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December 25, 2006

Become the thing that replaces you

Treevforest

I asked Little Miss MySpace what happens when something new comes along... when someone else makes a MySpace-Killer. Skyler said, "Why does it have to be someone else? MySpace can just become that (whatever 'that' is)." She knows nothing of the business or politics of MySpace--she's simply a passionate user. And she's never read The Innovator's Dilemma. But she still has a point: why shouldn't we be the ones to build our own "killer"?

Whether we're trying to innovate around our existing products and services or trying to find a completely new idea, we have to back up to the meta-level rather than focus on implementation. Obviously implementation matters... a lot. But implementation of what? Why build a better XYZ if all that matters to users is the Z? What if XYZ is just one way to give users what they really want--JKL--and there's actually a much better way to help them do JKL? A way that makes XYZ unnecessary?

If we're not careful, we can take our existing success and misattribute it to an implementation detail that was never important.

Or worse... we can misattribute our success to something that's actually a problem but that users managed to cope with. Right up to the time we upgraded that thing-they-never-liked to give it a bigger role.

Yes, this is just another one more of those DUH topics, but as with so many others--it's too easy to get sidetracked by either our own success or the success of someone else's product or service that we're trying to build a better version of. And that's one reason why trying to reverse-engineer the success of a product is tricky. We get stuck rationalizing why some implementation detail is important, when it may be nothing more than noise.

An example of outstanding implementation that ignored the meta-level

The now-dead Purple Moon software company was the result of millions of dollars and years of research at Paul Allen's Interval Research think tank. They had finally found the secret sauce to getting girls--the great untapped market--into gaming. By the time the company's first product launched (1997), they knew just about everything you could know about what young (10-14 years) girls wanted and how they differed from boys. So they took their exhaustive and expensive research effort and created the ultimate implementation.

The implementation was awesome... beautiful graphics, clever characters and story, slick marketing, and a world-class leader who many of us still practically worship, Brenda Laurel. If anythng could finally bring girls to the games, it would be the perfectly-pedigreed Purple Moon's first game, Rockett's New School.

Except it sucked.

At the meta-level.

Because what is the meta-level for a game? Oh yes, fun. Purple Moon got the individual implementation details right, and applied all that they'd learned from the research, but forgot the forest. Fun.

Skyler was an early beta-tester, and had been looking forward to the game I'd been hyping for so long. But the first thing she said when she read the overview document was, "Why would I want to play a game about a girl trying to fit into a new school? HELLO! I've DONE that in real life and it wasn't fun then. I'd rather play Blobbo."

[Warning: gratuitous kid photo... this is Skyler today]

Skyler2006
[Fortunately, she reads this blog only twice a year--she'd kill me if she knew I posted this. Let's just keep it our little secret.]


Granted, Skyler wasn't the typical pre-teen. She didn't do Barbie. (She would have given a kidney for her My Little Pony collection, however). But still, when you strip away Purple Moon's research and implementation details, Occam's Razor applies: Just. Wasn't. Fun.

With our books, that meta-thing is learning. And if we get off track by focusing on and EQ'ing our implementation details without remembering that, we're sunk. So if we try to figure out our own "killer", we'll do it only by staying true to the meta-level forest.

Many of us are creating products or services where the barrier to entry for a competitor is not all that high. The only thing we have to really protect us is a willingness to throw out even our most successful products in order to build a better reflection of what matters to users at the meta-level. And that might look nothing like our current, successful product. Keeping focused on meta-levels is also the key to avoiding being trapped by fads or fashion. Fads and fashion ("rounded", "glossy", "extreme", "twittery" [sorry, couldn't resist ; ) ] tend to be implementation details, not meta-level concepts ("have fun", "kick ass", "be smarter", "have more time in flow", etc.)

Finding the meta-level

The best trick we know for finding the meta-level is to play the five-why's / why-who-cares-so-what game. Ask your users (or even just yourself) what's important about a product. When they answer, ask, "Why?" When they answer that, say, "So?" and when they answer that, say, "Who cares?" and keep going until you get to the heart of it. (And if you haven't played this before, most people stop WAY too early and miss what matters the most.) Only then do you discover that this feature the users--and you--believed to be meaningful was simply a tolerable way to do what they really wanted. When they say that X is important, dig deep enough and you might find that it was only because X let them do Z, and that there's a much better way to make that happen.

Again, I know we all know this. But it's so hard to do, and the more successful your product or service, the harder it becomes. "Don't mess with success" is often the biggest barrier to becoming your own "killer".

A prominent tech book author wrote on a public forum, "Your Head First books will be fine just until the next hot new thing comes along to replace it." I said, "Yes, and that's why I want to be the one to replace it."

The link between innovation and manufacturing

An article in today's New York Times reports on arguments about the link between innovation and manufacturing:

Import penetration, as it is called, worried economists and policymakers when it first became noticeable 20 years ago. Many considered factory production a crucial component of the nation’s wealth and power. As imports gained ground, however, that view changed; the experts shifted the emphasis from production to design and innovation. Let others produce what Americans think up.

Or as Mark Zandi, chief economist at Moody’s Economy.com, put it: “We want people who can design iPods, not make them.” ...

But over the long run, can invention and design be separated from production? That question is rarely asked today. The debate instead centers on the loss of well-paying factory jobs and on the swelling trade deficit in manufactured goods. When the linkage does come up, the answer is surprisingly affirmative: Yes, invention and production are intertwined.

“Most innovation does not come from some disembodied laboratory,” said Stephen S. Cohen, co-director of the Berkeley Roundtable on the International Economy at the University of California, Berkeley. “In order to innovate in what you make, you have to be pretty good at making it — and we are losing that ability.”...

Alan Tonelson, a research fellow at the United States Business and Industry Council, argues that in this country, import penetration is rising faster in core industries like machine-tool building than it is in other countries. And these are the industries that are, or should be, centers of innovation and invention.

As I've argued before, Silicon Valley's greatness is based on a wellspring of manufacturing genius: Christophe Lecuyer contends in his book Making Silicon Valley that growing a native base of manufacturing intelligence was important to the Valley's rise than having lots of Ph.D.s.

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Homemade Windmill Powers African Home

Homemadewindmillafrica

That William Kamkwamba built a windmill from scratch might not be impressive, had he done so after a trip to Home Depot with the ol' AMEX card. That he did so in the Malawian outback, for $16 in cash, using discarded parts and learning engineering by trial an error, is an awesome accomplishment.

The completed mill generates enough power to save his family money on home lighting, phone charging and batteries. The design uses a system of pulleys to make generation more efficient than a simple turbine, one of which can be hooked up to a bicycle to add human-power to the mix when needed.

Imagine if mass-production of such mills could be accomplished for $16 a shot. If it's good enough for London, why not every (windy) rooftop in Africa, or, indeed, the world?

Homemade Windmill in Malawi [AfriGadget]

History of tape

People who are into “duct tape” (like me) must have a look at this history of tape published by Ambidextrous (by Jonathan Edelman). It provides a very curious timeline that starts from “Earthenware pots mended with an adhesive substance made from the sap of trees” to Johnson and Johnson or 3M inventions. Fish-based glue as well as many patents issued for glues using fish, animal bones, milk, rubber, and starch are presented.

It’s hard to imagine a world without tape. It mends our precious keepsakes, holds parts together as a quick repair, keeps our wounds together—and sometimes saves lives. The film industry is a virtual slave to tape: gaffer’s tape, paper tape, camera tape. Supposedly Socrates used an animal hide with some kind of sap to repair a hole in his home. We at least know that before tape, there was glue, fabric, paper, animal skins, and string; when tape came on the scene, everything changed. This timeline puts into perspective how tape has changed the very nature of adhesion and, along with it, designers’ manipulation of the world.

Why do I blog this? duct tape is a very intriguing innovation. As a user experience researcher, duct tape always makes me wonder about how people tune, tinker, craft, modify artifacts. It’s not only an indicator of situations that should or have been tuned but also a a superb example of a way to let people create “stuff” (see this book:“Tape: An Excursion Through the World of Adhesive Tapes” by Kerstin Finger)

Sincerely, look at your environment, try to find where people leave duct tape.

The Innovation Index

BusinessWeek along with the Boston Consulting Group surveyed and ranked the top 25 Innovative companies in the world for 2006 and 2005. I have compiled the list of the top Innovators in North America for the past two years based on BusinessWeek's survey of over 1,000 senior executives in 63 countries. This list only includes the North American companies that are publicly traded.

Introducing The Innovation Index

The Innovation Index is a compilation of the top 18 Innovators in North America. Most of these Innovators are prestigious companies including GE, 3M, HP, IBM, and Proctor & Gamble who have created numerous innovations and shaped our lives over the past fifty plus years; some leaders are better known by their innovative product brands - Blackberry by Research In Motion, iPod and iMac by Apple, online shopping by Amazon.com, Windows and Office by Microsoft, Microprocessor powered by Intel; the list also includes leaders whose creativity and brands have become synonymous to markets: networks by Cisco, computers by Dell, marketplace of traders by eBay, hot coffee and cappuccino by Starbucks, fashionable clothing by Target, lowest price shopping by Wal-Mart, low airline fares by Southwest Airlines, and search nirvana by Google.

The alphabetical list of the top 18 Innovators of The Innovation Index along with their stock ticker symbols are presented below:

3M Company - MMM
Amazon.com, Inc. - AMZN
Apple Computer, Inc. - AAPL
Cisco Systems, Inc. - CSCO
Dell Inc. - DELL
eBay Inc. - EBAY
General Electric Co. - GE
Google Inc. - GOOG
Hewlett-Packard Co. - HPQ
Intel Corporation - INTC
International Business Machines Corp. - IBM
Microsoft Corporation - MSFT
Research In Motion Limited - RIMM
Southwest Airlines Co. - LUV
Starbucks Corporation - SBUX
Target Corp. - TGT
The Proctor & Gamble Company - PG
Wal-Mart Stores, Inc. - WMT

The Innovation Index Report will incorporate the following objectives and will be released weekly:

1. Report, analyze and project the stock performance of the top 18 Innovators in North America every week, and compare their performance to S&P, NASDAQ and Dow Jones.

2. Compare and contrast best practices, initiatives, new products, successes, strategies, stories, leadership and insights on Creativity and Innovation at the top 18 Innovators.

3. Showcase Disruptors challenging these top Innovators, their disruptive innovation strategy, and their current and potential impact on the Innovators' customer base and market share.

A potential "The Disruption Index" could also arise once the market of Disruptors grows, and they become identified and accounted for. For example, The Disruption Index could include Juniper Networks and highlights about how it is disrupting Cisco Systems, Advanced Micro Devices' and its challenge versus Intel, and Yahoo!, the once crowned Internet Innovation King now in a Disruptor's role vis-à-vis Google.

How are the Top Innovators performing?

In one word: Surprising. (click on the image to obtain a larger view of The Innovation Index) The number one Innovator by stock performance this year is not Google, nor Apple - the top two innovators in the world. Rather it is an Innovator that knows a thing or two about causing disruption in the business segment of mobile devices by its ubiquitous wireless email service: Research In Motion - RIMM. The Blackberry, called "crackberry" by its cult-like business users who are so hooked on the e-mail that they can't even go to sleep without it being on, has fundamentally changed how the business world communicates via wireless email with total ease and security. What is also surprising is eBay (EBAY), the darling of the Internet boom, is showing the highest negative return so far this year out of the top 18 Innovators. eBay is sure to answer back next year with a host of new planned innovations. Cisco Systems (CSCO) is on the rebound this year notching gains over 50% for the year; bell-weather, Hewlett Packard, is also showing impressive gains of about 40% for the year. Are they innovating and executing better this year? Dell (DELL), Intel (INTC) and Amazon.com (AMZN) are all showing double-digit negative returns for the year. Are Disruptors challenging their leadership positions? Would they be around as Innovators next year in the index?

Overall, The Innovation Index shows a solid return of 14% for the year, beating the S & P 500 and NASDAQ, and in a virtual tie with the Dow Jones Industrial Index average. The Innovation Index is currently at 75.61 points, up 9.03 points for the year. Only 5 out of 18 companies in The Innovation Index are showing negative returns. Seven Innovators are showing double-digit returns; while the venerable companies including GE, Wal-Mart and 3M are showing less than 5% return – I will be exploring under the hood as to why this is the case. I believe though that in the longer term, in as much as the index continues to include the most innovative companies in the world founded on creativity and ingenuity driving business innovation, The Innovation Index will outperform the respective market indices. On the other hand, The Disruption Index could be even more spectacular in annual returns owing to smaller yet high growth companies carving out significant market share.

