4 Simple Steps to Becoming Your Own Futurist

An Introduction to the FutureHacking™ methodology

FutureHacking Foresight and Futurist Primer

by Braden Kelley

The starting point for becoming your own futurist is of course to first understand what futurology (or a futurist) is. Then we must also understand what strategic and market foresight are as well.

What is Futurology (or a Futurist)?

Futures studies, futures research, futurism or futurology is the systematic, interdisciplinary and holistic study of social and technological advancement, and other environmental trends, often for the purpose of exploring how people will live and work in the future. Predictive techniques, such as forecasting, can be applied, but contemporary futures studies scholars emphasize the importance of systematically exploring alternatives.

Source: Wikipedia

What are Strategic and Market Foresight?

Strategic Foresight is about combining methods of futures work with those of strategic management. It is about understanding upcoming external changes in relation to internal capabilities and drivers.
Market Foresight is about the consideration of possible and probable futures in the organization’s relevant business environment, and about identifying new opportunities in that space.

Source: Aalto University

Now we are ready to look at the four simple, but powerful steps to becoming your own futurist using the FutureHacking™ methodology:

STEP ONE: Picking the Signals That Matter

FutureSignals™ Radar & NowBuilder™ Canvas

Identify up to the eight most critical signals to monitor or amplify in order to look back, reach an innovation goal, describe them and capture for each signal what the status quo, small change and big change scenarios might look like – and which scenario is most likely.

STEP TWO: Mapping Signal Evolution

FutureSignals™ Radar Summary & Tracking

Summarize the most likely scenarios for up to the eight most critical signals along with their descriptions and whether you plan to monitor or amplify each. Use a tracking sheet to record changes in the signal over time – revisit and re-prioritize as needed.

STEP THREE: Choosing the Possible, Probable and Preferable Future

FutureCanvas™ & Picker (macro view)

Leveraging your FutureSignals™ summary, create a headline for an imagined future. Then capture the problems that have been solved, how society has changed, the new problems that may now exist and what we must do to shape the future. Rinse and Repeat.

STEP FOUR: Making Your Preferable Future a Reality

FutureSignals™ & FutureCanvas™ Action Plans (micro)

Leveraging your FutureSignals™ summary, create a headline for an imagined future. Then capture the key signals related to this headline, how the customer is changing and how the company must change in response.

These four simple steps to becoming your own futurist are accelerated by adopting the 20 new tools of the Futurehacking™ methodology that I have created.

“FutureHacking™ is the art and science of getting to the future first.”

It’s a methodology I’ve created that contains a suite of simple, but powerful tools at its core that will enable you to be your own futurist.

FutureHacking™ is designed to make foresight and futurology accessible to the average business professional.

Prototyping the Future

FutureHacking™ is a revolutionary approach that empowers cross-functional leadership teams to visually prototype the future and collaboratively create the roadmap and guideposts for manifesting your preferred, possible future.

FutureHacking Tool Collection

Why is Investing in Futures Research (or a Futurist) important?

Every stakeholder-responsible organization is compelled to realize its vision, execute its strategy, and achieve its goals – indefinitely. But, the future is uncertain. We cannot extrapolate that what has made an organization successful this year or last year will make it succeed in future years. Responsible organizations must invest in understanding the possible futures and realizing their preferable future. FutureHacking™ makes this investment much easier, cheaper and faster – helping you get to the future first.

“FutureHacking™ tools help you facilitate the future.”

Click the image to download a PDF flipbook:

Two Ways to Join the FutureHacking™ Ecosystem

Data and trend research partners to create service offerings as an input into the FutureSignals™ component
Futurists, consulting partners, and technology providers (interactive whiteboarding, etc.) to get FutureHacking™ certified and profit from the delivery of services to help people leverage the FutureSignals™, NowBuilder™ and FutureCanvas™ tools

One Way to Connect and Succeed

Contact me if you think you have a compelling partnership value proposition and subscribe to my newsletter below to find out when the certification program and facilitated off-site offerings are launched!

Image credit: Pixabay

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3 Steps to Building a Psychologically Safe Environment

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or The No-Cost, No-Hug Secret to Smarter Teams

3 Steps to Building a Psychologically Safe Environment

GUEST POST from Robyn Bolton

Welcome to the exciting conclusion of “Everything You Ever Wanted to Know About Psychological Safety but Were Afraid to Ask.”

Our generous expert, Alla Weinberg, CEO and Culture designer at Spoke & Wheel, has been patiently leading us beyond and through the buzzy frothiness that we (I) usually associate with Psychological Safety and into the deeply powerful and absolutely essential core elements.

In Part 1, we learned that psychological safety is more neuroscience than psychology (and required to be your smartest self).

In Part 2, we learned the first step to creating safety (and why corporate mandates are antithetical to the goal).

Today, we’re going where we need but don’t want to go – how to create a psychologically safe environment so everyone can thrive.

If Step 1 in creating Psychological Safety is verbalizing your emotions and understanding others’ emotions, I’m hoping Step 2 is easier.

Step two is relational intelligence.

There are three intelligences: emotional, relational, and systems

Relational intelligence is about understanding how to connect with different people, being aware when disconnection happens, and then acknowledging and repairing it. That last part is the most important because, without repair, there’s no safety.

