Shipulski On Design

Archive for the ‘Innovation’ Category

When you go to the cinema or the playhouse you go you see a show. The show may be funny, it may be sad, it may be thought-provoking, it may be beautiful, and it may take your mind off your problems for a couple of hours; but it’s not real.  Sure, the storyline is good, but it came from someone’s imagination.  And because it’s a story, it doesn’t have to bound by reality. Sure, the choreography is catchy, but it’s designed for effect. Yes, the cinematography paints a good picture, but it’s contrived. And, yes, the actors are good, but they’re actors. What you see isn’t real. What you see is theater.

If you are asked to focus on the innovation process, that’s theater.  Innovation doesn’t care about process; it cares about delivering novel customer value. The process isn’t most important, the output is. When there’s an extreme focus on the process that usually means an extreme focus on the output of the process would be embarrassing.

If you are tasked to calculate the net present value of the project hopper, that’s theater. With innovation, there’s no partial credit for projects you’re not working on. None. The value of the projects in the hopper is zero. The song about the value of the project hopper is nothing more than a catchy melody performed to make sure the audience doesn’t ask about the feeble collection of projects you are working on. And, assigning a value to the stagnant project hopper is a creative storyline crafted to hide the fact you have too many projects you’re not working on.

If you are asked to create high-level metrics and fancy pie charts, that’s innovation theater.  Process metrics and pie charts don’t pay the bills. Here’s innovation’s script for paying the bills: complete amazing projects, launch amazing products, and sell a boatload.  Full stop.  If your innovation script is different than that, ball it up and throw it away along with its producer.

If the lame projects aren’t stopped so better ones can start, if people aren’t moved off stale projects onto amazing ones, if the same old teams are charged with the innovation mandate, if new leaders aren’t added, if the teams are measured just like last year, that’s innovation theater. How many mundane projects have you stopped? How many amazing projects have you started? How many new leaders have you added? How many new teams have you formed? How will you measure your teams differently? How do you feel about all that?

If a return on investment (ROI) calculation is the gating criterion before starting an amazing project, that’s innovation theater.  Projects that could create a new product family with a fundamentally different value proposition for a whole new customer segment cannot be assigned an ROI because no one has experience in this new domain. Any ROI will be a guess and that’s why innovation is governed by judgment and not ROI.  Innovation is unpredictable which makes an ROI is impossible to predict. And if your innovation process squeezes judgment out of the storyline, that’s a tell-tale sign of innovation theater.

If the specifications are fixed, the resources are fixed, and the completion date is fixed, that’s innovation theater.  Since it can be innovation only when there’s novelty, and since novelty comes with uncertainty, without flexibility in specs, resources, or time, it’s innovation theater.

If the work doesn’t require trust, it’s innovation theater. If trust is not required it’s because the work has been done before, and if that’s the case, it’s not innovation.

If you know it will work, it’s innovation theater.  Innovation and certainty cannot coexist.

If a steering team is involved, it’s innovation theater.  Consensus cannot spawn innovation.

If more than one person in charge, it’s innovation theater.  With innovation, there’s no place for compromise.

And what to do when you realize you’re playing a part in your company’s innovation theater? Well, I’ll save that for another time.

“Large clay theatrical mask, Romisch-Germanisches Museum, Cologne” by Following Hadrian is licensed under CC BY-SA 2.0

When your idea is novel, no one will steal it. No NDA required.

If your idea is truly novel, no one will value it. And that’s how you’ll know it’s novel.

When your idea is novel, no one will adopt it. This isn’t much of a stretch as, due to not-invented-here (NIH), no one will adopt anyone else’s idea – novel or not.

When your idea is novel, it will be misunderstood, even by you.

When your idea is novel, it will evolve into something else and then something else. And then it might be ready for Prime Time.

Novel ideas are like orchids – they need love beyond the worth of their blossom.

If your idea hasn’t failed three times, it’s not worth a damn.

The gestation period for novel ideas is long; if it comes together quickly, it’s not novel.

The best way to understand your novel idea is to make a prototype. And then another one.

Your first novel idea won’t work, but it will inform the next iteration. And that one won’t work either, and the cycle continues. But that’s how it goes with novel ideas.

