The Coming Leadership Confidence Crisis

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Executive Trust in Their Teams is Plummeting – Here is How to Rebuild It

The Coming Leadership Confidence Crisis

GUEST POST from Robyn Bolton

“Trust no one.  Suspect everyone.”  Great advice if you’re an MI6 agent trying to uncover a spy at the height of the Cold War.  Not great advice if you’re a senior executive responsible for leading a team to deliver record results.  So, when a report titled “Leadership Confidence Falls to Three-Year Low” was published, I hoped it was clickbait.  So I clicked.

Things only got worse.

While two-thirds of CEOs believe that their teams role model the right culture and behaviors, work together effectively as a team, and effectively embrace change, everyone else disagrees.  Only about half the C-suite believes their teams work together well, are role models, and embrace change.  The lower in the organization you go, the lower those percentages get.

Why confidence is at an all-time low

In a word – change.  Neither humans nor financial markets like change, and that’s all we’ve experienced for the past four years.  “From the conflicts in Ukraine and the Middle East and their destabilizing effects on the world, to inflation, rising interest rates, and the launch of ChatGPT igniting massive interest in generative AI, the leadership landscape has been far from quiet. What’s more, nearly half of the world’s population is set to head to the polls for what many are calling a ‘super election year.’”

None of this is the executive team’s fault, but the relentless nature of depressing and destabilizing news wears everyone down.  As a result, people have less patience and empathy and are quicker to anger, judge, and blame others.  Senior execs are people, too.  And they’re taking their exhaustion out on the people they spend the most time with – their teams.

What you can do about it

If you have the power to stop the wars, improve the financial markets, quell GenAI fears, and ensure that democracy reigns, please use that power now. (Also, what have you been waiting for?)

If you do not have such powers, there is still something you can do: Build trust.

Researchers found that leaders of high-performing organizations are 8x more likely to feel that their teams practice and role model high levels of trust in all their interactions across the organization. But the teams won’t practice and role model trust if you don’t set the example through:

  1. Inclusive, transparent, and vulnerable communication – Most of us grew up in cultures where information is power, so it is hard to build a habit of sharing information with everyone on the team, especially if it isn’t good news. But if you want your people to work together as a team, you can’t create cliques or pick and choose the information you share.  There is no trust where there are Haves and Have Nots.
  2. Lead by listening and collaborating – In case you haven’t noticed, command and control styles of management don’t work anymore.  The people on your teams are experienced adults with good ideas.  Treat them like adults, value their experience, and listen to their ideas.  You’ll be pleasantly surprised by what you hear and earn.
  3. Be consistent – If one of the causes of the problem is change and you want to be part of the solution, do the opposite – be consistent.  Yes, things can change, but who you are, the values you role model, and how you treat people shouldn’t.  When things change (and they will), remember that decisions made with data should only be unmade with data.  Then, communicate those changes broadly, transparently, and honestly (see #1)

What will you do about it?

Rebuilding trust within your team isn’t a quick fix; it’s an ongoing process that requires commitment and consistency. By being transparent, authentic, and reliable, fostering open communication, and empowering your team, you can create a high-trust environment that drives success.

What steps are you taking to (re)build trust within your teams? Share your thoughts and let’s navigate this journey together. Remember, trust is the glue that holds your team together and propels your organization forward.

Image credit: Pixabay

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Five Things Most Managers Don’t Know About Innovation

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Five Things Most Managers Don't Know About Innovation

GUEST POST from Greg Satell

Every business knows it needs to innovate. What isn’t so clear is how to go about it. There is no shortage of pundits, blogs and conferences that preach the gospel of agility, disruptive innovation, open innovation, lean startups or whatever else is currently in vogue. It can all be overwhelming.

The reality is that there is no one ‘true’ path to innovation. In researching my book, Mapping Innovation, I found that organizations of all shapes and sizes can be great innovators. Some are lean and nimble, while others are large and bureaucratic. Some have visionary leaders, others don’t. No one model prevails.

However, there are common principles that we can apply. While there is no “right way” to innovate, there are plenty of wrong ways. So perhaps the best way forward is to avoid the pitfalls that can undermine innovative efforts in your organization and kill promising new solutions. Here are five things every business should know about innovation.

1. Every Square-Peg Business Eventually Meets Its Round-Hole World

IBM is many peoples’ definition of a dinosaur. Not too long ago, it announced its 22nd consecutive quarter of declining revenues. Nevertheless, it seems to be turning a corner. What’s going on? How can a century-old technology company survive against the onslaught of the 21st century phenoms like Google, Amazon, Apple and Facebook?

The truth is that this is nothing new for IBM. Today, its business of providing installed solutions for large enterprises is collapsing due to the rise of the cloud. In the 90s it was near bankruptcy. In the 50s, its tabulating machine business was surpassed by digital technology. Each time eulogies are paraded around for Big Blue it seems to come back even stronger.

