Innovating for a Sustainable Future in a Circular Economy

Innovating for a Sustainable Future in a Circular Economy

GUEST POST from Chateau G Pato

As we continue to witness the environmental degradation caused by unsustainable practices, the concept of a circular economy has emerged as a vital solution to reinvent how we produce, consume, and dispose of products. A circular economy aims to keep resources in use for as long as possible, extracting maximum value before recovering and regenerating products and materials at the end of their service lives. Let’s explore how organizations are innovating for a sustainable future, driven by the spirit of the circular economy.

Case Study 1: Philips Lighting – Turning Light into Service

One of the most transformative applications of circular economy principles can be seen in Philips Lighting’s innovative approach to lighting solutions. Traditionally, lighting solutions were transactional – customers purchased bulbs or fixtures which they owned and maintained. Philips turned this model on its head with a product-as-a-service offering called “Light as a Service” (LaaS).

Instead of selling bulbs, Philips offers lighting solutions as a service to its customers. In this model, Philips retains ownership of the equipment, and customers pay for the illumination. This innovative approach not only ensures that customers have access to the latest and most efficient lighting technology, but it also keeps Philips engaged with the customer through the life of the contract, providing maintenance and upgrades.

Furthermore, by retaining ownership, Philips is incentivized to produce durable and energy-efficient lighting solutions. At the end of the service life, the company is responsible for recycling or repurposing the lighting fixtures, thereby reducing waste. This not only aligns with circular economy principles but also provides a competitive edge and additional value to its customers.

Case Study 2: Adidas – A Step Towards Sustainability

Another stellar example of circular economy innovation is found in Adidas’ approach to sustainable footwear. In an industry where fashion waste is a burgeoning problem, Adidas has made strides through its “Futurecraft Loop” initiative. This project represents a daring attempt to create performance footwear designed to be remade and repurposed.

The Futurecraft Loop is a running shoe made entirely from recyclable materials. When the shoes reach the end of their initial life, they can be returned to Adidas, where they are cleaned, ground down, and used to create components for a new pair. This closed-loop system ensures that materials are continuously cycled through the production process without ending up in a landfill.

Adidas’ endeavor is not just about innovative materials, but also about changing the way consumers think about consumption and waste. By showcasing the importance of end-of-life product management as part of their business model, Adidas is pushing the boundaries of product lifecycle management.

Driving Innovation through Circular Thinking

The circular economy represents a significant departure from the traditional linear economy’s “take-make-dispose” model and encourages sustainable design, resource efficiency, and innovative business practices. However, transitioning to a circular economy isn’t without its challenges. It requires a shift in mindset—from viewing waste as a byproduct to seeing it as a valuable resource.

One crucial element in fostering this innovation lies in creating ecosystems that support circular initiatives. Policymakers, businesses, and consumers need to collaborate to build a supportive infrastructure, including recycling facilities and supply chain redesigns that facilitate circularity.

Moreover, technology will be a key enabler. From the Internet of Things (IoT) aiding in product tracking and maintenance to blockchain providing transparency in resource management, the integration of advanced technologies will further accelerate circular initiatives.

Conclusion

As we continue to confront the challenges of climate change and resource scarcity, the circular economy offers a compelling narrative of hope. Innovators like Philips and Adidas are leading the way by demonstrating tangible benefits through sustainable design and business models. The road to a circular economy will not be without its hurdles, but the journey promises a future where growth and sustainability are reconciled.

For further insights on innovation and sustainability, consider exploring these articles:

Together, through innovative thinking and collaboration, we can create a sustainable future where both economic success and environmental responsibility thrive.

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: Pexels

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Why Innovation Heroes Indicate a Dysfunctional Organization

Why Innovation Heroes Indicate a Dysfunctional Organization

GUEST POST from Steve Blank

Recently I got invited to an “innovation hero” award ceremony at a government agency. I don’t know how many of these I’ve been to in the last couple years, but this one just made my head explode.

The award was for an entrepreneur who worked against all odds to buck the system to turn her insight into an application. She had realized it was possible to automate a process that was being done manually – reentering data from one spreadsheet to another and annotating it with additional data from another system. Inspired by her own work problem, she talked to her peers and other stakeholders, built multiple minimum viable products, and figured out how to get engineering, policy, legal, security and everyone else in the enterprise to actually approve it. And then she fought with the acquisition folks to buy the trivial amount of additional hardware needed to connect it. It was a development process that would’ve taken three weeks in a startup, but inside this agency took 10 months (which was considered fast.) At each step she was confronted with “we’re not budgeted for this” or “this isn’t on our schedule” and “this isn’t your job.” Most rational people would’ve given up and said “you can’t fight the system” but yet she persisted.

Having seen this scenario play out multiple times at multiple large corporations and government agencies, I could’ve repeated the speech her agency director made at the ceremony verbatim. “Blah blah blah and a $100 bonus.” Everyone politely applauded and went back to work feeling good. I was simply depressed. Never once did anyone ever step back and say that what we just witnessed was leadership rewarding and perpetuating a dysfunctional and broken system.

