Strategy. Innovation. Brand.

business innovation

Branding and Archetypes

As you develop your company’s brand, how do you determine what “personality” you should project? How do you know where your brand fits relative to other brands in the market? I always recommend that you do as much market research as you can. I also recommend that you study the archetypal systems developed by Carol Pearson (whose website is here).

Pearson is a Jungian psychologist more than a marketing maven. She has developed a set of archetypes that help people understand how to use their inner resources to enrich their lives. Fortunately for us marketing types, these archetypes can also be applied to companies and organizations. They can help you understand how you fit into a broader ecosystem and how to convey your message most effectively.

When I worked at Lawson Software, we used the simplified diagram that you see here. The diagram includes 12 basic archetypes with a company to illustrate each one.

The circle helps you understand how the archetypes fit together. For instance, note the word “Order” at the top of the circle and the word “Change” at the bottom. Simply put, the companies on the top half of the circle want to maintain the existing order, the current market structure. By comparison, the companies on the bottom half might be described as “upstarts”. They want to change — or overthrow — the current market structure.

The left and right halves of the circle also have much to tell us. The archetypes on the left side are group-oriented. Those on the right side are more self-focused. The simplest explanation is that those companies on the left of the circle focus primarily on their external constituencies. Those on the right focus more attention on internal processes and procedures.

At Lawson, we quickly decided that we were on the bottom half of the circle. We weren’t the market leaders, we didn’t dominate the segment — we needed to shake things up to find our place in the sun. Similarly, we decided that we were on the left side of the circle. We were market oriented and our mission was to make our customers stronger. In other words, we were externally focused.

So, we were on the lower left segment of the circle. We had three archetypes to choose from: 1) Jester, like Disney; 2) Outlaw, like Virgin; 3) Magician, like Apple. We then proceeded by elimination. We were a B2B company and just didn’t have the magical chops of Apple. Similarly, we weren’t a jester like Disney. Indeed, we were probably too serious.

That left us at “Outlaw”. We never really liked that label but ultimately we decided that’s who we were. (We described ourselves as “disrupters” rather than as “outlaws” but, really, what’s the difference?) To succeed, we needed to break some rules. We needed to be different and shake things up. It helped that we had a plain-spoken and charismatic CEO who was not unlike Richard Branson.

Choosing the outlaw/disrupter path almost immediately led us to use a cartoon character — very different than what you would expect from, say Oracle or SAP. With help from Fiftyeight, a very creative agency in Germany, we developed the Lars Lawson character as well as Sepp (for SAP) and ElCaro (Oracle spelled backwards). We then launched a series of video adventures on YouTube that typically garnered over a million views. (You can see the most popular videos here and here).

Did it work? You betcha. We grew faster than our segment and gained visibility globally. Bottom line: whether you’re a person or a company, it helps to know who you are and where you fit.

You can find Carol Pearson’s books here.

 

 

Creativity in Five Steps

Just five more steps.

How does creativity happen? Is there a pattern — more or less standard — that we can repeat? Is there a process that can lead us from ordinary beginnings to extraordinary ends? Mihaly Csikszentmihalyi — while not guarateeing results — writes that creativity typically evolves through five stages.

The first stage is preparation. Basically, you need to know the rules before you break them. Thomas Kuhn writes that scientific paradigms reflect a basic consensus of how the world operates. Prior to Copernicus, the astronomical paradigm held that the earth was the center of the universe. Before Copernicus could change the paradigm, he had to immerse himself in it. Only then could he make the observations that changed the paradigm.

The second phase is incubation, “… during which ideas churn around below the threshold of consciousness.” This is when I like to go for a walk. I like to lay things aside, clear my head, and let my mind wander. It’s a haphazard process — sometimes nothing happens. Sometimes I simply forget what I was thinking about. Other times, however, something bubbles up that’s worth capturing. (One of the reasons I write this blog is to double back on my own thinking, recall what I wrote months ago, and perhaps make connections I would otherwise miss).

Third, is the insight — the Aha moment. As we saw in the article on sleepiness and creativity (click here), focusing intently on the problem at hand may actually inhibit the Aha experience. When you focus, you block out random thoughts and stray ideas. But it’s those very thoughts and ideas that may produce the insight. When you’re tired — or when you can induce your mind to wander — those stray thoughts are not blocked out and can help you see things more creatively.

