Innovation

playing it safe is too risky

Beige sells. Average sells. Vanilla sells. The comfort of conformity sells. Meeting most of the needs of most people builds big businesses.

All the marketing books tell us we need to differentiate our products and stand out. Build that brand image. And then 95% of businesses try to stand out by fitting in. The word “innovation” is thrown around these days as the holy grail of business success, yet from the customers’ point of view it often just means: we’re as leading edge as all our competitors.

Similarly, there’s a lot of talk of authenticity lately. We’re told we need to be authentic leaders keepin’ it real while we bring out the authentic best in our teams so we can sell authentic products to our authentic customers. A nice thought, but a hard sell. There are very real social and business costs to being authentic. The biggest is that some people will not like you, some people will reject you. So we try to be “authentic” in a way that everyone likes. (hint: that doesn’t work)

Being all things to all people is the fastest, most direct route to mediocrity. Vanilla products sell because they fit the needs of the most people, but no one is passionate about vanilla. It becomes a commodity. They buy your vanilla product today, but there’s nothing to keep them from replacing it with a competitor’s vanilla product. When you have a commodity you are only competing on price.

Being all things to all people creates a bigger customer pool. But we forget that it also attracts more competitors. I recall an interview with an actress years ago. She had had some acting success as a teenager, but her appearance was non-Hollywood so she was only considered for a few parts. Wanting more parts, she had plastic surgery done, bleached her hair, and voila! She now looked just like every other wannabe actress. She blended in and faded away.

Here’s my test for authenticity: Are you willing to turn down business because what’s being asked is not what you’re best at? Are you willing to turn down 1,000 potential customers who are kind of interested in your product or service so that you can focus on the 100 customers that are deeply interested?

As an individual are you willing to turn down or leave a job that doesn’t fit who you are and how you want to affect the world? Are you willing to be known for your uniqueness? Are you willing to be known for who you are? Are you willing to define yourself and bring every ounce of greatness, passion, and soul to your work?

You don’t have to, you know. And I don’t fault anyone who doesn’t. Authentic has risks. Different has risks. Standing out has risks.

But so does blending in. So does being average, beige, mediocre. No person or business will ever attain greatness by being one of a million. It’s only done by being one in a million.

asking different questions, solving different problems

The freaks, weirdos, and innovators – the people who stand out and stand different – are often different only because they are solving different problems than the rest of us. Put another way, their solutions are different because their goals and questions are different.

Southwest Airlines operates so differently from other airlines in large part because when they started out they were not competing with other airlines. Instead, they decided to compete against buses and trains and even cars. Their insight and innovations came from solving different problems.

When you look at all the different types of cars on the road it’s clear that different people are solving different problems. A turbodiesel pickup solves different problems than a sports car which solves different problems than a minivan or an SUV and they solve different problems than economy cars.

A few days ago a new car was released. It’s a performance luxury sedan that will accelerate from 0-60 in a hair under 4.5 seconds (that’s deep into sports car territory) and has a lower center of gravity and potentially better handling than any other sedan. The dealer and will come to the customer’s location for maintenance and can do a lot of repairs remotely using a built in wireless connection into the car’s computer. It costs about $55k – $105k depending on options and performance levels. This car clearly has BMW, Mercedes, Jaguar, Audi, etc. right in its sights. Oh, and it’s a new company based in the US which is a sister to an aerospace company. Interested? Appearance and performance alone got my attention, but the most intriguing part is that it is 100% electric.

Actually, that’s not true. I really like the car, or at least what the car potentially promises, but what I most appreciate is that this company – Tesla – chose to solve a completely different set of problems. Other electric cars choose to be funky looking, easily identifiable, and aimed at environmentalists and Hollywood activists. The emphasis is on “electric” and they designed to appeal to those who are most interested in demonstrating to the world how Green they are.

Tesla, on the other hand, appears to have decided to build a really great car, a car whose appearance, price, and performance would appeal to anyone seeking a performance luxury sedan. It just happens to have an electric motor rather than a gas engine. They see the electric motor as a solution to performance, not necessarily environmental, problems. As a result, this car is competing against gasoline engines, not other electric cars. And that has the potential to be a complete game changer.

