Monday, October 10, 2011

The Map Is Not The Territory


To have a shared understanding with one or more people it helps to understand they are not using the same map as you are.

Neuro-Linguistic Programming (NLP) practitioners tell us that even though we may believe other people are like us, the truth is that each of us has our own personal perception of the world. As human beings, we respond to people, situations, events and circumstances through our internal maps. Our maps can be likened to a camera lens filter. Every experience we have from the moment of birth to the present serve as filters through which we perceive current events and situations in our lives. These filters, or maps, influence our reactions and decision making in the here and now. Two people who share an experience will often notice significantly different things about that experience, respond differently and store different memories of the experience.

So NLP tells us that “the map is not the territory", it is our individual interpretation of the territory. Great, NLP folks can tell us something useful, but how is this useful to us?

Being relatively new additions to the business leader's toolkit, creativity and innovation are topics that inspire a huge number of articles and books to be written. Some of these contain insights and wise words but many are 'how to' books. Remember that these are 'maps', somebody else's perception of what is happening/has happened in the past. Not only are many context specific but much information is often left out.

Many an innovation initiative has become de-railed because someone has read the book and failed to appreciate that it is not a step by step guide, a map that covers all eventualities. By all means buy more books and consult widely about the territory that you are entering. Also remember that as long as you have your wits about you, exploring can often be the best way to map out your own territory.

For the same reason, creative techniques should also be properly researched. Some such as visualisation can cause distress if used incorrectly and others can cause anger as well as not having the effects that you were anticipating.

Remember that to explore new territory you need to obtain or create a map especially when passing on knowledge to others. How often has the CEO's speech been misinterpreted because employees do not share the same perception or vision of the company? Never forget that "the map is not the territory".

Monday, September 26, 2011

Remove The Blockages And Let The Solutions Flow

There are many ways in which you can be stopped from creating solutions and generating ideas. Some are physical but many are psychological. Here are five such blockages together with suggestions for removing them.

1. Copying is cheating
This may be the case for school examinations but not in the world of business. Really great ideas are often protected with patents and copyright so you cannot use them (not without fear of legal action anyway). If an idea is not protected then you can use it, I call it 'creative swiping'. Tell the doubters that this will get things done quickly and that you can make your own mark by tailoring the idea for you own purposes. This is exactly the philosophy behind Open Source Software.

2. We Must Figure It Out Ourselves
There is great pleasure in doing this however why should you do this if someone else has already done so? Save time and create original ideas elsewhere. Avoid getting into this situation by rewarding people according to the generation of a solution rather than for the effort put in to generating a solution. They will soon get the message.

3. We Are Inferior If We Cannot Figure Things Out
This is a natural feeling and if bad if you are always taking in ideas from outside (some people do however make a good business out of this). At some point your problem solving team will generate ideas that other people will wish to use so the balance can be redressed. You should emphasise that customisation and adaptation are as important as original thought.

4. Problems Are Owned By Individuals
People have a great attachment to the problems that they work on, particularly engineers and scientists. They can be reluctant to share their problems so you can explain that the issue is critical (making them feel important) so it might be necessary to involve others or look outside the organisation as a normal part of solving problems. Do not remove ownership from the original owner if at all possible and never force people to work on issues that they do not own or have no interest in if you wish them to remain motivated.

5. Fear Of Being Replaced
This is common when it is suggested that problem owners share their problems of look for outside help. Reinforce the idea that nobody is being replaced and that looking elsewhere for solutions is part of the problem solver's toolkit.

Address the above and you will notice an improvement immediately.

Monday, September 19, 2011

The Power Of 'Why?'

Sometimes it is ‘obvious’ what our problem is and so the answer is obvious too. This may very well be the case, but just in case it is not or perhaps to uncover a better solution we might need to uncover the real reason for something going wrong.

Problems and issues also tend to be multi layered and we have to scratch below the surface to work out what is really happening. Be careful when using it as continuously asking someone else ‘Why?’ may make them defensive.

Imagine the simple scenario ‘sales are falling’. One possible assumption might be that our sales people are no good at their job so we might replace them or retrain them. First, let us ask ‘Why?’

