08 February
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Exploring the Fifth and Sixth P of Marketing

For years I’ve written about how the 4 Ps of Marketing, Product, Place, Pricing, and Promotion represented a dated perspective of customers and markets. In an era of connected consumerism, one could argue the merits of any of “Ps” and whether or not they’re still relevant. I suppose that’s a debate for another time. Instead, I’d like to introduce of two additional Ps that will propel a decades old concept and modernize it for a social economy.

Truth be told, there are many words that can find their way into this discussion. I’m sure we can find words that begin with the same consonant. But we now live in an era where customers are more connected, informed, and empowered, and as a result, their expectations amplify and modify. To adapt, new pillars are needed whether or not they start with the letter P. Rather than run through the dictionary, I would like to share two words that I believe are more important than ever before—people and purpose.

For those who’ve followed my work over the last decade, you’ll note that I’ve often referred to “people” as the “5th P of Marketing.” It wasn’t until recently however that I finally put all of the pieces together to consider a 6th P, in this case adding “Purpose” to the mix.

While on stage at the Pivot Conference, I had an opportunity to interview Leslie Gaines-Ross, Chief Reputation Strategist at Weber Shandwick, about the real world risks and opportunities of reputation warfare in a digital age. Somewhere in the middle of the conversation people and purpose emerged as key pillars to help businesses rally teams and build communities around common interests. The importance of purpose resonated with me. I’d always pushed leaders to consider purpose as they pursued innovation, transformation and inspiration. It didn’t dawn on me until that moment however that its place amongst the other P’s was in fact overdue.

In a social economy, it’s practically absurd that this requires explanation. People should be or should have been at the center of everything. It’s been argued though that people are already at the core of each of the existing 4 P’s. But I disagree.

If we measure actions rather than intentions, it’s easy to overlook the importance of people in the mix. See, for the most part people are largely lumped into market segments, spoken to as audiences, and serviced as tickets. Honestly, we can do better. We must do better.

Understanding the needs and expectations of people inspires an important element often missing in day-to-day business strategy…empathy. It is empathy after all that unlocks ambition to do something that goes beyond the ordinary. It offers clarity to help see beyond routine roadmaps and reports. Empathy also channels aspiration to help teams strive to always do better. The result? Businesses will possess the means to develop more meaningful products and services as well as the procure confidence and resources to truly engage customers to build thriving communities.

Once you feel, really feel what people experience and what it is they need or do not know to need, innovation follows. And this is a time for innovation as people and how they connect, discover, communicate and share, is evolving. Technology continues to influence behavior and as behavior shifts, decision-making, preferences, expectations, and influence also progress. Understanding and appreciating people, and the individuals that make up our markets, teaches us how to in turn become more human…especially at a time when brands are becoming people and people are becoming brands.

At the end of the day, we are the very people we are trying to reach. You, me and the scores of people like us form the 5th P.

Purpose as the 6th P

When you work in the business of change, you eventually notice that regardless of the technology you adopt or the trends you pursue, one of the key things that’s often missing is a sense of direction or aspiration. I’m not referring to a common vision or mission statement though. Actions for the most part speak louder than words. Here, motive, objective, and resolve are paramount and they’re manifested in the leadership and its decrees to bring about real change.

I spend my time in the throes of digital transformation and as you can imagine, there’s a great deal of politics, emotion, and anxiety at work. In many cases, efforts to lead change are done so in the absence of bearing or alignment. Steps are taken simply because that’s what is supposed to happen not because a course was defined. As such, existing processes, philosophies and communications channels sometimes work against the quest to pursue the 5th and 6th P. In order to unite teams and decision makers around a common vision, that vision must be defined and it must resonate.

I’ve done my fair share of developing business transformation initiatives and seeing them through for longer than I care to count. Part of that work involves helping executives visualize and vocalize the future of customer engagement and experiences and translate this new direction as a matter of purpose. It’s imperative that this edict and the mission come from the top. For without it, change is stunted. It’s at this very point where I often see the difference between management and leadership rear its true colors. The reality is that not every executive is a leader. But like empathy, leadership is also a fundamental pillar in articulating a vision for transformation. Someone must rise to the occasion.

It’s not easy of course. It takes courage to see what others can’t and do what others cannot or won’t. You’re setting out to shock and reshape your company’s culture and to do so takes leadership, vision, and alignment to bring about sustainable change.

Start by asking and answering a few important questions:

1. What does are business stand for and what does it mean to a shifting consumer landscape now and five or ten years from now?

2. How does evolution in customer behavior and expectations affect our current business priorities and investments?

3. What are the challenges that hold back the organization from pursuing our existing and emerging goals?

4. What initiatives are underway within the organization that we can plug into, align, or reassign to pursue transformation?

5. What does the future of exemplary relationships with people (employees and customers) look like and what it is we want them to do, feel, share, and love about us?

I often think about a conversation that I had one night with good friend Tony Hsieh, CEO of Zappos. When I asked him about his inspiration for “delivering happiness” to customers, he turned and in a calm but assertive voice explained, “Companies that focused on customers and on a higher purpose outperformed those that focused on market leadership and profitability in the long run.”

I then asked him about the importance of vision and creating a supportive culture as he set out to deliver happiness. “Your culture is your brand. Customer service shouldn’t just be a department, it should be the entire company,” Hsieh revealed. He then shared the importance of unity in bringing about change and marching collectively in a new direction, “Customer service is about making customers happy, company culture is about making employees happy, so let’s just simplify it and at the same time, amplify our vision for our customers, employees, vendors, and peers.”

Whether or not you agree that People and Purpose officially earn a place among the traditional set of Ps is certainly open to discussion. But the impact of these two pillars in undeniable. By investing in People and Purpose, we will spark a revolution in not only business philosophy and supporting processes but more notably in the shift from a culture of management to leadership.

Via Brian Solis: http://www.briansolis.com

05 June
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Dear [insert business name], what’s your promise?

You say you want to get closer to customers, but your actions are different than your words.

You say you want to “surprise and delight” customers, but your product development teams are too busy building against a roadmap without consideration of the 5th P of marketing…people.

You’re employees are your number one asset, however the infrastructure of the organization has turned once optimistic and ambitious intrapreneurs into complacent cogs or worse, your greatest detractors.

You question the adoption of disruptive technology by your internal champions yet you’ve not tried to find the value for yourself.

You’re a change agent and you truly wish to bring about change, but you’ve not invested time or resources to answer “why” in your endeavors to become a connected or social business.