For now, watch this blog for updates on The Innovation Index, the top 18 Innovators in action, and their Disruptors in hot pursuit.

References:

BusinessWeek: The World’s Top 25 Most Innovative Companies

December 22, 2006

Brilliant minds forecast the next 50 years of science

benoit_mandelbrot.jpgBoingBoing points to a fascinating feature in the New Scientist, in which more than 70 of the most brilliant scientists in the world weigh in on what the next fifty years might hold for the future of science. Contributors such as Paul Davies, Francis Collins, Benoit Mandelbrot, Jane Goodall, Susan Greenfield, Dan Dennett and Steven Weinberg touch on everything from aging and alien life to neuroscience and space technology:

"In coming decades will we: discover that we are not alone in the universe? Unravel the physiological basis for consciousness? Routinely have false memories implanted in our minds? Begin to evolve in new directions? And will physicists finally hit upon a universal theory of everything? In fact, if the revelations of the last 50 years are anything to go on - the internet and the human genome for example - we probably have not even thought up the exciting advances that lay ahead of us.

[image: Benoit Mandelbrot]

In Finland, frustration with modern innovation

mobile%20phone%20tosser.jpgA big hat tip to Lassi Etelaetalo of Finland, who won the World Mobile Phone Throwing Championships in Finland by tossing his handset 89 meters (97 yards). For those of you keeping score at home, the world record for mobile phone tossing is 94.97 meters, set in 2005. Anyway, this kind of event - offering participants the opportunity to vent their frustration with modern technology - is apparently becoming quite the international rage:

"Phone throwers can compete in the "original" category, a straight over-arm pitch where length is the main factor, and in "freestyle," where points are also given for style, costume and character, as well as general sobriety. (emphasis added) Organisers say the event is "the only sport where you can pay back all the frustration and disappointments caused by this modern equipment." Numerous countries now organise national events but at this year's world championship the large majority of competitors were Finns, apart from a few from Belgium, the Netherlands and Sweden."

Anyway, as Reuters points out, "the inventive Finns had already given the world the Sauna World Championships and the Wife Carrying Competition before coming up with a new way to make mobile phones even more mobile."

Tags:

[image: Yahoo! News]

"More Innovation Please" - Marketing

Innovation is nothing more than unique solutions to problems. The catch is that in order to develop the solution you must understand the problem.

Not understanding the problem can lead to Innovating for Innovation’s sake; and that is simply an exercise in corporate entertainment. For example, a friend of mine is being asked to head an Innovation team at a Fortune 500 company. It seems that marketing has come to product development and asked for some more Innovative products. Not a novel approach to ship the product. Not a novel way to use the product differently. Just a simply request for more Innovative products. The problem, as marketing is defining it, is that there are not enough Innovative products to sell.

By failing to identify a specific customer problem to solve what marketing is really doing is asking for hirer margin products to sell to the existing client base. They ask for this because they are responsible for generating more profit and they think that the best (easiest?) way to do this is to sell higher margin products to the folks that they already know.

There is only one flaw in this line of reasoning and it’s that the customer does not care about marketing not having enough cool products to sell. The customer cares about their own problems.

By ignoring the customer what you end up generating is a bunch of me too products that best meet the needs of the company – higher margin, existing supply chain, existing client base, existing manufacturing base – but not the customer. And by ignoring the customer you ensure that the customer will ignore you, leaving you with nothing to show for the Innovation effort.

Who's afraid of a little ol' meme?

Memetic%20Hazard.jpgOn Flickr, Arenamontanus has posted a photoset of 19 warning signs from the future, including a few personal favorites, like Memetic Hazard. Memes, of course, were first written about by Richard Dawkins in his breakthrough 1976 book The Selfish Gene: "The term meme... refers to a unit of cultural information transferrable from one mind to another. Examples of memes are tunes, catch-phrases, clothes fashions, ways of making pots or of building arches. A meme propagates itself as a unit of cultural evolution — analogous in many ways to the behavior of the gene (the unit of genetic information)."

With this as context, I suppose you can interpret the black lightbulb in various ways, perhaps as a warning that particularly powerful ideas and thoughts have the potential to be passed on to others in the immediate area. Or, the sign might be a warning about memetic drift (the tendency for memes to mutate as they propagate from person to person), memetic inertia (the tendency for memes to propagate in coordination with particularly annoying mnemonic devices), or even memetic association (the tendency for memes to herd together).

[image: Memetic Hazard]

Self reflection: A key to personal innovation

According to Kevin Eikenberry, author of The Sideroad Blog, we're all so addicted to busy-ness that we don't leave enough time for reflection. Reflection, simply stated, is thinking about what you'd do differently or better next time, or how you could improve your performance of a sport or your job. It's an opportunity to think broadly and creatively. But it requires quiet time.

December 20, 2006

By 2026, your entire life will be stored on a sugar cube chip

Tom%20Cruise%20in%20Minority%20Report.jpg

As computing power continues to grow, it will be theoretically possible to record and store high-resolution video footage of every second of a human life on a device the size of a sugar cube within the next two decades. However, with great power comes great responsibility:

"Researchers said governments and societies must urgently debate the implications of the huge increases in computing power and the growing mass of information being collected on individuals. Some fear that the advent of "human black boxes" combined with the extension of medical, financial and other digital records will lead to loss of privacy and a dramatic expansion of the nanny state. Others highlight positive advances in medicine, education, crime prevention and the way history will be recorded."

These issues and others were discussed by leading computer scientists, psychologists and neuroscientists at the Memories for Life conference held at the British Library in London.

[image: Tom Cruise in Minority Report]

10 ways marketing will be transformed in 2007

Via Bob Liodice on the ANA blog:

  1. Consumer in Control: Marketers will abandon their historic ‘command and control’ model of brand building in favor of a truly interactive dialogue with consumers
  2. New Agenda for Agencies: Agencies will be turned on their heads, with their efforts increasingly tied to client brand performance.
  3. Hail to the Chief: The chief marketing officer will rise in stature as a C-suite player...
  4. Unconventional Outreach: Marketing will become increasingly unconventional – tapping into social networking, word-of-mouth, local events and more...
  5. Media Buying Metamorphosis: Media buying and selling will be transformed.
  6. Let the Fighting End: Government policymakers, consumer advocacy groups and brand marketers will begin to find common ground, aligning business goals with public policy needs.
  7. Organizational Overhaul: The marketing organization will undergo a top-to-bottom reinvention, providing better professional education and skill-building...
  8. Research Renewal: Research will become the next frontier in the accountability equation.
  9. Blow up the Back Room: Archaic business systems and back office operations will be overhauled to lower costs...
  10. Continuous Marketing Reinvention: Continuous marketing reinvention will become the mantra of marketing executives and the cornerstone philosophy for successful brand building, integrated marketing communications, marketing accountability and the marketing organization.

Bob's 10-step program of progress truly validates the new and pretty scary path we've set out on with the formation and launch of crayon. It also underscores the mountain that still has to be climbed.

There is a still a massive disconnect between "what we say" as an industry and "what we do." The rhetoric is deafening and there is an abundance of "change is good, but not on my watch" which makes for a sobering inhibitor of innovation and progress.

Take point number 3: the rise of the CMO for example. It's going to take a lot more than a title or keynote speech at a AAAA's or ANA event to demonstrate that the CMO title is nothing more than a glorified or token figurehead. Along with this leadership position has got to be a degree of empowerment and budget autonomy. Put differently, in order to leverage the full power and potential of the C-level marketing position (which I think is beyond critical), point 7 - i.e. organizational overhaul - is going to need to be simultaneously and comprehensively implemented.

My hope is that at this time next year, we'll be looking at a self-reported progress card which glows with achievement and accomplishment.

Perhaps next year will be different...

Innovation Short Cuts

While I rarely advocate for short cuts, I think there are five or six attributes of a business that can propel it toward becoming a truly innovative firm. If you are in a rush to become more innovative in your business, adopt these concepts:

- Get top management on board and have them advocate regularly the importance of innovation,
even at the expense of short term results

- Welcome ideas from any part of the organization and demonstrate the ability to frame
problems and indicate which ideas are useful. Provide feedback to submitters

- Define a process for capturing, managing and evaluating ideas that is well-understood and
repeatable

- Encourage as much interaction and feedback on an idea as possible. Experiment and
question an idea thoroughly prior to launch

- Prototype early and often

- Seek as much information about the market as possible. Learn to be able to accept qualitative
inputs as well as you accept quantitative. The future can't be measured yet.

- Have your best people work on innovation. Raise the compensation and motivation on
innovation and eliminate the fear of failure

- Treat innovation like an investment portfolio. Nurture some incremental innovations that
pay off in the short run and some risky innovations with a big potential long term payoff.

OK - so in hindsight there really aren't any shortcuts. Doing any one of these things is a good first step, but to quote James Baker, this isn't a fruit salad. You can't say I'd like a little more prototyping but I don't want to impact compensation. To be effective at innovation in the long run, you need to implement all of these suggestions. Fortunately you don't have to do them all at once.

Do we need a new language of innovation?

Imitate%20the%20native%20speaker%202.jpgAs part of a series of "Innovation Wednesday" blog posts about innovation, Yvonne DiVita of the Lipsticking blog suggests that the current way of discussing and thinking about innovation is no longer practical or sufficient. What corporations need is a new language of innovation:

"Something that really struck me about the Fortune Innovation Forum was the "language of innovation." Will Edwards of Advanced Micro Systems spoke of the language, and how it's one way you can get off track. His exact words were, "Language can kill you. You need to create a new vocabulary." To that, I say, "Hear, hear!" [...]
"We need a new way to approach this. To discuss this. To talk innovation. Using the tired old words of the last century doesn't do it." Yes, they are reflective of innovation - the kind of activity described here and throughout both the Fortune Innovation Forum and the Business Innovation Insider blog but...but...but...they don't do the concept justice. And, they don't being to reflect or describe what innovation in a world of community participation really is.
So, the challenge, as I see it - is as much about the language of innovation, as it is about innovation itself. We live in a world that depends on communication - on the ability to share stories and experiences and to have the person you're speaking with actually understand what you're talking about..."

With that in mind, Yvonne proposes a brand new group of words to describe and characterize innovation within organizations:

* Creativeship
* Bold Maneuvers
* Gigantic Thought
* Anti-management
* Harmonic dissodance
* Musical stories
* The color of magic
* The sound of creation
* Grasping the invisible

[image: Imitate the Native Speaker]

December 17, 2006

A hunger for innovation

Dublin%20Potato%20Famine%20Memorial.jpg

If you want to make your workers more innovative, try starving 'em. Or, at least, make them really, really hungry. That's the conclusion of a new report from a team of researchers at Yale Medical School:

"Hunger makes the best sauce, goes the maxim. According to researchers at Yale Medical School, it may make quadratic equations and Kant’s categorical imperative go down easier too. The stimulation of hunger, the researchers announced in the March issue of Nature Neuroscience, causes mice to take in information more quickly, and to retain it better — basically, it makes them smarter. And that’s very likely to be true for humans as well.
A team led by Tamas Horvath, chairman of Yale’s comparative medicine program, had been analyzing the pathways followed in mouse brains by ghrelin, a hormone produced by the stomach lining, when the stomach is empty. To the scientists’ surprise, they found that ghrelin was binding to cells not just in the primitive part of the brain that registers hunger (the hypothalamus) but also in the region that plays a role in learning, memory and spatial analysis (the hippocampus)."

[image: Dublin's Potato Famine Memorial]

New Zealand Government Plan to Influence Consumer Behaviour

The New Zealand Government has embarked on a 'Buy New Zealand Made Campaign'. The Government is going to promote a 'Buy New Zealand Made' message to New Zealand consumers.

I think there is a case for food and other such primary products that are made locally. It would make sense from a environment and sustainable perspective to strike a better balance between exporting products, and having to import the same type of products from other countries to address the shortfall in local demand. However, for a whole lot of other reasons it seems like a misguided intiative.

The big problem I have with 'Buy New Zealand Made':

It is at odds with initiatives from the Goverments Growth and Innovation policy which is all about global connectedness and export growth. Initiatives such as Better by Design aimed at helping NZ companies become more internationally competitive.

It seems totally wrong in times when collaboration and alliances with other nations are so necessary for NZ businesses to produce world class products (and 'services'!!). Especially since we rely on technology, resources and know-how from other nations to remain a relevant and competitive nation. And if NZ businesses are trying to be globally relevant and competitive, what do they aspire too?

New Zealand companies have to export to grow. So NZ relies on other nations to accept New Zealand products. The initiative doesn't support a good position and competitve attitude towards global commerce.