I haven’t driven one, I can’t speak to whether or not it’s a good car, and this isn’t an ad for Tesla. I am, however, impressed that they chose to blow up the old business model and change the game. Perhaps the most significant thing they did early on was define their competition rather than letting their competition define them. Just as Southwest Air did 40 or so years ago, they asked different questions and got different answers.

This can be done in any business, but takes courage and a willingness to stand apart. We even see this in Human Resources. The traditional question is: How do we stay compliant? The game changing question (with all due credit to Jason Lauritsen) is: How will HR support and increase company performance?

What question will change things in your industry? At your company? In your career?

 

innovation can’t be done on cue

All the business articles and blogs are telling us we need to be more innovative and just how to do it with the righteousness of tabloids touting the latest celebrity diet. Innovation as a buzzword is all the rage.

So we start innovation task forces and committees and add “innovation” to job descriptions and mission statements and company values and we INNOVATE! Except we don’t.

It all falls apart because we treat innovation like it’s a task on a to-do list or a product we can purchase. Innovation is not a project to be managed. Innovation not an outcome. Think about it this way: no one wants a diet – they want to be thin and fit. Likewise, no one really wants innovation – we just want a competitive advantage.

The most innovative and creative people I know have several things in common:

They are intensely curious about many, many different things. They read and explore ideas constantly.

They are able to bring seemingly unrelated ideas together across several different fields. Experts get stuck with the “known” of their narrow world. Innovators are almost never described as experts – they aren’t attached to the status quo in any one field so they are never stuck rehashing the solutions. They are free to incorporate solutions from everywhere.

They love to make the complicated simple.

They are a little weird and a little odd. They think differently and ask questions no one else asks. They wonder why things are the way they are and why things couldn’t be different.

They take time to think. Inspiration doesn’t happen according to schedule . It generally strikes when we’re working on something completely different, in the shower, while on a run, sitting on a park bench, or doodling in a boring meeting.

They don’t care about your opinion. If they did, they’d get stuck trying to fit in with societal groupthink. Instead, they go their own way and hope you’re smart enough to join them. This is very important because innovative ideas rarely get past a committee. Instead, it really seems to come from people and companies who don’t have to account to others for wanting to change the status quo. Either because they were in charge like Steve Jobs or Mark Zuckerberg or because they’ve been given license to play like at 3M, Google, or various skunkworks groups that operate protected from company norms, or because they have no vested interest in the status quo to begin with.

They NEVER, EVER, NOT EVEN ONCE set out to innovate. They think different and want to find better solutions.

Forget innovation. Focus on creating great new products and services and improving the existing ones. That’s where innovation lives.

innovation paradox

There is a huge paradox when it comes to change and innovation. Those have the most knowledge and perspective and who should be leading the charge and often the least likely to raise the innovation banner.

The people with a vested interest in the status quo (whether intellectual, emotional, financial, etc.) will argue the loudest and longest against change. Oddly enough, it’s the professional organizations, trade magazines ,  leaders in the field, etc. who seem to scream the most against the innovations that could actually improve the field. Rather than pushing for improvement, they have a vested interest and deep understanding for how things are and a very limited appreciation for how things could be. Or soon will be.

The problem for them (and any of us resisting change) is that no matter how loud of tantrums they throw, no matter how much they try to legislate, regulate, and block change, the rest of the world goes about its business and soon leaves them behind, arguing amongst themselves.

Denial is not a change strategy. We can find ways to get ahead of and benefit from the change or we can get drug along behind. Our choice.

short book review: Dangerous Ideas by Alf Rehn

Innovation and creativity are all the buzz. You can’t escape the flash flood of blogs and articles telling you how to be more creative. I had gotten pretty jaded and had started thinking that maybe we should worry less about being Innovative (with a capital “I”) and worry more about just making better stuff and providing better service.

I want to believe that the true masters of creativity and  innovation do NOT start the day with a big whoop and a cheer of “Let’s innovate today!” Rather, they just relentlessly ask how they can improve things and look beyond the walls of their own fields and ideas. They ignore how it’s “supposed” to be done and instead do it right.

That’s where this book comes in. The subtitle is “When Provocative Thinking Becomes Your Most Valuable Asset” and Alf delights in being provocative and contrarian. He works hard to keep us thinking creatively about creative thinking.