I’m constantly puzzled why thoughtful and astute CEOs and Agency Directors never ask:

  • Why is it that innovations require heroics to occur in our organization?
  • Why don’t we have a repeatable process for innovation?
  • What are the obstacles in the way of delivering needed innovation with speed and urgency in our organization?
  • Why is it that after each one of these awards we don’t go back and fix the parts of the system that made creating something new so difficult?

Instead, everyone at this award ceremony just went back to work like it was business as usual. I realized that innovation in this organization was going to continue to happen by heroics and exception rather than by design. As I’ve seen play out way too many times, ultimately the innovators get tired of banging their heads against the wall and leave government service or large companies. Their organizations hemorrhage the very people they need to help them compete against aggressive adversaries or competitors who have them in their sights.

An Organizational Design Problem

Sadly, this wasn’t a single act of bad management or malice. No single individual thought they weren’t doing their job. However, if anyone had taken the time to deconstruct the reason for the roadblocks to innovation, they would have uncovered they weren’t just obstinate middle managers, or a single bad process. Asking a series of “five whys,” (see this HBR article) would have discovered that:

  • The agency’s existing processes were not designed for non-standard work. As in most large organizations, they were designed for the repeatable execution of pre-defined tasks.
  • There were no resources available for non-standard work or any parallel organization responsible for innovation.
  • The culture of the organization discouraged experimentation and punished the inevitable failures of a learning and discovery process.

Ultimately, the root cause was the entire government agency lacked an Innovation Doctrine. This manifested itself as an organizational design problem. There was simply no permanent place in the organization for unscheduled innovation to happen. And even if there had been, there was no way to turn demos into deployment with speed and at scale.

Five Whys Steve Blank

Innovation Doctrine

In peacetime and/or when you’re the dominant superpower (or a commercial market leader), the emphasis is on process, procedures, and sustaining of existing systems. Deviations from that create chaos and diverge from the predetermined are not welcomed, let alone promoted, and funded. They are eliminated. This works great when the external environment – competitors, adversaries, technologies, threats – is static. However, in times of crisis, war or disruption, these unconventional thinkers and innovators are exactly what is needed, and their ideas need to be rapidly deployed.

Well-managed organizations realize that they need both innovation and execution. With execution being dominant in peacetime/competitive advantage you have managers of process. In crisis/wartime innovation is dominant. Instead of mangers of process you need innovation leaders who shepherd ideas through an innovation pipeline (via HBR). Successful organizations recognize that innovation isn’t a single activity (incubators, accelerators, hackathons); it is a strategically organized end-to-end process from idea to deployment.

While innovation and execution have different processes, people, and culture, they need to respect and depend on each other. This ambidexterity (see this HBR article) and the innovation processes that go with it require an innovation doctrine – an overall strategy and playbook for the entire organization and enterprise that includes an innovation pipeline and processes intended to drive innovation efforts, and describes the role of innovation leaders in an ambidextrous organization – all focused on rapid deployment of new capabilities.

Lessons Learned

  1. Innovation heroics are a symptom of a lack of an innovation doctrine
  2. An innovation doctrine has a playbook, and innovation pipeline and describes the role of innovation leaders in an ambidextrous organization – all focused on rapid deployment of new capabilities
  3. All large organizations – both government and corporate—need an innovation doctrine or else risk being outpaced by competitors


Image credits: Pixabay, Steve Blank

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Cultivating a Risk-Taking Culture in Your Organization

Cultivating a Risk-Taking Culture in Your Organization

GUEST POST from Art Inteligencia

In today’s rapidly evolving marketplace, organizations face the dual challenge of maintaining operational efficiency and fostering innovation. To stay ahead, many companies are finding that cultivating a risk-taking culture is essential. Embracing calculated risks can lead to breakthroughs, foster creativity, and fuel long-term success. This article explores how organizations can nurture an environment where risk-taking is encouraged, supported, and rewarded.

The Need for a Risk-Taking Culture

Organizations that prioritize safety and predictability may find themselves falling behind more agile competitors. A culture that embraces risk-taking opens the door to innovation and opportunity, allowing businesses to pivot quickly, respond to change, and seize new opportunities. However, building such a culture requires deliberate effort, strategic alignment, and a supportive environment.

Case Study 1: Netflix’s Decision to Stream

Netflix is a powerful example of a company that effectively adopted a risk-taking culture to propel its growth. In the early 2000s, Netflix made the strategic decision to shift from a DVD rental service to streaming digital content—a move that was incredibly risky considering the high costs and the nascent state of streaming technology at the time.

What set Netflix apart was its willingness to disrupt its own business model and invest in an uncertain future. Today, it stands as a giant in the entertainment industry. Netflix’s calculated risk-taking exemplifies the importance of envisioning future trends and aligning organizational resources and culture to pursue them, even when the path is uncertain.

Case Study 2: Amazon’s Launch of AWS

Amazon’s creation of Amazon Web Services (AWS) is another illustrative case. In the early 2000s, the idea of a retail company selling cloud computing services was unconventional, if not risky. Despite these challenges, Amazon ventured into this domain, identifying an unmet need for scalable, reliable, and affordable computing services.

