Being the smart innovator (and businessperson) you are, you know it’s important to talk to customers. You also know it’s important to listen to them.
It’s also important to ignore your customers.
(Sometimes)
Customers will tell you what the problem is. If you stay curious and ask follow-up questions (Why? and Tell me more), they’ll tell you why it’s a problem and the root cause. You should definitely listen to this information.
Customers will also tell you how to fix the problem. You should definitely ignore this information.
To understand why, let me tell you a story.
Eye contact is a problem
Years ago, two friends and I took a day trip to Maine. It was late in Fall, and many lobster shacks dotting the coast were closed for the season. We found one still open and settled in for lunch.
Now, I’m a reasonably adventurous eater. I’ll try almost anything once (but not try fried tarantulas). However, I have one rule – I do not want to make eye contact with my food.
Knowing that lobsters are traditionally served with their heads still attached, I braced for the inevitable. As the waitress turned to me, I placed the same order as my friends but with a tiny special request. “I’ll have the lobster, but please remove its head.”
You know that scene in movies when the record scratches, the room falls silent, and everyone stops everything they’re doing to stare at the person who made an offending comment? Yeah, that’s precisely what happened when I asked for the head to be removed.
The waitress was horrified,” Why? That’s where all the best stuff is!”
“I don’t like making eye contact with my food,” I replied.
She pursed her lips, jotted down my request, and walked away.
A short time later, our lunch was served. My friends received their lobsters as God (or the chef) intended, head still attached. Then, with great fanfare, my lobster arrived.
Its head was still attached.
But we did not make eye contact.
Placed over the lobster’s eyes were two olives, connected by a broken toothpick and attached to the lobster’s “ears” by two more toothpicks.
The chef was offended by my request to remove the lobster’s head. But, because he understood why I wanted the head removed, he created a solution that would work for both of us – lobster-sized olive sunglasses.
Are you removing the head or making sunglasses?
Customers, like me, are experts in problems. We know what the problems are, why they’re problems, and what solutions work and what don’t. So, if you ask us what we want, we’ll give you the solution we know – remove the head.
Innovators, like you and the chef, are experts in solutions. You know what’s possible, see the trade-offs, and anticipate the consequences of various choices. You also take great pride in your work and expertise, so you’re not going to give someone a sub-par solution simply because they asked for it. You’re going to provide them with olive sunglasses.
Next time you talk to customers, stay curious, ask open-ended questions, ask follow-up questions, and build a deep understanding of their problems. Then ignore their ideas and suggestions. They’ll only stand in the way of your olive sunglasses.
Giant corporations need big innovations to move the needle
Entrepreneurs need big ideas to get attention
Investors need big returns to take risks
But innovation thrives in constraints.
And “Go Small” may be the biggest constraint out there.
Here are three stories about small innovations that created big value
Lollipops Reduce Violence
Closing time at the bars is never pretty. It can be downright dangerous. What starts as a few insults shouted back and forth between individuals or groups of friends can quickly devolve into brawls, assaults, and even murder.
Every year, dozens of cities and towns run experiments to find ways to decrease incidences of violence around bars and clubs:
Closing bars earlier
Keeping bars open 24/7
Training bouncers in crowd control tactics
Pre-positioning taxis
Better landscaping
And lollipops.
In 2001, various cities and towns in the UK began giving lollipops to people as they streamed out of pubs and clubs. The rationale varied:
“It’s hard to suck and fight at the same time.” – Leicester, 2001
“Research shows the sugar content helps to stabilise the behaviour of those who have consumed alcohol.” – West Oxfordshire, 2006
“[Offering food] can stop people shouting, make them less aggressive and prevent post-alcohol hunger” – Camden Town, 2010
It’s estimated that these efforts, which eventually expanded to include flip flops and cookies, cost “tens of thousands of pounds,” a drop in the bucket compared to the millions of pounds spent each year on police and medical resources to deal with the drunken behavior.
Waffle Maker Saves the Planet
Imagine throwing away 20 BILLION wax-coated bowls and plastic spoons every year.
Imagine that you could keep 12 BILLION of those out of the waste system by doing just one thing.