It is so product centric (made, making, manufactured). With the big shift to the service economies in most successful economies it could be promoting something much more worthwhile.

Top 10 Secrets of the Marketing Process

If my previous post confused you, it's because of the difference between tactics and innovation. Try these 10 ideas to get you started down the path of scientific marketing tactics:

1. Don’t run out of money. It always takes longer and costs more than you expect to spread your idea. You can budget for it or you can fail.

2. You won’t get it right the first time.
Your campaign will need to be reinvented, adjusted or scrapped. Count on it.

3. Convenient choices are not often the best choices. Just because an agency, an asset or a bizdev deal are easy to do doesn’t mean that they are your best choice.

4. Irrational, strongly held beliefs of close advisors should be ignored.
It doesn’t matter if they don’t like your logo.

5. If it makes you nervous, it’s probably a good idea.
If you’re sure you’re right, you probably aren’t.

6. Focusing obsessively on one niche, one feature and one market is almost always a better idea than trying to satisfy everyone.

7. At some point, you’re either going to have to stick to your convictions or do what the market tells you. It’s hard to do both.

8. Compromise in marketing is almost always a bad idea.
Extreme A could work. Extreme B could work. The average of A and B will almost never work.

9. Test, measure and optimize. Figure out what's working and do it more.

10. Read and learn.
There are a million clues, case studies, books and proven tactics out there. You can't profitably ignore them until you know them, and you don't have the time or the money to make the same mistake someone else made last week. It's cheaper and faster to read about it than it is to do it.

Title mania

The NYT has a piece about title-mania and what it might mean:

“group idea management director”? / “chief transformation officer” / “marketing evangelist” / “chief consumer officer” / “vice president for stakeholder relations”
(…)
Experts say the unconventional titles are intended to signal a realization by an advertiser or agency that in a rapidly changing marketing and media landscape, the time for the tried and true has come and gone. The titles serve the same purpose, in other words, as an agency announcing that it is opening a division specializing in e-mail marketing, getting into the field of branded entertainment or starting a blog. “The agency is saying: ‘We are contemporary. We get it,’ ” said Susan Friedman
(…)
The dot-com bust deflated some of the zest for nontraditional titles, but the ferment in the new-media field in the last year or two seems to have revived it.

The title trend is gaining popularity at the same time as the practice of giving agencies unusual names, to let potential clients know they take an unconventional approach to advertising. Some examples include Amalgamated, Anomaly, Droga5, Mother, Naked, Nitro, StrawberryFrog, Taxi and Zig.

“It’s a screening device,”

Why do I blog this? I am not that into unconventional titles (even thought I don’t what can be my title judging my fuzzy hats) but I find the trend intriguing; it might reveal some more serious phenomenon.

Off the Grid Innovation

It's almost time for the holiday ski season to start here on the East Coast, and my thoughts naturally turned to Warren Miller, considered by many to be one of the greatest innovators in the ski industry. Over at the Warren Miller Entertainment site, there's a four-minute video trailer for his new movie ("Off the Grid") which features a number of great quotes from skiers about creativity, innovation and imagination (e.g. "People can be divided into three classes: the few who make things happen, the many who watch things happen, and the overwhelming majority who have no idea of what has happened") - as well as great clips of extreme skiing in out-of-the-way places like Kashmir.

So what was your best example of Off the Grid innovation in 2006?

[video: Off the Grid]

December 15, 2006

The MBA brand that means "innovation"

Haas%20School%20of%20Business%202.jpg

According to Ronald Alsop of the Wall Street Journal, the Haas School of Business at the University of California at Berkeley is attempting to market and brand itself as the Innovation MBA. The school has launched a major new strategic branding project with the theme Leading Through Innovation:

"After months of study, the school decided to stake its identity on grooming leaders who are innovative not just in developing new technologies and products, but also in "the organization of work, strategy, services, and business models." [...]
"We also thought hard about whether we could create enough new space with the word 'innovation,'" Dr. Lyons says, because the word has been used by the business schools at the University of Pennsylvania, MIT and Carnegie Mellon University. "But we ultimately decided that Leading Through Innovation worked remarkably well in conveying who we are."

In support of this "innovation brand," the B-school is overhauling its curriculum and even changing the type of students that it admits:

"Berkeley's Haas School believes its Leading Through Innovation slogan is already well supported by its strengths in technology and entrepreneurship and by its students' creativity. But it plans to put even more substance behind its new brand. Professors and industry experts are teaching seminars on innovation, and the curriculum includes new courses on leadership, managing innovation and change, and creativity and innovation in marketing and finance. Faculty members also are writing new case studies and articles for the California Management Review about leadership and innovation.
To attract the right kind of student, the Haas School has added a new essay question to its application that asks people to tell how they have demonstrated innovation and creativity in their professional or personal lives. "We're looking for intelligent students without arrogance, who can lead and manage in a changing environment," says Dean Tom Campbell. Haas School employees are expected to think more creatively, too. The performance evaluation for staff members includes a new section measuring how innovative they have been in the past year, and Haas has established a staff award to recognize innovation."

[image: Haas School of Business]

5 Myths of Consumer Behavior

I just finished Paul Allen Smethers and Alastair France's new book Five Myths of Consumer Behavior: Create Technology Products Consumers Will Love. It's been required reading at the office and for good reason. It's a superb book! Something every marketing student and product designer or engineer should pick up. [It also supports/echos some of what Jane ("the empathic economy"), Susan ("making customers happy") and Russell ("uncovering insights") touched on in their recent interviews here.]

At only 147 big-print pages it's a rather quick read but it packs a big punch and does a fine job at outlining core yet often overlooked consumer behaviour principles. In particular, Smethers articulately explains (in plain English) the various phases and stalling points of new product adoption, the barriers to initial use and proper usability, the different types of users and how to approach them, the many costs to the consumer and why it's so important to highlight a product's true value. Here are the five myths:

Myth 1: Consumers behave the same in all markets
Reality: Consumers behave differently in new markets than in established markets

Myth 2: The more consumers see it, the more successful it will be
Reality: If the offspring isn't attractive, there is no sense getting more users to see it

Myth 3: If I’ll use it, my users will
Reality: Consumers don't have your knowledge or your motivation when they try your product

Myth 4: Consumers will find a product’s value
Reality: The value must find the user

Myth 5: Consumers want more features
Reality: Consumers only want a few key features, and they want them to work well

The University of Colorado at Colorado Springs creates the Bachelor of Innovation program

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As much attention as innovation is attracting in the business world, it's perhaps not surprising that the world of academia is also re-thinking the importance of innovation and creativity within the curriculum. In one notable example, the University of Colorado at Colorado Springs recently announced the creation of the Bachelor of Innovation™ (BI) family of degrees. After debating which elements of engineering, entrepreneurship, business and law should be blended together to form the basis of an innovation academic program, the university finalized the creation of an "Innovation Core." This core has some unique aspects to it, including the use of long-term, multi-disciplinary teams working on real projects for companies; a course in proposal preparation and responding to RFPs; and an undergraduate law course with half of it dedicated to intellectual property issues.

The Bachelor of Innovation™ program is not a degree in innovation, it's actually a family of related majors (much like a Bachelor of Arts or Bachelor of Science) with a common core supporting a mix of degrees. The university currently offers 5 BI degrees and expects to add more soon. The core of the majors is the same (e.g. BI in Business and BI in EE have exactly the same required courses), only the electives are different.

[image: The Bachelor of Innovation]

Survey shows disconnect between importance of innovation & expertise in it

The Center for Creative Leadership recently surveyed the readers of its Leading Effectively e-newsletter about the importance of innovation in the workplace. Although 92 percent of respondents agreed that innovation is important to their success as a leader, not as many have actually done something about it: Lack of champions: Less than half of respondents (42%) agreed or strongly agreed that innovation has a champion in their organization. Senior managers don't understand innovation: Only 27% of respondents agreed or strongly agreed that senior managers in their organizations understand the essential principles for sustaining innovation. Lower level managers understand even less: Only 14% of respondents agreed or strongly agreed that lower-level managers understand the key principles for sustaining innovation. Lack of innovation process: Roughly two-thirds of respondents (65%) indicated that their organization doesn't have a formal innovation process.

Idea Seeding Better Than Brainstorming

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Kevin Cheng and Tom Chi, at OK/Cancel have written an article sharing the creative process they use for creating their awesome strips. Idea seeding is the process where they use time constraints and design/refine cycles to improve their ability to create quality “product.” They also wonder about extending this approach to other areas where brainstorming is normally used.

OK/Cancel

Even if you aren’t interested in idea seeding, you need to check out OK/Cancel. Tom and Kevin are incredibly talented designers who run a popular website creating a great community focused on (software) interfaces and the people who create them. Their articles, cartoons, and the discussion threads are top shelf.

A recent favorite strip of mine shows whatmight be titled Project Managers Behaving Badly.

Brainstorming Out

Kevin details their old design process for creating new strips, which involved a 2 to 4 hour brainstorming session. While they met their quality goals for the strip (their product), they felt that the process was too time-intensive. Tom had used a process called “switch sessions” as part of collaborating on music, and they adapted that process for comic-strip development.

Idea Seeding In

Kevin thinks “Idea Seeding” is a better name for the process, which they detail as follows:

  • Constrained Idea Generation. Each person works independently for 30 minutes to document the ideas for four comic strips.
  • Edit And Refine. The collaborators swap strip ideas, and for 30 minutes, refine or complete the other person’s ideas.
  • Collaborate And Polish. In a final 30 minute session, they collaborate to discard, improve, and select the comics they’ve created.

Kevin and Tom express that this is working better for them than brainstorming did. As a “user” of their product, I would have to agree, at least on the quality of the strips - they are just as good or better than before. And the process is saving them a ton of time.

One of the many commenters expressed that this is just a variation of “individual brainstorming” which has been proven to be more effective. The commenter cites this study as evidence of the relative efficiencies. The study tested brainstorming results using 36 college students. In our earlier article about the Wall Street Journal’s coverage of similar brainstorming studies, we quoted Dr. Sutton as a detractor of these studies:

To put it another way, if these were studies of sexual performance, it would be like drawing inferences about what happens with experienced couples on the basis of research done only with virgins during the first time they had sex.

Bob Sutton

Why It Works

The compelling element isn’t the lack of collaboration in the first session, it is the artificial constraint placed on time. Kathy Sierra has written about exactly this effect here and here and here and probably more places. She shares fantastic insights about cognition in many of her posts.

The second session is really interesting in that it has a marked divergence from brainstorming. In brainstorming, one idea builds on another. In this refinement session, one idea improves another. Brainstorming doesn’t allow for negative feedback or other valuations of ideas during the gathering stage - ideas are prioritized at the end of the session. And those ideas are all “first generation” ideas. With an edit cycle, the original ideas are improved - which implies that their weaknesses are identified.

Better Than Brainstorming?

Certainly Kevin and Tom are happier with this approach than using brainstorming. And Kevin wonders if it can be applied to interface design (creating wireframes, etc).

Idea Seeding For Process Re-Engineering

One idea immediately jumped out for how to use this as a business analyst - process re-engineering. Process re-engineering requires both insight and out of the box thinking. It is both a creative and an analytical exercise. We could use the “three session” approach to achieve these goals.

We would also have the benefit of pre-seeding the process by leveraging documentation of existing processes. Using two business analysts, the 30 minute sessions might look like this:

  1. Each business analyst identifies four (or three?) process changes that might be valuable if they worked, and fleshes out the ideas as much as possible.
  2. The analysts swap changes-proposals. Each business analyst then works to refine the process changes from the first exercise.
  3. The two business analysts meet to review the results and determine which changes to combine, pursue, or discard.

Kevin mentioned that their process worked well because they had a low-overhead template that made it easy to record thoughts and ideas in various stages of completeness. We would need something similar for our process change exercise.

Idea Seeding for Requirements Gathering

Requirements gathering is more about discovery than refinement. The collaboration inherent in a brainstorming session should be more effective at discovery than idea seeding.

Conclusion

Idea Seeding works better for Tom and Kevin than brainstorming did - same or higher quality in less time. We can apply the same technique to process re-engineering, but probably not to requirements elicitation.

How to be better at almost anything

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Earlier we talked about why the fast-talking guy sounds smarter than the guy who understands more than he can say. We talked about how wrong that is, and how if the glib always win, we all lose. But the more important battle is not between articulate vs. less-articulate people... it's between the articulate vs. non-articulate parts of your own head. Your brain has both a quick-talker and a quick-thinker, but the good-talker "know-it-all" gets the glory. In other words, there's a smart part and a dumb part of your brain, and the problem is...the dumb part talks.

