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November 25, 2006

Measurement Versus Trust



Do people only do things when they are “measured” on what they have done? Can no one be trusted to do what they have been convinced is right, even if there is nobody checking up on them afterwards? The “audit mentality” that pervades business today is undermining any trust that might exist. Yet we have never needed people’s innate sense of values and honesty more, since constant supervision will eventually overload any manager, and people whom you don’t trust don’t trust you either.

I noticed this comment recently from someone who was writing about diversity in organizations. The writer claimed that it is essential to measure every behavior in detail because: “You only get change when you measure it.”

What a depressing viewpoint! It implies people will only do things if they are supervised and—at least potentially—criticized or punished for non-compliance. It this true? Will no one change their behavior because they believe it is right to do so? Or because they have been convinced by rational argument?

It used to be assumed that people of good will could be trusted to do what is right, once that had been made clear to them.
Such an attitude appears to be generally prevalent amongst many managers and leaders. Such is their distrust of others, and perhaps their cynicism after various past experiences, that they assume no one will comply with a reasonable request on a voluntary basis. Everything must be measured, supervised, and monitored—or people will simply ignore you.

Heaven save us from the audit mentality that measures everything and knows the value of nothing.
No wonder so many managers are grossly overburdened. It used to be assumed that people of good will could be trusted to do what is right, once that had been made clear to them. Now it seems no one is trusted to do anything on their own. What happens if the behavior cannot be measured? Or if whatever you wish people to pay attention to must be done when there is no one else to watch and take note of any backsliding? Does that means certain behaviors—like treating others kindly, doing the job you are paid for, and behaving ethically when no one else is there to see—must be abandoned as impractical?

Heaven save us from the audit mentality that measures everything and knows the value of nothing. And from those who no longer believe in the power of rational argument and proof to convince others to do what is in the best interests of all. If all that remains is measurement and enforced compliance, we are getting close to the “Mind Police” and the awful totalitarianism described by George Orwell in his book “1984.”

Sunspots: The disruptive edition

Death metal band logos
Scary logos from Zyklon (Norway), Extreme Noise Terror (England), Vomitory (Sweden), Dead Infection (Poland), Regurgitate (Sweden), etc.
Netflix and fast iterations
“We make a lot of this stuff up as we go along. I’m serious. We don’t assume anything works and we don’t like to make predictions without real-world tests. Predictions color our thinking. So, we continually make this up as we go along, keeping what works and throwing away what doesn’t. We’ve found that about 90% of it doesn’t work.”
Kathy Sierra on how she makes her graphics
“People pay attention to graphics. They respond to graphics. They learn from graphics. If you want your readers/learners/audience to ‘get’ something as quickly and clearly as possible, use visuals. And you don’t have to be a graphic artist, designer, or information architect to put pictures in your presentation, post, or book. This post is my first attempt to categorize the kinds of graphics I do here, and offer tips for creating visuals that tell the story better and faster than words.” Related: The power of rough edges.
SmugMug saving big using S3
“Total amount NOT spent over the last 7 months: $423,686. Total amount spent on S3: $84,255.25. Total savings: $339,430.75. That works out to $48,490 / month, which is $581,881 per year…These are real, hard numbers after using S3 for 7 months, not our projections.”
LCD Soundsystem's James Murphy creates jogging-friendly track for Nike
“The DFA cofounder has just teamed up with Nike to release 45:33: Nike+ Original Run, a 45-plus-minute track designed to accompany joggers on their workouts. Displaying Murphy’s inimitable production style, the track has the dynamics and temporal ebb and flow of an eclectic DJ set, beginning with a long, warm-up segment, moving into a rousing Afrobeat crescendo, peaking with double-time disco, and finally coming back to earth on a parachute of cool, ambient synthesizers.”
Steven Wright’s paintings
The comedian is also a painter. He was recently interviewed by The Onion.
Daring Fireball: 'Beta' Is Not an Excuse
“What Disco smells like to me is released. And released software — particularly released software that is available for sale — is open for criticism. In what way does Disco, or any other app that is labeled ‘beta’ but is available for sale to the public, deserve to be cut any critical slack?”
Kottke: “For podcasts, there’s no need to fill airtime with anything but content”
“The playing of music before segments and as transitions between segments makes some sense on the radio, where it’s used in some cases to fill airtime. But for podcasts, there’s no need to fill airtime with anything but content. 30 seconds of music before the actual podcast begins is the audio equivalent of Flash splash pages on web sites.” Hmm, long intros can certainly be annoying but transitions that help bridge disparate parts can provide some nice breathing room and ease segueways.
Honda, individual enjoyment, and flow
“Many business thinkers write about managing innovation, as if innovation were a thing. But innovation is ultimately the expression of a set of behaviors originating in the individual. So rather than focusing our energy on understanding the output of those individuals (innovation), we should think instead about how to lead those individuals so that they can be as innovative as possible. Could creating a culture of innovation be as simple as cultivating a culture of enjoyment?”
How to get on TechCrunch
“Don’t use descriptions such as ‘revolutionary,’ ‘Web 2.0,’ ‘huge,’ ‘change the way you’ll use the Internet,’ and ‘disruptive.’ This is what Mike calls ‘cheap adjectives,’ and they are kisses of death in Michael’s eyes.”
RetailMeNot.com offers coupon and promotion codes for online stores
“Many online stores allow for a ‘coupon’ or ‘promotion’ code when you order to automatically assign discounts, deals and freebies (kinda like money for nothing). RetailMeNot.com is a place for finding and sharing these coupon codes. So… when you buy online, check here for discounts first (unless you’re frikkin crazy).” [via GE]
Minimalist breadmaking technique
“A truly minimalist breadmaking technique that allows people to make excellent bread at home with very little effort. The method is surprisingly simple — I think a 4-year-old could master it — and the results are fantastic.”
Apple ditches 'Mac Guy' in new ads
“Apple’s ‘I’m a Mac’ campaign is almost perfect: It’s funny, memorable, and efficiently lays out the advantages of Macs over PCs. It’s only defect: Virtually everyone who watches it comes away liking the ‘PC guy’ while wanting to push the ‘Mac guy’ under a bus.” Update: Mac Guy Justin Long denies he’s getting the boot (“I’m literally setting my alarm right now to wake up for a mac shoot tomorrow.”) [tx Jesper]
NanoNuno Umbrella uses lotus leaf for inspiration
“In nature, a fascinating effect is produced by the microscopic, rough nanostructure on the leaves of the lotus plant: Dirt and moisture simply roll off. This is because there is a much smaller surface area to which things can stick than on a smooth surface. The design of your NanoNuno® umbrella is based on this natural principle, with the result that moisture does not penetrate the fabric and so there is no tedious drying.”

