August 8, 2011

Innovation in a vacuum may not be innovation at all

I have had the honor and opportunity to be one of the founders of the inaugural Indiana Innovation Awards.   The goal of this newly formed organization is to recognize and honor outstanding innovation in our state.  Nominations are open to any company or organization that have launched a new product or service in the last two years that is unique and has satisfied some form of unmet need.  The criteria was left a bit vague with the intention of being more inclusive than exclusive in terms of participants.

We are now in the process of reviewing the nominations and summarizing them for our panel of expert judges.  Fortunately, it will be their job, not mine, to determine the ultimate winners.  It is very exciting to see some of the breakthrough new products and services that have been launched in Indiana over the recent past, and it will be incredible to be able to recognize these groups for their efforts.

Equally entertaining are some of the other nominations that have been received.  We had several companies take the time to write up a new product or service that they are quite proud of.  They extolled of all the benefits that they could conceive of, and documented each of the ways that their offering is changing the world.  There’s only one problem.  They’re not innovative.  While it may be a new product to their company, a quick web-search will show that there are numerous competitors already on the market.  Our goal is not to demean or discourage companies that are striving for new revenues in any way, shape or form.  But I do wonder if they’re spending anytime doing competitive analysis or if they are just launching products in a vacuum?  While a new idea may be innovative to your company, it’s ultimately the market that decides its unique value proposition.

 

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August 4, 2011

How do you interpret what you see?

Have you ever noticed how different people can see the same thing but take away such different information?  An optimist can read a newspaper article and note that while there are difficulties in the current economy, things are going to get much better.  His pessimistic counterpart can read the same bit and be convinced that we’re heading for sure doom.

It’s no different in the business world.  Three companies can go out and collect the same information via market research.  The first company will find that what they currently provide is sufficient for the marketplace.  The second will note incremental improvements that could improve business, and the third will realize that if they pursue these findings in a bold new way, they can experience growth in an unprecedented fashion.

What makes these companies so different?   It is a combination of attitude and perspective.  The first company noted is change averse, so the information they see merely confirms what they already believe to be true.  The second company knows at some level that they need to evolve and grow, but past failures (or rumors of past failures) have them in an ultra-conservative place where only the safest of change is acceptable.  The third company is destined for growth and change regardless.  The information they find provides them with some strategic direction and focus.

Look closely at this picture of Einstein. Now stand up and step back, it becomes a picture of Marilyn Monroe!

Before you spend a lot of time, money and energy on learning more about your consumer or your marketplace, I would challenge you to take a serious, introspective look into what type of organization you really are.  If you find yourself in the first category, merely seeing something new won’t inspire you to change what you do.  If you’re in the third, developing a deeper understanding of your customer base could provide the critical difference between strategic growth and chaotic change.

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January 25, 2011

Why Innovation won’t work in your company – Part 4 Misplaced Fear

The problem with embarking on an innovation project is that you can’t know where it’s going to end up (if you did, it wouldn’t really be innovation, now would it?).  Many people (and organizations) have a strong need to be in control of as much of their world as possible.  Getting excited about a breakthrough idea that can lead to a very new and different place?  Not likely.  The further the idea is from “business as usual” the less control they will have.  After all, radical ideas might attract new customers, require new forms of distribution, and put the company in a market with currently unknown competitors.  Without control, any one of these issues could surely lead to failure… And who wants to sign up for that?

Fear of the unknown is a natural trait.  But it is often misplaced.  Good innovation stems from seeing an opportunity in the marketplace, or in meeting a need held by a group of consumers.  If a concept passes these litmus tests, how unknown is it really?  Of course there’s still risk.  But the real question is, “What is the risk of doing nothing?”.  In this day and age, there are few if any markets that stand still over time.  Increasing competition, savvy consumers and disruptive technologies have rocked many an industry.  Relying on past success for future success has become an oxymoron.

Sit through any innovation project with most companies and notice what transpires.  Ideas may surface that range from mild to wild… But which ones almost always are chosen to move forward?  The ones which cause the least amount of stress to the company.  The potentially market-changing ideas are often relegated to a three-ring binder until such time that a competitor enters the market in a bold way, then the binder will be dusted off to see if there are any ideas in-house that could compete.

Max DePree, former CEO of Steelcase once said “We cannot become what we need to be by remaining what we are”.  In this one simple quote, he says a lot.  He recognizes that there is a tremendous desire within any organization to “remain what we are”.  But the reality is, that should be where the fear enters in.  Companies realistically have to focus on one part of this or the other, they can’t do both.  So what is it with your company?  Is your attention on determining what you need to be?  Or are your resources dedicated to remaining what you are?  Yes, change is scary.  But in this day and age, not changing is horrifying.

