by Robyn Bolton | Sep 24, 2022 | Innovation, Strategy, Tips, Tricks, & Tools
In the Before Times, we attended conferences to learn, make connections, and promote ourselves and our businesses. Then COVID hit, and conferences became virtual. Although that made them easier to attend, it also made them easier to skip. Because, if we’re honest, most conferences were more about connecting and promoting than learning.
Last week, I went to one of those rare, almost mythical, conferences more focused on learning and connecting than promoting. It was fantastic! It was also in Nebraska (which is a pretty interesting place, btw).
Here are my three biggest mind-blowing takeaways from Inside Outside’s IO2022 Summit:
“Strategy is the direction you take to win in the future“
Kareen Proudian, Managing Partner at Faculty of Change
It’s a bit embarrassing to admit, but if you asked me to define “Strategy,” I’d respond with a long and rambling answer. Which means I can’t define “strategy.” This admission is especially embarrassing because I have a resume littered with places where I developed, drafted, and implemented strategies, so I should have learned what the word means. But nope, I didn’t.
I suspect I’m not alone.
Asking for the definition of strategy is like asking if you must wear clothes to the office. You should know the answer. But unlike whether or not clothing is mandatory, most of us don’t know the answer, AND it’s easy to get away with never knowing the answer.
The elegant simplicity of Kareen’s definition of strategy blew my mind. It’s short, memorable, and something that most people can understand. Maybe I should share the definition with my alma maters and past employers.
“When we feel threatened, our IQ drops 50 to 70 points”
Alla Weinberg, CEO at Spoke & Wheel
When I first heard talk about Psychological Safety and Safe Spaces in today’s business world, I rolled my eyes. Hard. As a Gen X-er, I grumbled about how we didn’t need “safe spaces” when I grew up because we were tough and self-reliant, and I lamented the inevitable downfall of society caused by weak and coddled Millennials.
I was wrong.
Psychological Safety is absolutely and unquestionably essential for individuals to grow, teams to work, companies to operate and innovate, and societies to function and evolve. I’ve seen teams and businesses transform and achieve unbelievable success by discussing and living the elements they require for Psychological Safety. I’ve also seen teams and businesses fail in its absence.
These results aren’t surprising when you realize that you feel threatened when you are in a complex situation in which you cannot accurately predict the outcomes. And when you feel threatened, you are half as intelligent, effective, and creative as you are when you’re calm.
So, if you’re a manager and you’re upset that your people aren’t as intelligent, effective, or creative as they should be, it may not be their fault. It may be yours.
“Stage expertise, not industry expertise, is key to innovation success“
Sean Sheppard, Managing Partner at U+
There is deep comfort in the known. It’s why we gravitate to people like us. It’s also why companies ask job candidates and consultants about their experience in the industry and choose those with deep experience and impressive expertise. Often, there’s nothing with this question or the resulting decision.
Sometimes, it’s precisely the wrong question.
Sometimes, functional expertise is significantly more important than industry experience. After all, if you’re the hiring manager at a healthcare company looking for a Director of Finance, who would you hire – a Marketing Director from a competitor or a Finance Director from a CPG company?
That’s the case with innovation.
Decades of real-world experience (not to mention the successful launch of 100+ startups) show that successful corporate startup teams had expertise (mindsets, skillsets, executional drive) in the startup’s phase and a working knowledge of the industry rather extensive industry expertise and little to no innovation experience.
Questions are good. The right questions are better. So, the next time you’re staffing up an innovation team (or hiring a consultant), choose based on their innovation experience and willingness to learn about your industry.
Innovation happens everywhere
That’s why people from San Francisco, Austin, Washington DC, NYC, Toronto, Boston, and dozens of other places converged on Lincoln, Nebraska.
We went to see innovation in action and learn about the thriving startup community in the middle of the country. We also went to learn and connect with others committed to creating new things that create value.
Getting our minds blown was a bonus.
by Robyn Bolton | Sep 18, 2022 | Innovation, Leadership
Several months ago, a colleague sent me a link to Roger Martin’s latest article, “The Presumption of Guilt: The Hidden Logical Barrier to Innovation.” Even though the article was authored by one of the preeminent thinkers in the field of innovation and strategy (in 2017, Thinkers50 voted him the #1 most influential management thinker in the world), I didn’t have too much hope that I would read something new or interesting. After all, I read A LOT of articles, and 99 times out of 100, I’m disappointed (80 times out of 100, I roll my eyes so hard I give myself a headache).