Innovation on the runway

Making business headlines today was the announcement that Paul Charron, a 17-year veteran of the $5B fashion apparel and accessories company Liz Claiborne will retire as CEO. Intrigued by the fashion world thanks to Project Runway and reading this recent news made me realize what a fascinating company Liz Claiborne is. It was the first company founded by a woman to be listed on the Fortune 500. The company has more than 40 brands in its portfolio (including hip fashion brands like Juicy Couture and Lucky Brand) that are available at over 30,000 points of sale worldwide. Lastly, Liz Claiborne is an innovative company that started as a low-end disruptor to established women fashion brands.

Liz Claiborne was founded by a group of designers who identified an important unmet Job to be done in the marketplace – helping women conveniently find fashionable ensemble driven clothes that are appropriate for wearing to work. Fashion brands such as Calvin Klein and Bill Blass were getting this Job done but their ensembles were too expensive for the average working woman. Recognizing the importance of keeping the clothes affordable, Claiborne established a low-cost model in the 1980s (at this time they challenged norms in the fashion industry by testing the concept of manufacturing overseas in Asia). They also recognized the importance making the shopping experience of the working woman more convenient and simpler. They were faced with a major stumbling block addressing this challenge. At this time department stores were classified according to items – pants in one department, skirts in another and blouses in yet another. This made it challenging for women to put together a decent outfit – forcing them to move around from one section of the store to another. Furthermore, the buyers at the department stores were not equipped to make purchases from one manufacturer across product lines. Liz Claiborne worked together with retailers to test a model wherein a section of the store was dedicated to a type of occasion (e.g., sportswear, suits that work, etc.). This model laid down the foundation for the brand and lifestyle “store-within-a-store” concept that is very popular today.

Over the last decade, Liz Claiborne has also had success riding out the waves of disruption in retailing. If you are interested in learning more about these patterns of retailing throughout history from specialty stores, to department stores, to category stores, catalogs and now the Internet, we recommend the HBR article “Patterns of Disruption in Retailing” authored by Clayton Christensen and Richard S. Tedlow.

The 10 most innovative Chinese cities

Shanghai%20night%20skyline.jpg

According to a survey conducted by the National Bureau of Statistics in China, the most innovative city in China is Shanghai. Other cities cracking the Top 10 included Hangzhou, Qingdao, Shenzhen, Suzhou, Beijing, Changzhou, Yantai, Guangzhou and Shaoxing. For close followers of the Chinese innovation scene, these findings may not come as a shock, but I was personally a bit surprised to find Beijing at #6. Anyway, the survey also looked at the pace of R&D spending in China, the composition of this R&D spending, and the primary sources of funding for this R&D research:

"The survey found that that the majority of research and development funding is spent on improving existing products and technology; only one third is spent on developing new products and basic research programs. According to the survey, 33% of funds are used to improve efficiency and reduce the costs of production; 31% is spent perfecting current technology, and doing research to widen the uses of products; 24% is spent on the development of new products and technology; 9% is used in basic research; the remaining 3% is spent elsewhere. The survey also found that internal revenue-raising is the major source of funds for innovation. Over 75% of funds come from the enterprises themselves, 12% from loans, and less than 5% from the government, partners and capital market."

[image: Shanghai skyline via TravelBlog]

Creating the ultimate innovative office!