What IBM seems to understand better than just about anybody else is that every square-peg business eventually meets its round-hole world. Changes in technology, customer preferences and competitive environment eventually render every business model irrelevant. That’s just reality and there really is no changing it.

IBM’s secret weapon is its research division, which explores pathbreaking technologies long before they have a clear path to profitability. So when one business dies they have something to replace it with. Despite those 22 quarters of declining revenues it has a bright future with things like Watson, quantum computing and neuromorphic chips.

It’s better to prepare than adapt.

2. Innovation Isn’t About Ideas, It’s About Solving Problems

Probably the biggest misconception about innovation is that it’s about ideas. So there is tons of useless advice about brainstorming methods, standing meetings and word games, such as replacing “can’t” with “can if.” If these things help you work more productively, great, but they will not make you an innovator.

In my work, I speak to top executives, amazingly successful entrepreneurs and world class scientists. Some of these have discovered or created things that truly changed the world. Yet not once did anyone tell me that a brainstorming session or “productivity hack” set them on the road to success. They were simply trying to solve a problem that was meaningful to them.

What I do hear a lot from mid-level and junior executives is that they are not given “permission” to innovate and that nobody wants to hear about their ideas. That’s right. Nobody wants to hear about your ideas. People are busy with their own ideas.

So stop trying to come up with some earth shattering idea. Go out and find a good problem and start figuring out how to solve it. Nobody needs an idea, but everybody has a problem they need solved.

3. You Don’t Hire Or Buy Innovation, You Empower It

One of the questions I always get asked when I advise organizations is how to recruit and retain more innovative people. I know the type they have in mind. Someone fashionably dressed, probably with some tasteful piercings and some well placed ink, that spouts off a never-ending stream of ideas.

Yet that’s exactly what you don’t want. That’s exactly the type of unproductive hotshot that can stop innovation in its tracks. They talk over other people, which discourages new ideas from being voiced and their constant interruptions kill collaboration.

The way you create innovation is by empowering an innovative culture. That means creating a safe space for ideas, fostering networks inside and outside the organization, promoting collaboration and instilling a passion for solving problems. That’s how you promote creativity.

So if you feel that your people are not innovating, ask yourself what you’re doing to get in their way.

4. If Something Is Truly New And Different, You Need a “Hair On Fire” Use Case

As a general operational rule, you should seek out the largest addressable market you can find. Larger markets not only have more money, they are more stable and usually more diverse. Identifying even a small niche in a big market can make for a very profitable business.

Unfortunately, what thrives in operations can often fail for innovation. When you have an idea that’s truly new and different, you don’t want to start with a large addressable market. You want to find a hair-on-fire use case — somebody that needs a problem solved so badly that they either already have a budget for it or have scotched-taped together some half solution.

The reason you want to find a hair-on-fire use case is that when something is truly new and different, it is untested and poorly understood. But someone who needs a problem solved really badly will be willing to work with you to find flaws, fix them and improve your offer. From there you can begin to scale up and hunt larger game.

5. You Need To Seek Out A Grand Challenge

Most of the problems we deal with are relatively small. We cater to changing customer tastes, respond to competitive threats and fix things that are broken. Sometimes we go a bit further afield and enter a new market or develop a new capability. These are the bread and butter of a good business. That’s how you win in the marketplace.

Yet every business is ultimately disrupted. When that happens, normal operating practice will only make you better and better at things people care less and less about. You can’t build the future by looking to the past. You build the future by creating something that’s new and important, that solves problems that are currently unsolvable.

That’s why every organization needs to seek out grand challenges. These are long, sustainable efforts that solve a fundamental problem in your industry or field that change the realm of what’s considered possible. They are not “bet the company” initiatives and shouldn’t present a material risk to the business if they fail, but have a transformational impact if they succeed.

As I noted above, there is no one “true” path to innovation. Everybody needs to find their own way. Still, there are common principles and by applying them, every business can up their innovation game.

— Article courtesy of the Digital Tonto blog and previously appeared on Harvard Business Review
— Image credits: Pexels

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Bringing Emotional Energy and Creative Thinking to AI

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Bringing Emotional Energy and Creative Thinking to AI

GUEST POST from Janet Sernack

The impact of disruption, hyper-connectivity, and uncertainty, coupled with the pace of change, is causing many people to feel fearful and anxious. They become defensive and reactive and ‘go under’ emotionally and ‘go inwards’ cognitively by ruminating about their past and what bad things may happen in the future.  Dwelling on past mistakes, failures, and poor performance also causes them to disengage emotionally, take flight and move away, avoid taking action, fight, or freeze and become inert, paralyzed, and immobilized. The outcome is resistance to the possibilities and creative changes using Generative AI might bring. Because they lack the vital creative and emotional energy to generate creative thinking in partnership with AI, they will resist innovation-led change and stay ‘stuck’ in their habitual, safe and conventional roles, capabilities and identities.