This one blew my mind.
With just a few sentences and applying a well-known analogy, Martin explained a phenomenon that plagues every organization and kills most innovation.
Presumed Innocence is a fundamental human right
Martin begins by pointing out that in the legal systems of modern democracies, all citizens are presumed innocent until proven guilty beyond a reasonable doubt. In 1948, the United Nations extended this concept to all nations (not just democracies) in Article 11.1 of their Declaration of Human Rights.
The presumption of innocence is so important because “the presumption of guilt (or even neutrality) puts an almost impossible burden on the defendant. The State is strong and has resources far beyond that of the individual.”
Presumed Innocence is not a fundamental innovation right
Now let’s apply this analogy and the lens of presumption of innocence or guilt to business, arguably a field where we spend much more time and make far more judgments.
You, and your fellow decision-makers, are judges and jury.
It is up to you to determine whether the projects in front of you are innocent (worthy of additional investment) or guilty (not worthy).
If you presume all defendants are guilty, you place the burden of proof on them. They must prove beyond a reasonable doubt that they will succeed and are, therefore, worthy of investment.
If you presume all defendants are innocent, you place the burden of proof on yourself (or the business as a whole). You must prove beyond a reasonable doubt that they will fail.
What type of judge are you? What kind of decision-making system do you preside over? Do you presume guilt or innocence?
In most boardrooms, projects are presumed guilty.
Presumptions in practice
Let’s consider the two “defendants” (types of projects) that appear before you – core business projects and innovation projects.
Each defendant has a team of advocates. The core business typically has a large team with ample resources and a history of success. Innovation has a much smaller team with far fewer resources and few, if any, “in-market” successes.
To be fair, you ask the same questions of both defendants – questions about market growth, performance versus competitors, and what the P&L looks like.
The team advocating for the core business produces data-filled slides, reports from reputable third parties, and financials blessed by Finance. In the deluge of facts, you forget that all the data is about the past, and you’re making decisions about the future. You find the evidence compelling (or at least reassuring), determine that the team met their burden of proof, declare the Core Business innocent, and allocate additional funds and people.
Innovation’s team also comes with slides, reports, and financials, but it’s not nearly as compelling as what you just saw from the current business team. But you are a fair judge, so you ask most questions like
- We believe we can get X% of a Total Addressable Market estimated to be Y
- There are no direct competitors, but consumers rated this better than current solutions
- We don’t have a 5-year NPV or P&L for this business at scale because we’re not asking for permission to launch. We’re asking for $100,000 to continue testing.
Believe? We need to know!
No direct competitors? Perhaps there’s a reason for that!
No P&L? I’m not going to throw scarce money away!
“Guilty!” you declare, “no more resources for you! Try again!”
This example illustrates what Roger Martin considers corporate innovation’s fatal flaw. In his article, he argues,
“the status quo must play the role of the prosecutor and prove that the innovation is guilty beyond a reasonable doubt. The innovation asserts its case, laying out the future that it imagines is plausible and explains the logic that buttresses the plausibility. The onus is on the status quo to demonstrate beyond a reasonable doubt that the innovation’s logic is flawed — e.g., the proposed economics are unrealistic, customers haven’t shown a hint of caring about the unique selling features of the innovation, competitors already have a lead on us in the proposed area, etc.
If the status quo can do so, then the innovation is guilty. If it can’t, then the innovation is not guilty, and the organization should invest.”
As much as I love the idea of requiring the status quo (managers? Executives? Stockholders?) to prove that investments should not be made (i.e., the default answer is “Yes” to all requests), it’s just not a practical solution.
Burden of proof as barrier
There’s another fundamental principle in our legal system that Martin doesn’t touch on: the burden of proof shifts as the stakes increase.
Specifically, the State’s burden of proof increases from warrant to arraignment to grand jury to trial. For example, the State must provide probable cause based on direct or other reliable information to get a warrant. But the State must prove guilt beyond a reasonable doubt when the defendant goes to trial and risks losing their freedom or even their life.
But in the example above, the questions (proof required) remained the same.
The questions were appropriate for the Current Business because it’s already in the market, consuming massive resources, and its failure would have a catastrophic impact on the company.
