We Must Reinvent Our Organizations for A New Era of Innovation

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We Must Reinvent Our Organizations for A New Era of Innovation

GUEST POST from Greg Satell

In the first half of the 20th century, Alfred Sloan created the modern corporation at General Motors. In many ways, it was based on the military. Senior leadership at headquarters would make plans, while managers at individual units would be allocated resources and made responsible for achieving mission objectives.

The rise of digital technology made this kind of structure untenable. By the time strategic information was gathered centrally, it was often too old to be effective. In much the same way, by the time information flowed up from operating units, it was too late to alter the plan. It had already failed.

So in recent years, agility and iteration has become the mantra. Due to pressures from the market and from shareholders, long-term planning is often eschewed for the needs of the moment. Yet today the digital era is ending and organizations will need to shift once again. We’re going to need to learn to combine long-range planning with empowered execution.

Shifting From Iteration To Exploration

When Steve Jobs came up with the idea for a device that would hold “a thousand songs in my pocket,” it wasn’t technically feasible. There was simply no hard drive available that could fit that much storage into that little space. Nevertheless, within a few years a supplier developed the necessary technology and the iPod was born.

Notice how the bulk of the profits went to Apple, which designed the application and very little to the supplier that developed the technology that made it possible. That’s because the technology for developing hard drives was very well understood. If it hadn’t been that supplier, another would have developed what Jobs needed in six months or so.

Yet today, we’re on the brink of a new era of innovation. New technologies, such as revolutionary computing architectures, genomics and artificial intelligence are coming to the fore that aren’t nearly as well understood as digital technology. So we will have to spend years learning about them before we can develop applications safely and effectively.

For example, companies ranging from Daimler and Samsung to JP Morgan Chase and Barclays have joined IBM’s Q Network to explore quantum computing, even though that it will be years before that technology has a commercial impact. Leading tech companies have formed the Partnership on AI to better understand the consequences for artificial intelligence. Hundreds of companies have joined manufacturing hubs to learn about next generation technology.

It’s becoming more important to prepare than adapt. By the time you realize the need to adapt, it may already be too late.

Building A Pipeline Of Problems To Be Solved

While the need to explore technologies long before they become commercially viable is increasing, competitive pressures show no signs of abating. Just because digital technology is not advancing the way it once did doesn’t mean that it will disappear. Many aspects of the digital world, such as the speed at which we communicate, will continue.

So it is crucial to build a continuous pipeline of problems to solve. Most will be fairly incremental, either improving on an existing product or developing new ones based on standard technology. Others will be a bit more aspirational, such as applying existing capabilities to a completely new market or adopting exciting new technology to improve service to existing customers.

However, as the value generated from digital technology continues to level off, much like it did for earlier technologies like internal combustion and electricity, there will be an increasing need to pursue grand challenges to solve fundamental problems. That’s how truly new markets are created.

Clearly, this presents some issues with resource allocation. Senior managers will have to combine the need to move fast and keep up with immediate competitive pressures with the long-term thinking it takes to invest in years of exploration with an uncertain payoff. There’s no magic bullet, but it is generally accepted that the 70/20/10 principle for incremental, adjacent and fundamental innovation is a good rule of thumb.

Empowering Connectivity

When Sloan designed the modern corporation, capacity was a key constraint. The core challenge was to design and build products for the mass market. So long-term planning to effectively organize plant, equipment, distribution and other resources was an important, if not decisive, competitive attribute.

Digitization and globalization, however, flipped this model and vertical integration gave way to radical specialization. Because resources were no longer concentrated in large enterprises, but distributed across global networks, integration within global supply chains became increasingly important.

With the rise of cloud technology, this trend became even more decisive in the digital world. Creating proprietary technology that is closed off to the rest of the world has become unacceptable to customers, who expect you to maintain API’s that integrate with open technologies and those of your competitors.

Over the next decade, it will become increasingly important to build similar connection points for innovation. For example, the US military set up the Rapid Equipping Force that was specifically designed to connect new technologies with soldiers in the field who needed them. Many companies are setting up incubators, accelerators and corporate venture funds for the same reason. Others have set up programs to connect to academic research.

What’s clear is that going it alone is no longer an option and we need to set up specific structures that not only connect to new technology, but ensure that it is understood and adopted throughout the enterprise.

The Leadership Challenge

The shift from one era to another doesn’t mean that old challenges are eliminated. Even today, we need to scale businesses to service mass markets and rapidly iterate new applications. The problems we need to take on in this new era of innovation won’t replace the old ones, they will simply add to them.

Still, we can expect value to shift from agility to exploration as fundamental technologies rise to the fore. Organizations that are able to deliver new computing architectures, revolutionary new materials and miracle cures will have a distinct competitive advantage over those who can merely engineer and design new applications.

It is only senior leaders that can empower these shifts and it won’t be easy. Shareholders will continue to demand quarterly profit performance. Customers will continue to demand product performance and service. Yet it is only those that are able to harness the technologies of this new era — which will not contribute to profits or customer satisfaction for years to come — that will survive the next decade.