If we are to truly change, we must find purpose. We must uncover the essence of our business and the value it delivers to traditional and connected consumers. We must rethink the spirit of today’s embrace and clearly articulate how transformation is going to improve customer and employee experiences and relationships now and over time. Without doing so, any attempts at evolution will be thwarted by reality. In an era of Digital Darwinism, no business is too big to fail or too small to succeed.

These are undisciplined times which require alternative approaches to recognize and pursue new opportunities. But everything begins with acknowledging the 360 view of the world that you see today is actually a filtered view of managed and efficient convenience. Today, many organizations that were once inspired by innovation and engagement have fallen into a process of marketing, operationalizing, managing, and optimizing. That might have worked for the better part of the last century, but for the next 10 years and beyond, new vision, leadership and supporting business models will be written to move businesses from rigid frameworks to adaptive and agile entities.

I believe that today’s executives will undergo a great test; a test of character, vision, intention, and universal leadership. It starts with a simple, but essential question…what is your promise?

Notice, I didn’t ask about your brand promise. Nor did I ask for you to cite your mission and vision statements. This is much more than value propositions or manufactured marketing language designed to hook audiences and stakeholders. I asked for your promise to me as your consumer, stakeholder, and partner. This isn’t about B2B or B2C, but instead, people to people, person to person. It is this promise that will breathe new life into an organization that on the outside, could be misdiagnosed as catatonic by those who are disrupting your markets.

A promise, for example, is meant to inspire. It creates alignment. It serves as the foundation for your vision, mission, and all business strategies and it must come from the top to mean anything. For without it, we cannot genuinely voice what it is we stand for or stand behind. Think for a moment about the definition of community. It’s easy to confuse a workplace or a market where everyone simply shares common characteristics. However, a community in this day and age is much more than belonging to something, it’s about doing something together that makes belonging matter

The next few years will force a divide where companies are separated by intention as measured by actions and words. But, becoming a social business is not enough. Becoming more authentic and transparent doesn’t serve as a mantra for a renaissance. A promise is the ink that inscribes the spirit of the relationship between you and me. A promise serves as the words that influence change from within and change beyond the halls of our business. It is the foundation for a renewed embrace, one that must then find its way to every aspect of the organization. It’s the difference between a social business and an adaptive business. While an adaptive business can also be social, it is the culture of the organization that strives to not just use technology to extend current philosophies or processes into new domains, but instead give rise to a new culture where striving for relevance is among its goals. The tools and networks simply become enablers of a greater mission

You are reading this because you believe in something more than what you’re doing today. While you fight for change within your organization, remember to aim for a higher purpose. Organizations that strive for innovation, imagination, and relevance will outperform those that do not. Part of your job is to lead a missionary push that unites the groundswell with a top down cascade. Change will only happen because you and other internal champions see what others can’t and will do what other won’t. It takes resolve. It takes the ability to translate new opportunities into business value. And, it takes courage.

“This is a very noisy world, so we have to be very clear what we want them to know about us”
-Steve Jobs

Photo of matches courtesy of Shutterstock

Via Brian Solis: http://www.briansolis.com

08 May
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How Do You Create A Culture Of Innovation?

This is the second part in a series by Scott Anthony, author of The Little Black Book Of Innovation.

It sounds so seductive: a “culture of innovation.” The three words immediately conjure up images of innovation savants like 3M, Pixar, Apple, and Google—the sorts of places where innovation isn’t an unnatural act, but part of the very fabric of a company. It seems a panacea to many companies that struggle with innovation. But what exactly is a culture of innovation, and how does a company build it?

While culture is a complicated cocktail, four ingredients propel an organization forward: the right people, appropriate rewards and incentives, a common language, and leadership role-modeling.

If you ask most people what makes a great innovator, the most common response is innate gifts from parents or a higher power. Great innovators are undoubtedly different from the general population. However, pioneering research by Hal Gregersen at INSEAD, Jeffrey Dyer and BYU, and Clayton Christensen at Harvard shows that the critical difference is actually learned behaviors.

At the core is what the professors call “associational thinking.” That is the ability to make connections between seemingly unconnected things. A classic example of this is how a calligraphy class inspired Apple legend Steve Jobs’s emphasis on typography on early computers. The professors then detail what they call the “Innovator’s DNA,” four time-tested approaches successful innovators follow to gather stimuli that spur these connections:

  • Questioning: Asking probing questions that impose or remove constraints. Example: What if we were legally prohibited from selling to our current customer?
  • Networking: Interacting with people from different backgrounds who provide access to new ways of thinking.
  • Observing: Watching the world around them for surprising stimuli.
  • Experimenting: Consciously complicating their lives by trying new things or going to new places.

Aliens don’t quite fit in, and that’s exactly what you want.

Most organizations have people who follow these behaviors—even if they aren’t immediately obvious to senior leadership. Frequently they are what software entrepreneur Donna Auguste affectionately dubs “aliens.” They don’t quite fit the establishment, and that’s exactly what you want. But importantly these behaviors are skills that can be built through disciplined practice. Companies like Syngenta, Citigroup, Johnson & Johnson, and many more have made substantial investments in innovation training programs, which are critical ways to build an organization’s innovation competencies.

Sometimes the injection of a choice outsider helps shape a company’s culture. Ask for example why Hulu.com serves as almost the singular example of a successful disruptive venture launched by media incumbents (backers include News Corp, Disney and NBC Universal). At least one explanation is the hiring of a CEO from outside the media industry (CEO Jason Kilar previously worked at Amazon.com). If you are trying to transform your company or your industry you likely need to bring in at least a handful of outsiders who will look at the world in new ways.

One of the most common complaints of executives inside large companies is the challenge of recognizing and rewarding successful innovators. It seems like a Herculean task, as the best innovators can choose to work for startups and receive unbounded rewards. How can a large company—especially a publicly traded one—compete? The key is to thoughtfully blend the unique rewards at their disposal with a failure-tolerant culture.

An essential read on rewards in Daniel Pink’s Drive: The surprising science of what motivates us. In that book, Pink details how performance on creative tasks actually decreases with monetary incentives. And people who have chosen to work for larger, more established companies have already chosen to tradeoff financial upside for stability and the opportunity work with a larger group. Pay people fairly, of course, but Pink suggests that other incentives provide people with a sense of autonomy, allow them to master their trade, and give them a sense of purpose.

Every asset has a claim against it. Every strength has a corresponding weakness.

There are plenty of opportunities for companies to follow Pink’s playbook. What about creating unique career paths for innovators? Maybe someone who brings a great idea forward can stick with it as it winds through the organization. Or get a chance to work on an exciting new product launch. Public recognition matters, too. One media company holds an innovation awards ceremony that they treat as seriously as the Oscar’s—people get decked out and fete internal success stories. Winning is a big deal. It’s just one way for companies to shine a spotlight on success.