If everyone likes your novel idea, it isn’t novel.

If no one likes your novel idea, you may be on to something.

If you’re not misunderstood, you’re doing it wrong.

If your dog likes your idea, you can’t say much because he loves you unconditionally and will always tell you what you want to hear.

If you think your novel idea will create a whole new product line in two years, your timeline is off by a factor of three, or five.

If your most successful business unit tries to squash your novel idea it’s because it threatens them. Stomp on the accelerator.

When you are known to give air cover to novel ideas, the best people want to work for you.

“it seemed like a good idea at the time” by woodleywonderworks is licensed under CC BY 2.0

Technical risk – Will it work?

Market risk – Will they buy it?

Emotional risk – Will people laugh at your crazy idea?

Technical risk – Test it in the lab.

Market risk – Test it with the customer.

Emotional risk – Try it with a friend.

Technical risk – Define the right test.

Market risk – Define the right customer.

Emotional risk – Define the right friend.

Technical risk – Define the minimum acceptable performance criteria.

Market risk – Define the minimum acceptable response from the customer.

Emotional risk – Define the minimum acceptable criticism from your friend.

Technical risk – Can you manufacture it?

Market risk – Can you sell it?

Emotional risk – Can you act on your crazy idea?

Technical risk – How sure are you that you can manufacture it?

Market risk – How sure are you that you can sell it?

Emotional risk – How sure are you that you can act on your crazy idea?

Technical risk – When the VP says it can’t be manufactured, what do you do?

Market risk – When the VP says it can’t be sold, what do you do?

Emotional risk – When the VP says your idea is too crazy, what do you do?

Technical risk – When you knew the technical risk was too high, what did you do?

Market risk – When you knew the market risk was too high, what did you do?

Emotional risk – When you knew someone’s emotional risk was going to be too high, what did you do?

Technical risk – Can you teach others to reduce technical risk? How about increasing it?

Market risk – Can you teach others to reduce technical risk? How about increasing it?

Emotional risk – Can you teach others to reduce emotional risk? How about increasing it?

Technical risk – What does it look like when technical risk is too low? And the consequences?

Market risk – What does it look like when technical risk is too low? And the consequences?

Emotional risk – What does it look like when emotional risk is too low? And the consequences?

We are most aware of technical risk and spend most of our time trying to reduce it.  We have the mindset and toolset to reduce it.  We know how to do it.  But we were not taught to recognize when technical risk is too low.  And if we do recognize it’s too low, we don’t know how to articulate the negative consequences. With all this said, market risk is far more dangerous.

We’re unfamiliar with the toolset and mindset to reduce market risk. Where we can change the design, run the test, and reduce technical risk, market risk is not like that.  It’s difficult to understand what drives the customers’ buying decision and it’s difficult to directly (and quickly) change their buying decision. In short, it’s difficult to know what to change so they make a different buying decision.  And if they don’t buy, you don’t sell. And that’s a big problem.  With that said, emotional risk is far more debilitating.

When a culture creates high emotional risk, people keep their best ideas to themselves. They don’t want to be laughed at or ridiculed, so their best ideas don’t see the light of day. The result is a collection of wonderful ideas known only to the underground Trust Network. A culture that creates high emotional risk has insufficient technical and market risk because everyone is afraid of the consequences of doing something new and different.  The result – the company with high emotional risk follows the same old script and does what it did last time.  And this works well, right up until it doesn’t.

Here’s a three-pronged approach that may help.

1. Continue to reduce technical risk.
2. Learn to reduce market risk early in a project.
3. And behave in a way that reduces emotional risk so you’ll have the opportunity to reduce technical and market risk.

Image credit — Shan Sheehan

When you see good work, say so.

When you see exceptional work, say so in public.

When you’ve had good teachers, be thankful.

When you’ve had exceptional teachers, send them a text because texts are personal.

When you do great work and no one acknowledges it, take some time to feel the pain and get back to work.

When you do great work and no one acknowledges it, take more time to feel the pain and get back to work.

When you’ve done great work, tell your family.

When you’ve done exceptional work, tell them twice.

When you do the work no one is asking for, remember your time horizon is longer than theirs.

When you do the work that threatens the successful business model, despite the anguish it creates, keep going.