Giving up ice cream.
Would you do it?
Yeah, me neither.
This is why we should be very thankful to a Syrian waffle vendor at the 1904 St. Louis World’s Fair.
Even though ice cream cones were in use as early as the 19th century, it wasn’t until a chance encounter at the World’s Fair that they went mainstream. In the sweltering summer heat, ice cream was a popular treat for the 20 million people visiting the fair. So, it’s not surprising that vendors eventually ran out of serving bowls.
Luckily for us and the planet, one of those popular ice cream vendors was next to Ernest A. Hamwi and his very unpopular warm waffle stand. Seeing his fellow vendor’s plight, Ernest took one of his waffles, rolled it into a cone, and a tasty partnership was born.
Town Crier Out Shares Facebook
On Thursday, August 11, as thousands of tourists arrived in Provincetown eager to begin celebrating the Cape Cod town’s largest summer festival, the sewer system failed. Although only 356 of the town’s 1500 properties were affected, most of those affected were the restaurants, hotels, and businesses at the heart of the town’s tourist industry.
Naturally, officials took to social media to alert businesses and residents of the impact. In a Facebook post, restaurants were told to close, and residents were told they “must reduce water use, including dishwashing, laundry, showering, and only flush when absolutely necessary,”
Naturally, such restrictions created problems for businesses and residents alike. But what about the thousands of tourists just arriving who were not subscribers to Provincetown’s Facebook account?
The Town Crier
In 1864, Provincetown created the position of Town Crier as a way to spread news throughout the community quickly. Over time, as technology made spreading information easier and faster, the Town Crier became more of a tourist attraction, responsible for greeting visitors and promoting members of the Chamber of Commerce.
Until August 11, when the 22nd Town Crier was called back to duty.
“All is not well in Provincetown,” the Town Crier proclaimed as he stood in front of Town Hall dressed, as usual, in historical garb and swinging his heavy bell. As Thursday turned into Friday, the Town Crier issued updates, listing the re-opened restaurants and the areas where toilet flushing and showers were now allowed.
“Let us pray to the supreme architect of the universe that the system will have been rectified,” he pleaded. I’m sure town officials gave thanks to the supreme architect of the universe that their small investment in maintaining an old solution was, again, creating quite a lot of value for the town.
Size doesn’t matter
Innovation is something new that creates value, and, as innovators, we naturally want to create BIG value. Heck, we want to change the world!
It’s easy to forget that Small can have a big impact, whether physically small like lollipops, a small distance away like waffle and ice cream vendors, or only able to reach a small audience like the Town Crier.
So when you find yourself obsessing about size, just paraphrase Dr. Seuss, “An innovation’s an innovation, no matter how small!”
According to a 2018 survey by NPR and The Marist Poll, the most common New Year’s resolution is to exercise more. Not surprisingly, losing weight and eating a more healthy diet ranked third and further, respectively (“stop smoking” was #2, in case you’re curious).
Hitting the gym to drop weight and build muscle is a great habit to build, but don’t forget about the regular work needed to build other muscles.
Specifically, your innovation muscles.
Innovation mindsets, skills, and behaviors can be learned but if you don’t continuously use them, like muscles, they can weaken and atrophy. That’s why it’s important to create opportunities to flex them.
One of the tools I use with clients who are committed to building innovation as a capability, rather than scheduling it as an event, is QMWD – the Quarterly-Monthly-Weekly-Daily practices required to build and sustain innovation as a habit.
QUARTERLY
Leave the office and talk to at least 3 of your customers
It’s tempting to rely on survey results, research reports, and listening in on customer service calls as a means to understand what your customers truly think and feel. But there’s incredible (and unintended) bias in those results.
Take, for example, this story from former P&G CEO AG Lafley:
One very quick story; I will never forget this. We used to do annual research in the laundry detergent business, and every year consumers would rate the Tide powder cardboard package as excellent; excellent to shop; excellent for opening; excellent in use–on, on, on.
So, probably 27 or 30 years ago, I’m in basements in Tennessee, in Kentucky, doing loads of laundry with women, and after three or four or five of these one-on-one sessions, I’ve realized that not a single woman has opened a box of Tide with her hand. Why not? You’ll break your fingernails!