I found it a straightforward and good read. It flows well and moves right along, which is a bit of a rarity amongst business books with substance. And it does have substance. Some of the high points:

  • He shows how people typically approach creativity from very uncreative ways. And why that shouldn’t surprise us.
  • Alf takes on the Belief around the cult of innovation that prevents us from innovating and he shows how our brains are hardwired to avoid innovative thinking. He goes on to point out that our discomfort with being different causes us to back off and prevents truly creative thoughts.
  • Creativity is hard freakin’ work. It’s unpleasant. It’s difficult. It involves wrestling with the unknown and untried. No wonder people resist.
  • When innovation is more hindrance than blessing (blasphemy?).
  • How and why copying other ideas plays a big role in actual innovation. What, you say, copying is not creative! Well, you may be wrong (hint: Steve Jobs did not actually invent the MP3 player).
  • Why we only think we want a bunch of creative people in the company.
  • The fun of conflict and value of opposition when trying to think creatively.
  • Diversity and creativity and why efforts at diversity generally come up lacking real diversity.
  • “The World’s Shortest Course of Creativity”. Yes, he does actually provide ideas and exercises to help you be more creative. It shouldn’t surprise you that they are probably not quite what you’re expecting.
  • The importance of shutting off creativity and actually producing something. Analytical types suffer “paralysis of analysis” and creatives can get caught in a similar whirlpool of thinking, thinking, and thinking some more without actually doing. That doesn’t help.

All in all, a very good take on creativity and innovation and one that I have enthusiastically already recommended to others. A little hard to track down in the States (the internet is your friend), but well worth the effort.

ways to make HR awesome

If you think the purpose of HR is to prevent the company from getting sued, please quit and go work for the competition right now.

Realize HR has customers.  Make life simpler, easier, better for your customers. Solve your customer’s problems.

Become so good at customer service that people brag that your company has the Nordstrom’s of HR.

Consider the possibility that the purpose of HR is to help leaders make better decisions. [So says David Ayre of Nike and I agree with him.] Own it, rock it, develop processes around it. Make it your mission to help leaders make better selection, training, retention, and de-selection decisions.

Making a difference in people’s lives and impacting results is fun. Administration is the necessary evil of HR. Nail administration so you can move on to the fun.

Develop a love and understanding for business. Read the HR mags if you want, but also get into Forbes, Fortune, WSJ, Fast Company, Time, The Economist. Maybe inc. or Entrepreneur. Become a business person who gets HR rather than an HR person gets business (or worse, an HR person who is vaguely aware of this thing called “business”).

Ditch the HR mags and read the scholarly journals like Personnel Psychology.

Attend conferences focused on the core business of the company you support. Maybe skip the HR conference this year (blasphemy!) and attend a manufacturing, banking, engineering, retail, etc. conference.

Leave your office. Go talk to people outside your department.

Attend conferences for the departments you support. Do you have any idea how much you would learn and how much you would freak people out if you attended, say, a CFO conference?

Spend a day observing and shadowing a key customer.

Play to win. Have fun. Make a freakin’ difference.

Other ideas?

read any good books lately?

I love books. One of my great frustrations in life is the knowledge that I will never be able to read (and reread) all the books I want to. No matter how deep the stack of “must reads” gets, I’m always looking for more. So, I thought I’d share my list of current reads and maybe a few favorites. There’s lots more I could have included (how could I skip Jim Rohn?!? – next time), but this is a good start.

 

Currently reading:

Adaptability: the art of winning in an age of uncertainty by Max McKeown (twitter: @maxmckeown). I’m a HUGE fan of Max McKeown. It frustrates me to no end that he is still relatively unknown in the States (that will change). I feel he’s one of the best at taking complex ideas and making them simple, practical, relevant, and important. I got so tired waiting for Adaptability to come out on paperback that I borrowed my wife’s e-reader and purchased it electronically. Well worth it.

Bounce: Mozart, Federer, Picasso, Beckham, and the Science of Success by Matthew Syed. In the vein of Talent is Overrated and Outliers. A nice reminder that talent and interest get you in the game, but passion and hard, hard work keep you there.