When they’re not telling you to stop, try harder.

When they’re telling you to stop it’s because your work threatens.  Stomp on the accelerator.

When you can’t do a project because the ROI is insufficient, that’s fine.

When no one can calculate an ROI because no one can imagine a return, that’s better.

When you give a little ground on what worked, you can improve other dimensions of goodness.

When you outlaw what worked, you can create new market segments.

When everyone understands why you’re doing it, your work may lead to something good.

When no one understands why you’re doing it, your work may reinvent the industry.

When you do new work, don’t listen to the critics. Do it despite them.

When you do work that threatens, you will be misunderstood.  That’s a sign you’re on to something.

When you want credit for the work, you can’t do amazing work.

When you don’t need credit for the work, it opens up design space where the amazing work lives.

When your work makes waves, that’s nice.

When your work creates a tsunami, that’s better.

When you’re willing to forget what got you here, you can create what could be.

When you’re willing to disrespect what got you here, you can create what couldn’t be.

When your work is ignored, at least you’re doing something different.

When you and your work are derided, you’re doing it right.

Image credit — Herry Lawford

If the project could obsolete your best work, do it.  Otherwise, do something else.

But first, makes sure there’s solid execution on the turn-the-crank projects that pay the bills.

If you always say yes to projects, you never have the bandwidth to do the magical work no one is asking for.

When was the last time you used your discretion to work on a project of your choosing? How do you feel about that?

If you’re told to stop the project by the most successful business unit, stomp on the accelerator.

The best projects aren’t the ones with the best ROI. The best projects are the ones that threaten success.

If you’re certain of a project’s ROI, there is no novelty.

If the project has novelty, you can’t predict the ROI. All you can do is decide if it’s worth doing.

There’s a big difference between calculating an ROI and predicting the commercial success of a project.

If your company demands certainty, you can be certain the new projects will be just like the old ones.

If the success of a project hinges on work hasn’t been done before, you may have a winner.

Say yes to predictability and you say no to novelty.

Say no to novelty and you say no to innovation.

Say no to innovation and you say no to growth.

Say no to growth and the game is over.

Say no to good projects so you can say yes to the magical ones.

Say no to ROI so you work on projects that could reinvent the industry.

If the project doesn’t excite, just say no.

Image credit – Lucie Provincher

If you have more features, I will beat you with fewer.

If you have a broad product line, I will beat you with my singular product.

If your solution is big, mine will beat you with small.

If you sell across the globe, I will sell only in the most important market and beat you.

If you sell to many customers, I will provide a better service to your best customer and beat you.

If your new projects must generate $10 million per year, I will beat you with $1 million projects.

If you are slow, I will beat you with fast.

If you use short term thinking, I will beat you with long term thinking.

If you think in the long term, I will think in the short term and beat you.

If you sell a standardized product, I will beat you with customization.

If you are successful, I will beat you with my hunger.

If you try to do less, I will beat you with far less.

If you do what you did last time, I will beat you with novelty.

If you want to be big, I will be a small company and beat you.

I will beat you with what you don’t have.

Then, I will obsolete my best work with what I don’t have.

Your success creates inertia. Your competitors know what you’re good at and know you’ll do everything you can to maintain your trajectory.  No changes, just more of what worked.  And they will use your inertia. They will start small and sell to the lowest end of the market. Then they’ll grow that segment and go up-scale. You will think they are silly and dismiss them. And then they will take your best customers and beat you.

If you want to know how your competitors will beat you, think of your strength as a weakness.  Here’s a thought experiment to explain.  If your success is based on fast, turn speed into weakness and constrain out the speed. Declare that your new product must be slow. Then, create a growth plan based on slow.  That growth plan is how your competitors will beat you.

Your growth won’t come from what you have, it will come from what you don’t have.

It’s time to create your anti-product.

I know you’re trying to do something that has never been done before, but when will you be done? I don’t know.  We’ll run the next experiment then decide what to do next.  If it works, we’ll do more of that.  And if it doesn’t, we’ll do less of that. That’s all we know right now.

I know you’re trying to create something that is new to our industry, but how many will we sell? I don’t know. Initial interviews with customers made it clear that this is an important customer problem. So, we’re trying to figure out if the technology can provide a viable solution.  That’s all we know right now.