Are you saying that saying, “I’m sorry” is essential to building psychological safety? Because I would much rather ignore the issues and move on. Or, better yet, pretend it never happened.

Nice try. But you know as well as I do that people are messy, and when we come together, there’s tension and conflict, and someone will get hurt or make mistakes. It’s normal. It’s okay as long as you know how to recover, repair, and heal.

The issue isn’t the conflict but how we handle it and whether we can repair it. I have a diagram of a relationship, which is a circle of connection, disconnection, and repair. We go around this circle just like breathing is inhaling and exhaling. Relating, connecting, disconnecting, and repairing is what a relationship is.

OK, step 2 is relational intelligence which requires repairing relationships, so how do I do that? Bonus points if I don’t have to admit to being wrong.

Not only do you have to admit that, but you also need to take responsibility for your impact, not just your intentions. Intentions are great, but without action, they don’t mean much.

When apologizing, we tend to try to explain ourselves. For example, we say, “I didn’t say anything in that meeting, and I’m sorry, but that wasn’t my intention, and I wanted to, but I had my own issue.” Instead, we should say, “I didn’t say anything in that meeting, and I’m sorry.”

When you apologize, don’t say “but.” To repair a relationship, you must take responsibility for your actions and their impact. Saying “but” negates all of that.

(head now on the desk because this is a lot to take in): I’m afraid to ask what Step 3 is, but I will practice verbalizing my feelings and ask anyway. What’s Step 3?

You’re doing great. This is a lot, and it’s ok that you feel overwhelmed.

Step 3 is systems intelligence, which focuses on the relationships within an organization that gives rise to its culture. Systems thinking is about understanding how structures, policies, processes, and relationships interact to create a greater whole,

Systems thinking! We’re getting back to left-brained stuff now. I’m feeling better.

Yes, and since connection is core to psychological safety, systems thinking tells us that we must fundamentally rethink how people work together by centering connection.

How do we do that?

We must reinvent, innovate, and rethink how we work together.

Lack of safety leads to power struggles, walls, and departmental rivalries, creating divisions and “othering.”

Hierarchy doesn’t align with connection, but shared leadership does. Hierarchy erodes trust because you need manager approvals, beg for budgets, or are told to prove your worth to get a seat at the table.

Silos are another problem because they lead to turf wars and people making decisions to protect themselves or their team rather than do what’s best for the greater good.

Look, I love challenging the status quo, but you’re suggesting that we burn it all to the ground and start over.

(Laughing) I don’t lead with that. When I work with organizations, I start with meetings.

Most meetings focus on work topics like status, decisions, and updates. But where are the meetings where we discuss emotions, share personal stories, and express hurt feelings? Everything shifts when we center connection.

Isn’t that called therapy?

Organizations value information, right? Emotions are information.

Emotions reside in our bodies, but in many organizations, the focus is on the intellect. It’s as if the head is the only important part, and the body is merely a vessel to transport the head from meeting to meeting.

And that brings us full circle to why psychological safety is mostly neuroscience. Our body houses our nervous system, where we feel safety or the lack thereof. So, when people talk about bringing their whole selves to work, I mean our entire body, not just the intellect. Our bodies contain wisdom and information that we often overlook and undervalue, yet this is where the crucial information resides to create psychological safety.

We don’t think of emotions as information. We think of them as signs of weakness, and you can’t be weak and successful.

It’s a lot of fear because how we’ve worked for the last 50 years gave us an illusion of certainty. Acknowledging that there is no certainty and that we’re in entirely uncharted territory is scary, and there’s a fear that everything will fall apart. We think the business won’t survive if we do it the other way.

I respect that fear. It’s okay to be afraid. But if we acknowledge that all of this comes from fear, we will be open to new ideas or thoughts. For organizations that want to innovate, they must change how they work. You can’t keep doing the same thing and expect different results. You need to innovate your approach to work.

Thank you so much for all of this. You’ve shared so much. Some of it was hard to hear, but I think that’s also a sign that it’s important to hear. Any last words of advice?

Give yourself and others permission to be human beings again. Not robots or cogs, not human resources, but to be human beings. That includes our bodies, our emotions, our messiness, and our relationships with each other.

If you would like to learn more about Alla and her work, please visit her firm’s website, www.spokeandwheel.co, and definitely download a FREE digital copy of her book, A Culture of Safety: Building a Work Environment Where People Can Think, Collaborate, and Innovate

Image Credit: Pexels

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The Event That Made Einstein an Icon

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The Event That Made Einstein an Icon

GUEST POST from Greg Satell

On April 3rd, 1921, a handful of journalists went to interview a relatively unknown scientist named Albert Einstein. When they arrived to meet his ship they found a crowd of thousands waiting for him, screaming with adulation. Surprised at his popularity, and charmed by his genial personality, the story of Einstein’s arrival made the front page in major newspapers.

It was all a bit of a mistake. The people in the crowd weren’t there to see Einstein, but Chaim Weizmann, the popular Zionist leader that Einstein was traveling with. Nevertheless, that’s how Einstein gained his iconic status. In a way, Einstein didn’t get famous because of relativity, relativity got famous because of Einstein.

