What Innovation is Really About

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GUEST POST from Stefan Lindegaard

Sometimes a short and simple word-play brings out some great reflection.

Resistance kills Change
Fear kills Experimentation
Bureaucracy kills Speed
Control kills Flexibility
Tradition kills Disruption
Pressure kills Creativity
Hierarchy kills Agility
Silos kills Collaboration
Organizational inertia trumps Talent

Now, read that RIGHT to LEFT.

This is in many ways the essence of innovation in my view.

Image Credits: Stefan Lindegaard

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Change Behavior to Change Culture

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Change Behavior to Change Culture

GUEST POST from Mike Shipulski

There’s always lots of talk about culture and how to change it. There is culture dial to turn or culture level to pull. Culture isn’t a thing in itself, it’s a sentiment that’s generated by behavioral themes. Culture is what we use to describe our worn paths of behavior. If you want to change culture, change behavior.

At the highest level, you can make the biggest cultural change when you change how you spend your resources. Want to change culture? Say yes to projects that are different than last year’s and say no to the ones that rehash old themes. And to provide guidance on how to choose those new projects create, formalize new ways you want to deliver new value to new customers. When you change the criteria people use to choose projects you change the projects. And when you change the projects people’s behaviors change. And when behavior changes, culture changes.

The other important class of resources is people. When you change who runs the project, they change what work is done. And when they prioritize a different task, they prioritize different behavior of the teams. They ask for new work and get new behavior. And when those project leaders get to choose new people to do the work, they choose in a way that changes how the work is done. New project leaders change the high-level behaviors of the project and the people doing the work change the day-to-day behavior within the projects.

Change how projects are chosen and culture changes. Change who runs the projects and culture changes. Change who does the project work and culture changes.

Image credits: 1 of 850+ FREE quote slides available for download at http://misterinnovation.com

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The Enemy of Customer Service is …

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The Enemy of Customer Service is ...

GUEST POST from Shep Hyken

I recently had the wonderful opportunity to interview Brian Hamilton on Amazing Business Radio. Brian is the chairman of LiveSwitch and an entrepreneur who has started, built up, and sold numerous businesses. At the end of every show, I ask, “What last nugget of wisdom can you share with our listeners?” He shared an amazing answer:

“The enemy of customer service is pride.”

As he shared what he meant by this profound statement, I knew it was going to be something I would write and talk about.

If you’ve been following my work, you know one of my favorite concepts is The Customer Is NOT Always Right! Let’s use that as a starting point to understand how pride can be the enemy of customer service.

When we’re taught (or told) by the boss that the customer IS always right, and one day a customer makes a statement that isn’t right or accurate, we have conflict. Or maybe the customer is argumentative. We have been taught and told – maybe even ordered – to treat that customer as if they are right. But they are not. For example, what happens if you have a liberal 30-day return policy and the customer comes to return the item on day 60, insisting they were told the store had a 90-day return policy? Can you see the conflict? They are clearly wrong, and that conflict is where pride kicks in and gets in the way of good customer service.

Enemy of Customer Service is Pride

For some, it’s hard to put pride aside and empathize and sympathize with the customer’s errant point of view. While we may not directly tell the customer they are wrong, we say something that is combative or argumentative – even if we say it nicely. When pride gets in the way, we might find ourselves thinking:

“I know more than this customer.”
“They clearly don’t understand how our system works.”
“If they just listened to reason, they would realize they’re wrong.”

Those types of thoughts are our pride getting in the way of serving our customers at the highest level. Instead, consider this:

Listen without interrupting, even if you know they’re wrong.
When you do finally talk, choose the right words to avoid escalating the situation.
Empathize and acknowledge their frustration or concern.
Focus on finding a solution rather than proving who’s right.

Remember, the goal isn’t to win an argument. It’s to win the customer. (Another concept I’ve preached for years.) When we let go of pride and focus on helping, we create better outcomes for everyone involved. So, the next time you find yourself in a situation where you know the customer is wrong, ask yourself, “What’s more important, being right or being helpful?” The answer will guide you toward better customer service. Don’t let pride get in the way of good customer service!

Image Credit: Shep Hyken, Pexels

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Re-Framing Your Strategy for the Chaos of 2025

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Re-Framing Your Strategy for the Chaos of 2025

GUEST POST from Geoffrey A. Moore

Spring is in the air, which brings to mind the season’s favorite sport — no, not baseball, strategic planning! Let’s face it, 2025 has been a tough year for most of us (and it’s still early days), with few annual plans surviving first contact with an economy that was not so much sluggish as simply hesitant. With the exception of generative AI’s growing impact, most technology sectors have been more or less trudging along, and that begs the question, what do we think we can do with the rest of 2025? Time to bring out the strategy frameworks, polish up those crystal balls that have been a bit murky of late, and chart our course forward.

This post will kick off a series of blogs about framing strategy, all organized around a meta-model we call the Hierarchy of Powers:

The inspiration for this model came from looking at how investors prioritize their portfolios. The first thing they do is allocate by sector, based primarily on category power, referring both to the growth rate of the category as well as its potential size. Rising tides float all boats, and one of the toughest challenges in business is how to manage a premier franchise when category growth is negative. In conjunction with assessing our current portfolio’s category power, this is also a time to look at adjacent categories, whether as threats or as opportunities, to see if there are any transformative acquisitions that deserve our immediate attention.