Of course, it is important to make sure you are rewarding the right people. How do you identify successful innovators? It seems like a simple question. But the realities of innovation make it complicated. Innovation is akin to baseball, blackjack, or investing stock. That is, success comes from a mix of skill and luck. Legg Mason Chief Innovation Strategist Michael Mauboussin argues that instead of looking at someone’s results, you have to look at the process they follow they achieve those results. Look for innovators that invest time to understand their target market, think holistically, design and execute smart experiments, and demonstrate a willingness to change course. Even if an individual effort doesn’t succeed, innovators who follow these behaviors are more likely to succeed in the long term.

Encouraging innovation isn’t just about what companies reward—it is what they choose to punish. In my book The Little Black Book of Innovation, I suggest that companies need to be more tolerant of failure. The most successful businesses come out of a process of trial-and-error experimentation. Failure and false steps are natural parts of that process. What kind of message does it send if you punish people who take well-thought-out risks that don’t pan out?

In a recent column at HBR.org, I detailed a heated debate between me and my colleague Piyush about one of the portfolio companies in which Innosight’s venture investing arm had invested. At one point I said Piyush’s argument was “utter baloney.” That drew a blank stare. I thought the brilliance of my argument had stunned him into silence. Then I thought perhaps it was because he is a vegetarian and didn’t appreciate the meat reference.

Understanding what innovation is, and is not, is critical for culture change.

Then it dawned on me. “Baloney” as a shorthand way of saying “that’s not correct” was vernacular that hadn’t made it to Singapore. It’s a lesson I’ve learned painfully over the past two years as I’ve had to slowly remove sports metaphors that just don’t translate globally from my speech. These seemingly trivial examples of how things can get lost in translation even when people appear to speak the same language serve as an important reminder of how subtle miscommunications can impair a company’s effort to move in a common direction.

Start with innovation itself. Next time you are in a group meeting, ask everyone to write down how they define innovation. Odds are you will have as many different definitions as meeting attendees. Having everyone understand what innovation is—and what it is not—is critical for culture change.

The next step is to identify the specific categories of innovation that matter to your company. For example, in 2011 financial services leader Citi decided its innovation portfolio would balance core innovations that involve improving existing offerings and processes, adjacencies that extend Citi products to new markets or leverage current capabilities to create new-to-Citi solutions, and disruptive innovations that create entirely new markets.

These definitions matter because different forms of innovation should be measured and managed in distinct ways. As an analogy, think about how you evaluate an investment in emerging market equities versus a real estate transaction versus buying a car. You approach each transaction very differently.

If you approach all innovations in the same way, odds are you are either sub-optimizing vital efforts to strengthen your core business or bungling efforts to create tomorrow’s core business.

Organizations take substantial cues from senior leaders. They carefully listen to what those leaders say, but, more importantly, watch what those leaders do. The most senior leaders seeking to make their culture more tolerant of innovation need to regularly demonstrate that intent with their words and actions.

One great example of this is the work A.G. Lafley did to change Procter & Gamble’s culture during his reign from 2000 to 2009. During various discussions related to the launch of his 2008 book The Game-Changer (with consultant Ram Charan) Lafley alternatively described his role within P&G as P&G’s co-chief innovation officer (with his chief technology officer), P&G’s chief “external” officer (“selling” the importance of innovation externally), Dr. No (helping to make prudent decisions to shut project downs), and an innovation cheerleader.

From work I did advising P&G during that time period, I know this wasn’t lip service. While serving as CEO, Lafley actively participated on the board of P&G’s internal innovation fund, and regularly conducted innovation and strategy reviews with each of P&G’s business units. He frequently proselytized about the importance of innovation and worked hard to select and nurture leaders that had the right stuff for innovation.

Studying leaders driving innovation in their organization, such as Mark Zuckerberg at Facebook, Indra Nooyi at PepsiCo, Jeff Bezos at Amazon.com, Ernset Cu at Globe Telecom, and Clark Gilbert at Deseret Digital, reveals similar patterns. These aren’t lean-back leaders that wait for change to happen. They roll up their sleeves and lean forward into specific innovation efforts. Active participation helps them spot inflection points that team members might otherwise miss—and gives them deeper intuition that helps when it is decision time. Active participation also speeds decision-making. Many companies review critical innovation initiatives at quarterly or biannual meetings. But key strategic decisions can’t always be scheduled. Finding ways to interact with teams more frequently can help to expedite the iterative process that so often typifies innovation.

Sometimes only senior leaders can remove the roadblocks that constrain success.

Leaders also help shape the context in which innovation occurs by making clear strategic choices. Specifically, they identify areas that are of strategic interest to the company, and areas that are not of strategic interest to the company. Many organizations waste tremendous time and money exploring ideas that, when push comes to shove, are destined to get shut down by senior leadership. Making explicit choices is a critical part of leadership.

Finally, lean-forward leaders break dysfunctional processes. A couple of years ago, a team was reviewing its progress with a key senior stakeholder. The team mentioned that their progress would be accelerated as soon as the company’s usual assignment process provided them with a critical scientific resource. No one was doing anything but following standard procedures, but the team was paralyzed. The senior stakeholder left the room, made two phone calls, and got the team the resource it needed. Sometimes only senior leaders can remove the roadblocks that constrain success.

Every company’s culture is different—that’s what makes them so interesting, and what makes paint-by-numbers recommendations painfully insufficient. Start by building what I call an “innovation balance sheet” detailing your innovation strengths and weaknesses. When building this balance sheet, remember the dual-aspect concept that has served as the cornerstone of accounting since its development in 16th-century Italy. Every debit has a corresponding credit. Every asset has a claim against it. Every strength has a corresponding weakness.

An honest understanding of organizational capabilities and disabilities helps to determine the right mix of people, rewards, common language, and lean-forward leaders that can help make innovation an everyday occurrence at your organization.

Images: svkv, woaiss, Junial Enterprises, and maridav via Shutterstock

Via FastCoDesign: http://www.fastcodesign.com/

03 May
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Future Scratches

Graffiti or Art

Are you a collector? If so, of what? I’m not, but I know the culture. I grew up reading comic books and buying music and haunting bookstores. in all cases, there’s always a sub-tribe of collectors, the kind who scour bins, sometimes seeking the rare and expensive, but other times, seeking the rare and cast off. These are the bin-pickers, the type who must stop at yard sales.

I had all these thoughts, random thoughts, and they could all be blog posts, or they could be nothing. Some of them take time to absorb. Not all of these apply to you. Pick through these as a kind of bin full of tapes and bits you could use to mix into your own stories and songs.