 

Next Up:

Degrees of Strength: The Innovative Technique to Accelerate Greatness by Craig Ross and Steven Vannoy (@rossbestever). The latest from the boys who did Stomp the Elephant in the Office: Put an End to the Toxic Workplace, Get More Done – and Be Excited About Work Again. Full disclaimer: I used to work with Craig and Steve and consider them important mentors in my life. They are also two of the most passionate people you’ll meet when it comes to transforming leaders and workplaces.

Dangerous Ideas: When Provocative Thinking Becomes Your Most Valuable Asset by Alf Rehn (@alfrehn). I haven’t read any of his books yet, but love the concept of the book and ideas he puts out on twitter. Can’t wait to read it.

 

Recently Read:

The Strategy Book by Max McKeown. I recently did a short review of this book here.

The Truth About Innovation by Max McKeown. From the back cover: “Innovation rocks. It rolls. It makes the world go round. In a definitive set of ‘home-truths,’ you’ll discover how to harness its power to increase creativity, collaboration and profit. Are you ready to change the world?” Yes, Max, I am. Thanks for helping.

Unshrink Yourself, Other People, Business, the World by (you guessed it!) Max McKeown. So, no I don’t know Max personally, have no stake in him selling more books, and do actually read books by other authors. However, I was so impressed by The Strategy Book that I immediately sought out other books by him and with each new book my enthusiasm only grows. He writes the books I wish I could write. Good, good stuff. This one is about destroying the myths that keep us small and prevent growing ourselves, those around us, business, and (yep) the world.

 

Long-Time Favorites:

Think and Grow Rich by Napoleon Hill and How to Win Friends and Influence People by Dale Carnegie. Combine the ideas in these two books from the 1930’s and very, very little new has been written since then. Most personal development and success books since can trace their roots back to these two books.

The Greatness Guide: 101 Lessons for Making What’s Good at Work and In Life Even Better by Robin Sharma (@_robin_sharma). I’ve read this book at least four times in as many years. Although he’s better known for The Monk Who Sold His Ferrari, I feel this collection of short lessons (none of them more than about a page and a half long) is a far superior, more practical, and more motivating book.

It’s Called Work for a Reason: Your Success is Your Own Damn Fault! by Larry Winget (@larrywinget). He’s fun, down to earth, and doesn’t suffer victims or fools.

 

How about you? What are some books you’d recommend adding to my must read list?

simplify, then add lightness

I’m a big fan of good policy and process because it allows for quick, consistent, and better decision making. It says that when this event happens, we respond this way. No agonizing, no reinventing the wheel, no he said/she saids or playing mom off of dad. Policy defines how we as a company have decided – in advance – to deal with certain situations. Process defines how we will do certain tasks and ultimately supports and makes it easy to adhere to policies.

Great policies and processes enable decisions to be made as quickly and as low in the organization as possible. Decisions made on the ground are always more relevant to the immediate situation than decisions made even one or two levels up.

The problems start when we adhere to policy for the sake of policy, rather than to help make better decisions. Policy should guide thinking and decision making, not replace it. Once we let policy and process replace judgment and thinking, then we must exponentially expand the number of policies and procedures to cover every possible situation that could possibly come up. When new situations arise, even one-time anomalies, another policy must be added. The more specific the policies, the more policies we must have. Soon, we’re crushed with bureaucracy and we’re safe because we’re sticking with policy even when it’s the wrong thing to do.

Unfortunately, thriving in this world requires dealing with new situations. Little to no innovation is possible in bureaucracy. The tighter the policies, the less judgment allowed, the higher in the organization decisions must be made and the less we are able to innovate, adapt, and invent.

Colin Chapman, founder of Lotus Cars and legendary race car engineer, famously once said that the secret to building a winning race car is to “simplify, then add lightness.” Simple parts and systems are less likely to break. Reducing weight makes a car quicker, better handling, more responsive, and reduces the amount of strain and wear on critical components. He understood cars, but might have well been talking about organizations.

The internet is full of people babbling on about the need for companies to be more innovative, react more quickly, and adapt faster. But it misses a crucial point: nimble companies react quickly, ponderous companies don’t. You can’t be driving along in a city bus and expect it to stop, accelerate, and turn on a dime just because you want it to. Mass creates momentum. Yet, we smugly suggest that bus size companies should behave like race cars.