This, of course, in no way lessens Einstein’s accomplishments, which were considerable. Yet as Albert-László Barabási, another highly accomplished scientist, explains in The Formula, there is a big difference between success and accomplishment. The truth is that success isn’t what you think it is but, with talent, persistence and some luck, anyone can achieve it.

There Is Virtually No Limit To Success, But There Is To Accomplishment

Einstein was, without a doubt, one of the great scientific minds in history. Yet the first half of the 20th century was a golden age for physics, with many great minds. Niels Bohr, Einstein’s sparring partner at the famous Bohr–Einstein debates (which Bohr is widely considered to have won) was at least as prominent. Yet Einstein towers over all of them.

It’s not just physicists, either. Why is it that Einstein has become a household name and not, say, Watson and Crick, who discovered the structure of DNA, an accomplishment at least as important as relativity? Even less known is Paul Erdős, the most prolific mathematician since Euler in the 18th century, who had an outrageous personality to boot?

For that matter, consider Richard Feynman, who is probably the second most famous physicist of the 20th century. He was, by all accounts, a man of great accomplishment and charisma. However, his fame is probably more due to his performance on TV following the Space Shuttle Challenger disaster than for his theory of quantum electrodynamics.

There are many great golfers, but only one Tiger Woods, just as there are many great basketball players, but only one Lebron James. The truth is that individual human accomplishment is bounded, but success isn’t. Tiger Woods can’t possibly hit every shot perfectly any more than Lebron James can score every point. But chances are, both will outshine all others in the public consciousness, which will drive their fame and fortune.

What’s probably most interesting about Einstein’s fame is that it grew substantially even as he ceased to be a productive scientist, long after he had become, as Robert Oppenheimer put it, “a landmark, not a beacon.”

Success Relies On Networks

Let’s try and deconstruct what happened after Einstein’s arrival in the United States. The day after thousands came to greet Weizmann and the reporters mistakenly assumed that they were there for Einstein, he appeared on the front pages of major newspapers like The New York Times and the Washington Post. For many readers, it may have been the first time they had heard of any physicist.

As I noted above, this period was something of a heyday for physics, with the basic principles of quantum mechanics first becoming established, so it was a topic that was increasingly discussed. Few could understand the details, but many remembered the genius with the crazy white hair they saw in the newspaper. When the subject of physics came up, people would discuss Einstein, which spread his name further.

Barabási himself established this principle of preferential attachment in networks, also known as the “rich get richer” phenomenon or the Matthew effect. When a particular node gains more connections than its rivals, it tends to gain future connections at a faster rate. Even a slight change in early performance leads to a major advantage going forward.

In his book, Barabási details how this principle applies to things as diverse as petitions on Change.org, projects on Kickstarter and books on Amazon. It also applies to websites on the Internet, computers in a network and proteins in our bodies. Look at any connected system and you’ll see preferential attachment at work.

Small Groups, Loosely Connected

The civil rights movement will always be associated with Martin Luther King Jr., but he was far from a solitary figure. In fact, he was just one of the Big Six of civil rights. Yet few today speak of the others. The only one besides King still relatively famous today is John Lewis and that’s largely because of his present role as a US congressman.

Each of these men were not solitary figures either, but leaders of their own organizations, such as the NAACP, The National Urban League and CORE and these, in turn, had hundreds of local chapters. It was King’s connection to all of these that made him the historic icon we know today, because it was all of those small groups, loosely connected, that made up the movement.

In my book, Cascades, I explain how many movements fail to bring change about by trying to emulate events like the March on Washington without first building small groups, loosely connected, but united by a shared purpose. It is those, far more than any charismatic personality or inspirational speech, that makes a movement powerful.

It also helps explain something about Einstein’s iconic status. He was on the ship with Weizman not as a physicist, but as a Zionist activist and that dual status connected him to two separate networks of loosely connected small groups, which enhanced his prestige. So it is quite possible, if not probable, that we equate Einstein with genius today and not, say, Bohr, because of his political activity as much as for his scientific talent.

Randomness Rewards Persistence

None of this should be taken to mean that Einstein could have become a legendary icon if he hadn’t made truly landmark discoveries. It was the combination of his prominence in the scientific community with the happy accident of Weizmann’s adoring crowds being mistaken for his own, that made him a historic figure.

Still, we can imagine an alternate universe in which Einstein becomes just as famous. He was, for example, enormously quotable and very politically active. (He was, at one time, offered the presidency in Israel). So it is completely possible that some other event, combined with his very real accomplishments, would have catapulted him to fame. There is always an element of luck and randomness in every success.

Yet Einstein’s story tells us some very important things about what makes a great success. It is not, as many tell us, simply a matter of working hard to achieve something because human performance is, as noted above, bounded. You can be better than others, but not that much better. At the same time, it takes more than just luck. It is a combination of both and we can do much to increase our chances of benefiting from them.

Einstein was incredibly persistent, working for ten years on special relativity and another ten for general relativity. He was also a great connector, always working to collaborate with other scientists as well as political figures like Weizmann and even little girls needing help with their math homework. That’s what allowed him to benefit from loosely connected small groups.

Perhaps most importantly, these principles of persistence and connection are ones that any of us can apply. We might not all be Einsteins, but with a little luck, we just might make it someday.

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

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Resistance to Innovation – What if electric cars came first?

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Resistance to Innovation - What if electric cars came first?

