Part 1 was all about the experience of working in Corporate Innovation so, naturally, Part 2 has to be about one of the biggest areas where time in a said career is spent: meetings.
After nearly pulling/spraining/breaking an ankle/wrist/elbow/shoulder/knee trying to navigate “The Fact of the Matter” (aka experiencing a career in innovation), I looked forward to the safety of the next installation.
Instead I walked into “The Differential Room”, aka every meeting a corporate innovator has to endure captured in a series of chalkboards.
The first team meeting
“Point Point Line” (2015) from “The Differential Room” (2018) by William Forsythe
Kinda weird, kinda fun.
Just like your first meeting as a member of the Innovation team.
This is the moment when you realize you’re in a very different world. Instead of working on things that exist, that can be touched or experienced, that are known and explainable, you are now in an abstract and intangible world that is relying on you to define it, make it tangible, and explain it.
You’ve been given tools (fingers that make “points”) like customer research, access to people in the company, maybe even a bit of money and you’re expected to connect them together to something (a line). It’s up to you what form it takes, whether it is a product, a service, a process (e.g. how long the line is, whether it’s vertical or horizontal or diagonal).
You find that it’s rather fun to play around with options, to imagine what’s possible and, eventually, you actually begin to see what you’re creating.
People walk by and give you strange looks. Some stop to ask what you’re doing. You respond, “I’d make a business (line)! See! Isn’t it cool?” And they back away slowly, shake their heads, and return to their business.
Meeting with the Innovation Team Leader
It’s been fun designing the business (line) but you can’t stay there forever. It’s time to move on, to go deeper into the process.
It’s time to meet with your boss.
“Standing on One Leg (1st Act)” (2018) from “The Differential Room” (2018) by William Forsythe
You know you have to be a bit more buttoned up and that you have to show her the option that you think is best (not all the lines you made, and tested, and discarded). So you prepare a presentation, excited to talk about lines
Yes, the meeting feels a bit like a performance, but that’s what meetings are. You’re surprised that, after presenting your business, your boss tells you that in addition to working on your business (line), you need to talk to this person in finance (stand on one leg), that person in legal (raise the heel of the standing foot), and these 3 people in supply chain (hop) AND do this all on the same deadline with no extra funding (not expressing exhaustion) BUT don’t let anyone know what you’re doing because that will slow you down (not…drawing any attention to yourself).
The Innovation Council Meeting
You’re now exhausted from hopping but you’ve successfully concealed that exhaustion and you can still make a line so it’s time to move deeper into the process and move one more rung up the ladder.
You and your boss prepare another presentation and you go to meet the Innovation Council — 5 people all one-level up from your boss and not involved in the team’s day to day work but definitely interested, somewhat supportive, and with budget to keep funding the work.
“Starting at Any Corner” (2018) from “The Differential Room” (2018) by William Forsythe
More of a performance than the last meeting but, again, to be expected.
For some reason, they think your business (line) should be an app-based service (bench) that bolsters the revenue of an existing business instead of being a new source of revenue. They ask you to prototype the app (walk around the bench), share the prototype with the existing business team (walk alternately backwards and forwards), revise the prototype based on the existing business team’s feedback (complete turn alternately left or right), and model out a 5 year NPV (alternately accelerating or decelerating).
You should have known there would be numbers involved.
The C-Suite Meeting
It took you several attempts to complete the wishes of the innovation council and took much longer than you thought. Your business idea (line) is a distant memory, you now have an app-based service (bench) that seems far more complicated than it needs to be but makes the existing business team happy, and a financial model that, if you’re honest, has great numbers because you used Goal Seek.
Time to move on, right to the end of the installation and the top of the organization!
“Without the Use of the Arms” (2018) from “The Differential Room” (2018) by William Forsythe
Before you could even start your presentation (performance), the questions and feedback started coming at you.
Some of the requests were understandable (lie flat on your back for thirteen counts, sit upright in thirteen counts) but then they slashed your budget (without the use of arms) while still expecting you to do what they asked.