Today, AWS is a major part of Amazon’s profit mix, illustrating how a willingness to take risks on seemingly unrelated business ventures can lead to new revenue streams and market dominance. Amazon’s leadership recognized the strategic potential of cloud services and was willing to allocate resources and support to see it through, a hallmark of a risk-taking culture.

Building a Risk-Taking Culture

Cultivating a risk-taking culture involves several strategic actions. Here are some steps organizations can take:

  • Create a safe environment: Encourage open communication and create a safe space where employees can express ideas without fear of rejection or punishment. Psychological safety is paramount.
  • Flat hierarchy and decentralized decision-making: Empowering employees at various levels to make decisions can speed up innovation and allow faster responses to challenges.
  • Celebrate failures and successes alike: Establish mechanisms to learn from failures and celebrate the courage to venture into the unknown.
  • Provide resources and support: Allocate time, budget, and mentorship to develop new ideas and test assumptions.

The Long-term Payoff of Risk-Taking

An organization’s capacity for risk-taking is a critical aspect of its innovativeness. As highlighted in both Google and 3M’s cases, fostering an environment that embraces risk enhances employee engagement and has direct correlations with business success. Organizations that prioritize nurturing risk-taking behaviors will likely discover a broader range of creative solutions and more sustainable growth trajectories.

Further Reading

If this article piqued your interest, I encourage you to explore these related articles here on the site:

Conclusion

Cultivating a risk-taking culture is not just a strategy—it’s an essential part of navigating today’s unpredictable business landscape. By prioritizing open-mindedness and experimentation, organizations can unlock the latent potential of their teams and foster innovations capable of driving growth and resilience. As you consider initiatives within your organization, remember that supporting calculated risks today can lead to the game-changing innovations of tomorrow.

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: Pixabay

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A How To Guide for Overcoming Procrastination

A How To Guide for Overcoming Procrastination

GUEST POST from Janet Sernack

I often wonder why some people procrastinate by delaying, postponing, or avoiding solving problems, or by withdrawing from making smart decisions, taking calculated risks, or taking intelligent actions?

  • Why do they become paralyzed and unable to take the actions necessary to solve some of their key problems?
  • Why do they often resist making even the most necessary changes to support the delivery of their creative solutions?
  • Why do so many also avoid taking personal responsibility and being accountable towards achieving their desired outcomes and goals?
  • Why do people disengage, even when the situation or problem may be critical to their own, their teams, or their organizations success?

Despite knowing that there may be a range of negative consequences for procrastinating, involving a crippling, overwhelming, and paralyzing combination of reactive responses?

Which then typically impacts negatively on people’s self-efficacy and self-belief, self-worth, and self-esteem and diminishes their motivation, disengages them and immobilizes their ability to take the necessary actions and as a result, spiral downwards?

How do we help people overcome procrastination?

  • Why is this important?

It seems that procrastination is a challenge we and many others have faced at one point or another, where we struggle with being indecisive, delaying, ignoring, avoiding taking actions to initiate, progress, or completing tasks that may be important to us, as well as on issues that really matter to us, our teams, partners and organizations.

Ultimately leading to failures, and an inability to mitigate risks, or be creative and inventive and decreasing possibilities for innovation and increasing engagement, productivity, and improving performance.

Also potentially leading to feelings of loss, insecurity, inadequacy, frustration, disengagement, and depression and in extreme cases, client, project failures and job losses, and even burnout!

Why do people procrastinate?

  • The need for security and self-protection is the key root causes of procrastination

Procrastination is most often a self-protection strategy, a way of defending ourselves, rooted in fears that result in anxieties around feeling unsafe, vulnerable, and being judged or punished, especially in times of uncertainty, unpredictability, uncontrollability, and when feeling overwhelmed.

In most organizational contexts, procrastinators are likely to respond be risk-averse by:

  • Being apprehensive and even withdrawing energetically (dis-engaging) from people as well as from the creative conversation, coupled with a lack of commitment to the change process or towards achieving the agreed goal (lacking conviction and being worried about the future).
  • Not showing up and spending a lot of time and energy zigzagging around and away from what they feel is consuming them or making them feel threatened or uncomfortable (avoidance).
  • Blaming external people and factors for not “allowing” them to participate or succeed (time, workload, culture, or environment).
  • Denying that achieving the goal really matters, bringing up excuses, and reasonable reasons about why having the goal doesn’t really matter to them, as well as a willingness to take risks (non-committal).
  • Being fearful of the future, dreading what might be the range of possible negative and overwhelming events and situations (pessimism).

What are the key signals of an effective procrastinator?

The first step in noticing the key signals is to tune into our own, and peoples’ effective avoidance default pattern as to what is really going on from a systemic perspective.