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January 19, 2011

Why Innovation Won’t Work in Your Company – Part 3 Lack of Champions

 

 

An innovative idea without a champion behind it is doomed.  I wrote in my last post about  risk aversion tendencies of middle management within most organizations.  There is an exception to that rule.  If an individual in the organization comes up with an idea himself, he might be willing to take some chances to see it through.  Call it personal pride, or tenacity… No one wants to see an idea that they think is tremendous die due to bureaucracy or company politics.  I know the guy at Delta Faucet that came up with the concept of the Touch Faucet.  He recognized that consumers need to be able to turn water on and off at the kitchen sink when their hands are really dirty (think chicken slime).  Some preliminary research showed that when people were doing certain types of food preparation, they would use their elbows or a paper towel to turn the water on/off, to prevent contamination of the faucet handle.  Obviously, this led to some very awkward movement.  So he developed a means of simply tapping the faucet with your wrist or forearm, and have the water turn on, allowing you to wash your hands without worry of spreading bacteria.  Even upon first hearing this, it sounds like a fantastic idea, doesn’t it?

But like most companies, Delta Faucet has a lengthy process to get new product concepts into the marketplace.  Along the way there are many points where various experts weigh in with their individual opinions.  Many concerns were raised… “You can’t mix electricity with a faucet!”, and “This will be way to complex of an install for anyone to be interested in”, and finally (my favorite), “That will be at a price-point beyond what consumers will pay”.  As he tells the story, this project was “killed” three different times during the course of its development.  However, he was not willing to let a good idea die.  Every time the project was killed, he would personally resurrect it and through dogged determination pushed onward.  Fast forward a couple of years and the product is on the market, and exceeding all sales expectations by several hundred percent.  Champions don’t let projects die.

Unfortunately, the case above is far too rare.  Most companies shoot down ideas like the Dilbert cartoon above.  My friend took a risk on this project.  Had it gone to market and not been successful, he could have lost his job.  Fortunately in this case, we’ll never know.  But the real question is this.  Does your company support and enable product champions?  It’s never a job title, it’s a passion.  Are people encouraged to take risks?  What is the upside and the downside for them as individuals?   No one is suggesting that you bring every wacky idea to market, but do you have an infrastructure where top ideas can have an owner?  I’ve even seen situations where concepts of open innovation have been applied, and the true champion is not even an employee – he’s an outside contractor managing a project to fruition.  However you get there, know this.  No breakthrough product will ever see the market without a champion.  Do you have yours?

 

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January 11, 2011

Why Innovation Won’t Work in Your Company – Part 2, Positioning

Who’s in charge of innovation at your company?  The odds are, a group of people that fight it every step of the way.  Think about it…  Top executives at any company are charged with creating the Vision and direction for the organization.  They essentially blaze the trail for the organization to follow in the coming months and years.  But realistically, that trait cannot cascade down through the whole organization or nothing would ever be implemented.  Therefore, organizations have management tiers that are charged with execution of the plan.  These people are expected to be much more tactical in nature.  For the most part, that’s a good system.  Create the Vision at the top, and staff the organization to implement it.

But where does Innovation fall?  Most CEO’s will state that they want their company to be innovative.  That makes sense from a strategic and directional standpoint, but how does middle management implement said innovation?   While innovation may start as a strategy, it ultimately has to come to life in the form of new product or service ideas.  Those specific ideas may be the result of an innovation project.  And clearly once the word project is thrown about, it clearly resides in the realm of middle management, not executive management.  That’s where things fall apart.

Tactical project leaders have been trained to minimize risk.  People in these positions have been rewarded and promoted for “keeping their heads down” and delivering what’s been asked of them on a consistent basis – a model of self-preservation.  An innovation project could have incredibly high-potential ideas come out of it, but what happens next?  The odds are the concepts getting the most attention at this level will not be those that have the highest potential impact on the company but rather the simplest to implement and carry with them the lowest chance of failure.  Realistically, what tangible incentive does a manager have to pursue an idea that could transform the company?  They’d clearly be putting themselves (and their team) at considerable risk.  There’s probably no stated reward for success, but they certainly remember the last guy that screwed up a project – who by the way is no longer there…

Because of the project nature of this process, CEOs typically think this beneath them; a level of detail that they need not be involved with.  As a result, they  never see some of the top (potential) ideas that are generated.  Safe ideas are pursued with minimal impact on the market.  Executives get discouraged with the process.  Other strategies take the place of innovation.  Is it any wonder that there’s so much talk about innovation, and so few truly innovative products delivered?