Then they asked if you could launch in 2 months instead of 12 months (increase the angle of the leg to torso to one hundred eighty degrees) and get to $500M revenue in 12 months (keeping the elbows by the ribs, move the hands under the shoulders counting aloud to thirteen).
At some point you stopped listening because it all sounded like nonsense. What they were asking for was impossible.
You went in with an app-based service (bench) that everyone liked and looked good on paper and now you have…..what?
And BTW, the customer research (points) say that people want the business you designed 9 months ago (line)!
The “Planning for Next Year” Meeting
You’ve given up trying to understand, let alone act on, the last meeting. But you are no quitter. You carry on to the next installation. To the next meeting, the one in which the team is planning for next year, requesting the resources it will need to move faster and build bigger businesses.
“Towards the Diagnostic Gaze” (2013) by William Forsythe
“Looks like next year is going to be a down year for the company so they really need us to step up, do more, and generate at least $100M revenue. That said, they also have to cut our budget 75% and our team size in half.”
FML
In Summary…
To be fair, not all companies are like this. But, to be honest, I’ve had 6 conversations THIS WEEK that were some variation of this. Conversations with clients in VERY different industries and at VERY different companies that all said almost the same thing:
It is really really hard to do something new or different in a big company. It’s also really important to try but I am frustrated and exhausted and I’m starting to wonder it’s worth it. Or if it’s even possible.
I know that it pains them to say that. It pains me to hear it.
Making innovation happen in large organizations is about more than putting in place processes, structures, and KPIs (all necessary, but not sufficient, for success).
It’s about leaders learning how to think, act, and react in ways that are different from what is usually required when managing the existing business.
It requires a level of optimism, resilience, and belief in purpose that can be difficult for people to sustain in the face of ever more constrained resources, shorter timelines, and waning organizational patience.
So, when our belief wavers we do the only things we can: we share our experiences with others in similar situations, laugh about the nonsense, and take a deep breath or a small rest before we continue.
After all, the next room was filled with eighty hanging swinging pendulums that we have to dodge to continue through the exhibit.
Have you ever had that eery feeling of some secret you’ve been keeping being subtly exposed by someone or something that has absolutely no way of knowing it? Have you ever had a conversation with someone, or read something, or seen something, and thought to yourself, “How do they know?”
I had that feeling a few months ago at the Institute of Contemporary Art (ICA) in Boston.
And it made me laugh. Mostly so I wouldn’t cry.
A Bit of Background
The exhibit William Forsythe: Choreographic Objects is “the first comprehensive American exhibition of performative objects, video installations, and interactive sculptures of the internationally celebrated choreographer William Forsythe.”
For the uninitiated (me), William Forsythe is a famous choreographer who “redefine(d) classical ballet” through his unique approach to “choreography, staging, lighting, and dance analysis.” Since the early 1990s, he’s also been developing art installations that are designed to “stimulate movement from visitors.”
This all sounds well and good and like a fun exhibit, and I needed to find something to do with my dad while he was in town, so off we went!
Welcome to the Jungle
William Forsythe, The Fact of The Matter, 2009
The second piece in the exhibit is Forsythe’s The Fact of the Matter — essentially a large room with hundreds of rings suspended from the ceiling by straps of various lengths, and accompanied by instructions to move from one end to the other using only the rings. This is the piece’s first showing in the US for (obvious) liability reasons.
Dad and I, overly confident in our physical fitness, decided that it would be a good idea to give it a try, and joined the line that circled the room (only 10 people were allowed on the piece at a time).
That’s when the feeling that I have experienced this before started to creep in.
45 minutes later, having made it only one-third of the way through the installation and narrowly avoiding breaking or spraining or pulling something on at least eight different occasions, I stepped out and collapsed against the wall.
After an embarrassing amount of recovery time, I walked to the next installation and realized why the whole experience felt so familiar.
It was the perfect encapsulation of a career in corporate innovation.
The Corporate Innovator’s experience in 45 minutes
The initial rush of excitement because “Yea! We’re going to do something fun and new!”