By paying deep attention, and being non -judgmental and non evaluative to the range of signals outlined as follows:

Behavior Signals

  • “Playing it safe” or “being nice” by being unwilling to challenge and be challenged.
  • Resisting any change efforts, disengaging, and being reluctant to disclose and share authentically what is really going on for them.
  • Unwillingness to take risks.
  • Shying away from engaging with their partners, families, colleagues, group activities, and from having candid conversations.
  • Being overtly indecisive and non-committal.

Neurological State Signals

  • Increased anxiety and “attention deficit” syndrome.
  • Low motivation and self-confidence.
  • Diminished ability to self-regulate and self-control.
  • Diminished self-efficacy and self-concept.
  • Onslaught of the creeping doubts and the imposter syndrome.

Extrinsic or Environmental Signals Occur When Fearful of Perception of Others

  • Performing poorly, making mistakes, or failing.
  • Fearful of doing too well, or in being too successful.
  • Losing control, status, or role.
  • Looking stupid, or being disapproved of.
  • Avoids conflict situations.

Fear of Success Signals

Some of us are unconsciously afraid of success, because irrationally we secretly believe that we are not worthy of it and don’t deserve it, and then self-sabotage our chances of success!

  • Being shy, introverted, and uncomfortable in the spotlight.
  • Being publicly successful brings social or emotional isolation.
  • Alienating peers as a result of achievement.
  • People may think you’re self-promoting.
  • Being perceived as a “tall poppy”.
  • Believing that success may not be all it’s cracked up to be, and that it might change you, but not for the better.

Fear of Failure Signals

Some people’s motivation to avoid failure often exceeds their motivation to succeed, which can cause them to unconsciously sabotage their chances of success.

  • Cognitive biases or irrational beliefs act as filters distorting reality.
  • Past pains felt from being vulnerable, abandoned, punished, blamed, or shamed in front of others, or of being disapproved of, envied, rejected, or disliked by others.
  • Fearful of looking “bad” or incompetent, in front of others.
  • Feeling threatened, a sense of danger or potential punishment, causing them to move away (freeze, fight, take flight) from confronting dangerous, painful situations as threatening.

Overcoming Procrastination Tips 

  • Co-create a safe, compassionate, and collaborative relationship

As most people find safety in procrastination at some point in time, to be an effective leader, manager, or coach in these situations, it’s important to be empathic and compassionate and “work with” where they may be coming from in terms of underlying self-beliefs:

  • “I don’t want to get hurt”.
  • “I don’t want to expose myself to risk”.

As well as respond constructively to their thoughts about how others may see them including:

  • Lacking confidence,
  • Hesitant.

Noticing how they may perceive themselves:

  • “I am nowhere near as good as I should be”.
  • “I am inadequate.”

Then by paying deep attention, and being intentional in co-creating a safe creative, and collaborative conversation that builds safety, permission, rapport, and trust by being:

  • Gentle and non-threatening, being both kind and courageous,
  • Aware of being both too direct, fast, and too laid back.
  • Providing gentle guiding, assurance, and lots of patience.
  • Focused on encouraging engagement, commitment, and confidence towards setting and achieving the desired outcome.

Ultimately enabling and equipping people to overcome procrastination creates openings and thresholds for learning and growth, to become the best person, to themselves and others, they can possibly be, and achieve the changes they wish to make in the world.

Find out about The Coach for Innovators Certified Program, a collaborative, intimate, and deep personalized innovation coaching and learning program, supported by a global group of peers over 8-weeks, starting May 2022. It is a blended learning program that will give you a deep understanding of the language, principles, and applications of a human-centered approach to innovation, within your unique context. Find out more.

Contact us now at mailto:janet@imaginenation.com.au to find out how we can partner with you to learn, adapt, and grow your business, team and organisation through disruption.

Image credit: Unsplash

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Designing Memorable Customer Experiences That Go Beyond Satisfaction

Designing Memorable Customer Experiences That Go Beyond Satisfaction

GUEST POST from Chateau G Pato

In an era where product functionality and technical perfection become table stakes, the competitive landscape is defined not just by what companies offer, but by the kind of experiences they create. While focusing on customer satisfaction is crucial, it is designing memorable customer experiences that truly sets a brand apart and fosters loyalty.

Let’s delve into how businesses can transcend basic satisfaction to create unforgettable interactions with their customers. Here, I present two case studies that demonstrate how intentional, human-centric design can transform ordinary transactions into lasting memories.

Case Study 1: Disney’s Enchanted Customer Journeys

Disney, synonymous with magic and wonder, has long been a master at designing memorable customer experiences. At its core, Disney understands that every customer touchpoint contributes to the overall guest experience. From the moment visitors step foot into a Disney park, they are enveloped in a world meticulously designed to delight.

This goes beyond the attractions and entertainment offerings. Disney’s customer experience strategy includes thoughtful details like utilizing cutting-edge technology with the Disney Genie service to provide personalized itinerary suggestions and optimize ride times. Cast members, as employees are called, are trained to engage personally with guests, often going out of their way to sprinkle a bit of pixie dust, turning ordinary moments into extraordinary memories.