Emotional energy is the catalyst that fuels the creative process. Understanding and harnessing this energy inspires and motivates individuals to explore and embrace creative thinking strategies in partnership with AI.

When a person’s emotional energy has contracted, it results in constrained, negative, pessimistic, and even catastrophic thinking habits.

Where there is no space, doorway, or threshold to take on anything new, novel, or different or to imagine what might be possible in an uncertain future to evolve, advance, or transform their personal or professional lives.

Emotional energy catalyzes people’s hope, positivity and optimism to approach their worlds differently.

When people are constrained from becoming hopeful, positive, and optimistic, they cannot apply foresight to explore future possibilities and opportunities at the accelerating pace that Generative AI tools offer in unleashing the human ingenuity and generating creative thinking required to solve challenges and increasingly complex problems.

Augmenting human creativity

Generative AI, as highlighted in a recent Harvard Business Review article, How Generative AI can Augment Human Creativity, has the potential to assist humans in creating innovative solutions. Its role is not to replace humans but to augment their creativity, helping them generate and identify novel ideas and improve the quality of raw ideas.

To empower individuals to make intelligent decisions and solve complex problems, it is crucial to notice, disrupt, dispute and deviate from their unresourceful default patterns or habitual ways of doing things.

Because emotional energy is the catalyst that fuels the creative process, it is crucial to help people find ways to re-ignite their emotional energy.

Empowering, enabling, and equipping them to embody and take on new, more resourceful emotional states and traits that allow them to break free from the constraints by identifying and letting go of old, irrelevant roles, capabilities, and identities. To take on new ones to facilitate positive changes, solve challenges, and deliver highly valued innovative solutions in partnership with Generative AI to generate creative thinking.

Generating the power of questions in problem-solving

I applied and implemented three key strategies to partner with Generative AI during the six-month coaching partnership. I used creative thinking strategies to develop a comprehensive life-coaching plan for a coaching client that serendipitously co-created a range of transformational outcomes.

Identify the key challenges, strengths, and systemic nature of the core problem and set a goal for change.

Encouraged to experiment with coaching in partnership with Generative AI, I created a comprehensive summary of what my client and I agreed her core problem was.  We defined a goal for effecting positive and constructive change and outlined evidence of achieving a successful outcome. I incorporated these elements into a descriptive paragraph and uploaded it into the Generative AI platform.

Develop a range of catalytic questions.

I focused on designing four key catalytic questions, to evoke and provoke creative thinking strategies. I requested the platform to design and develop a life-coaching plan to achieve our goal and solve her unique problem:   

Integration involves showing that two things which appear to be different are actually the same:

  • What might be some key existing transformational coaching elements that can be integrated into the new life-coaching plan I am trying to create to solve this problem?
  • Splitting involves seeing how two things that look the same might actually be different and can be divided into useful parts, like an assembly line:
  • What might be some key components of transformational coaching plans that can be combined to connect with a life-coaching plan to help solve this problem?
  • Figure-ground reversal involves realizing that what is crucial is in the background and not in the foreground, like the invention of Slack.
  • What might be some of the missing parts in the transformational and life coaching processes that might be included to help solve this problem?
  • Distal thinking involves imagining things different from the present, like the Tesla electric car.
  • What could be possible without boundaries, rules or limitations in harnessing the emotional energy required to partner with my client in our coaching relationship?
  • How might I create value for my client? What key constraints in her whole system relate to life coaching, and how might I leverage these to solve the problem differently?

It took less than a minute and consisted of a comprehensive, step-by-step, detailed plan that would have taken me at least half a day to consider and construct.

I was delighted to have an evidence-based example of successfully augmenting human creativity, partnering with Generative AI to generate creative thinking to advance my coaching partnership.

Partner with applying a transformational process.

It took less than a minute and consisted of a comprehensive, step-by-step, detailed plan that would have taken me at least half a day of using my pause-power to construct. I was delighted to have an evidence-based example of successfully augmenting human creativity to experiment with when partnering with Generative AI to generate creative thinking in my coaching partnership:

  • Generating and identifying a range of novel ideas towards improving her well-being.
  • Exploring and improving the range and quality of the initial raw ideas by applying pause power to incubate, illuminate, and generate creative thinking.
  • Identifying and developing a range of options for my client to choose from, allowing her to let go of what was depleting her emotional energy and retain her hopefulness, positivity, and optimism.
  • Identifying and developing a range of options for my client to choose from, to take on to manifest the desired future state of well-being and re-energize her emotional energy.

What was the outcome?