The gradual acceptance that you’re going to have to wait to get started because there are rules and we need to be safe and not take any risks
The eager learning as you patiently wait, watch others give it a try, and search the internet for tips on how to succeed
The rising confidence that, by watching and studying, you have learned enough to do better than the people currently trying
The helpful arrogance you display as you shout advice and guidance to people doing the work
The rush of adrenaline you feel when it is finally your turn
The certainty and strength you feel as you start, grabbing a ring in each hand and pulling yourself off the ground
The terror of placing your foot in the first ring and feeling it shoot out in a direction that it definitely should not go and realizing that this is SO MUCH HARDER than you thought it would be
The quiet resilience that takes root as you get your first foot back under control, your second foot in its ring, and realize that you can’t bail now because you haven’t gotten anywhere and all the people you gave advice to are standing along a different wall watching you (and probably feeling quite smug, if we’re going to be honest)
The sense of doom when you realize that, now that you have all your limbs under control, you need to move a foot out of its current ring and into another one
Repeat steps 8 through 10 until you are so physically and emotionally exhausted that you wonder what you were ever thinking, that you now have pain in muscles you didn’t even know you had, and that you’re definitely having wine with dinner tonight.
The relief of returning to solid ground and feeling supported as you lean against a wall, then watching all those young whipper-snappers who shouted advice at you and who are now hanging on to rings and straps for dear life
The hard soul-searching as you choose whether or not to do it all over again
What Forsythe (apparently) knows about corporate innovation that most don’t
You don’t know anything until you do something: I saw lots of ways to get from one end to the other and thought I had a brilliant plan. But the only thing I knew for sure after I grasped the first ring was that I needed to stay as close to the ground as possible.
Doing something is much harder than watching someone else do it: No matter how much you study or observe others, no matter how “good” your advice may seem, no matter how much experience you have in something like this (I spent my childhood playing on a jungle gym!), doing something is always, always harder than watching and critiquing others.
There is no one “best” way, just the way that works for you: I spent 30 minutes watching people move from ring to ring. Some people (mostly kids) went fast and made it look effortless, some people took a more measured approach, and some (mostly older folks) kept their feet on the ground and only moved their hands from ring to ring. Everyone approached the task differently, taking into account their abilities and working to achieve their own definitions of success.
The hardest part is moving forward: Every time I stabilized myself, I felt a warm rush of relief. “I’ve got this,” I would think to myself. And then I would realize that I had a choice — I could stand still and be safe OR I could move my foot to another ring, fundamentally de-stabilizing myself and sending limbs flying everywhere, but also getting closer to my goal.
You only fail when you start blaming: Yes, I bailed well short of my goal. I didn’t have the upper body strength to keep going. But did I fail? Nope. I learned that I need to work harder to strengthen my arms, shoulders, and core. Did other people bail before they got to the end? Yep. Did some of them fail? Yes they did. They blamed the exhibit (“of course I couldn’t make it to the end, it was designed by a professional choreographer, only professional dancers can do it”), they blamed things they couldn’t control (“I’m too old for this”), and they blamed other people (“that kid was always in my way!”). They didn’t celebrate their courage to start or recognize what they learned. They just moved on from that “stupid installation” that will never work.
The next room
Just when I thought Forsythe might have just gotten lucky with his “Experience a Career in Corporate Innovation” installation, I walked into the next room. Filled with chalkboards, he had somehow captured the progression of meetings corporate innovators endure as they present to ever higher levels of management…
I’ve had more than one conversation recently in which an Intrapreneur will ask me, with downcast eyes and voice barely above a whisper, “Has my career been a lie? Is making innovation happen in a big company actually impossible?”
Intrapreneurs have the hardest jobs in the world so it’s understandable that they often get frustrated and sometimes burned out. After all, they face a massive system of hundreds (thousands?) of people who are not only motivated to defend and extend the status quo but who are rewarded for doing so.
While we can’t give up (never give up!), sometimes we need a break. But what is an Intrapreneur to do when they need a break from corporate innovation?
Happily there are lots of options because Intrapreneurs have many valuable yet rare skills than can easily be applied in other roles. Let’s take a look at just a few alternative professions that draw on an Intrapreneur’s unique skillset.