GUEST POST from Dennis Stauffer

In his acclaimed book the The Diffusion of Innovations—the most-cited work in all the social sciences—Everett Rogers explained how innovations frequently meet resistance. Resistance that isn’t always rational. How all-too-often we’re willing to accept the status quo despite its flaws and reject new options despite their benefits.

We’re seeing exactly this phenomenon with electric vehicles. Demand from what Rogers identified as the early adopters—wealthy buyers who can pay a premium for the newest technology—has largely been met. The challenge now is to reach a broader market of buyers with more practical concerns about cost, range, reliability, and safety. News articles and commentary are popping up noting those concerns and expressing doubts about just how useful electric cars really are. The lack of charging stations, the environmental impact of mining lithium, the danger of battery fires, and potential strains to the electrical grid. There are some legitimate concerns, but how much of that skepticism is grounded in the reality of electrification and how much is good old-fashioned resistance to change?

To answer that question, let’s turn the tables. What if electric cars came first, and we’re trying to introduce internal combustion engines? Here are some predictable—and quite similar—objections.

How can we possibly build all the gas stations we’re going to need, and should we? (If electrification is the entrenched technology, we’d have plenty of charging stations everywhere.)
Do you really want trucks carrying 10,000 gallons of highly explosive gasoline driving down the highway next to you? Accidents happen! Do you want 20 gallons of it parked in your garage, waiting for just one spark to set it off—taking your house with it?
You can charge your electric car at home while you sleep, or at a charging station while at work. You can’t do that with a gasoline engine. You must go somewhere to buy gas, take time to get there, and then stand next to a hose pumping one of the most flammable liquids we know of.
We’re going to need a lot of that gasoline. Where will we find it, and at what environmental cost? Are we going to start drilling everywhere? Even in the ocean, the arctic, and in fragile ecosystems? Are we going to have massive tankers crisscrossing the oceans? What if there’s a leak or a spill?
How are we going to build all the refining capacity we’ll need to process and transport all that gas? That’s a massive investment. Who’s going to pay for it?
What if we need to get that gas from countries that don’t like us? Will they refuse to sell to us or charge exorbitant prices? Will we make our enemies rich?
Gasoline is more expensive per mile driven than electricity, and because it’s a commodity, its price fluctuates—sometimes a lot. You never know what you may have to pay.
Gasoline engines are a lot more expensive than electric motors. They’re much more complex and since we’re building them in smaller numbers at first, carmakers don’t have the same economies of scale.
Internal combustion engines are more complex to repair. How often will your car need to be fixed? Will your mechanic know how?
What about air pollution? Just one internal combustion car emits 4.6 metric tons of carbon dioxide each year. Multiply that by all the cars on the road!
Would you like a car that’s slower? The most powerful—and most expensive—internal combustion cars on the road have less torque than a typical electric vehicle. That means less acceleration when you need to pass someone.

Some of these concerns are a bit overblown — just like some of the concerns about electric cars. But others are entirely valid. Yet too often we shrug them off because we’ve already accepted those costs, inconveniences, and dangers.

What we’re seeing with electric cars is the same progression we saw with early automobiles, airplanes, hybrid crops, personal computers, and many other now widely popular innovations. We’ll get there, but not without some pushback.

Image Credit: Pixabay

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Top 10 Human-Centered Change & Innovation Articles of January 2024

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Top 10 Human-Centered Change & Innovation Articles of January 2024 Drum roll please…

At the beginning of each month, we will profile the ten articles from the previous month that generated the most traffic to Human-Centered Change & Innovation. Did your favorite make the cut?

But enough delay, here are January’s ten most popular innovation posts:

Top 40 Innovation Bloggers of 2023 — Curated by Braden Kelley
Creating Organizational Agility — by Howard Tiersky
5 Simple Steps to Team Alignment — by David Burkus
5 Essential Customer Experience Tools to Master — by Braden Kelley
Four Ways To Empower Change In Your Organization — by Greg Satell
AI as an Innovation Tool – How to Work with a Deeply Flawed Genius! — by Pete Foley
Top 100 Innovation and Transformation Articles of 2023 — Curated by Braden Kelley
80% of Psychological Safety Has Nothing to Do With Psychology — by Robyn Bolton
How will you allocate your time differently in 2024? — by Mike Shipulski
Leadership Development Fundamentals – Work Products — by Mike Shipulski

BONUS – Here are five more strong articles published in December that continue to resonate with people:

Reinventing Wheels — by Dennis Stauffer
Continuous Improvement vs. Incremental Innovation – Are They the Same? — by Robyn Bolton
Customer Success is Everyone’s Job — by Geoffrey A. Moore
Just Start Already — by Mike Shipulski
Price is Relevant Only in the Absence of Value — by Shep Hyken

If you’re not familiar with Human-Centered Change & Innovation, we publish 4-7 new articles every week built around innovation and transformation insights from our roster of contributing authors and ad hoc submissions from community members. Get the articles right in your Facebook, Twitter or Linkedin feeds too!

Have something to contribute?

Human-Centered Change & Innovation is open to contributions from any and all innovation and transformation professionals out there (practitioners, professors, researchers, consultants, authors, etc.) who have valuable human-centered change and innovation insights to share with everyone for the greater good. If you’d like to contribute, please contact me.

