by Robyn Bolton | Nov 30, 2022 | Innovation, Leadership, Strategy
“What business are you in?”
How do you answer this all-too-common question?
Do you name the company you work for?
The industry you’re in?
The function you perform?
Bad news, your business isn’t defined by the company, the industry, and even your function.
Good news, the business you’re in is defined by your customers.
And their definition unlocks incredible potential for innovation and growth.
The 2:00 am Answer
In my first few months as an Assistant Brand Manager at P&G, I had a truly terrifying experience. Sitting in a training session, a senior executive locked eyes with me and asked, “What is Brand Equity?”
My first thought was, “you tell me, buddy. I’m the newbie here.” My second thought, and the one that came out of my mouth, was probably something straight out of a marketing textbook.
“Wrong!” he exclaimed. “Brand equity is what a consumer says if you wake them up from a dead sleep at 2:00 am and scream ‘What is [brand]?’ in their face.”
I don’t know what scared me more, being yelled at for being wrong or the idea that breaking and entering and screaming brand names at unsuspecting sleepers was suddenly part of my job description.
The 2:00 am Answer is the business you’re in
The 2:00 am answer applies to more than just brand equity.
It reveals the business you’re in.
Because it’s the Job to be Done your customers hire you to do
As the training went on, we learned how this mantra manifests in everything a brand (or company) does – its products, pricing, packaging, distribution, and marketing.
For example, if the most important thing to you about laundry is that clothes come out of the washing machine clean, you have dozens of options and probably buy the cheapest one.
But, if you want to be sure that clothes will be immaculate after the first wash because you know your kids will wear anything, even if it has stains, which will lead the other parents to judge you, you have one option – Tide.
Why the 2:00 am Answer matters
The 2:00 am Answer also defines where you have a right to play and to win.
Sometimes this space is bigger than you expect, revealing incredible opportunities for innovation and growth.
Sometimes it’s smaller than you want, exposing a strategic misalignment between what you offer and what your customers want. This happened to LEGO and took the company to the brink of bankruptcy.
In 1998, LEGO posted its first loss in company history. To reinvigorate growth, it shifted from being in the business of Toys to being in the business of Play. This led to two decisions that, while strategically aligned with Play, almost bankrupted the company. First was the introduction of new toys specifically designed to be built in less than 10 minutes so kids could start playing quickly. The second decision took LEGO into other aspects of play – video games, amusement parks, and a TV show supported by a line of action figures.
In 2003, LEGO reported a $238M loss, and with only one profitable product line, the future was bleak. So, LEGO started talking to customers (though probably not at 2:00 am). Through the conversations, LEGO learned that its expansion into all forms of play and the prioritization of Play over creation (building) wasn’t LEGO-y in the minds of consumers. So they rejected the new offerings. Instead, people loved LEGO because it offered “creative play” – the freedom and ability to turn ideas into tangible and interactive 3D models.
LEGO listened and went “back to the brick.” The results speak for themselves. In 2015, LEGO overtook Ferrari to become the world’s most powerful brand. In 2021, LEGO earned $8.06B in revenue, a 27% increase from the prior year.
How to get and use the 2:00 am Answer (without committing a felony)
First, get clear on the business you WANT to be in. Ask yourself and your colleagues, what do we want our customers to hire us to do? Push beyond the easy and obvious answers (usually functional Jobs to be Done). How do you want customers to feel after hiring your company (emotional Jobs to be Done)? How do you want them to be perceived (social Jobs to be Done)? What Job to be Done do you want to do uniquely well?
Second, talk to your customers one-on-one at a time and place of their choosing. Ask them why they hire your business. Again, push beyond the easy and obvious answers to understand what they want to feel and be perceived after choosing you. Ask what other options they considered and why they hired your business.
Find and close the gap. What’s the difference between what you wanted to hear and what you actually heard? If the gap is bigger than expected, how can you expand and innovate your business to grow into all the Jobs people want to hire you to do? If the gap is smaller, how can you shift or redirect efforts to grow in ways where you have permission to operate?
The 2:00 am Answer can be the key to defining, growing, and transforming your business.
Who says nothing good happens after midnight?
by Robyn Bolton | Nov 22, 2022 | Podcasts
by Robyn Bolton | Nov 17, 2022 | Innovation, Just for Fun
You know ALL the innovation tools and frameworks:
- Design Thinking
- Lean Startup
- Disruptive Innovation
But knowing and doing are two different things. When I first learned Jobs to be Done, it felt painfully obvious, exactly like the customer research I did for five years at P&G. Then I had to do it (conduct a Jobs to be Done interview), and it was difficult (ok, it was a disaster).
