Lean is the Enemy of Learning

And Other Counterintuitive Lessons from a Day at MIT

GUEST POST from Robyn Bolton

I firmly believe that there are certain things in life that you automatically say Yes to. You do not ask questions or pause to consider context. You simply say Yes:

Painkillers after a medical procedure
Warm blankets
The opportunity to listen to brilliant people talk about things that fascinate them.

So, when asked if I would like to attend an Executive Briefing curated by MIT’s Industrial Liaison Program, I did not ask questions or pause to check my calendar. I simply said Yes.

I’m extremely happy that I did because what I heard blew my mind.

Lean is the enemy of learning

When Ben Armstrong, Executive Director of MIT’s Industrial Performance Center and Co-Lead of the Work of the Future Initiative, said, “To produce something new, you need to create a lot of waste,” I nearly lept out of my chair, raised my arms, and shouted “Amen brother!”

He went on to tell the story of a meeting between Elon Musk and Toyota executives shortly after Musk became CEO. Toyota executives marveled at how quickly Tesla could build an EV and asked Musk for his secret. Musk gestured around the factory floor at all the abandoned hunks of metal and partially built cars and explained that, unlike Toyota, which prided itself on being lean and minimizing waste, Tesla engineers focused on learning – and waste is a required part of the process.

We decide with our hearts and justify with our heads – even when leasing office space

John E. Fernández, Director of MIT’s Environmental Solutions Initiative, shared an unexpected insight about selling sustainable buildings effectively. Instead of hard numbers around water and energy cost savings, what convinces companies to pay the premium for Net Zero environments is prestige. The bragging rights of being a tenant in Winthrop Center, Boston’s first-ever Passive House office building, gave developers a meaningful point of differentiation and justified higher-than-market-rate rents to future tenants like McKinsey and M&T Bank.

49% of companies are Silos and Spaghetti

I did a hard eye roll when I saw Digital Transformation on the agenda. But Stephanie Woerner, Principal Research Scientists and Executive Director for MIT’s Center for Information Systems Research, proved me wrong by explaining that Digital Transformation requires operational excellence and customer-focused innovation.

Her research reveals that while 26% of companies have evolved to manage both innovation and operations, operate with agility, and deliver great customer experiences, nearly half of companies are stuck operating in silos and throwing spaghetti against the wall. These “silo and spaghetti companies” are often product companies rife with complex systems and processes that require and reward individual heroics to make progress.

What seems like the safest option is the riskiest

How did 26% of companies transform while the rest stayed stuck or made little progress? The path forward isn’t what you’d expect. Companies that go all-in on operational excellence or customer innovation struggle to shift focus and work in the other half of the equation. But doing a little bit of each is even more risky because the companies often wait for results from one step before taking the next. The result is a never-ending transformation slog that is eventually abandoned.

Academia is full of random factoids

They’re not random to the academics, but for us civilians, they’re mainly helpful for trivia night:

50% of US robots are used in the automotive industry
<20% of manufacturing job descriptions require digital skills (yes, that includes MS Office)
Data centers will account for 8-21% of global energy demand by 2030
Energy is 10% of the cost but 90% of the cost of mining bitcoin
Cities take up 3% of the earth’s surface, contain 33% of the population, account for 70% of global electricity consumption, and are responsible for 75% of CO2 emissions

Why say Yes

When brilliant people talk about things they find fascinating, it’s often because those things challenge conventional wisdom. The tension between lean efficiency and innovative learning, the role of emotion in business decisions, and the risks of playing it too safe all point to a fascinating truth: sometimes the most counterintuitive path forward is the most successful.

How have you seen this play out in your work?

Image credit: Unsplash

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Four Deadly Business Myths

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Four Deadly Business Myths

GUEST POST from Greg Satell

The unicorn is perhaps unique among myths in that the creature doesn’t appear in the mythology of any culture. The ancient Greeks, for all of their centaurs, hydras and medusae, never had any stories of unicorns, they simply thought that some existed somewhere. Of course, nobody had ever seen one, but they believed others had.

Beliefs are amazing things. We don’t need any evidence or rational basis to believe something to be true. In fact, research has shown that, when confronted with scientific evidence which conflicts with preexisting views, people tend to question the objectivity of the research rather than revisit their beliefs. Also, as Sam Arbesman has explained, our notions of the facts themselves change over time.

George Soros and others have noted that information has a reflexive quality. We can’t possibly verify every proposition, so we tend to take cues from those around us, especially when they are reinforced by authority figures, like consultants and media personalities. Over time, the zeitgeist diverges further from reality and myths evolve into established doctrine.

Myth #1: We Live In A VUCA Business Environment

Today it seems that every business pundit is talking about how we operate in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world. It’s not hard to see the attraction. Conjuring almost apocalyptic images of continuous industrial disruption creates demand for consulting and advisory services. It’s easier to sell aspirin than vitamins.

The data, however, tell a different story. In fact, a report from the OECD found that markets, especially in the United States, have become more concentrated and less competitive, with less churn among industry leaders. The number of young firms have decreased markedly as well, falling from roughly half of the total number of companies in 1982 to one third in 2013.

Today, in part because of lax antitrust enforcement over the past few decades, businesses have become less disruptive, less competitive and less dynamic, while our economy has become less innovative and less productive. The fact that the reality is in such stark contrast to the rhetoric, is more than worrying, it should be a flashing red light.

The truth is that we don’t really disrupt industries anymore. We disrupt people. Economic data shows that for most Americans, real wages have hardly budged since 1964. Income and wealth inequality remain at historic highs. Anxiety and depression, already at epidemic levels, worsened during the Covid-19 pandemic.