P.S. Here are our Top 40 Innovation Bloggers lists from the last four years:

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Are You Engaging in Innovation Theater?

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Are You Engaging in Innovation Theater?

GUEST POST from Mike Shipulski

When you go to the cinema or the playhouse you go you see a show. The show may be funny, it may be sad, it may be thought-provoking, it may be beautiful, and it may take your mind off your problems for a couple of hours; but it’s not real. Sure, the story-line is good, but it came from someone’s imagination. And because it’s a story, it doesn’t have to bound by reality. Sure, the choreography is catchy, but it’s designed for effect. Yes, the cinematography paints a good picture, but it’s contrived. And, yes, the actors are good, but they’re actors. What you see isn’t real. What you see is theater.

If you are asked to focus on the innovation process, that’s theater. Innovation doesn’t care about process; it cares about delivering novel customer value. The process isn’t most important, the output is. When there’s an extreme focus on the process that usually means an extreme focus on the output of the process would be embarrassing.

If you are tasked to calculate the net present value of the project hopper, that’s theater. With innovation, there’s no partial credit for projects you’re not working on. None. The value of the projects in the hopper is zero. The song about the value of the project hopper is nothing more than a catchy melody performed to make sure the audience doesn’t ask about the feeble collection of projects you are working on. And, assigning a value to the stagnant project hopper is a creative story-line crafted to hide the fact you have too many projects you’re not working on.

If you are asked to create high-level metrics and fancy pie charts, that’s innovation theater. Process metrics and pie charts don’t pay the bills. Here’s innovation’s script for paying the bills: complete amazing projects, launch amazing products, and sell a boatload. Full stop. If your innovation script is different than that, ball it up and throw it away along with its producer.

If the lame projects aren’t stopped so better ones can start, if people aren’t moved off stale projects onto amazing ones, if the same old teams are charged with the innovation mandate, if new leaders aren’t added, if the teams are measured just like last year, that’s innovation theater. How many mundane projects have you stopped? How many amazing projects have you started? How many new leaders have you added? How many new teams have you formed? How will you measure your teams differently? How do you feel about all that?

If a return on investment (ROI) calculation is the gating criterion before starting an amazing project, that’s innovation theater. Projects that could create a new product family with a fundamentally different value proposition for a whole new customer segment cannot be assigned an ROI because no one has experience in this new domain. Any ROI will be a guess and that’s why innovation is governed by judgment and not ROI. Innovation is unpredictable which makes an ROI is impossible to predict. And if your innovation process squeezes judgment out of the story-line, that’s a tell-tale sign of innovation theater.

If the specifications are fixed, the resources are fixed, and the completion date is fixed, that’s innovation theater. Since it can be innovation only when there’s novelty, and since novelty comes with uncertainty, without flexibility in specs, resources, or time, it’s innovation theater.

If the work doesn’t require trust, it’s innovation theater. If trust is not required it’s because the work has been done before, and if that’s the case, it’s not innovation.

If you know it will work, it’s innovation theater. Innovation and certainty cannot coexist.

If a steering team is involved, it’s innovation theater. Consensus cannot spawn innovation.

If more than one person in charge, it’s innovation theater. With innovation, there’s no place for compromise.

And what to do when you realize you’re playing a part in your company’s innovation theater? Well, I’ll save that for another time.

Image credit: Pexels

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Master the Customer Hierarchy of Needs

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Embrace Customer Expectations

Master the Customer Hierarchy of Needs

GUEST POST from Shep Hyken

Abraham Maslow was an American psychologist who created a model for understanding human behavior. Specifically, he was interested in what motivated people, and he devised five levels in the shape of a pyramid representing each of those needs. For those who need a refresher in psychology, those levels, starting with the basic needs at the bottom and working their way toward the top, are physiological needs (such as food, water and sleep), safety, love and belonging, self-esteem and self-actualization.

I’ve been thinking about a similar model for customers. I’m not a psychologist, and I’ve not done formal research on this idea, but I’ve been studying customer and employee experience in some form for more than 40 years. I’ve identified five areas (at least) that are important to customers when they buy from you and put them into logical order. So, here is ‘The Customer Hierarchy Of Needs’:

Customer Hierarchy of Needs

1. Products that Work – We’re starting at the bottom of the pyramid and working our way up. This is the base, and it’s simple: whatever you sell must do what you promise it will do. It doesn’t matter how great your customer service and experience (CX) are, if the product or service doesn’t work, customers will find an alternative.

2. Alignment in Beliefs – Your mission and vision statements are your beliefs. Your customers shouldn’t have to read those statements to know what they are. They should experience them when they do business with you. They will quickly learn how you treat them. If they like the experience, they align with you and what you stand for. While that can be enough, they may also enjoy doing business with you because of something that may or may not be in your mission and vision statements. That is a cause, charity or community activity your company or brand is involved with or contributes to. It adds to the emotional connection you’re trying to achieve with your customers.

3. Trust and Safety – If the company or brand has a bad reputation, getting and keeping customers will be tough. Even customers willing to take a chance may eventually experience what others have warned them about. Trust and safety belong together, but let’s first discuss trust. A sense of trust comes from different areas that can include (but are not limited to) a good reputation, positive reviews and ratings, customer-friendly policies (like easy returns), simple and friction-less processes, fast response times and friendly, helpful employees. Safety comes from assurances, including data privacy, secure websites, safe physical environments and more. Even if you have products that work—the basic need—without trust and safety, you might not be able to keep your customers past the first sale, assuming you have any at all.