Glibbrain

If we can get the dumber part to STFU, we can learn much faster and perform much better at just about anything. The dumber chatty part is hurting us.

It's the part that makes you self-conscious:
"Do I look OK? Am I going to say something stupid?"
"Am I overlooking something in this code?"

It's the part that criticizes:
"DOH! I can't believe I just did that. Idiot!"
"This code is inefficient... you need to fix it."
"That paragraph reads like a six-year old wrote it. It's dull.

It's the part that gives you "helpful" instructions:
"Make eye contact for three seconds. Watch your posture, don't look at your slides."
"Look for a design pattern to apply. Don't duplicate that code over there."
"Stay close to the fall-line. Don't lock your knees. Turn quicker!"
"It's safer to use formal terminology than risk looking silly."

While your brain is chatting away evaluating, judging, instructing, criticizing, directing, etc... the smarter parts sit in the corner, ignored. Alan Kay--often called the father of object-oriented programming and one of the greatest thinkers/researchers/designers/teachers/engineers of our time-- talks about the implications of this for education... something we talked about earlier.

But Alan Kay was inspired by the work of Tim Gallwey, whose work arose from one simple question, "... is all this inner dialogue really necessary? Is it helping...or is it getting in the way?" Until I heard Alan Kay talk about it (and explain some of the cognitive science behind it), I had always thought Gallwey's "inner game" thing was just one more bit of 60's self-help new-age nonsense. I was dead wrong.

Gallwey showed that the parts of our brain that learn from experience are far more capable than the parts that learn from talking through it. We think we need to tell ourselves things like, "keep your weight over your front don't press so hard on the violin bow..." when we're trying to learn something new or improve our performance, when that's exactly the thing that inhibits learning and improvement.

We did learn to walk, after all. And we did it with virtually no explicit "talking" instruction. Nobody compared our first steps to the steps of an expert (i.e. a parent) and "told" us how to adjust. Nobody outside or inside our head was evaluating, judging, or correcting. Think about times when people are telling you what to do when you're trying to concentrate and you finally yell at them to STFU. All we need to do is take that attitude we have to people outside our head and apply it to the chattering inside our head.

Easier said than done, of course. Gallwey makes the point that most of us can't turn off the talking parts with brute force will, although that's the basis for so many ineffective self-help or creativity books that tell you to change the way you talk to yourself or "silence your inner critic" simply by telling yourself to do so. (pretty tough to tell yourself not to tell yourself...)

For Gallwey, the answer is focus of attention. In tennis, for example, he has people learn to focus on the ball--the seams turning, the way it bounces, and the moment at which someone hits it. Bounce-hit. Bounce-hit. Nothing about feet, arms, rackets, weight shifts. Nothing talking to--or about--you. (Yes, technically your brain is still 'talking' through this "here's the bounce, there's the hit, etc." but the point is that it's not annoying and influencing you.)


Example Techniques

* Art
Nobody does a better job of this than Drawing on the Right Side of the Brain, a program created by Betty Edwards. I'd recommend it to everyone whether you ever care about drawing or not, just for the way it changes your brain. Betty (and a zillion students) demonstrate that the part of your brain that talks is also the part that draws like a three-year old. That part talks its way through, say, what a car or horse or human looks like, and it does a really lame job. But if you get your brain to stop saying, "this is a horse, and they have four legs and..." and instead focus on seeing shapes and lines, the better-performing parts of your brain can kick in.

* Writing non-fiction
If you plan a book by making outlines, you're indulging the talking (linear, step-by-step, rational) part of your brain. The focus is on what you do and say and when and how you say it. With our books, we do not use outlines--we do everything from storyboards. By focusing on the story of the learner's journey, it keeps the brain focused on the learner's experience rather than what WE do/say/write. This is not a trivial thing--last week our books represented 25% of the O'Reilly Top 20 bestsellers. And we're not all that good at writing. It really is about focusing on the reader instead of focusing on what the reader will think of us.

* Design
Mind-mapping--if you do it quickly--stops the talking parts from jumping in and evaluating what you're writing, so the creative parts can do things. That's what makes mind-mapping so powerful and fun--after you're done, you look at the paper and find things you'd never thought about... things that wouldn't have come out while talking your way through an outline.

* Programming
Pay attention to Code Smells, which is another way of saying a gut "bad feeling" that tells you something is wrong even if you can't yet say why.

* Everything
Read Malcolm Gladwell's book Blink, which I talked about in this post. And while you're making sure that glib people don't always win, try to do the same within your own brain.

Listen to the comments of our readers, who I'm sure will have suggestions for other resources : )

"You can't manage innovation"

I was reading Fast Company or Business 2.0 recently and came across this statement from an "expert" who went on to explain that innovation can't be put into a process or managed like a business process. If we assume that this statement is true, then innovation is difficult, costly and episodic at best, done mostly by wild-haired people in lab coats somewhere out of sight and out of mind.

But, just for fun, let's break down the arguments and see if we can determine if this statement is true, or if it might be an overreach.

Some will argue that you "can't manage innovation" because you'll limit creativity. Well, all innovation starts with some creative thought, no doubt. I don't advocate placing hard limits on creative thought, but at some point a good idea or creative thought needs to be converted into something we can do or use. Otherwise it is simply daydreaming. We need to distinguish between formalizing a process that manages an idea once it is created and placing limits on what or how people think - or how they create new ideas.

Others will argue that you "can't manage innovation" because it really does not lend itself to process management the way a more transactional process (like purchasing for instance) does. While I will agree that there are nuances between a purely transactional process and what happens in innovation, at some point we can decide that an idea is valuable and should be managed and evaluated. If we have ideas but don't have some avenues for consideration, some rules or metrics for evaluation, and some defined process, then each idea will be considered, managed and evaluated based on whatever criteria are at hand. Most businesses shudder to think of inconsistency in any process - why should innovation be different?

Others will argue that managing innovation is futile or difficult because innovation is not a "hard" science or process. It's almost like Brownian motion - if we observe it too closely, we by definition have influenced it somehow. Why do we think that innovation and idea management should be done by some other, wall-off process that does not receive close attention and scrutiny? If innovation is going to be one of the engines of organic growth, why wouldn't we want to pay close attention to what is happening and who is doing it?

Finally, others will argue that we can't manage innovation because it is cross-functional and many people are involved. It can be simply too complex to manage effectively. There are too many bureaucractic obstacles and cultural issues. OK, so we can put a man on the moon and split the atom but we can't figure out how to effectively organize ourselves to innovative repeatedly?

Let's face it - you can manage ideas and you can manage innovation. After all, once the idea is created, everything else is execution - managing, evaluating and producing a new product or service. Creative types may not like that, but then every creative agency I've ever worked with had three or four creative directors who generated the ideas and forty or fifty people to make sure the ideas can be executed. People who believe that you "can't manage innovation" are either guarding their turf from unwanted process and scrutiny or are unwilling to view the evidence. It is possible - and should be expected - that we can manage innovation.

The Genius Collector

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In this week's New York magazine, there's a great feature on Louise MacBain, aka "The Genius Collector." At regular parties in her $20 million penthouse in Greenwich Village, she invites some of the best and brightest thinkers of our generation for cocktail parties loosely organized around the theme of creativity and innovation. She also happens to be fabulously wealthy (she parties with Bianca Jagger in the Hamptons), beautiful ("she has the looks of Céline Dion, with a flawless figure") and well-connected. With millions of dollars to throw at worthy causes, she has little or no problem mixing and matching jet-setting UN diplomats, Nobel Prize-winning scientists, world-famous artists, Saudi princes and Internet visionaries (e.g. Esther Dyson, Jimmy Wales of Wikipedia). For example, she funds and sponsors the Global Creative Leadership Summit, a "lavish conference" that is similar in nature to the Clinton Global Initiative for its expansive breadth of speakers and participants.

What's interesting is that all of this hobnobbing about creativity and innovation comes off as nothing more than a "frivolous" vanity project supported by fabulous wealth that is being frittered away on self-indulgent projects (e.g. art magazines that lose millions of dollars). Her aim is nothing less than to "empower humanity via the power of the imagination." Which sounds all well and good, until you consider that this master plan includes "bringing opera to the children of Sudan." (Somehow, I don't think opera is top of mind for the children of Sudan.) At the same time, though, she is endowing neuroscience programs at Columbia University to study creativity and imagination and perfectly capable of discussing the theories of Leonardo Da Vinci. One internationally famous artist quoted in the piece basically throws up his hands and says, "It’s Louise’s money. She can do what she wants with it."

[image: Louise MacBain]

December 12, 2006

Industrial Design on YouTube

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We will interpret SCAD student Chap Ambrose's "What Is Industrial Design" video as the opening salvo in the design school 'tube throwdown! Email us when you other schools have something to show for your efforts. Until then, well, Savannah RULES!

...

Platform for Changing the World

Blueoceanstrategyworldchanging We’ve been keeping track of the thought-provoking content at the WorldChanging website, and for those members of our Blue Ocean Community who are not already familiar, we thought to provide a quick intro.

The World Changing credo is “that plenty of people are working on tools for change, but the fields in which they work remain unconnected. That the motive, means and opportunity for profound positive change are already present. That another world is not just possible, it's here. We only need to put the pieces together.” The site’s curator, Alex Steffen and his environmentally-friendly colleagues routinely showcase new possibilities, ideas and innovations which have the potential to change the world. Here’s just one such example (via FastCompany).

The brainchild of Danish, Dutch, and Israeli designers, Lifestraw is a fat, blue 12-inch drinking straw lined with a system of four separate filters to zap particulates, bacteria, viruses, and parasites. At a cost of about $3.50, it purifies enough drinking water for one person for six months to a year, without electricity, moving parts, or the material waste or transport costs of plastic bottles. Since premiering last year, the Lifestraw has won design awards around the globe and now awaits its full-blown debut in developing countries, where one in six people lack access to clean drinking water.

We see several commonalities between WorldChanging’s mission and Blue Ocean thinking.  They both question taken-for-granted assumptions and overstep accepted boundaries. They both defy conventional wisdom and advocate a frame of mind which continuously questions and searches for a different angle and fresh perspective. And, WorldChanging as well as Blue Ocean Strategy point to considerable opportunities in the budding space of social entrepreneurism.

December 11, 2006

Book: Fashioning the Future

0fashing9.jpgFashioning the Future. Tomorrow's Wardrobe, by Suzanne Lee, a Senior Research Fellow in Fashion at Central Saint Martins, London (UK).

The editor says: Spray-on dresses, growable suits and self-cleaning shirts may soon become everyday items. This visionary exploration of where fashion and clothing are headed provides the first guide to the astonishing ways in which contemporary science and technology are shaping what we wear.

I'll start with the nasty comment: i found the format, the glossy pages and the use of totally black pages to separate chapters annoyingly pretentious and eco-offensive. My first thought was that i'd have a hard time taking very seriously a book that looks so much like Vogue very seriously. But i calmed down as soon as i focused on the content.

The book gives an excellent overview of the state of the art in fashion and textile innovation. There's a lot of works from the big names of today's fashion avant-garde such as Walter Van Beirendonck, Hussein Chalayan (his work is gracing every chapter of the book), and Issey Miyake, a peek into research labs and also some of the projects that you can find in the wearable section of this blog or on twenty1f. I might lament that not much place has been left to art but it is a perfectly understandable editorial choice.

The chapters are extremely well documented and written, their content is the one we can expect: innovation in textile, health, communicating or glowing clothing, etc. At the end of the book are the always much appreciated goodies: a glossary and a list of websites.

What makes this books stand out from the other books written about the same subject is the many images and stories taken from old movies, archives, as well as 50's and 60's magazines (which is a bit paradoxical for a book which title features the words "future" and "tomorrow".) It gives a very interesting cultural and historical context to today's fashion and reminds us that what we may regard as a major breakthrough or a novel idea might have already been explored a while ago.

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For example, the book explains how the use of light in clothing and jewellery is nothing new. Battery-powered illuminated brooches and diadems became a fashion fad in France and England in the 18870s and 1880s. Then in the 60s Diana Dew created electric costumes for musicians and battery-operated garments with inserted panels of electroluminescent films that flash rythmically in time with the music in nighclubs.

Diana Dew image source.