Lessons to Learn: The Disney case highlights the importance of orchestrating end-to-end journeys rather than isolated interactions. Companies should focus on the emotional responses they want to evoke and tailor every aspect of the customer’s journey to reinforce that feeling.

Case Study 2: Zappos – Delivering Happiness

Zappos, the online retailer known for its customer service, embodies the philosophy of injecting wow into every customer interaction. Their customer service approach is more than just the call center operations; it’s a core value.

One story that epitomizes Zappos’ unique approach is when a customer needed to return shoes following a family member’s death. Not only did Zappos take back the shoes, but without asking, they sent a bouquet of flowers to express their condolences. By empowering employees to go above and beyond, Zappos creates moments of emotional engagement that resonate deeply with their customers.

Lessons to Learn: Zappos encourages businesses to view every customer interaction as an opportunity to build a lasting relationship. By fostering a culture where employees are empowered to make impactful decisions, extraordinary moments naturally follow.

The Road to Memorable Experiences

To create truly memorable customer experiences, it is essential to recognize the human elements in every interaction. Businesses should start by understanding what their customers value and expect, then look for innovative ways to exceed those expectations.

Creating memorable experiences often involves empowering employees to think beyond the immediate task. This requires a shift in mindset and culture, where surprise and delight are ingrained in the business ethos. Companies must invest in training and tools that help employees anticipate and respond to needs proactively.

Moreover, storytelling can be a powerful tool in customer experience design. It allows brands to engage customers emotionally and make touchpoints memorable. By crafting a narrative that customers resonate with, companies can transform transactions into meaningful stories.

Insights from Beyond

To explore more on how to foster environments that cultivate innovation and creativity in designing experiences, read Art Inteligencia’s insights into ‘The Impact of Leadership on Innovation Culture’ here.

Additionally, learn about the psychological underpinnings of successful customer experience strategies in my article on ‘The Nine Innovation Roles’ at this link.

The Path Forward

Embedding memorable customer experiences in the business model requires a deliberate effort to weave empathy, creativity, and empowerment into the fabric of operations. By steering beyond satisfaction towards delight and emotional resonance, businesses can architect experiences that are not only memorable but also transformative.

In an increasingly competitive world, it is those who make the ordinary remarkable that will inspire customer loyalty and set themselves apart as pioneers in customer experience excellence.

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: Pixabay

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Real Change Requires a Majority

Real Change Requires a Majority

GUEST POST from Greg Satell

“Don’t worry about people stealing your ideas,” said the computing pioneer Howard Aiken. “If your ideas are any good, you’ll have to ram them down people’s throats,” and truer words were scarcely ever spoken. We tend to think that if an idea has merit, everybody will immediately recognize its value, but that’s almost never true.

Ignaz Semmelweis, quite famously, advocated for hand washing at hospitals, but was ostracized, not celebrated, for it and would himself die of an infection contracted under care before his idea caught on. William Coley discovered cancer immunotherapy over a century ago, but was thought by many to be some sort of a quack.

Good ideas fail all the time. Part of the problem is that people who believe passionately in an idea feel compelled to win over the skeptics. That’s almost always a mistake. The truth is that the difference between success or failure often has nothing to do with the inherent value of an idea, but where you choose to start and the best place to start, is with a majority.

The Fundamental Fallacy of Change Management

Pundits tell us that change is inevitable, so we need to create a sense of urgency about it. They say we must “innovate or die,” because those who don’t “get it” are dinosaurs and, much like their reptilian brethren, they are bound to die an awful, painful death once the asteroid hits (and, the implication is, they will deserve it too).

History, however, shows us exactly the opposite. People like Ignaz Semmelweis and William Colely had truly groundbreaking ideas that could have saved millions of lives if they were adopted earlier. Nevertheless, those in the medical establishment that thwarted their efforts thrived while the innovators themselves suffered greatly professionally and personally.

It’s not just the medical profession either. Take a short tour throughout history and it becomes clear that unjust and incompetent regimes can have remarkable staking power. The status quo always has inertia on its side and rarely yields its power gracefully. A bad idea can last for decades, or centuries even.

The fundamental fallacy of change management is that it is essentially a communication exercise, that change fails because people don’t understand it well enough and if you explain it to them in sufficiently powerful terms, they will embrace it. The truth is that change fails because others oppose it in ways that are devious, underhanded and deceptive.

That needs to be your primary design constraint.

The Power of Local Majorities

Merely telling someone about change, no matter how artfully, is unlikely to be effective, but that doesn’t mean that people are immune to persuasion. In fact, there are decades of studies that show that people naturally conform to ideas that are widely held by others around them.

Consider this famous series of conformity experiments conducted by Solomon Asch in the 1950s. The design of the study was simple, but ingenious. Asch merely showed a group of people pairs of cards like these:

Asch Experiment Greg Satell

Each person in the group was asked to match the line on the left with the line of the same length on the right. However, there was a catch: almost everyone in the room was a confederate who gave the wrong answer. When it came to the real subjects’ turn to answer, most conformed to the majority opinion, even when it was obviously wrong.