4. Feeling Appreciated – Every customer willing to pay you for your goods and services deserves to feel appreciated. If you don’t acknowledge the customer with a simple thank you, they may not notice the first time. But there will be a point at which they feel underappreciated, and when they do, you put yourself at risk of losing them. Never miss an opportunity to express appreciation to your customers.

5. Emotional Connection – This is where you move customers from being satisfied to becoming loyal. Satisfied customers come back until something better comes along. Loyal customers come back because they like doing business with you and have made an emotional connection with you. They know your product works, they trust you, you make them feel confident (and safe) when engaging with you, they believe you have a good company and there may even be a cause or charity you mutually support, and every time they interact with you, they feel appreciated. At that point, your customers are feeling emotionally connected to you. Trust and appreciation are emotions. When all the boxes are ticked, you have the emotional connection that drives customer loyalty, advocacy and evangelism.

I could have written an entire article—or even a chapter in a book—on each of these five customer needs. Consider this article as a conversation starter. Perhaps you can add to this list of customer needs. Just because Maslow had five in his model doesn’t mean we are limited to that number.

Next week I’ll cover a similar concept, but instead of customers, I’ll focus on ‘The Employee Hierarchy Of Needs’. Stay tuned!

This article originally appeared on Forbes.com

Image Credits: Shep Hyken

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Five Simple Things Great Leaders Do

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Five Simple Things Great Leaders Do

GUEST POST from David Burkus

When you start out your career, you’re most often an individual contributor. And in that role your knowledge and skills are most important. But if you do that role well, you’ll likely be asked to consider becoming a leader. And in leadership, the methods you relied on to be a great employee don’t often help you become a great leader. Those skills will rarely help encourage and coach others to be great employees. Being a great leader requires a new toolkit.

As Marshall Goldsmith often says “What got you here, won’t get you there.”

In this article, we’ll discuss what will actually get you there. We’ll outline five ways to become a great leader —
whether it’s your first leadership role or your fiftieth.

1. Give Clear Expectations

The first way to become a great leader is to give clear expectations. In order to perform adequately (or higher), people need clarity. Teams need to know what’s expected of them, by when, and how they’re supposed to deliver it. And they need to know the priorities behind various tasks—what is most important, least important, and what’s in the middle. The challenge is that many leaders think that saying what they expect once is sufficient. And that might work in a static environment. But in a rapidly changing one, expectations and priorities can change quickly. So, leaders need to be clear about expectations and clear about when changes have happened and so expectations have also changed. And the same is true for priorities. It’s not enough for leaders to set expectations once, great leaders check-in constantly and revise their expectations accordingly.

2. Ask For Input

The second way to become a great leader is to ask for input. Often leaders can assume their primary job is solving problems and providing answers. They were promoted into a leadership role because of their outstanding knowledge and performance, and their team often comes to them with problems. So, their job must be to supply answers. Right? But great leaders don’t assume they have all the answers. Instead, they ask the team for input on nearly every decision of consequence. Great leaders know that doing so increases how much information will get captured and how many solutions will be generated. They also know that coming out of those requests for input will be team members who feel heard, and hence valued. And great leaders know that any suggestions they make can quickly be interpreted as orders—so they’re careful not to offer those suggestions until everyone has had a chance to be heard.

3. Share Your Reasoning

The third way to become a great leader is to share your reasoning. While great leaders seek out input from as many sources as possible, the final decision often rests on them. When that happens, great leaders know to share the reasoning behind their decision—not just the decision itself. Sharing the reasoning behind decisions is a way to reinforce the input that was considered before making the decision—which is especially helpful for those who may have desired a different decision. But sharing the reasoning also helps train the team on how their leader thinks—which is especially helpful when teams or team members bring their problems to the leader. Overtime, teaching team members to reason like their leader makes it more likely they’ll be able to solve the problem on their own next time. The more often leaders share their reasoning, the less often they’ll have to make a decision—because the team gets trained to reason the same way.

4. Stay Purpose Focused

The fourth way to become a great leader is to stay purpose focused. Great leaders keep the team focused on the mission, vision, and values of the organization but more importantly, how that specific team’s work helps serve that mission. It’s not enough for an organization to have a fancy vision or a compelling mission. Whether that mission actually motivates is determined at the team-level. That’s why great leaders know how to translate that larger mission into the day-to-day tasks of the team and bring meaning to the metrics the team is being assessed on. One of the most powerful ways leaders do this is by helping the team answer the question “Who is served by the work that we do?” and then build reminders to keep that answer top of mind. People want to do work that matters, and work for leaders who tell them they matter.

5. Care

The fifth way to become a great leader is to care. That’s the secret behind how great leaders tell their people they matter—those great leaders believe it. They genuinely care about the team they’re leading. They care enough to know about team members career desires and life goals, and they care enough to help each member fulfil those desires and goals in their work. Moreover, great leaders remind their people on a regular basis how much they care. The things leaders do to remind the team about its purpose are good, but the things they do to remind them they matter are great. And they can’t be faked. Great leaders genuinely care.

