Tag Archives: corporate culture

February 5, 2013 · 10:43 am

Overcoming Confirmation Bias

I’ve been in a couple of different meetings lately where I’ve been surprised at people’s reactions to new findings.  In both cases the results of a study were shared with a diverse group of people.   While I found the information shared to be highly insightful and illuminating, others in the group heard the same information and replied “there’s nothing new here… it’s exactly what I expected to see”.  The result?  I’m ready to go change everything, and others in the room are feeling confirmed that everything is okay exactly as is.  How can different people see the exact same results and come to such different conclusions?

There’s a psychological term called Confirmation Bias.   Simply stated “there  is a tendency of people to favor information that confirms their beliefs or hypotheses”.  In the case of the above meetings, I (naturally looking to change things up) focus on the information that demonstrates dissatisfaction or problems.  The people in the meeting that are fine with the status quo focus on the comments that are more positive and  dismiss the negative comments as irrelevant.

I know there is a world of Brain Science research out there that explains this in great detail.  In a nutshell, our brains save countless time by looking for patterns and putting new found information into existing “buckets”.  Therefore, it is physically easier to apply new learning to an existing belief than to open up new storage areas for unique thoughts.  (I apologize to all of my neuro-science friends for this gross oversimplification). 

So what can we do about it?  Awareness is the key.  Don’t limit your understanding to the first glance of new findings.  Knowing your brain is filtering this information can allow you to look a second time and attempt to see the information as it truly is.  Listening (with an open mind) to others’ opinions on the same data can also benefit you.  

This is no different than physical exercise.  It’s hard at first and it makes you very fatigued.  But before long it becomes a habit and your body comes to appreciate it.

Watch for this in your next meeting.  Once you are aware of it, you’ll see it everywhere.  If you can learn to see past your own natural bias, you will be able to add value that is appreciated by everyone in your organization.

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January 29, 2013 · 11:02 am

Get out of your cocoon

I recently wrote a blog for a group in Indianapolis called Centric.  It’s a group focused on innovation and draws people from a diverse set of organizations.  Service providers, not-for-profit reps, entrepreneurs, manufacturers and corporate personnel all meet once a month to listen to a speaker and share lunch.     It has gotten a lot of play, so I wanted to repurpose it here.
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I spent the first half of my career at Whirlpool Corporation with all of the blessings and trappings that come with working at a huge company.  From a personal development standpoint, they provided everything I needed.  I would attend four or five company held training workshops every year ranging in topics from Brand Marketing to Leading Effective Teams.  I even took a full year of Italian Language Classes right at the corporate headquarters.  Every month we had a Management Club meeting, where a distinguished author or an internal executive would speak.  Every couple of years, I might break out to attend a national conference, but that was typically only when I was speaking.  I lived in a giant cocoon with all the life-sustaining nutrients I could ever need.  I honestly believed that whatever I could need to know, they would provide for me.
The second half of my career (so far), I’ve been a small business owner.  Without having the company provided resources that I was used to, I found that I had to get out and meet people and find alternative means of expanding my influence.  Networking (a concept it turns out that extends beyond meeting people down the hall) became a necessity to get my business up and going.  Now my business is established and I keep busy… But I still seek out opportunities to network and meet with thought leaders beyond my four walls.  Not so much for business sustainability, but more for personal enrichment (which by the way, leads to business growth).  Centric is a tremendous organization that serves this purpose.  Such a wealth of diversity exists at every meeting, I never come away without new learning.
What I wish I’d known then what I know now… Can a big-business person learn from a small service provider?  Yes!  In fact, they pay them for professional services on a regular basis.  But what about the invaluable, top of mind stuff?  What about the life experiences that get shared only over a shared meal?  You don’t get that in a typical consulting engagement.  Looking back, I wish I had had a Centric-type organization available to me during my corporate years.    Instead of just hearing what all of my colleagues were hearing, I could have gained unique perspectives and brought them back to my job. It would have given me an edge that others didn’t have.  Today, I firmly believe that the information shared readily at a Centric meeting could make the average corporate employee a  superstar within their own company.
Today, I find that most “corporate-types” continue to think like I once did.  ”Networking is for realtors, financial planners and small business owners, it’s not something I need in my life.  My company teaches me everything I need to know…”.  Yeah, keep drinking that Kool-Aid.
Kudos to the big company folks that have tried out Centric and have made it a home.  I’m sure it has benefited you in your careers.  But be careful… If word gets out, it might just catch on with other corporate employees.
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You may not be near Indianapolis, so attending a Centric event might not be an option for you.  But have you checked to see what might be available in your area?  When is the last time you had coffee with someone to share thoughts and ideas outside of your own company?  No one organization has a lock on innovation.  The wider you cast your net, the more likely you are to catch a great idea!