Clearly, most ideas are not nearly that unambiguous, which is why, despite having made breakthrough discoveries, Semmelweis and Coley had so much trouble getting traction for them. The majority of the medical establishment was resistant and Semmelweis and Coley found themselves in the minority. Majorities routinely push back against minorities.

The Threshold Model of Collective Action

One important aspect of Asch’s conformity studies was that the results were far from uniform. A quarter of the subjects never conformed, some always did, and others were somewhere in the middle. We all have different thresholds to adopt an idea or to partake in an action, based on factors like confidence in our ability to make judgments and expected punishments or rewards for getting it right or wrong.

The sociologist Mark Granovetter addressed this issue with his threshold model of collective behavior. As a thought experiment, he asks us to imagine a diverse group of people milling around in a square. Some are natural deviants, always ready to start trouble, most are susceptible to provocation in varying degrees and the remainder is made up of unusually solid citizens, almost never engaging in antisocial behavior.

Threshold Model Greg Satell

You can see a graphic representation of how the model plays out above. In the example on the left, a miscreant throws a rock and breaks a window. That’s all it takes for his friend next to him to start and then others with slightly higher thresholds join in as well. Before you know it, a full-scale riot ensues.

The example on the right is slightly different. After the first few troublemakers start, there is no one around with a low enough threshold to join in. Rather than the contagion spreading, it fizzles out, the three miscreants are isolated and little note is made of the incident. Although the groups are outwardly similar, a slight change in conformity thresholds can make a big difference.

It’s a relatively simplistic example, but through another concept Granovetter developed called the strength of weak ties, we can see how it can lead to large scale change in the final graphic below as an idea moves from group to group.

From Thresholds to Cascades Greg Satell

The top cluster is identical to the one in the first example and a local majority forms. However, no cluster is an island because people tend to belong to multiple groups. For example, we form relationships with people in our neighborhood, from work, religious communities and so on. So an idea that saturates one group soon spreads to others.

Notice how the exposure to multiple groups can help overcome higher thresholds of resistance, because of the influence emanating from other groups through weak links. When you start with a majority, even if it is a small, local majority, an idea can gain traction, move from cluster to cluster and almost infinitely scale.

As I explain in my book, Cascades, there is significant evidence that this is how ideas actually do spread in the real world. The crucial point here is that it makes a really big difference where you choose to start. If you start with people who are enthusiastic about your idea, you are much more likely to succeed than if you choose people who are resistant.

So rather than trying to convince everybody at once, you are much better of identifying people who are likeminded and working on a Keystone Change that can for them basis of a larger transformation.

Working to Attract, Rather Than Overpower

When we look at the stories of Semmelweis and Coley through the prism of local majorities and resistance thresholds, we can see the mistake that they made. Having made truly breakthrough discoveries, they naturally assumed that others would see value in them. Instead, they ran headlong into a highly resistant majority and got squashed.

In my work helping leaders drive organizational transformations, I see this happen all the time. People who believe passionately in an idea naturally assume that others will “see the light.” Not surprisingly, they want to move quickly and overpower any resistance. This is especially true if they feel that they have institutional power behind them.

Yet that is almost always a mistake. There is a reason why the vast majority of organizational transformations fail, even though they typically have big budgets and C-Suite support behind them. To drive meaningful, lasting change you can’t rely on overpowering resistance, but must work to attract and empower genuine support.

That means you need to start with a majority. In the beginning, that may mean starting with a small, local majority— say, three people in a room of five. You can always expand a majority out, but once you find yourself in the minority, you will immediately feel pushback. The secret to overcoming resistance to an idea and driving it forward is understanding that you get to choose where to start.

Revolutionary change always starts with the art of choosing wisely.

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

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Harnessing AI for Breakthrough Innovation

Harnessing AI for Breakthrough Innovation

GUEST POST from Art Inteligencia

In the rapidly evolving digital landscape, Artificial Intelligence (AI) is not just a tool for optimization, but a catalyst for breakthrough innovation. Organizations worldwide are leveraging AI to transform industries, redefine customer experiences, and create unprecedented value. In this article, we explore how AI can drive innovative growth and provide real-world case studies demonstrating its potential. We also include links to additional resources for those looking to deepen their understanding of this transformative technology.

Case Study 1: AI in Healthcare – Revolutionizing Diagnosis

The healthcare industry stands to gain immensely from AI, particularly in improving diagnostic accuracy and efficiency. One standout case is that of Google’s DeepMind, which has partnered with Moorfields Eye Hospital in London to develop an AI system capable of diagnosing complex eye diseases as accurately as world-leading experts. Utilizing deep learning algorithms, the system analyzes thousands of retinal scans to detect conditions like diabetic retinopathy and age-related macular degeneration.

This breakthrough has not only increased diagnostic speed but also enhanced accessibility to expert-level care, thereby improving patient outcomes. The AI’s ability to learn and improve from vast datasets ensures continuous innovation in diagnostic technology, underscoring AI’s game-changing role in healthcare.