The recent great resignation, when people began leaving their jobs in droves, helps tell this story. Should anyone be surprised? We’ve been working longer hours, constantly tethered to the office even as we work remotely, under increasing levels of stress. Yes, things change. They always have and always will. We need to adapt, but all of the VUCA talk is killing us.

Myth #2: Empathy Is Absolution

Another favorite buzzword today is empathy. It is often paired with compassion in the context of creating a more beneficial workplace. That is, of course, a reasonable and worthy objective. As noted above, there’s far too much talk about disruption and uncertainty and not nearly enough about stability and well-being.

Still, the one-dimensional use of empathy is misleading. When seen only through the lens of making others more comfortable, it seems like a “nice to have,” rather than a valuable competency and an important source of competitive advantage. It’s much easier to see the advantage of imposing your will, rather than internalizing the perspectives of others.

One thing I learned living overseas for 15 years is that it is incredibly important to understand how people around you think, especially if you don’t agree with them and, as is sometimes the case, find their point of view morally reprehensible. In fact, learning more about how others think can make you a more effective leader, negotiator and manager.

Empathy is not absolution. You can internalize the ideas of others and still vehemently disagree. There is a reason that Special Forces are trained to understand the cultures in which they will operate and it isn’t because it makes them nicer people. It’s because it makes them more lethal operators.

Learning that not everyone thinks alike is one of life’s most valuable lessons. Yes, coercion is often a viable strategy in the short-term. But to build something that lasts, it’s much better if people do things for their own reasons, even if those reasons are different than yours. To achieve that, you have to understand their motivations.

Myth #3: Diversity Equity And Inclusion Is About Enforcing Rules

In recent years corporate America has pushed to implement policies for diversity, equity and inclusion. The Society for Human Resource Management even offers a diversity toolkit on its website firms can adopt, complete with guidelines, best practices and even form letters.

Many organizations have incorporated diversity awareness training for employees to learn about things like unconscious bias, microaggressions and cultural awareness. There are often strict codes of conduct with serious repercussions for violations. Those who step out of line can be terminated and see their careers derailed.

Unfortunately, these efforts can backfire, especially if diversity efforts rely to heavily on a disciplinary regime. As the philosopher Ludwig Wittgenstein pointed out long ago, strict rules-based approaches are problematic because they inevitably lead to logical contradictions. What starts out as a well-meaning effort can quickly become a capricious workplace dominated by fear.

Cultural competency is much better understood as a set of skills than a set of rules. While the prospect of getting fired for saying the wrong thing can be chilling, who wouldn’t want to be a more effective communicator, able to collaborate more effectively with colleagues who have different viewpoints, skills and perspectives?

To bring about real transformation, you need to attract. You can’t bully or overpower. Promoting inclusion should be about understanding, not intimidation.

Myth #4: People Are Best Motivated Through Carrots And Sticks

One of the things we’ve noticed when we advise organizations on transformation initiatives is that executives tend to default towards incentive structures. They quickly conjure up a Rube Goldberg-like system of bonuses and penalties designed to incentivize people to exhibit the desired behaviors. This is almost always a mistake.

If you feel the need to bribe and bully people to get what you want, you are signaling from the outset that there is something undesirable about what you’re asking for. In fact, we’ve known for decades that financial incentives often prove to be problematic.

Instead of trying to get people to do what you want, you’re much better off identifying people who want what you want and empowering them to succeed. As they prosper, they can bring others in who can attract others still. That’s how you build a movement that people feel a sense of ownership of, rather than mandate that they feel subjugated by.

The trick is that you always want to start with a majority, even if it’s three people in a room of five. The biggest influence on what we do and think is what the people around us do and think. That’s why it’s always easy to expand a majority out, but as soon as you are in the minority, you will feel immediate pushback.

We need to stop trying to engineer behavior, as if humans are assemblages of buttons and levers that we push and pull to get the results we want. Effective leaders are more like gardeners, nurturing, growing and shaping the ecosystems in which they operate, uniting others with a sense of shared identity and shared purpose.

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

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Five Secrets of Team Motivation

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Five Secrets of Team Motivation

GUEST POST from David Burkus

Every team leader knows the importance of keeping their team motivated. The more motivated your team, the more productive they are, and the better results they deliver. Research suggests that the more powerful form of motivation is intrinsic, flowing from an individual’s desire to do the work or achieve the outcome for their own reasons—not bonuses, awards, or other extrinsic motivators leaders often use. But that doesn’t mean leaders are out of options.

While your team will still be best motivated through reasons that are individual, there are still a few tactics you can use to motivate your team by creating a culture and climate where intrinsic motivation is most likely to develop.

In this article, we’ll explore five effective ways to motivate your team, ensuring they remain focused, engaged, and driven to achieve their goals.

1. Describe the End Goal

The first way to motivate your team is to describe the end goal. Leaders achieve this by giving them a clear and tangible objective to work towards. By describing the end goal, you provide a big objective that motivates individuals and gives them a sense of purpose. This is particularly useful in ambiguous and volatile times when the path forward may not be clear.

One valuable concept to consider is letting the team know the “Commander’s Intent.” This is a clear and concise statement that defines what “done” looks like and keeps people focused. This military term refers to the practice of clearly communicating the desired end state of an operation, allowing individuals to adapt their actions to achieve this goal. This not only motivates individuals but also fosters a sense of autonomy and responsibility.

2. Set Milestones

The second way to motivate your team is to set milestones. Milestones are the smaller objectives that signify progress toward the end goal. Milestones provide checkpoints for teams to use to measure progress, a potent motivator in its own right. And milestones help the team see see how their work contributes to the larger objectives.

Additionally, deciding on the order of tasks can give individuals a sense of autonomy over the overall project, further boosting their motivation. You may not have been able to choose your end goal, but teams can still look at their expected deliverables and create their own series of checkpoints or milestones that help them feel more in control of the project—and autonomy and control help create intrinsic motivation.

