When I worked on P&G’s WalMart sales team, one of my bosses was a big guy with an even bigger personality. He shared his opinions loudly and broadly and one of his opinions was that we needed to stop using the word “breakthrough.”
“If I have to hear one more time about some new ‘breakthrough’ soap, I will throw you out of this office myself!” he would bellow.
Years later, I can’t help but wonder what he would think of the word “innovation.”
In May 2012, The Wall Street Journal published an article positing that, as the word “innovation” increased in usage, it decreased in meaning. The accompanying infographic said it all:
33,528: Times “innovation” was mentioned in quarterly and annual reports in the previous year
255: Books published in the last 90 days with “innovation” in the title
43%: Executive who say that their company has a Chief Innovation Officer or similar role
28%: Business schools with “innovation,” “innovate,” or “innovative” in their mission statements
That may seem like a lot but, remember, that data is nearly 8 YEARS OLD!
The desire for and investment in Innovation in all its forms – accelerators, incubators, startup/venture studios, corporate venture capital teams – has only grown since 2012.
While this may seem like a good thing, the fact that the success rate of innovations hasn’t changed, means that most people react to “innovation” the same way my boss reacted to “breakthrough” – if you bring it up, they throw you out.
To avoid getting thrown out of offices, one of the first thing I do with my clients when we begin working to build innovation into an enduring capability within their companies, is re-establish what innovation is and is not.
Innovation IS something different that creates value.
When people hear the term “innovation,” they tend to think of new-to-the-world gadgets that fundamentally change how we live our lives. Yes AND it’s many other things, too. Let’s break down the definition:
“Something” includes products and technology, it also includes services, processes, revenue models, and loads of other things. Consider this, many would argue, quite convincingly, that the Toyota Production System was one of the biggest innovations of the 20th century
“Different” often surprises people. After all, even Merriam Webster defines innovation as “something new.” But here’s the thing, one of the most commonly cited innovations, the iPhone, wasn’t “new.” Even Steve Jobs admitted it when he said, in his keynote speech, that Apple was introducing three products – a widescreen iPod with touch controls, a mobile phone, and an internet connected device. The iPhone was, however, different because it combined those three devices into one.
“Creates value” is probably the most important part of the definition. All innovations solve problems. Solving problems creates value. If you solve a big problem, either because it’s a problem lots of people have or it’s a very painful problem a few people have or something in-between, you create a lot of value for others and for yourself.
Innovation IS NOTa one-size-fits-all term.
Think of it this way, both a Kia and a Maserati are cars, but you wouldn’t expect to pay Kia’s price tag and get a Maserati (and vice versa). Similarly, both a convertible and a pick-up truck are automobiles, but you wouldn’t use your convertible to carry building equipment to a construction site.
With a definition as broad as the one above, it’s possible for “innovation’ to become even more meaningless as it gets applied to more things. That’s why it’s important to identify different types of innovation.
There’s no universally accepted set of innovation types, which is why I recommend companies consider defining at least three types that reflect their business and forward-looking strategies.
One of the most common set of innovation categories is based on the degree of change required for implementation:
Core Innovation requires minimal or no change to the current business model (customers, offerings, revenue model, resources and processes). Also known as Continuous or Incremental Innovation, this is the unglamorous but deeply important work of constantly improving what you do and how you do it.
Adjacent Innovation changes a significant change to at least one element of your business model. It could be changing who you serve, like expanding from interventional cardiologists to general cardiologists, what you offer, like P&G’s expansion into “durable goods” when it launched Swiffer, or how you offer or deliver it.
Radical innovation is the stuff that gets all the press. These innovations fundamentally change the business, like IBM moving from computers to business services. These innovations are high-risk and require a lot of time, money, and patience to see to fruition. This type of innovation is also called “Breakthrough” but, for obvious reasons, I shy away from that term.
There are many things that need to be done to shift innovation from buzzword to business capability. Defining innovation AND at least three different types is only the first step in moving from innovation theory and theater to building innovation into a true capability that drives sustainable growth.