The one true constant is that success eventually breeds failure. The skills and strategies of one era do not translate to another. To survive, the key organizational attribute will not be speed, agility or even operational excellence, but leadership that understands that when the game is up, you need to learn how to play a new one.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Pixabay

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Creating a Seamless and Unique Customer Experience

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Creating a Seamless and Unique Customer Experience

GUEST POST from Howard Tiersky

Most companies recognize that creating a seamless and unique customer experience is key to success in the digital world, but that’s not always easy to do. How can you deliver the optimal digital experience to your users?

If you’ve ever been to the arctic circle, there are icebergs that are not only acres wide, but that rise hundreds of feet above sea level — truly massive objects. Yet what is perhaps even more amazing is that scientists tell us that almost 90% of a typical iceberg’s mass is underwater, and not visible to from the surface. If you are in the “iceberg business” — studying them for science or cutting through them for ships to pass — it’s quite important to understand not just the visible component, but the full scale and depth of the iceberg.

Similarly, most companies now recognize that creating a seamless, elegant and differentiated customer experience is key to success in this increasingly digital world. Defining that optimal experience is not necessarily an easy task. In fact, it can seem like a huge undertaking, and at FROM, it’s something that we spend a large portion of our time working with clients to optimize.

But we also see many companies struggling to execute on delivering their customer experience vision. There are many reasons for this, but a starting point of success is realizing that excellent customer experience is more than meets the eye. While concrete manifestation of the experience is found in the brand’s digital properties, content, and features, this is just the part of the iceberg that sticks up above the water. Beneath the waterline is three additional supporting elements that must also be effectively managed in order to achieve an excellent customer experience and the associated business outcomes.

User Experience FROM Iceberg

1. Technical Architecture

Outstanding customer experiences are supported by modern technology stacks that permit two essential capabilities:

Access From Any Touchpoint

Great customer experiences have the flexibility of touchpoint, and permit you to not only interact via web, phone, mobile, kiosk or other devices but have all actions instantly updated and available in a consistent manner. An example of what not to do: I placed an order on HomeDepot.com and immediately realized I made a mistake. I wanted to cancel it, but due to technical constraints, you can’t cancel orders on the website, only from the call center. So I called the call center, and they told me they wouldn’t be able to “see” my order (and therefore weren’t able to cancel it) for about an hour when the systems synchronize, and I should call back then. Not a great or accessible customer experience.

Flexible Frameworks

Flexible frameworks have the ability to be modified rapidly along with the changes that are being frequently deployed. The number one secret to how great customer experiences got to be great? It’s not by having a genius team that gets it right the first time; it’s through an iterative process of testing and learning. To do that, you have to be able to efficiently code, test, and iterate or kill new ideas quickly. Furthermore, the frameworks for presentation, business logic, and transaction processing need to be flexible. If user testing shows that changing the sequence of information collected from users during a checkout process might improve conversion, you need to be able to make a change like that reasonably simply. We often see companies with aging mainframe-based “back office” systems that are holding them back from being able to re-engineer their customer experience because “that’s not how the legacy system works.” No matter how much pain, companies in this situation need roadmaps to upgrade, redesign or replace these inflexible systems to permit the creative evolution of their customer experience.

2. Business Operations

Serving the digital customer effectively is not just about creating digital touchpoints, but about evolving the total experience with digital at the center. That means you will need to change the way you do business in a variety of spheres. Customers who use online chat to ask questions expect answers far faster than those who email, let alone those who send in snail mail. Digital customers opening an account at your bank don’t want to have to wait to receive a thick packet of forms in the mail that they have to sign in 17 different places. You may want to offer digital customers alternatives in “out of stock” situations (such as a direct ship) or permit them to customize their purchases in ways that weren’t previously possible. Truly optimizing for digital will probably change how you merchandise, your return policies, your customer support, customer communications, and, well, everything. It may require new roles, new processes or a re-organization of the company.

3. Business Model

One of the benefits customers see from digital is a huge improvement in the value equation. Skype has taken our long distance bill from hundreds of dollars to pennies. Spotify has given us access to practically any song ever recorded for a few dollars a month, and Netflix has done the same for movies. In many markets, Uber has halved the cost of a taxi. This is awesome for consumers, but threatening to incumbents whose business models are dependent on the pricing levels of legacy business models. Jeff Zucker, the former CEO of NBC, echoed this concern a decade ago when he bemoaned having to trade “analog dollars for digital pennies.”

Why are some companies able to offer consumers a “better deal?” Because digital can take substantial cost out of the equation, allowing more digitally centric companies to be more cost-competitive or shift to totally different business models (subscription access to huge content libraries instead of one by one DVD rental in the case of Netflix; offering the largest ground transportation fleet in the world without ever buying a single vehicle in the case of Uber; likewise eBay and Alibaba, two of the largest online stores, both of which stock no inventory.) You can have a great website and app, but if the fundamental value equation of your business is no longer competitive, you are going to struggle.

Don’t Bolt On Digital

Digital started out as a means of communication. We then had the era of eCommerce, where we “bolted on” digital alternatives to access the same inventory and offers available in our non-digital channels. But today, the winners are “digitally-transformed” companies that are offering a digital value proposition and have a technology stack that empowers them to create a great customer experience, and the business processes necessary to support and deliver on it.