Video games during work hours, all-day slot car races, a pirate ship and a tree house. Who allows these things at the office? At Davison Design in O'Hara, the boss does. In fact, he pays for it. George M. Davison says that after listening to ideas from his employees he brought in a special effects expert and invested millions of dollars to create Inventionland, a designer's utopia that would make Walt Disney proud. The complex is nestled inside a nondescript warehouse in a suburban industrial park. But inside employees are hard at work trying to transform inventors' ideas from the conceptual to the physical. Amidst the white noise of the waterfalls and the smack of a ping pong paddle against a ball -- not to mention the rat-a-tat-tat emanating from an Xbox -- designers work to make the next big thing. See the video here to see how they created a real innovative environment at Davison Design.

Can Russia become an innovation superpower?

Bolshevik%20poster.jpgDr. Dmitry Orlov, member of the RIA Novosti Expert Council, explains that Russia must become more than just an exporter of raw materials - it must become an energy superpower that is able to transform oil and gas resources into innovation. Below, he outlines a vision for building an innovation economy in Russia:

"Some experts describe the Russian economy as "an extended raw materials model", while others claim Russia is "an energy superpower." In my opinion, both definitions are true, but one describes the current economic structure, in which energy revenues are mostly accumulated and used, and only partly invested in long-term development. The other is an aspiration... An energy superpower differs from a raw materials supplier in that it turns oil and gas into innovation.
Russian President Vladimir Putin enthusiastically speaks about an innovation economy. In particular, he spoke about it in his spring 2006 state of the nation address. The issue is addressed even more frequently by the economic authorities, notably Economic Development and Trade Minister German Gref and IT and Communications Minister Leonid Reiman.
The priority national projects, which Putin initiated a year ago and entrusted to First Deputy Prime Minister Dmitry Medvedev, should pave the way to an innovation breakthrough. However, they are so far limited to roughly balanced state programs aimed at increasing allocations to social projects. The time has come to turn national projects into the main tool of the state's industrial and infrastructure policy, or at least to add several innovation aspects to them."

With that in mind, Orlov outlines various projects that could jump-start the innovation economy -- such as establishing new business incubation and innovation zones, working to solve the "digital divide" in rural Russia, and helping the economy to become more energy-efficient. The goal is nothing less than an innovation revolution:

"When everyone has access to these communications and business zones, it will mean that we have achieved what Alvin Toffler described as a fast-paced economy, where any strategy must be agile and flexible. Mobility will become a fact of life, though young people will no longer want to move from rural areas to big cities. Just like the spread of electricity and roads in the 20th century, technology parks and the Internet can change the Russian landscape in the 21st century."

[image: "You - have you signed up as a volunteer for the Revolution?"]

November 23, 2006

Managing an orchestra can make you a better innovator

Christian%20Gansch.jpgAustrian innovation blogger Hannes Treichl recently interviewed Christian Gansch, a Grammy award-winning conductor, manager, consultant, and author to find out how he translates elements of leading an orchestra into daily management practices. After all, leading an orchestra comprised of 100 or more people has a lot in common with managing a department of 100 or more people: "An orchestra is an outstanding example for bringing together 100 individuals and motivating them for a successful cooperation in order to get out one voice and to follow a common goal which results in fascinating the audience." In the case of management and business, of course, the "audience" is really the consumer.

Gansch has a unique perspective on innovation, suggesting that the process of reviewing innovation projects mid-way tends to stifle the future growth and development of these projects:

"New ideas need space and time in order to be able to develop and grow. Permanent interim judgments and reviews in the middle in the working process are... a popular game to play, but these reviews prevent fledgling ideas from growing. However, please do not misunderstand this line of thought as in favor of abolishing quality controls!"

Gansch also shares his thoughts about leadership, teams and individualism:

"The Mona Lisa carries the artistic touch of only one painter and not of 100 specialists who might have never come to any results. Also, in the orchestra, it's the conductor's vision. Musicians clearly are aware of the fact that the listener asks for one result and does not want to get confused by 100 individual visions of how to interpret Beethoven's thinking."

[image: Christian Gansch]

Tribal Knowledge: Buy It

John Moore's first book "Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture" is an awesome read.

John worked in marketing Starbucks for 8 years, then left to work at Whole Foods for a couple of years. He then left to pursue his Brand Autopsy marketing practice and to write "Tribal Knowledge."

John accomplished his original intent of the book: To document the unwritten rules, guidelines, brand guardrails, and the other do's-and-don'ts of working at Starbucks.

He discusses the stuff that we learned only after years of working at Starbucks... sometimes through trial-and-error... Sometimes from a great supervisor... And often directly from the company founders... Howard Schultz (brains), Howard Behar (heart) and Dave Olsen (soul/coffee).

This isn't the material of company handbooks... It's what you get if you could read between the lines... John has done a terrific job capturing this behind-the-scene thinking. The topics John discusses truly are what started and grew Starbucks as a group of people, as a company, and as a brand.

While the Starbucks fan will find the book engaging, they're not the intended audience. The true target reader for this book is anyone at any business who...

  • cares about quality,
  • cares about the customer experience,
  • cares about the the details,
  • cares about keeping what you have special, and
  • is passionate about what they do.
You will be able to relate, and apply the lesson's learned from, Starbucks to your own business. This isn't just a marketing book either... Because operations and marketing are strongly linked at Starbucks, you'll get as much out of Tribal Knowledge if you lead a group of front-line employees or manage marketing programs.