Future Scratches: The Discount Bin

You, the talent, must find the business that supports your storytelling. The studio no longer knows. Replace “studio” with “publisher,” if you’re an author.

No platform? No problem. It’s just harder that way. Start somewhere. Get known for something. Nurture that community and grow it slowly.

If you’re not serious about content creation as a tool of your business-making, you’re not serious about using the web as a business tool.

It doesn’t matter if you’re not serious. The web can just be fun. Relax, if that’s what you want.

Strange Bedfellows

You can be the creator, the distributor, the servicer, or maybe the commentator. You can even be all. But knowing which brings you business is the whole value game.

Start. Start. Start somewhere. Worrying or thinking or doubting are all soap without a bubble wand.

On my phone, I can create music, read a magazine, have conversations, write stories, sell things, accept payment, and more. If you’re not configuring your business to face the mobile everything-maker, then you’re skipping the most obvious big sector of potential digital growth for your company.

Picking any one thing and working on that is better than thinking about working on something.

Lonely without a plate

If you’re not making it easy to buy, people will oblige you and not buy.

Stop waiting for your big chance. Those come when you make them happen. They come when you dare to say what you really think.

You can read about sex all day. It’s still not as fun as having it. Same thing with most business experience.

I love olives

The world is tapas. If you’re waiting for the perfect amount of time, you’re going to miss the big meal.

London Closes as 6pm

If you fancy yourself a business owner, start thinking like a business. And by that, I mean, “how do I grow relationships with my best potential partners?”

The most successful people I know lead with, “Tell me more about you! I’m dying to know.” They rarely talk about themselves. That’s why they’re successful.

You are very wonderful and worth it. Here’s a cookie. Now, do the hard work that it takes to eat off the bigger plate.

We are filming you. Everywhere.

If you think your product or service or YOU are boring, it is (you are). That’s your vote first, and you’ll help influence us.

None of this matters. What matters is you taking action.

Lastly

If you’ve had even one or two little twinges of “a-ha,” then I’ve done my job. Thanks for picking through the bin.

Lastly, I want to ask you to sign up to my free newsletter that comes out weekly. I promise to challenge you even more in there. We get up to some really interesting things there weekly, and it’s a very personal back and forth experience. If you’re seeing the word “newsletter” and thinking “information about social media” or “news about chris,” then you’re missing the greatest trick the devil ever pulled.

And thank you.

Chris Brogan is an eleven year veteran of social media using both web and mobile technologies to build digital relationships for businesses, organizations, and individuals.

02 May
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Why India Is "Geek Nation"

India is already known as one of the world’s IT powerhouses. Angela Saini, author of the new book, Geek Nation: How Indian Science is Taking Over the World, believes the country is also becoming one of the world’s hubs for innovation and scientific ingenuity.

Over the past few years, BRIC (Brazil-Russia-India-China) has become a buzzy acronym for technology- and finance-watchers. India is already known for call centers, IT development, and expatriate coders. The country is also home to one of the world’s fastest-growing middle classes. Angela Saini, the British author of the new Geek Nation: How Indian Science is Taking Over The World, believes that India is also becoming an innovation center to be reckoned with, and a world leader in tech.

Fast Company recently spoke with Saini about India’s tech industry, the growth of Indian startups, and what the future holds for Indian innovators. Geek Nation is being released in the U.S. on May 1.

FAST COMPANY: Why do you consider India to be a “Geek Nation”?

ANGELA SAINI: I grew up in London, and it’s difficult to grow up in this city and not notice that every school has at least one geeky Indian kid. I was the geeky Indian kid in my class. My dad is a geek, many of my cousins are geeks, and more generally, India is famous for producing doctors, university professors, and engineers who work all over the world. India itself is not a world leader in science and technology yet but it does have a culture that strongly favors these things, above anything else. So Geek Nation was my journey to figure out why, and also where that ambition is taking it.

I have to admit, as a science journalist, I started out with a big measure of skepticism–I mean, India has a weak scientific publication record compared to the U.S. and Europe–but the trajectory it’s on is just incredible. I think the rest of the world underestimates just what hundreds of thousands of committed young scientists and engineers can achieve. Then again, President Obama gets it. If you look at his speeches on science and education, he often mentions the growth of India as one reason that the U.S. needs to stay competitive.

The subtitle of my book is a bit bombastic, but the contents are more balanced. I look at scientific research and technologies that are having a big effect on ordinary people’s lives–the good as well as the bad–and the ambitious projects that the government hopes will help secure India’s future superpower status. At the end of the day, I’m just a journalist. I’m not trying to argue a point, but rather to take an honest picture of a country through my geeky lens.

What was the most surprising thing you uncovered while researching your book?

There wasn’t a day in my research that I wasn’t surprised by something. I traveled the length of India, north to south, and met such fascinating characters. What impressed me most is that so many Indian researchers have such a social aspect to their work. They want to help India’s poor and vulnerable, as well as to do good science.

One interviewee, Sujatha Narayanan, was a tuberculosis researcher I met in Chennai. A few years ago, when she didn’t have enough healthy volunteers for her work, she started running tests on herself. One day she found some TB bacteria in a tube that had been in her throat, which meant she may have accidentally infected herself. She had to undertake a grueling drug treatment for months, which she believes triggered her diabetes. She put her life on the line for her work, but it has not diminished her passion or her commitment to science.

What role are ethnic Indian immigrants/returnees from the West playing in India’s tech industry? Are they a major factor?

The success of India’s tech industry has encouraged a lot of young engineers and scientists who left the country, in the big brain drain, to return. And they’re playing a big part in shaping the future of the industry. Not only are they bringing their expertise and experience, but they are also bringing the culture of places like Silicon Valley. In Bangalore these days there are meetups and cool conferences for young techies and designers, just like you get in San Francisco. There’s this buzz about the big cities, which is making them an exciting environment to be in. But it’s not just in IT–I met scientists in all kinds of fields who had chosen to come back to India because they felt the opportunities were improving and that they could make a difference to the country.

Can you explain why you compared India’s current situation to Japan in the early 1970s?

When you read academic studies about the attitudes that people had toward Japan’s technology industry in its early days, it’s very similar to what people have been saying about India recently–that scientists and engineers are hardworking and educated, but not particularly creative or original. In Japan’s case of course that all changed, giving rise to a truly powerful scientific nation. I think similar stirrings are happening in India now. There are shoots of creativity all over the country, particularly in areas like biotechnology, life sciences, and computing. I don’t want to forecast what might happen, because I don’t think anyone can know for sure, but India does at least have the ambition and willpower to want to be the next scientific superpower.