It may seem like a lot. And it is. The world is changing fast, and the companies that succeed in the future will be those that make the transition. The ones that don’t will wind up on the list with companies like Kodak, Polaroid, BlockBuster, Sports Authority, Borders, Linens and Things and Circuit City. You can use this as a high-level roadmap for what you need to do to keep up with the digital transformation era. If your formula is not working yet, ask yourself which of these three areas you might not be paying enough attention to, or adapting quickly enough.

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

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You Don’t Win By Completing the Most Tasks

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You Don't Win By Completing the Most Tasks

GUEST POST from Mike Shipulski

If you have too much to do, that means you have more tasks than time. And because time is limited, the only way out is to change how you think about your task list.

If you have too many tasks, you haven’t yet decided which tasks are important and which are less important. Until you rank tasks by importance, you’ll think you have too many.

When you have more tasks than you can handle, you don’t. You can handle what you can handle. No problem there. What you have are expectations that are out of line with the reality of what one person can get done in a day. What you can get done is what you can get done. Then end. The thing to understand about task lists is they don’t give a damn about work content. They are perfectly happy to get longer when new tasks are added, regardless of your capacity to get them done. That’s just how it goes with task lists. Why do you think it’s okay to judge yourself negatively for a growing task list?

Just because a task is on a task list doesn’t mean it must get done. A task list is just a tool to keep track of tasks, nothing more. A task list helps you assess which tasks are most important so you can work on the right one until it’s time to go home.

Here are some tips on how to handle your tasks.

Identify your top three most important tasks and work on the most important one until it’s complete.

When the most important task is complete, move each task one step closer to the top and work on the most important one until it’s complete.

If you’re not willing to finish a task, don’t start it. (Think switching cost.)

Don’t start a task before finishing one. (No partial for a half-done task.)

The fastest way to complete a task is to simply remove it from the list. (Full credit for deleting a task of low importance.)

Complete the tasks you can complete and leave the rest. (And no self-judgment or guilt.)

It’s not about completing the most tasks. It’s about completing the most important ones.

Image credit: Unsplash

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A $3.7 Trillion Customer Experience Problem

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A $3.7 Trillion Customer Experience Problem

GUEST POST from Shep Hyken

Bad customer experiences could cost organizations throughout the world $3.7 trillion annually. That’s according to new research by the experience management company Qualtrics. This figure is up 19% from the company’s projections last year ($3.1 trillion). This is a mind-blowing statistic considering the importance companies and brands are putting on customer service and experience.

During the third quarter of 2023, Qualtrics surveyed about 28,400 consumers in 26 countries about their bad experiences with organizations across 20 different industries. The good news is that the survey found consumers had 2% fewer bad experiences compared to the year before. Still, because of increased spending and other factors, the result is a potential loss that, to put it in perspective, is more than double the U.S. deficit in 2023.

Our just released 2024 customer service and CX research (sponsored by RingCentral) also has some important findings that support the need to provide a better experience. While the Qualtrics survey is international, we focused on the U.S. consumer, matching the census for age, gender, ethnicity and geography. So, what do these findings mean for a company or brand? They have two choices: accept the loss due to a bad experience or create a competitive advantage with a service experience that drives higher sales, higher profits and customer retention. Consider the following:

  • In 2024, 88% of customers think customer service is more important than ever. That’s up from 83% in 2022 and 2023. In 2010, major consulting firms (Walker, Forrester, Bain and others) started predicting that within 10 years, the customer experience would be as important—if not more so—than the product. Of course, the product has to work, but comparable products can usually be purchased from numerous retailers or vendors.

  • In 2024, 64% of customers said no matter how much they enjoy the product, if the company doesn’t provide good customer service, they will find another company to do business with. And that’s the point those major consulting firms were making more than 10 years ago! While product quality will always be important, the majority of today’s customers (more than six out of 10) insist on an experience that meets their expectations.

  • In 2024, 85% of customers are willing to go out of their way to do business with a company that has better service. That’s up from 76% last year. Customers are willing to put forth more effort, spend more time, drive farther and put up with other inconveniences if they know the company or brand will provide a better experience than a CX laggard that may be more convenient. So, the question is: Are you the company that customers go out of their way to do business with?

  • In 2024, 94% of customers feel convenience is important. Convenience is the highest rated experience customers want. But as you saw in the prior finding, convenience with bad customer service still puts you at a high risk of losing customers.

  • In 2024, the top three reasons customers come back to a company are helpful, knowledgeable and friendly employees. Customer service doesn’t have to be complicated. How hard is it for people to be helpful and friendly? And being knowledgeable is a function of training and education. These three together create a powerful experience that gets customers to come back and evangelize a company or brand.

These findings are meant to make you think about the advantages and disadvantages of delivering an excellent experience. I’ve always preached that customer service is common sense—that’s not always so common. Customer experience includes service, but there’s more to it as you look beyond the traditional human-to-human contact, and instead, analyze every interaction the customer has with your organization. To eliminate some of the complications and confusion, start with the end in mind, which is to understand your customers’ “journey” and what you must do to meet their needs and expectations. Build out the experience from there—an experience that doesn’t push them to the competition, but instead gets them to say, “I’ll be back.”