This book is not authorized by Starbucks. John wanted to be able to write autonomously without potential approval from the company. John explains the lessons, provides real-life examples, and even shares stories from when Starbucks didn't follow their own lessons.

His love and knowledge of the brand come through... and you benefit from his ability to distill the ideas into something that you can immediately use at your own organization.

Finally... John wants the book to be a conversation starter... a kind of book you can use, not simply read. His Tribal Knowledge (tribalknowledge.biz) website allows discussion for each of the chapters of the book... questions, discussion, a "I don't believe you," or whatever comments you have are welcome.

John Moore Fun Fact
John is better known as "johnmoore" - one word... all lowercase. In fact, in his voicemail message at Starbucks he would spell out his full name... Folks knew him as "jay oh aych en, em double-oh are ee."

If you've read the book, do you have any thoughts? Comments?

Adidas jumping into Blue Oceans feet first

Blueoceanstrategyadidas “When companies are willing to challenge the functional emotional orientation of their industry, they often find new market space... Emotionally oriented industries offer many extras that add price without enhancing functionality. Stripping away those extras may create a fundamentally simpler, lower-priced, lower-cost business model that customers would welcome. Conversely, functionally oriented industries can often infuse commodity products with new life by adding a dose of emotion and, in so doing, can stimulate new demand.” (Blue Ocean Strategy, p. 70)

Embracing the principles of Blue Ocean Strategy, iconic German footwear- and sports gear-maker Adidas is challenging the functional-emotional appeal of its industry with the opening of its new Innovation Center and store on Paris' Champs-Elysées. A recent Business Week article describes just how Adidas is reconstructing market boundaries by reaching out to buyers’ emotional sides:

Design Appreciation and Innovation. The high-tech “cube” store is a full-on sensory experience which, across all facets, showcases Adidas’ dedication to Innovation.

Entertainment Factor. Built-in games, gadgetry and entertainment features make shopping for, and customizing, an Adidas shoe fun. "When people are shopping they don't want to learn…They want to be entertained," says Heinrich Paravicini, the director of Mutabor.

True Customization. Using Star Trek-like technologies, Adidas enables visitors to create customized shoes and “try” them on for size.

Creating Repeat Buyers. Can’t make it to Paris each time you wish to buy a new pair of Adidas shoes? Adidas stores your personalized foot measurements so that you can apply them to new trends later. As Fiona Fairhurst, director of Zero Point Zero One, says: “If you know that Adidas fits you perfectly and comfortably then they have a customer for life."

Adidas says the Paris store is just part of its rollout to major cities around the world, including Beijing just in time for the 2008 Olympics. With Adidas charting this new course, it’s joining the ranks of industry leaders like Swatch, the Swiss watchmaker and Cemex, the Mexican cement manufacturer, who have greatly elevated the emotional appeal of traditionally more functional products, and created Blue Ocean market spaces.

Benchmarking Talent and High Skills Immigration

The Information Technology and Innovation Foundation released a new report today – Global Flows of Talent: Benchmarking the United States – that benchmarks flows of highly-skilled people to the US against similar flows to seven other high-income countries. The report finds that while many other nations are making it easier for talented immigrants to enter their country, either as students or workers, the US is struggling to decide what to do.  The report compares how national immigration policies – permanent, temporary, and student – foster or constrict these flows.  All seven nations in the comparison group are liberalizing their immigration policies for the highly-skilled, although some more than others.  Finally, the report suggests several broad policy recommendations that the US should consider to ensure that we not only compete effectively for talent in the short-term, but also lead the world toward a global system for developing and using talent that is beneficial for everyone over the long-term.

The report is available at: http://www.itif.org/files/Hart-GlobalFlowsofTalent.pdf

Dr. Hart can be reached at dhart@gmu.edu.  ITIF can be reached at mail@innovationpolicy.org or by phone at (202) 449-1351.

Design Interactions

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Bill Moggridge, industrial designer and a founder of IDEO, has released Design Interactions, his new literary endeavor exploring the impact of digital technology on aesthetics, utility, and the design process from start to finish.

Moggridge and his interviewees discuss why personal computers have windows in desktops, what made Palm's handheld organizers so successful, what turns a game into a hobby, why Google is the search engine of choice, and why 30 million people in Japan choose the i-mode service for their cell phones. And Moggridge tells the story of his own design process and explains the focus on people and prototypes that has been successful at IDEO-how the needs and desires of people can inspire innovative designs and how prototyping methods are evolving for the design of digital technology.
...

Coloring inside the lines

People who want to do a good job are more likely to follow instructions that they know they can successfully accomplish, while they'll often ignore the 'softer' tasks if they can.

If you’re marketing a product or an idea to a group of people and you juxtapose two ideas--one obvious and simple while the other is challenging and subtle, you can bet the mass of people will grab the first one (if they don’t ignore you altogether).

Example: it’s easy to get people to wake up early on the day after Thanksgiving if you offer them a TV at a discount, the way Wal-Mart does every year. It’s a lot trickier to challenge consumers to figure out which one of the eighteen refrigerators you offer is likely to offer the best price/performance ratio.

