Strategy. Innovation. Brand.

innovation

Innovation In Our Refrigerator

How can I innovate here?

How can I innovate here?

When we think of innovation, we often think of bright young people working in creatively organized offices while pushing the envelope and thinking outside the box. It’s fun, exciting, challenging, and maybe even a little bit sexy. It’s the kind of job we all want.

But what about the rest of the world?

Much of the innovation that I have observed takes place in rather mundane places and involves rather ordinary business or social processes. It’s the act of taking some thing (or some process), observing how it’s used, and designing a better way to do it. If we think about innovation only as the process of creating something entirely new, we’ll miss many, many opportunities to change the world for the better.

Take our refrigerator, for instance.

Suellen and I were recently on vacation and asked a very responsible young woman named Alyssa to house sit for us. As soon as we left, our refrigerator stopped working. Alyssa organized a service call, coordinated with the repairman, and had the refrigerator repaired in a jiffy. From our perspective, it was virtually painless (except for the bill, of course).

When we arrived back home, we also got a pleasant surprise. Alyssa had completely reorganized the interior space of the refrigerator. She had examined the food items we keep and adjusted shelves and drawers to fit our lifestyle. She used the space much more efficiently and made frequently used items more readily available. It’s now simpler and easier to store and retrieve our food.

Why hadn’t we organized our fridge more effectively? We never thought about it. It’s one of those ordinary, mundane appliances that doesn’t attract our attention. It’s not leading edge, or state of the art, or sexy. Though we use it every day, we never considered how we might improve it. When the refrigerator arrived in our house, we simply put our food in it. We didn’t think about rearranging shelves or drawers to improve utility and efficiency. It took Alyssa to apply design thinking to an ordinary, everyday item.

We describe some things as “wallpaper” because they recede into the background. We don’t need to pay much attention to them. We don’t consider them as opportunities to create and innovate. But we interact with our wallpaper everyday. That makes even small innovations meaningful and impactful. If you want to be an innovator, spend more time on wallpaper and less time thinking outside the box.

Button-Down Innovation

Liberty Bell Collar Roll (oxforclothbuttondown.com)

Liberty Bell Collar Roll (oxforclothbuttondown.com)

Men’s fashions change very slowly. By and large, the shirts I wore in high school are still in fashion. (Too bad they don’t fit). In fact, I bet that many of the shirts my Dad wore in high school would still be in fashion. So, there’s not much room for innovation in men’s shirts, is there? If it ain’t broke, don’t fix it.

It’s a good thing that Elliot Gant didn’t get the memo. Elliot, who started Gant Shirtmakers with his brother Martin in 1949, died a few days ago at age 89. The Gant brothers innovated where most other managers never even thought about it. The Gants observed closely and made a series of innovative enhancements. Though each innovation was small, the cumulative effect was huge (as they say in New York).

Here’s how the New York Times describes how the Gant brothers changed and enhanced the traditional button down shirt.

The Gant brothers perfected the collar’s shape, known as the perfect roll, formed by the front edges of the buttoned collar. They introduced the box pleat in the back to allow more freedom of movement, the extra button in the back of the collar to keep the tie in place, and the patented button tab that connects beneath the necktie to push the knot up and out. (The tab won an award from Esquire magazine.)

They also introduced the hanger loop on the back of the shirt so that it could be hung on a hook — in a locker, say — without wrinkling.

The Times writes that the locker loop became, “…a collegiate and high school totem: A young man would remove it from his shirt to signal that he was going steady.” I remember it somewhat differently. If a girl liked you, she would walk up behind you in the high school hallway, pull the loop off the back of your shirt, and keep it as a memento. Sadly, most of my shirts still had their loops.

How did the Gant brothers create a teenage totem from something as unoriginal as a shirt? According to the Gant website, the Gant brothers knew their customer well and focused on a very specific segment: young, preppy men. They never let their gaze wander. They also dedicated themselves to quality as an important differentiator in a largely undifferentiated market.

They also innovated in advertising and marketing communications. They relocated their company from Brooklyn to New Haven, Connecticut largely because New Haven had a large population of skilled tailors. It also, of course, had Yale University. As the website notes, the Gant brothers used Yale for design inspiration and also for marketing. They created the American East Coast University look, which was “distinctive and debonair”. It was what the cool kids wore.

Gant chose to market in nontraditional ways as well. They started with the Yale Co-op, a campus store “…where [students] went to buy clothing and as the Ivy League Look exploded the Yale Co-op was the nexus of the new style.”

Gant also advertised in non-traditional media – non-traditional for men’s clothing at least. They started with small one-eighth page ads in The New Yorker, a magazine for the smart set. They grew upward and outward from here.