3. Celebrate Small Wins

The third way to motivate your team is to celebrate small wins. This involves acknowledging and appreciating the progress made by individuals and the team, no matter how small. Celebrating small wins helps to motivate the team and signify progress, fostering a positive work environment. And obviously, this method is difficult without establishing milestones in the previous method. Achieving those checkpoints is a perfect time to celebrate small wins.

But wins can be even smaller, like having a good day, completing a task, or receiving help from someone else. Celebrations can be done in various ways, in person over food or drinks, through a round of emails praising the win, or simply just acknowledging the achievement in a team meeting. The key is to make sure the team feels appreciated and valued.

4. Learn from Failures

The fourth way to motivate your team is to learn from failures. Failures are inevitable in any team or project. However, the way you handle these failures can greatly impact your team’s motivation. Instead of blaming others, it’s important to learn from these mistakes and use them as opportunities for growth.

Leaders and influential teammates can help extract lessons from failures and encourage transparency. This creates a psychologically safe environment where individuals feel supported and are more willing to take risks. This not only promotes learning and increases performance, but also fosters intrinsic motivation because learning—even learning through failures—helps people tap into a sense of growth and mastery, both of which are powerful triggers for intrinsic motivation.

5. Turn “Why” into “Who”

The final way to motivate your team is to turn the “why” into “who.” This involves focusing on the individuals or groups that benefit from the team’s work, instead of just relying on the organizational mission or vision statement to motivate for you. Leaders who create a sense of this “pro-social purpose” find themselves leading teams who are more motivated, but also more bonded. Pro-social motivation and purpose are key to intrinsic motivation, helping individuals see the impact of their work.

Knowing who is served by the work helps individuals and the team stay motivated. The specific “who” can vary for each team and individual, but the key is to make sure everyone understands the value and impact of their work.

By implementing these five strategies, leaders can create an environment where team members feel intrinsically motivated and can do their best work. Remember, motivation is not a one-time event, but a continuous process that requires ongoing effort and attention—a process that leads everyone to do their best work ever.

Image credit: misterinnovation.com

Originally published on DavidBurkus.com on November 6, 2023

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Is Your Problem Bigger Than Its Seems?

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Is Your Problem Bigger Than Its Seems?

GUEST POST from Mike Shipulski

If words and actions are different, believe the actions.

If the words change over time, don’t put stock in the person delivering them.

If a good friend doesn’t trust someone, neither should you.

If the people above you don’t hold themselves accountable, yet they try to hold you accountable, shame on them.

If people are afraid to report injustices, it’s just a matter of time before the best people leave.

If actions are consistently different than the published values, it’s likely the values should be up-revved.

If you don’t trust your leader, respect your instincts.

If people are bored and their boredom is ignored, expect the company to death spiral into the ground.

If behaviors are different than the culture, the culture isn’t the culture.

If all the people in a group apply for positions outside the group, the group has a problem.

When actions seen by your eyes are different than the rhetoric force-fed into your ears, believe your eyes.

If you think your emotional well-being is in jeopardy, it is.

If to preserve your mental health you must hunker down with a trusted friend, find a new place to work.

If people are afraid to report injustices, company leadership has failed.

If the real problems aren’t discussed because they’re too icky, there’s a bigger problem.

If everyone in the group applies for positions outside the group and HR doesn’t intervene, the group isn’t the problem.

And to counter all this nonsense:

If someone needs help, help them.

If someone helps you, thank them.

If someone does a good job, tell them.

Rinse, and repeat.

Image credits: Pixabay

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The Real Winners of Mega Events

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From the Super Bowl to Rock Concerts

The Real Winners of Mega Events

GUEST POST from Shep Hyken

Fans who attend major sporting events and concerts may have memories to last a lifetime. The owners of the sports teams and producers of major music events may smile as they look at a sold-out crowd. The athletes and musicians are well-paid for their performances. And we can’t forget the sponsors who pay large sums of money to be affiliated with events, enjoy brand recognition and see a return on their advertising dollars. But there’s one other “happy customer” that many people don’t think about: the city that gets the honor of hosting these events.

The Super Bowl is next month, and for many, it is a festive occasion. For the city that hosts the biggest sporting event of the year, it’s a windfall in economic benefit. This year, that city was Las Vegas. Even before the Super Bowl was hosted in its new stadium, the city profited from major sporting events. People flock to Vegas to party, gamble and enjoy their favorite major sporting events on the gigantic screens in the casinos around the city. Although the NBA championship may be played in a different city, it’s still hard to find a room at a high-end hotel like Bellagio, Wynn or Caesars.

The point is that the host city receives a huge economic impact beyond the game, even if its main street is not lined with casinos. Two years ago, Major League Baseball’s World Series pitted the Houston Astros against the Arizona Diamondbacks. There was an economic windfall for the two cities.

According to a local economy study, Houston First Corp. found that each game played in Houston was worth $12.5 million. In Phoenix, where the D-Backs play, the numbers are similar. Even though fans want their team to win quickly and decisively, there is an economic benefit to the best-of-seven match going the distance. Restaurants, hotels and more benefit, and the taxes charged benefit the cities and states.

The NCAA March Madness “Final Four” basketball tournament is ironically played in April. Last year’s “winning city,” regardless of the teams playing, is Phoenix. The last time Phoenix hosted the tournament was in 2017, and a Seidman Research Institute study at Arizona State University’s W.P. Carey School of Business found an estimated 59,761 visitors stayed an average of 4.16 nights and spent an average of $487.19 per day, with a total economic impact of $324.5 million.

The benefits of sporting and entertainment events for their respective cities can’t be ignored. Be it sports, concerts, festivals, art shows, etc., these events are not just enjoyed by people attending. The trickling benefit of a boom to the area makes the effort to produce and host the events worthwhile.