The first task requires nothing much but effort and that effort is likely to be rewarded. The second task takes judgment, and the opportunity for failure is much higher.

If you’re a teacher and you give your third graders instructions for an essay, the motivated ones will listen. If you ask them for vivid, creative writing, and also let them know it must be five sentences long, in blue ink and with not one word outside that little red line that marks the margin, guess what sort of work you’ll get back? Writing in your format is easy. Being vivid is hard. It’s easy to focus on the achievable, the measurable and the simple.

I thought of this as I braved the insanity of JFK for a quick JetBlue flight. The instructions to the TSA folks probably fill several looseleaf notebooks, but I imagine that they can be summarized as follows:
Volume 1: Identify suspicious people and be on the lookout for bad people and new and unimagined threats.
Volume 2: Stop anyone with liquid in their bag.

Guess which volume got read?

The guy in front of me got busted (aggressively) for having a 4 ounce can of shaving cream. Isn’t it OBVIOUS that the limit is 3 ounces? I could hear the TSA thinking, What’s going on here!! At the same time that scores of expensive, trained teams of inspectors were focusing on interdicting the forbidden liquids, no one cared very much about ID or travel history or what that item on the x-ray actually was.

The same thing happens on your website every day. Sure, if I work my way through the sitemap and pay attention to your carefully crafted copy, I’ll probably find exactly what I need. But it’s way more likely I’ll just click on that cute picture or leave the site altogether.

People want to feel successful, but they’re often unwilling to invest the time in doing something that might not pay off.  It’s not fair, but that’s the way it works.

When we create together

To me, a piece of art works best when it is not just a story served up for consumption. But actually, the audience takes some part in telling the story with the actors. Because when I see a great film or something, it is not just the film that strikes me, it is what it evokes inside me. What memories it brings, what images, what connections I make between my own experience and what I am seeing. So for me, when I think of the audience as they walk out, my hope would be that they are not talking about the play, but that they are talking about their own stories. To me, that would be the highest hope. That the audience thinks of the play as though it was their story too.
That's a quote from Julia Cho. She's a playwright and the author of a new play called Durango. You can catch it at New York's Public Theater up until December 10.

Artists have an amazing way of telling us how to we can live and work together. Personally, I really like this idea that the creative process begins somewhere, and then grows and evolves.

I have noticed something similar, working as a consultant with one of the “Big-4”. I have learnt that is doesn't help to show up with re-baked answers. People are generally not interested in being told what to do. Instead, they want to have a dialog about the challenges they face, and together, develop the right solution. Our job is to guide them through the process of coming up with the right answers for them. That kind of discourse takes time. The consultant helps drive the process (which often means just setting up the meetings), provides a neutral point of view, offers access to a broader information set and a different point of view. But, the consultant does not dictate the answer.

There are interesting parallels between these two insights, and this Enterprise 2.0 idea of emergent intelligence within an organization.

When a Chief Knowledge Officer tries to create a system for “capturing an organizations knowledge” they have instantly failed because it is the dialog that is most important; not the knowledge. Large organizations need help facilitating the process of creation. Knowledge can fall out as a positive externality, but it shouldn't be the end goal unto itself.

To focus only on knowledge would be like a consultant dictating the answers, or a playwright who was not interested in having the audience connect the emotions and insights of a play with their own stories.

Rather than ultimate control, one should seek and facilitate ultimate communication.

Sleep Deficit: The Performance Killer

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I didn't purchase this article, but it sounds interesting.

Companies today glorify the executive who logs 100-hour workweeks, the road warrior who lives out of a suitcase in multiple time zones, and the negotiator who takes a red-eye to make an 8 a.m. meeting. But to Dr. Charles A. Czeisler, the Baldino Professor of Sleep Medicine at Harvard Medical School, this kind of corporate behavior is the antithesis of high performance. In fact, he says, it endangers employees and puts their companies at risk.
I've been using the Sleeptracker watch for about a month now, and my sleep has definitely gotten better. I focus much better and pay less attention to distractions when I am rested. The challenge I have is that I sleep better when I don't stay on the computer the last hour before I go to bed. I'm a 10pm-5am sleeper, but I have problems shutting down the computer at 9pm.


Five Ways to Screw-Up a Good Idea


Don The Idea Guy:

Check out the “Five Ways to Screw-Up a Good Idea” below. I’m sure we’ve all been guilty of one or more of them at some point in our life. I know I am!

1. Flies The Coop:
You don’t write down the details of the idea, and it slips from your memory.

2. Failure to Launch:
You’ve captured the idea, but do absolutely nothing with it.

3. Fear of Loss: You’re not doing anything with the idea, but you’ll be damned if you’re gonna share the concept with anyone else for fear THEY will actually DO something with it.

4. Faulty Follow-Through: You actually make a concerted effort at putting the idea into action — but then you abandon it, half-finished.

5. Fades Away: The idea has been back-burnered for so long that its ‘born-on date’ has expired. The once fresh concept has gone bad — it’s spoiled. Your opportunity to profit from your creative idea has been spoiled by your lack of initiative. Others who may have had the same (or similar) thought put it into action and are reaping the rewards of their hard work while you’re just a little older and (hopefully!) a little wiser.