Returning to our current set of assets, within each category the next question to answer is, what is our company power within that category? This is largely a factor of market share. The more share a company has of a given category, the more likely the ecosystem of partners that supports the category will focus first on that company’s installed base, adding more value to its offers, as well as to recommend that company’s products first, again because of the added leverage from partner engagement. Marketplaces, in other words, self-organize around category leaders, accelerating the sales and offloading the support costs of the market share leaders.

But what do you do when you don’t have company power? That’s when you turn your attention to market power. Marketplaces destabilize around problematic use cases that the incumbent vendors do not handle well. This creates openings for new entrants, provided they can authentically address the customer’s problems. The key is to focus product management on the whole product (not just what your enterprise supplies, but rather, everything the customer needs to be successful) and to focus your go-to-market engine on the target market segment. This is the playbook that has kept Crossing the Chasm on entrepreneur’s book lists some thirty years in, but it is a different matter to execute it in a large enterprise where sales and marketing are organized for global coverage, not rifle-shot initiatives. Nonetheless, when properly executed, it is the most reliable play in all of high-tech market development.

If market power is key to taking market share, offer power is key to maintaining it, both in high-growth categories as well as mature ones. Offer power is a function of three disciplines—differentiation to create customer preference, neutralization to catch up to and reduce a competitor’s differentiation, and optimization to eliminate non-value-adding costs. Anything that does not contribute materially to one of these three outcomes is waste.

Finally, execution power is the ability to take advantage of one’s inertial momentum rather than having it take advantage of you. Here the discipline of zone management has proved particularly valuable to enterprises who are seeking to balance investment in their existing lines of business, typically in mature categories, with forays into new categories that promise higher growth.

In upcoming blog posts I am going to dive deeper into each of the five powers outlined above to share specific frameworks that clarify what decisions need to be made during the strategic planning process and what principles can best guide them. In the meantime, there are still three more quarters in 2025 to make, and we all must do our best to make the most of it.

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

Image Credit: Pexels, Geoffrey Moore

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Three Practical Keys to Managing Uncertainty

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Three Practical Keys to Managing Uncertainty

GUEST POST from Robyn Bolton

“A Few Good Men” is one of my favorite movies. As much as I love Jack Nicholson’s classic line, “You can’t handle the truth!” lately, I’ve been thinking more about a line delivered by Lt. Daniel Kaffee, played by Tom Cruise – “And the hits just keep on comin’.”

But, just like Lt. Kaffee had to make peace with Lt. Cdr JoAnne Galloway joining his Cuba trip, we must make peace with uncertainty and find the guts to move forward.

This is much easier said than done, but these three steps make it possible. Even profitable.

Where We Begin

Imagine you’re the CEO of Midwest Precision Components (MPW), a $75 million manufacturer of specialized valves and fittings. Forty percent of your components come from suppliers now subject to new tariffs, which, if they stay in effect, threaten an increase of 15% in material costs. This increase would devastate your margins and could require you to reduce staff.

Your competitors are scrambling to replace foreign suppliers with domestic ones. But you know that such rapid changes are also risky since higher domestic prices eat into your margins (though hopefully less than 15%), and insufficient time to quality test new parts could lead to product issues and lost customers. And all this activity assumes that the tariffs stay in place and aren’t suddenly paused or withdrawn.

Three Steps Forward

Entering the boardroom, you notice that the CFO looks more nervous than usual, and your head of Supply Chain is fighting a losing battle with a giant stack of catalogs. Taking a deep breath, you resolve to be creative, not reactive (same letters, different outcomes), and get to work.

Step 1: Start with the goal and work backward. The goal isn’t changing suppliers to reduce tariff impact. It’s maintaining profit margins without reducing headcount or product quality. With your CFO, you whiteboard a Reverse Income Statement, a tool that starts with required (not desired) profits to calculate necessary revenues and allowable costs. After running several scenarios, you land on believable assumptions that result in no more than a 4% increase in costs.

Step 2: Identify and prioritize assumptions. With the financial assumptions identified, you ask the leadership team to list everything that must be true to deliver the financial assumptions, their confidence that each of their assumptions is true, and the impact on the business and its bottom line if the assumption is wrong.

Knowing that your head of Sales is an unrelenting optimist and your Supply Chain head is mired in a world of doom and gloom, you set a standard scale: High confidence means betting your annual salary, medium is a team dinner at a Michelin-starred restaurant, and low is a cup of coffee. High impact puts the company out of business, medium requires major shifts, and low means extra work but nothing crazy.

Step 3: Attack the deal killers. Going around the room, each person lists their “Deal Killers,” the Low Confidence – High Impact assumptions that pose the highest risk to the business. After some discussion to determine the primary assumptions at the beginning of causal chains, you select two for immediate action: (1) Alternative domestic suppliers can be found for the two highest-cost components, and (2) Current manufacturing processes can be quickly adapted to accommodate parts from new suppliers.

A Plan. A Timeline. A Sense of Calm.