Case Study 2: AI in Retail – Personalizing Customer Experience

Retail is another sector where AI is reshaping business models and consumer engagement. Consider the case of Stitch Fix, an online personal styling service that combines data science and human expertise to deliver personalized fashion recommendations. By analyzing customer preferences, purchasing history, and social media behavior, Stitch Fix’s AI system curates clothing options tailored to each individual’s taste.

The system not only predicts customer preferences with remarkable accuracy but also helps the company optimize inventory, reducing waste and costs. This approach has enabled Stitch Fix to offer a highly customized shopping experience, setting a new standard in the retail industry and highlighting AI’s potential to innovate traditional business practices.

The Strategic Framework for AI-Driven Innovation

To harness AI for breakthrough innovation, organizations need a strategic framework that integrates AI into the core of their operations. Here are key steps to consider:

  1. Identify Opportunities: Begin with a comprehensive exploration of areas where AI can create the most impact. Look for patterns, inefficiencies, and unmet needs within your industry.
  2. Leverage Data: AI thrives on data. Ensure your organization has a robust data infrastructure to gather, store, and analyze relevant data.
  3. Foster Collaboration: Encourage cross-disciplinary teams, combining AI expertise with industry know-how, to identify and implement innovative solutions.
  4. Iterate and Scale: Start with pilot projects, learn from iterations, and scale successful innovations across the organization.

Further Reading

For those looking to explore more about the intersection of AI and innovation, I recommend checking out the following articles:

Conclusion

AI holds the potential to drive transformative change across industries by enabling breakthrough innovations. By intelligently integrating AI into strategic operations, organizations can unlock new value, create sustainable competitive advantages, and embark on unprecedented growth trajectories. The case studies of Google’s DeepMind and Stitch Fix exemplify how AI can be harnessed to revolutionize industries and enhance user experiences. As we continue to explore the possibilities, the role of AI in shaping the future of innovation becomes increasingly vital.

This article provides a comprehensive analysis of how AI can be utilized for breakthrough innovation, supplemented by two case studies and links to further resources on this website.

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: Pixabay

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What Entrepreneurship Education Really Teaches Us

What Entrepreneurship Education Really Teaches Us

It’s been 100 years since Harvard Business School began using the case study method. Beyond teaching specific subject matter, the case study method excels in instilling meta-skills in students. This article explains the importance of seven such skills: preparation, discernment, bias recognition, judgement, collaboration, curiosity, and self-confidence.

Now, project-based learning has emerged as another experiential learning model.

Some educators define meta-skills as a group of long-lasting abilities that allow someone to learn new things more quickly.

I have been teaching biomedical and clinical innovation and entrepreneurship for several years now and my students have told me they learned much more than how to start a company or launch an organizational initiative, In fact, we start every course with defining entrepreneurship as the pursuit of opportunity under volatile, uncertain, complex and ambiguous conditions (VUCA) with the goal of creating stakeholder defined value through the deployment of innovation using a VAST business model to achieve the quintuple aims.

Here is what I learned teaching entrepreneurship to 1st year medical students at the University of Colorado School of Medicine.

Knowledge is what you know. Skills are things you learn how to do. Abilities are your natural talents. Competencies are what you need to know how to do to accomplish a given goal. Meta-KSAs are the things that you know, learn and do that are transferable.

Here is a list entrepreneurial virtues and competencies.

Other entrepreneurial meta-KSAs you will learn about are:

  1. Failure
  2. Selling things, including yourself
  3. Stories
  4. Fear
  5. Emotions
  6. Empathy
  7. Pattern recognition
  8. Testing and experimenting
  9. Data generation and analysis
  10. Resilience and perseverance
  11. Mindset
  12. Questioning

Entrepreneurship education and training is more about learning life skills that are used to create value, not just companies. We should start teaching it in pre-school. The longer we wait, the harder it is to learn and apply the meta-KSAs. It is unlikely that the Facebook version of Meta will be as helpful.

Image credit: Pixabay

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Navigating Innovation and Change Like a Visionary Leader

Navigating Innovation and Change Like a Visionary Leader

GUEST POST from Chateau G Pato

In today’s rapidly evolving business landscape, companies are constantly facing the pressures of innovation and change. The leaders who can effectively navigate these waters not only secure their companies’ survival but also thrive through dynamic market shifts. Visionary leaders—those who cultivate a culture of creativity while managing change—are becoming indispensable. Let’s explore how some have successfully harnessed innovation and change to propel their organizations forward.

The Power of Purpose-Driven Leadership

Visionary leadership begins with a clear understanding of the organization’s core purpose. This is more than just a mission statement; it’s a guiding light that informs strategy, drives motivation, and fosters resilience amidst change.

Case Study 1: Indra Nooyi at PepsiCo

Under Indra Nooyi’s leadership, PepsiCo underwent a transformative change balancing profit with purpose. Her ‘Performance with Purpose’ vision not only refocused the company’s portfolio towards health-conscious products but also embedded sustainability into its business strategy. Nooyi recognized that long-term success depended on aligning business practices with the changing expectations of society. The introduction of healthier product lines and sustainable packaging are testaments to her visionary leadership, resulting in increased market shares and brand loyalty.