You wrote about jugaad–the power of improvising to solve problems–in a recent article. How do you think that has influenced India’s tech industry?

I didn’t write about jugaad in my book. But yeah, I wrote an article about it recently, because it is such a fascinating phenomenon. Jugaad is a very broad-brush word, meaning something like getting things done by hook or by crook. So for example, in rural areas, people will throw together tractor engines and bits of wood to make trucks, and in the urban slums, people will recycle old newspapers and rework appliances to make new ones. It’s really driven by poverty, but it has inspired some Indian companies to look at frugal, mass innovation for India’s domestic market–for example, the TATA Nano car. But I don’t think it’s had a big impact on India’s mainstream technology industry, which is focused on creating high-quality products and services that can sell overseas.

What do you see as the strong points and weak points of India’s tech industry?

India’s tech industry is great at business innovation. India’s outsourcing model for IT work has been incredibly successful and, on the back of this, it’s managed to build a profitable industry that is globally competitive. But it’s less good at genuine technological innovation. India simply hasn’t yet produced a company of the caliber of IBM or Microsoft. But that isn’t to say it will never do it. It certainly wants to, but I have a feeling it may come from the younger generation, which is more free in its thinking and creative.

This interview has been condensed and edited for length and readability.

Geek Nation was released this past March in the United Kingdom and is currently awaiting U.S. release.

Image: Angela Saini

Via Mashable: http://www.mashable.com

05 April
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Driving Inside the Soviets’ Secret Submarine Lair

01-soviet-sub-lair

In 1953, Joseph Stalin signed the plans for a top-secret nuclear submarine base that would become the operational home for the fearsome Soviet Black Sea Fleet.

Hidden inside the base of a mountain in the port town of Balaklava on Ukraine’s Crimean coast, the 15,300 square-foot facility took nine years to build and its entrance camouflaged from spy planes. It could survive a direct nuclear hit and at maximum capacity could hold 3,000 people with supplies to sustain them for a month. Best of all, the vast subs that slunk in and out of here between tours of duty could enter and leave underwater, keeping them from prying eyes at all times.

Once the most sensitive and secretive of Soviet Cold War hotspots, today it is preserved as a museum. I manage to get special permission to drive into the base during the 8,000-mile Land Rover Journey of Discovery expedition to Beijing. We were the first to do so since the Soviet trucks and trailers that ferried in missiles, supplies and essentials over its 40 years of operation.

Driving through the cavernous entrance carved into the heavy rock of the mountain was pure James Bond, but the base that unfolded inside was a hard-hitting mix of superspy fantasy and the coarse reality of the Cold War world in which it played a key part.

The local guide explained how the facility was split into two clear sections on either side of the huge submarine channel that ran through the center, one side used for the operational running of the base and the other for arming the nuclear warheads. Then she dropped a bombshell of her own.

She had worked on the operational side of the base for five years with level-two security clearance — just one step below the highest possible — yet in all her time at the facility she had never known the nuclear side existed. She was only made aware of it when she began guiding tours here years later.

As she puts it: “It was in our culture then not to ask about what didn’t concern us. A common saying at the time was, ‘The less you know, the better you sleep.’”

Not only was this place so secretive that even its own employees were kept in the dark, every possible measure was taken to keep its existence unknown to the outside world. This included removing Balaklava from all maps in 1957 (it would be 1992 before it reared its head again) and employees’ family members from neighboring Sevastopol — itself a closed city that needed heavy security clearance to access — were put through extensive vetting before visits to loved ones were allowed.

Inside the base we first toured the operational side, working our way through the broad network of tunnels until we came to the dry dock, so large that it was capable of holding a 300-foot submarine.

Beside the dry dock was the huge submarine channel, with space for six such subs end to end. Curved to deflect any blast inside the base, the channel is lined with steel gangways above head height. It provides a fearsome environment, with a hulking sub sitting in the black water and the loud echoes of urgent footfalls, the clanking of tools, and the humming of generators.

Crossing to the other side of the base became even more interesting. Here even the tunnels making up the connecting network were curved for blast protection, as this was where the missiles were armed.

We saw the cabinet where the radioactive parts of the weapons were stored. Now empty, its massive steel roller door sits ajar just as it was left when the lethal payload it once concealed was taken by Soviet authorities.

Even the tunnels making up the connecting network were curved for blast protection.

Finally, we came to the epicenter of this underground lair, the room that stored the armed missiles. It looks innocuous now, but to imagine this place primed with as many as 50 nuclear devices left a sobering scent in the air.

As a final unusual touch, our guide pointed out a simple-looking plastic mount, similar to a small patio light, attached to the wall of the room and holding a solitary human hair. This most basic of devices monitored the humidity in the room, which had to be critically maintained at 60 percent — deviation either way could have resulted in an explosion large enough to destroy the entire base, not to mention the mountain that housed it and much of the surrounding area. If the hair began bending, that was the engineers’ cue to adjust the ventilation, and quickly.

Rolling back out into the sunlight of Balaklava’s bay was almost as odd as driving in had been, but for quite different reasons.

Now instead of Cold War killers, the bay is home to a glittering array of yachts from all over the world and at the water’s edge instead of subs skulking in and out, throngs of locals indulged in a spot of fishing while shooting the breeze over a couple of beers.

If that isn’t a sign of progress, we don’t know what is.

Photos: Jeremy Hart

Via Wired Autopia: http://www.wired.com/autopia/

21 March
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Facebook Files S-1 for $5 Billion IPO (revealing stats & revenue)

Facebook’s S-1: 845 Million Users Every Month, More Than Half Daily and Nearly Half Mobile | TechCrunch

Updating as this plays out with deeper analysis and links…

Just a few moments ago, Facebook officially filed an S-1  for an initial public offering seeking to raise $5 billion. Here are a few key findings…

- 845 million monthly active users, year over year growth of 39%

- 483 million daily active users as of December, year over year growth of 48%

- 425 million monthly mobile users

- 100 billion friend connections as of December 31, 2011

- 2.7 billion Likes and comments per day during the last quarter of 2011

- $1 billion in profits in 2011

- $3.7 billion in revenues in 2011, soaring 88% between 2010 – 2011

- Profits grew 65% from $606 million in 2010

- Zynga makes up 12% of overall Facebook revenue

- Google posted $961.8 million in revenue and $105.6 million in profit when it initially went public…Facebook’s profits are nearly 10x heading into its IPO

- Facebook 2011 profits were 1.6x that of Amazon, which posted a 45% drop in net income between 2010 and 2011 at $631 million

For press seeking analyst commentary, please contact Altimeter Group at 650-212-2282 or via email.