Fourth is evaluation, “…when the person must decide whether the insight is valuable and worth pursuing.” This is a difficult step. You think you’ve had a brilliant flash of insight … you start dreaming of a trip to Stockholm to accept a Nobel Prize. On the other hand, maybe it’s just a crackpot idea that your colleagues will laugh at. A thorough understanding of the current paradigm will help. If you’re a master of your discipline, you’ll have a much better idea of which ideas are worth pursuing and which are just goofy.

The fifth step is elaboration. You develop the idea, conduct the research, test your hypotheses, and present your conclusions to your colleagues — who may just rip it apart. As Csikszentmihalyi notes, “This is what Edison was referring to when he said that creativity consists of 1 percent inspiration and 99 percent perspiration.”

Does the five-step process always produce creative innovations? No, not at all. But, if your purpose is to create new ideas, products, and services you should always be cognizant of where you are in the process. Following the process doesn’t guarantee success. But not following it virtually guarantees failure.

You can find Mihaly Csikszentmihalyi’s book here. Thomas Kuhn’s book is here.

Innovation: Making the Connection

Anybody want to connect?

Making connections is the basis of creativity and innovation. It’s very rare that somebody comes up with a full-blown idea on their own. Instead, they master a domain and then extend it. They learn a paradigm and then change it. They make the connection between this idea and that one. They put two and two together.

So, how do you actually make connections? I think of it as a three-level problem. First, we make new connections within our own brains. Second, we connect with other people who are more or less like us. Third, we need to expand our horizons and connect with people who aren’t like us. Here are some practical tips for each level.

In our own brains — as numerous authors have pointed out, the brain is plastic. It can change itself and enrich itself even after it stops growing. Can we teach our brains to make new connections? You betcha:

  • Read things (or watch things) that you disagree with. If you only read authors who agree with your political or philosophical bent, you’re only reinforcing existing connections. Reading authors you disagree with will help you establish new connections.
  • Use you non-dominant hand more often — connect to your “other” side.
  • Study a foreign language — we think with words. Learn some new words and you’ll learn to think differently.
  • Play games that exercise your brain — try bridge or crossword puzzles or sudoku. They all require you to see things differently and remember things accurately.

Other people like us — let’s take the context of a company’s headquarters building. How do you build connections between employees? We’re all familiar with team-building exercises. Let’s look at a few less obvious ways to connect:

  • Reduce the number of coffee stations — get people to congregate at central locations. As they bump into each other, they’ll talk to each other, too.
  • Reduce the number of bathrooms — same idea, get people to congregate in central locations.
  • Design physical spaces that get people to carom off each other — look at the old Bell Labs architecture. Long, narrow hallways with offices arrayed along them. Step out of your office and you’re on a highway full of people. It’s hard not to bump into somebody.
  • Book clubs — sponsor a book of the month club for all employees. Hint: don’t just do business books. Range farther afield into history, sociology, fiction, and so on.

Other people not like us — who is not like us? Well, if I’m in the accounting department, then sales people are not like me. Making connections with sales people might just lead to great new ideas. I see a lot of team building within departments (a team retreat for the marketing department, for instance) but not so much between departments. Here are a few ideas:

  • Random seating — why is it important for accountants to sit with accountants and engineers to sit with engineers? Randomize things so that people sit by people who are different.
  • Onboarding programs — help new employees make contacts across the company; not just in their own department. Early connections last a long time.
  • Team building with other departments — emphasize collaboration rather than competitions. Form coss-departmental teams or go on retreats together. Get people to know each other.
  • Travel more — face-to-face meetings are the best way to get to know people, especially people who are different from you.
  • Connect with customers — develop programs that require your employees to work with your customers. Make the effort to bridge the gap.

 

Innovation and the City

I’m looking for a connection.

Let’s say that the city of Groverton has 100,000 residents and produces X number of innovations per year. Down the road, the city of Pecaville has 1,000,000 residents. Since Pecaville has ten times more residents than Groverton, it should produce 10X innovations per year, correct?

Actually, no. Other things being equal, Pecaville should produce far more than 10X innovations. In predicting innovation capacity, it’s not the number of people (or nodes) that counts, it’s the number of connections. The million residents of Pecaville have more than ten times the connection opportunities of the residents of sleepy little Groverton. Therefore, they should produce much more than ten times the number of innovations.