No one is asking for that obscure technology. Why are you wasting time working on that?  Well, the voice of the technology and the S-curve analyses suggest the technology wants to move in this direction, so we’re investing this solution space.  It might work and it might not.  That’s all we know right now.

Why aren’t you using best practices? If it hasn’t been done before, there can be no best practice.  We prefer to use good practice or emergent practice.

There doesn’t seem like there’s been much progress.  Why aren’t you running more experiments? We don’t know which experiments to run, so we’re taking some time to think about what to do next.

Will it work?  I don’t know.

That new technology may obsolete our most profitable product line.  Shouldn’t you stop work on that? No. If we don’t obsolete our best work, someone else will. Wouldn’t it be better if we did the obsoleting?

How many more people do you need to accelerate the technology development work? None.  Small teams are better.

Sure, it’s a cool technology, but how much will it cost?  We haven’t earned the right to think about the cost.  We’re still trying to make it work.

So, what’s your solution? We don’t know yet.  We’re still trying to formulate the customer problem.

You said you’d be done two months ago.  Why aren’t you done yet? I never said we’d be done two months ago. You asked me for a completion date and I could not tell you when we’d be done.  You didn’t like that answer so I suggested that you choose your favorite date and put that into your spreadsheet. We were never going to hit that date, and we didn’t.

We’ve got a tight timeline.  Why are you going home at 5:00? We’ve been working on this technology for the last two years.  This is a marathon.  We’re mentally exhausted.  See you tomorrow.

If you don’t work harder, we’ll get someone else to do the technology development work.  What do you think about that? You are confusing activity with progress.  We are doing the right analyses and the right thinking and we’re working hard.  But if you’d rather have someone else lead this work, so would I.

We need a patented solution.  Will your solution be patentable? I don’t know because we don’t yet have a solution. And when we do have a solution, we still won’t know because it takes a year or three for the Patent Office to make that decision.

So, you’re telling me this might not work?  Yes. That’s what I’m telling you.

So, you don’t know when you’ll be done with the technology work, you don’t know how much the technology will cost, you don’t know if it will be patentable, or who will buy it? That’s about right.

Image credit — Virtual EyeSee

When it’s time to make meaningful change, there’s no time for consensus.

When the worn path of success must be violated, use a small team.

When it’s time for new thinking, create an unreasonable deadline, and get out of the way.

The best people don’t want the credit, they want to be stretched just short of their breaking point.

When company leadership wants you to build consensus before moving forward, they don’t think the problem is all that important or they don’t trust you.

When it’s time to make unrealistic progress, it’s time for fierce decision making.

When there’s no time for consensus, people’s feelings will be hurt. But there’s no time for that either.

When you’re pissed off because there’s been no progress for three years, do it yourself.

When it’s time to make a difference, permission is not required. Make a difference.

The best people must be given the responsibility to use their judgment.

When it’s time to break the rules, break them.

When the wheels fall off, regardless of the consequences, put them back on.

When you turn no into yes and catch hell for violating protocol, you’re working for the wrong company.

When everyone else has failed, it’s time to use your discretion and do as you see fit.

When you ask the team to make rain and they balk, you didn’t build the right team.

When it’s important and everyone’s afraid of getting it wrong, do it yourself and give them the credit.

The best people crave ridiculous challenges.

When the work must be different, create an environment that demands the team acts differently.

When it’s time for magic, keep the scope tight and the timeline tighter.

When the situation is dire and you use your discretion, to hell with anyone who has a problem with it.

When it’s time to pull a rabbit out of the hat, you get to decide what gets done and your special team member gets to decide how to go about it.  Oh, and you also get to set an unreasonable time constraint.

When it’s important, to hell with efficiency.  All that matters is effectiveness.

The best people want you to push them to the limit.

When you think you might get fired for making a difference, why the hell would you want to work for a company like that?

When it’s time to disrespect the successful business model, it’s time to create harsh conditions that leave the team no alternative.

The best people want to live where they want to live and do impossible work.

Image credit — Bernard Spragg. Nz

What it takes to do new work.

Confidence to get it wrong and confidence to do it early and often.

Purposeful misuse of worst practices in a way that makes them the right practices.