With this new narrowed focus, your team sets a shared goal of resolving these two assumptions within 30 days. Together, they set clear weekly deliverables and reallocate time and people to help meet deadlines.

A sense of calm settles on the team. Not because they have everything figured out, but because they know exactly what the most important things to be done are, that those things are doable, and they are working together to do them.

How could you use these three steps to help you move forward through uncertainty?

Image credit: Pixabay

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We Need to Stop Rooting for Change

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We Need To Stop Rooting For Change

GUEST POST from Greg Satell

Today, everyone seems to want to associate themselves with change. Jeffrey Immelt, General Electric’s former CEO, loved to call his firm a 124 year-old startup. Its value fell by 30% under his tenure and would later collapse. Bill Gates pointed out that the culprit wasn’t innovation or disruption, but basic mismanagement.

It seems that, these days, Immelt’s leadership is closer to the rule than the exception. Everybody wants to be an innovator. Nobody wants to be associated with the status quo. Even political conservatives describe themselves as a “movement,” a seeming contradiction in terms. Change has become gospel, an end in itself rather than a mere means to an end.

The truth is that innovation is less about new ideas than it is about identifying meaningful problems. Too much happy talk about change can actually undermine meaningful transformation. If your focus on the fabulous yonder obscures your view into the day-to-day, you’re most likely headed for trouble. We need to start taking change more seriously.

Change Is Hard. People Are Struggling

Humans struggle to adapt. Our brains are not wired for change, but build synaptic pathways based on past experiences. These can change over time, but with some difficulty. We are also greatly influenced by those around us, whose brains have been shaped by similar experiences. Finally, there are often genuine switching costs that need to be overcome.

The notion that transformation can be challenging is nothing new. What managers often fail to account for, however, is that change never happens in a vacuum. It must be seen in context of everything else that’s going on in people’s lives, including pressures related to family, economic and health concerns.

Consider that research points to a dramatic increase of anxiety and depression since the start of the pandemic. Another study reported in Harvard Business Review found that 76% of employees in 2021 reported at least one mental health symptom, up from 59% in 2019 and 50% have reported leaving a job due to mental health concerns, compared to 34% two years earlier. Those are dramatic increases on already high levels.

Yet even before the pandemic there were signs of trouble. A 2014 report by PwC revealed that 65% of respondents in corporations cited change fatigue, 44% of employees complained they don’t understand the change they’re being asked to make, and 38% say they don’t agree with it. Should we be surprised that so many change initiatives fail?

Too Much Early Talk Ignites Resistance

Managers launching a new initiative often seek to start with a bang. They work to gain approval for a sizable budget as a sign of institutional commitment. They recruit high-profile executives, arrange a big “kick-off” meeting and look to move fast, gain scale and generate some quick wins. All of this is designed to create a sense of urgency and inevitability.

Yet this approach can often backfire. Any time you ask people to change what they think or how they act, there will be some who won’t like it and they will work to undermine you in ways that are often dishonest, underhanded and deceptive. Starting a transformation initiative with a big kickoff just gives them an early warning that they’d better get started sabotaging you or change might actually take place.

Unfortunately, there are perverse incentives involved in many initiatives. When change involves new capability, there are inevitably vendors involved and consultants are brought in to manage the process. Often, in addition to helping to design and procure systems, these consultants are given the assignment for organizational change management as well.

At first, it may seem intuitive and sensible that the same vendor that designs the system helps implement the program. However, what is often missed is that these consultants are much more heavily financially incentivized to close the deal, which can often be worth hundreds of millions of dollars, than to drive genuine long-term transformation.

So it shouldn’t be surprising that what passes for “organizational change management” is often little more than an internal communication strategy and a training program implementation. That clearly doesn’t suffice.

Change Is Nonlinear. There Are Advantages To Starting Slow

People who are passionate about change naturally want it to happen as soon as possible. This is especially true of action-oriented managers, who pride themselves on executing a plan quickly and efficiently. There are often informal organizational incentives as well. Executives who are seen to be hard-charging and who “get things done” can be more likely to move up the corporate ladder.

Yet consider the case of Gandhi and the struggle for Indian independence. Soon after returning to India from South Africa, he called for nationwide strikes in response to the repressive Rowlatt Act. The people immediately rose up, but things quickly spun out of control and ended in tragedy. A decade later, he learned from his mistake and set out on his Salt March with just a small, disciplined cadre, which would inspire the world and help lead to Indian Independence.

Similar strategies have proven highly effective in organizational transformations. When Wyeth Pharmaceuticals began its shift to lean manufacturing, it started with a single team in a single plant, but success there led to a transformation involving 17,000 employees. When Experian sought to shift to a cloud-based enterprise, it started with internal API’s that had limited effect on its business, but helped lead to genuine and complete change.

What each of these had in common is that they started with a keystone change, which had a concrete and tangible goal, involved multiple stakeholders and paved the way for future change. While the initial wins were small, they showed what was possible and, because they were successful, they were able to build momentum and grow exponentially.

Change isn’t linear. Success grows exponentially on success. That’s why you often need to start slow to move fast.