By co-creating a safe and collective holding space with my client, we supported her in re-energizing emotionally and applying future-oriented creative thinking strategies. We partnered with Generative AI to innovate my coaching approach and maximize our intelligence.

The outcome was personally transformative and sustained by:

  • Ensuring she re-ignited and identified strategies and new habits to sustain her emotional energy and make the necessary changes and future choices.
  • Applying circuit breakers and divergent thinking strategies to disrupt and dispute unresourceful beliefs, biases and behavior patterns.
  • Creating a safe space allowed her to deviate from her feelings, thoughts, and mindset to identify what new roles, capabilities, and identities to take on in the future and how they could benefit her and add value to the quality of her life.
  • Assisting in creating various ideas and options to refine when making significant lifestyle change choices.

It was a powerful learning experience for both my client and myself, reinforcing and validating that “Generative AI’s greatest potential is not replacing humans; it is to assist humans in their individual and collective efforts to create hitherto unimaginable solutions. It can truly democratize innovation.”

Please find out more about our work at ImagineNation™.

Check out our learning products and tools, including The Coach for Innovators, Leaders, and Teams Certified Program, presented by Janet Sernack. It is a collaborative, intimate, and profoundly personalised innovation coaching and learning program supported by a global group of peers over nine weeks and can be customised as a bespoke corporate learning program. Please find out more about our products and tools.

Image Credit: Pixabay

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Delivering Customer Value is the Key to Success

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Delivering Customer Value is the Key to Success

GUEST POST from Mike Shipulski

Whatever your initiative, start with customer value. Whatever your project, base it on customer value. And whatever your new technology, you guessed it, customer value should be front and center.

Whenever the discussion turns to customer value, expect confusion, disagreement, and, likely, anger. To help things move forward, here’s an operational definition I’ve found helpful:

When they buy it for more than your cost to make it, you have customer value.

And when there’s no way to pull out of the death spiral of disagreement, use this operational definition to avoid (or stop) bad projects:

When no one will buy it, you don’t have customer value and it’s a bad project.

As two words, customer and value don’t seem all that special. But, when you put them together, they become words to live by. But, also, when you do put them together, things get complicated. Here’s why.

To provide customer value, you’ve got to know (and name) the customer. When you asked “Who is the customer?” the wheels fall off. Here are some wrong answers to that tricky question. The Board of Directors is the customer. The shareholders are the customers. The distributor is the customer. The OEM that integrates your product is the customer. And the people that use the product are the customer. Here’s an operational definition that will set you free:

When someone buys it, they are the customer.

When the discussions get sticky, hold onto that definition. Others will try to bait you into thinking differently, but don’t bite. It will be difficult to stand your ground. And if you feel the group is headed in the wrong direction, try to set things right with this operational definition:

When you’ve found the person who opens their wallet, you’ve found the customer.

Now, let’s talk about value. Isn’t value subjective? Yes, it is. And the only opinion that matters is the customer’s. And here’s an operational definition to help you create customer value:

When you solve an important customer problem, they find it valuable.

And there you have it. Putting it all together, here’s the recipe for customer value:

  • Understand who will buy it.
  • Understand their work and identify their biggest problem.
  • Solve their problem and embed it in your offering.
  • Sell it for more than it costs you to make it.

Image credit: Unsplash

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The Key Customer Service Pillar

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The Key Customer Service Pillar

GUEST POST from Shep Hyken

Megan Jones of Call Centre Helper recently interviewed me about the “Pillars of Customer Service.” In preparation, I did a Google search and asked, “What are the pillars of customer service?”

There are many correct answers. In other words, there are no definitive answers. Some of the information and articles included words and phrases such as:

  1. Personalization
  2. Responsiveness
  3. Integrity
  4. Knowledge
  5. Empathy
  6. Patience
  7. Problem-solving skills
  8. Communication
  9. People first

There were many others as well, but one I didn’t see in any of the Google responses was respect. I’m sure some companies have incorporated the word respect into their Pillars of Customer Service; however, the almighty and powerful Google didn’t mention them. I even asked my close friend, ChatGPT, and it didn’t come up with the word respect either. I responded, “I’m surprised none of my Google searches or my query with you didn’t mention the word respect. Maybe I’m on to something.”

ChatGPT came back with a great answer. “Your observation highlights a valuable insight into possibly under-served areas of discussion in customer service. … This could be a compelling topic for your next customer service keynote speech, article or book, offering a unique viewpoint that can resonate deeply with businesses striving to elevate their customer service quality.”

Thank you, ChatGPT!

So, let’s talk about the never-mentioned pillar: respect. First, some definitions.

  • Cambridge Dictionary includes “politeness, honor and care shown toward someone or something that is considered important.”
  • Merriam-Webster Dictionary includes “high or special regard.”
  • Dictionary.com includes “to show regard or consideration for.”