So, how did they open the box? They had nail files; they had screwdrivers; they had all kinds of things sitting down on the shelf over their washing machine, and yet they thought our package was excellent. And we thought our package was excellent because they were telling us our package was excellent. We had to see it and experience it.
Here’s the problem–consumers cannot really tell us what they want. They can tell you why they like it or why they don’t like it, but they cannot tell you what they want.
Schedule a day each quarter to get out of the office and meet your customers. Ask them what they like and what they don’t. More importantly, watch them use your products and then share what you heard and saw with your colleagues.
MONTHLY
Share with your team a mistake you made and what you learned from it
Silicon Valley mantras like “fail fast” and “fail often” make for great office décor but, let’s be honest, no one likes to fail and very few companies reward it.
Instead of repeating these slogans, reframe them to “learn fast and learn often” and role model the behavior by sharing what you learned from things you did that didn’t go as expected. You’ll build a culture of psychological safety, make smart risks acceptable, and increase your team’s resilience. All things required to innovate in a sustainable, repeatable, and predictable manner.
Do 1 thing just for the fun of it.
In the research that fed into their book, The Innovator’s DNA, professors Jeff Dyer, Hal Gregersen, and Clayton Christensen, found that the most common characteristic amongst the great innovators of our time was their ability to associate – “to make surprising connections across areas of knowledge, industries, even geographies” (page 41). Importantly, their associative thinking skills were fed by one or more “Discovery Skills” – questioning (asking “why,” “why not,” and “what if”), observing, experimenting, and networking.
Fuel your associative thinking ability by doing something NOT related to your job or other obligations. Do something simply because it interests you. You might be surprised where it takes you. After all, Steve Jobs studied calligraphy, meditation, and car design and used all of those experiences in his “day job.”
WEEKLY
Make 1 small change for 1 day
Innovation requires change and, if you’re an innovator, that’s the exciting part. But most people struggle with change, a fact that can be frustrating for change agents.
In order to lead people through change, you need to empathize with them and their struggles which is why you need to create regular moments of change in your work and life. One day each week, make a conscious change – sit on the other side of the conference room table, take a different route to the bathroom, use a black pen instead of a blue one. Even small changes like this can be a bit annoying and they’ll remind you that change isn’t always the fun adventure you think it is.
DAILY
Ask “How can we do this better?”
Innovation is something different that creates value. Which is good news because that means that all it takes to be an Innovator is to DO something DIFFERENT and create VALUE. The easiest way to do that is to find opportunities for improvement.
The next time you’re frustrated with or confused by a process, ask “how can we do this better?” Better can be more simply, faster, cheaper, or even in a way that is more enjoyable but, whatever it means, the answer will point the way to creating value for you, your team, and maybe even your company.
In closing…
Block time on your calendar for these quarterly, monthly, weekly, and daily habits. After all, the best reflection of your priorities are the things in your calendar. And, if you stick with this, you’ll be among the 8% who achieve their New Year’s goals.
Originally published on December 5, 2019 on Forbes.com
Congratulations! You’ve taken action to make innovation happen. You created an innovation team, you gave them all the Design Thinking, Lean Innovation, and Disruptive Innovation books and articles, and you left them alone to make sure that they aren’t infected by the corporate antibodies that plague those working on the day-to-day business.
But nothing is happening.
Or maybe something is happening but it’s not what you need or want.
You are frustrated.
Your team is frustrated.
This is not going well and if the team doesn’t turn things around, you’re shutting it all down. After all, you have a business that needs your attention and management and if you don’t keep your eye on that ball, there won’t be a future for the business.
I understand. I’ve been there. Lots of leaders have been there.
And you’re right, something does need to change.
YOU need to change.
As a leader in an organization, there are 3 thing YOU must do in order to have a chance at innovation success.
YOU need to do these things because only you have the organizational authority, influence, and power to make these decisions and support and defend the actions required to deliver on them. Note that I use the word “chance.” Doing these 3 things is not a guarantee of success but, I promise you, NOT doing them does guarantee failure.