In Where Good Ideas Come From, Steven Johnson makes the point that connections are the fundamental unit of innovation. The more connections you can make, the more likely you are to create good ideas. Scale doesn’t matter — more connections are better at a very small scale or a very large scale. This is where cities come in. In terms of innovation, larger cities have multiple advantage over smaller cities, including:

  • There are more “spare parts” lying around — Johnson points out that most new ideas are created by combining — or connecting — existing ideas. Existing ideas are “spare parts” that an enterprising “mechanic” can assemble in new ways. (In an earlier post, I referred to this as mashup thinking. Click here.) Cities have more of everything, including more spare parts to fool around with.
  • More information spillover — I know a lot about information science. If I keep it to myself, it doesn’t do a lot of good. If I share it with, say some sociologists, we might just come up with something useful. My information spills over to them and vice versa.  In Johnson’s terms, the information I share becomes spare parts that the sociologists can plug into their framework. The question is: how likely am I to meet up with a bunch of sociologists? It’s much more likely in a big city than a small town.
  • Not only are there more connections, the connections are more varied — if I mainly talk to people who are like me, the chances of something innovative happening are fairly low. It’s when I talk across boundaries — to people who aren’t like me — that interesting ideas begin to emerge. It may happen when I bump into a random sect of sociologists. But if it doesn’t happen then, well… maybe it will happen when I encounter an enclave of entomologists. Or maybe I’ll bump into a bevy of brewers who need to know about information science. In a big city, I’m likely to interact with many more disciplines, opinions, experts, and enthusiasts than I am in a small town.

Does this work in real life? Johnson provides some very interesting anecdotes. More recently, last Friday’s New York Times had an article (click here) on manufacturing and innovation. The article argues that more innovation happens when designers are close to the manufacturing floor. Why? Because of information spillover. Researchers claim that offshore manufacturing reduces our ability to innovate precisely because it reduces information spillover. Connectivity seems to work on the manufacturing floor as much as it does in big cities. Scale doesn’t matter. Bottom line: if you want to be more innovative, get connected.

 

Change Management: The Sponsorship Cascade

We’re cascading the message to you.

Remember the ice cream theory of communication? (Click here). It’s a cascade of information flowing step-by-step to the target you want to influence. Say that you want to influence the trade press. You know that reporters will want to know what analysts think, so you brief analysts before you talk to reporters. Analysts will want to now what customers think, so you brief customers before analysts. And so on.

The ice cream theory also works with internal communications — especially when big changes are afoot. When an organization needs to launch big changes, it often puts the CEO on a video broadcast to all employees. Everybody hears it at the same time. What’s wrong with that? Well, frankly … nobody trusts the CEO. It’s not that the CEO is a bad person; it’s just that most employees don’t know him or her. Without a personal relationship, it’s hard to know whom to trust. It’s like sending a press release to a reporter without first preparing the rest of the ice cream cone. The reporter needs further confirmation. So do your employees.

Bain & Company develops this concept in two parts: 1) the sponsorship spine; 2) the communication cascade. The sponsorship spine is very similar to the ice cream cone. Ask yourself two questions: Who are we trying to influence? Whom do they trust? Let’s say you’re trying to influence Department Z. Whom do they trust? Well … it’s Mary, a long-term employee who is widely respected for her experience and wisdom. Mary may or may not be Department Z’s manager. Then ask another question: whom does Mary trust? Let’s say it’s Inga. Then, whom does Inga trust? Let’s say it’s Grover. Keep asking the whom-do-they-trust question until you’ve reached the executive suites. You’ve now established the sponsorship spine.

Once you’ve identified the spine, you can start the cascade. The key ideas are to start from the top, speak to people who know you and trust you, speak to them personally in face-to-face settings, and always invite feedback (and listen carefully to it). If you need to make adjustments based on the feedback, then do so. Then ask the people you’ve spoken with to cascade the message down one level. Repeat the process throughout the organization. Ultimately, everybody in the organization hears the message personally from someone they trust.

And what about the CEO? He or she can still play a role. My advice is that the CEO should speak after the cascade is complete. The CEO confirms and reinforces the message, but doesn’t introduce it. People hear the message from a trusted source and then have it verified by someone in authority. That reinforces the sponsor’s trustworthiness and speaks to both our emotional and our logical sides. That, in turn, helps the message sink in and prepares us for action.

You can find the full article from Bain & Company by clicking here.

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