Photo by matchstick.


The Economist reviews four new books on innovation

mavericks%20at%20work.jpgIn search of the best books about innovation and entrepreneurship, The Economist reviews four important new books that might make some good holiday reading for that innovator on your shopping list:

(1) Joe Ellis and the Creation of Xerox - "Chester Carlson's invention of xerography would never have become the hugely profitable Xerox photocopying business were it not for what Charles Ellis calls the “extreme entrepreneurship” of Joe Wilson."

(2) Mavericks at Work: Why the Most Original Minds in Business Win - "A pivotal work in the tradition of In Search of Excellence and Good to Great and featuring many of today's most interesting corporate rising stars. These are companies that blend the revolutionary zeal of the late 1990s dot-com era with an emphasis on values in a way that has set them apart from the ethical crisis gripping American business in the first years of this century."

(3) Outside Innovation - "Patricia Seybold focuses on the potential for using customers more in the innovation process... She does a decent job of justifying her Martin Lukes-esque subtitle, “How Your Customers Will Co-Design Your Company's Future”. Her case studies cover a number of web-based companies and are written up with even more breathless enthusiasm than those of Mr. Taylor and Ms. LaBarre (authors of Mavericks at Work)."

(4) The Entrepreneurial Imperative: How America's Economic Miracle Will Reshape the World (and Change Your Life) - "Mr Schramm, who, as head of the Ewing Marion Kauffman Foundation in Kansas City pays for a lot of research into the subject, argues that America needs to do more to maintain its entrepreneurial edge. At the same time, it must promote the American model abroad as the centerpiece of its foreign policy—the global spread of wealth being the best recipe for national security."


ASIDE: In case you're wondering just exactly who Martin Lukes is, it's an inside joke about a character that appears in the Financial Times on a regular basis. Patty Seybold, author of Outside Innovation, explains the Martin Lukes reference on her Outside Innovation blog:

"For those who aren't loyal readers of the Financial Times, Martin Lukes is the main character of a hilarious email soap opera that runs every Thursday in the FT. I admit to being an addict--so much so that on a recent Thursday on which the column was inexplicably missing from my edition of the paper, I was miffed all day. Martin Lukes is delightfully depicted (by his creator, Lucy Kellaway) as a complete fool and idiot. He is particularly prone to coining over-the-top terms like "creovation" and to sexist and boorish, insensitive behavior. His escapades never cease to delight and amaze!"

How Google, Apple and Toyota increased their return on R&D;

Google, Apple, Toyota and 91 other global companies appear to have discovered an elusive elixir that enables them to spend less on R&D; than the norm while achieving a higher return on each R&D; dollar they spend. Such is indicated by the findings of Booz-Allen’s benchmark new report, “Smart Spenders: The Global Innovation 1000” . So – how do you mix up the secret elixir? Although Booz-Allen did not identify a single formula, it did find “several common themes among their strategies.” In a nutshell, those common themes involved strength in and coordination between four key links in the “innovation value chain.” The four links: 1. The ideation process (basic research and conception) 2. Project selection (the decision to invest) 3. Product development (in tune with the rest of the organization) 4. Commercialization (bringing the product or service to market and adapting it to customer demands). The key, quite simply, was to execute well on each of these four dimensions, and to make sure that they were tightly integrated. For the full report, click here!

Tech leaders gather for innovation summit

Bill%20Gates%20Charlie%20Rose.jpgThe third annual TechNet Innovation Summit took place this week on the campus of Stanford University, attracting some of the biggest names in the technology sector - including Bill Gates, Jerry Yang, and venture capitalist John Doerr. (Oh, and the Governator made a surprise appearance as well.) The four-hour event was staged as a live taping of "The Charlie Rose Show," episodes of which will appear at a later date. As the San Jose Mercury News explains, the event focused on how to compete during a period of rapid innovation and globalization:

"The third annual innovation summit, where industry leaders talked about emerging trends and government technology policy, was organized by TechNet, an advocacy group that lobbies on behalf of tech executives. Much of the discussion centered on how American companies and workers will compete in an era of rapid innovation and globalization.
"The United States has been spoiled by being a global leader for so long that there may be an adjustment," Gates told the audience of nearly 2,000, a mix of suit-and-tie executives and college students in hooded sweatshirts. "We've got to get used to the fact that our relative share of everything -- our ability to exercise unilateral decision-making, military power, and economic power -- won't be as out of line with our 5 percent share of world population as it is today.''

[image: Bill Gates chats with Charlie Rose]

Inventor Ray Kurzweil on TEDTalks

Ray Kurzweil

Inventor and futurist Ray Kurzweil illustrates the increasingly exponential evolution of technology, predicting a sharp rise in computing capability, robotics and life expectancy within the next 15 years. He outlines the shocking ways we'll use technology to augment our own capabilities, forever blurring the lines between human and machine. A prolific inventor, Kurzweil developed the first Optical Character Recognition (OCR) system, the first text-to-speech reader for the blind, one of the first speech-recognition systems, and numerous electronic instruments. He's written several books exploring the social impact of technology, including The Age of Spiritual Machines and The Singularity is Near: When Humans Transcend Biology

. (Recorded February 2005 in Monterey, CA. Duration: 23:41)

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Problems, Predicaments and Sleight of Hand


How many times have you heard organizational types talk about the need for problem-solvers? Or spout clichés about “dealing with the problems that confront us in this competitive environment?” Or saying that they “face many problems, which we will overcome, as we have overcome those in the past?” The sad fact is that problems are not the problem, so to speak. What really causes leaders and managers difficulty and heartache, not to mention most of their failures, are predicaments.

