There’s a long history of ‘corporate antibodies’ blocking innovation. The challenge stems from the issue of KPIs vs innovation. Most organisations have a well tuned engine room that produces profit. It’s specifically tuned to eliminate variation and maximise efficiency. These two goals don’t fit well with innovation which can be messy, iterative and inefficient. In this blog post, Steve Blank offers a cunning plan to work around the anti-bodies in a manner that both enables innovation and builds capability. The essence of the idea is that organisations need a set of processes for the engine room, and another set for innovation.
In his post Steve even offers templates for how a leadership team should manage implementing this process, which is something that is increasingly rare to find online (where it’s easy to be a innovation expert on theory, but much harder to prove real-world credentials).
It’s a highly recommended read if you’re in a large organisation, and banging your head against the wall trying to move the dial on innovation.
Ten years ago a small group of us started down the path of a large-scale transformation at the Canterbury DHB. Now this work has been hailed in The Guardian as something that the NHS should follow. Read the full details here .
Geoffrey West is a physicist by training, but has crossed over into theories of biology, and then to theories about cities. More recently he has started to look at companies, and some of his research is illuminating with respect to the need for innovation in organisations.
His observation about cities is that they need diversity in order to grow, and companies need similar:
“…in what way can you make a company more like a city?” West asks. “You allow at least part of it to be a little more organic, to grow in a natural way, and let it be much more open to having mavericks, naysayers, and people with odd ideas hanging around. Allow a little bit more room for bullshit. You need some mechanism to somehow break this straitjacket that big companies take on as they grow.”
You can get further context from the full article here: The Fortune 500 Teller
In my mind innovation, creativity and curiosity are absolutely linked. In an increasingly volatile world, these traits assume new value as they allow people to assemble disparate knowledge and recombine it in order to avoid ‘failures of imagination’ about possible futures. PwC carried out a survey earlier this year of CEOs which threw out some fascinating insights:
When asked recently to name the one attribute CEOs will need most to succeed in the turbulent times ahead, Michael Dell, the chief executive of Dell, Inc., replied, “I would place my bet on curiosity.”Dell was responding to a 2015 PwC survey of more than a thousand CEOs, a number of whom cited “curiosity” and “open-mindedness” as leadership traits that are becoming increasingly critical in challenging times.
Source: Why Curious People Are Destined for the C-Suite
There’s a plethora of good advice in this article on innovation, especially the sections on art, business and innovation. However the one piece that will probably ring true for large organisations is this:
At most companies that care, you can set up creative, innovative environments and teach everyone to function better within them. You can hire a Picasso. Or, better yet, you can hire several Picassos: Several extraordinary people with complementary talents, who each have strengths that the others don’t have. Having picked them, you can empower them. You can put them with 15 other people as good as they are, but in different ways. You then get a type of generative activity and creativity that you don’t get otherwise. Even then you still have to take that creativity, massage it, and create an output that’s valuable for a customer. Which is hard for most companies to do.
Meanwhile, odds are that the rest of your organization, especially middle management, will strive to eliminate them. So you need to give them top cover.
Never underestimate the need for top cover.
Source: Bran Ferren on the Art of Innovation
When I give presentations at conferences, I often get asked by people one simple question: “how do I keep abreast of all this new stuff?” My response is that people should think about getting mentoring from people younger from themselves – ‘reverse mentoring.’
Fast Company had a short piece on this recently, and it highlighted some of the benefits:
Shivananda says reverse mentoring also helps leaders connect with millennials. “Often leaders look at millennials and don’t understand them,” he says. “Reverse mentoring gives me an opportunity to do that, not just by learning in terms of technology, but by engaging and maximizing the workforce. It gives me an ability to demonstrate that this is a place to come to work and be appreciated. Somebody wants to understand and learn from them.”Reverse mentoring works best when it’s a reciprocal experience, says Shivananda, and this can help the junior employee grow in his or her own career by discussing their aspirations.
“Reverse mentoring should always be a mutual experience; I provide value by sharing my years of experience,” says Shivananda. “They give me value through sharing what’s new, what’s happening, and what’s relevant.”