Image Credits: Pixabay
This article originally appeared on Forbes.com

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Four Secrets of Building a Shared Team Identity

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Four Secrets of Building a Shared Team Identity

GUEST POST from David Burkus

Creating shared identity on a team is crucial to building a high-performing one. Shared identity refers to the extent to which team members feel the same sense of who they are as a designated group. It indicates whether or not individual members truly feel like this is the team they’re a part of and most loyal to.

Decades of social science research have shown that individuals make sense of their world by applying categories and labels to their environment—including themselves and the people around them. “Team” is one such label, and it carries great importance, because when we identify with a particular group, that group shapes our own identity and behavior.

A strong shared identity on a team reduces conflict, standardizes norms of behavior, increases cohesion and collaboration, and ultimately enhances team performance. In this article, we will explore four key actions that leaders can take to foster a shared identity within their teams.

1. Start With Purpose

The first action in creating shared identity on a team is to start with purpose. Understanding the purpose of the team’s work and how it aligns with the organization’s mission is the first step in creating a shared identity. For most teams, this isn’t about restating or even remembering the larger organization’s mission statement. It’s about how their specific work relates to that overall mission. More importantly, it’s about who is positively affected by the team working well together.

One question to distill this “who” is simple, asking the team “Who is served by the work that we do?” By answering that, team members can gain a deeper understanding of the impact they have on the organization and the people they serve. And when team members recognize the significance of their contributions, they are more likely to feel motivated and engaged/ Identifying the specific group of people that benefit from the team’s performance allows team members to connect their work to real-world outcomes and identify with the team to realize those outcomes.

2. Build On Values

The second action in creating shared identity on a team is to build on values, meaning to determine the team’s specific values and how they want to treat each other. By identifying the values that the team wants to emphasize in their interactions, team members can establish a common set of principles to guide their behavior. Or as Seth Godin is fond of saying, it’s about emphasizing that “people like us, do things like this.”

The other benefit of discussing values is that it establishes the compromises that the team would never make in serving their purpose. By defining the non-negotiables, team members can align their actions and decisions with the team’s values. And as team members internalize those non-negotiables, they start to identify with the values underlying them and align their behavior accordingly. Not surprisingly, identifying more and more with those values helps them identify more strongly with the team that wrote them.

3. Focus On Goals

The third action in creating a sense of shared identity on a team is to focus on goals. By breaking down the team’s purpose and values into specific goals, team members can have a clear understanding of what they are working towards. These goals should be challenging yet achievable, providing team members with a sense of purpose and direction. Sometimes these goals, objectives, or key performance indicators are handed to the team from higher up in the organization. But even then, it’s important to have a team-wide discussion about the assignments and create milestones and sub-goals collectively to build a plan of action.

Setting the team’s goals for completion lays the groundwork for setting the individual goals team members will use to hold each other accountable. When team members have personal goals that contribute to the overall team goals, they are more likely to feel invested in the team’s success. And when those goals are achieved and celebrated, shared identity grows even more. By acknowledging and celebrating achievements, team members feel valued and recognized for their contributions. This fosters a sense of camaraderie and encourages continued collaboration and success.

4. Define Habits

The final action in creating a sense of shared identity is to define habits. Habits here means establishing norms and behaviors for communication and collaboration within the team. It’s about building group norms and expectations. Defining habits means agreeing to use certain communication tools and deciding how they will be utilized. By establishing guidelines for email, instant messaging, and other communication platforms, team members can ensure effective and efficient communication. This reduces misunderstandings and promotes collaboration.

Defining habits has a secondary benefit similar to building on values discussed above. As people share in the process of defining habits, they take greater ownership over the finished set of norms. And as their actions align more strongly with the group norms, their sense of identity with that team grows stronger as well. Overtime, they start to feel less like they act in a certain way because it was laid out in the group norms and more like they act a certain way because “that’s just what we do.” The “we” here being a short but strong signal of shared identity.

Creating shared identity on a team is crucial for achieving success. By starting with purpose, building on values, focusing on goals, and defining habits, leaders can foster a sense of belonging and connection among team members. This leads to a more focused, cohesive, and productive team. By implementing these four actions, leaders can create an environment where team members work together towards common goals and in pursuing those goals, do their best work ever.

Image credit: Unsplash

Originally published on DavidBurkus.com on July 24, 2023

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The Surprising Downside of Collaboration in Problem-Solving

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The Surprising Downside of Collaboration in Problem-Solving

GUEST POST from Robyn Bolton

You are a natural-born problem solver.  From the moment you were born, you’ve solved problems.  Hungry?  Start crying.  Learning to walk?  Stand up, take a step, fall over, repeat.  Want to grow your business?  Fall in love with a problem, then solve it more delightfully than anyone else.

Did you notice the slight shift in how you solve problems?

Initially, you solved problems on your own.  As communication became easier, you started working with others.  Now, you instinctively collaborate to solve complex problems, assembling teams to tackle challenges together.

But research indicates your instincts are wrong.  In fact, while collaboration can be beneficial for gathering information, it hinders the process of developing innovative solutions. This counterintuitive finding has significant implications for how teams approach problem-solving.