A problem, properly speaking, has a solution, You may not know what that solution is, nor even how or where to look for it, but you can be reasonably confident that it exists—somewhere.
A problem, properly speaking, has a solution, You may not know what that solution is, nor even how or where to look for it, but you can be reasonably confident that it exists—somewhere. Science has solved many problems and will likely solve many more in years to come. Technology has also solved some of our problems, such as how to handle vast amounts of data; how to transmit messages nearly instantly to anyone, anywhere in the world; and how to wake you up with a cup of coffee ready made, when you can’t afford a servant to make it for you, and your partner tells you to go jump in a lake when you hint that it might be his or her role to make it. Problems have solutions. If you characterize a manager or a leader as a problem-solver, you are saying that he or she is adept at finding and applying the necessary solution to deal with various workplace problems.

Now that’s a very useful skill, but it will only take you so far. While there are, indeed, many problems to be faced in the world of work, the most difficult, the commonest, and the most intractable problems are not problems at all, because they have no clear, graspable solution. They cannot be “solved” by any technique. They are not problems. They are predicaments.

. . . the most intractable problems are not problems at all, because they have no clear, graspable solution. They cannot be “solved” by any technique. They are not problems. They are predicaments.
Take the “problem” of succeeding in a competitive market. The way that we usually see organizations try to deal with this is by employing a series of assumed solutions, derived from the actions taken by fortunate companies who achieved success in similar situations in the past. That is why every successful product, marketing campaign, form of business organization, or approach to financing is copied within hours or days of the world registering its success. There is no bandwagon that others will not jump onto in the belief that what worked for others will work for them.

Of course, this approach does not work, either consistently or sometimes at all. If it did, no one would have any problem with competitive markets ever again. Not only does copying others contain the causes of its own failure (what everyone does no longer gives anyone a competitive advantage), but it assumes that what you think led to success (or what the happy organization said it did) actually did so. Most times, success was due to luck and an unexpected coming together of actions and reactions. Not only can no one else replicate it, even the company that was successful in the first place usually cannot repeat their own past good fortune either.

Just about all the fundamental “leadership” issues that beset organizations are . . . predicaments: situations that have no solution now—and never will have one, because they are not capable of being “solved” by any one set of actions.
So why doesn’t life play fair and do what it is supposed to do? If I could answer that, maybe I too could become a major guru and live in luxury for the rest of my days. What I can see, however, is that difficulties like dealing with competitive situations—along with just about all the fundamental “leadership” issues that beset organizations—are not problems at all. They are predicaments: situations that have no solution now—and never will have one, because they are not capable of being “solved” by any one set of actions.

Problems remain essentially the same. Predicaments constantly shift and change their details as “solutions” are tried. As soon as one business gains a competitive advantage, others copy it (so it is no longer unique or unusual), while others adapt their own actions to block it. Competitive advantages are, by their very nature, temporary. And since the universe changes constantly in random ways, any source of competitive advantage today will likely become worthless—even potential a drawback—within a short time. Replacing people by machines and computers once gave an advantage. Now everyone does it, so organizations who use actual people in certain areas, like answering customer service calls, find that an advantage instead. Then, with the coming of out-sourcing, the advantage comes from having the phones answered by someone who doesn’t sound as if they are in Mumbai.

Hamburger Management (the process of serving up whatever approach is quickest, simplest, and cheapest) is a curse because it negates every way of dealing with the predicaments of business life, turning each one into a problem for which there must be a known solution technique (even if there isn’t).
Predicaments are not solvable. All you or anyone can do is to try to cope with them as effectively as you can. And since any technique you apply that seems to work will very quickly produce a counter-technique, or a copy, or a random change in circumstances, the only two “tools” that remain useful again and again are time and thought: to have enough time to consider the options, plus the ability to reflect on whatever you can know of the circumstances and come up with a creative approach that may help for a while. Even that will fail in time, of course, so there can be no end to the need for either enough time or sufficient creative thought.

Hamburger Management (the process of serving up whatever approach is quickest, simplest, and cheapest) is a curse because it negates every way of dealing with the predicaments of business life, turning each one into a problem for which there must be a known solution technique (even if there isn’t). Like stage magicians and illusionists, Hamburger Managers rely on moving fast to confuse onlookers (and bosses) into believing that what they have just seen is truly magic. There’s no time to think or be creative. Just produce the next quarter’s numbers out of the top hat and get off the stage before anyone asks too many questions. Oh . . . and remember to clear away up the smoke and mirrors on your way.

