, and the cultural mindset that empowers everyone to contribute. The most profound innovations of the future will not be created by a single genius in a lab, but by the collective wisdom of a motivated crowd. It’s time to open our doors and invite the world to help us build a better future, together.

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.

Image credit: Freepik

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