Or, as I would tell my old boss, “It’s the first step. But it’s a breakthrough one.”
Originally published on December 30, 2019 on Forbes.com
It started with emails from the airlines letting us know that they’re cleaning the planes and taking precautions when handing out drinks and snacks
Then came the emails from every company you’ve ever given you email to.
Finally came the email with offers, like the one I received from a consulting firm stating that, in these uncertain times, the most important thing you can do is find new revenue streams and they can help, so give them a call.
Yes, it’s important to communicate, to be transparent about what you are doing and what you’re not doing, and to be honest about what you do and don’t know.
But that doesn’t mean that everyone needs to send an email to their customers with news, updates, and offers.
The barrage of emails reminded me of a scene from Forgetting Sarah Marshall, a frothy rom-com with a great cast and endlessly quotable quips. In this scene, the lead character, Peter (played by Jason Segal) decides to take lessons from the resort’s surfing instructor, Koonu (played by Paul Rudd).
Koonu:Okay, when we’re out there, I want you to ignore your instincts. I’m gonna be your instincts. Koonu will be your instincts. Don’t do anything. Don’t try to surf, don’t do it. The less you do, the more you do. Let’s see you pop up. Pop it up.
Peter hops up to standing on the surfboard
Koonu: That’s not it at all. Do less. Get down. Try less. Do it again. Pop up.
Peter starts to slowly do a push-up
Koonu: No, too slow. Do less. Pop up. Pop up.
Peter gets to his knees
Koonu:You’re doing too much. Do less. Pop down. Pop up now.
Peter tries again
Koonu: Stop. Get down. Get down there. Remember, don’t do anything. Nothing. Pop up.
Peter lies motionless on the surfboard
Koonu: Well, you… No, you gotta do more than that, ’cause you’re just laying right out. It looks like you’re boogie-boarding. Just do it. Feel it. Pop up.
Peter does exactly what he did the first time and hops to standing
Koonu: Yeah. That wasn’t quite it, but we’re gonna figure it out, out there.
I imagine this was the conversation that a lot of corporate/crisis communication folks were having with executives in the last two weeks — Do more. Do less. Don’t do anything. That’s not quite it.
In the midst of all of this uncertainty, how can companies know what to do now?
To be very clear, I am not an expert on communication or crisis management BUT I am an expert at understanding your customers, being a customer, and receiving lots of emails. I’m also a business owner who, for a brief moment, wondered if I needed to send a COVID-19 update to my clients and network.
Before making my decision, I asked myself these 3 questions:
Am I in a business that is the focus of a majority of the news stories? These businesses include anything in travel (airlines, cruises, hotels), food and food service (restaurants, fast food, grocery), medical supplies (masks, gowns, gloves, ventilators).
If the answer is YES, send an email because people are thinking about you and wondering what you’re doing to keep them safe.
My answer was NO, so I went to the next question.
Am I a business that is woven into people’s daily lives? These could be essential businesses like banks, medical professionals (dentists, orthodontists, chiropractors), and cleaning services (home cleaners, dry cleaners, laundromats). The list could also include non-essential businesses like personal service providers (hair stylists, nail techs, aestheticians).
If you are a steady part of people’s lives, then YES, you should send them an email to let them know what you’re doing in light of the situation.
I’m a part of most of my clients’ lives during projects which have start and end dates, so I went to the next question.
Am I making fundamental changes to my business that will directly and immediately impact my customers? These changes could include changing your hours of operation (e.g. adding Senior hours), changing how you transact business (e.g. no more curb-side pick-up). Or the changes could be bigger, like closing because of a government order, or delaying or even cancelling shipments because manufacturing and shipping processes are delayed due lack of materials or staff.
If you’re making a fundamental change to how you do business, you should let your customers know and help them reset expectations.
Other than moving all meetings to Zoom and no longer traveling, no element of my business operations changed.
DECISION: Do less.
I did not send a “How MileZero is responding to the Coronavirus” email because, based on the answers to the three questions above, my clients had far more pressing concerns than how often I’m using Clorox wipes to clean my keyboard.