If you demand impossible miracles on a daily basis, you’ll force people into being illusionists and confidence tricksters. All the other guys will fail and be removed.
As I’ve said many times before, I don’t blame these managers. Organizations get the managers they deserve, based on the culture they nurture. If you demand impossible miracles on a daily basis, you’ll force people into being illusionists and confidence tricksters. All the other guys will fail and be removed. Any organization that systematically denies people the time and opportunity to work out how to cope with business predicaments, will cause frustration, stress, and a sense that all that truly matters is to seem to be doing something useful—even if you know that it’s all illusory and based on luck and some creative use of data. Tomorrow you may not be around to worry, and it will be your successor (who will denigrate everything you did anyway) who has to clean up the mess.

Just Ask the Customer

Dharmesh Shah has a great post about how start-ups kill themselves.

One of the methods he describes is Death By Doing Nothing: 

When I say “doing nothing”, what I really mean is “doing nothing that is creating value for customers”.  I am constantly amazed by how many creative ways founders can find to do things that have the illusion of moving their startup forward, but that has almost nothing to do with creating value for customers.  Let’s design this fancy website.  What about our business cards!  What about this 120 page business plan?  Surely we have to think through competitive analysis to make sure we build the right product.  Don’t get me wrong, all of these things are important – but they are all trumped by the single act of creating customer value.  If you don’t know how to create value:  ask the customer!

Just ask the customer.

There are two interesting Web 2.0 ways to do this:

  1. Hold a contest such as mydreamapp.   Get end users to design mock-ups of the application, and then vote on which version / feature they want.
  2. Give end users the tools to build their own applications.

November 21, 2006

Introducing the innovation radar

Mohanbir%20Sawhney.JPGBased on his research into the innovation habits of FORTUNE 500 companies such as Boeing, Microsoft and DuPont, Mohanbir Sawhney, director of Kellogg School of Management's Center for Research in Technology and Innovation, in collaboration with Kellogg fellows Robert C. Wolcott and Inigo Arroniz, is developing a new innovation management tool known as the Innovation Radar. The tool was first described in the Spring 2006 MIT Sloan Management Review:

"The radar features four major dimensions that serve as business anchors: (1) Offerings a company creates (WHAT) (2) Customers it serves (WHO) (3) Processes it employs (HOW) and (4) Points of Presence it uses to take its offerings to market (WHERE).
Spread over these 4 main dimensions, companies can innovate their businesses far broader in scope than product or technological innovation: a company can actually innovate along any of 12 different dimensions... The innovation radar can help to broaden the innovation focus in companies and to show that innovation is about creating new value, not about creating new products."

[image: Mohanbir Sawhney]

Don't wait for the muse

Waitingmuse_1

Yet another benefit of constraint-driven creativity is that you don't have time to wait for the muse to show up. And as film critic Roger Ebert told an audience of would-be filmmakers and musicians, "The muse never shows up at the beginning." You have to start doing something and trust the muse will follow, not the other way 'round.

I came across this Federico Fellini quote today, and it seemed to echo what others have been saying about everything from software design to business ideas:

"I don't believe in total freedom for the artist. Left on his own, free to do anything he likes, the artist ends up doing nothing at all.

If there's one thing that's dangerous for an artist, it's precisely this question of total freedom, waiting for inspiration and all the rest of it."

It's from a book I'm enjoying called Hillman Curtis on Creating Short Films for the Web (there's a short review of the book on Speak Up)

My favorite tool for creativity-on-demand is still mind-mapping. You start with that one circle in the center and draw/write as quickly as you can. The more you think, the less effective it is. You'll always find things on the paper you didn't expect... things you didn't know were in your head. But whatever you use, and whether you're writing, drawing, composing, coding, designing, whatever... just DO something. Or as Ray Bradbury put it in another quote from the book:

Life is "trying things to see if they work."

You can't try things if you're waiting for the muse to show up first. And if you want inspiration, it's everywhere including:

Creative Component blog

Billy Harvey

Speed of Creativity

Drawn!

Hugh, of course

Evelyn Rodriguez

TED blog

DIY Planner

Vera Bass

Presentation Zen

David Seah

MAKE blog

Brand Autopsy

Josh Spear

you didn't think I'd get out of this without mentioning Signal vs. Noise, did you?

Urban Retro Lifestyle

Threadless

Creative Think

Cute Overload
[visit at your own risk]

... and about 20 gazillion more.

Please comment with any website, book, movie, blog, whatever that you use for a creativity jolt. Nothing is off-limits, and PLEASE don't hesitate to do a little shameless self-promotion if you think your blog or site might help someone else (just be sure to give us a sentence about it).

Microsoft is looking for the winning idea

Microsoft%20ideaWins.jpgAs part of a search for the most creative small business idea in the country, Microsoft has launched the ideaWins contest. The contest has been designed to spur the imagination and spirit of entrepreneurial activity that drives small business, with winners receiving $100,000 in cash and free retail space in New York City, as well as infrastructure and software to run the business for 12 months. Plus, as an added bonus, every participant in the Microsoft-sponsored contest will receive a free Microsoft Office Accounting Express 2007 software package. The deadline for submissions is January 31, 2007.


[image: Microsoft ideaWins]

New Book: How to Spread Rumors and Gossip



I heard that there's a new book called Rumor Psychology and that it talks about the difference between rumor and gossip and how their accuracy depends on particular circumstances. I