Last year I met with Steve Schankman, the president of Contemporary Productions, who has produced concerts, special events and music festivals for more than 50 years. His events range from high-school venues where he booked Chuck Berry in the ’60s and ’70s, to the Super Bowl halftime show with U-2, to major music festivals starring Elton John, The Beach Boys and many other music icons, with millions in attendance throughout the years.

A couple of years ago, Schankman, with his partner Joe Litvag, produced Evolution Festival, a two-day summer music festival in St. Louis, with the goal of bringing the local community together to enjoy a talent lineup that featured Brandi Carlile, The Black Keys, Ice Cube, the Sugarhill Gang and more. If the lineup seems eclectic, that was purposeful, as Schankman’s dream was to unite music fans from every part of the area. “Music should bring people together, regardless of color, religion and sex,” says Schankman. More than 25,000 people—7,500 from outside the St. Louis area—enjoyed the festival. But it’s more than just entertainment for music fans, and he can’t wait to do it again with a lineup even more exciting and diverse than the first year’s festival.

In an article recapping the inaugural Evolution Music Festival, Schankman said, “I got 600 people working here. Besides that, we have employment taxes, we have sales taxes. We’ll do seven figures in concession sales. Seven figures in ticket sales. So just the taxes alone for the state and the city are great.”

The Metro St. Louis area, with a population of more than 2.7 million people, profits from a major music event like Evolution Festival just like it would from a major sporting event. Looking beyond the fun-filled weekend, the financial side of the sports and entertainment industry benefits more than just the talent on the field, court, or stage. Even though a concert experience like Evolution Festival doesn’t have the same financial impact as a Super Bowl championship or Final Four tournament, there are still similar benefits.

According to Brian Hall, chief marketing officer at Explore St. Louis, the average travel party to St. Louis consists of three guests staying 2.4 nights and spending $969 on hotel rooms, restaurants, attractions, etc. Then you add on ticket sales for the event, food and beverage, and souvenirs, and the numbers grow. With approximately 7,500 out-of-towners attending the Evolution Festival, the city and state enjoy a windfall of tax revenue to the tune of hundreds of thousands of dollars. In addition, there are future benefits. Hall says, “Visitation to a community is a precursor to economic development, including moving, relocating a company or starting a business in St. Louis.”

The events business, be it sports, a concert/music festival or any other large public affair, always has support from local, national and international sponsors. Large brands like AT&T, American Express and Anheuser-Busch put millions into major sporting events. While Schankman won’t compare the Evolution Festival to the Super Bowl, he said, “Cities like St. Louis offer sponsors the chance to be seen by a geographically targeted audience. The festival created 31 million impressions through the in-person experience, on social media and with our traditional advertising and marketing.”

Several times Schankman emphasized bringing people from all walks of life together. At the end of our interview, he summed it up by saying, “At a time when we’re experiencing racial and religious tension, political divide and terrifying world events, let’s remember what Beatles drummer Ringo Starr is known for preaching, ‘Peace and love!’ That’s what Evolution Festival is all about, and the businesses and brands that support it should want to be a part of something that special!”

Image Credits: Pixabay

This article originally appeared on Forbes.com.

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Is it Time to ReLearn to Work?

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Is it Time to ReLearn to Work?

GUEST POST from Geoffrey A. Moore

In white-collar industries where remote work is not only viable but often highly productive, we are still struggling to find a post-pandemic formula for integrating office attendance into our weekly routine. Continuing to waffle, however, does no one any good, so we need to get on with things. Part of what has been holding us back is that we have been talking about getting back to the office as an end. It is not. It is a means. The question it begs is, what is the end we have in mind? Why should we get back to the office?

Let’s start by eliminating one reason which gets frequent mention—we can manage better. This is not a good why. Supervision is an artifact of a prior era. Digitally enabled work logs itself, and we can hold each other accountable for all our KPIs, OKRs, and MBOs without having to be collocated. Managers may feel more in control with people in sight, but that is a poor return on the overall commute investment entailed.

A far better reason to return to the office is to reactivate learning. The biggest problem with remote work is that we do not learn. Specifically, we do not:

Learn anything new about ourselves, because we need the input of others to do so.
Learn new soft skills, because online courses don’t cut it.
Learn about our teammates, because video calls lack the needed intimacy.
Learn about our customers, because we need to go to their offices to do so (going to our offices would at least let us share the ride)
Learn about the current state of our company, because that kind of thing never gets published.

In short, just as our children experienced a learning gap at school, so we inherit the same dynamics with remote work. We consume the skills we have, but we do not develop the ones we need next. We are harvesting, but we are not seeding, and there will be a reckoning if we do not alter our course.

So, there is a good why for returning to the office, but that in turn begs the question of how? Here we need to be clear. We do not know how. We do not know what is the right formula. Unfortunately, waiting won’t help either, so now what?

Let me suggest that the best course of action is to implement a clear policy effective immediately with the following provisos.

We publicly acknowledge that we suspect this policy is wrong.
We are putting it in place for 90 days.
We want everyone to abide by it religiously so that we get the right signals.
We will review the policy publicly and transparently after 90 days and implement a new policy at that time.
We will put that policy in place for 90 days, following the same protocols as before.
We will rinse and repeat until no longer necessary.

The point is, we have to get on with getting on, and running the experiment is the fastest way to get there.

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

Image Credit: Pixabay

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When Scaling Innovation Backfires

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How One Company Became the Theranos of Marshmallows

When Scaling Innovation Backfires

GUEST POST from Robyn Bolton

Here’s a head-scratcher when it comes to scaling innovation: What happens when your innovative product is a hit with customers, but you still fail spectacularly? Just ask the folks behind Smashmallow, the gourmet marshmallow company that went from sweet success to sticky situation faster than you can say “s’mores.”