And even though it’s the fifth way, caring might be the most important one. You have to care for the people in your charge in order to put them first and serve them as a truly great leader. All the other ways will become easier if you start with caring. You’ll find you give clear expectation, ask for input, share your reasoning, and stay purpose focused. And over time you’ll find that caring, and employing all these methods, will help everyone on your team do their best work ever.

Image credit: Pixabay

Originally published at https://davidburkus.com on April 17, 2023

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Thought Sparks – Episodic Innovation

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Raise the curtain on Innovation Theater yet again!

Episodic Innovation

GUEST POST from Rita McGrath

We know that to create meaningful innovations that can move the needle for the companies that sponsor them, attention, resources and commitment needs to be sustained. But in too many organizations, innovation gets started, gets some traction and – just at the brink of discovering something useful – gets cut. Welcome to the world of innovation theater.

Layoffs are in the air

Predictably, firms that spent like drunken sailors during the low-interest-rate free-for-all that we’ve just been through are now reconsidering their spending as the economy looks a little soft, inflation has become a thing and investors are asking for — egads — a route to profitability!

We have seen this movie before, and it is one of the most devastating patterns that afflicts internal corporate venturing, or ICV. It’s worth bringing back some original research by Stanford’s Robert Burgelman and his colleagues to understand it.

The mystery of corporate innovation cycles

Years, ago, Robert Burgelman and co-author Liisa Vilikangas came to a perplexing conclusion. Despite all the talk about innovation, all the energy and money thrown at it and all the noise about accelerators, studios and labs, companies find it extraordinarily difficult to stick to an innovation program.

Indeed, as they observe in this article, “many major corporations experience a strange cyclicality in their ICV (Internal Corporate Venturing) activity. Periods of intense ICV activity are followed by periods when such programs are shut down, only to be followed by new ICV initiatives a few years later. Like seasons, internal corporate venturing programs begin and end in a seemingly endless cycle.”

They identify two influences on how an innovation process can come to grief. The first predictor is how healthy the existing core business is in terms of growth prospects. The second is how much a company has in terms of uncommitted resources – whether that’s cash or people. What you get when you juxtapose the two is a lovely 2×2:

Corporate venturing orphans: With plentiful resources, people get resources to start new ventures, only to find that the core business is quite happy to ignore them. So, things get going, develop for a while, then wither on the vine as the core business essentially refuses to welcome them into the corporate fold.

The entrepreneurs behind such ventures either give up in frustration, leave to find a firm with a more welcoming environment or even leave to found a startup that might well compete with the original firm. The interesting story of how Zoom became Zoom is a case in point.

All-out venturing drives: In this situation, there is money to invest, company leadership knows it has a problem, and venturing becomes the holy grail. This can be useful, as it tends to raise the profile of the venturing activity and it finally attracts attention, talent and a seat at the table.

The dilemma is that senior leadership teams in a hurry are apt to put too much time pressure and expectations for rapid growth on a still-uncertain activity. This can cause them to lose faith in its prospects and terminate it before it even has a chance. IBM and Maersk’s effort to create a blockchain platform, TradeLens, feels like that to me. That venture also ignored Bent Flyvbjerg’s excellent advice to avoid complexity to the extent possible.

Venturing seems irrelevant: Here, money and talent is already committed to other things, and the core businesses’ chances are looking pretty good. So why bother with an uncertain, unproven, hard to predict new business activity when you can just ride the existing gravy train, probably for as long as is relevant for the career of a given senior leader?

What happens in this situation is that investments in new capabilities are ignored, and eventually competition catches up or makes your existing operations irrelevant. For instance, Carlson Travel was riding pretty high for a while, and evidently under-invested in technology. Carlson Travel implicitly acknowledged as it struggled through a bankruptcy that it had under-invested in its core digital technologies and customer experiences and promised to spent $100 million on getting up to speed.

Desperately Seeking Corporate Venturing! Ok, so we’ve left investing in the future too late, money is now tight, and we need to deliver something to our customers and investors PRONTO! These situations rarely end well. A desperate senior executive team might well enter into ill-considered acquisitions or now, belatedly, fund the one or two ideas that have survived being neglected.

These are often terrible ideas. See: checkered history of mainline telecom or cable companies entering the content business. AT&T’s misadventures with its forays into the media business are a case in point. Verizon’s as well. Desperation seldom leads to cool-headed deal-making or venturing. A rare exception took place at Xerox Parc, where the invention of the laser printer saved the company after the government forced it to essentially give away its patents to other firms.

It doesn’t have to be this way!

In the next Thought Spark, I’ll describe what we think about all this at Valize, my sister company whose mission is to create predictable and reliable innovation and growth capabilities. In the meantime, please stop pouring money into innovation theater!

Or if you are really itching to start an innovation or transformation program, mail us at growth@valize to set up a time. We can get you off on the right foot. After all, there are no standing ovations for innovation theater.

Image Credits: Unsplash, Pexels, MIT Sloan Review, www.collectivecamp.us

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Transformation is a Journey Not a Destination

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Transformation is a Journey Not a Destination

GUEST POST from Greg Satell

When Mohandas Gandhi was a young lawyer he was so shy that he couldn’t even bring himself to speak in an open courtroom. He was also impulsive and had a nasty temper. Nelson Mandela started out as an angry nationalist, who argued vigorously about joining forces with other racial groups in a coalition to fight against Apartheid.