 

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January 4, 2011

Why Innovation Won’t Work in Your Company – Part 1 External Stimuli

With this post, I am starting a series of blogs entitled “Why Innovation Won’t Work in Your Company”.  In doing this I will point out common situations that exist within Corporate America that fly directly in the face of successful innovation.

External Stimulus is Required for Innovation – People resist outside anything

Let’s face it.  It’s very desirable to stay in your comfort zone.  In these cozy retreats you know what to expect, you can plan your days and experience minimal personal risk.  Thrill seeking is for extreme sports junkies, not for middle managers going through the motions, right?  The problem is, the world is not standing still around you.  While you hunker down and keep your head low, the competitive environment is ever changing.  You may know that change is required to survive, but what specific change is needed?  This is not something that you are going to find within yourself, or in a discussion with like-minded co-workers.  At best, that tactic will lead to simple “change for change sake”.  Innovation is not just about being different, it’s about solving an existing problem in a unique way.  Your thinking and your existing environment are as unique right now as they are ever going to be. Realistically you’ve already had any breakthrough thoughts about an existing issue that you are going to have… unless you seek external stimuli.

External stimuli can come in many forms, but you have to seek it out and be receptive to it.  A new person on your team will provide it.  An outside professional can share their expertise.  Put yourself face to face with a customer and really observe and listen to what is going on.  External stimulus is not scarce, and it’s not formidable.  But you’re not going to find it in your comfort zone, and you’re not going to find it sitting around the table with the same group of people day in and day out.

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October 6, 2010

A case for perseverance

I’ve been asked to return to my Alma Mater to speak to some classes. I graduated from Purdue University in 1983 with a degree in Industrial Engineering. That was not an easy curriculum for me. in fact I was probably one of the only people in my class that had a higher SAT score in English than in Math. In spite of my lack of aptitude, I graduated after four years, though I did take a few of my favorite classes (e.g. Thermodynamics) a couple of times since I enjoyed them so much.

I had three older brothers, all of which majored in some form of Physics. My parents knew nothing else than to steer me toward a similar technical degree, so we agreed upon engineering. I knew from the start that I was not “like the other engineers” around me. Many of them sat in the dorm room and made robots from scrap parts, or re-wired old televisions to sync with their stereos to provide (by today’s standards – primitive) light shows. I was fascinated by these guys, but could not share in their hobbies.

Based on the lecture series presented to all Freshmen engineering students, I opted for Industrial Engineering, for three reasons. 1. It sounded the least technical 2. It was the most people focused and 3. More CEO’s came from Industrial Engineering than any other branch. So, I struggled through and got my degree. I came very close to quitting numerous times, but I hung in there. My grades were not stellar, but after my very first job, no one ever asked about them again.

My first job was in a washing machine factory. I would go out with a stop watch and observe people on the assembly line. My goal was to reduce manufacturing costs by optimizing the labor force. I hated the fact that people dreaded seeing me come out to the floor (fearing for their very jobs), but at the same time I found watching people engaged in their normal daily routine fascinating.

Fast forward twenty-seven years. I’m still watching people. The only difference is instead of making them work more efficiently, I’m now helping to develop new products to make their life easier. It’s still about helping those that pay me to make more money.

Looking back at those times, I never dreamed that my field of study would lead me to one day become a successful entrepreneur. And though I could have started a company with a business degree, I would not have been able to speak “Engineer”, and that has proven to be invaluable.

We don’t always find ourselves in a place that we really want to be. But if we make the most of every opportunity, and persevere through the tough times, we may find that we end up in a very desirable place that we could not have gotten to otherwise.

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August 9, 2010

Where are we headed?

I considered myself a pretty social kid.  I loved to hang out with my friends and would do so at every opportunity possible.  If we had an issue that needed to be discussed, we would do so face to face.  We’d use the (land-line) phone to arrange our outings, but the joy was in being face to face.

I remember working with a corporate product team about ten years ago.  Most of the members of that group were in their mid-twenties at the time.  We had an evening at a resort hotel (where our meeting was being held) and we were all sitting around a table by the pool enjoying drinks and recapping the day.  But I distinctly remember being continually interrupted by the ringing of cell phones.  And, every time one would ring, the person would answer it.  It didn’t matter if we were in mid-conversation, suddenly the person on the other end of the phone was more important than the group that was gathered there first hand.  It’s not as if these were emergency calls, they were just “other friends” that suddenly rose to the top of the priority list.

Today that has become less of a problem.  Because I’m not sure young people even talk anymore.  Texting has completely overtaken the culture.  According to a recent

Reuters news report, one-third of US teens that have a phone text 100 times per day!  The article goes on to say “Text messaging has become so much a part of teenagers’ lives that 87 percent of those who text said that they sleep with, or next to, their phone.”  Try having a conversation with any teen and see if you can get through it without them sending or receiving texts to a third party.  It’s highly unlikely.