What a Terrorism Study Reveals About Your Team

In a 2015 study, researchers used a simulation developed by the U.S. Department of Defense to examine how collaboration impacts the problem-solving process. 417 undergrads were randomly assigned to 16-person teams with varying levels of “interconnectedness” (clarity in their team structure and information-sharing permissions) and asked to solve aspects of an imaginary terrorist attack scenario, such as identifying the perpetrators and target. Teams had 25 minutes to tackle the problem, with monetary incentives for solving it quickly.

Highly interconnected teams “gathered 5 percent more information than the least-clustered groups because clustering prevented network members from unknowingly conducting duplicative searches. ‘By being in a cluster, individuals tended to contribute more to the collective exploration through information space—not from more search but rather by being more coordinated in their search,’”

The Least Interconnected teams developed 17.5% more theories and solutions and were more likely to develop the correct solution because they were less likely to “copy an incorrect theory from a neighbor.”

How You Can Help Your Team Create More Successful Solutions

You and your team rarely face problems as dire as terrorist attacks, but you can use these results to adapt your problem-solving practices and improve results.

  1. Work together to gather and share information.  This goes beyond emailing around research reports, interview summaries, and meeting notes.  “Working together” requires your team to take action, like conducting interviews or writing surveys, with one another in real-time (not asynchronously through email, text, or “collaboration” platforms).
  2. Start solving the problem alone.  For example, at the start of every ideation session, I ask people to spend 5 minutes privately jotting down their ideas before group brainstorming.  This prevents copying others’ theories and ensures all voices are heard. (not just the loudest or most senior)
  3. Invite the “Unusual Suspects” into the process.  Most executives know that diversity amplifies creativity, so they invite a mix of genders, ages, races, ethnicities, tenures, and industry experiences to brainstorming sessions.  While that’s great, it also results in the same people being invited to every brainstorm and, ultimately, creating a highly interconnected group.  So, mix it up even more. Invite people never before invited to brainstorming into the process.  Instead of spending a day brainstorming, break it up into one-hour bursts at different times of the day. 

Are You Willing to Take the Risk?

For most of your working life, collaboration has been the default approach to problem-solving. However, this research suggests that rethinking when and how to leverage collaboration can lead to greater success.

Making such a change isn’t easy – it invites skepticism and judgment as it deviates from the proven “status quo” process.

Are you willing to take that risk, separating information gathering from solution development, for the potential of achieving better, more innovative outcomes? Or will you remain content with “good enough” solutions from conventional methods?

Image credit: Unsplash

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Department Of Energy Programs Helping to Create an American Manufacturing Future

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Department Of Energy Programs Helping to Create an American Manufacturing Future

GUEST POST from Greg Satell

In the recession that followed the dotcom crash in 2000, the United States lost five million manufacturing jobs and, while there has been an uptick in recent years, all indications are that they may never be coming back. Manufacturing, perhaps more than any other sector, relies on deep networks of skills and assets that tend to be highly regional.

The consequences of this loss are deep and pervasive. Losing a significant portion of our manufacturing base has led not only to economic vulnerability, but to political polarization. Clearly, it is important to rebuild our manufacturing base. But to do that, we need to focus on new, more advanced, technologies

That’s the mission of the Advanced Manufacturing Office (AMO) at the Department of Energy. By providing a crucial link between the cutting edge science done at the National Labs and private industry, it has been able to make considerable progress. As the collaboration between government scientists widen and deepens over time, US manufacturing may well be revived.

Linking Advanced Research To Private Industry

The origins of the Department of Energy date back to the Manhattan Project during World War II. The immense project was, in many respects, the start of “big science.” Hundreds of top researchers, used to working in small labs, traveled to newly established outposts to collaborate at places like Los Alamos, New Mexico and Oak Ridge, Tennessee.

After the war was over, the facilities continued their work and similar research centers were established to expand the effort. These National Labs became the backbone of the US government’s internal research efforts. In 1977, the National Labs, along with a number of other programs, were combined to form the Department of Energy.

One of the core missions of the AMO is to link the research done at the National Labs to private industry and the Lab Embedded Entrepreneurship Programs (LEEP) have been particularly successful in this regard. Currently, there are four such programs, Cyclotron Road, Chain Reaction Innovations, West Gate and Innovation Crossroads.

I was able to visit Innovation Crossroads at Oak Ridge National Laboratory and meet the entrepreneurs in its current cohort. Each is working to transform a breakthrough discovery into a market changing application, yet due to technical risk, would not be able to attract funding in the private sector. The LEEP program offers a small amount of seed money, access to lab facilities and scientific and entrepreneurial mentorship to help them get off the ground.

That’s just one of the ways that the AMO opens up the resources of the National Labs. It also helps business get access to supercomputing resources (5 out of the 10 fastest computers in the world are located in the United States, most of them at the National Labs) and conducts early stage research to benefit private industry.

Leading Public-Private Consortia

Another area in which the AMO supports private industry is through taking a leading role in consortia, such as the Manufacturing Institutes that were set up to to give American companies a leg up in advanced areas such as clean energy, composite materials and chemical process intensification.

The idea behind these consortia is to create hubs that provide a critical link with government labs, top scientists at academic universities and private companies looking to solve real-world problems. It both helps firms advance in key areas and allows researchers to focus their work on where they will have the greatest possible impact.