And teaching others to do it is a third entirely different thing. Because by the time you have the skills and expertise to teach others, you’ve forgotten what it was like to start from the beginning.
It’s easy to forget that before you can read a sentence, you must know how to read a word. Before you can read a word, you must recognize a letter.
So let’s go back to basics. Back before the methodologies. Before the frameworks. Before the theories. Let’s go back to the letters and words that are Innovation’s essence.
Let’s go back to the Innovation Alphabet.
Assumptions, every innovation has them, and every innovator tests them to reduce risk
Brainstorming, a great way to get lots of ideas and maybe even some new ones
Customers, the people we innovate for
Disruptive Innovation, cheaper, lower quality products that appeal to non-consumers
Experiments, how you test assumptions and reduce risk
Fun, what innovation should be
G
Hope, it springs eternal in the heart of every innovator
Ideas, where most innovations start
Jobs to be Done, the problems people have/the progress they want to make (and the hill I will die on)
K
Leadership, the most crucial element in innovation (and often the biggest barrier)
Mistakes, how we learn, grow, and make progress
No, the start of a conversation, not the end
Opportunities, a nice term for “problem”
Problems, where all innovations should start
Quiet, what we sometimes need to think big and create something new
R
S
Team, how innovation gets done
Uncomfortable, what innovation should make you (especially if you’re a senior executive)
V
W
X
whY, the one question you can never ask enough
Zzzz, what you finally get to do when you’ve changed the world
As you can see, some letters still need words. What should they be?
Are there better words for some letters?
Let me know in the comments!
by Robyn Bolton | Nov 9, 2022 | Articles
by Robyn Bolton | Nov 9, 2022 | Innovation, Leadership, Tips, Tricks, & Tools
“What had a bigger impact on the project? The process you introduced or the people on the team?”
As much as I wanted to give all the credit to my brilliant process, I had to tell the truth.
“People. It’s always people.”
The right people doing the right work in the right way at the right time can do incredible, even impossible, things. But replace any “right” in the previous sentence, and even the smallest things can feel impossible. A process can increase the odds of doing the right work in the right way, but it’s no guarantee. It’s powerless in the hands of the wrong people.
But how do you assemble the right group of people? Start with the 3 Ts.
Type of Innovation
We’re all guilty of using “innovation” to describe anything that is even a little bit new and different. And we’ve probably all been punished for it.
Finding the right people for innovation start with defining what type of innovation they’ll work on
- Incremental: updating/modifying existing offerings that serve existing customers
- Adjacent: creating new offerings for existing customers OR re-positioning existing offerings to serve new customers
- Radical: new offerings or business models for new customers
Different innovation types require teams to grapple with different levels of ambiguity and uncertainty. Teams working on incremental innovations face low levels of ambiguity because they are modifying something that already exists, and they have relative certainty around cause and effect. However, teams working on radical innovations spend months grappling with ambiguity, certain only that they don’t know what they don’t know.
Time to launch
Regardless of the type of innovation, each innovation goes through roughly the same four steps:
- Discover a problem to be solved
- Design solutions
- Develop and test prototypes
- Launch and measure
The time allotted to work through all four steps determines the pace of the team’s work and, more importantly, how stakeholders make decisions. For example, the more time you have between the project start and the expected launch, the more time you have to explore, play, create, experiment, and gather robust data to inform decisions. But if you’re expected to go from project start to project launch in a year or less, you need to work quickly and make decisions based on available (rather than ideal) data.
Tasks to accomplish
Within each step of the innovation process are different tasks, and different people have different abilities and comfort levels with each. This is why there is growing evidence that experience in the phase of work is more important than industry or functional expertise for startups.
There are similar data for corporate innovators. In a study of over 100,000 people, researchers identified the type and prevalence of four types of innovators every organization needs:
- Generators (17% of the sample): Find new problems and ideate based on their own experience.
- Conceptualizers (19%): Define the problem and understand it through abstract analysis, most comfortable in early phases of innovation (e.g., Discover and Design)
- Implementers (41%): Put solutions to work through experiments and adjustments, most comfortable in later stages of innovation (Develop and Launch)
- Optimizers (23%): Systematically examine all alternatives to implement the best possible solution
Generators and Conceptualizers are most comfortable in the early stages of innovation (i.e., Discover and Design). Implementers and Optimizers are most comfortable in the later stages (e.g., Develop and Launch). The challenge for companies is that only 36% of employees fall into one of those two categories, and most tend to be senior managers and executives.
Taking Action
Putting high performers on innovation teams is tempting, and top talent often perceives such assignments as essential to promotion. But no one enjoys or benefits when the work they’re doing isn’t the work they’re good at. Instead, take time to work through the 3Ts, and you’ll assemble a truly terrific innovation team.