I’m honestly not sure if this is a natural migration of technology, or the result of cell phone pricing plans (where talking minutes have been more expensive than unlimited text plans).  But regardless of the cause, I wonder where this will take us as a society.  Face to face communication involves things like verbal and non-verbal communication.  You can tell by someone’s tone if they are being serious or sarcastic.  The tempo of their words can depict their urgency.  A pause in a conversation conveys thoughtfulness.  None of these can easily be picked up when texting.  Through my sons (in their early 20′s), I have seen several cases of misunderstandings via texting that have led to hard feelings, needless arguments and sudden anger.  I have a  friend that is a High School English teacher that complains that students have a hard time writing in full sentences anymore.  And punctuation?  Forget about it.

At my company, we observe people to discover needs and develop products to satisfy those needs.  I can’t help but think if we were to do a study on texting, we would recommend a multi-phase approach.  What if people could actually “talk” to one another instead of just reading fragmented sentence bursts?  And as a longer term approach, what if they could actually spend time together and “converse” with one another to really gain knowledge and understanding…

I just have to wonder.  Is this a situation where the technology pendulum has just swung too far?

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July 15, 2010

Innovation takes a state of mind

Innovating a cigar cutter

I tried to delegate my blog

In our high-stress culture, its no wonder that most people are not more innovative than they are.  It’s hard to be innovative when you are time-stressed.  But it’s also tough if you are in mental “shut-down” mode.  It’s been several weeks since my last post.  Like most belated bloggers I’ve had good intentions, but I’ve been very busy.    I was able to squeeze in a vacation in Maine (albeit too brief) in between two East Coast business trips.  I thought for sure I would do all kind of writing while I was there, but the reality was, I just sort of crashed and took in the environment.  But there’s a lesson in all of this.  It’s very tough to just hit a switch and “be innovative”.  You need to be in the right state of mind, in the right environment and around the right group of people.  It’s not going to happen if you are facing deadlines or fighting fires.

So how do you get into an innovation “state of mind”?  I suggest the following tips:

  1. Set aside time where creativity is your specific goal (and you can unplug from other things)
  2. Change your environment – it’s tough to be innovative when you are distracted with your day to day undone work
  3. Surround yourself with creative people – there’s no question that creative people build upon and encourage each other
  4. Provide appropriate stimulus – based on the area that you are focusing on, this could be product samples, art work, advertisements, photos of consumers, etc.
  5. Set a goal for your session – this could be in terms of # of ideas, # of great ideas, time spent interacting with others, etc.

A true innovation session can be exhausting, so it pays to be well rested going in.  It doesn’t just happen, it’s a very deliberate process.  And by its very nature, it needs to look different from your day to day routine.

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June 4, 2010

An innovative hotel experience

It’s often been said that innovation is not about invention, but rather the reapplication of a given “technology” from one realm to another.  I have just completed a two night stay at a hotel in Portland, Oregon that absolutely meets that criteria of innovation.  The Kennedy School is a property owned by McMenamins, a group that owns a group of historic hotels, brewpubs, restaurants, music venues and movie theaters.  This particular hotel was once an elementary school   .  It has now been converted into a very unique “themed” hotel.  I spent the last two nights in Miss Dobie’s Room, named after the teacher that taught in here back in the 1920′s.  Two of my walls are covered with chalkboards (with chalk included so I can contribute my own bizarre ramblings to those left here from previous guests).  Outside my room is a soaking pool, a heated saltwater pool only 3′ deep, but with benches around it’s walls.  The old school auditorium is now a movie theater, filled with couches and including waitress service.  The Boiler Room is now a bar traversing from the main floor down a couple of flights to where the original boiler stood.  In addition to all the above, they have a micro-brewery here that makes some spectacular ales that are distributed around the country.  Other old school rooms have been repurposed into very intimate bars seating only 10-12 people.  I enjoyed spending a little time in Detention, now a cigar bar complete with a wood-burning, pot-belly stove.

This is not your tacky themed hotel.  It is a wonderful re-purposing of a historic building.  I’ve noticed that the surrounding community is utilizing this space as much as the overnight guests.  How many other hotels can say that?  If you’re ever in Portland, I strongly recommend breaking out of the chain hotel rut, and trying out this location.  There are several others in town too, including a converted mental hospital, and a newly acquired prison.  I guess here, you can spend the night in a jail cell and still go back to work the next morning!  It is exciting to see a hotel willing to break so many conventions (there’s no tv in my room), and apply desired features in a bold new way.  That’s innovation.

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