For example, the Critical Materials Institute (CMI) was set up to develop alternatives to materials that are subject to supply disruptions, such as the rare earth elements that are critical to many high tech products and are largely produced in China. A few years ago it developed, along with several National Labs and Eck Industries, an advanced alloy that can replace more costly materials in components of advanced vehicles and aircraft.

“We went from an idea on a whiteboard to a profitable product in less than two years and turned what was a waste product into a valuable asset,” Robert Ivester, Director of the Advanced Manufacturing Office told me.

Technology Assistance Partnerships

In 2011, the International Organization for Standardization released its ISO 50001 guidelines. Like previous guidelines that focused on quality management and environmental impact, ISO 50001 recommends best practices to reduce energy use. These can benefit businesses through lower costs and result in higher margins.

Still, for harried executives facing cutthroat competition and demanding customers, figuring out how to implement new standards can easily get lost in the mix. So a third key role that the AMO plays is to assist companies who wish to implement new standards by providing tools, guides and access to professional expertise.

The AMO offers similar support for a number of critical areas, such as prototype development and also provides energy assessment centers for firms that want to reduce costs. “Helping American companies adopt new technology and standards helps keep American manufacturers on the cutting edge,” Ivester says.

“Spinning In” Rather Than Spinning Out

Traditionally we think of the role of government in business largely in terms of regulation. Legislatures pass laws and watchdog agencies enforce them so that we can have confidence in the the food we eat, the products we buy and the medicines that are supposed to cure us. While that is clearly important, we often overlook how government can help drive innovation.

Inventions spun out of government labs include the Internet, GPS and laser scanners, just to name a few. Many of our most important drugs were also originally developed with government funding. Still, traditionally the work has mostly been done in isolation and only later offered to private companies through licensing agreements.

What makes the Advanced Manufacturing Office different than most scientific programs is that it is more focused on “spinning in” private industry rather than spinning out technologies. That enables executives and entrepreneurs with innovative ideas to power them with some of the best minds and advanced equipment in the world.

As Ivester put it to me, “Spinning out technologies is something that the Department of Energy has traditionally done. Increasingly, we want to spin ideas from industry into our labs, so that companies and entrepreneurs can benefit from the resources we have here. It also helps keep our scientists in touch with market needs and helps guide their research.”

Make no mistake, innovation needs collaboration. Combining the ideas from the private sector with the cutting edge science from government labs can help American manufacturing compete for the 21st century.

— Article courtesy of the Digital Tonto blog and previously appeared on Inc.com
— Image credits: Pixabay

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Learning to Innovate

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Learning to Innovate

GUEST POST from Janet Sernack

One of my coaching clients shared with me recently how she was feeling insecure in her job role and lacking motivation. The company she works for is acknowledged as an entrepreneurial industry leader. Because it is currently being challenged by poor sales performance, it has hunkered down and frozen any change initiatives, learning programs or new projects until mid-2025. My client is in a substantial Research and Development function, crucial to innovation, so we aimed to explore new ways of helping the company use their existing equipment (capital investments) and resources (people and expertise) to design and deliver low-cost and sustainable innovations to the market. To create a focused, meaningful, purposeful role and a values-based motivating opportunity for my client to be proactive, that impacts the company by adding value to the bottom line by improving productivity and cost efficiency because anyone can learn to innovate.

Learning to innovate

As a result of our short time together, my client felt confident and empowered, motivated and energized, to invest time in learning how to apply her current skills and strengths, focus and attention to connect with key people and resources, explore options globally for identifying new business development opportunities, and in developing her technical skillset.

My client enrolled in an online innovation learning program to learn to innovate by acquiring the fundamentals of mindset and behavior changes to shift their thinking and act differently.  

The innovation imperative has shifted

  • Productivity growth needs to accelerate

According to McKinsey and Co, in the article “Investing in Productivity Growth” it’s not only time to raise investment and catch the next productivity wave; the world needs to and can accelerate productivity growth.

“Productivity growth means getting more from our work and our investments. It is especially needed now as the world faces the many challenges of a new geo-economic era. Productivity growth is the best antidote to the asset price inflation of the past two decades, which has created about $160 trillion in “paper wealth” and even larger amounts of new debt”.

  • Adapting to the new net zero reality

The world is currently not on track to meet net-zero targets, yet many opportunities are available to accelerate efforts and help meet de-carbonization goals. Whilst some progress has been made to reduce global carbon emissions, under the current trajectory, the world won’t achieve net-zero emissions even during this century. Again, according to McKinsey and Co., in an article “Adapting to the new net-zero reality”, mitigation efforts alone are no longer sufficient – the world will need to adapt as well by going green, ramping up technologies and increasing investments.

  • Improving cost efficiencies

According to new BCG research, corporate leaders are making better cost management a priority as a hedge against ongoing economic, financial, and political uncertainties, stating that:

“Wholesale cuts are one way to manage costs. However, drastic measures such as sudden workforce reductions may lead to unintended consequences because they fail to address the root causes of inefficiencies. Nor do they position an organization for future success”.

  • Generative Ai is a critical enabler of innovation

Whether the organization focuses on developing new products, services, processes, or business models, Generative AI (GenAI) can enhance and challenge the work of leaders and teams across all phases of the innovation cycle and process.