Solution? Simplify, then add lightness. Good policy and process provides just enough framework to make decisions consistent with the strategic direction of the company. And not a gram more.

Four prime examples:

1. The US Constitution. This document is a miracle of simplicity. The few Americans who have actually bothered to read it know that it is amazingly stripped down and simple. In fact, it’s only about 7,400 words long (call it about 16 pages). Knowing that they couldn’t accurately imagine every possible situation that would need to be accounted for, the authors simply created an enduring framework that would enable adaptation. It was so simple and brief that they had to immediately amend it to establish and protect basic rights.

2. Nordstrom. Nordstrom’s focus is customer service and they want nothing to get in the way of employees providing phenomenal service. Their entire employee handbook is reported as listing only ONE rule: “Use good judgment in all situations.” And then there is brief mention to feel free to ask the department or store manager or HR any question at any time.

3. Apple Computers. Steve Jobs genius was not leadership: it was an unrelenting focus to make things as simple as humanly possible and then make them even simpler. How many steps does it take to get to any song on an iPod? (Hint: you won’t come even close to using all the fingers on one hand when you’re counting.)

4. Amazon. 1-click ordering. Enough said.

Um, how big’s your policy manual again? How many pages does the dress code really need to be? How many steps are truly necessary to for a customer to return an item? How easy is it for the customer to give you their money?

it’s the little things

I despise and resent pre-paying for gas. I find it to be a major pain in the rear. Either I pay at the pump with a card and then go in and pay again (because I’m probably going to get a snack or soda while I’m there), pay once and forego my snack, or make several trips back and forth and stand in line a few times.

It’s interesting how quickly we humans adjust to and even expect such poor service. With nearly 100% of gas stations now requiring pre-pay we deem such lousy treatment acceptable and the norm. Why?

Hmmm. That’s a bit tougher. Certainly we all understand that this prevents drive offs, but how big of a problem is it really? Imagine if you couldn’t try on clothes until after you’d paid for them because it helped prevent shop lifting. Makes sense, but is it an acceptable solution, and would anyone shop there? No. That’s why stores use other measures to prevent theft.

I’ll admit, this sounds like a silly point of contention if only because the pre-pay system is so prevalent. Aren’t their bigger injustices to rail against? Sure. But how many other industries could inconvenience their customers, treat everyone who shops there like a criminal, and still thrive?

I go out of my way to pay more for gas because there is a local convenience store that will let me pump first. That’s how strongly I feel about it. Not everyone feels the way I do, but I can’t help but wonder about other people’s pet peeves. I’m sure other examples abound of people accepting higher price or having to go a bit out of their way because they prefer the service, selection, product, whatever at a certain store.

The challenge is that when everyone’s doing it and customers don’t have a choice it’s hard to identify these areas. I remember when I first moved to the Midwest back in the mid-nineties. I was in a mildly rural area and customer service was horrendously bad. But it was so universally terrible it was simply a case of “it is what it is” and no one knew different or cared. Then the big box stores came in. Say what you will about them, they had much better service and forced all the other companies to play catch up. Within a few years, the overall customer service for the entire area had improved markedly.

You can really only compete on price or differentiation. Being lowest cost is a losing battle for most. That leaves differentiation which means providing a product or service different enough to be worth paying a little more for. That might be selection, customer service, outstanding return policy, unique product or knowledge, etc.

Whatever your business or field, I can spend five minutes on google and find someone offering it cheaper. Let’s put this in an HR perspective (please tweak to think about from your business/field’s point of view): it wouldn’t take long to find a vendor that I could outsource your entire HR department to for less than your company is paying for internal HR right now. Keeping HR internal is not the cheapest option. So what value are you providing that differentiates you from your competition?

Where are you making life more difficult for your customers because it’s more convenient for you? What are the things your customers really value? What could you do that would be free or low-cost that would make life easier for your customers? These questions are doubly valuable if you are in a support department and have internal customers. Without external options it’s easy to get slack. Try this on: if your internal customers had three other options for your product or service would they choose you? Why should they?