Q. Why are sales falling?
A. Because customers don’t like our products

Q. Why don’t they like our products?
A. Because they are outdated, not as cool as this year’s model

Q. Why are our products outdated?
A. Because we have not developed any new ones for 5 years

Q. Why have we not done this before?
A. Because the boss has not allowed us

Q. Why has the boss behaved in this way?
A. Because they have no spare time to spend

In this simple example our initial assumption of having a poor sales force is incorrect, the underlying issue is that the boss (possibly you!) has no time either because of high workload or poor time management. We can also see that the issue has multiple layers and unless the issues at lower layers are resolved then our initial problem is unlikely to be properly resolved.

You could thus use this for:
  • Identifying the need for a new product or service
  • Determining why your competitors are more attractive to customers
  • Asking why your costs are higher than they should be
… and many more.

Monday, September 12, 2011

Innovation - What's In It For Me?

Employees love success so start talking about it - all of the time. Above all, people ask 'what's in it for me?' The answer does not have to be money, think of it in terms of value where value can be one or more of:
  • recognition from the business or organisation
  • recognition from management and peers
  • monetary rewards
  • the opportunity to help others (and feel good)
  • creating a feeling of belonging
  • the opportunity to use infrequently used skills
  • the opportunity to collaborate and learn
  • the opportunity to bring something completely new into the world
It is difficult to address all of the above but your Innovation initiative can be designed to meet more than one. The number and type of benefits you cover will depend on your organisation and possibly national cultural issues.

Innovation, particularly Open Innovation is a social activity so networking activities such as using Social Media can be used to provide benefits and also to spread news of your success. Others will then be more inclined to join in and contribute. The more minds you connect, the greater the value you can generate for your business whether you seek new products and services or just process improvement.

Apart from asking themselves the question 'what's in it for me?' people will also wonder 'how painful will it be?' or 'how much effort will it take?'. All interactions involve a degree of friction or tension so let us go with this engineering metaphor and consider how we might 'oil the wheels' of our Innovation project or programme to ensure things run as smoothly as possible.

All of your contributors will take value from the project in their own way so you will need to ensure that you generate and distribute value in as many ways as possible. It is also good practice to ensure that the personal values of individuals are aligned with the values of the business.

People can also be aligned with your aims (hence pulling in the same direction) if you create a clear and compelling story about your Innovation challenge that will resonate with all of your participants. Such a story can also be used to set out goals, definition of success and rules of engagement which will help you to manage expectations. Do the groundwork first and success will follow!

Tuesday, July 12, 2011

Audacious Ideas

With most ideas, there is a correlation between how audacious or risky an idea is and its potential for economic reward. Disruptive or radical innovation produce  ideas which disrupt industry and dramatically change a business sector. These are audacious and highly risky but if they work out as hoped, they bring huge rewards.

Niklas Zennström and Janus Friis developed their own voice over Internet protocol (VoIP) and then built a business around it - Skype. They offered free telephone calls over the World Wide Web as well as cheap calls via the Web to ordinary telephones. Their business model was audacious. A couple of unknown Swedish guys took on the world's telephone service providers. Their idea was both innovative and seriously risky. Potential users might well have decided they did not trust  VoIP or Internet Service Providers who  might have tried to block Skype calls. In which case, the two Swedish guys would have lost a lot of money.

Skype has been a huge success story. There are more than 100 million Skype users around the world and the two founders sold their company to eBay for USD2.4 billion. Not bad for an audacious idea.

To visualise the importance of audaciousness in business innovation, imagine a simple graph with X and Y axis. The right end of the X axis is marked "Audacity", the left end is marked "Boringness". The top of the Y axis is labelled "Risk/Rewards". The bottom is labelled "Stability". Next, draw a narrow diagonal bar from the bottom left corner of the graph to the upper right corner. This bar represents the range where most business ideas fall. Audacious business ideas are risky yet innovative. Boring business ideas are safe and not very risky. But they do not bring high rewards. Most business ideas, of course, tend to fall near the axis.