When we think of innovation today, we of then think of big, audacious game-changers – artificial intelligence, robots, automatons, and so on. But let’s remember that we can innovate on a smaller scale as well. Changing where and how you place a button on a shirt can create a valuable brand, important differentiation, and even a teenage totem. Innovation doesn’t require large-scale genius. It simply requires observation, imagination, and dedication. Thinking small is just as important as thinking big.

Innovation’s Speech Impediment

It's not a good idea if I don't understand it.

It’s not a good idea if I don’t understand it.

One of the most important obstacles to innovation is the cultural rift between technical and non-technical managers. The problem is not the technology per se, but the communication of the technology. Simply put, technologists often baffle non-technical executives and baffled executives won’t support change.

To promote innovation, we need to master the art of speaking between two different cultures: technical and non-technical. We need to find a common language and vocabulary. Most importantly, we need to speak to business needs and opportunities, not to the technology itself.

In my Managing Technology class, my students act as the CIO of a fictional company called Vair. The students study Vair’s operations (in a 12-page case study) and then recommend how technical innovations could improve business operations.

Among other things, they present a technical innovation to a non-technical audience. They always come up with interesting ideas and useful technologies. And they frequently err on the side of being too technical. Their presentations are technically sound but would be baffling to most non-technical executives.

Here are the tips I give to my students on giving a persuasive presentation to a non-technical audience. I thought you might find them useful as well.

Benefits and the so what question – we often state intermediary benefits that are meaningful to technologists but not meaningful to non-technical executives. Here’s an example, “By moving to the cloud, we can consolidate our applications”. Technologists know what that means and can intuit the benefits. Non-technical managers can’t. To get your message across, run a so what dialogue in your head,

Statement: “By moving to the cloud, we can consolidate our applications.”

Question: “So what?”

Statement: “That will allow us to achieve X.”

Question: “So what?”

Statement: “That means we can increase Y and reduce Z.”

Question: “So what?”

Statement: “Our stock price will increase by 12%”

Asking so what three or four times is usually enough to get to a logical end point that both technical and non-technical managers can easily understand.

Give context and comparisons – sometimes we have an idea in mind and present only that idea, with no comparisons. We might, for instance, present J.D. Edwards as if it’s the only choice in ERP software. If you were buying a house, you would probably look at more than one option. You want to make comparisons and judge relative value. The same holds true in a technology presentation. Executives want to believe that they’re making a choice rather than simply rubber-stamping a recommendation. You can certainly guide them toward your preferred solution. By giving them a choice, however, the executives will feel more confident that they’ve chosen wisely and, therefore, will support the recommendation more strongly.

Show, don’t tell – chances are that technologists have coined new jargon and acronyms to describe the innovation. Chances are that non-technical people in the audience won’t understand the jargon — even if they’re nodding their heads. Solution: use stories, analogies, or examples:

  • Stories – explain how the innovation came about, who invented it, and why. Put real people in the story. Explain what problems existed before the innovation arrived. How is the world better now?
  • Analogies – compare it to something that the audience knows and understands. A Service Oriented Architecture (SOA), for instance, is remarkably similar to a modular stereo system.
  • Examples – tell the story of other companies that are using the technology. What benefits have they gained?

Words, words, words – often times we prepare a script for a presentation and then put most of it on our slides. The problem is that the audience will either listen to you or read your slides. They won’t do both. You want them to listen to you – you’re much more important than the slides. You’ll need to simplify your slides. The text on the slide should capture the headline. You should tell the rest of the story.

If you follow these tips, the executives in your audience are much more likely to comprehend the innovation’s benefits. If they comprehend the benefits, they’re much more likely to support the innovation.

(If you’d like a copy of the Vair case study, just send me an e-mail. I’m happy to share it.)

Questions or Answers?

Question or answer?

Question or answer?

Which is more important: questions or answers?

Being a good systems thinker, I used to think the answer was obvious: answers are more important than questions. You’re given a problem, you pull it apart into its subsystems, you analyze them, and you develop solutions.

But what if you’re analyzing the wrong problem?

I thought about this yesterday when I read a profile of Alejandro Aravena, the Chilean architect who just won the Pritzker Prize. Aravena and his colleagues – as you might imagine – develop some very creative ideas. They do so by focusing on questions rather than answers. (Aravena’s building at the Universidad Católica de Chile is pictured).

In 2010, for instance, Aravena’s firm, Elemental, was selected to help rebuild the city of Constitución after it was hit by an earthquake and tsunami. I would have thought that they would focus on the built environment – buildings, infrastructure, and so on. They’re architects, after all. Isn’t that what architects do?