But the questions aren’t appropriate for innovation in its early days. In fact, they were the business equivalent of demanding proof of guilt beyond a reasonable doubt to get a search warrant. Instead, a judge evaluating a project in the early Design phase should ask for probable cause based on direct or other reliable information – observed consumer behavior, small-scale research findings, or simple prototypes.
The Verdict is In
I love the concept of Presumed Guilty vs. Presumed Innocent. I see it all the time in my work, and it is painfully prevalent in Innovation Council meetings and other boardrooms where managers sit as judge and jury over a project’s (ad a team’s) fate.
I want to flip the paradigm – To make “yes” the default instead of “No” and to require managers, the keepers of the status quo, to prove beyond a reasonable doubt that a project will fail.
But I don’t think it’s possible (if I’m wrong, PLEASE tell me!).
Instead, our best bet for true innovation justice is not to shift who bears the burden of proof but rather how heavy that burden is at various points. From probable cause when the stakes are low to beyond a reasonable doubt when they’re high. And certainly more than a ham sandwich at any point
by Robyn Bolton | Sep 12, 2022 | Podcasts
by Robyn Bolton | Dec 30, 2020 | Innovation, Tips, Tricks, & Tools
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
by Robyn Bolton | Oct 21, 2020 | Innovation, Tips, Tricks, & Tools
Things we know we should do because they’re good for us:
- Eat 5 servings of fruits and vegetables each day
- Floss twice a day
- Get 10,000 steps a day
- Buy insurance
- Consistently invest in innovation
Let’s be honest, the above list could also be titled, “Things we know we should do but don’t.”
Why? Why do we choose not to do things that years of research prove are good for us and for which solutions are readily available?
Because they’re inconvenient, uncomfortable, expensive, and, most of all, because we have not yet been burned by not doing them.
Experience is a better motivator of change and driver of behavior than knowledge. We don’t floss until we’ve had one (or more) painful and bloody dentist appointments. We don’t buy insurance until we have to deal with a break-in. We don’t invest in innovation until we’re desperate for revenue, profit, or growth.
The good news is that, at least when it comes to innovation, we don’t have to wait to be desperate or to get burned before we do what we know we should. We can create experiences that motivate change.
Borrow relevant experiences
Experiencing success, even if it’s vicariously, is key to getting people to do what they know they should. One way to do this is to find proof that the change is possible and do-able. To do this you need to find relevant and recent examples (i.e. not a field trip to Silicon Valley and not stories about Steve Jobs).
Find a company in your industry (or a similar one) that has successfully achieved the goal you’ve set. Tell their story to people within your organization. Set-up a conversation between a current or former member of their team and a key stakeholder in your organization. Buy their product and display it as evidence that success is possible.
Create experiences of success
Innovation takes time, especially if you’re working on something breakthrough. But people lose interest and faith quickly, especially in organizations that are judged by quarterly numbers. As a result, the worst thing you can do is to go into “stealth mode” and try to “fly under the radar” until you have a huge, earth-shattering success to announce.
Instead, spend time learning about your decision-makers’ and stakeholders’ doubts at the same time you’re learning about your customers’ problems. Then, when you prove those doubts wrong, celebrate the win…politely, and publicly.
Does your boss think Legal will never approve your idea? Work with Legal, ask them what it would take to get an approval, and when you do that and get the Yes, tell your boss. Does Finance think no one will ever pay the price for your solution? Open a “lemonade stand” to sell the product and then take Finance out for drinks, using your first dollars of revenue to pay for the first round.
Small and steady wins give people experience with success and buy you the time, resources, and support you need to achieve the earth-shattering ones.
Immerse everyone in the experience
While borrowing and creating experiences can be powerful, nothing is as convincing or compelling as actively engaging people in achieving success.
Involve innovation leaders, decision-makers, and key stakeholders in the hard work of customer discovery, solution design, and business testing. Make them listen in live to customer interviews, hand them the sharpie (or the mouse) during ideation sessions, and “hire” them to staff your “lemonade stand.”
By making people lean in, roll up their sleeves and do the work, they’ll experience how hard innovation is and why it takes longer than they think. They’ll be invested in your work and your results. They’ll feel the rush of the small successes.
Innovation is a Head, Heart, Guts endeavor
People decide what to do with their hearts, justify their decisions with their heads, but it takes guts to take action. Knowledge feeds the head, but it takes experience to have guts.