There are several useful things we can learn from this exercise.
  1. In Europe and America we tend to favour highly innovative ideas, but it seems that a handful of boring business ideas resulting in incremental innovation can also bring benefits. You should not focus all your innovative efforts on big, disruptive innovation. A number of smaller, moderately innovative ideas should be mixed in.
  2. Many companies have an overly strict review process that requires every single dea pass a number of hurdles before it is implemented. All too often committees reduce the risk of the idea. They seek to protect the company against risk or most likely they seek to protect their own jobs by not sanctioning risk projects. By reducing risk, they are also making an idea more boring, less innovative and reducing the potential reward.
  3. Conversely, an idea can often be pushed to be more audacious, thus increasing its reward potential - but also its risk. Bear this in mind the next time you brainstorm ideas. When you get a few good ideas, don't stop there. Push the best ideas further.
  4. If an idea is very boring and of low risk, its reward potential is also low. Thus you need to be certain that the cost of implementing the idea will not be greater than the rewards it brings in.
So, the next time you have a business idea, go on and be audacious. Push the idea to the limits and don't be afraid to go with it.

Friday, July 08, 2011

Doing Creativity the Steve Martin Way

These thoughts were inspired by some works of the comedian Steve Martin and have been toned down a little!

"All knowledge is or is about to become old-fashioned. There is room for something new".

Remember that all but the greatest theory, most of the data and knowledge acquired by scientists will become increasingly irrelevant as it is supplanted by new theory and applicable data. Someone has to provide that new theory and data, why shouldn't it be you?

"There is no harm in charging oneself up with delusions between moments of valid inspiration".

It's OK to fantasize about success. Dream your wild-ass dreams. Creativity is often manic. Just remember that there is a reason folks talk about manic depression. In the end, most of your ideas won't work out. That's normal. Creativity is about generating 100 ideas, so that you can recognise just one good one.

"It was easy to be great. Every entertainer has a night when everything is clicking. These nights are accidental and statistical. Like lucky cards in poker, you can count on them occurring over time. What was hard was to be good, consistently good, night after night, no matter what the abominable circumstances".

When you find your niche, when you have your business idea, make sure that you are consistently good at what you do, no matter what the circumstances or market conditions.

Wednesday, July 06, 2011

Do you belong to the Ideas Cult?

The Cult of Ideas is a dangerous body lurking within the field of corporate innovation. It is a disturbing grouping in which members worship massive numbers of ideas above all else. On the surface, this seems a good thing. After all, innovations are founded on ideas, are they not? So, if a company wants to innovate, the more ideas it creates the better. Sadly, however, the truth is that the cult of ideas can actually stifle creativity and inhibit innovation.

The cult manifests itself when Starbucks proclaims that they have received over 100,000 ideas from their on-line suggestion web site or when IBM boasts of Idea Jams that generate many tens of thousands of ideas.  It is easy to understand why the Cult has grown so powerful. Most senior managers come from analytical backgrounds, often with MBAs from prestigious academic institutions.

Unfortunately, finding meaningful numbers in the innovation process can be tricky. Technology and pharmaceutical companies can count their patents - and many do. But patents fail to measure efficiency and business model innovation, which are also important. Moreover, many innovative firms take out few patents. The number of new products launched every year, or the income generated by products introduced in the past five years is another approach for measuring product innovation - but it also fails to recognise other forms of innovation. A visit to any supermarket suggests we must question whether the introduction of new products truly represents innovation. A look at all the variations of washing up liquid or soap powder, many of which claim to be "new", for instance, is hardly indicative of product innovation.

So managers have latched on to the counting of ideas and the assumption that lots and lots of ideas must be a good thing. This has been enhanced by innovation service providers who also espouse the notion that more ideas are better than fewer. And from this situation has grown the Cult of Ideas which is further fuelled by the efforts of Innovation consultants and vendors of Idea Management solutions.

So why is this cult bad? Ideas on their own are good but it is the pursuit of ever increasing numbers that is not so good. We tend to forget what we are supposed to do next! If we do not actually implement ideas but simply sit around and make plans then our innovation programs are guaranteed to fail. Ideas must be put into practice and economic value created. Companies such as Google and Apple rarely brag about how many ideas they generate. They demonstrate innovation. Take a look at Fast Company's list of most innovative companies (http://www.fastcompany.com/most-innovative-companies/2011/). Those at the top of the pile are recognised for their innovations and not for quantities of ideas.