Talk about what Innovation will enable, not just why it’s important
Your innovation team knows that innovation is important, they desperately want to do it, and they’re working hard on it. But they need direction and the rest of the organization needs to know why the team is doing what it’s doing and why you’re giving them the resources.
Doing this requires that you go beyond explaining why innovation is important. We all know that innovation is essential to an organization’s long-term success. We also know that we should eat 5 servings of vegetables a day and floss twice daily. Knowing that something is important isn’t the same as doing something that is important.
Instead you need to set the vision for what things will look like in the future, after the innovation has taken hold. You need to show everyone how things will be better in the future because of the changes being made today. You need to give everyone something to believe in and work towards.
Tennant T15 Floor Scrubber Operator Training
Consider Tennant, maker of the small bluish-green Zamboni like machines you see cleaning floors in office buildings and airports. They were founded in 1870 as a supplier of hardwood floors and invented floor scrubbers in the 1930s. For over 120 years, they worked to fulfill their mission “to become the preeminent company in residential floor maintenance equipment, floor coatings, and related products” and they enjoyed a nice steady business as a result.
Then, in 1999, Janet Dolan was named CEO, becoming the first non-family member to run the company. As a long-time member of the Board, Ms. Dolan knew the company well and she also knew that it was facing increasing competition and price pressure. So, with the support of the Board and her executive team, a year after she took the reigns, Ms. Dolan announced a new mission for Tennant: “To bring to market sustainable cleaning innovations that empower others to create a cleaner, safer, healthier world.”
That’s a pretty big change from floor maintenance, coatings, and related products.
And way more inspiring.
So what happened?
Revenue decreased from 2000 to 2001. Then it plateaued from 2001 to 2002. So far not so good, right?
In 2002, Tennant launched 2 new products — one that cleaned floors with 70% less water and 90% less detergent but resulted in significantly lower labor costs, and a carpet cleaning scrubber that used less water and detergent but which decreased drying time from 18 hours to 30 minutes.
Neither of these innovation would have been possible under the old mission because it defined Tennant as a company that made (and sold) “floor coatings, and related products.” But both were spot-on with the new one mission, one that defined the company as an enabler of a “cleaner, safer, healthier world.”
The result? A steady upward climb in revenue from approximately $400M in 2002 to $701M in 2008
Yes, Tennant did many other things (restructuring, altering their manufacturing process and supply chain) during that time period that also contributed to their growth. But you can’t cut your way to a nearly 10% CAGR. You innovate your way there. And Tennant’s new mission made that possible.*
Quantify what Innovation must deliver
“Money talks, bullsh*t walks.”
– Some guy in my 12th grade French class (I have no idea why this was said in the context of a French class but I do remember it better than most of the French I learned).
Yes, innovation is fun. But innovation for the purpose of having fun is a hobby. You’re innovating because you need to grow your business. So treat innovation like a business and give it a target.
LEGO Shop: “Mind the Gap” from TripAdvisor
That target is known as the Growth Gap.
The Growth Gap is a concept which, as far as I can tell, was introduced in Robert B. Tucker’s 2002 bookDriving Growth Through Innovation: How leading firms are transforming their future and is one of the most important and simple innovation tools I’ve seen used.
In fact, you’ve probably already calculated your Growth Gap. You just do’t know it. Yet.
Start with your future revenue goal (you probably set this during your annual strategic planning process as the goal for 3–5 years from now). Now subtract your current revenue. Then, subtract the expected revenue of everything else in your pipeline. What’s left is your Growth Gap, aka the amount of revenue that innovation (i.e. stuff you don’t yet have funded or in the pipeline) needs to deliver.
NOTE: there are far more precise and complicated ways to calculate the Growth Gap but this was is quick and will get you to an answer that is more right than wrong.
Several years ago, I worked with a global athletic company that was already well known for its innovations but which was trying to become more systematic in their efforts and more diligent about investing in Breakthrough and Disruptive innovation. The team and its C-Suite sponsors knew that additional investment was required to fund Breakthrough and Disruptive innovation but senior leaders were hesitant to allocate the cash.