The amazing shop-in-a-box

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The Venue VBOX - basically a huge shipping container that can be tricked out with cool features and even cooler products - is taking the idea of pop-up retail stores to an extreme. As Springwise explains, the Venue VBOX is a portable store that can be set up temporarily in any location and at any time:

"The VBOX enables a brand or company to follow an event they wish to align their brand with, or pop up where consumers least expect it. Tag along with a photography exhibition or set up shop temporarily at a large sporting event. Brands can even showcase items that consumers may not otherwise be able to purchase elsewhere: just fill the VBOX with one-offs or special editions and you'll pull in consumers with the prospect that they'll able to purchase something unique.
The VBOX comes self-contained and equipped with an iMac and iPod HiFi. It's entirely ready to go; all that needs to be done is fill it with enticing products. To date the VBOX has housed collections by some of the fashion world’s most prestigious names: RAF SIMONS (Prada Group) and limited PUMA designer co-labs by Alexander McQueen, Christy Turlington, Mihara Yasuhiro as well as CDs, magazines/books and Motorola phones."

[image: Venue VBOX]

The urban super bus

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The SCI FI Tech Blog describes a new electric-powered, aerodynamically-designed super bus capable of driving 155 mph and carrying 30 passengers at one time:

"Man, if the busses in New York were a bit more like this I'd probably skip the subway a lot more often. This is the "SuperBus," a 30-passenger electric vehicle that can move along at up to 155 mph. It's so fast because it's aerodynamic — so low to the ground that riders can't stand up inside. How do you get passengers in and out of a bus you can't stand up in? Give them all their own door, of course! Yep, 30 doors for 30 riders. If you want to get a ride on the SuperBus, just send it a text message and it'll pick you up along the special speedways designed just for the fancy vehicle. The researchers from Delft University of Technology in the Netherlands plan to have a working model ready to go to serve visitors to Beijing during the 2008 Olympics."

Somehow, I don't see any crosstown bus going 155 mph in Manhattan during rush hour. Even on the FDR Drive or West Side Highway, that would be quite a feat. Anyway, here's a promotional video of the super bus in action: The Dutch Formula One Super Bus.

[image: SCI FI Tech Blog]

LumaLive: Light-emitting textiles

At the IFA 2006 consumer electronics trade show in Berlin, Philips showcased a cool new technology known as LumaLive that enables garment makers to embed a low-power flexible array of colored LEDs into a garment's fabric. In this brief 90-second YouTube video clip, you can watch the technology live in action via LumaLive Philips t-shirts and LumaLive couches. For more on the LumaLive technology, check out PhysOrg.com and Engadget.

Tags:

[video: YouTube.com]

December 10, 2006

The economic and business impact of value networks

Value%20Network.gifThe Value of Networks event taking place in Boston this week is a two-day "deep dive" into the economic and business impact of value networks, with a focus on how large FORTUNE 500 corporations like Wal-Mart are embracing value networks:

"The principles of value networks are being adopted by the largest and most respected firms in the world. Firms like Wal-Mart have discovered the spectacular business advantages of transforming from a supply chain mentality to a value networks philosophy. "Value Networks aid our understanding and ability to address key issues and opportunities in our business." says the Wal Mart Corporate Website. ERP vendors like Oracle are urging all customers to "evolve their companies' supply chains into value networks..."

The Value of Networks event includes a number of hands-on and workshop activities in addition to presentations from some of the leading thinkers on value networks (e.g. Carol Rozwell, Bill Ives and Verna Allee).

[image: Value Networks Clusters]

Platform Innovation: Watch Your Step!

There are few things more seductive to a tech-sector management team than the thought of becoming the next industry-enabling platform.  Virtually every major corporation has a platform strategy, not to mention an equally elaborate set of plans to prevent any other vendor from achieving platform status.  All in all it makes for complicated navigation, both outside and inside the enterprise.

To clarify matters, understand that platform innovation takes on very different properties depending on which of the following three goals you have in mind:

1. Productivity.  This is the most basic domain of platform innovation—platforming your own product line.  Companies which have grown through acquisition or through independent business units operating in silos discover, upon reaching market maturity, they have massive duplication of efforts because they are supporting a wide array of product platforms.  To address this issue they undertake an architecture rationalization effort to migrate toward a common platform.  The goal is to improve their internal productivity and eventually reduce cycle time and time to market.

2. Whole Product.  This is an intermediate domain for platform innovation, where the goal is to build out an ecosystem of partners who will add their efforts to yours to flesh out solutions for target markets.  Hardware vendors seek out system software vendors to this end, system software vendors seek out ISVs, ISVs seek out systems integrators and VARs.  The typical focus of these efforts is on recruiting a large number of partners, which is almost never a good idea.  Rather the focus should be on quality not quantity, making sure you actually make an market for the best type of partner, and providing tools and support to enable them to use your platform productively.

3. De Facto Standard.  This is the dream state, in which your technology becomes a critical enabler of a whole class of applications.  In a book called The Gorilla Game, we identified the critical success factor here as having proprietary control over an open architecture.  This only seems like a contradiction in terms, for the word open here simply refers to the ability of any third party to avail itself of the platform’s services.  (Compare in this context, for example, Windows’s open platform with Xbox’s closed platform.)

As you can see, each stage of platform evolution implies securing the prior stage or stages.  Most importantly, however, Stage 3, becoming the de facto standard, can never be reached directly.  That is, if you announce that you are offering a proprietary technology to serve as a de facto standard in some open architecture, you may be assured that every other member of the ecosystem will resist your efforts to the death.  No one wants to create one more platform vendor to whom they must pay monopoly rents. 

Therefore, the only way a new platform can emerge is indirectly, first by achieving ubiquity as a product or as a component in someone else’s product, and only after having achieved ubiquity, converting to a proprietary platform.  How can anyone still fall for the old Trojan Horse trick?  I can’t answer that—ask the guys at Google.

Why open innovation is important in business and science

Karim%20Lakhani.jpgOver at Harvard Business School Working Knowledge, there is a Q&A with HBS assistant professor Karim Lakhani, who explains why open source software development has become an important new model for innovation in both business and academia. His latest research specifically analyzes how open source norms of transparency, permeable access, and collaboration might work with scientists:

"What he and his coauthors discovered: "broadcasting" or introducing problems to outsiders yields effective solutions. Indeed, it was outsiders - those with expertise at the periphery of a problem's field - who were most likely to find answers and do so quickly. The study and its findings are described in his paper The Value of Openness in Scientific Problem Solving, coauthored with Lars Bo Jeppesen, Peter A. Lohse, and Jill A. Panetta. It describes how broadcast search was used with 166 distinct scientific problems from the research laboratories of twenty-six firms from ten countries over a four-and-a-half year period. Problems involved everything from biotech to consumer products and agrochemicals. Thanks to broadcasting, nearly one-third of the previously unsolved problems found successful solutions."

[image: Karim Lakhani]

December 09, 2006

How to defend your innovation

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In an extended post about the "defensibility" of Web 2.0 business ideas, Guy Kawasaki provides a Top 10 list of possible answers to the following question: What makes your Web 2.0 company defensible? It's not an easy question to answer, concedes Guy, especially when the person asking the question is probably an experienced, big-time venture capitalist. With that in mind, the best answer combines a mix of clairvoyance, street wisdom, humility, honesty, and cockiness. So, the next time someone asks you about the "defensibility" of your innovation, here are some possible responses:

(1) “We know that there are no ‘magic bullets’ that provide defensibility.”

(2) “We have filed for patents, but we know that we cannot depend on patents as a major component of defensibility.”

(3) “We have an x month head start (mention “x month head start” only if x exceeds nine), and what we’re doing is hard. We know we have, at best, a temporary lead. It’s so hard that few established companies would defocus themselves by trying to do what we’re doing.”

(4) “We’ve built similar businesses before.”

(5) “We’ve amassed a ton of relevant domain expertise because our founders sold to these customers before.”

(6) “We used to work at [insert big-name company], so we know it won’t be a competitor. In fact, we quit the company to start this because our management refused to address this lucrative market.”

(7) “We don’t know if we’re the only people who can or are doing this, but we’ve already signed up key customers like [insert the biggest names that you truthfully can] to use our product. You’d think they’d know of better solutions if they existed.”

(8) “We came to you because we believe that the backing of a firm like yours will dissuade other firms from investing in competitive companies. We also know that you have a world-class Rolodex as well as access to the best talent.”

(9) “We expect that there will be competition because we’re not working on a get-rich-quick gimmick. This is a real business that we think is going to be big.”

(10) “It’s a race, and we’re going to work like hell to reach escape velocity. That’s the bottom line.”

[image: Trojan warriors]

180°academy

180academy.jpg

Putting people first is reporting about The 180°academy, a new Danish educational institution founded by Lego, Danfoss, Nokia, Gumlink, Bang & Olufsen, Novo Nordisk, and Middelfart Sparekasse. The 180°academy will educate concept makers who have the ability to develop, design and execute radical business concepts. Normally innovation has been technology driven. 180°academy believes in people-driven innovation, enabling the students to understand innovation from the point of view of everyday people. Smart according to us!
The acting dean is Anne Kirah (with a history as senior design anthropologist at Microsoft). It takes her one short sentence to explain why she has decided to help build the first ever international programme to educate concept makers. “I just love it when I see the twinkle in people’s eyes,” she says.

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Reverse Salients, and Open vs. Closed Innovation

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Nick Carr has published an excellent article in Strategy+Business about "reverse salients." What does that mean?

That odd term has its origins in descriptions of warfare, where it refers to a section of an advancing military force that has fallen behind the rest of the front. This section is typically the point of weakness in an attack, the lagging element that prevents the rest of the force from accomplishing its mission. Until the reverse salient is corrected, an army's progress comes to a halt.
Basically, reverse salients are the key things holding back overall progress of a system. They arise because system components advance at different rates. A good analogy is to think about them as bottlenecks to progress, although that's not quite apples to apples.

Carr goes on to discuss how reverse salients are addressed, and how fixing them can lead to innovative new products. But he distinguishes between the Apple closed system approach and the open approach more commonly used. Examining the pros and cons of each, he makes an important point that all entrepreneurs need to consider.

The open approach can correct a reverse salient quickly, but it, too, carries a price. By giving up control over a solution, a company may also sacrifice the financial rewards the solution generates.
I think this is a must read article for entrepreneurs and innovators, because it is an important distinction to understand. It's too long and too deep for most of the ADD challenged internet types to work through, so consider your reading time as time spent developing a competitive advantage.








Cashing In On Your Intellectual Property


Greg Brown at Work.com:

Every small business that suddenly grows big is based on an innovation of some kind. What’s less common is that the actual innovator has the focus or financial reach to turn the idea into cash. Learning how to protect your big ideas can mean later turning know-how into a business unto itself.

It’s easy to get caught up in the notion that your intellectual work is inherently valuable. But first, figure out if you actually control what you intend to sell.

For copyright, it’s easy under U.S law. Publish and you’re done, although most creative works are still marked with the telltale “C” and the date and you can, technically, register a copyright. Trademarks, like brand names or slogans, should be registered and patents — actual products or processes — are very complex and require close legal review.

To make money, you have to sell the rights to use your intellectual property (or conversely, limit access to it), but doing so is fraught with — gasp! — paperwork.

There is a raging debate among economists about the importance of protecting ideas. The much-debated “open source” model for software, such as Linux, is already being copied by, among all things, brewers. In a nutshell, an army of brains across the Web can vastly improve upon your good idea, so you might as well publish your process and invite them in.

Photo by jek in the.


How To Seem Smarter

einstein3.jpg
Dilbert author Scott Adams has a nice post about how to seem smarter than you really are. Here's the best part:

It's important to agree with people if you want them to think you are a genius. For most people, the definition of smart is "Thinks exactly like me but even more so." If you think that disagreeing and offering excellent reasons for your thinking will change anyone's mind, you might be new on this planet. The best outcome you can expect from any conversation is that the other person will walk away thinking you're probably the CEO of something, assuming you also seem selfish, egocentric and unethical.
This is why sycophants sometimes end up as CEOs.




Only from the Creative Mind of a Kid

"Weeeyeeoo weeeyeeoo weeeyeeoo weeeyeeoo weeeyeeoo!'

I turned around to see what Nathan, my 4 year old son was up to on the PC behind me. There he was, rapidly whipping the mouse around in circles, while a blue-white blob vibrated at the center of his screen.

"Weeeyeeoo weeeyeeoo weeeyeeoo weeeyeeoo weeeyeeoo!'

"Nathan, what are you doing?"

Without even turning to face me, he replied:

"Playing Google Earth, dad!"