All customer service pillars involve some degree of respect. They all aim at one single idea: to give the customer the best experience possible. In other words, respect their decision to do business with you in all possible ways, and they will respect you as a company or brand, hopefully in the form of repeat business—maybe even loyalty.

Respect is a lofty goal. Unfortunately, the majority of companies and brands don’t deliver on the concept, at least according to the more than 1,000 customers we surveyed for our annual customer service and CX study. Specifically, we asked if customers felt brands and companies respected their time. Why time? Because it’s something that, once it’s gone, can never be recaptured. It’s precious to many and one of the easiest ways to show a level of respect—or in some cases—a lack of respect. The results of the survey were telling:

61% of customers don’t think companies or brands respect their time.

This is not the answer most of us would hope for. There are many ways customers feel they are disrespected. We asked them what would likely cause them to switch to a different company or brand.

    • More than half (51%) are likely to switch companies or leave a brand because they had to wait too long on hold. How long someone is willing to wait is an individual preference, so maybe this should be the next question on your customer satisfaction survey: How long are you willing to wait before you become frustrated when holding to talk to a customer service or sales agent? If a bad customer service experience includes the customer feeling disrespected for any reason, don’t be surprised if they don’t come back.
    • Even more—60% of customers—are likely to switch companies or leave a brand because the company didn’t respond fast enough. How fast is fast enough? If a customer wanted to wait six hours for an answer to their question, they would have waited six hours to ask it. Once again, time is an opportunity to show respect (or disrespect).
    • And 75% of customers are likely to switch companies or leave a brand because the company didn’t respond at all. This sends a message that the company doesn’t respect the customer at all.

Respecting a customer’s time is just one way to show respect. Kindness, being proactive and recognizing and appreciating a customer for their business are just a few more ways—of many—to show respect.

Here’s a homework assignment. Sit down with your team and ask two questions:

      1. How do we show our customers we respect them?
      2. Are we doing anything that would show our customers we don’t respect them—even if that’s not our intention?

These two questions could give you answers and ideas that will enhance your relationship with your customers by proving your respect and appreciation for them.

This article originally appeared on Forbes.com

Image Credits: Pexels

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What Your Website Reveals About Your Brand

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What Your Website Reveals About Your Brand

GUEST POST from Howard Tiersky

For the past few weeks, I’ve been sitting in a lot of usability testing sessions for web and mobile sites. In particular, for two sites that we are beginning the process of re-doing for clients. I’ve noticed a consumer pattern jumping out across multiple subjects in tests for both clients. It’s something that I think its relevant to pretty much everybody working on a digital touchpoint.

Brands spend a lot of energy (and in some cases, money,) on the copy and content they put on their sites to tell you about their brand and products. But listening to all these research subjects, I hear so much cynicism about what brands say about themselves. Maybe its the impact of election season, but consumers seem to be at the point where they just assume that most of what brands say about themselves are somewhere between an exaggeration and an outright lie.

As a result, what I am hearing from these customers of our clients is that they feel they need to ‘read between the lines’ to predict what they can actually expect if they decide to move forward and do business with a brand, whether its a bank or a breakfast cereal. And how do they do that? By evaluating the quality and experience of the brand’s digital presence.

For the consumers we have studied, the experience of a brand’s site (or mobile site or app) is what you have “told” the customer the experience of your product will be. Period.

You can write copy that states your product is friendly, easy to use, and fun, but if your website is confusing and disorganized, or has errors or broken image links, THAT is the message people take away. If your signup process is cumbersome, they assume so will be your product. If your error messages are unfriendly, they assume that’s the same characteristic they can expect from your customer service.

It’s perhaps an obvious insight that the quality of your web experience reflects on your brand, but what I’m saying goes a step beyond that. Whatever the experience of your website is, that is your brand and the quality expectation you’re setting, especially for prospective customers, who don’t yet have other experiences of your products or services.

Sadly, in the case of several different tests, I sat in over this past weekend, the experience was flawed — no doubt in part why we’d been hired to re-do them. Large investments had been made in features and content. Both sites had some great attributes and were visually appealing. But when you started using them, they had small inconsistencies confusing terms, occasional bugs, and other small “broken window” type defects that, when aggregated together in a total experience, left the research subjects saying things like, “I’m not sure I’d trust my taxes to a company who makes these kinds of mistakes. I don’t want mistakes like that on my tax return,” and “Their product is pretty expensive, and my sense from this site experience is that…it’s probably not better than cheaper products out there.”

It may seem discouraging that consumers “jump to conclusions” as a result of small defects or flaws in your digital experience. But here’s two pieces of good news: First, so often these problems are not that difficult to fix! A thorough heuristic and usability analysis can often be achieved in a few weeks. So often this yields dozens of small issues that can be improved with minimal effort. Of course, deeper problems can also be uncovered, and these may be more time consuming to address, however understanding the magnitude of the issue and the business impact that its having is the first step towards solving it. And second, this connection is not all bad. Prospective customers may be cynical about what you say, but their belief in the veracity of their experience means that by delivering a first-class digital journey you can persuade them that your brand is worthy of their trust and create positive expectations of your products and services.

