by Robyn Bolton | Aug 2, 2022 | Innovation
You know that innovation is essential and why it is essential.
But do your colleagues share your views?
They probably don’t, which creates a huge stumbling block in your innovation efforts.
Just like it’s essential to agree on what “innovation” is, it’s also crucial to agree on why it’s important, what it must deliver, and by when.
This step may seem silly, after all, everyone knows that innovation is essential. But skipping it will lead to misunderstanding, missed expectations, and, ultimately, the end of your innovation efforts as senior executives grow increasingly confused and frustrated by your activities and results (or lack thereof).
Don’t believe me?
Why companies innovate
Following (in no particular order) are the most common reasons senior executives give me for investing in innovation:
- We need revenue growth
- Shareholders expect us to say something about it
- We risk losing our reputation as an innovative company
- It’s hard to recruit and/or retain talent if we’re not seen as innovative
- We need the PR
- Our CEO attended an event/read a book/saw an article/had a conversation
What do you notice about the list?
Only one of the reasons, “we need revenue growth,” is tied to a business strategy and metric,
The other reasons focus either on managing perceptions or keeping people happy.
Of course, companies can invest in innovation for several reasons, but there is always one that is more important than the others. One reason will ultimately become the metric against which innovation efforts are judged, and success or failure is decided.
Why you need to know Why
Imagine that you see a $100M growth gap (difference between what current offerings can deliver and future expectations) and view innovation as essential to closing that gap. You present this insight to senior leaders and, now sharing your concern, they agree to invest $1M and two full-time employees (both internal transfers) for the next fiscal year.
You and your team hit the ground running. Together, you set up a basic innovation process, send the team out to talk to customers and study the market with an eye to untapped opportunities, and build relationships across other functions to ensure you have support when you need it.
By the end of Year 1, your team identified several multi-million-dollar opportunities, prototyped and tested dozens of concepts, and built business cases for five new brands capable of closing the revenue gap.
The progress is impressive, especially considering it happened within a context of higher-than-expected employee turnover, increasing competition from old and new companies, and an unreliable and unpredictable supply chain.
This is why you are crushed when senior leaders thank you for your efforts, say they’ll consider your recommendations, then cut your budget and re-assign your team.
As you and your team doggedly worked to close a revenue gap, senior leaders’ priorities changed to defending the current business and reputation, and they need news and new products now, not in three years.
Can innovation help with all that? Of course! But senior leaders didn’t realize that, and while you were busy working, they began implementing solutions to their most pressing pain points.
How to find the Why
Ask early.
At the start, have a conversation with key decision makers and stakeholders, especially the people who are allocating resources to your innovation endeavor.
Ask 3 questions:
- How do you define innovation?
- Why is innovation important to our business?
- What does innovation need to deliver, and by when?
You will likely get long, rambling answers to each question because (1) the answers seem self-evident, so the person you’re talking to never stopped to collect and clarify their thoughts before you asked these questions, and (2) long answers keep options open.
Ask follow-up questions that narrow down the options (you can’t be and do everything, and you certainly don’t have the resources to try!)
- If you had to pick 2-3 as the most important, what would you pick?
- If you had 100 chips to allocate across (give the list of items), how would you distribute them?
- If I could only do two things, what would they be?
Don’t force them to pick one thing, the fear of being wrong will overwhelm them, and they won’t do it. But do force them to prioritize because, in reality, not everything is equally important.
Ask often.
The world and your business change constantly, so don’t assume that last quarter’s priority is this quarter’s. At least once a quarter, ask your three questions again:
- How do you define innovation?
- When we last spoke, you said these 1-3 things were most important. Is that still the case?
- When we last spoke, you said that innovation needs to deliver X by Y. Is that still the case?
The answers to each of these questions will tell you whether you’re working on the right types of innovation capable of delivering needed results within the required timeframe. If you are, great! If you aren’t, take the time to re-align by resetting expectations or refocusing your work.
Why not?
Most of us don’t ask these questions.