The Recipe for Initial Success

Jon Sebastiani sold his premium jerky company Krave to Hershey for $240 million and thought he’d found his next billion-dollar idea in fancy French marshmallows. And initially, it looked like he had.

Smashmallow’s artisanal, flavor-packed treats weren’t just another fluffy, tasteless sugar puff – they created an entirely new snack category. Customers couldn’t get enough of their handcrafted, churro-dusted, chocolate-chip-studded clouds of happiness. The company hit $5 million in sales in its first year, doubled that the next, and was available in 15,000 stores nationwide in only its third year.

Sounds like a startup fairy tale, right? Right! If we’re talking about the original Brothers Grimm versions. Corporate innovators start taking notes.

The Candy-coated Vision

Sebastiani and his investors weren’t content with building a successful premium regional brand. They wanted to become the Kraft of craft marshmallows, scaling from artisanal to industrial without losing what made the product special. It’s a story that plays out in corporations every day: the pressure to turn every successful pilot into a billion-dollar business.

So, they invested. Big time.

They signed a contract with “an internationally respected builder of candy-making machines” to design and build a $3 million custom-built machine and another with a copacker to build an entirely new facility to accommodate the custom machine.

Bold visions require bold moves, and Sebastiani was a bold guy.

The Scale-up Meltdown

But boldness can’t overcome reality, and the custom machine couldn’t replicate the magic of handmade marshmallows. It couldn’t even make the marshmallows.

Starch dust created explosion hazards. Cinnamon wouldn’t stick. Workers couldn’t breathe through spice clouds. The handmade ethos of imperfect squares gave way to industrialized perfection. Each attempt to solve one problem created three more, like a game of confectionery whack-a-mole.

By 2022, Smashmallow was gone, leaving behind a cautionary tale about the gap between what customers value and what executives and investors want. The irony? They succeeded in their mission to disrupt the market – by 2028, the North American marshmallow market is projected to more than double its 2019 size, largely thanks to the premium category Smashmallow created. They just won’t be around to enjoy it.

A Bittersweet Paradox

For so many corporate innovators, this story hits close to home. How many promising projects died not because customers didn’t love them but because they couldn’t scale to “move the needle” for a multi-billion dollar corporation? A $15 million business might be a champagne-popping moment for an entrepreneur, but it barely registers as a rounding error on a Fortune 500 income statement.

This is the innovation paradox facing corporate innovators: The very pressure to go big or go home often destroys what makes an innovation special in the first place. It’s not enough to create something customers love – you must create something that can scale to satisfy the corporate appetite for growth.

Finding the Sweet Spot

The lesson isn’t that we should abandon ambitious scaling plans. Instead, we must be brutally honest about whether our drive for scale aligns with what makes our innovation valuable to customers. If it doesn’t, we must choose whether to scale back our ambitions (unlikely) or let go of our successful-but-small idea.

After all, not every marshmallow needs to be a mountain, but every mountain climber (that’s you) needs a mountain.

Image credit: Unsplash

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Innovation or Not – The VR Path to the Super Bowl

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Innovation or Not - The VR Path to the Super Bowl

GUEST POST from Art Inteligencia

In the competitive arena of sports, athletes and coaches are perpetually seeking the next edge, the innovative stroke of genius that will propel them towards success. Enter Jayden Daniels, a pioneer quarterback who has embraced one of the most cutting-edge tools in sports performance enhancement: Virtual Reality (VR) training. Is this a true innovation or just another gimmick? Let’s journey through the lens of Jayden’s experience and see how this technology is reshaping the sporting world.

The Virtual Reality Revolution in Sports

For decades, athletes have relied on traditional training regimes, focusing on physical conditioning and repetitive skill drills. However, VR has transformed the landscape by introducing immersive environments where athletes can practice without the physical constraints of time, space, or risk of injury. Through VR headsets and meticulously simulated environments, players like Jayden Daniels are able to visualize and rehearse plays and strategies, improve their decision-making, and enhance their mental resilience.

“VR training is like a playbook come to life—it gives players the opportunity to be in the game without being on the field.”

Realizing this potential, Daniels incorporated VR training into his routine, and the results have been phenomenal. His ability to read defenses and execute plays has been augmented by this technology, helping him transition from mere player to game-changer.

Here is a video that tells the in depth story with commentary, but it won’t let me embed it here so just click the link in the box to watch it on YouTube:

EDITOR’S NOTE: Key takeaways include the technology’s ability to run at 1.75x speed so that on game day things slow down for the quarterback and he is able to engage in extra preparation without the entire team having to be present, and even to familiarize himself with away stadium nuances like where the play clocks are, etc.

Case Study #1: The Championship Turnaround

One of the most striking illustrations of VR’s impact occurred during a pivotal championship game. Daniels’ team was facing a formidable opponent known for their complex defensive schemes. The team’s traditional preparation methods were proving inadequate against such a sophisticated defense.

In the weeks leading to the game, Daniels immersed himself in VR simulations of the opponent’s defense. He studied every blitz, every zone coverage, and every adaptive quirk under the close guidance of his coaches, who were able to create a virtual replica of the team they were facing. By the time the championship game arrived, Daniels was not only prepared—he was several steps ahead.

During the game, his performance was near flawless. He anticipated defensive movements with uncanny accuracy, leading his team to a come-from-behind victory that analysts credited in large part to his innovative use of VR.

The MVP Moment

This VR-driven insight culminated in one memorable play: a perfectly executed fake pass that caught the opposing defense entirely off-guard, leading to the game-winning touchdown. This wasn’t just victory—it was an unveiling of how technology and sport can harmonize to create extraordinary outcomes.