Yet as I explain in my book Cascades, both men learned to conquer themselves and evolved into inspirational leaders that achieved transformational change. Movements, as the name implies, must be kinetic to be successful. They need to start in one place and end up somewhere else, evolving and changing along the way.

The same is true for an organization. To create a real impact on the world, you first must drive change internally. That’s not easy and it doesn’t happen all at once, which is why most transformations fail. However, successful leaders understand that to bring true change about it is not enough to simply plan and direct action, you have to inspire and empower belief.

Building A Genome of Values

When Lou Gerstner took over as CEO of IBM in 1993, the company was near bankruptcy. Many thought it was a dinosaur and should be broken up. Yet Gerstner saw that its customers needed it to help them run their mission-critical systems and the death of IBM was the last thing they wanted. He knew that to save the company, he would have transform it and he started with its values.

“At IBM we had lost sight of our values,” Irving Wladawsky-Berger, one of Gerstner’s chief lieutenants, told me. “IBM had always valued competitiveness, but we had started to compete with each other internally rather than working together to beat the competition. Lou put a stop to that and even let go some senior executives who were known for infighting.”

Pushing top executives out the door is never easy. Most are hard working, ambitious and smart, which is how they got to be top executives in the first place. Yet sometimes you have to fire nasty people, even if they outwardly seem like good performers. That’s how you change the culture and build a collaborative workplace.

In doing so, Gerstner led one of the greatest turnarounds in corporate history. By the late 1990s, his company was thriving again and continues to be profitable to this day. That would have never been true if he saw the problem as one of merely strategy and tactics. IBM had to change from the inside first.

Forging Shared Purpose And Shared Consciousness

When General Stanley McChrystal first took over Special Forces in Iraq, he knew he had a magnificently engineered military machine. No force in the world could match their efficiency, expertise and effectiveness. Yet, although they were winning every battle, they were losing the war.

The problem, as he explained in his book, Team of Teams, wasn’t one of capability, but interoperability. His forces would kill or capture Al Qaeda operatives and collect valuable intelligence. Yet it often took weeks for the prisoners to be questioned and the data to be analyzed. By that time, the information was often no longer relevant or actionable.

What McChrystal realized was that if his forces were going to defeat a network, they had to become a network and he set out to build connections within his organization to improve trust and interoperability. He upgraded liaison officer positions to only include the best operators and embedded commandos into intelligence teams and vice versa.

While formal structure and traditional lines of authority stayed very much in place, operating principles changed markedly. The transformation wasn’t immediate, but soon personal relationships and shared purpose replaced archaic customs, procedures and internal rivalries. Even those resistant to change found themselves outnumbered and began to alter their views and behavior.

That allowed McChrystal to also change the way he led. While in traditional organizations information is passed up through the chain of command and decisions are made at the top, McChrystal saw that model could be flipped. Now, he helped information get to the right place and decisions could be made lower down. As a result, operating efficiency increased by a factor of seventeen and soon the terrorists were on the run.

Forging Cultural Awareness

As one of the largest credit bureaus in the world, Experian’s customers depend on it to help determine which customers are good risks and which aren’t. If its standards are too lax, lending organizations lose money from making bad loans. However, the opposite is also true. There are also consequences if it fails to identify good credit risks.

“One of the things that made the US so successful throughout its history is the principle that everybody can participate in the American dream,” Alexander Lintner, Group President at Experian told me. “Yet today, if you don’t have access to credit, it is very hard to live that dream. You can’t buy a house or a new car or do many other things most people want to do.”

“If we rely solely on traditional credit scores about 26 million working age adults are left out of the credit system,” he continued. “That means our clients are missing out on as many as 26 million potential customers. So at Experian, we’ve been working on extended scores based on alternative data, such as rent and utility bills, to help establish a credit history.”

As a fairly recent immigrant to the country, Lintner knows the problems that having a lack of a formal credit history can cause. He credits his company’s efforts to promote cultural awareness programs internally through Employee Resource Groups for driving a passion to solve problems for customers and the public at large, especially related to financial inclusion.

Transformation Starts At Home

Clearly, Experian didn’t start its Employee Resource Groups as a product development strategy, but to improve the lives of its employees. “We strive to make a very diverse group of people feel that Experian is their home,” Lintner says. Nevertheless, Its internal commitment helped create empathy for those who are excluded from the financial system and helped lead to a solution.

Chances are, that won’t end with using alternative data to improve credit scores, but will affect many other facets of its business. To drive a true desire to solve problems, it must be genuine. Much like Gandhi and Mandela, you have to first drive change internally if you hope to create a real impact on the world.

Wladawsky-Berger talks about IBM’s earlier transformation in similar terms. “Because the transformation was about values first and technology second, we were able to continue to embrace those values as the technology and marketplace continued to evolve,” he told me and credits that transformation in values with the company’s continued profitability. While IBM has had its challenges over the years, nobody talks about breaking it up anymore.

What most organizations fail to understand and internalize is that transformation is always a journey, never a destination. There is no immediate return on investment from cultural change. Investors won’t cheer you on for firing top employees who are disruptive or creating Employee Resource Groups. Yet great companies understand that transformation always starts at home.

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

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