Tuesday, June 14, 2011

Innovation - Food for thought

If you search Amazon for "Innovation," you'll get over 43,000 book titles with many more ebooks and blog articles scattered around the Internet, many of which I am responsible for. So what are these volumes all about and why so many for such a simple word - Innovation?

The challenge starts with the definition of innovation. Most of the definitions I've seen are overly complicated and do nothing other than help persuade the man in the street that Innovation is too complicated and should be left well alone. It can be made complicated but need not be.

The founder of the low cost airline JetBlue said "Innovation is trying to figure out a way to do something better than it's ever been done before". And Thomas Edison's said "There's a way to do it better-find it". Which just about covers it all.

So far, so good. Our high level definition opens up innovation, and makes it accessible, regardless of industry sector or function. Let us move on to some basic principles, what I call the Three Pillars of Innovation:
  1. Ingenuity. Ingenuity is human creativity plus application, idea plus execution. Ideas on their own are invention and execution is simply working harder not smarter. We need both.
  2. Perfection. Imperfection is what drives innovation, because nothing's perfect. Perfection is a pursuit, a journey, not a destination. The destination is a place called "Better." We may have to know when to call it a day and move on to our next challenge as we can never actually attain perfection.
  3. Fit. Any innovation has to fit with your customers, market and expertise. There is no point creating something just for the sake of it. Or to put it another way, if you have the best mousetrap that the world has ever seen, you must have a really big issue with mice!
There has to be some element of each of the above for an Innovation to be successful. The big challenge for businesses is to ensure adherence to these key principles on a daily basis.

Wednesday, June 08, 2011

The Paradoxes of Creativity

I like this list of paradoxes of creativity from leading creativity thinker Michael Michalko (author of Thinkertoys).

He states that to create, a person must: 
  1. Have knowledge but forget the knowledge.
  2. See unexpected connections in things but not have a mental disorder.
  3. Work hard but spend time doing nothing.
  4. Create many ideas yet most of them are useless.
  5. Look at the same thing as everyone else, yet see something different.
  6. Desire success but learn how to fail.
  7. Be persistent but not stubborn.
  8. Listen to experts but know how to disregard them.

Sunday, June 05, 2011

Innovation series - Coke's answer to the iPad

Coke's new Freestyle vending machine offers a range of up to 125 different drinks and is expected to transform the business through its ability to gather vast amounts of customer data each day.

Coke was aware that the US consumer wanted more variety from Coke's dispensers than it was providing but they could not foresee how much variety was being demanded."We initially thought it might be 20 or 30 different drinks," says Coca-Cola Freestyle general manager Gene Farrell. "The research came back and told us it was more like 100."

This is a huge leap from traditional vending machines that usually offer half a dozen or so variants out of the 500 brands that Coca-Cola actually owns. "The same research told us that the customer didn't want a bartender to serve them from behind a counter in a restaurant," says Farrell. "They wanted to be able to mix their own drinks."

Coke customers can put together their own drinks combinations using the machine, so if they want to, they can combine the eight flavours of Sprite available in the US, including bitter lemon citrus grapefruit, and lemon and lime. Coke also reacts to feedback. They noticed customers writing on Facebook that there were only two flavours of Coke Zero, so they added the full array of flavours."

In developing the self-serve drinks mixer, Coca-Cola called in some external expertise in the fields of software, technology and design from the likes of Microsoft, Apple, Ferrari and BMW. That industry collaboration seemed to ensure the Freestyle's success, according to Farrell. "Consumers love it. We've been in the market since 2010 now and we're seeing double-digit increases in sales. Our restaurant customers are telling us that their Freestyle machines account for increases in traffic."

All the machines are connected via a wired network and each downloads consumption data by brand and day-part for every restaurant they are in. "We can gather all that data and look at it by region, by customer type and by channel. We're using that data in different ways. For example, we've developed a free iPhone app that allows the user to create their own drink by mixing the choices available. We're putting a barcode reader into the machine so that it can talk directly to your mobile device," says Farrell. New products can also be tested via the machines and geographic and lifestyle data can be captured also. No longer is Coke a 'one size fits all' product.

This type of thinking looks set to revolutionise Coke's business, what can it do for yours?