UPDATE 1: The Hacker Way

Really appreciate the culture of Facebook as mentioned in the S-1 under the heading “The Hacker Way.” Here’s an excerpt:

The Hacker Way

As part of building a strong company, we work hard at making Facebook the best place for great people to have a big impact on the world and learn from other great people. We have cultivated a unique culture and management approach that we call the Hacker Way.

The word “hacker” has an unfairly negative connotation from being portrayed in the media as people who break into computers. In reality, hacking just means building something quickly or testing the boundaries of what can be done. Like most things, it can be used for good or bad, but the vast majority of hackers I’ve met tend to be idealistic people who want to have a positive impact on the world.

The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete. They just have to go fix it — often in the face of people who say it’s impossible or are content with the status quo.

Hackers try to build the best services over the long term by quickly releasing and learning from smaller iterations rather than trying to get everything right all at once. To support this, we have built a testing framework that at any given time can try out thousands of versions of Facebook. We have the words “Done is better than perfect” painted on our walls to remind ourselves to always keep shipping.

Hacking is also an inherently hands-on and active discipline. Instead of debating for days whether a new idea is possible or what the best way to build something is, hackers would rather just prototype something and see what works. There’s a hacker mantra that you’ll hear a lot around Facebook offices: “Code wins arguments.”

Hacker culture is also extremely open and meritocratic. Hackers believe that the best idea and implementation should always win — not the person who is best at lobbying for an idea or the person who manages the most people.

UPDATE 2: Risks

As a matter of disclosure, Facebook must release risks to caution investors against buying blindly. Here is the full list as pulled from the S-1. I share it here with you to learn from Facebook’s diligence in constant innovation or as they say “shipping.” It’s a healthy form of inspiration to always compete for the moment and for relevance over time.

1. users increasingly engage with competing products;

2. we fail to introduce new and improved products or if we introduce new products or services that are not favorably received;

3. we are unable to successfully balance our efforts to provide a compelling user experience with the decisions we make with respect to the frequency, prominence, and size of ads and other commercial content that we display;

4. we are unable to continue to develop products for mobile devices that users find engaging, that work with a variety of mobile operating systems and networks, and that achieve a high level of market acceptance;

5. there are changes in user sentiment about the quality or usefulness of our products or concerns related to privacy and sharing, safety, security, or other factors;

6. we are unable to manage and prioritize information to ensure users are presented with content that is interesting, useful, and relevant to them;

7. there are adverse changes in our products that are mandated by legislation, regulatory authorities, or litigation, including settlements or consent decrees;

8. technical or other problems prevent us from delivering our products in a rapid and reliable manner or otherwise affect the user experience;

9. we adopt policies or procedures related to areas such as sharing or user data that are perceived negatively by our users or the general public;

10. we fail to provide adequate customer service to users, developers, or advertisers;

11. we, our Platform developers, or other companies in our industry are the subject of adverse media reports or other negative publicity; or

12. our current or future products, such as the Facebook Platform, reduce user activity on Facebook by making it easier for our users to interact and share on third-party websites.

UPDATE 3: Facebook’s Friends or Who Owns Facebook

Ken Yeung over at bub.blicio.us found this interesting graphic complied by Learnvest based on data published by The WSJ and The Guardian. It’s a visual look at the distribution of Facebook stock. Some interesting pre-trading numbers reveal just how big this IPO is worth to the market, employees, investors, and partners.

UPDATE 4: A Letter from Mark Zuckerberg

Mark Zuckerberg urges understanding before investment. This is an approach that conditions investors for a long-term play rather than a quick and profitable turn. As important, is the focus on culture and values. Facebook invests emotion and aspiration in its mission and purpose, something I think more companies should consider to effectively connect with the human network (you and me).

Here are some highlights…

Facebook was not originally created to be a company. It was built to accomplish a social mission — to make the world more open and connected.

Zuckerberg believes that personal relationships are the fundamental unit of our society

Facebook’s 5 core principles are 1) Focus on impact, 2) Move Fast, 3) Be Bold, 4) Be Open, and 5) Build Social Value.

The Facebook team is inspired by technologies that have revolutionized how people spread and consume information.

Facebook hopes to strengthen how people relate to each other.

Even though Facebook’s mission sounds big, the company is focusing on starting small — with the relationship between two people.

Facebook is building tools to help people connect with the people they want and share what they want, and by doing this we are extending people’s capacity to build and maintain relationships.

Facebook has already helped more than 800 million people map out more than 100 billion connections with a goal of accelerating this “rewiring.”

Facebook seeks to improve how people connect to businesses and the economy.

The company believes a more open and connected world will help create a stronger economy with more authentic businesses that build better products and services.

Facebook observes that as people share more, they have access to more opinions from the people they trust about the products and services they use. As a result, the global social network strives to makes it easier to discover the best products and improve the quality and efficiency of their lives.

This quote by Zuckerberg really captures the spirit of Facebook’s mission, “Today, our society has reached another tipping point. We live at a moment when the majority of people in the world have access to the internet or mobile phones — the raw tools necessary to start sharing what they’re thinking, feeling and doing with whomever they want. Facebook aspires to build the services that give people the power to share and help them once again transform many of our core institutions and industries.”

More data available at SEC.gov.

Via Brian Solis: http://www.briansolis.com

09 March
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Don’t Let Culture Vultures Scuttle Your Strategy

Debate and difference of opinion, lightly salted with an appropriate amount of passion and tenacity, can help lead to significant breakthroughs. In the world of corporate correctness we are all living in, this should be highly encouraged. I really appreciated Bob Frisch’s response to my recent article on the importance of culture. Though I think he missed the point, the overwhelming number of people who embraced the notion that culture is imperative for sustained success is an indication of the importance of this issue and the opportunity culture offers for positive change.

People matter. More than machinery, products, and real estate. People invent and build. People support and serve customers. Your people either create or undermine value, cultivate or kill relationships, drive or reduce success. A well-conceived strategy living in the hands of unhappy, misdirected, misinformed people is a sure way to a slow and painful death. There is no comparison to being in the hearts and hands of energized, informed, and motivated people.

Companies are not linear, inert systems. They are ever-changing, organic communities that are dependent on the engagement, talent, and energy of their people to operate successfully. Ignore the mental well-being of your people and culture at your own peril. Step inside of any company, no matter the size, stage of development, or level of success, and the culture is either driving the strategy or undermining it. To exist in the first place, a company must have a clear purpose, a deliberate intent, and a directive or set of ideas that it uses to pursue a clear goal, but it’s the people who have to execute it.