Intrapreneur Skill #1: Making things happen with very few resources
Remember that time you submitted a budget request for $3M to support a team of 5 working to test 3 new businesses that, if launched, would generate $450M annual revenue? Remember when you actually received $1.5M for a team of 3 to test 6 new businesses that, when launched, would generate $1B in new revenue? Remember when you come this close to actually nailing that crazy goal?
You could be a public school teacher
According to to the OECD, from 2010–2014 education spending per student increased 5% across its 35 member companies. In the US, spending per student decreased 4% over the same time frame thanks to a 3% decrease in spending and a 1% increase in student population. Yes, public school teachers are being asked to teach more with fewer resources.
To add insult to injury, according to a survey by Scholastic, teachers spend $530, on average, out of their own pockets and teachers in high poverty schools spend, on average, $750 out of their own pockets. Now consider that, according to another OECD report, on average, US teachers are paid “less than 60 percent of the salaries of similarly educated professionals…the lowest relative earnings across all OECD countries with data.”
Intrapreneur Skill #2: Maintaining enthusiasm despite being wrong
Remember that time that you ran an experiment to test your customers’ willingness to pay only to find out that it was half of what you needed to be? Then remember how you spun that result into a positive thing because it allowed you to quickly kill the project and start investing in the next one?
You could be a meteorologist.
Have you ever seen a depressed meteorologist? Nope, neither have I. Even though they’re wrong all the time (actually, they are, on average, wrong only 20% of the time according to this Kansas City meteorologist who has absolutely no reason to doctor the data), they get on TV multiple times a day to predict the 1-day, 5-day, 7-day, and even 10-day forecasts.
They spend hours cranking through computer models to tell us at 6am that there’s a 20% chance of rain today. Armed with this information, we leave home without our umbrellas only to get drenched in something that can only be described as a monsoon during our commutes home. Then they pop back up at 11pm happy about the day’s “beneficial rain” and peppily predicting sun tomorrow.
Intrapreneur Skill #3: Optimism in the face of incredible odds
Remember that time you were super excited to be asked to join a new team at your company that would focus in creating new business models and launching new businesses? Remember how excited you were to present your first batch of ideas to management? Remember how you were only momentarily bummed when all your ideas were crushed because they didn’t support the current business or fit the current business model? Remember coming in the next day full of energy and optimism that you’ll get ’em next time?
You could be a lifelong Cleveland Browns’ fan.
OK, I know that being a Browns’ fan isn’t a profession (it’s an identity) but Browns fans are the world’s best example of this trait. Not only did the Browns lose Every Single Game during the 2017 season, they have put together the worst 3 season record in NFL history, “including all existing franchises from 1920 until now. Of the 32 existing franchises, in every season they have played in every city they have played in, with every wacky nickname attached, no one has had a worse three-season run.” Yet, despite being the worst team in history, Browns fans still show up to games, even when the bitter winter wind whips off Lake Erie and swirls around the stadium. They’re so steadfast that The New York Timesactually wrote an article about them and their unwavering belief that “there’s always next year.”
There you go, dear Intrapreneurs, just a few of the thrilling careers where you can apply the skills you’ve honed fighting the good fight in corporate America.
As for me, I’m going to stick with Intrapreneurship because dealing with kids all day is my version of hell, I’m pretty sure meteorology requires math, and my heart is still broken for the 1997 Cleveland Indians so I can’t take on any more Cleveland sports pain. More importantly, I still think Intrapreneurship is a hell of a lot of fun. Most of the time.
Nothing drives my husband more insane than when the “80/20 Rule” is invoked. Whenever we’re doing something and I wave my hand and say “Eh, it’s good enough,” I watch, mildly amused, as he takes a deep breath, tenses his shoulders, and tries his very very best to find a way to explain to me that it is either right or wrong and that there is no such thing as “good enough.”
The look on my husband’s face when I say “it’s good enough”
When you consider that he spent 6 years as an officer in the US Navy’s nuclear submarine fleet, learning how to run nuclear reactors, and occasionally sleeping on missiles because they offered more room than his bunk, it’s easy to understand why he approaches the world with an All-of-Nothing mindset.