Making Change Meaningful

My friend Srdja Popović once told me that the goal of a revolution should be to become mainstream, to be mundane and ordinary. If you are successful it should be difficult to explain what was won because the previous order seems so unbelievable. Yet many leaders approach change initiatives as if they were swashbuckling heroes in their own action movie.

The simple truth is that every change initiative starts out weak and vulnerable, without a track record of success. People are bound to be suspicious. They already have everyday struggles and don’t want someone else’s idea to add to their burden. Most often, they’ll pay lip service, take a “wait and see” approach and then turn away at the first sign of trouble.

The problem with cheerleading change is that it puts the cart before the horse. People don’t embrace change because you came up with a fancy slogan, they adopt what they find meaningful, that creates genuine value to their lives and their work. Without that, all the happy talk just seems like a con.

We need to have more reverence for the mundane and ordinary. For better or worse, it works and it’s what people know. To create genuine transformation we need to get out of the business of selling ideas and into the business of selling success. If we can help allies to make change successful, even on a small scale, they can bring in others who bring in others still.

That can’t be done through persuasion, we have to start by identifying people who are already enthusiastic about change. Change isn’t about communication, but empowerment.

— Article courtesy of the Digital Tonto blog
— Image credits: Pexels

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Managing Team Conflict

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Managing Team Conflict

GUEST POST from David Burkus

Conflict within a team is an inevitable part of any work environment. The diverse perspectives, ideas, and solutions that team members bring to the table can often lead to disagreements and conflicts. However, it’s important to remember that team conflict isn’t necessarily a bad thing. In fact, it can be beneficial in many ways. It can help identify blind spots, explore different solutions, and find innovative ways to deliver on objectives. The key lies in managing these conflicts effectively.

Effective conflict management can lead to a more engaged team, improved performance, and overall growth. In this article, we will outline how to manage team conflict. We will delve into five key tactics: finding the root cause of the conflict, defining acceptable criteria, questioning assumptions, examining the impact of each solution, and switching perspectives to understand opposing viewpoints.

1. Find the Root Cause

Team Conflicts often arise from differing ideas about the best solution to a problem. Therefore, the first step in managing team conflict is to examine the problem and agree on its root cause. This involves finding common ground around how the team found itself in the current situation. It’s crucial to understand that before discussing solutions, the team must agree on what the problem is.

There are several techniques that can be used to analyze the root cause of a conflict. These include fishbone diagrams or the five whys method. These techniques can help the team to dig deeper into the problem and identify the underlying cause. Once the root cause is identified, it becomes easier to address the conflict and find a solution.

2. Define Acceptable Criteria

Once the root cause of team conflict has been identified, the next step is to set criteria for success before discussing solutions. This involves agreeing on the criteria that will define a successful solution. It’s important to discuss constraints such as time, cost, and responsibility. These factors often play a significant role in determining the feasibility of a solution.

It’s worth noting that disagreements about criteria can lead to conflict. Therefore, it’s important to define these upfront. By setting clear criteria, the team can ensure that everyone is on the same page and that the proposed solutions align with the agreed-upon success criteria.

3. Question Assumptions

Another important tactic in managing team conflict is to question assumptions. This involves gaining a deeper understanding and finding common ground by questioning assumptions about the world, individual capacities, and team capabilities. It’s crucial to avoid criticizing or dismissing ideas outright. Instead, ask for thoughts on specific aspects and encourage open discussion.

By questioning assumptions, people may rethink their solutions or discover flaws in their own thinking. This can lead to more innovative solutions and a better understanding of the problem at hand. It also fosters a culture of open communication and mutual respect within the team.

4. Examine the Impact

When considering potential solutions to a team conflict, it’s important to examine the impact of each solution. This involves exploring the potential consequences and trade-offs of implementing a particular solution. Consider the impact on other divisions, clients, society, and the media. Recognizing that every solution has trade-offs and unintended consequences is a crucial part of the decision-making process.

Examining the impact helps people realize the potential flaws or benefits of their ideas. It also encourages team members to think critically about their proposed solutions and consider the bigger picture. This can lead to more informed decision-making and better conflict resolution.

5. Switch Perspectives

The final tactic in managing team conflict is to switch perspectives. This involves considering opposing viewpoints and championing different ideas. Encourage team members to take on the perspective of others and understand their reasoning. This can help to gain empathy and find common ground.

By considering different viewpoints, a more suitable solution may be found, or a more productive conversation can take place. This not only helps in resolving the current conflict but also fosters a culture of empathy and understanding within the team, which can prevent future conflicts.

Managing conflict effectively is crucial for the growth and success of a team. It helps teams to grow, improve performance, and create a more engaging work experience. Managed well, conflict is what helps every member of the team do their best work ever.

Image credit: Pixabay

Originally published on DavidBurkus.com on January 6, 2024

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Seeing Things as They Cannot Be

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Seeing Things as They Cannot Be

GUEST POST from Mike Shipulski

When there’s a big problem, the first step is to define what’s causing it. To do that, based on an understanding of the physics, a sequence of events is proposed and then tested to see if it replicates the problem. In that way, the team must understand the system as it is before the problem can be solved.