December 08, 2006

The Asymptotic Twitter Curve

Twittercurve

We've all been at the brain bandwidth breaking point for the last five years. Email is out of control. IM'ing sucks up half the day. And how can we not read our RSS feeds, post to our blogs, and check our stats? If my Cingular cell phone sends me a MySpace alert and I'm not there to get it, do I exist? But email, IMs, social networking, and blogs are nothing compared to the thing that may finally cause time as we know it to cease. I'm talking, of course, about Twitter.

For those of you who don't know about Twitter, it has one purpose in life--to be (in its own words)--A global community of friends and strangers answering one simple question: What are you doing? And people answer it. And answer it. And answer it. Over and over and over again, every moment of every hour, people type in a word, fragment, or sentence about what they're doing right then. (Let's overlook the fact that there can be only one true answer to the question: "I'm typing to tell twitter what I'm doing right now... which is typing to tell twitter what I'm doing right now." Or something else that makes my head hurt.)

Twitter, it seems, is the solution to the one problem we all have: it's just too damn hard to keep updating our blog every few minutes to tell the world what we're doing at that very moment. Twitter lets you make tons of nano-posts (postlets?) to a kind of nano-blog (bloglet?) And indeed, it's every bit as stimulating as it sounds. Here's an ACTUAL SAMPLE from earlier today:

(names removed to protect the utterly bored):

"Missed the bus again."

"Attempting to figure out why the cat is hiding."

"I'm signing off."

"On bus going in to the office."

"Scanning pictures of 12-year old girls in mini skirts..."

"Going to bed now."

"Thinking about eating."

"About to start a conference call."

"I'm watching my dog chase the reflection from his tags and wish I had a laser pointer!"

"Feeling so bored at work I'm going to die. Wonder if it is my attitude or the work."

"Washing hair. Fetching groceries."

And there you have it. But don't take my word for it... go to the Twitter Public Timeline and find out what people are doing... right now. Right this very moment.

I'm making fun of Twitter, but this isn't really a funny topic. Moore's law for the brain doesn't quite work. We're evolving much, much, much too slowly... Brain 2.0 isn't coming anytime soon. And we're all feeling the enormous weight of not being able to keep up. We can't keep up with work. We can't keep up with our social life. We can't keep up with the industry, our hobbies, our families. We can't keep up with current events. We'll never read a fraction of those books on our list. And we are hurting.

Worst of all, this onslaught is keeping us from doing the one thing that makes most of us the happiest... being in flow. Flow requires a depth of thinking and a focus of attention that all that context-switching prevents. Flow requires a challenging use of our knowledge and skills, and that's quite different from mindless tasks we can multitask (eating and watching tv, etc.) Flow means we need a certain amount of time to load our knowledge and skills into our brain RAM. And the more big or small interruptions we have, the less likely we are to ever get there.

And not only are we stopping ourselves from ever getting in flow, we're stopping ourselves from ever getting really good at something. From becoming experts. The brain scientists now tell us that becoming an expert is not a matter of being a prodigy, it's a matter of being able to focus.

Lots of people are talking about this, and perhaps nobody more eloquently than Linda Stone. Linda talks about the problem of Continuous Partial Attention. She says:

"To pay continuous partial attention is to pay partial attention -- CONTINUOUSLY. It is motivated by a desire to be a LIVE node on the network. Another way of saying this is that we want to connect and be connected. We want to effectively scan for opportunity and optimize for the best opportunities, activities, and contacts, in any given moment. To be busy, to be connected, is to be alive, to be recognized, and to matter.

We pay continuous partial attention in an effort NOT TO MISS ANYTHING. It is an always-on, anywhere, anytime, any place behavior that involves an artificial sense of constant crisis. We are always in high alert when we pay continuous partial attention. This artificial sense of constant crisis is more typical of continuous partial attention than it is of multi-tasking."

Read more on her wiki!

But this whole problem is also tied up with the notion of Alone Time, something Jason Fried believes is absolutely essential to both creativity and productivity. I strongly suggest reading his post on How to Shut Up and Get to Work (don't forget to look at the comments).

Joel Spolsky also appreciates the value of Alone Time, and makes sure that those working for him have a chance--and a space--in which to think without distractions.

And finally, a lot of other people are musing about the effects of Twitter, including Kevin Tofel who wonders the same thing I do--Is it Too Much Information? (The answer, Kevin, is YES. I know enough about the brain and learning to recognize that sucking the last bit of mystery and curiosity out of our lives is not a good thing.) Also Frank Paynter, who talks about the distinction between multi-tasking and Linda's Continuous Partial Attention, and where Twitter might fit in to this.

A few of my earlier posts on this (pre-Twitter, when I still had hope) were:
Multitasking makes us stupid? (a follow on to the earlier Your brain on multitasking) and The Myth of "keeping up" (which is where I created the book picture I re-used in yesterday's big book list).

Also, this post helps explain some of the science behind why we really ARE addicted to checking IM, blogs, email, and now Twitter. The most important thing, I think, is to stop being in denial about the profound impact this is having on us and those around us. Until we stop seeing interruptions as something that happens TO us, and understand the role we play in causing them, we're in big trouble.

Depthofthought

Fortunately, there's help... a kind of 12-step program for geeks who want to stay connected but also get something done (and without losing our minds completely). While you're out surfing, you might as well check out the tips and techniques on 43 Folders, Lifehacker, and Steve Pavlina.

So, OK, yeah, I stretched a LOT on my Twitter curve (I'm determined to make an asymptotic curve once a year whether I need to or not, and I hadn't met my quota for '06). Obviously the time between interruptions is not asymptotically approaching zero.

Or is it? ; )

[cue end-of-world sci fi music, with maybe a voice-over of Terrence McKenna discussing Time Wave Zero]

[UPDATE: Against my will, I found myself reading the Twitter timeline again after I posted this (I told you it was addicting) and had just about the biggest laugh of the week when I found people Twittering about... this post on Twittering. ; ) I love you guys (Sarah and Arabella you made my night!) And I can think of dozens of reasons why Twitter is a wonderful thing (like for separated families, etc.) But talk about an event horizon... Twitter is the new Crackberry.]

Top ten alternative marketing trends for 2007

Drew Neisser, CEO of Renegade Marketing, wrote this piece in The Wise Marketer. In it he outlines the following trends:

  1. Corporate honesty at all costs
  2. Transparent customer satisfaction   
  3. Net Promoter Scores
  4. Blog monitors   
  5. Niche market mining
  6. Eco-everything
  7. More user-generated content
  8. No more lines
  9. Daring to be digital
  10. Innovation triumphs

What can I add to this other than, I totally agree.

New Economy Models and Old Bridges

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A wise person helped me see today that the Golden Gate Bridge is an excellent example of HAAS (Hardware As A Service) which has been living right under our noses for decades.  It's a pay per use business model, and is certainly a lot more affordable than building your own bridge. 

Sounds a lot like B2B plays in Web 2.0 and Office 2.0 to me.

It's all about perceptions, isn't it?  I believe there are very few, if any, new business models under the sun.  The challenge for us is to see clearly, to think creatively, and to apply what we already know to make things new things happen in interesting and effective ways.

flickr photo credit

Britain re-thinks science and innovation

james%20Wilsdon.jpgIn an op-ed piece for the Financial Times, James Wilsdon of the influential UK think tank Demos argues that the British government's view of innovation is no longer appropriate for a global, interconnected world. Instead of pouring more money into basic research and traditional disciplines such as chemistry and engineering, the British government should think in terms of global, interconnected research nodes and interdisciplinary excellence. In other words, "keeping up with China and India" does not necessarily mean out-spending them and producing hordes of new graduates in the sciences and engineering:

"Confronted by daunting statistics about armies of Chinese and Indian scientists and engineers, it is easy to feel pessimistic about our small island's long-term prospects. It is understandable to look for ways of coercing our young people back into the physics lab. But again, this is to misunderstand how and where innovation occurs.
At a recent Royal Society meeting, a senior R&D manager from Unilever admitted he would be relaxed if more of their synthetic chemistry moved to Shanghai, because the unique strengths of their British labs were in combining hard science with a sophisticated understanding of what makes consumers tick, drawn from social and behavioral sciences. As science and innovation becomes more international, Britain's greatest assets may be its openness to international collaboration and its ability to combine advances in basic science with insights from other disciplines, such as psychology, economics, social sciences and law. We will continue to benefit from our own inventions and discoveries, but also from our participation as specialist nodes in global networks of research. A growing number of scientists and R&D-intensive businesses recognize these opportunities and are reorientating themselves to meet them. Now policy needs to catch up."

For more on this, check out The Atlas of Ideas, which is an 18-month investigation of innovation in China, India and South Korea sponsored by Demos. Findings from the study will be released at The Atlas of Ideas event in London during January.

[image: James Wilsdon]

Great example of a 'lead-user' innovation

You're out in the front lines in Iraq and you don't have anything that helps you spot trip wires. What do you do? You make your own solution to the problem. This article tells the story about how soldiers are using that brightly coloured "silly string" to solve this urgent problem. They spray a stream of the silly string out in front of them, if it falls to the ground, things should be OK. However, if there is a wire, the silly foam will fall in an inverted "V" as it gets caught in the wire.

You can probably imagine that the soldiers might even be adapting the existing can of silly string so that it shoots the thread of foam further in front of them. Possibly by heating it up first with a lighter or blow torch (don't do this at home kids!).

What's so interesting about this story is that it shows that, from the army's perspective, the innovation is coming from the soldiers themselves, not the top brass: it's coming from the bottom up (or outwards in). This is what happens with radical innovations. Compare this with what happens with the far more common incremental innovations: the idea for these innovations comes from the top down (or inwards out).

I wonder what else you can use a can of silly string for?

Design and innovation.

David R. Butcher recently wrote an interesting text about design and innovation in the Industrial Market Trends newsletter that goes very well in line with the thinking on our last issue of David Report, Communication Through Product. “As noted, design — closely aligned with innovation — is the key to standing out and maintaining competitiveness. That applies to any size business, no matter how large or small. Design helps businesses connect strongly with customers by anticipating their needs. That in turn gives companies the ability to set themselves apart in increasingly tough markets, and allows them to set the pace rather than simply respond to the competition.” Well worth reading.

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December 06, 2006

The Home Depot Announces 'ORANGE WORKS' Innovation Partnership

808thm
The Home Depot(R) today announced the creation of ORANGE WORKS, a new innovation and design venture with Arnell Group, that will redefine product development for the world's largest home improvement retailer. Comprised of leadership from The Home Depot and Arnell Group Innovation Lab, ORANGE WORKS has a mission to work with expert vendors on unique and proprietary innovation within The Home Depot that will meet the needs of emerging lifestyle and product trends.

This unique venture between The Home Depot and Arnell Group Innovation Lab is a seamless partnership and collaboration among market researchers, store associates, merchants, designers, vendor partners, architects, engineers, industrial designers, graphic designers, and brand and design strategists. ORANGE WORKS will tap global innovations and best practices to bring innovative new products to market across specific "mega-trend" categories, including home safety, aging in place, outdoor living, smart home technology, efficient use of time and space, and eco-friendly products. The multidimensional ORANGE WORKS team will take products from conception to presentation at retail in a holistic program that is thoroughly orchestrated from idea to shelf.

One of the first ORANGE WORKS projects is the launch of a new proprietary brand, Home Hero(TM), which focuses on home safety. The line will feature complementary products, including an innovative fire extinguisher with improved ergonomics designed to complement the decor of any room of the home. In contrast to the traditional red tank that usually is hidden under a sink or in a closet, the new, attractive extinguisher is designed to remain visible in a room and within reach for quick use. The cross-functional ORANGE WORKS team is working in conjunction with vendor partner Kidde, which is a part of UTC Fire and Security, a business unit of United Technologies.

Two additional ORANGE WORKS innovations under development focus on universal design, ideal for consumers who want to age in place or create a more accessible home environment. Easy Reach Storage enables a consumer to raise or lower cabinet shelving units with one hand, eliminating the need to stoop or stretch. The second item is a decorative chair rail molding system that doubles as a handrail, designed for consumers who need the support but do not want unattractive handrails in their homes.

SOURCE The Home Depot

Instead of More, Try Different

You can’t out-compete others simply by doing more of whatever they do: going ever faster, cutting costs ever deeper, or working your people ever harder for longer hours. The Law of Diminishing Returns will ensure that. Besides, the Law of Unintended Consequences often turns such well-intentioned actions into surprising disasters. There is only one way to respond to competition that works long term.