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December 17, 2012 · 2:45 pm

Innovation is like exercise

I hate running.  I wish I didn’t but I do.  I try to run a couple of miles 2-3 mornings/week, but I can’t say I’ve ever enjoyed it.  Saturday morning I woke up knowing that I should go for a run.  As I laid there thinking about it, everything in my body said “Don’t do it”.  I suddenly became aware of every minor ache / pain.  I thought about the work I had to do later that day and the physical resources that would require.  Surely running would exhaust that valuable energy and keep me from completion later in the day.  Finally I considered my time constraints.  With the holidays on top of us, I didn’t have the time to first go for a run, then cool down then shower and change.  After all, I had a jam packed morning scheduled.  Then, as I do most Saturdays, I put on my shoes and went for a run.  Sure I hated it, but it feels so good when it’s over and I know I’ve done something proactive and good for me in the long run.

It seems to me that this is how many organizations view innovation.  They love to talk about it and plan for it in the future.  But just like me, the inertia of not doing it is very tough to overcome.  Insufficient resources, lack of time, too many “pains” in the present to focus on the future.  Yep.  That’s all true.  But if you want to be around for the long haul, it’s time to lace up your shoes and start innovating.  Once you start, it may even become a habit!Image

 

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October 19, 2012 · 11:29 am

Day of Innovation a Success!

 

My company, Insight2, was a major sponsor of the first annual Day of Innovation (#dayofinnovation).  The event was put on by Centric, a local Indy-based innovation organization.   It was an incredible day featuring keynote speakers, breakout sessions, experiential activities and networking.  Capping off the evening was the second annual Indiana Innovation Awards which recognized nine companies from around the state for their successful and unique new product offerings.

The beauty of this event was in its diversity.  There are several other innovation groups around Indianapolis, but they are all very focused on their segment (e.g. tech-sector, medical products, start-ups, non-profit).  This was the first event that really reached out to all segments and provided value from a variety of sources.  One panel discussion alone included a consumer products company, an alternative energy solution and a B2B branding company.  The topic was Effective Innovation.  It was fantastic to see both the similarities and the differences between these three groups in terms of what is effective and what drives effectiveness.

Each of us should continually expose ourselves to ideas and philosophies that fall outside of our normal circles.  We learned about a non-profit that went from losing money to triple-digit growth based upon ethnographic research.  We heard about the value of conflict in the innovation process and we heard 9 key steps to successful innovation form our keynote speaker Deborah C. Stephens.  No typical conference would have each of these types of speakers or presenters.  This was truly a great day.  And I for one, and extremely proud to have been a part of it.

 

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June 27, 2012 · 1:40 pm

Is Corporate DNA Toxic to Innovation?

True innovation is hard work and takes time.  It needs to be a part of a strategic plan, developed and launched in a deliberate manner.  There’s nothing new in that, and few would disagree.  But let’s look at some corporate reality.   There are two key factors that can essentially kill effective innovation; corporate culture and employee reality.

First let’s look at the corporate culture.  Private and publicly held companies are both under extreme pressure to deliver financial returns for the short run.  It’s hard to convince shareholders (or banks, or holding companies) to wait two years for something great to occur.  Expectations are set on a quarterly basis.  With such intense pressure to deliver in the short term, it’s much easier pursue incremental change than to embark on a longer term innovation strategy.  Companies will begin innovation efforts with the big picture in mind, but often succumb to the pressure and pursue only those ideas that can be knocked out quickly.

From an individual employee standpoint, the pressure is very similar.  Who in corporate America expects to be in their current job two years from now?  Even if an individual doesn’t change jobs, the reality is the organization will most likely change around them shifting all priorities and efforts accordingly.  What motivates a person to embark on an effort that lasts a long time?  The person that delivers a project seems to get the credit, not the one that does the hard work on the front end.  Over the course of a typical, strategic innovation project it’s not uncommon to see multiple people at the helm, each adding their own opinion and wanting to put their mark on the effort in case it happens to be successful.

It’s not lack of interest, its lack of vision beyond the immediate future.  Companies spend considerable time and effort creating one, three and five year plans.  But the initiatives that get pursued are those that can be delivered quickly to show an immediate impact on the bottom line.  Can anything be done to shift this mindset?  Or are we doomed to a culture of incrementalism?