Seeing Things as They Are

The same logic applies when it’s time to improve an existing product or service. The first thing to do is to see the system as it is. But seeing things as they are is difficult. We have a tendency to see things as we want them or to see them in ways that make us look good (or smart). Or, we see them in a way that justifies the improvements we already know we want to make.

To battle our biases and see things as they are, we use tools such as block diagrams to define the system as it is. The most important element of the block diagram is clarity. The first revision will be incorrect, but it must be clear and explicit. It must describe things in a way that creates a singular understanding of the system. The best block diagrams can be interpreted only one way. More strongly, if there’s ambiguity or lack of clarity, the thing has not yet risen to the level of a block diagram.

The block diagram evolves as the team converges on a single understanding of things as they are. And with a diagram of things as they are, a solution is readily defined and validated. If when tested the proposed solution makes the problem go away, it’s inferred that the team sees things as they are and the solution takes advantage of that understanding to make the problem go away.

Seeing Things as They May Be

Even whey the solution fixes the problem, the team really doesn’t know if they see things as they are. Really, all they know is they see things as they may be. Sure, the solution makes the problem go away, but it’s impossible to really know if the solution captures the physics of failure. When the system is large and has a lot of moving parts, the team cannot see things as they are, rather, they can only see the system as it may be. This is especially true if the system involves people, as people behave differently based on how they feel and what happened to them yesterday.

There’s inherent uncertainty when working with larger systems and systems that involve people. It’s not insurmountable, but you’ve got to acknowledge that your understanding of the system is less than perfect. If your company is used to solving small problems within small systems, there will be little tolerance for the inherent uncertainty and associated unpredictability (in time) of a solution. To help your company make the transition, replace the language of “seeing things as they are” with “seeing things as they may be.” The same diagnostic process applies, but since the understanding of the system is incomplete or wrong, the proposed solutions cannot not be pre-judged as “this will work” and “that won’t work.” You’ve got to be open to all potential solutions that don’t contradict the system as it may be. And you’ve got to be tolerant of the inherent unpredictability of the effort as a whole.

Seeing Things as They Could Be

To create something that doesn’t yet exist, something does things like never before, something altogether new, you’ve got to stand on top of your understanding of the system and jump off. Whether you see things as they are or as they may be, the new system will be different. It’s not about diagnosing the existing system; it’s about imagining the system as it could be. And there’s a paradox here. The better you understand the existing system, the more difficulty you’ll have imagining the new one. And, the more success the company has had with the system as it is, the more resistance you’ll feel when you try to make the system something it could be.

Seeing things as they could be takes courage – courage to obsolete your best work and courage to divest from success. The first one must be overcome first. Your body creates stress around the notion of making yourself look bad. If you can create something altogether better, why didn’t you do it last time? There’s a hit to the ego around making your best work look like it’s not all that good. But once you get over all that, you’ve earned the right to go to battle with your organization who is afraid to move away from the recipe responsible for all the profits generated over the last decade.

But don’t look at those fears as bad. Rather, look at them as indicators you’re working on something that could make a real difference. Your ego recognizes you’re working on something better and it sends fear into your veins. The organization recognizes you’re working on something that threatens the status quo and it does what it can to make you stop. You’re onto something. Keep going.

Seeing Things as They Can’t Be

This is rarified air. In this domain you must violate first principles. In this domain you’ve got to run experiments that everyone thinks are unreasonable, if not ill-informed. You must do the opposite. If your product is fast, your prototype must be the slowest. If the existing one is the heaviest, you must make the lightest. If your reputation is based on the highest functioning products, the new offering must do far less. If your offering requires trained operators, the new one must prevent operator involvement.

If your most seasoned Principal Engineer thinks it’s a good idea, you’re doing it wrong. You’ve got to propose an idea that makes the most experienced people throw something at you. You’ve got to suggest something so crazy they start foaming at the mouth. Your concepts must rip out their fillings. Where “seeing things as they could be” creates some organizational stress, “seeing things as they can’t be” creates earthquakes. If you’re not prepared to be fired, this is not the domain for you.

All four of these domains are valuable and have merit. And we need them all. If there’s one message it’s be clear which domain you’re working in. And if there’s a second message it’s explain to company leadership which domain you’re working in and set expectations on the level of uncertainty and unpredictability of that domain.

Image credits: Pexels

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Loyalty Programs Are More Than Just Repeat Business

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The Hidden Revenue Engine

Loyalty Programs Are More Than Just Repeat Business

GUEST POST from Shep Hyken

Loyalty programs have evolved far beyond their humble beginnings as simple “earn and burn” points systems. While many still view them primarily as marketing tools to drive repeat business, today’s loyalty programs have become sophisticated revenue engines that can significantly impact a company’s bottom line.

Consider this surprising statistic from our annual customer service research: 46% of U.S. consumers are willing to pay more for companies that have good loyalty programs. Even more telling, 39% have chosen one brand over another, even if it is more expensive, simply to earn more points in a loyalty program.

The transformation of loyalty programs into revenue generators became especially apparent during the Covid-19 pandemic. While airlines were grounding their fleets, their loyalty programs were still generating substantial revenue through partnerships with credit card companies and other businesses. If you use a credit card tied to your favorite airline, you have experienced this firsthand. You don’t have to fly on the airline to continue to earn points and awards. This revelation led to some interesting valuations of these programs, sometimes worth more than the core business itself.