Case Study #2: The Rival Rumble

In another celebrated match-up, Daniels faced his long-time rivals—a team that had bested his own in recent seasons. Known for their reactive plays and dynamic shifts, this opponent posed a considerable mental challenge that extended beyond physical prowess.

Once again, VR training became Daniels’ secret weapon. By simulating hundreds of scenarios, his VR regimen enabled him to practice responses to the rival’s play-calling tendencies, helping him build a memory bank of potential outcomes and counter-strategies.

When faced with crucial decisions on the field, Daniels was markedly less stressed and more composed. He deftly outmaneuvered the rival’s defense, leading his team to a decisive victory, and doing so with an air of confidence that captivated spectators and silenced skeptics.

The VR Vision

By the end of the season, Daniels had not only improved his own performance but had also inspired a wave of interest and investment in VR training across the league. Teams began revisiting their training paradigms, nudging the sports industry towards a more tech-savvy future.

Innovation or Not?

Jayden Daniels’ success with VR training may invite debates about whether this is innovation or merely a novel tool in an athlete’s repertoire. Regardless of where you stand, what cannot be denied is the transformative impact VR has had on enhancing an athlete’s strategic prowess and mental fortitude.

Beyond just quick optical improvements, VR training stands at the intersection of cognitive science and performance enhancement, offering a paradigm where mental sharpness is honed in tandem with physical capabilities. For Daniels, and countless athletes following in his footsteps, VR presents a formidable new teammate in their quest for greatness.

As we stand at the threshold of a technologically enhanced sports era, the question still lingers in the locker room and boardrooms: Is VR the future of sports training, or just another fleeting fad? For Jayden Daniels, it’s clear that VR is more than just a tool—it’s a revelation.

Image credit: Wikimedia Commons – All-Pro Reels of District of Columbia, USA

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The Breakthrough Lifecycle

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The Breakthrough Lifecycle

GUEST POST from Greg Satell

Many experts suspect that the COVID crisis is receding into the background. It is, of course, hard to know for sure. There will continue to be debate and we will still need to have some mitigating measures in place. Still, for the most part, people are back at work, kids are in school, and relatively normal routines have returned.

Generations from now, historians will most likely still question what lessons are to be gleaned from the past few years. Should we strengthen our multilateral institutions or have they become so sclerotic that they need to be dismantled? Is the rise of populist nationalism a harbinger for the future or a flash in the pan?

One thing I don’t expect to be hotly debated, in fact seems perfectly clear even now, is that science saved us. Untold thousands, working mostly anonymously in labs around the world, created a vaccine of astonishing efficacy in record time. It is these types of breakthroughs that change the course of history and, if we can embrace their power, lead us to a better future.

A Seemingly Useless Idea

The MRNA technology that led to the Moderna and Pfizer-BioNTech vaccines have the potential to revolutionize medical science. It can rapidly reprogram the machinery in our cells to manufacture things that can potentially cure or prevent a wide range of diseases, from cancer to malaria, vastly more efficiently than anything we’ve ever seen before.

Yet while revolutionary, it is not at all a new idea. In fact Katalin Karikó, who pioneered the approach, published her first paper on mRNA-based therapy way back in 1990. Unfortunately, she wasn’t able to win grants to fund her work and, by 1995, things came to a head. She was told that she could either direct her energies in a different way, or be demoted.

This type of thing is not unusual. Jim Allison, who won the Nobel Prize for his work on cancer immunotherapy, had a very similar experience when he had his breakthrough, despite having already become a prominent leader in the field. “It was depressing,” he told me. “I knew this discovery could make a difference, but nobody wanted to invest in it.”

The truth is that the next big thing always starts out looking like nothing at all. Things that really change the world always arrive out of context for the simple reason that the world hasn’t changed yet.

Overcoming Resistance

Humans tend to see things in a linear fashion. It is easier for us to imagine a clear line of cause and effect, like a row of dominoes falling into each other, rather than a series of complex interactions and feedback loops. So it shouldn’t be surprising that, in hindsight, breakthrough ideas seem so obvious that only the most dim-witted would deny their utility.

When we think of something like, say, electricity, we often just assume that it was immediately adopted and the world simply changed overnight. After all, who could deny the superiority of an efficient electric motor over a big, noisy steam engine? Yet as the economist Paul David explained in a famous paper, it took 40 years for it to really take hold.

There are a few reasons why this is the case. The first is switching costs. A new technology almost always has to replace something that already does the job. Another problem involves establishing a learning curve. People need to figure out how to unlock the potential of the new technology. To bring about any significant change you first have to overcome resistance.

With electricity, the transition happened slowly. It wouldn’t have made sense to immediately tear down steam-powered factories and replace them. At first, only new plants used the electricity. Yet it wasn’t so much the technology itself, but how people learned to use it to re-imagine how factories functioned that unlocked a revolution in productivity gains.

In the case of mRNA technology, no one had seen a mRNA vaccine work, so many favored more traditional methods. Johnson & Johnson and AstraZeneca, for example, used a more traditional DNA-based approach using adenoviruses that was much better understood, rather than take a chance on a newer, unproven approach.

We seem to be at a similar point now with mRNA and other technologies, such as CRISPR. They’ve been proven to be viable, but we really don’t understand them well enough yet to unlock their full potential.

Building Out The Ecosystem

When we look back through history, we see a series of inventions. It seems obvious to us that things like the internal combustion engine and electricity would change the world. Still, as late as 1920, roughly 40 years after they were invented, most American’s lives remained unchanged. For practical purposes, the impact of those two breakthroughs were negligible.

What made the difference wasn’t so much the inventions themselves, but the ecosystems that form around them. For internal combustion engines it took a separate networks to supply oil, to build roads, manufacture cars and ships and so on. For electricity, entire industries based on secondary inventions, such as household appliances and radios, needed to form to fully realize the potential of the underlying technology.