In recent years, responding to competition has lost its way. Its has come to mean little more than doing more of what everyone else does. Time is money, so organizations continually try to go faster. Greater productivity and output per person is pursued simply by firing some people and working those who remain harder and for longer hours. Offering the customer discounts leads to a discounting price war. Tactics like this are ultimately futile, because they are a one-way street. Organization A cuts costs and is countered by organization B cutting even more costs. Working your staff for longer hours leads to others working their people for still longer ones. In time, such simplistic behavior crashes into the Law of Diminishing Returns—and often the Law of Unintended Consequences as well.

You cannot go on finding “savings” for ever from a finite set of resources. There is always a limit. And the closer you get to that limit, the less return you get for the same level of savings.
The Law of Diminishing Returns ensures that competition by means of cost cutting, staff reductions, overseas outsourcing, and the like will only work for a limited time. Once everyone is running headlong down this same track, additional cuts must swiftly become so deep that they start to harm the business itself. As the supposed “fat” is trimmed away, further cuts bite into muscle and bone, weakening the business’s longer term vitality—all for the sake of staying ahead in this short-term “arms race” of escalating cost reductions. We are already seeing rising wages and skill shortages in countries such as India, which were the first recipients of the outsourcing boom. That so-convenient surplus of skilled, English-speaking staff, who were willing to work for very small wages, has rapidly disappeared. The law of diminishing returns is always waiting to snatch away the prize, despite the effort put into winning it. All it takes is for everyone to jump onto the same “more profit by greater cost savings” or “more sales by bigger discounts” bandwagon—exactly what is happening today. You cannot go on finding “savings” for ever from a finite set of resources. There is always a limit. And the closer you get to that limit, the less return you get for the same level of savings.

That’s the Law of Unintended Consequences at work. Instead of getting what you want, you get something else—something logical and inevitable, but far less welcome.
The Law of Unintended Consequences can ruin you long before the Law of Diminishing Returns has its inevitable effects. Think about this carefully before before deciding there is no practical alternative to getting on to the bandwagon of imitation. Consider the discounts being offered to try to sell stockpiled cars and SUVs. Customers quickly get the idea that whatever “savings” one manufacturer offers must quickly be trumped by the rest. So they wait before buying—the very last thing the manufacturers want—to take advantage of the lowest possible price. Now the idea has spread. Bursts of holiday shopping are coming later and later, and retail price cuts and sales are starting earlier and earlier. What used to be post-Christmas sales to try to dispose of unsold goods have turned into pre-Christmas sales to try to sell anything at all. That’s the Law of Unintended Consequences at work. Instead of getting what you want, you get something else—something logical and inevitable, but far less welcome.

Here is another example. Through all the cutbacks, headcount reductions, and the like, organizations have (unintentionally, of course) been teaching their staff to be as disloyal to the organization as the organization has been to them. Many, many skilled people, especially in sough-after disciplines, keep their resumes polished and ready at all times. Quite a few have them permanently posted on Internet recruitment sites. You cannot blame them. They have seen their friends and colleagues thrown out without any scruple. Maybe they have themselves received pink slips, with all the cant about how sorry the organization is to have to let them go. Losing their job no longer terrifies them. They accept it as normal, and plan for it accordingly.

Organizations and their leaders have been engaged in a gigantic game of “chicken.” They have pushed one another further and further down the road of short-termism and pure expediency.
For years, organizations have relied on cutbacks and cost savings to drive up short-term profits and please shareholders. It is so much simpler and less demanding of leadership than increasing business—or creating more profitable and effective ways of doing the business that they have. When the Law of Diminishing Returns arrives to plague them, they still cut harder and harder to drive up profits faster than the competition are doing. Is it any wonder that the media are full of stories about looming shortages of skilled people? That too is simply the Law of Unintended Consequences coming into play. These “sudden” and “unexpected” skill shortages are merely the inevitable result of years of cutbacks in staffing and training. Now, so it seems, we may be facing a decades-long “war for talent.” With a huge rise in retirements ahead, as my generation (the “baby-boomers”) become too tired and ga-ga to go on working, our organizations are seeing red lights, huge potholes, and crash barriers along that nice road of easy profits from staff reductions.

Organizations and their leaders have been engaged in a gigantic game of “chicken.” They have pushed one another further and further down the road of short-termism and pure expediency. They have leapfrogged one another in their haste to become the “lowest cost producer,” seeking more and more “savings” in every budget—except the one for top executives’ salaries and bonuses. They have not dared to be the one who blinks first. In their arrogance and folly, they have challenged one another to stay longest on a path that can only lead to misery on a truly colossal scale, as the two laws (Diminishing Returns and Unintended Consequences) come down upon them. We have already seen the once mighty Ford Motor Company pawning virtually all its material assets to raise enough cash to stay alive. Who will be next?

There is another way: Doing more of the same can be replaced by doing something different. And “different” offers an almost infinite range of possibilities. One that is unlikely to run out in anyone’s lifetime.

Innovation is the only long-term source of genuine competitive advantage. Leave imitation to the also-rans, who don’t have the vision or imagination to do any better.
Here, at last, is a good use for all those tedious studies of “industry best practice.” Look at them carefully and take notes; this is what not to do, because it is already in use. This is what to avoid whenever you can. Don’t follow the herd. Think hard, be as creative as possible, and do something different. Strike out on your own. If what you do works, others will follow you, but (for a while) you will be out ahead with little or no serious competition. And when others do catch up, let them keep on down the road towards diminishing returns, while you repeat the process and step aside into something new.

Innovation is the only long-term source of genuine competitive advantage. Leave imitation to the also-rans, who don’t have the vision or imagination to do any better. Cherish your creativity. Hone and polish it every day. In the end, it is the only killer advantage that you will ever possess.

December 02, 2006

John Seely Brown iCampus keynote

http://icampus.mit.edu/Symposium/

Notes from John Seely Brown's keynote at the iCampus MIT-Microsoft Alliance summit. His theme: applying the long tail concept to education.

The world is becoming "flatter... and [also] spikier". The task is to identify and realize local ecosystems of talent and capabilities. The struggle to do this could lead to "talent wars." How to apply Web 2.0 style of learning?

Brown began by identifying older pedagogies of content delivery, contrasting it with social learning, socially constructed understanding. A version of the latter is "learning in and through our interactions with others and the world." This approach could be applied to assessment, by check students to see "how well do [they] collaborate in learning?" If this is a viable approach, then academia should think about supporting participatory architectures.

As an example, Brown focused on the studio form of learning, as seen in architecture. Peer and instructor critique are social. Ideas become prototypes. Classes move between lecture, discussion, and experiment. To adopt this, instructors need to rethink their teaching practices.

Brown drew on Michael Polanyi's model of knowledge dimensions, distinguishing between explicit (learning about) and tacit (learning to be) knowledge. The latter happens within an epistemic frame, where students learn ways of seeing, knowing, exploring, sensing, and engagement. Teamwork can become hard when different epistemic frames clash.

How to people learn to be? Open source platforms are good examples. Code is written to be read; engagement happens through useful additions; social capital is meaningful. Open source projects are forms of distributed, situated learning, involving cognitive apprenticeships. A different is the specialized scholar's portal (example: the Decameron Web), where students can see how scholars argue.

Where are students experiencing this in their lives? In a powerful way, students experience digital culture as participatory, based on iterations, remixes, mashups, commentary, etc. "Meaning, for these kids, turns of what they create." Brown took care to distinguish between mass media and participatory media, contrasting professional production arcs with amateurs' blending of consumption with production. Web 2.0 architectures support participatory media. This may go so far as to see an amateur class rising.

Brown went on to explore an astronomy class, seeing niche communities of cocreation, shared and informal learning. This learning is lifelong. And electronic media support these (example: a large number of Yahoo groups). These cases do influence some teaching and learning in higher ed (example: the Faulkes Telescope Project, which connects students and faculty around the world).

Can higher ed draw on these amateur practices? There are already resources on the web, including MIT projects (OCW, the Lecture Browser, the OCW Consortium), Connexions, the British Open University, and many open portals (WGBH, BBC). Are there too many, leading to a success disaster? How do we "close the loop" to make sure students use this material?

At a larger level, how does academia facilitate a circle of knowledge building and sharing? Web 2.0 technologies are useful here.

A fundamental transition is under way, first uncovered in the corporate world: shifting from supply push to demand pull, in an era of digital abundance. Retail, media, advertising, and manufacturing have seen a shift to users selecting, driving, creating, rating content. Is this transition happening in education? Consider a shift from building stocks of knowledge to supporting flows of knowledge, supporting learning ecologies. Or informal learning, where people learn in virtual communities of practice, learning by tinkering, designing, creating, remixing, and re-searching.

To the long tail: Brown sees an 80-20 rule applying to courses, where roughly 20% of courses generate about 80% of campus revenue. Costs, in contrast, are largely spent on the other, 80% of courses. How to leverage those? Perhaps we can focus on using pre-existing "spikes" of accumulated work, connecting students to them. Tools and scaffolding could be built to focus on the long tail.

One possible model couples core literacies with passionate learning. A minimal core curriculum complements co-creation communities of amateur knowledge. Brown works a pun: recreation (as fun) becomes re-creation (productive inquiry situated in communities of co-creation). This could be a bridge between academic and popular culture.

Note: Thanks to Mike Berman for the recommendation on this entry.

December 01, 2006

Find Me Someone To Think For Me

A recent article in the British newspaper, The Guardian, deals with another sadly common manifestation of Hamburger Management: an inversion of values when it comes to corporate decision-making. The article, written by Guy Clapperton and called “Lost the ability to think for yourself?” reports that managers are becoming “hooked” on using consultants to do their thinking for them and make their decisions.

Organizations often use consultants in lieu of staff when they have freezes of head count. That’s understandable (though it makes a nonsense of the supposed cost-savings the freeze on head count is established to produce), but the real problem is how these consultants are being used.
Quoting Alastair Clifford-Jones, chief executive of British management consultancy Leadent, Clapperton points to what Jones calls “consultancy addiction:” the process by which clients get so hung up on having consultants around that they won't let them go, using them to do their thinking and make their decisions, and creating a sense of being dependent on their advice. Organizations often use consultants in lieu of staff when they have freezes of head count. That’s understandable (though it makes a nonsense of the supposed cost-savings the freeze on head count is established to produce), but the real problem is how these consultants are being used.

Logically, the most important elements of any business are those concerned with thinking and making decisions, especially decisions on strategy, since everything else flows from them. Subsequent implementation, difficult though it may be, and the day-to-day running of the business are nearer to tactical routines. Deciding on matters of strategy and thinking through the options are pretty much what senior managers are paid to do. So it seems amazing to me that one senior manager quoted in the article seems to be saying exactly the opposite.
The consultant should help with the business and not run it. They can put a new IT platform in, put a required change in, but not run the day-to-day business.
It is as if generals were required to rush in and fight the enemy hand-to-hand, not waste their time on battle planning and supervising the overall engagement.
If something must be outsourced, surely it should be the most routine aspects of the business? But such is the premium on action and busyness in the world of Hamburger Management, and the fear of seeming to waste time stopping and thinking, that corporations employ extremely expensive “strategy consultants” to do most of the vital thinking required, while using their own senior managers to do the routine work of running daily business operations. Maybe it is a belief that to be “in control,” you actually have to have your hands constantly on the levers. It is not enough to have decided what must be done and issued the plans and instructions. You actually have to be in direct charge of making everything happen. It is as if generals were required to rush in and fight the enemy hand-to-hand, not waste their time on battle planning and supervising the overall engagement.

Here’s another quote from the article:
Businesses have long been using the adjective “strategic” as a proxy for “loss making,” a malady that has been exacerbated by the rise of expensive strategy consultants.
Indeed, sometimes managers try even to avoid the appearance of having spent any time on the despised process of thinking about their business:
Often people ask consultants in to build their credibility after a decision has already been made—and that's when they ask the consultant to do the presentation, so that it looks independent.
Why should an “independent” decision seem better than one made in-house, except through a corporation’s innate lack of trust in their own people? Surely, the in-house managers should be far better placed to understand their own business and reach the right decision than someone from outside, who probably has little direct experience of the organization’s markets and customers?

When thought follows action, you are already in trouble.
Actions follow thinking (or they should, provided that any thinking is done at all). No action can take place without some prior thought, except for reflexes like snatching your hand away from a flame. When thought follows action, you are already in trouble. But that is what Hamburger Management does. It focuses people on actions and allows them to pay others to think for them, using the spurious justification that outsiders will “have a broader viewpoint” and “a wider industry knowledge.” This is code, of course, for the other staple of Hamburger Management: imitation. What many consultants do is transfer actions between organizations, so each one ends up doing what all the others have done already.

Is that a recipe for creating unique value and outsmarting the competition? I think not.