We’re too excited by our new mandate to finally do something new. We’re afraid that if we ask too many questions, our luck will evaporate, and we’ll lose our mandate. We’re worried that if we ask again, we’ll experience executive whiplash – expectations that change so rapidly that real progress can’t be made, and results are never delivered.
But fear creates the opportunity to be brave, and by asking these questions early and often, you get information that helps you make better decisions about your work and career.
So why not ask why?
by Robyn Bolton | Jul 24, 2022 | Customer Centricity, Innovation, Leadership, Metrics, Stories & Examples, Strategy
Many years ago, Clay Christensen visited his firm where I was a partner and told us a story*.
“I imagine the day I die and present myself at the entrance to Heaven,” he said. “The Lord will show me around, and the beauty and majesty will overcome me. Eventually, I will notice that there are no numbers or data in Heaven, and I will ask the Lord why that is.”
“Data lies,” the Lord will respond. “Nothing that lies can be in Heaven. So, if people want data, I tell them to go to Hell.”
We all chuckled at the punchline and at the strength of the language Clay used (if you ever met him, you know that he was an incredibly gentle and soft-spoken man, so using the phrase “go to Hell” was the equivalent of your parents unleashing a five-minute long expletive-laden rant).
“If you want data, go to Hell.”
Clay’s statement seems absolutely blasphemous, especially in a society that views quantitative data as the ultimate source of truth:
- “In God we trust. All others bring data.” W. Edward Deming, founding Father of Total Quality Management (TQM)
- “Above all else, show the data.” – Edward R. Tufte, a pioneer in the field of data visualization
- “What gets measured gets managed” – Peter Drucker, father of modern management studies
But it’s not entirely wrong.
Quantitative Data’s blessing: A sense of safety
As humans, we crave certainty and safety. This was true millennia ago when we needed to know whether the rustling in the leaves was the wind or a hungry predator preparing to leap and tear us limb from lime. And it’s true today when we must make billion-dollar decisions about buying companies, launching products, and expanding into new geographies.
We rely on data about company valuation and cash flow, market size and growth, and competitor size and strategy to make big decisions, trusting that it is accurate and will continue to be true for the foreseeable future.
Quantitative Data’s curse: The past does not predict the future
As leaders navigating an increasingly VUCA world, we know we must prepare for multiple scenarios, operate with agility, and be willing to pivot when change happens.
Yet we rely on data that describes the past.
We can extrapolate it, build forecasts, and create models, but the data will never tell us with certainty what will happen in the future. It can’t even tell us the Why (drivers, causal mechanisms) behind the What it describes.
The Answer: And not Or
Quantitative data Is useful. It gives us the sense of safety we need to operate in a world of uncertainty and a starting point from which to imagine the future(s).
But, it is not enough to give the clarity or confidence we need to make decisions leading to future growth and lasting competitive advantage.
To make those decisions, we need quantitative data AND qualitative insights.
We need numbers and humans.
Qualitative Insight’s blessing: A view into the future
Humans are the source of data. Our beliefs, motivations, aspirations, and actions are tracked and measured, and turned into numbers that describe what we believed, wanted, and did in the past.
By understanding human beliefs, motivations, and aspirations (and capturing them as qualitative insights), we gain insight into why we believed, wanted, and did those things and, as a result, how those beliefs, motivations, aspirations, and actions could change and be changed. With these insights, we can develop strategies and plans to change or maintain beliefs and motivations and anticipate and prepare for events that could accelerate or hinder our goals. And yes, these insights can be quantified.
Qualitative Insight’s curse: We must be brave
When discussing the merit of pursuing or applying qualitative research, it’s not uncommon for someone to trot out the saying (erroneously attributed to Henry Ford), “If I asked people what they wanted, they would have said a horse that goes twice as fast and eats half as much.”
Pushing against that assertion requires you to be brave. To let go of your desire for certainty and safety, take a risk, and be intellectually brave.
Being brave is hard. Staying safe is easy. It’s rational. It’s what any reasonable person would do. But safe, rational, and reasonable people rarely change the world.