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June 11, 2012 · 3:00 pm

It’s Easier not to Innovate

I’m reading a great book called “Snap Selling” by Jill Konrath.  It is an intriguing sales strategy book that provides tactics on “getting through” to busy executives.  One of the points she makes (that I certainly find true in selling my business) is that harried professionals prefer to stay in their comfort zones whenever possible.  They may appreciate what you have to sell, but if it complicates their lives in the near term, the odds are you will be put off until “later”.

Wow.  How true is this in the world of innovation?  While an executive may be able to imagine the benefits that could be had by pursuing an innovation strategy, doing so will cause them a significant amount of stress and turmoil.    Even when led by a competent, external professional there are individuals to coordinate, other duties to re-prioritize and other personal objectives that still have to be accomplished.  Innovation becomes just another item on an already crowded plate.   Human nature dictates that we simplify today even at the expense of tomorrow.

What causes some companies to consistently innovate new products and services?

  • They overcome the inertia of inactivity and force themselves to move forward (even in chaotic, challenging times)
  • They are hyper-aware of the true cost of doing nothing (in terms of lost market share and eroding margins)
  • They establish a corporate culture where comfort zones are discouraged, and risk-taking is rewarded
  • They look past this quarters financial returns and focus on a 1-3 year strategy
  • They prioritize innovation in their schedules and eliminate less strategic initiatives instead

These things don’t just happen.  They are the result of an innovation-driven vision.  But let’s be honest.  That’s not for most companies, or for most individuals.  It really is just easier not to innovate at all.

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April 17, 2012 · 12:29 pm

Innovation – a Gardening Analogy

In the last couple of years I have taken up vegetable gardening as a hobby.  I’ve now progressed to the point that I start my own seeds in the house, and raise them until I can transplant them in the garden once the risk of frost has passed.  Over the weekend as I was tending to these young tender plants, the realization of how this illustrates the fuzzy front end of innovation came to me.

Innovation requires high potential ideas (the seeds) and an organization that can nurture and support them as they develop (the soil).  Obviously, both are required; seeds in a packet are just untapped potential, the greatest soil without seeds is just inviting weeds.  While I could elaborate on this point further, let’s assume both of these items are in place and you have ideas that have sprouted.  What are the risks you face now?

In gardening, there are three key risks that young plants must be protected from: Weather, Weeds and Pests.  I think this analogy supports each of these same risks.  Think of it as the following…

Weather – It’s not the day to day sun and/or rain that you worry about, it’s the sudden changes that cause problems.  Unexpected frost, flooding, strong winds are all examples in nature of conditions that can wipe out young plants.  In the corporate world its also the unexpected that causes significant risk.  Sudden changes in priorities, funding, staffing will wipe out high potential ideas as quickly as a frost will kill a plant.  It is critical to protect your ideas from such conditions, where possible by isolating them from the unexpected situation.

Weeds – Any gardener knows that weeds left unchecked will take over a garden and rob the desirable plants of the nutrients that are required for them to grow.  Likewise, in a corporate setting weeds are the distractions that arise from the culture and slowly choke out a powerful idea by diverting the necessary resources to other areas.  This doesn’t happen overnight, but rather gradually over time.  A wise gardener will remove the weeds as they surface rather than letting them form a stronghold.  A wise innovation manager will do the same thing.

Pests – These come in many forms, but always come from outside the garden.  Their goal is to consume the plant for their own purposes, then leave when it is no longer of interest.  In the corporate world, these could be people that are outside the project team, that want to put their “stamp” on an idea so they can selfishly take credit later.  They are far less concerned about the health of the idea than being able to point to something they added.  This could be an individual or an entire department.  In either case, it is critical to be on the lookout for Pests, and repel them as efficiently as possible.

There are numerous additional analogies I could draw from this, from keeping the soil in prime condition, to harvesting at the right time.  But for now, I’ll leave it as it is.  In the meantime, my tomato plants have taken on a whole new meaning!

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April 11, 2012 · 10:27 am

Reconciling Thoughts

Two of my favorite business books of late are “Linchpin” by Seth Godin, and “A Whole New Mind” by Daniel Pink.  These two are both must reads in terms of making yourself or your organization indispensable by tapping into the artistic or right side of your brain.  Pink theorizes that many traditional jobs (e.g. accountants, lawyers, doctors) in our country will one day be outsourced to places like India where rule and process-bound jobs can be done at a much lower cost than here.  Godin refers to people that do their jobs in a routine manner, merely following orders and accepting a paycheck as “cogs” that are easily replaceable.  In contrast the Linchpin is the person that brings artistry to their job in such a way as to make themselves irreplaceable.  I get both of these things.  Having said that, I have trusted advisors in my life that might technically be classified as “cogs”, but I wouldn’t consider replacing them (at least in the foreseeable future).  I value the history and the knowledge that my doctor and my accountant have concerning me.  I feel that their recommendations about moving forward are based about their understanding of my past.  I trust their opinions even when they are not what I want to hear.  They bring a certain artistry to their work that (in my opinion) makes them the best of both worlds.