Much of what came after could scarcely have been dreamed of. Who could have seen how transportation would transform retail? Or how communications technologies would revolutionize warfare? Do you really think anybody looked at an IBM mainframe in the 1960s and said, “Gee, this will be a real problem for newspapers some day?”

We can expect something similar to happen with mRNA technology. Once penicillin hit the market in 1946, a “golden age” of antibiotics ensued, resulting in revolutionary new drugs being introduced every year between 1950 and 1970. We’ve seen a similar bonanza in cancer immunotherapies since Jim Allison’s breakthrough.

In marked contrast to Katalin Karikó’s earlier difficulty in winning grants for her work, the floodgates have now opened as pharma companies are now racing to develop mRNA approaches for a myriad of diseases and maladies.

The Paradox Of New Paradigms

The global activist Srdja Popović once told me that when a revolution is successful, it’s difficult to explain the previous order, because it comes to be seen as unbelievable. Just as it’s hard to imagine a world without electricity, internal combustion or antibiotics today, it will be difficult to explain our lives today to future generations.

In much the same way, we cannot understand the future through linear extrapolation. We can, of course, look at today’s breakthroughs in things like artificial intelligence, synthetic biology and quantum computing, but what we don’t see is the second or third order effects, how they will shape societies and how societies will choose to shape them.

Looking at Edison’s lightbulb would tell you nothing about radios, rock music and the counterculture of the 60s, much like taking a ride in Ford’s “Model T” would offer little insight into the suburbs and shopping malls his machine would make possible. Ecosystems are, by definition, chaotic and non-linear.

What is important is that we allow for the unexpected. It was not obvious to anyone that Katalin Karikó could ever get her idea to work, but she shouldn’t have had to risk her career to make a go of it. We’re enormously lucky that she didn’t, as so many others would have, taken an easier path. It is, in the final analysis, that one brave decision that we have to thank for what promises to be brighter days ahead.

All who wander are not lost.

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

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Beating the Bougainvillea Blues

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Why cutting back can sometimes be the best innovation option

Beating the Bougainvillea Blues

GUEST POST from John Bessant

Every year about this time we move southwards. Like very late swallows. Desperately seeking some of the yellow stuff to help recharge our solar cells and thaw out frozen fingers. Our preferred destination is Cyprus, Aphrodite’s island, a jewel set in the Mediterranean whose long history of invasion by others suggests significant local attractions. In particular it has a track record of sunshine hours which is hard to match, an average of 300 days per year.

(Of course that begs the question of what climatic shape the other 65 days take and it would be greedy to expect the absence of a few drops of rain or the odd cloud or two….)

Unfortunately the changeable element in the weather pattern has a predilection for December/January and so this year we have enjoyed a meteorological smorgasbord in which the weather has been experimenting with all the things it otherwise never gets a chance to play with. Including hail, thunder, snow (visible in the distance dusting the mountaintops), winds, even waterspouts out at sea.

Plus rain. Quite a lot of it. In fact enough to challenge even my generous view that it’s OK to wash out another day of my sunshine stay because the dams need filling up ready for the dry spring and summer.

Despite this I’m mostly doing fine with my optimism, enjoying the peace and beauty of the island (when we can go outdoors) and compensating for the lack of sunshine by drinking its distilled variety in the form of local wines to accompany local foods, liberally sprinkled with excellent olive oil, again courtesy of the missing sunshine…

However this morning sees me a little end-of-year blue because I’m pressing my nose up against the rainy window pane to see the bougainvillea. Or rather not seeing it. Let me explain.

When we bought the house one of the things I loved was the bougainvillea. Three trees worth of it, massive gnarled old trunks which spiraled up and over a wooden pergola guiding the branches and leaves to create a spectacular roof of purple and red. Look down on it from the bedroom window and there is your magic carpet waiting for you to climb aboard and fly away, watching the world below through its soft feathery leaves. Look up at it and you have a wonderful cave of shade, shielding you from the fierce summer sun, with its thick green foliage and gentle impossible blossoms. Whichever angle you viewed it from the effect was the same — crystalized summer …

Except that last year the pergola frame on which this whole amazing confection was resting gave up the ghost. Pressed down and strangled by its burden of branches it finally began to lean dangerously to the point where we had to bite the horticultural bullet and rethink.

Our superhero builder Dave sucked his teeth, cocked his head a couple of times then confirmed that we needed to replace the frame with a stronger new pergola suitably secured to the ground. But in order to effect this reconstruction we’d need to cut back the bougainvillea. Big time.

Cue Ollie whose green fingers and experienced brain have learned to work with the island’s fecund sun-rich approach to growth. He reliably reassured us that the project would work and that, while the short-term operation might look a little savage, it would all come out right in the end. He reminded us that this was precisely why the local wines taste so good — because the vineyard owners understand the importance of pruning.

I’d noticed this; the winter round of hacking back the thick bushes which had been so rich in foliage and fruit to the point where there are just a few stumps sticking up like dead men’s fingers clawing at the sky. And yet by the spring time the whole glorious cycle starts to repeat itself. His parting words were along the lines of ‘trust me… Nature’s got this!’

We bit the bullet. So what greeted us this year on arrival was a somewhat stark reduction in the foliage. In fact no foliage at all, just a couple of very lonely-looking stumps…..

Not so easy on the eye but I’ll try to have faith. And at least it offers an interesting metaphor for how we might think about innovation management at the start of a New Year.

It’s a safe bet to assume that there are plenty of resolutions buzzing round the brains of those with a stake in helping create value from our ideas. Lots of good intentions about doing things differently in 2025, expansive plans to try out new approaches, deploy new tools, do new stuff.