By learning to innovate through knowing how to generatively question and listen, reveal and challenge operating beliefs and test assumptions to enable them to emerge, diverge, converge and prioritize high-quality creative ideas for change.

According to BCG in a recent article, “To Drive Innovation with GenAI, Start by Questioning Your Assumptions.”

“GenAI’s most prominent contribution is in idea generation and validation—innovation’s divergence and convergence phases. Yet, it can play an even more critical role in helping leaders confront and update the strategic assumptions at the foundation of their business and innovation strategies: the doubt phase of the cycle. Organizations that regularly question their beliefs are more resilient because they are more likely to see and position themselves to benefit from the shifts on which competitive advantage turns”.

The innovation imperative is paradoxical.

Suppose we combine the contradictory features or qualities of developing productivity growth while adapting to the new net zero reality and improving cost efficiencies. In that case, many organizations have reverted to their conventional, business-as-usual focus, relying on Generative Ai to solve their problems.

This demonstrates a typically faddish response to a revolutionary, transformative new invention whilst being avoidant and resisting the urgent need to change by building the fundamental foundations in learning to innovate.

  • Thinking and acting differently

Anyone can learn to innovate, and it starts with allowing, accepting and acknowledging that a business-as-usual focus, avoiding risk, making the tough decisions and resisting change are no longer effective, profitable, or sustainable because:

  • We all know that doing the same thing and expecting a different result is the definition of insanity.
  • We can no longer afford to keep producing the same results that no one wants.
  • We can’t solve the problem with the same thinking that created it; we have to learn how to be, think and act differently to deliver the sustainable and innovative solution we want to have.

Learning to innovate requires a radical strategic shift

  • Harnessing collective intelligence

Anyone can learn to innovate; it’s simply a matter of knowing, combining, leveraging and scaling people’s multiple and collective intelligence – heads/cognition, hearts/emotions and hands/actions.

  • Revealing and closing knowing-doing gaps

Then, we should align these to close the significant knowing-doing gap or disconnect between what people know and what people do.

Everyone knows that innovation is the most impactful lever to use to scale and leverage change, yet are primarily unwilling to pause, stop and take time to retreat from their short-term focus, pay attention and reflect on how to equip people with the innovation fundamentals by getting people’s:

  1. Heads to make sense of innovation and what innovation means by defining and framing it in their organization’s unique context, setting a strategic focus, determining the level of risk involved in achieving it, and mitigating the roadblocks that may arise.
  2. Hearts aligned to embody and enact what innovation means by setting and sharing a passionately purposeful reason for innovation, building change receptivity and readiness for designing and delivering a range of bespoke deep learning processes and equipping people to activate it.
  3. Hands dirty by creating a safe environment where people are encouraged to emerge and share creative ideas and permission and be allowed to experiment by making small bets and mistakes and learning by doing to know what not to do.

Innovation requires a strategic and systemic focus

Innovation is subjective and contextual, so it must be defined and framed in an organization’s unique context.  It requires a strategic and systemic focus, so an organization needs to agree on whether they will choose an incremental, sustainable or disruptive strategy and the level of risk.

The 21st century requires us to unlearn, learn, and relearn a different set of mindsets, behaviors, and skills, and anyone can learn to innovate.

Commitment and conviction to learn to innovate

It’s only through being committed and having the conviction that my coaching client now has – to explore new ways of helping their organizations use their existing capital investments, collective intelligence, people resources, and expertise, supported by Generative AI and deep learning processes, to design and deliver low-cost and sustainable innovations to the market.

Image Credit: Pexels

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Intuitive Skill, Center of Emphasis, and Mutual Trust

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Intuitive Skill, Center of Emphasis, and Mutual Trust

GUEST POST from Mike Shipulski

Mutual Trust. Who do you trust implicitly? And of that shortlist, who trusts you implicitly? You know how they’ll respond. You know what decision they’ll make. And you don’t have to keep tabs on them and you don’t have to manage them. You do your thing and they do theirs and, without coordinating, everything meshes.

When you have mutual trust, you can move at lightning speed. No second-guessing. No hesitation. No debates. Just rapid progress in a favorable direction. Your eyes are their eyes. Their ears are your ears. One person in two bodies.

If I could choose one thing to have, I’d choose mutual trust.

Mutual trust requires shared values. So, choose team members with values that you value. And mutual trust is developed slowly over time as you work together to solve the toughest problems with the fewest resources and the tightest timelines. Without shared values, you can’t have mutual trust. And without joint work on enigmatic problems, you can’t have mutual trust.

Mutual trust is a result. And when your trust-based relationships are more powerful than the formal reporting structure, you’ve arrived.

Intuitive Skill. In today’s world, decisions must be made quickly. And to make good decisions under unreasonable time constraints and far too little data requires implicit knowledge and intuitive skill. Have you read the literature? Have you studied the history? Have you drilled, and drilled, and drilled again? Did you get the best training? Have you honed your philosophy by doing the hard work? Have you done things badly, learned the hard lessons, and embossed those learnings on your soul? Have you done it so many times you know how it will go? Have you done it so many different ways your body knows how it should respond in unfamiliar situations?

If you have to think about it, you don’t yet have intuitive skill. If you can explain why you know what to do, you don’t have intuitive skill. Make no mistake. Intuitive skill does not come solely from experience. It comes from study, from research, from good teachers, and from soul searching.