But most of us don’t live in a metal tube, deep under the ocean, side-by-side with nuclear warheads, knowing that the smallest spark could result in a long, agonizing death from suffocation, starvation, or melting (seriously, he has a story of nearly melting to death. It’s one of my favorites).
So why do we act like it when it comes to innovation?
Don’t believe me?
Every innovator working within a big company has had at least one moment in which they have very promising news — fantastic customer feedback on a new concept, promising early revenue from a small in-market test, genuine interest from a potential partner or acquisition — and it’s time to go to the powers that be and ask for more money and/or people.
They enter the meeting, bursting with optimism because they’ve always been told by the bosses that “We know innovation is more risky than our current business” and “we know we need to fund experiments because that’s how you de-risk innovations” and “we’ll find the money when we need it.”
They sit down, present the great news, share the data, outline the next steps, and make the Ask for the money that they were promised would be found the moment it was needed.
The look on your boss’ face when you ask for more money or people for an innovation project
The bosses are silent. Squirming uncomfortably in their seats, they start talking about the current business. Maybe it’s not doing so well so they need to funnel all the extra resources to it. Or maybe it’s doing great and they want to allocate all the extra resources to capitalize on the momentum. Or maybe it’s going exactly as expected but you never know what could happen so we need to hold on to the extra resources, just in case. And, by the way, you’re scrappy innovators, so see what you can do with what you’ve got.
This is when innovation runs into the Winner-Take-All Effect and, more often than not, it’s not the winner.
In this fascinating Medium article, James Clear asserts that,
“Not everything in life is a Winner-Take-All competition, but nearly every area of life is at least partially affected by limited resources. Any decision that involves using a limited resource like time or money will naturally result in a winner-take-all situation.”
All businesses face the challenge of limited resources. In fact, one could argue that business strategy is fundamentally about resource allocation decisions and that businesses succeed because they allocate resources better than their competitors.
The issue here is not that resources are limited and that they are, more often than not, allocated to existing business operations. The issue is that often they are ALL allocated to existing business operations.
Situations in which small differences in performance lead to outsized rewards are known as Winner-Take-All Effects.
Admittedly, the differences between innovation and core business projects are greater than the 1/100th of a second Olympic medal example Clear gives in his article. But given the context of a world that is transforming ever faster and in more unexpected ways, businesses can scarcely afford to commit all their resources to their existing businesses and treat the creation of new businesses as if it were fun little hobby.
There are countless reasons why this Effect seems to have taken hold — the need to deliver short-term quarterly results even at the expense of long-term investments, performance incentives that encourage people to adhere to the status quo, the ever-present demand to do more with less so the company can show higher profits. What’s important is not tracing the root causes. What’s important is figuring out how to overcome the root causes and shift towards a Results-Get-Rewards model.
This is probably the hardest part of working in innovation. Yes, there is a lot of advice (create a growth strategy, quantify the business results required from innovation, invest like a VC), many frameworks (70/20/10 ratio of innovation investment), and tons of tools and most of them are incredibly useful and very on-point. They are also not sufficient to escape the Winner-Take-All Effect.
The reason is that, ultimately, these frameworks and tools are applied by humans who are juggling more demands, decisions, and pressures than are accounted for in the frameworks and tools. Most business leaders have to juggle the tangible demands of sustaining the current business with the felt need to create new businesses. If they succeed at the former but fail at the latter, they will likely still be rewarded with performance bonuses and maybe even promotion. But if they succeed at the latter and miss on the former, they’ll be questioned, put on probation, and maybe even fired.
Your job, as someone trying to make innovation happen, is to help your boss to move past his or her risk aversion by addressing the risks (real or perceived) to the business AND to your boss individually.
In addition to pitching all of your great learnings (increased confidence from tests, and early revenue) you also need to tell your boss what’s in it for him or her. Perhaps the CEO has just announced a key strategic priority and this project is an example of how your boss/team/business unit is on the cutting edge (and can get your boss some face-time with the CEO). Perhaps someone was recently promoted because they “exemplify our company’s values of innovation and initiative” and this project positions your boss in a similar way.