But I didn’t do Nothing.
In the work I do with clients, I get to know them extremely well. We move from the typical consultant-client interaction to a trusting (professional) relationship between two human-beings.
What I did tried to reflect that.
I sent quick personal notes to each individual, wishing them health and safety, asking how they and their families are doing, and offering to hop on the phone for a quick chat, to be a sounding board, or simply a shoulder to lean on. It’s not much but it’s genuine and appropriate for the circumstances.
I did not try to tell them what they should be doing right now. Nor did I try to sell them a new service. I simply offered support and connection because, in a time of social distancing, connection is what we need right now.
What do we do now?
The same thing we should have been doing all along. We think of our customers (i.e. the people at the other end of the email) and what they want and need, and we do our best to serve them.
Sometimes we’ll get it right. Sometimes we’ll get it wrong. But if we think first of our customer, not ourselves or our businesses, we’re gonna figure it out.
A relentless stream of news and updates are coming at us, warning us about COVID-19, a declining stock market, rising unemployment, and the financial crunch facing millions and millions of individuals and families.
On the other hand, we’re also getting daily notifications from companies about what they’re doing in the face of all of this news, tips for working from home and maintaining our mental health, and encouragement to support our friends, families, neighbors, and strangers in new ways.
Should we be scared or stoic? Isolated or connected? Hoarding or sharing?
Whatever you choose (and it is your choice), I encourage you to also be creative.
I’m not talking about being creative in the capital C way and take up painting, sculpting, composing, or any of the other activities we typically associate with the fine arts.
I’m talking about calmly assessing your situation, clearly acknowledging the constraints that are requiring change, and then exploring the “new normal” you can create.
This is what innovators do and you, yes YOU, are an innovator.
Innovators know that creativity thrives within constraints. If anything is possible and everything is permissible, you can do whatever you want! But that’s not how the world is. Not now and not before COVID-19.
We, people and businesses, have always faced constraints because we’ve never had infinite resources, money, or time. But we acknowledged the constraints and created within them. That’s what we have to do now.
Caterers have to order food well before events take place so when events are cancelled, caterers are left with a lot of food that they’ve already paid for and without the event income that was going to cover their costs.
Devil’s Food Catering in Portland OR faced exactly this situation. Instead of letting the food go to waste or trying to become a take-out shop on their own, they created Handbasket by teaming with other with other Portland area restaurants, breweries, distilleries, bakeries, and other providers to create “handmade menus for quality in-home dining experiences during this of social distancing.”
Some people are gifted with the motivation to workout and some of us, well…aren’t.
In-person classes and personal training are often the solutions we rely on because we feel a sense of connection with our instructors, trainers, and classmates. As gyms close and social distancing becomes a way of life, the loss of live workouts can deepen our sense of isolation.
Recognizing this, local gyms, studios, and personal trainers in cities across the country are offering livestream classes so that we can continue to feel connected AND healthy AND active from the comfort of our own homes.
p.s. the link above is for the Boston area but I found similar articles for Philly, Washington, Houston, and even Wyoming
Spears Who Dare bills itself as TED meets Broadway, “a groundbreaking speaker series produced like a Broadway show, featuring speakers from around the world who want to ignite change and inspire new ways of thinking.”
Scheduled to take place on March 24, the organizers recognized that, like many other live events, their original plans for a live Broadway event needed to change. Last week, they shifted from live to livestream, planning a 6-camera shoot of each speaker and performer sharing their messages and art in an empty theater.
Then NYC closed the theaters. Within hours the organizers shifted again and asked each speaker to record a “mini-movie” that could be edited together to create “a full-blown Speakers Who Dare Film” to be shared with a global audience, viewing together on the original event date.
People
Seeing your coworkers when you can’t (or don’t want to) videoconference
Homemade games for when you’ve already played all the games you bought
More homemade games for when you really need to interact with people outside your own home
How and what will YOU create today?