One more story
In 1980, McKinsey predicted that the worldwide market for cell phones would max out at 900,000 subscribers. They based this prediction on solid data, analyzed by some of the most intelligent people in business. The data and resulting recommendations made sense when presented to AT&T, McKinsey’s client.
Five years later, there were 340,213 subscribers, and McKinsey looked pretty smart. In 1990, there were 5.3 million subscribers, almost 6x McKinsey’s prediction. In 1994, there were 24.1M subscribers in the US alone (27x McKinsey’s global forecast), and AT&T was forced to pay $12.6B to acquire McCaw Cellular.
Should AT&T have told McKinsey to “go to Hell?” No.
Should AT&T have thanked McKinsey for going to (and through) Hell to get the data, then asked whether they swung by earth to talk to humans and understand their Jobs to be Done around communication? Yes.
Because, as Box founder Aaron Levie reminds us,
“Sizing the market for a disruptor based on an incumbent’s market is like sizing a car industry off how many horses there were in 1910.”
* Except for the last line, these probably (definitely) weren’t his exact words, but they are an accurate representation of what I remember him saying
by Robyn Bolton | Jul 21, 2022 | Podcasts
by Robyn Bolton | Jul 20, 2022 | Leadership, Tips, Tricks, & Tools
All eyes are on you,
You have the data. You heard everyone’s opinions. Now it’s time to decide.
Which projects get funding?
How will headcount change?
What projects are “deprioritized?”
You know that making tough decisions is the essence of leadership, but you’re starting to wonder if maybe life wouldn’t be a whole lot easier if you just stood up, walked out, and moved to a hut on a remote island and ate mangos and fish the rest of your life.
You make 35,000 decisions each day, and some of those decisions are really tough.
They’re tough because you don’t have enough data to be 100% certain of the answer. Or because everyone has a different opinion on what the correct answer is. Or because the consequences, even if you’re right, are breathtakingly high.
But these aren’t the reasons people struggle, even resist, making decisions. After all, you worked hard to get to a position where you could make these decisions.
Decisions are tough because when you say “Yes” to one thing, you’re saying “No” to something else.
Say No to Loss Aversion
When you say “No,” your brain doesn’t focus on what you gained (clarity, resolution). It focuses on what you lost.
This is called Loss aversion, and it’s a common cognitive bias that leads people to do anything they possibly can to avoid losses. Because when your brain focuses on loss, the pain you feel is twice as intense as the pleasure you feel from what you gained.
That’s why when you choose between two equally strategic projects (because you don’t have the resources to launch both), each projected to generate $100M in revenue, you feel like you lost $200M instead of gaining $100M.
Say Yes to Easier Decisions
You can’t make tough decisions, like stopping projects, easy. But you can make them easier.
1. Communicate how you will decide BEFORE starting any work
“I’ll know it when I see it,” is lazy and selfish. It’s lazy because it shows that you haven’t thought through the issue or understand the implications. It’s selfish because you’re forcing your team into a guessing game in which they must do all the work, hoping that they collect the data you need.
If you know how you’ll make the decision, tell the team, saving them time and energy collecting the inputs you need.
If you think you know how you’ll decide but want to preserve the option to consider other inputs, tell your team, “I expect to make a decision based on x, y, and z, but I’m also open to other factors.”
If you don’t know how you’ll make the decision, maybe the decision doesn’t need to be made.
2. Understand if and how the decision can change
Some decisions are forever, and some can be changed. Getting a tattoo is a Forever Decision (yes, you can have it removed later, but it’s painful, expensive, and time-consuming). Getting a body piercing is a For Now Decision (pull out the stud, and you’re set).
What type of decision are you making? A Forever Decision or a For Now Decision? What would cause you to change your mind if it’s a For Now Decision?
Answering these questions helps everyone understand the stakes and avoid surprise and confusion if something changes. And it takes a bit of pressure off your shoulders, too.
3. Reflect and respect the deadline
If you rush into a decision, you’re more likely to make a superficial or short-sighted decision. If you take too long, you may miss an opportunity.