So we calculated the growth gap.**
At the time, the company had $25B in revenue and the stated goal of growing to $50B in revenue in 7 years. According to their strategic plan, they had line of sight to an additional $15B in net revenue (new revenue from new launches less revenue losses from declining and discontinued products) resulting in an estimated $40B revenue in 7 years. From there, the math is pretty easy $50B promised minus $40B predicted equals $10B Growth Gap.
This means that management had to believe that they could create and scale 2 new Facebooks (based on Facebook’s revenue at the time) in the next 7 years.
With the need for innovation quantified, the coffers opened and innovation investment, activity, and results sky-rocketed.
Get involved in the work
Yes, you have a lot on your plate. No, that does not give you the right to delegate innovation.
If you have set a vision for what the business looks like as a result of innovation and you’ve quantified what innovation needs to deliver for your business then your innovation team IS a business and you need to be involved
But you do have a lot on your plate.
And you’re probably already involved in innovation governance processes like sitting on an Innovation Council, reviewing learnings from innovation projects, making small investments to get to the next learning stage, asking different questions in innovation meetings than you do in your regular business review meetings, and celebrating “failures” instead of brushing them under the rug.
Good for you! (no really, I mean that).
But are you getting your hands dirty? Are you leaving the office to see innovation at work? Are you going into the market to talk to the people you want to serve?
How much of your time are you spending on innovation? If, like the executives in the above example, you expect 26% of your future revenue to come from innovation, are you spending 25% of your time with the innovation team? 10% (i.e. 4 hours per week or 2 days per month?) 2.5% (1 hour per week or a half-day a month)?
Spending time outside of meetings and inside the work of innovation can make all the difference. In one case, it made a nearly $1B+ difference
Liz Martin/ The Gazette
I started my career at P&G working on a product code-named DD-1.
In my first year at P&G, we launched DD-1 into test markets in Cedar Rapids, Iowa and Pittsfield, Massachusetts. And those test markets went extremely well. So well in fact, that we experienced product shortages and the emergence of a strange gray-market of DD-1 products.
At the same time, we were working with IRI to run DD-1 through a BASES test, a standard modeling exercise that sought to forecast initial and on-going revenue for new products and a standard step in the process for securing launch approval.
Since the test markets were going so well, we were confident that the BASES results would be equally strong and moved forward with putting together a launch recommendation for the new brand. We even scheduled a meeting with the CEO and COO to get their signatures on the launch approval document
Then the BASES results came back. And they were bad. Historically bad. Perhaps the worst results in the history of P&G.
But we were not deterred. We had the real-world results from our test markets and we confidently and optimistically plowed ahead.
DD-1’s leadership team presented the launch reco, including BASES results, to the CEO and COO. They explained that we did not believe that the BASES results were accurate because they used the re-purchase cycle of canned aerosol dusting sprays as an analog to the re-purchase cycle of DD-1 cloths and data from the test market (real world data! real usage data!) told a very different story. They asked for approval to launch.
The CEO said no.
The CEO believed the BASES results. BASES had always been accurate for all previous launches (keep in mind 99% of previous launches were incremental improvements to existing brands). The launch was cancelled.
Then, the COO spoke up. He believed the test market results and agreed that there was a flaw in the BASES methodology. He believed DD-1 should launch. He would take responsibility for its launch and its results.
The CEO acquiesced.
Swiffer was launched in 1999
Today, it is closing in on the coveted $1B Brand status.
Why, when presented with the same launch recommendation, did the CEO and COO make two different decisions? The COO spent a few hours one day in Cedar Rapids Iowa. He saw the test market results playing out live, he spoke to the people who drove from store to store to find refill cloths. He experienced the innovation instead of just reading about it.
So, my corporate executive friend, do not give up. Step up and lead (yes, even more than you have). Paint the picture of how innovation will shape your business’ future. Quantify what it must deliver so that you can make informed (and realistic) investment decisions. Get your hands dirty because even a few hours of working in innovation, alongside your team, can make all the difference.
When a business fails to innovate it is because executives fail to lead.
It is not because there is a lack of ideas
It is not because there aren’t enough resources
It is not because the market doesn’t support it.
It is because executives lack the courage to lead so they focus on being a “great” manager.