Just in case you need a nudge…find the perfect gif starring the perfect celebrity expressing the perfect emotion and send it to someone who needs it
The time of year when people everywhere write up their wish lists, hope to gain favor with those who can bestow gifts, and dream of the bounty that will greet them in a few weeks’ time.
Yes, it’s Annual Planning and Budgeting time.
The process of setting annual goals and budgets can be frustrating and even demoralizing for employees and managers alike as their visions and budgets get slashed in each round of management reviews.
This process can be especially painful for Innovators who feel like they are expected to do more with less and, as a result, can’t even try to do anything new or game-changing because they barely have the resources to operate the current business.
Resource constraints are a reality in every organization. The trick is not to give up when you run into them, but to figure out how to work with them and, more importantly, the people who control them.
1. Acknowledge reality
Yes, we all know that, when funding innovation, corporations should act more like VCs and follow a milestone-based approach to releasing funds. But the reality is that the budgeting processes in most companies are so rigid that you get your budget at the beginning of the year and you don’t get a penny even if circumstances change and additional investment could yield wildly positive results.
Instead of trying to change the system or asking only for what you’ll need in the first quarter or the first half of the year, work with the system and ask for your annual budget up-front.
2.Know where there’s flexibility
During my first year at Harvard Business School, my accounting professor would often run around the room yelling “No Rules! No Rules!” which often left me more confused than when the class started.
I’m still not certain what point he was trying to make but I like to believe that he was trying to shock us out of our rigid black-and-white thinking about accounting and to see that there is room for flexibility (while staying on the right side of the law).
As you draft your budget, understand which line items are more flexible than others. For example, a client of mine had to break her budget request into Fixed (salary, benefits, and overhead) and Flexible (travel and project-specific) costs. Fixed costs were locked in, but she had almost complete autonomy over how Flexible funds were spent. As a result, given the uncertainty of staffing required for innovation projects, she maintained a skeleton crew of FTEs and relied on temps, interns, and consultants to staff up projects when needed.
3. Channel your inner Mick Jagger
The Rolling Stones said it best when they sang, “You can’t always get what you want/ But if you try sometimes, you might find/ You get what you need.”
As you look at your innovation projects, estimate what you want (i.e. the resources you need if everything goes perfectly) and what you need (the bare minimum to required to operate if a project runs for the full year). Assuming that what you want isn’t a laughable number, ask for it. When the inevitable cuts are made, acted pained until you get to about halfway between your Want budget and your Need budget then, once you reach the halfway point, start talking about tradeoffs and highlighting the things that won’t happen if budgets continue to get slashed.
4. Make your case
Even if you do everything listed above, the fact remains that there are only so many dollars to go around. This means that a dollar allocated to your project is a dollar NOT allocated to another project.
Large companies crave certainty and they reward executives who are able to consistently deliver results. This system of rewards and incentives amplifies our already innate tendency to prefer avoiding losses to acquiring gains and drives most managers to fund “Safe Bets” and “Sure Things.”
As a result, it’s not enough to pitch your idea and request for funds, you need to emphasize the potential gains, explain how you’ll minimize losses, and make the case for why your project is a better investment than others.
In conclusion
Annual Planning and Budgeting season is stressful for everyone and, inevitably, there will be brilliant ideas and game-changing projects that go unfunded. But by acknowledging the reality and constraints of the process and learning to work within them and with the people making resource allocation decisions, you can significantly increase the odds that some of the items on your innovation wish list will become a reality.
I am not a soccer fan but my husband is. So why, as a non-soccer fan, would I watch so many World Cup games?
I could spin a high-minded tale about the importance of diverse experiences in driving empathy and creativity and that “getting out of your comfort zone” and experiencing new things can be as simple as watching a new channel or program.
I could go all business guru and pratter on about the fact that sports tend to produce wonderful case studies of what to do and not to do in the areas of leadership, teaming, and all other things management
But the truth is that I spent most of June sick in bed with something that exactly mirrored Whooping Cough (it wasn’t) and, during the Group Phase, I didn’t have the energy to commandeer the remote control and change the channel. By the time we got to the knock-out phase, however, I had a bit more energy, had adopted several teams as my own (Sweden, Denmark, and England) and was peppering my husband with questions about players, teams, rules, and all other things soccer.