If you don’t have a deadline to make a decision, give yourself one and stick to it. Yes, the deadline may move back, giving you more time. But it may also move up, giving you less. Hope for the best (more time), plan for the worst (less time), and act with what you’ve got.
Then schedule at least a few days between receiving the needed information and making a decision. Doing so gives you time to reflect, ask questions, and follow up with people. It also gives your brain time to work its magic and produce A-Ha! moments.
One more decision
Some decisions are easy.
Some are incredibly tough.
226.7 decisions involve food.
Decide to make the tough ones easier.
by Robyn Bolton | Jul 12, 2022 | Innovation, Leadership, Tips, Tricks, & Tools
What are some of the things you know you should do, but you don’t?
- Eat five servings of vegetables each day
- Take a multivitamin
- Do 10 minutes of cardio daily
Why not?
- Vegetables don’t taste as good as pizza.
- Multivitamins don’t affect how you feel today (or tomorrow or next month)
- You don’t have time for the 45 minutes that 10 minutes of cardio actually takes (changing into workout clothes, doing cardio, showering after)
It’s ok. I get it. Heck, I say all the same things.
What about the other things you know you should do but don’t?
- Invest in innovation
- Invest regularly, not just when business is good
- Invest repeatedly because it’s a key driver of revenue growth and competitive advantage
Guess what, the reasons you’re not doing it are similar to why you’re not eating vegetables, taking a multivitamin, or sprinting through your neighborhood:
- Innovation is so much more uncertain and complex than running your day-to-day business
- Innovation doesn’t affect your bottom line this quarter (or this year or next)
- You don’t have time because you’re focused on putting out fires and operating today’s business
It’s ok. We all get it. Heck, I’m absolutely sure we all have the same reasons.
How to Turn Shoulds Into Dids
What can we do about all this? After all, the first step is acknowledging you have a problem (or, at least, aren’t doing something you know you should).
1. Start Small.
It’s not practical (or yummy) to go from zero servings of vegetables to five, so don’t. Try going from zero to one and find a one you like (not just tolerate).
Same thing with innovation. Don’t go from no investment to standing up an entirely new team in new fancy offices with massive budgets. Find a nagging problem that annoys everyone and, if it can be solved, will produce tangible and meaningful results. Tap a few people to work on it full-time, give them a small budget, and a short timeframe within which to make progress (not solve the entire problem), and check in weekly.
2. Piggyback on another habit
A multivitamin won’t change how you feel today, but it could change how you feel years from today. But trying to remember to take a multivitamin every day is mentally exhausting. So try to work your multivitamin into an already existing daily habit. Do you have prescriptions you take every day? Put the vitamin bottle next to those. Stare at the coffee maker waiting for it to finish? Put the vitamins next to it, so you take them while staring.
Same thing with innovation. You have teams in your organization consistently working to make your products and processes better, faster, and cheaper. Have them teach others how to do what they do. You have business leaders projecting ever-increasing revenue. Ask them to explain what needs to happen to make that growth possible and how it will occur. Then invest in the people, skills, and resources required.
3. Say what you mean (even if it’s super uncomfortable)
If it’s important, you make time. After all, research proves that “I don’t have time” means “it’s not a priority. If having great cardio was really important to me (it is), I would make time to run (I don’t). In other words, great cardio is important, but it’s not a priority (or not a higher priority than binging Stranger Things).
When an innovation team asks for time on your calendar, don’t tell them you don’t have time. Be honest and tell the team they’re not a priority or a lower priority than the other things you’re spending time on. Harsh? Yes. Helpful. Absolutely! This level of honesty gives the innovation team a clear sense of what they’re competing against for scarce resources, the bar they have to clear to rise up your priority list, and a starting point from which to work with you to get what they need in a way that works for you.
You can do it
Shoulds fill our lives. But they’re not all equal and won’t all become dids.
If a should is essential, we’ll find a way to make it happen. It won’t be easy, but it is possible. If a should isn’t essential or as important as other shoulds, it will stay a should.
Maybe that’s ok. Maybe it’s not. Maybe I’ll regret choosing fries over mixed veggies as a side.
We’ll know someday.