Now, before you get all upset about that truth bomb, let’s get clear on what two of the words used above — innovation and manager — mean
Innovation — Something different that creates value. Yes, it could be a new to the world widget. It could also be an improvement to an internal process. Trust me, employees have lots of ideas on how to improve things and many of those ideas require no resources. But they don’t speak up because they don’t see leaders, only managers.
Manager — Leaders set a vision and inspire people to follow them. Managers enforce the status quo and monitor and measure people’s performance. Leaders encourage debate, growth, and ambition. Managers demand compliance and repetition in pursuit of perfection. Leaders encourage curiosity and continuous improvement. Managers would rather live with a problem they understand than a solution they don’t. Organizations are filled with managers enjoying long and “successful” careers.
“Managers would rather live with a problem they understand than with a solution they don’t.” — John Bolton (my dad, not the ambassador)
One of the hazards of a career spent in innovation, as an intrapreneur and as a consultant, is that I’ve lost count of the number of innovation efforts I’ve been a part of. But I can tell you that none of the failures were due to a bad idea or a lack of resources or the absence of market opportunity. They were due to executives who didn’t have time to engage in and understand the process, who chose to allocate all resources to the core business, or who didn’t have the patience to invest in something now only to have their successor reap the rewards.
But I have worked with a few precious leaders who achieved great success.
Here’s what we can learn from the leaders.
Integrate leadership and innovation
One of my clients, the CHRO of a global pharma company, repeatedly points out, “every organization is perfectly designed to achieve the results it gets. If you don’t like the results, change the organization’s design.” Given that most organizations keep their innovation team separate from the group within HR that focuses on leadership development, we shouldn’t be surprised that true leadership is often absent in innovation.
“Every organization is perfectly designed to achieve the results it gets. If you don’t like the results, change the organization’s design.” — CHRO of a global pharma co.
We also shouldn’t be surprised that the CHRO mentioned above designed a “Leadership & Innovation” function within her company. She and her C-suite peers recognize that these two things are inextricably linked and thus they must organize to encourage and enable both. They’ve put top talent in place in the organization and brought in practitioners from other companies to encourage diverse thinking and approaches. And they’ve put innovation and leadership goals on everyone’s development plans because you don’t become a world-class innovator through wishes and words.
Immediately be of service
The most successful innovation organization that I’ve ever helped build started with a grand vision and a humble task list. The vision was to be a “moonshot factory” in which new business models could be created, incubated, and launched without fear of falling victim to the tyranny of the business’ daily demands. The humble task list for the first year was to assemble and monitor the company’s innovation portfolio — the IP, projects, and products in each silo that were drawing funds from the corporate innovation budget.
Portfolio management is not glamorous work and it’s even harder when it means shining a light on decisions and activities that have thrived in the dark. But the work immediately created value for the CEO, providing evidence that the company really was spending 95% of its innovation resources on incremental improvements and less than 5% on projects that would redefine the company and the industry.
With the CEO now endorsing the existence of the group, they had the license to expand their scope and start helping select innovation teams. Once they proved helpful to leaders of those teams, they could expand a bit more into establishing their own projects. Now, 7 years later, the organization team employs 200+ people and has launched or piloted nearly a dozen new businesses.
Help people break the right rules
I’m all for “ask forgiveness, not permission” but the fact is that some rules cannot and should not be broken. Some of the unbreakable rules are obvious, like laws and government regulations, but some aren’t. That’s where leaders come in.
When I was in brand management at P&G, leading the launch of Swiffer WetJet, I broke a lot of rules. I made sure to never surprise my boss and even asked for his input on which ones to break and how to break them.
Sometimes he would tell me how to break the rule, sometimes he would tell me to break it and he would cover me, and sometimes he would tell me that if I broke the rule I was on my own. He trusted me to never surprise him and to always make smart choices and I trusted him to have my back when he said he would.
You have a choice.
You can be a leader or you can be a manager.
Being a manger is safer and easier. You can have a very long and successful career just being a manager.
Being a leader can feel risky and difficult. But it’s the only way to to inspire and impact others and to drive the innovation and change that is so desperately needed.