Source: Why A PayPal Executive Is Being Mentored By His Millennial Employees
The most recent McKinsey Quarterly has a concise article that sums up a multi-year research project by the organisation. As the title suggests, it breaks the findings into eight areas. While the article is rich in highly quotable insights, the one below caught my attention:
Innovation also requires actionable and differentiated insights—the kind that excite customers and bring new categories and markets into being. How do companies develop them? Genius is always an appealing approach, if you have or can get it. Fortunately, innovation yields to other approaches besides exceptional creativity.
The rest of us can look for insights by methodically and systematically scrutinizing three areas: a valuable problem to solve, a technology that enables a solution, and a business model that generates money from it. You could argue that nearly every successful innovation occurs at the intersection of these three elements. Companies that effectively collect, synthesize, and “collide” them stand the highest probability of success. “If you get the sweet spot of what the customer is struggling with, and at the same time get a deeper knowledge of the new technologies coming along and find a mechanism for how these two things can come together, then you are going to get good returns,” says Alcoa chairman and chief executive Klaus Kleinfeld.
(Source: The eight essentials of innovation | McKinsey & Company )
One of the issues that leadership teams often wrestle with is the length of time it takes for innovation to bear fruit. I don’t think there’s a magic bullet for this, but that organisations should try a range of approaches. For large organisations, innovation at scale can be achieved through a range of software solutions including MindJet SpigitEngage. However it’s still hard to beat the face-to-face interaction of small teams racing against a clock in the same room. With that in mind a new book from Michael Schrage favours the 5×5 approach:
…half of Schrage’s new book is devoted to an innovation methodology called 5×5 that captures the benefits of experimentation. In the 5×5 approach, writes Schrage, “A minimum of 5 teams of 5 people each are given no more than 5 days to come up with a portfolio of 5 ‘business experiments’ that should take no longer than 5 weeks to run and cost no more than 5,000 euros to conduct. Each experiment should have a business case attached that explains how running the experiment gives tremendous insight into a possible savings of 5 million euros or a 5-million-euro growth opportunity for the firm.”
Schrage says that he’s been facilitating these 5×5 exercises in companies, under the auspices of MIT’s Sloan School of Management and the Moscow School of Management since 2009. The results: “There are always—without exception—at least three or four experiments that make top management sit up straight, their eyes widening or narrowing, dependent on temperament, and incredulously ask, ‘We can do that!?’”
via How to Avoid Bad Investments in Good Ideas.
From the excellent strategy & business publication (formerly booz) comes this short article about where the good stuff comes from. The paragraph below sums it up:
“…breakthrough strategies rarely come from the typical strategic planning effort. Nor do they typically result from the common practice of generating and evaluating strategic options. And they certainly aren’t inspired in a traditional board offsite, executive retreat, or brainstorming session. Instead, they start with individuals working on big, specific challenges who find novel ideas in unexpected places, creatively combine them into innovative strategies, and personally take those strategies to fruition—against all odds.”
via The Truth about Breakthrough Strategies.
What exactly is a serendipity architect? I get asked this a lot, and my answer is two-fold depending on how the question is being asked.
First the title is a litmus test for who I’d like to work with. If people look at me sceptically when they ask, then it’s a fairly safe bet that working with that person is going to be difficult (like the time one executive introduced me to an audience as a “self described serendipity architect.”). On the other hand, the people that I like to work with smile when they mention the title, or are simply curious.
Secondly it describes a lot of what I do – keeping abreast of a lot of fast moving areas, discussing interesting developments with people that know these areas well, pulling insights from the mix and then working with leadership teams to understand how they can take advantage of the opportunity. One of the comments I hear during the last phase of this process goes along the lines of “wasn’t it lucky that we…” My response is that this isn’t luck. It’s designed serendipity.
If you want a longer read about how serendipity happens in an online world, Wired magazine published an extract from the book “Smarter Than You Think.” The last paragraph of the extract sums it up nicely:
The birth of Ushahidi is a perfect example of the power of public thinking and multiples. Okolloh could have simply wandered around wishing such a tool existed. Kobia could have wandered around wishing he could use his skills to help Kenya. But because Okolloh was thinking out loud, and because she had an audience of like-minded people, serendipity happened.