But Aravena explains it differently:

“We asked the community to identify not the answer, but what was the question,” Mr. Aravena said. This, it turned out, was how to manage rainfall, so the firm designed a forest that could help prevent flooding.

Architects, then, designed a forest instead of a building. If they were thinking about answers rather than questions, they might have missed this altogether.

On a smaller scale, I had a similar experience early in my career when I worked for Solbourne Computer. We build very fast computers – in 1988, Electronics magazine named our high-end machine the computer of the year. Naturally, we positioned our messages around speed, advanced technology, and throughput.

But our early customers were actually buying something else. When we interviewed our first dozen customers, we found that they were all men, in their early thirties, and that they had recently been promoted to replace an executive who had been in place for many years. They bought our computers to mark the changeover from the old regime to the new regime. They were meeting a sociological need as much as a technical need.

When you go to a gas station to fill your car’s tank, you may imagine that you’re buying gasoline. But, as the marketing guru Ted Levitt pointed out long ago, you’re really buying the right to continue driving your car. It’s a different question and a broader perspective and may well lead you to more creative ways to continue driving.

More recently, another marketing guru, Daniel Pink, wrote that products and services “… are far more valuable when your prospect is mistaken, confused or completely clueless about their true problem.” So often our market research focuses on simple questions about obvious problems. The classic question is, “What keeps you up at night?” We identify an obvious problem and then propose a solution. Meanwhile, our competitors are identifying the same problem and proposing their solutions. We’re locked into the same problem space.

But if we step back, look around, dig a little deeper, observe more creatively, and ask non-obvious questions, we may find that the customer actually needs something completely different. Different than what they imagined – or we imagined or our competitors imagined. They may, in fact, need a forest not a building.

Equal Opportunity Idea Generation

Pick a card.

Pick a card.

At the beginning of each term, I give my critical thinking students a set of six cards. Each card has a number on it – one through six. (I also add my logo to do a little low-cost branding).

Students bring the cards to each class. I use them to guide discussions about topics where there is no obvious right answer. I ask a question with up to six alternative answers. I then ask the students to select the “best” answers and — when I give a signal – to hold up the number that represents their choice.

The trick is to do it simultaneously. Then I say something like, “Jamal, you’re holding up number six and Carmen is holding up number three. Let’s discuss why you’ve chosen different answers.” This often leads to some very robust discussions. Nobody hides and everyone knows that they may be asked to explain their opinion. If you mix in a little humor, it can also be a lot of fun.

I call these equal opportunity discussions. In most discussions, I find that whoever speaks first exerts undue influence on every subsequent speaker. It’s a phenomenon called social convergence and it’s impossible to eliminate unless you have everyone “speak” simultaneously. With simultaneous responses, everyone has an equal opportunity to get their idea across.

I first used this system during the merger of Lawson, an American software company, and Intentia, a Swedish software company. Both companies had about 2,000 employees. They also had different national traditions and corporate cultures. Every employee had an opinion about what the new company culture should be. The question for managers (including me) was: how do we gather, weigh, and merge these opinions?

We decided to use equal opportunity discussions focused on how the new culture would respond to different behaviors. For instance, in a meeting with up to a dozen employees, we might ask a simple question: “Klaus is always late to staff meetings. In our new company culture, what do you think Klaus’ manager should do?” We included a list of up to six answers. We asked the employees to consider the answers and then hold up her or his chosen answer simultaneously. This produced some very spirited discussions.

We kept track of how different groups answered each question. Did marketers answer the questions differently than, say, engineers? How about executives versus individual contributors? It took time but it was very valuable information that ultimately led to a coherent new culture.

A similar technique works well in promoting innovation. The first step is to gather a wide range of diverse ideas. Letting one person speak first (especially the boss) will reduce diversity. When I ran staff meetings focused on creating new ideas, I would frame up the issues several days in advance. I asked each participant to consider the issue and develop his or her best ideas. I then asked them to write down their ideas – no more than a paragraph or two. When we got to the meeting, I asked everyone to push their written descriptions to the middle of the table. I then gathered them up, shuffled them a bit, and started the discussion.

I thought about these processes when I spotted a recent article in Harvard Business Review titled, “People Offer Better Ideas When They Can’t See What Others Suggest.” The context is slightly different – the authors are looking at programs like Dell’s Idea Storm site or the My Starbucks Idea site.

Though the context is different, the process is essentially the same. The authors write that, “The trick is to avoid clustering, where the same people have the same experiences.” They also created anti-clustering software that ensures “…that no participants share the same body of ideas and the same neighbors as anyone else.”

I’m sure the anti-clustering software is more sophisticated than my cards. But if you want to get off to a quick start, the cards work pretty well. Just make sure that every idea has an equal opportunity to “win”.

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