There is abundant evidence in every industry that the best-laid plans (or strategies) are derailed, suffocated, or eaten by cultures that either don’t understand or straight-out reject the intent. And this, in turn, slows, sucks the life out of, or sabotages the implementation or execution of the company’s strategy.

For the sake of debate, let’s assume there are two kinds of companies in the world: those driven by strategy, where culture is not a priority, and those guided by a clear strategy, where culture is highly valued and universally understood. To help clarify what’s important, let’s look at the relationship between culture and strategy.

Every company needs a clear strategy…really?

You don’t need to be told that a company must have a clear reason for being and a plan of action. But, you might be surprised by how many companies lack strategic clarity, and whose only purpose is to make a profit. To be clear, making money is absolutely imperative, but it is just one of the outcomes of a successful company.

Competitive differentiation and optimal financial performance do not come from strategy alone. To ignore the potential of a fully engaged and mobilized culture that understands, embraces, encourages, executes, and enhances strategy is negligent and a missed opportunity. It is imperative that today’s leaders not only understand and focus on the interdependence of strategy and culture, but also step back and examine their own role–it is one of the most important areas of their personal responsibility. The mental and physical health of the company in their care must be paramount for sustainable success.

Corporate culture is a hot topic among businesses who want to attract the best talent, translate their values to their products and services, and show customers what they’re all about. And it doesn’t cost a thing:

Strategy is rational and culture is emotional. 

Strategy, at its core, is rational, logical, clear and simple. It should be easy to comprehend and to talk about. Without a clear strategy, a company is lost. Culture, on the other hand, means different things to different people. It is emotional, ever-changing, and complex. Culture is human, vulnerable, and as moody as the people who define it. It can be intimidating and frustrating, often leaving leaders dodging it, neglecting it, or discounting it. Because so many large companies are run by people whose expertise is heavily skewed to the rational, financial, and legal side of the equation, culture is often subordinated, misunderstood, or underappreciated.

Every company has a culture, but not every culture is healthy. 

Culture is the environment in which the intent of your company is nurtured, fueled, restricted, or suffocated. Every company has a culture and its health should be monitored and cared for. Cultures reach their full potential when the people in the trenches doing the day-to-day hard work understand the game and are fully informed and engaged. Healthy and vibrant cultures are directed, purposeful, vibrant, optimistic, and highly-successful because they are fueled by the company’s larger purpose and supported by the capability to follow through. A company with a healthy culture is able to operate at its fullest potential while one with an unhealthy culture operates far from its best.

Visionary leaders are required for successful culture. 

Like a great coach, a leader’s job is to clearly set the intent for the journey, model the correct behaviors, lead with an understood set of values, communicate clearly and with sincerity, and set clear expectations and guardrails for the culture to thrive within. It’s the team’s job to bring their best game every day and to execute the game plan to the very best of their ability. Like any great sports team, a culture is built by motivation, communication, training, encouragement, and celebrating both small and significant successes.

Culture is the field on which the strategy plays. A vibrant and functional culture is like a blanket that embraces, protects, and nurtures the strategy. A company without a strategy lacks direction. A strategy without a culture that understands or embraces it is like a sports team without spirit.

Understanding the relationship between culture and strategy. 

1. Strategy drives focus and direction while culture is the emotional, organic habitat in which a company’s strategy lives or dies.

2. Strategy is just the headline on the company’s story–culture needs a clearly understood common language to embrace and tell the story that includes mission, vision, values, and clear expectations.

3. Strategy is about intent and ingenuity and culture determines and measures desire, engagement, and execution.

4. Strategy lays down the rules for playing the game, and culture fuels the spirit for how the game will be played.

5. Strategy is imperative for differentiation but a vibrant culture delivers the strategic advantage.

6. Culture is built or eroded every day. How you climb the hill and whether it’s painful, fun, positive, or negative defines the journey.

7. When culture embraces strategy, execution is scalable, repeatable, and sustainable.

8. Culture is a clear competitive advantage.

9. Culture must be monitored to understand the health and engagement of your organization.

10. Strategy and culture both require the clarity and power of brand to bring them seamlessly together.

Image: Flickr user certifiable.nl

Via Fast Company: http://www.fastcompany.com

28 February
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Fast Talk: How This "Sneakerhead" Built A Major Online Magazine

Kevin Ma is the founder and editor of Hypebeast, an online magazine covering fashion, culture, design, and many other topics. Ma runs the site with his staff out of their Hong Kong office, and his stamp of approval (read: a feature on Hypebeast) can help make or break an underground or indie brand trying to catch the attention of influencers or even savvy mainstream consumers. Fast Company spoke with Ma to learn the proper usage of the words “sneakerhead,” “deadstock,” and “hypebeast.”

What is Hypebeast?

It’s a site I created in 2005. It just started off as a blog. There was a big sneaker culture going on worldwide. A lot of people were collecting sneakers, limited edition sneakers. People were actually lining up, and in New York at a store called Staple there were riots by kids who wanted to buy sneakers. I was a sneakerhead myself, lining up to pick out the latest limited edition shoe. I started the site talking just about sneakers. Eventually I started talking about different subjects, all connected to the sneaker world, like hip-hop, streetwear, fashion, skateboarding. Now we’re discussing more aspects of culture, including arts, high fashion, and design.

And what is a “hypebeast”?

“Hypebeast” is a term commonly used amongst our culture. People call someone a hypebeast if he’s interested in certain topics in this culture: sneakers, fashion, arts, music.

This is a term used in Hong Kong?

No one uses it in Hong Kong. It’s a U.S. thing.

I guess I don’t get out enough.

If you go to areas like SoHo….

I live in New York, and you live in Hong Kong, but you know New York slang better than I do.

It’s just a very niche culture…

Teach me how to use the word “hypebeast.”

In the very beginning, kids on these message boards would say, “You’re such a hypebeast,” and it meant you would buy into the hype without thinking what the product was about. It was kind of a negative term in the beginning. I thought it was funny, and thought, why not use this term as a website? I used it ironically. Eventually this term evolved into a different thing. Nowadays it’s just more like if you’re into the fashion/arts/culture scene you might be called a hypebeast.

What kind of traffic does Hypebeast get?

It depends on the month. Last year in August, we got 3 million uniques. It fluctuates, goes up and down–2.5 million, 2.8 million–but we are seeing steady growth month to month. Our readers are mostly based in the U.S., around 50-60%.

How big is your staff?

We recently grew to around 20 full-time people. We really tried to expand the company last year. We had an office three years ago, but it was just fooling around. We had ping-pong tables and we were just playing around. When the lease was over we decided, we’re just playing ping-pong all day, maybe we should just work from home. We did that for a year, but then last year we started to get serious and rented a decent office. No more ping-pong tables.