When your body starts doing the right thing before your brain realizes you’re doing it, you have intuitive skill. And when you have intuitive skill, you can move at light speed. When it takes more time to explain your decision than it does to make it, you have intuitive skill.

Center of Mass, Center of Emphasis. Do you focus on one thing for a week at a time? And do you wake up dreaming about it? And do you find yourself telling people that we’ll think about something else when this thing is done? Do you like doing one thing in a row? Do you delay starting until you finish finishing? Do you give yourself (and others) the flexibility to get it done any way they see fit, as long as it gets done? If the answer is yes to all these, you may be skilled in center-of-emphasis thinking.

The trick here is to know what you want to get done, but have the discipline to be flexible on how it gets done.

Here’s a rule. If you’re the one who decides what to do, you shouldn’t be the one who decides the best way to do it.

Yes, be singularly focused on the objective, but let the boots-on-the-ground circumstances and the context of the moment define the approach. And let the people closest to the problem figure out the best way to solve it because the context is always changing, the territory is always changing, and the local weather is always changing. And the right approach is defined by the specific conditions of the moment.

Build trust and earn it. And repeat. Practice, study, do, and learn. Hone and refine. And repeat. And choose the most important center of emphasis and let the people closest to the problem choose how to solve it. And then build trust and earn it.

This post was inspired by Taylor Pearson and John Boyd, the creator of the OODA loop.

Image credit: Unsplash

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Balancing Artificial Intelligence with the Human Touch

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GUEST POST from Shep Hyken

As AI and ChatGPT-type technologies grow in capability and ease of use and become more cost-effective, more and more companies are making their way to the digital experience. Still, the best companies know better than to switch to 100% digital.

I had a chance to interview Nicole Kyle, managing director and co-founder of CMP Research (Customer Management Practice), for Amazing Business Radio. Kyle’s team provides research and advisory services for the contact center industry and conducts some of the most critical research on the topic of self-service and digital customer service. I first met Kyle at CCW, the largest contact center conference in the industry. I’ve summarized seven of her key observations below, followed by my commentary:

  1. The Amazon Effect has trained customers to expect a level of service that’s not always in line with what companies and brands can provide. This is exactly what’s happening with customer expectations. They no longer compare you just to your direct competitors but to the best experience they’ve had from any company. Amazon and other rockstar brands focused on CX (customer experience) have set the bar higher for all companies in all industries.

  2. People’s acceptance and eventual normalization of digital experiences accelerated during the pandemic, and they have become a way of life for many customers. The pandemic forced customers to accept self-service. For example, many customers never went online to buy groceries, vehicles or other items that were traditionally shopped for in person. Once customers got used to it, as the pandemic became history, many never returned to the “old way” of doing business. At a minimum, many customers expect a choice between the two.

  3. Customers have new priorities and are placing a premium on their time. Seventy-two percent of customers say they want to spend less time interacting with customer service. They want to be self-sufficient in managing typical customer service issues. In other words, they want self-service options that will get them answers to their questions efficiently and in a timely manner. Our CX research differs and is less than half of that 72% number. When I asked Kyle about the discrepancy, she responded, “Customers who have a poor self-service experience are less likely to return to self-service. While there is an increase in preference, you’re not seeing the adoption because some companies aren’t offering the type of self-service experience the customer wants.”

  4. The digital dexterity of society is improving! That phrase is a great way to describe self-service adoption, specifically how customers view chatbots or other ChatGPT-type technologies. Kyle explained, “Digital experiences became normalized during the pandemic, and digital tools, such as generative AI, are now starting to help people in their daily lives, making them more digitally capable.” That translates into customers’ higher acceptance and desire for digital support and CX.

  5. Many customers can tell the difference between talking to an AI chatbot and a live chat with a human agent due to their ability to access technology and the quality of the chatbot. However, customers are still willing to use the tools if the results are good. When it comes to AI interacting with customers via text or voice, don’t get hung up on how lifelike (or not) the experience is as long as it gets your customers what they want quickly and efficiently.

  6. The No. 1 driver of satisfaction (according to 78% of customers surveyed) in a self-service experience is personalization. Personalization is more important than ever in customer service and CX. So, how do you personalize digital support? The “machine” must not only be capable of delivering the correct answers and solutions, but it must also recognize the existing customer, remember issues the customer had in the past, make suggestions that are specific to the customer and provide other customized, personalized approaches to the experience.

  7. With increased investments in self-service and generative AI, 60% of executives say they will reduce the number of frontline customer-facing jobs. But, the good news is that jobs will be created for employees to monitor performance, track data and more. I’m holding firm in my predictions over the past two years that while there may be some job disruption, the frontline customer support agent job will not be eliminated. To Kyle’s point, there will be job opportunities related to the contact center, even if they are not on the front line.

Self-service and automation are a balancing act. The companies that have gone “all in” and eliminated human-to-human customer support have had pushback from customers. Companies that have not adopted newer technologies are frustrating many customers who want and expect self-service solutions. While it may differ from one company to the next, the balance is critical, but smart leaders will find the balance and continue to adapt to the ever-changing expectations of their customers.

Image Credits: Unsplash
This article originally appeared on Forbes.com

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