So, with the Final match scheduled for Sunday, thought I would share what I’ve learned about leadership and innovation from watching 40 soccer games.
#1: Teams need Leaders, not managers
Argentina’s coach, Jorge Sampaoli, yelling from the sidelines (SOURCE: Getty — Contributor)
Untold books have been written on this subject and it played out for the world to see during Argentina’s World Cup run.
Argentina was considered one of the top contenders for the World Cup, having come in 2nd during the 2014 World Cup. The country has some of the world’s greatest players and perhaps none are greater than “The Magician,” Lionel Messi. With such a dominant line-up, it would seem that the coach’s job would be relatively easy — win the trust and respect of the team’s stars, inspire them to play well together as a team and then get out of the way.
But Argentina’s coach, Jorge Sampaoli, couldn’t seem to do that.
During Argentina’s first game, three top players were inexplicably benched and the game, which Argentina should have won easily, ended in a tie (more on that in the next lesson). For the next game, Sampaoli “went with a bizarre 3-man backline” (I don’t know exactly what that means but “bizarre” is never a word you want associated with your starting line-up) and the “disconnect between Aguero, Messi, and the others was apparent from the first minute.”
The result? Argentina lost to Croatia 0–3 and the players staged a coup, holding a meeting with the Argentine FA chiefs (basically the “front office” of the team) to demand that Sampaoli and the entire coaching staff be fired as part of a “pact for life” because “the players want to build a team.”
The coup failed. Sampaoli was allowed to keep his job (but was told he would be fired at the end of the competition). And the players, having no confidence or respect for the coach, resisted, fielding their own starting line-up for the third and final game of the Group Stage, a 2–1 victory over Nigeria.
Argentina struggled in the lead-up to the World Cup and underperformed during its first two games because it didn’t have a Leader (someone the team respects and wants to follow), it had a Manager (someone who demands obedience based on a title or organization hierarchy). When leaders finally rose up, it was too late — Argentina barely qualified for the Knock-out stage and promptly lost 4–3 to France.
#2: Don’t get hung up on job titles. Hire for skills.
Lionel Messi takes his shot at Iceland’s goalie
In the first game of the Group Stage, Iceland, the smallest country ever to qualify for the World Cup, found itself playing Argentina. As if that were not challenging enough, in the 64th minute of a tied game, Argentina was granted a penalty kick and Lionel “The Magician” Messi stepped to the line. All he had to do was send the ball past Iceland’s goalie and his team would have a 2–1 lead.
He missed.
To be more specific, one of the greatest soccer players of all time, one who makes 76% of his penalty kicks, had his kick blocked by a goalie who is better known for directing a Coca-Cola commercial than for playing soccer. When asked how he achieved such an impossible feat, Hannes Halldorsson, a former filmmaker turned goalie, attributed his success to “film study.”
Sure, Halldorsson has soccer skills (basic job requirements) but kudos to Iceland’s coach for seeing value in non-traditional experience and to Halldorsson for using them to prepare for the big game.
#3: If you’re going to talk smack, you better be able to back it up
Denmark’s goalie, Kasper Schmeichel, is PUMPED
Sticking with the theme of Nordic goalies, let’s talk about Denmark’s Kasper Schmeichel. If there were such a thing as Danish soccer royalty, it would be the Schmeichels.
Peter Schmeichel, the family patriarch, was voted world’s best goalkeeper in 1992 and 1993, captained Denmark to a championship in the 1992 UEFA World, AND captained Manchester United to the 1999 Champions League title and the Treble (it’s like the Triple Crown but for English soccer and it happens about as frequently…which is rarely). His son, Kasper made his World Cup debut this year and promptly beat his father’s record of most playing minutes (533 to be exact) for Denmark without conceding a goal.