So how do you figure out the right answer, get everyone on the same page, and focus on a common innovation goal? At FROM, we use a specific model to approach the process of identifying the most relevant opportunity areas for innovation, and to build group consensus around the best approach. You’ll have to adapt it to your situation, but the model should provide a good starting framework.

This article originally appeared on the Howard Tiersky blog
Image Credits: Pixabay

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Adjacent Innovation is the Key to Growth and Risk

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Adjacent Innovation is the Key to Growth and Risk

GUEST POST from Robyn Bolton

It’s not easy leading innovation.  Especially these days.  You need to do more with less.  Take risks while guaranteeing results.  Keep up with competition through incremental innovation and redefine the industry with radical and disruptive innovation.  It’s maddening.  Until you find the Goldilocks Zone of adjacent innovation.

Adjacent Innovation: From Middle Child to Just Right

As HBS Professor Regina E. Herzlinger and her co-authors point out in a recent HBR article, the US is in the midst of an innovation crisis. The cost of lost productivity, estimated at over $10 trillion between 2006 and 2018, is a stark reminder of the economic consequences of a lack of innovation. This figure, equivalent to $95,000 per US worker, should serve as a wake-up call to the importance of innovation in driving economic growth.

The authors identify the root cause of this loss as the ‘polarized approach companies take to innovation.’ While companies focus on incremental innovation, the safe and reliable oldest child of the innovation family, the Venture Captialists chase after radical, transformative innovations, the wild, charismatic, free-spirited youngest child.  Meanwhile, adjacent innovation – new offerings and business models for existing customers or new customers for existing offerings and business models – is, like the middle child, too often overlooked.

It’s time to rediscover it.  In fact, it’s also time to embrace and pursue it as the most promising path back to growth.   While incremental innovation is safe and reliable, it’s also the equivalent of cold porridge. Radical or transformative innovation is sexy, but, like hot porridge, it’s more likely to scorch than sustain you. Adjacent innovation, however, is just right – daring enough to change the game and leapfrog the competition and safe enough to merit investment and generate short-term growth.

Proof in the Porridge: 4x the returns in HALF the time

Last year, I worked with an industrial goods company. Their products aren’t sexy, and their brands are far from household names, but they make the things that make America run and keep workers (and the public) safe. The pandemic’s supply chain disruptions battered their business, and their backlog ballooned from weeks to months and even years.  Yet amidst these challenges, they continued to look ahead, and what they saw was a $6M revenue cliff that had to be filled in three years and a product and innovation pipeline covered in dust and cobwebs.

From Day 1, we agreed to focus on adjacent innovation.  For four weeks, we brainstormed, interviewed customers, and analyzed their existing offerings and capabilities, ultimately developing three concepts – two new products for existing customers and one existing product repositioned to serve a new customer.  After eight more weeks of work, we had gathered enough data to reject one of the concepts and double down on the other two.  Three months later, the teams had developed business cases to support piloting two of the concepts.

It took six months to go from a blank piece of paper to pilot approval.

It took just another 12 months to record nearly $25M in new revenue.

Those results are more than “just right.”

Be Goldilocks. Pursue Adjacent Innovation

Every organization can pursue adjacent innovation.  In fact, most of the companies we consider amongst the world’s “Most Innovative” have that reputation because of adjacent innovation. 

How will you become your organization’s Innovation Goldilocks and use adjacent innovation to create “just right” growth?

Image credit: Pixabay

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How to Avoid AI Project Failures

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How To Avoid AI Project Failures

GUEST POST from Greg Satell

A survey a few years ago by Deloitte of “aggressive adopters” of cognitive technologies found that 76% believe that they will “substantially transform” their companies within the next three years. There probably hasn’t been this much excitement about a new technology since the dotcom boom years in the late 1990s.

The possibilities would seem to justify the hype. AI isn’t just one technology, but a wide array of tools, including a number of different algorithmic approaches, an abundance of new data sources and advancement in hardware. In the future, we will see new computing architectures, like quantum computing and neuromorphic chips, propel capabilities even further.

Still, there remains a large gap between aspiration and reality. Gartner estimated that 85% of big data projects fail. There have also been embarrassing snafus, such as when Dow Jones reported that Google was buying Apple for $9 billion and the bots fell for it or Microsoft’s Tay chatbot went berserk on Twitter. Here’s how to transform the potential of AI into real results.

Make Your Purpose Clear

AI does not exist in a vacuum, but in the context of your business model, processes and culture. Just as you wouldn’t hire a human employee without an understanding of how he or she would fit into your organization, you need to think clearly about how an artificial intelligence application will drive actual business results.