I had a chance to do an Amazing Business Radio interview with Aleksander Kaczmarek, the vice president of loyalty at CarTrawler. CarTrawler offers a technology solution that connects car rentals to brands such as American Airlines, Uber, Emirates, American Express, Hilton and many other brands you are familiar with. If you’ve ever bought an airline ticket or booked a hotel and were asked if you needed a rental car, you may have experienced CarTrawler.

According to Kaczmarek, modern loyalty programs are far more powerful than the points and awards most people think of. They’ve evolved from simple point-collection systems into sophisticated customer engagement platforms. Today’s programs leverage technology to create seamless experiences that encourage customers to interact with brands in multiple ways. For example, many retailers’ loyalty apps now include features like mobile payments, personalized recommendations and exclusive access to products or services.

Kaczmarek says revenue potential comes from three key areas:

Direct Program Revenue: This includes membership fees (think Amazon Prime or Walmart+) and partnership revenues from other businesses that want access to the program’s member base.
Increased Customer Spending: Loyalty program members typically spend more than non-members, partly because they’re trying to earn rewards and partly because the program makes it easier to do business with the company. (This is reflected in our research and the findings mentioned at the top of the article.)
Data Monetization: The insights gained from loyalty program data can help companies make better inventory decisions, create more effective marketing campaigns and identify new business opportunities.

According to Kaczmarek, the most successful programs share several characteristics that drive both customer engagement and revenue:

More than Points: They offer immediate value beyond points accumulation, such as priority service or exclusive access.
Emotional Connection: They create emotional connections through experiential rewards rather than just transactional benefits.
Partnerships with Other Businesses and Brands: They leverage partnerships to expand their value proposition beyond their core business.
Using Technology for a Better CX: They use technology to deliver a seamless customer experience across all touchpoints

However, companies need to strike a careful balance. Kaczmarek says, “There’s often debate about whether loyalty programs should focus on generating revenue or enhancing customer experience. The truth is, they need to do both.”

This dual focus is crucial because customers aren’t loyal to the program—they’re loyal to the experience the company provides. A great loyalty program can enhance that experience and drive revenue, but it can’t compensate for poor service or products.

Kaczmarek notes that the future of loyalty programs goes beyond anything we’re seeing today, especially in the travel industry. “Looking ahead, we’re seeing innovative approaches to loyalty programs emerge. Some cities and business districts are exploring ‘destination loyalty’ programs that reward customers for engaging with multiple local businesses. Others are creating coalition programs where complementary businesses share a single loyalty platform.”

So, whether you’re a small local business or a major corporation, loyalty programs can be more than just a customer retention tool. When properly designed and executed, they can become a significant source of revenue while strengthening customer relationships.

Just remember, the typical loyalty program doesn’t actually create loyalty. It is a marketing program that simply rewards and reinforces repeat business. True loyalty still comes from consistently delivering great experiences that make customers want to say, “I’ll be back!”

Image Credit: Shep Hyken

This article originally appeared on Forbes.com

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Transforming Leadership to Reshape the Future of Innovation

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Exclusive Interview with Brian Solis

Effective leadership serves as the crucial catalyst for both successful innovation and the profound transformation of any collective entity, be it an organization, a team, or even a country. Leaders are responsible for setting a compelling vision, articulating the ‘why’ behind the need for change, and fostering a culture where calculated risk-taking, experimentation, and learning from failure are not just tolerated, but actively encouraged. By championing new ideas, allocating resources strategically, empowering individuals, and navigating the inherent uncertainties of uncharted territory, leaders create the necessary environment for groundbreaking concepts to emerge and take root. Ultimately, it is the foresight, resilience, and guidance of strong leadership that enables groups to move beyond the status quo, adapt to evolving landscapes, and consciously shape a more innovative and prosperous future.

Today we will start with Gemini’s summarization of the global innovation community’s shared understanding surrounding the intersection of innovation, leadership, and the future above and dive deep into what it takes to make a leadership mindshift with our special guest.

Helping Leaders Make the Mindshift the Future Requires

I recently had the opportunity to interview Brian Solis, a world-renowned futurist, keynote speaker, and author of over 60 industry-leading research publications and 8 best-selling books exploring disruptive trends, corporate innovation, business transformation, and consumer behavior. Forbes has called him “one of the more creative and brilliant business minds of our time” and The Conference Board described Brian as “the futurist we all need now.”

Brian serves as the Head of Global Innovation at ServiceNow where he leads vision, strategy, and program innovation for the company’s global Innovation Centers. Brian also studies disruptive technologies, emergent trends, and market shifts to advise business executives on innovation and transformation strategies.

Brian continues to publish business and technology thought leadership in industry publications such as CIO, Forbes, and Worth, and has consistently been recognized as one of the world’s leading thinkers in innovation, business transformation, and leadership for over two decades. .

Below is the text of my interview with Brian and a preview of the kinds of insights you’ll find in Mindshift: Transform Leadership, Drive Innovation, and Reshape the Future presented in a Q&A format:

1. Let’s set the stage. Why is someone’s mindset so important and what is a mindshift?

Your mindset is the operating system for how you experience and interact with the world. It influences how you perceive reality, react to change, and ultimately determine the role you play in shaping the future.