So yeah, if Kasper talks smack to opposing players, daring them to try to get the ball past him, it’s pretty certain that he can back it up.
Until he can’t.
In Denmark’s match against Australia, Schmeichel came out of the goal to get in the face of a Mile Jedinak while the player was lining up for his penalty kick. Trash talk is nothing new in sports (in fact, I’d argue that it has been honed to a fine and humorous art form) but whatever Schmeichel said apparently went too far for commentators on social media, in the press, and even game officials who warned him about getting too close to the Australian.
A few seconds later, the ball went screaming past Schmeichel, scoring the tying goal for Australia and ending Schmeichel’s record.
#4: Don’t be afraid to experiment (and don’t let anyone tell you that you’re experimenting too much)
Mexico’s Tinkerer-In-Chief, Juan Carlos Osorio
Juan Carlos Osorio, Mexico’s coach, has the highest winning percentage of any Mexican national coach in the past 80 years. So why were 85,000 fans shouting “Fuera!” (Out!) at him during the team’s 1–0 victory over Scotland during a World Cup warm-up game in June?
Because he took the field with a new starting line-up.
It was his 48th different starting line-up in his 48 games as a national coach. That is a new line-up Every. Single. Game.
His tinkering continued into the World Cup where a new line-up beat defending World Cup Champions Germany only to be replaced by a new new line-up for game 2’s match-up against South Korea (which Mexico also won).
In his 52nd game as Mexico’s coach, Osorio changed tactics and did NOT change his line-up. They lost 3–0 to Sweden.
#5: Your performance, not your reputation, matters most
German players Mario Gomez (23) and Mats Hummels (5) react to losing to South Korea and their elimination from the tournament
Speaking of Germany, 2014’s World Cup champs came into the tournament ready to defend their title, ranked #1 in the world by FIFA, and with a 10–0 record in qualifying rounds.
They didn’t even make it out of the Group Stage.
How shocking was this? I think The Guardian summed it up nicely:
This, then, is how the world ends, not with a bang but with a whimper. There are certain events so apocalyptic that it feels they cannot just happen. They should be signalled beneath thunderous skies as owls catch falcons and horses turn and eat themselves. At the very least there should be a sense of fury, of thwarted effort, of energies exhausted. And yet Germany went out of the World Cup in the first round for the first time in 80 years on a pleasantly sunny afternoon with barely a flicker of resistance. There was no Sturm. There was no Drang.
Sports, business, heck, even life, is tough. Past performance should count for something and it usually does — it earns an opportunity. But it’s what you do with that opportunity that determines whether you win or lose.
#6: When all else fails, have a signature hairstyle
After watching 40 games, I have concluded that (1) hair is a big deal in soccer and (2) players must have access to hair product that the general public doesn’t because their hair maintains its original style of 90+ minutes of intense exercise. Some cases in point…
Brazilian star Neymar debuts his World Cup hairstyle against Switzerland. For the next game, delighted fans responded by gluing raw clumps of ramen noodles to their foreheads in support of this style choice (SOURCE: Getty Images)
French player Olivier Giroud’s hair defies gravity. Seriously, this is his hair at the END of a game! How is this even possible?!?!
OK, I know that Portuguese star Christian Ronaldo’s hair doesn’t look as crazy as some others but it’s no less important. Prior to their World Cup match against Uruguay, the story of a 2010 match re-surfaced in which one of Uruguay’s players was asked how the team planned to stop Ronaldo. Plan A was to take him out with a tackle. If that didn’t work, Plan B was to “ruffle his hair to annoy him.” Plan A was enacted in the 6th minute of the game and didn’t work, so Uruguay when with Plan B. Ronaldo responded so furiously he was almost kicked out of the game. In the post-game press conference, Marcelo “Hair Ruffler” Sosa commented with amusement that Ronaldo seemed “more upset by me messing up his hair than the foul!”
There you have it. Every business/innovation/leadership/personal style lesson I learned from watching the World Cup. Now it’s off to the hair salon…