“The first question you have to ask is what business outcome you are trying to drive,” Roman Stanek, CEO at GoodData, told me. “All too often, projects start by trying to implement a particular technical approach and not surprisingly, front-line managers and employees don’t find it useful. There’s no real adoption and no ROI.”

While change always has to be driven from the top, implementation is always driven lower down. So it’s important to communicate a sense of purpose clearly. If front-line managers and employees believe that artificial intelligence will help them do their jobs better, they will be much more enthusiastic and effective in making the project successful.

“Those who are able to focus on business outcomes are finding that AI is driving bottom-line results at a rate few had anticipated,” Josh Sutton, CEO of Agorai.ai, told me. He pointed to a McKinsey study from a few years ago that pegs the potential economic value of cognitive tools at between $3.5 trillion and $5.8 trillion as just one indication of the possible impact.

Choose The Tasks You Automate Wisely

While many worry that cognitive technologies will take human jobs, David Autor, an economist at MIT, sees the the primary shift as one of between routine and nonroutine work. In other words, artificial intelligence is quickly automating routine cognitive processes much like industrial era machines automated physical labor.

To understand how this can work, just go to an Apple store. Clearly, Apple is a company that clearly understands how to automate processes, but the first thing you see when you walk into an Apple store you see is a number employees waiting to help you. That’s because it has chosen to automate background tasks, not customer interactions.

However, AI can greatly expand the effectiveness of human employees. For example, one study cited by a White House report during the Obama Administration found that while machines had a 7.5 percent error rate in reading radiology images and humans had a 3.5% error rate, when humans combined their work with machines the error rate dropped to 0.5%.

Perhaps most importantly, this approach can actually improve morale. Factory workers actively collaborate with robots they program themselves to do low-level tasks. In some cases, soldiers build such strong ties with robots that do dangerous jobs that they hold funerals for them when they “die.”

Data Is Not Just An Asset, It Can Also Be A Liability

For a long time more data was considered better. Firms would scoop up as much of it as they could and then feed it into sophisticated algorithms to create predictive models with a high degree of accuracy. Yet it’s become clear that’s not a great approach.

As Cathy O’Neil explains in Weapons of Math Destruction, we often don’t understand the data we feed into our systems and data bias is becoming a massive problem. A related problem is that of over-fitting. It may sound impressive to have a model that is 99% accurate, but if it is not robust to changing conditions, you might be better off with one that is 70% accurate and simpler.

Finally, with the implementation of GDPR in Europe and the likelihood that similar legislation will be adopted elsewhere, data is becoming a liability as well as an asset. So you should think through which data sources you are using and create models that humans can understand and verify. “Black boxes” serve no one.

Shift Humans To Higher Value Tasks

One often overlooked fact about automation is that once you automate a task, it becomes largely commoditized and value shifts somewhere else. So if you are merely looking to use cognitive technologies to replace human labor and cut costs, you are most probably on the wrong track.

One surprising example of this principle comes from the highly technical field of materials science. A year ago, I was speaking to Jim Warren of the Materials Genome Initiative about the exciting possibility of applying machine learning algorithms to materials research. More recently, he told me that this approach has increasingly become a focus of materials research.

That’s an extraordinary shift in one year. So should we be expecting to see a lot of materials scientists at the unemployment office? Hardly. In fact, because much of the grunt work of research is being outsourced to algorithms, the scientists themselves are able to collaborate more effectively. As George Crabtree, Director of the Joint Center for Energy Storage Research, which has been a pioneer in automating materials research put it to me, “We used to advance at the speed of publication. Now we advance at the speed of the next coffee break.”

And that is the key to understanding how to implement cognitive technologies effectively. Robots are not taking our jobs, but rather taking over tasks. That means that we will increasingly see a shift in value from cognitive skills to social skills. The future of artificial intelligence, it seems, is all too human.

— Article courtesy of the Digital Tonto blog and previously appeared on Harvard Business Review
— Image credits: Pexels

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Secrets to Overcoming Resistance to Change

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Secrets to Overcoming Resistance To Change

GUEST POST from David Burkus

Employee resistance to change is one of the most perplexing and challenging issues that business executives encounter. Senior leaders have mapped out a change initiative and, in the process, gotten themselves excited about the future only to find the rest of the organization doesn’t share their enthusiasm.

This resistance manifests in various ways, such as decreased productivity, higher rates of employee turnover and transfer requests, attitudes, unauthorized strikes, or work slowdowns. And in trying to overcome resistance to change, leaders often make structured, logical arguments for why the change is needed.

Arguments that fail to persuade.

