The Cost of Silence: Why Neglecting New Hires’ Ideas Hurts Revenue

The Cost of Silence: Why Neglecting New Hires’ Ideas Hurts Revenue

Stop me if this sounds familiar. A new hire bounces into your office and, with all the joy and enthusiasm of a new puppy, rattles off a list of ideas. You smile and, just like with new puppies, explain why their ideas won’t work, and encourage them to be patient and get to know the organization. 

Congratulations!  You just cost your company money. Not because the new hire’s idea was the silver bullet you’ve been seeking but because you taught them that it’s more critical for them to do their jobs and maintain the status quo than to ask questions and share ideas.

If that seems harsh, read the new research from Harvard Business School professor Amy Edmondson.

Year 1: Rainbows and Unicorns (mostly)

From 2017 through 2021, Dr. Edmonson and her colleagues collected data from over 10,000 physicians.  Using biannual (every two years) surveys, they asked physicians to rate on a 5-point scale how comfortable they felt offering opinions or calling out the mistakes of colleagues or superiors. 

It was little surprise that agreement with statements like “I can report patient safety mistakes without fear of punishment” were highest amongst people with less than one year of service at their employer.

These results all come down to one thing: high levels of psychological safety.

Years 2+: Resignation and Unhappiness

However, psychological safety erodes quickly in the first year because:

  • There’s a gap between words and actions: When new hires join an organization, they believe what they hear about its culture, values, priorities, and openness.  Once they’re in the organization and observe their colleagues’ and superiors’ daily behavior, they experience the disconnect, lose trust, and shift into self-protection mode.
  • Their feedback and ideas are rebuffed: This scenario is described above, but it’s not the only one.  Another common situation occurs when a new hire responds to requests for feedback only to be met with silence or exasperation, a lack of follow-through or follow-up, or is openly mocked or met with harsh pushback
  • Expectations increase with experience: It’s easier to ask questions when you’re new, and no one expects you to know the answers.  Over time, however, you are expected to learn the answers and you no longer feel comfortable asking questions, even if there’s no way you could know the answer.

20 years to regain what was lost in 1

According to Edmondson’s research, it takes up to 20 years to rebuild the safety lost in the first year.

As a leader, you can slow that erosion and accelerate the rebuilding when you:

  • Recognize the Risk: Knowing that new hires will experience a drop in psychological safety, staff them on teams that have higher levels of safety
  • Walk the Talk: Double down on demonstrating the behaviors you want. Immediately act on feedback that points out a gap between your words and actions.
  • Ask questions: Demonstrate your openness by being curious, asking questions, and asking follow-up questions.  As Edmonson writes, “You are training people to contribute by constantly asking questions.”
  • Promises Made = Promises Kept: If you ask for feedback, act on it.  If you ask for ideas, act on some and explain why you’re not executing others.
  • Be Vulnerable: Admit your mistakes and uncertainties.  It sets a powerful example that it’s okay to be imperfect and to ask for help. It also creates an environment for others to do the same.

The Cost of Silence vs. The Cost of Time

Building and maintaining psychological safety takes time and effort.  It takes 5 minutes to listen to and respond to an idea.  It takes hours to ensure new hires join safe teams.  It takes weeks to plan and secure support for post-hackathon ideas. 

But how does that compare to 20 years of lost ideas, improvements, innovations, and revenue?  To 20 years of lost collaboration, productivity, and peak effectiveness? To 20 years of slow progress, inefficiency, and cost?

How many of your employees stick around 20 years to give you the chance to rebuild what was lost?

Why Adjacent Innovation is Your Key to Managing Risk and Accelerating Growth

Why Adjacent Innovation is Your Key to Managing Risk and Accelerating Growth

It’s not easy leading innovation.  Especially these days.  You need to do more with less.  Take risks while guaranteeing results.  Keep up with competition through incremental innovation and redefine the industry with radical and disruptive innovation.  It’s maddening.  Until you find the Goldilocks Zone of adjacent innovation.

Adjacent Innovation: From Middle Child to Just Right

As HBS Professor Regina E. Herzlinger and her co-authors point out in a recent HBR article, the US is in the midst of an innovation crisis. The cost of lost productivity, estimated at over $10 trillion between 2006 and 2018, is a stark reminder of the economic consequences of a lack of innovation. This figure, equivalent to $95,000 per US worker, should serve as a wake-up call to the importance of innovation in driving economic growth.

The authors identify the root cause of this loss as the ‘polarized approach companies take to innovation.’ While companies focus on incremental innovation, the safe and reliable oldest child of the innovation family, the VCs chase after radical, transformative innovations, the wild, charismatic, free-spirited youngest child.  Meanwhile, adjacent innovation – new offerings and business models fo existing customers or new customers for existing offerings and business models – is, like the middle child, too often overlooked.