I have spent half of my career in Corporate America and the other half serving it.  And it’s in this arena that my quandary lies.  Why do big companies operate by such different rules?  If a typical company in the US found the ultimate service provider, they would still be pressured to send out bids each time they have a need. Forget the history, the knowledge the shared vision their current provider might have, they will always be looking for a new one for fear that they’re not getting the best service at the best price. I can’t help but think that a huge portion of their investment is spent in bringing the new provider up to speed, whereas a trusted advisor could hit the ground running.  

As with the previous examples, corporate service providers surely fall into two camps; cogs and linchpins.  I understand why there might be no loyalty to the bottled water supplier.  But why are the “artistic” linchpin types of firms treated like commodities?  Where are the virtual partnerships that were anticipated a decade ago?  It would appear that most companies actually prefer cogs, both in terms of their employees as well as in their service providers.  While that might not provide them with the best results, it most easily fits into their rigid processes.  It makes you wonder how things could be, if partnerships with linchpins were truly appreciated and utilized.

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March 22, 2012 · 9:48 am

Can you be a stand-alone innovator?

When we think of innovation, it typically brings a given personality to our minds.  Steve Jobs, as an example was an iconic innovator that brought many great products to life.  But a recent study by Forbes, show in fact that there are five different personality types required for successful innovation.  Their examples lead me to think of the work I used to do in forming high-performance work teams.  It is crucial to have diverse personalities involved to ensure that all perspectives are covered and the goals are met.  With innovation, there’s no difference.  For every dreamer, you need a realist.  For every big-picture visionary, you need a number-cruncher.  No one personality working in isolation, can bring successful innovation to the market.  I encourage you to read their article on this study “The Five Personalities of Innovators: Which One are You?”.   Is your organization well staffed to cover each of these areas?  If not, is this something you need to adjust in order to improve your percentage of successful launches?  I think this is well worth considering.

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March 7, 2012 · 4:46 pm

Peyton Manning – Innovation Litmus Test?

I live near Indianapolis, and all the news today is about the release of Peyton Manning from the Colts.  Twitter and Facebook posts are filled with opinions and consolations.  Most people saw this coming, but to look at the social media pages, you’d think this was a shock to everyone.

In glancing through the posts, I’ve noticed something unexpected, yet very interesting.  People seem to be falling into one of two distinct camps on this topic.  There are those that think Colt’s owner Jim Irsay is an idiot, and those that think that letting Peyton go (while saddening) was inevitable.  As I started to look at who was writing what (and knowing the backstory of many of those people) I started to see a correlation between their own lives and what they were writing.

One of the most notable “Irsay is an idiot” contributors was until recently one of the largest home builders in the city.  His comment was “Why would you ever let a proven winner go…?”.  Interestingly enough, this man’s company has gone into bankruptcy in the last year and is no longer around.  He himself had a “proven winner” in the form of a business model in this city… until the recession hit.  Even in the midst of the recession, he was passionately pursuing the largest development of his career.  Unfortunately, the world changed around him (in this case the economy).  What had always worked so well for him in the past was unable to sustain him in the present.  The sad result is that a good man and a good company went under.  Many of the other posters would fall into a similar (though less extreme) scenario.  ”You don’t let go of a winning approach”.  ”You don’t fix what’s not broken”.  You see it in their posts and you see it in their lives.

The other camp also fondly remembered and honored the past.  But they recognize that the situation has changed and it is time to move forward.  The Colts are not the Super Bowl team of a few years ago, they are admittedly in a rebuilding scenario.  Therefore, it doesn’t make sense to spend all of the team’s salary cap on bringing back a single player that will be rendered ineffective because of the lack of talent surrounding him.  Some of the people in this camp have proven to be highly resilient – even successful in spite of life’s circumstances.

In my mind, this is a perfect analogy that reflects many of the companies in our country today.  Highly innovative companies are continually rei

nventing themselves and pursuing their goals in bold new ways.  Ultra-conservative companies continue to hold onto tradition, and attempt to cost-reduce their way to success.  This worked in the 1990′s.  But it doesn’t work in 2012.  Yes we should honor the past.  We should take time to celebrate those that helped us in our past successes.  But we cannot afford to stay there as the world changes around us.  Innovation is the key to survival.  That’s true for the Colts, and that’s true for our businesses.

 

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