And there’s no shortage of new things to try. There’s a whole industry out there dedicated to challenging us to revise our innovation approaches — research papers, conference speeches, benchmark case studies, even, dare I say it, the odd blog or two like this one. The invitation to re-frame, to reinvent ourselves comes at us from multiple angles — and there’s a bewildering but enticing display of new tools and techniques which threaten to turn us into children running through the innovation sweet-shop on a serious sugar high.

And now we have AI. You don’t need to be Cassandra to be capable of making a pretty safe bet — 2025 will be the year of AI moving mainstream. Already a majority of organizations report experimenting with the enormous opportunity; it won’t take long before that converts to proven improvements in practice. Changing the ways in which we work with innovation, the products and services we offer and the different targets we try to reach.

The danger in all of this is that we keep adding to our repertoire, adding more and more growth to our innovation operations. We risk them becoming a close cousin to my bougainvillea thicket, overgrown to the point of collapse.

Innovation is all about creating and developing ‘routines’ — patterns of behavior which enable us to repeat the innovation trick. We learn over time effective ways to make it happen — how we search effectively, how we choose amongst different opportunities, how we implement in agile fashion, streamlining the process of converting ideas to value. Over time we build on those which work for us, embedding them in ‘the way we do things round here’, shaping them into the kind of innovation system which the International Standards Organization now recommends. Not just slogans about the importance of innovation but the structures, processes and policies to enable those behaviors.

Managed well this is a prescription for healthy growth. But it’s not a matter of abstract systems or process flow charts; it’s much closer to the challenge of planting and tending an orchard. A rich harvest of innovation fruit comes from strong branches on trees which have matured thanks to careful cultivation. Maintaining what’s already established and allowing for new shoots, sprouting in new directions, opening up more possibilities for future growth.

This doesn’t happen by accident. We need to think about ‘innovation horticulture’ — how best to manage the orchard.

Orange Grove

That’s a lesson which has been learned quietly by many organizations, who’ve been playing the innovation long game. Members of the ‘Hundred Club’, those who’ve survived and thrived over a century or more. Organizations which have ridden out some stormy weather by a commitment to innovation and to creating the kind of innovation system of which the ISO would be proud.

What they have in common is the ability to maintain what works, not just following fashion but carefully reviewing how they manage innovation on a regular basis. They’ve become skilled at enabling new growth through adding new routines, analogous to planting new saplings or grafting new strains on to old branches. Above all they’ve mastered the art of pruning to create space for this to happen.

This is the key part of the dynamic capability which innovation represents. The ability to step back and review, asking three simple questions. Of the innovation routines, the way we manage the process:

· What do we need to do more of, reinforce and strengthen?

· What do we need to do less of, even stop?

· And what new routines do we need to develop to cope with new challenges?

It’s as much about letting go as it is about adding new approaches. And it is crucially about strategically identifying where we need the new growth to come from. Just like a skilled gardener cuts back deep but also makes sure she has identified the spurs, the tiny buds which will provide the sites from which new things become possible.

This extended gardening metaphor might sound a little fanciful but we’ve got plenty of examples to illustrate it. Think about 3M, one of the longest established innovation gardens, still able to grow vigorously in new directions after well over a hundred years. During the early part of this century the company invested heavily in developing routines around six sigma and process improvement, securing significant gains in terms of productivity. But it soon became clear that the relentless focus on doing what they already did but better was driving out their capacity for breakthrough innovation. So the program was pruned to allow more exploration space. Importantly it wasn’t abandoned but rather trimmed back to enable new growth to come through.

Or Procter and Gamble, making the bold decision to cut back on the long (150 years) tradition of routines built around research and development and making the radical shift to a more open approach. ‘Connect and develop’ is now at the heart of how they innovate, drawing in a steady flow of ideas from outside the company alongside their internal capabilities. It has taken a quarter of a century for these new routines to mature but they now yield significant gains across the innovation spectrum.

Or the German company Hella, experiencing a key challenge around its rapid growth from being a successful 19th century start-up to a large established player. Its early experience helped create routines around new opportunities, triggered by new technologies and by discovering new market niches. There was plenty of innovation activity, a veritable hive of creativity with bees buzzing in and out working on a growing number of projects. But proliferating projects meant increasing costs and growing confusion around priorities which could only be solved by adding more minds to the mix. In the end the innovation engine began spinning out of control, overheating with all the innovation efforts.

It came to a head with a review which suggested that of the roughly 4000 products in the range at that time the vast majority took up time and effort but made little contribution. In particular it suggested that:

· 95 products were responsible for around 80% of turnover and 34% of R&D costs

· 305 were responsible for 15% turnover and 35% R&D

· 3100 were responsible for 5% of turnover and 31% of R&D !!!

The answer wasn’t to slam feet on the innovation brakes and stop. But it was about pruning, cutting back on most of the projects and focusing attention on those with strategic contributions to make. And having done this, to put in place new systems for project selection, portfolio management and regular staged reviews.

So whilst I’m still harboring doubts I’m hoping to see a bougainvillea renaissance beginning on my next visit. A sort of blooming version of ‘Field of Dreams’. As with baseball teams so with pergolas and bougainvillea bushes. Create the space — and the new growth will come.

Of course it’s not just about cutting back to make space in our innovation garden. The other side of this involves introducing new routines to enable new growth. But these by their nature will be young seedlings, not well-established trees. They need careful tending and experienced innovation gardeners understand the importance of supportive structures and growth regimes to help them take root. Using canes and trellises, introducing fertilizers and nutrients and above all keeping a careful eye on these early-stage experiments. They won’t all survive but those proto-routines of today could become critical capabilities in the future so it’s worth investing the time and effort now.

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Image credits: Dall-E

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