A mindshift isn’t just a minor adjustment — it’s a fundamental rewiring of how we see, think, and operate. It’s the moment when you realize you don’t have to accept the status quo and instead begin to create new possibilities.

We’re living in an era where exponential change is the new normal. AI, automation, digital transformation — these aren’t just trends; they’re fundamentally reshaping industries and societies. Those who cling to legacy thinking will struggle. Those who embrace a mindshift — who become adaptable, curious, and proactive — will thrive.

A mindshift is about moving from passive observer to active architect of the future. Unlearn old patterns, embrace new perspectives, and take intentional action to drive meaningful change. It’s a choice. It’s a responsibility. And, ultimately, it’s a competitive advantage.

2. Why is it so easy for leaders to downplay potential disruptions?

Leaders often don’t see disruption coming—not because they’re unaware, but because they’re focused on optimizing the present. This comes at the cost designing the future. I call this the “other ROI,” which signifies return on ignorance. Ask, “what happens if I’m not asking different questions?” or “what’s the cost of not investing in alternate futures?” Many companies and executives operate in a legacy mindset, where efficiency, risk avoidance, and short-term gains take priority.

This creates a dangerous blind spot. Disruption doesn’t announce itself with a press release. It starts small, at the edges — emerging consumer behaviors, shifts in expectations, technological advancements that seem niche or “not our problem.” By the time these trends become impossible to ignore, it’s often too late.

Kodak is a classic example. They invented the digital camera but failed to embrace it because they were too invested in their film business. Taxi companies dismissed Uber as a niche alternative until it completely redefined the transportation industry. Blockbuster dismissed streaming early on, etc.

The irony? The very disruption leaders fear is also their biggest opportunity. Those who develop a mindshift — who cultivate foresight, agility, and a culture of continuous learning—don’t just react to disruption. They create it.

3. Classic question: Are leaders born or made, and why or how?

Leaders are made. Leadership is not a title, and it’s not something you inherit. It’s a mindset. It’s a set of behaviors and choices that anyone — at any level — can develop.

Yes, some people are naturally more charismatic or decisive or confident or vocal, but leadership isn’t about personality traits. It’s about genuine vision, courage, empathy, and the ability to inspire action.

The best leaders are not limited to those who have climbed the corporate ladder. They’re the ones who create ladders for others. They lift others up. They see problems others ignore, challenge assumptions, and take action when no one else will.

If leadership were purely an inborn trait, we wouldn’t see individuals from unexpected backgrounds rise to the occasion. Look at someone like Satya Nadella, who transformed Microsoft not just by making smart business moves, but by shifting its culture from one of competition to one of collaboration and innovation. Or look at the CEO of ServiceNow, Bill McDermott, who bought a deli at 16 and then sold Xeros copiers door-to-door after college.

The good news? Leadership is a skill. And like any skill, it can be developed — through self-awareness, learning, resilience, and a commitment to constant growth.

4. What are some of the best ways for people to become more self-aware?

Self-awareness is the foundation of a mindshift. Without it, we’re running on autopilot, reinforcing the very patterns that hold us back, but thinking we’re growing.

The first step is intentional reflection. Most of us operate in a reactive state, responding to emails, putting out fires, and navigating daily demands without ever stopping to ask: Why do I think this way? Why do I act this way? What assumptions am I carrying?

Here are some practical ways to build self-awareness:

Journaling – Write down your thoughts, decisions, and reactions. Over time, patterns emerge.
Feedback loops – Actively seek input from mentors, colleagues, and even those who challenge you.
Mindfulness practices – Simply taking a few moments to observe your thoughts rather than react to them can be transformative.
Personality and strengths assessments – Tools like StrengthsFinder or the Enneagram can provide valuable insights into your natural tendencies.
Board of Directors – Change who your surround yourself with. Without realizing, we often keep the company of those who keep us right where we are.
The “Why?” method – When you make a decision or hold a strong opinion, ask “Why?” five times. You might be surprised at the subconscious beliefs driving your actions.

5. What makes it hard for people to be optimistic? Or for some, to avoid being too optimistic?

Optimism is a powerful force — but it has to be grounded in reality.

Many people struggle with optimism because they’re conditioned to focus on risks and worst-case scenarios. We live in a world where negativity is amplified — headlines focus on crises, social media fuels outrage, and many corporate cultures reward problem-spotting over possibility-seeking.

On the other hand, unchecked optimism can be dangerous. If we ignore reality, we risk falling into wishful thinking, assuming everything will work out without taking the necessary action to make it work out.

The key is pragmatic optimism — the ability to see opportunities while also acknowledging challenges. It’s the belief that the future can be better, but only if we take responsibility for shaping it.

6. Most of our audience is aware of the Fixed vs. Growth Mindset concept, but are there key aspects of this concept that tend to be overlooked or underestimated?

Yes — many people misunderstand how to actually develop a growth mindset.

It’s easy to say, “I believe I can grow,” but without action, nothing changes.