And I assume you’re profitable?

Yeah, definitely. From day one. We never lost money.

So what’s ahead for you guys?

We’re always growing. We’re doing more original content, getting better pictures, and we’re trying to give a better look to the site. We’re getting into a lot of different editorial aspects. We started a column called Hypebeast Trade, where we talk about the business of the fashion industry. We interview CEOs and ask how they started out, difficulties in starting up, that whole process.

So basically you’re becoming a Fast Company competitor.

No, of course not!

It occurs to me, you must have a lot of sneakers.

I have a lot of sneakers.

How many?

I don’t count anymore. I stopped counting at 50, which was years ago. Now just in the office, they’re laying around–I’m sure it’s a hundred-something.

Do you even try them all on?

No, not anymore, to be honest. We collectors try to keep it “deadstock,” or in pristine condition. That’s a term from the sneaker world. Often people buy two pairs of the same sneaker, one to wear, one just to keep around.

What’s your favorite pair you own?

The first ones I got in high school: Jordan 11’s. This was back in Grade 11, 10 or 15 years ago.

Are they “deadstock”?

No, I wore them. They’re the first pair of shoes I bought myself. I think I paid $150 Canadian, pretty expensive for a kid back then.

If they’re not deadstock, they can’t be worth much…

They’re not worth anything these days, to be honest. But I enjoyed them. Those shoes got me started on this whole website thing.

This interview has been condensed and edited. For more from the Fast Talk interview series, click here. Know someone who’d make a good Fast Talk subject? Mention it to David Zax.

Follow Fast Company on Twitter.

Via Fast Company: http://www.fastcompany.com

16 February
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Looking To Hire And Keep Great Innovators? Focus On The 3 Rs

The following is an excerpt from Relentless Innovation: What Works, What Doesn’t–and What That Means for Your Business by Jeffrey Phillips.

Innovation relies on people more than other processes. This reliance on employees, management, and executives in an organization requires that the “right” people are attracted, and then given the appropriate tools and techniques for a sustained innovation success. Their passions and capabilities also must be ensured to align with the needs and expectations of the firm. Let’s take a closer look at the three Rs.

Recruiting

The first way to transform a BAU culture to a more innovative one is to change the kind of people you hire. As a firm grows and matures and the “operating model” becomes widely accepted, executives and managers tend to hire people who have the same kinds of perspectives and experiences as those that exist within the firm. In that way training needs are reduced and the learning curve is shortened; however, the risk of “groupthink” increases dramatically.

Innovators understand that introducing people with deep skills but with different or complementary perspectives adds value to the existing “operating model” but it also adds new emphasis to innovation skills. These recruits may ruffle a few feathers, but they will introduce a significant number of new ideas and perspectives. Recruiting even a few “creatives” or right-brained thinkers into a rigid left-brain company can add just enough dissonance and creative tension to start shifting the thinking of the company as a whole.

This shift in thinking will occur as the creatives begin to question the status quo and the perspectives of middle managers and executives. Introducing people with different experiences and different perspectives will create dissonance and force the existing management structure to reconsider its objectives and perspectives, while introducing new concepts and ideas that haven’t been considered within the firm previously.

Recruiting new people with different cultural backgrounds and skills is relatively easy. Finding appropriate homes where their skills will be accepted and rewarded in a more conservative corporate culture, however, may be more difficult. A culture that prides itself on rational thought and quantitative thinking will be tempted to squelch creative, right-brained thinking. Therefore, the recruiting activity must also be tied to finding appropriate roles and opportunities for the creatives within the organization to give them a chance to impact the culture. Even if a few new innovative or creative employees are hired, the vast majority of the firm remains. This remaining group will need to gain new skills, perspectives, and a focus on innovation. That’s where the second “R”–retraining–comes into play.

Retraining

A program of training or “retraining” is valuable for tenured employees. This training is focused on fostering creativity and innovative thinking, and it will require a shift from much of the focus over the last decade, when efficiency and effectiveness have been the norm. That’s why we use the “tongue in cheek” title of retraining. While many managers have received a significant amount of training on tools designed to cut costs and optimize processes, they’ve received little or no training on innovation. Innovation tools and techniques will, in many cases, conflict with the optimization and efficiency training they’ve received in the past.

Introducing a number of creativity and innovation tools and techniques, alone, however, won’t generate more innovation. New training and new perspectives are required to make people aware of their expectations, perspectives, and “anchors” that limit them from thinking creatively and innovatively. By “anchors” I mean the firm expectations, rules, and accepted wisdom that govern most of a middle manager’s thinking and that limit the perspectives and ideas they are willing to consider. Until these perspectives and anchors are changed, or at least until we’ve made people aware of the barriers they impose on their own thinking, innovation and creativity remain difficult to accomplish. Talent management and human resources control much of the training budget in many companies and they are often responsible for defining appropriate training materials and curricula. Thus, training the existing executives, managers, and staff on the importance of innovation and on new tools and techniques for innovation can begin to shift the culture as well.

Innovation training can be delivered as a series of ongoing courses, or, perhaps more helpfully, in “just in time” offerings tailored to the needs of the innovation team. The training can embrace different aspects of innovation, from creative thinking techniques to deep investigations of specific innovation tools or methods. The range of options is vast. Hundreds of different packaged training programs exist on creativity, innovation processes, and tools and programs. What’s important in this step is to decide the strategic goals and core competencies of the firm, and then select the innovation training programs that will help achieve your goals.

Rewarding

The final impact talent management and human resources can have on innovation is in reward structures. There are several factors to consider in reward and compensation programs. First, consider the “regular” compensation programs that focus on the standard compensation schemes. Too often compensation is tied to expectations of efficiency and effectiveness, so not only compensation, but evaluations must be modified as well. Other kinds of rewards and recognition must be considered as well. Research shows that many innovators find intangible rewards for innovation equally as compelling as financial rewards, so structuring a broad rewards program for innovation is vital.

Intangible reward systems can include a wide range of actions, including:

• Simple recognition systems, such as identifying an “Innovator of the Year”
• Allowing people to work on ideas that align with their passions
• Offering new roles or titles aligned to innovation
• Offering new training opportunities to people who excel at innovation

Much enthusiasm can be generated for innovation with little financial investment if rewards other than standard compensation are carefully developed.

Images: Olga Drozdova, Nigel Lee, Fedorov Oleksiy via Shutterstock

Via Fast Co Design: http://www.fastcodesign.com

Valve Interactive
An online marketing and design agency in Portland Oregon