What’s often overlooked is that employee resistance to change is most likely due to the emotions behind the change, not the change itself. And in examining those emotions, the late Carl Frost offered four key questions that people ask themselves when they’re being asked to change. The answers to these questions determine their excitement, or resistance, to change.

In this article, we will explore how to overcome resistance to change by addressing the emotions behind it and we’ll offer advice on how leaders can answer those four questions.

Question 1: Do we know where we’re going?

A clear and compelling vision of the future is necessary to overcome resistance to change. It is important to paint a clear picture of what the future of the organization looks like and include the individual being asked to make the change in that vision. When employees can see themselves as a part of the future, they are more likely to embrace the change. Additionally, it is crucial to ensure that the vision is shared at every level of the organization. This helps create a sense of unity and purpose, making it easier for employees to align themselves with the change.

By providing a clear direction and involving employees in the vision, leaders can address the uncertainty and fear that often accompany change. When employees have a clear understanding of where the organization is heading, they are less likely to resist and more likely to actively participate in the change process.

Question 2: Do we know why we’re going there?

Communicating the reasons for the change effectively is essential in overcoming resistance. Employees need to understand the changes in regulation, competition, or the economy that necessitate the change. It is important to avoid nostalgia for the old times before the change, as this can hinder progress. Instead, leaders should focus on selling people on why the change is necessary and beneficial.

By clearly explaining the rationale behind the change, leaders can address any doubts or concerns employees may have. When employees understand the need for change and how it will positively impact the organization, they are more likely to embrace it and actively contribute to its success.

Question 3: Do we know we can get there?

Confidence in the organization’s ability to achieve the vision is crucial for overcoming resistance to change. Leaders must build belief in the organization’s capacity to reach the new future. This can be done by addressing concerns about skills, resources, and capabilities. It is important to create a plan to acquire necessary skills and resources, ensuring that employees have the support and tools they need to succeed.

By addressing concerns and providing the necessary resources, leaders can instill confidence in employees and alleviate their fears about the change. When employees believe that the organization has the capability to achieve the vision, they are more likely to embrace the change and actively work towards its realization.

Question 4: Do we know that there is better than here?

Individuals need to believe that the change will benefit them personally in order to lessen their resistance. Leaders should paint a compelling picture of the change in their role and how it will be better. It is important to show how the change will result in personal growth and improvement. Additionally, leaders should address concerns about sacrifices, extra time, and learning new skills.

By addressing the personal benefits of the change and addressing personal concerns, leaders can help employees see the value in embracing the change. When employees understand how the change will positively impact their own lives, they are more likely to overcome resistance and actively engage in the change process.

Overcoming resistance to change is crucial for successful change initiatives. By addressing the emotions behind the change and answering the four questions, leaders can increase excitement, self-efficacy, and confidence in the change. That helps the organizational change itself find success and (hopefully) that success empowers every employee to do their best work ever.

Image credit: Pexels

Originally published on DavidBurkus.com on August 7, 2023

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Time to Make a Difference

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Time to Make a Difference

GUEST POST from Mike Shipulski

When it’s time to make meaningful change, there’s no time for consensus.

When the worn path of success must be violated, use a small team.

When it’s time for new thinking, create an unreasonable deadline, and get out of the way.

The best people don’t want the credit, they want to be stretched just short of their breaking point.

When company leadership wants you to build consensus before moving forward, they don’t think the problem is all that important or they don’t trust you.

When it’s time to make unrealistic progress, it’s time for fierce decision making.

When there’s no time for consensus, people’s feelings will be hurt. But there’s no time for that either.

When you’re pissed off because there’s been no progress for three years, do it yourself.

When it’s time to make a difference, permission is not required. Make a difference.

The best people must be given the responsibility to use their judgment.

When it’s time to break the rules, break them.

When the wheels fall off, regardless of the consequences, put them back on.

When you turn no into yes and catch hell for violating protocol, you’re working for the wrong company.

When everyone else has failed, it’s time to use your discretion and do as you see fit.

When you ask the team to make rain and they balk, you didn’t build the right team.

When it’s important and everyone’s afraid of getting it wrong, do it yourself and give them the credit.

The best people crave ridiculous challenges.

When the work must be different, create an environment that demands the team acts differently.

When it’s time for magic, keep the scope tight and the timeline tighter.

When the situation is dire and you use your discretion, to hell with anyone who has a problem with it.

When it’s time to pull a rabbit out of the hat, you get to decide what gets done and your special team member gets to decide how to go about it. Oh, and you also get to set an unreasonable time constraint.

When it’s important, to hell with efficiency. All that matters is effectiveness.

The best people want you to push them to the limit.

When you think you might get fired for making a difference, why the hell would you want to work for a company like that?

When it’s time to disrespect the successful business model, it’s time to create harsh conditions that leave the team no alternative.

The best people want to live where they want to live and do impossible work.

Image credit: Unsplash

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