Strategy. Innovation. Brand.

innovation

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 Diversity

I should have studied liberal arts.

Do you have an MBA? So do most of the people I work with at my client organizations. One of the ways I add value is merely by the fact that I don’t have an MBA.

It’s not that having an MBA is a bad thing. It’s that so many companies are run by people educated in the same way — they all have MBAs. The fact that I don’t have an MBA doesn’t mean that I think better than they do. But I do think differently. Sometimes that creates problems. Oftentimes, it creates opportunity.

If all your employees think alike, then you limit your opportunity to be creative. Creativity comes from connections. By connecting concepts or ideas in different ways, you can create something entirely new. This works at an individual level as well as an organizational level. If you read only things that you agree with, you merely reinforce existing connections. If you read things that you disagree with, you’ll create new connections. That’s good for your mental health. It’s also good for your creativity.

At the organizational level, connecting new concepts can lead to important innovations. Indeed, the ability to innovate is the strongest argument I know for diversity in the workforce. If you bring together people with different backgrounds and help them form teams, interesting things start to happen.

In this sense, “diversity” includes ethnic, economic, and cultural diversity. It especially includes academic diversity. As a leader, you want your engineers, say, to mix and mingle with your humanities graduates. Perhaps your lit majors could improve your MBAs’ communication skills. Perhaps your philosophers can help you see things in an entirely new light. In today’s world, innovation requires that you bring together insights from multiple disciplines to “mash up” ideas and create new ways of seeing and doing.

Most companies keep data on ethnic diversity within their workforce. However, they don’t usually keep statistics on the different academic specialties represented among their employees. You may well have enough MBAs. But do you have enough linguists? Philosophers? Sociologists? Anthropologists? Artists? If not, it’s time to start recruiting. The result could well be a healthier, more innovative company.

 

Innovation: What’s Your Risk Profile?

Need a spreadsheet?

Quick. What’s your risk profile? Do you like to take risks in business? If you do, you’ll probably seek and consume information in very different ways than your colleagues who are more risk averse. That can be a huge obstacle to innovation.

I often ask my clients to self-assess their appetite for risk on a scale of 1 to 6. People who are very averse to risk give themselves a “1”. People who love taking risks give themselves a “6”. In most cases, my clients distribute themselves along a more-or-less normal curve — a few 1s and 6s and many more 3s and 4s. To innovate successfully, you’ll need people in every category. If you have only 1s, you’ll never venture anything. If you have only 6s, you’ll take far too many risks for your own good.

The issue is that people with different risk profiles also have different information needs. That can stifle communication and that, in turn, can stifle innovation. People who are generally risk averse (in a business sense), want much more information than those who are risk oriented. People who are 1s often want very detailed business cases before making a decision. They want to identify every possible risk in the proposed venture and have contingency plans ready. They also like detailed spreadsheets; lots of quantitative data makes them feel comfortable.

Risk-oriented people, on the other hand, are quite comfortable with less information. They believe that it’s impossible to predict the future. A detailed spreadsheet is no better at predicting the future than a rough-and-ready guess. Further, you can’t control every variable. So, why bother creating detailed spreadsheets and exhaustive business plans? You have to dive in and experiment to learn what will work and what won’t.

To innovate successfully, you need both risk-oriented and risk-averse individuals. They see the world differently and that’s good. Your risk-oriented colleagues can help you spot new opportunities. Your risk-averse colleagues can help you avoid stupid mistakes. The trouble is that the two types of colleagues don’t know how to talk to each other effectively. They have different information needs that are very deeply ingrained and will probably never change. As a leader, you’ll need to step in and serve as an interpreter between the two groups. By doing so, you’ll hear both sides, get a balanced view, and pick those innovations that are most likely to work.

 

Innovation and the Installed Base

How could God create the entire universe in only six days? He didn’t have to worry about an installed base.

Need to upgrade to Universe 2.0?

It’s fairly easy to innovate technically when you don’t have customers. You can adapt new technologies or new ideas without fear of alienating current users. Once you have customers, you have to pay attention to their needs. That includes the ability to upgrade seamlessly from one generation to another. Your customers feel that they’ve paid you money for a long time so their needs should dominate your planning. That may mean that you have to slow down new releases of your product to help your installed base tag along.

Think about it this way: which company is more innovative: Apple or Microsoft? Most people would say that Apple is far more innovative. But which company takes better care of its installed base? By and large, Microsoft has. When Microsoft releases a new operating system, they actually test to determine if old applications will run on the new platform. Apple is much quicker to dump the old stuff to keep the new stuff coming. The latest example is the new plug for the iPhone 5. If and when I upgrade to the iPhone 5, I’ll obsolete half a dozen perfectly good cables that no longer fit. That’s irritating but it may well get me into new technologies that work better than the old.

So do innovation and good customer care always conflict with each other? Not necessarily. Your fundamental commitment to customers is not that you’ll help them to move from release to release. Your promise is actually simpler — that you’ll stay in business to continue to serve your customers. I’m a veteran of a number of companies that no longer exist. Our customers were totally out of luck — they got nothing. Much better to give your customers something new — even if it entails ripping out the old — than it is to give them nothing at all.

When is it acceptable to ship an innovation that disrupts your installed base? I think there are two answers: 1) When a new technology emerges that allows you to provide much better solutions at a lower cost. You need to hop to a new platform to take advantage of the change. I saw this happen in the transition from host-centric to client/server software. It’s happening again today with cloud computing and mobile platforms. 2) When a competitor is shipping a solution that will disrupt your relationship with your installed base. Better to disrupt your own base than to let someone else do it for you.

And, how do build innovative new solutions while also maintaining and developing your traditional, bread-and-butter products? It’s not easy. The best answer I’ve seen is the ambidextrous organization which you can read about here.

 

Better Communication Through Plumbing

Got an idea? We can help.

Want to improve communication in your organization? Reduce the number of bathrooms. Everybody needs to use the bathroom from time to time. With fewer bathrooms to choose from, people are more likely to bump into each other. When they do, they wind up communicating.

One of your goals is to get people to bump into each other (more or less literally) as often as possible. It’s particularly important to get people from different disciplines to mix and mingle. When they do, sparks of creativity start to fly. You can design (or re-design) your space to ensure that this happens. Instead of having a coffee pot in every corner of the building, have only one coffee service centrally located. Coffee is a people magnet. Be sure to have some tables nearby so people will have a place to chat while consuming their caffeine.

You can also randomize your offices. Instead of having engineers sit only with engineers and marketers sit only with marketers, mix them up a bit. Ensure that people from different disciplines get to know each other. It sparks new ideas and reduces the us-versus-them mentality.

What else can you do? Well, maybe you should encourage your employees to take up smoking. Watch the video to find out why.

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