It’s time to rediscover it.  In fact, it’s also time to embrace and pursue it as the most promising path back to growth.   While incremental innovation is safe and reliable, it’s also the equivalent of cold porridge. Radical or transformative innovation is sexy, but, like hot porridge, it’s more likely to scorch than sustain you. Adjacent innovation, however, is just right – daring enough to change the game and leapfrog the competition and safe enough to merit investment and generate short-term growth.

Proof in the Porridge: 4x the returns in ½ the time

Last year, I worked with an industrial goods company. Their products aren’t sexy, and their brands are far from household names, but they make the things that make America run and keep workers (and the public) safe. The pandemic’s supply chain disruptions battered their business, and their backlog ballooned from weeks to months and even years.  Yet amidst these challenges, they continued to look ahead, and what they saw was a $6M revenue cliff that had to be filled in three years and a product and innovation pipeline covered in dust and cobwebs.

From Day 1, we agreed to focus on adjacent innovation.  For four weeks, we brainstormed, interviewed customers, and analyzed their existing offerings and capabilities, ultimately developing three concepts – two new products for existing customers and one existing product repositioned to serve a new customer.  After eight more weeks of work, we had gathered enough data to reject one of the concepts and double down on the other two.  Three months later, the teams had developed business cases to support piloting two of the concepts.

It took 6 months to go from a blank piece of paper to pilot approval.

It took just another 12 months to record nearly $25M in new revenue.

Those results are more than “just right.”

Be Goldilocks. Pursue Adjacent Innovation

Every organization can pursue adjacent innovation.  In fact, most of the companies we consider amongst the world’s “Most Innovative” have that reputation because of adjacent innovation. 

How will you become your organization’s Innovation Goldilocks and use adjacent innovation to create “just right” growth?

The Surprising Downside of Collaboration in Problem-Solving

The Surprising Downside of Collaboration in Problem-Solving

You are a natural-born problem solver.  From the moment you were born, you’ve solved problems.  Hungry?  Start crying.  Learning to walk?  Stand up, take a step, fall over, repeat.  Want to grow your business?  Fall in love with a problem, then solve it more delightfully than anyone else.

Did you notice the slight shift in how you solve problems?

Initially, you solved problems on your own.  As communication became easier, you started working with others.  Now, you instinctively collaborate to solve complex problems, assembling teams to tackle challenges together.

But research indicates your instincts are wrong.  In fact, while collaboration can be beneficial for gathering information, it hinders the process of developing innovative solutions. This counterintuitive finding has significant implications for how teams approach problem-solving.

What a Terrorism Study Reveals About Your Team

In a 2015 study, researchers used a simulation developed by the U.S. Department of Defense to examine how collaboration impacts the problem-solving process. 417 undergrads were randomly assigned to 16-person teams with varying levels of “interconnectedness” (clarity in their team structure and information-sharing permissions) and asked to solve aspects of an imaginary terrorist attack scenario, such as identifying the perpetrators and target. Teams had 25 minutes to tackle the problem, with monetary incentives for solving it quickly.

Highly interconnected teams “gathered 5 percent more information than the least-clustered groups because clustering prevented network members from unknowingly conducting duplicative searches. ‘By being in a cluster, individuals tended to contribute more to the collective exploration through information space—not from more search but rather by being more coordinated in their search,’”

The Least Interconnected teams developed 17.5% more theories and solutions and were more likely to develop the correct solution because they were less likely to “copy an incorrect theory from a neighbor.”

How You Can Help Your Team Create More Successful Solutions

You and your team rarely face problems as dire as terrorist attacks, but you can use these results to adapt your problem-solving practices and improve results.

  1. Work together to gather and share information.  This goes beyond emailing around research reports, interview summaries, and meeting notes.  “Working together” requires your team to take action, like conducting interviews or writing surveys, with one another in real-time (not asynchronously through email, text, or “collaboration” platforms).
  2. Start solving the problem alone.  For example, at the start of every ideation session, I ask people to spend 5 minutes privately jotting down their ideas before group brainstorming.  This prevents copying others’ theories and ensures all voices are heard. (not just the loudest or most senior)
  3. Invite the “Unusual Suspects” into the process.  Most executives know that diversity amplifies creativity, so they invite a mix of genders, ages, races, ethnicities, tenures, and industry experiences to brainstorming sessions.  While that’s great, it also results in the same people being invited to every brainstorm and, ultimately, creating a highly interconnected group.  So, mix it up even more. Invite people never before invited to brainstorming into the process.  Instead of spending a day brainstorming, break it up into one-hour bursts at different times of the day. 

Are You Willing to Take the Risk?

For most of your working life, collaboration has been the default approach to problem-solving. However, this research suggests that rethinking when and how to leverage collaboration can lead to greater success.

Making such a change isn’t easy – it invites skepticism and judgment as it deviates from the proven “status quo” process.

Are you willing to take that risk, separating information gathering from solution development, for the potential of achieving better, more innovative outcomes? Or will you remain content with “good enough” solutions from conventional methods?