To be clear, this is NOT manipulation and you should NOT say anything that is untrue. This is simply knowing your customer (your boss), knowing their important and unmet needs (build the business, feel secure in my job), and pitching a solution that addresses functional, social, and emotional needs.
Admittedly, this doesn’t work all the time but it works more often than you might think. They key is to be thoughtful, honest, and truly committed to advancing your innovation project AND the people working on it (your team) AND the people investing in it (your boss).
How your boss will look when you help him or her invest in building the existing business and creating the net new business
It’s Monday morning, you’re settling into your office. As you sip your coffee and start scanning your email for the newest crisis, you hear a knock on the door. Turning, you see your boss standing there…
“Good morning! Wanted to talk to you about an exciting opportunity. As you know, our CEO wants us to be more innovative. The Executive Committee met last week and we decided you would be the perfect person to lead our new innovation team. We want you to really own this so let us know what you need to make things happen. Any questions?”
If you are like the hundreds of people I’ve worked with over the past 15 years who have found themselves in this situation (or something similar), you’re so surprised that your mind has gone blank.
Fear not! Here are the 4 things you need to know to get off to a strong start:
Question 1: Why now?
Yes, the CEO thinks the company needs to be more innovative, but what happened to spur the company to action? Did a new competitor enter the market? Is your company’s revenue declining? Did the CEO read a book that says innovation is important?
Getting to the “why” behind the request is critical because it gives you insight into how serious the commitment to innovation is. If your business results are suffering, competitors are taking share, or shareholders are demanding better results, odds are there is real commitment to doing something.
If the answer is that your CEO just read the latest books or article on the importance of innovation, then just smile and nod. Odds are, this is the executive whim of the month and will pass soon.
Question 2: What do we expect as a result of our new focus on innovation?
You never start a journey without a destination in mind (even if that destination shifts as you travel) so find out now what you are expected to deliver and when. Do you need to solicit a bunch of ideas from across the company in the next quarter? Launch a new product in the next year? Generate $13B in new revenues in the next 7 years (true story of an actual answer to this question)?
Whatever the answer is, don’t panic. You have time to figure out how to achieve it if it’s possible or propose an alternative if it’s not.
And, if your boss doesn’t have an answer find out who might and schedule meetings with them to ask this question
Question 3: What type of innovation do we want?
Google “types of innovation” and you’ll get 1.86M results in 0.53 seconds. To be fair, there are lots of very useful ways to classify innovation, especially as you start building a portfolio. But you’re not there yet.
Right now, you need to know what “innovation” means to the people asking for it. Does the company make products and it wants more innovative products OR does it want you to create services? Does the company sell to businesses and want to expand the types of businesses it sells to OR sell direct to consumers?
Understanding what “innovation” looks like will give you important insights into the challenge you’re facing and the resources and support you’ll need to be successful
Question 4: What resources are we dedicating to this?
I guarantee that when you ask this question, this will be the response, “Great question. Let us know what you need.”
DO NOT accept this!
Everyone has a limit to how much they’re willing to dedicate to innovation efforts, especially at the start. You need to find those limits now. The best way to do that is to give options:
“Great, is it fair to assume that I should dedicate 100% of my time to this? If so, who should I transfer my current workload to?” (you’ll most likely be told that No, you should not dedicate 100% of your time). “Ok, how many days per week should I spend on this”
“From what I’ve read, successful innovation efforts require fully dedicated teams. Is it fair to assume that, once we have a plan, we’ll dedicate 2–3 people to this full-time?”
“Of course we’ll need money to make things happen. How much is being set aside for this? Since we usually spend $X on new R&D projects, I assume we’ll allocate at least 10% of X on innovation projects.”
Trust me, if you get answers, they won’t feel like good ones and you will make people uncomfortable. But you need to ask these questions now so people realize that innovation is not about creating something out of nothing (you’re an innovator, not a magician) it’s a serious business investment that requires resources just like all the other investments the company makes.
Congratulations!
You’re at the start of an incredible, crazy, terrifying, thrilling, maddening, exhilarating, mind-altering, life-changing journey as your company’s new head of innovation! With the answers to these 4 questions, you’re set-up for success and ready to take the next step — Finding Your Innovation Focus