Tolerance for not knowing what to do next and tolerance for those uncomfortable with that.

Certainty that they’ll ask for a hard completion date and certainty you won’t hit it.

Knowledge that the context is different and knowledge that everyone still wants to behave like it’s not.

Disdain for best practices.

Discomfort with success because it creates discomfort when it’s time for new work.

Certainty you’ll miss the mark and certainty you’ll laugh about it next week.

Trust in others’ bias to do what worked last time and trust that it’s a recipe for disaster.

Belief that successful business models have half-lives and belief that no one else does.

Trust that others will think nothing will come of the work and trust that they’re likely right.

Image credit — japanexpertna.se

Two important questions to help you grow your business:

1. Is the problem worth solving?
2. When do you want to learn it’s not worth solving?

No one in your company can tell you if the problem is worth solving, not even the CEO. Only the customer can tell you if the problem is worth solving. If potential customers don’t think they have the problem you want to solve, they won’t pay you if you solve it. And if potential customers do have the problem but it’s not that important, they won’t pay you enough to make your solution profitable.

A problem is worth solving only when customers are willing to pay more than the cost of your solution.

Solving a problem requires a good team and the time and money to run the project. Project teams can be large and projects can run for months or years. And projects require budgets to buy the necessary supplies, tools, and infrastructure. In short, solving problems is expensive business.

It’s pretty clear that it’s far more profitable to learn a problem is not worth solving BEFORE incurring the expense to solve it.  But, that’s not what we do.  In a ready-fire-aim way, we solve the problem of our choosing and try to sell the solution.

If there’s one thing to learn, it’s how to verify the customer is willing to pay for your solution before incurring the cost to create it.

Image credit — Milos Milosevic

Everything has a half-life, but we don’t behave that way.  Especially when it comes to success.  The thinking goes – if it was successful last time, it will be successful next time.  So, do it again. And again.  It’s an efficient strategy – the heavy resources to bring it to life have already been spent. And it’s predictable – the same customers, the same value proposition, the same supply base, the same distribution channel, and the same technology. And it’s dangerous.

Success is successful right up until it isn’t. It will go away. But it will take time.  A successful product line won’t fall off the face of the earth overnight. It will deliver profits year-over-year and your company will come to expect them.  And your company will get hooked on the lifestyle enabled by those profits. And because of the addiction, when they start to drop off the company will do whatever it takes to convince itself all is well.  No need to change.  If anything, it’s time to double-down on the successful formula.

Here’s a rule: When your successful recipe no longer brings success, it’s not time to double-down.

Success’s decline will be slow, so you have time.  But creating a new recipe takes a long time, so it’s time to declare that the decline has already started. And it’s time to learn how to start work on the new recipe.

Hardship 1 – Allocate resources differently. The whole company wants to spend resources on the same old recipes, even when told not to.  It’s time to create a funding stream that’s independent of the normal yearly planning cycle.  Simply put, the people at the top have to reallocate a part of the operating budget to projects that will create the next successful platform.

Hardship 2 – Work differently. The company is used to polishing the old products and they don’t know how to create new ones. You need to hire someone who can partner with outside companies (likely startups), build internal teams with a healthy disrespect for previous success, create mechanisms to support those teams and teach them how to work in domains of high uncertainty.

Hardship 3 – See value differently. How do you provide value today? How will you provide value when you can’t do it that way? What is your business model? Are you sure that’s your business model? Which elements of your business model are immature? Are you sure? What is the next logical evolution of how you go about your business? Hire someone to help you answer those questions and create projects to bring the solutions to life.

Hardship 4 – Measure differently. When there’s no customer, no technology and no product, there’s no revenue.  You’ve got to learn how to measure the value of the work (and the progress) with something other than revenue.  Good luck with that.

Hardship 5 – Compensate differently. People that create something from nothing want different compensation than people that do continuous improvement. And you want to move quickly, violate the status quo, push through constraints and create whole new markets. Figure out the compensation schemes that give them what they want and helps them deliver what you want.

This work is hard, but it’s not impossible. But your company doesn’t have all the pieces to make it happen.  Don’t be afraid to look outside your company for help and partnership.

Image credit — Insider Monkey