Talking about taking action is not taking action. Thinking and dreaming about it, reading about it, learning from others who do it, planning for it, none of this is taking action.

The real key is deliberate discomfort. Growth doesn’t happen in our comfort zones—it happens when we actively seek out challenges that stretch us. You have to start with disrupting yourself.

Another overlooked aspect is environment. You can’t sustain a growth mindset if you’re surrounded by people who reinforce fixed thinking. Leaders must cultivate environments where learning, experimentation, and even failure are embraced.

A growth mindset isn’t just about believing in potential — it’s about practicing resilience, adaptability, and curiosity every single day.

7. What is the role of transcendence in achieving mindshift or the relationship between them?

I tell the story about transcendence and Maslov in the book. If you’re reading this now, I hope you read the book!

Transcendence is about breaking free from the mental constraints of the past. It’s about seeing beyond immediate challenges and into what’s possible.

A mindshift happens when we transcend our habitual ways of thinking, seeing, and being. It requires stepping outside our ego, our fears, and our assumptions to view the world—and our role in it — through a fresh lens.

Great leaders transcend the present to create the future. They don’t just accept reality; they challenge and redefine it. They become it.

8. What is the relationship or overlap between futurology and mindset shifting?

Futurology isn’t about predicting the future—it’s about anticipating and preparing for it. A mindshift allows us to anticipate and shape what’s coming, rather than react to it.

A future-ready mindset means continuously questioning assumptions, scanning for emerging trends, and developing the agility to pivot before disruption forces our hand.

9. What role does storytelling play in a mindset shift for an organization instead of an individual?

Storytelling is communication and can drive cultural transformation.

Organizations shift their collective mindset when leaders craft compelling narratives that connect people to a shared vision of the future.

The most successful change initiatives are fueled by stories that inspire belief, belonging, and action.

10. From your experience, what are some of the best ways to test your story before you start to tell it?

A great story isn’t told — it’s experienced. Before launching a new narrative, whether for an organization, a product, or a movement, it’s essential to validate it in the real world. Here’s how:

Start Small, Iterate Fast – Share your story with a small, trusted audience first—mentors, team members, or even a focus group. Observe their reactions. Are they engaged? Do they lean in? Do they see themselves in the story?
The Emotional Test – A great story moves people. If it doesn’t spark curiosity, excitement, or even tension, it might need refinement. If people just nod politely, go deeper—make it more personal, more relatable, or more urgent.
Reverse Engineer It – What reaction do you want? Is your story designed to drive action? To challenge assumptions? To inspire change? If it doesn’t achieve its intended purpose, revisit the framing.
Test Across Channels – Does your story hold up in a conversation? A blog post? A social media post? A keynote? A strong narrative should be adaptable yet consistent across different mediums.
Listen for the Retell Factor – The best stories get repeated. If people remember and share your message in their own words, you’ve got something powerful. If they struggle to summarize it, it might need simplification or more emotional depth.

A story goes beyond what you say—it’s what people hear, feel, and share. Make sure it resonates before you take it to a bigger stage.

11. What’s the biggest barrier to a mindshift, and how can people overcome it?

The biggest barrier? Fear of letting go.

People often cling to outdated beliefs, behaviors, and ways of working—not because they’re effective, but because they’re comfortable. Even when the evidence is clear that change is needed, there’s a psychological safety in the familiar.

Overcoming this requires intentional unlearning. The best way to do this?

Expose yourself to new ideas and perspectives – Read outside your industry. Talk to people with different viewpoints. Travel, even if it’s just to a different part of your city. Disruption often starts with who you surround yourself with.
Challenge your own beliefs – Ask yourself: What do I assume to be true that might not be? What if the opposite were true? This exercise alone can unlock powerful insights.
Get uncomfortable, on purpose – Growth doesn’t happen in the comfort zone. Seek experiences that stretch you—whether that’s public speaking, launching a bold new initiative, or simply saying “yes” to something that scares you.
Redefine failure – Failure isn’t the opposite of success; it’s part of the process. A mindshift happens when you stop fearing failure and start learning from it.
Surround yourself with catalysts – The people around you either reinforce old thinking or help you level up. Seek out those who challenge you, inspire you, and push you to see things differently.

A mindshift doesn’t happen to you. It happens because of you. And the more intentional you are about rewiring your thinking, the more unstoppable you become.

12. What’s one thing every leader should do today to future-proof themselves?

Start with reading Mindshift! 😉

Leaders today need vision.But they also need foresight. The world is shifting too fast for traditional leadership approaches to keep up.

So here’s a challenge: Block out 30 minutes every week to explore the future.

Study emerging trends (AI, automation, shifting workforce dynamics).
Read about what’s happening outside your industry.
Watch how Gen Z and Gen Alpha are interacting with technology.
Ask, “What does this mean for me? My industry? My team?”

The leaders who thrive in the future are the ones who anticipate it today. The best way to be ready for what’s next is to start thinking like the future, right now.

Conclusion

Thank you for the great conversation Brian!

I hope everyone has enjoyed this peek into the mind of the man behind the insightful new title Mindshift: Transform Leadership, Drive Innovation, and Reshape the Future!

Image credits: Brian Solis

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