Nooyi’s approach illustrates how visionary leaders integrate their organization’s core purpose into innovation strategies, ensuring that change efforts resonate with both consumers and stakeholders.

Fostering a Culture of Innovation

Visionary leaders know that innovation doesn’t just happen; it requires a supportive environment where creativity is encouraged and risk-taking is tolerated. Creating such an environment involves more than installing bean bags and coffee machines—it requires a fundamental shift in how failure and success are perceived within the organization.

Case Study 2: Satya Nadella at Microsoft

When Satya Nadella took over as CEO in 2014, Microsoft was seen as a technology behemoth that had lost its innovative edge. Nadella committed to fostering a culture of learning and collaboration. The ‘growth mindset’ philosophy he introduced encouraged employees to embrace challenges and learn from failures. Under Nadella’s leadership, Microsoft shifted its focus to cloud computing, AI, and open-source software, areas where it has since become a dominant player.

This cultural transformation at Microsoft showcases how visionary leaders can reinvigorate innovation by altering organizational mindsets and encouraging cross-departmental collaboration.

Embracing and Managing Change

While innovation sets the stage for what’s possible, it’s the ability to manage change that ensures its implementation. Visionary leaders understand the human side of change—recognizing that people are at the heart of every successful transformation.

To delve deeper into effective change management techniques, consider exploring my articles on The Change Curve Model and Emotional Commitment to Change. These resources provide valuable insights into leading your team through the complexities of change.

Conclusion: The Legacy of Visionary Leaders

Visionary leaders leverage their foresight to drive transformative changes, fostering innovative solutions while ensuring alignment with organizational values. They balance stability with flexibility, profit with purpose, and short-term wins with long-term objectives.

The legacy of leaders like Indra Nooyi and Satya Nadella demonstrates that with the right vision, a commitment to cultural shifts, and a keen understanding of change management, any organization can navigate the tumultuous waters of innovation and emerge stronger. As we look to the future, it is clear that the leaders who can navigate these challenges with foresight and empathy will continue to shape the world of business.

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: Pexels

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Designing for Humans

Bridging Empathy and Innovation

Designing for Humans - Bridging Empathy and Innovation

GUEST POST from Art Inteligencia

In a world that is constantly evolving, the need to innovate is imperative. However, innovation should not be pursued at the expense of human-centric design. To truly succeed, businesses and innovators must build a bridge between empathy and innovation, ensuring that every solution aligns with the deeper needs, desires, and behaviors of real people. As a thought leader in human-centered change and innovation, I’m passionate about this intersection and how it can lead to transformational success.

Harnessing Empathy in Design

Empathy is at the heart of human-centered design. It involves stepping into the shoes of your users and understanding their experiences, pain points, and motivations. By prioritizing empathy, design teams can uncover insights that traditional data analysis might miss, leading to more meaningful, impactful innovations.

Case Study 1: IDEO and the Design of the First Apple Mouse

In the early 1980s, Apple collaborated with the design and innovation consultancy IDEO to create the first computer mouse for personal computers. While the technical design and innovation were crucial, IDEO’s commitment to understanding the everyday user’s experience was what set this project apart.

By observing how people interacted with computers, IDEO was able to design a mouse that was intuitive and easy to use. This focus on user experience and empathy led to a product that not only met functional requirements but also transformed how people interacted with technology, paving the way for Apple’s user-centric philosophy.

Bridging Empathy and Innovation through Collaborative Design

Collaborative design is a method of integrating diverse perspectives and expertise into the innovation process. By bringing together cross-functional teams and incorporating feedback from users, organizations can ensure that solutions are not only innovative but also grounded in real-world needs.

Case Study 2: Airbnb’s Evolution through Storytelling and Empathic Research

Airbnb’s journey from a struggling startup to a global hospitality powerhouse is a testament to the power of empathy and storytelling. The company invested in deeply understanding the journey and experiences of their users – both hosts and guests.

Through empathic research and storytelling workshops, Airbnb’s design team was able to identify key pain points and emotional highs present in their customer journey. This enabled them to design a platform that addresses both practical and emotional needs, fostering trust and engagement with the brand.

The Path Forward: Empathy-Driven Innovation Cultures

For organizations looking to replicate such success, fostering a culture that values empathy and innovation is paramount. By investing in ongoing user research, promoting cross-disciplinary collaborations, and prioritizing human-centered outcomes, businesses can create products and services that resonate deeply with users.

To explore further, check out my other articles on Human-Centered Innovation: The New Imperative and Empathic Research: Unlocking Insights for Breakthrough Innovation for deeper insights on embedding empathy into the innovation process.

As we venture into the future, it is clear that the most successful innovations will be those that are intimately connected with human needs and aspirations. By bridging empathy and innovation, we can create a world where technology and design truly enhance the human experience.

Please make sure the links provided are reviewed as they are conceptual in this context. Confirm their existence on your site at the actual URLs.

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: Pexels

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