Attracting Talent in Spikes and Firms

If you want to create wealth, find and address scarcity.  Chris Anderson proclaims the economics of abundance, but abundance in certain areas inevitably generates relative scarcity in others. 

Emerging Scarcities
I have posted in the past about the growing relative scarcity of attention. This is a key factor in the growing power of customers and their ability to squeeze margins of firms, especially in times of great abundance. There’s another scarcity that will also squeeze margins of firms, at least in the near-term.  That’s the relative scarcity of talent. In times of great abundance, the ability to stand apart from all the others becomes increasingly valuable and this in turn depends upon the ability to mobilize talent. In more and more domains, talent is capturing growing premiums.  Between pressure from customers and talent, corporations will find it increasingly challenging to capture economic value in times of great abundance because they have not yet mastered the techniques required to address the new scarcities.

These two scarcities are related at multiple levels.  As just one example, the growing power of customers resulting from the relative scarcity of attention increases the need for sustained innovation which in turn increases the relative value of talent.

Talent in Spikes
Richard Florida recently did a great post summarizing the role of talent in driving regional economic development (by all means, don’t miss the study by Edward Glaeser on “Cities, Information and Economic Growth" cited in Richard’s post).  Reading this account, I couldn’t help but think about the role of talent in driving value creation for the firm. One of the most important observations Richard makes is:

While most economists . . . continue to conceptualize human capital as a “stock” or “endowment” of a given place – either you have it or you don’t. But the reality is that human capital is a flow. The key question thus becomes: What factors shape that flow and determine the divergent levels of human capital across regions?

Human capital, or talent, is definitely not a stock, especially in rapidly changing times. Talent flows readily across geographies (immigration laws permitting – for a fascinating comparison of trends in immigration laws in seven high income countries, check out this report and then this discussion of "brain drain" from rural to metropolitan areas in the US), attracted by opportunities to realize greater economic value. Talent similarly flows across institutional boundaries. 

But talent also flows in the sense of more rapidly evolving and developing in times of great change. Today’s talent is tomorrow’s incompetence, unless the talent is continually refreshed. People with talent generally realize this.  They increasingly seek out geographic and institutional homes that will help them to refresh their talent more rapidly. This is one of the reasons that the spikes – geographic concentrations of economic activity, innovation and talent - Richard talks about will become more rather than less important. They provide fertile ground for refreshing talent more rapidly.

Talent in Firms
Firms are a different matter.  They may or may not do a good job of refreshing talent.  There’s a reason that people keep citing General Electric for its talent development practices – most corporations are not very good at it.  Unfortunately, certain management mindsets tend to limit the success of many firms. I’ll briefly mention five of these mindsets:

Attract and retain vs. develop.  When management focuses on talent, it tends to emphasize the challenges of attracting and retaining talent, while paying much less attention to the need to develop talent aggressively. Unfortunately, many executives view the war for talent as being won upon acceptance of offers to join the firm. From my experience, the firms that focus on developing talent more rapidly do the best of attracting and retaining talent. Word spreads and talented individuals seek out these companies.  Once in the firm, these individuals are less vulnerable to offers from other firms because they realize that their value will increase more rapidly if they stay with the firm that develops them more rapidly.

Training vs. learning.  When companies do focus on developing talent, they often emphasize formal training programs.  While these programs certainly have a role in talent development, they pale in comparison to the rapid learning that occurs when employees are put in situations that challenge them to get better faster on a daily basis.  Toyota does a remarkable job of this, expecting all of their employees, especially the front-line factory workers, to push the boundaries of performance.  For Toyota, talent is far from a static concept.  It is continually refreshed by defining and tackling performance issues throughout the company.

Attract and retain vs. access and motivate.  Talent strategies of companies often focus too narrowly on the talent that resides within the enterprise.  One of my favorite quotes is from Bill Joy, a founder of Sun, who noted that “there are always more smart people outside your company than within it.”  Few companies make a systematic effort to map the relevant talent that exists outside the company. Even fewer companies develop effective strategies to access and motivate that talent through networks of relationships, including positioning in relevant spikes around the world.  Internal talent will develop more rapidly when it interacts with relevant talent outside the firm through these networks. Don’t just focus on developing your own talent. Find ways to accelerate talent development in your business partners as well by defining challenging performance targets and then mobilizing your own talent to help these business partners become successful. Companies
that do this well will find leading companies approaching them to become business partners, creating a virtuous cycle in talent development.

Automation vs. amplification.  Too many companies have concentrated their IT investment on initiatives to automate processes – removing people wherever possible – rather than exploring how IT might be better used to amplify the talent of the people left.  New generations of collaboration tools, supported by new IT architectures, could help firms to more rapidly develop talent. Flexible e-learning platforms and collaboration on demand platforms represent just some of the opportunities available to harness IT for talent development.

Strategic importance of growth.  Growth offers many benefits to the firm, but one of the most overlooked is the value in terms of talent development. I have written about this here and here. Talent develops a lot more rapidly when firms grow rapidly because individuals are more frequently placed in new and challenging roles relative to individuals working with lower growth firms.  A low growth firm is often vulnerable to talent erosion.

At the most fundamental level, the rationale for the firm is shifting.  As JSB and I have written, the rationale for the firm articulated by Ronald Coase back in the 1930s – that firms exist to economize on transaction costs - is diminishing in importance as continued innovation in IT systematically drives down transaction costs.  In its place, we are seeing a new rationale for the firm emerge – firms exist to accelerate talent development. This is increasingly the reason why people choose to affiliate with firms.  They believe they can get better faster by working with others within the firm, as well as with others across firms, through the privileged relationships built by the firm. If firms can’t find ways to deliver on this promise, talent will exit and Tom Malone’s e-lance economy will flourish.

In a perverse way, geographic spikes and firms face opposite challenges.  As spikes form and achieve critical mass, network effects begin to take over and a virtuous cycle emerges – the more people that participate in the spike, the more valuable the spike becomes as a source of talent development.  In contrast, the larger the firm becomes, the more difficult it is to sustain high growth rates and the more likely that inertial forces will take over and limit the potential for talent development, setting in motion a vicious cycle – talent tends to leave to seek out more hospitable homes and growth slows even further.  The winners in the global economy will be the firms that can find ways to break this vicious cycle and harness network effects for talent development both within and across firms.

Idea Killers: Ways to stop ideas

Lifehacker points us to Scott Berkun's "management, design and innovation" blog for a peak at "Idea Killers: Ways to stop ideas". It's a great list (or a tragic one, depending on your own corporate culture), with the always-crushing "We tried that already," the ethnographically-short-circuited "That isn't what people want," and the can't-wait-to-use-this-in-our-next-meeting "This train is on fire." There are 28 comments to the post so far, with our fave, "Is the juice worth the squeeze?"

And the one we use at Core77...like every week? Well, that'd be "Is this the hill you wanna die on."

...

I'm suing you for "loss of innovation"!

law%20%26%20order%20videogame.jpg

A lawyer in Iowa is trying to establish legal precedent in a $450 million class action lawsuit against Microsoft for a "loss of innovation" damage claim. Thankfully, the judge in the case ruled against the claim, calling it "too speculative." Apparently, a bunch of consumers and small businesses in Iowa that purchased Microsoft products over the past ten years have banded together and sued Microsoft, claiming that the software giant effectively discouraged other companies from developing innovative new alternatives to Internet Explorer and other Microsoft products. By being forced to use Microsoft products, they claim, they suffered a "loss of innovation."

Anyway, the Des Moines Register has the inside story of what went down in an Iowa courtroom:

"Roxanne Conlin is the lead plaintiffs lawyer in the case. Her clients are all Iowa consumers and businesses who purchased Microsoft products between 1994 and this year. She said in court in September that she hoped to create a new legal theory for anti-trust cases that would create a claim that would be similar to “loss of consortium” damage claims awarded to couples in personal injury cases.
The new claim, she said, was based on allegations that Microsoft had used its market dominance to discouraged other software makers from producing products that would have been superior to Microsoft’s web browser Internet Explorer and other Microsoft products. [The judge] ruled against the new theory. He sided with Microsoft and said that basing damage claims on “denial of free choice and loss of the benefits of software innovation are too speculative.”

Thankfully, this Iowa case is the last major anti-trust, class-action law suit against Microsoft in the U.S. Woohoo!

[image: Law & Order: Justice is Served]

The Truth About Communication




Organizations today are suffering from a plague of pointless and unnecessary communication. People are rushed off their feet because they waste so much time attending meetings, talking on the telephone, or reading e-mails, all in the cause of “better communications.” Team working is in danger of becoming as much of a plague as termites—and just as destructive. “Improving communications” is not a panacea for all management ills; often, it’s not even relevant to the actual problem. It’s time to shut up and let people get on with their jobs.


Here’s an interesting and provocative post from management consultant Kevan Hall. It starts like this:
Want to give yourself an extra productive day every week without spending any more time at the office? You can do just that—and improve job satisfaction for yourself and others—by cutting out unnecessary teamwork, reducing communication and relaxing central control.
What Kevan is promoting is unabashed management heresy, and I couldn’t agree with him more! We don’t have too little communication in organizations today, we have way too much. Let me put that more clearly. There is far too much communication of the wrong type, and not enough of the right kind.

What’s the wrong type of communication? The things Kevan writes about. Here are some examples of my own:
  • Unnecessary teamwork and far too many tedious meetings. Team working has become a plague. Like termites, it’s creeping in everywhere and destroying initiative, self-confidence, personal responsibility, and creativity. I’m all in favor of working in a team when it’s appropriate: that means only when what needs to be done cannot be accomplished by individuals working independently. Believe me, that’s far less than you have been brought up to think. Team working is not the same as working in a coordinated way. Nor is it the same as being co-operative and helpful to others. Neither of those needs a team to happen. In the vast majority of situations, the best way to get something done is to give it to someone and tell them to get on with it. Getting a team together simply slows work up and ensures nobody feels individually responsible.

  • Teams water down accountability. For some people, teams are great for this very reason. Accountability shared—as widely as possible—usually works out to be no true accountability at all. When things go wrong, nobody is to blame because everybody is to blame. Besides, the torrent of finger-pointing that goes on (It was her. No, it was him. I say it was both of them) obscures actual responsibility like a sand storm. There’s nothing like safety in numbers.

  • All the meetings for “co-ordination” and “reporting back” waste so much time that the actual work goes more and more slowly. Then it drops behind schedule and that spawns still more meetings to “monitor progress.” If the meetings were thrown where they belong (in the garbage), there would be some actual progress. As Kevan says:
    Participants at our online survey tell us that they spend more than a third of their time in meetings—more than half of which they don't really need to be attending at all. This meeting overload ties up something like 20 per cent of all management time—and it achieves almost nothing. A particular favourite is activity reviews where individuals tell you what they did last week. These consume around an hour per week of time for many teams and is [sic] usually of no interest or use to anyone.
  • “Better communication” is treated as a panacea. Improving communication (as long as it’s the right kind) will only help in certain cases: the cases where communication is actually the problem. Elsewhere it’s either useless or actively harmful, if it draws attention away from the real cause of the difficulty. But “improving communications” training is a favorite of consultants and trainers precisely because it’s so vague and imprecise in meaning or objective that you can never prove why it didn’t work. Organizations have been brainwashed into accepting that it’s important. Communication is talking. To be successful you need to do something, for heaven’s sake!
Have you ever asked yourself why so many communications are “top down?” The answer is simple: because they are all about control. My guess is that a huge majority of meetings have far less to do with co-ordination or co-operation than they have to do with the boss staying in control and knowing what everyone else is doing. If you tell someone to achieve a result and let him or her alone to get on with it, you have to trust that person. If you set up a team, and convene regular “progress meetings,” you can give the illusion of delegation, while checking up on everyone in minute detail. In fact, you can probably so tie them up in “reporting back” and “sharing ideas” that you will, in effect, reduce them to obedient toilers while someone else (you) controls exactly what they do.

What are the right reasons to communicate? Simply these:
  1. To explain, simply and clearly, exactly what you (the supervisor) expects: the objectives, the means to be used (if you know), the extent of initiative allowable, the time-scale, and the means for contacting you for help or guidance (but only if necessary).

  2. To make clear your support for the person to whom you have given the task; and to bolster his or her confidence.

  3. To listen to what they want to tell you. A teaspoonful of genuine and truthful bottom-up communication is worth more than a barrelful of the usual top-down kind. If you truly want to know what is going on, shut up and listen.

  4. To respond to questions (only if asked) and give praise for a job well done at the end. If the job isn’t well done, you either didn’t train the person well enough before they started, gave the job to the wrong person, messed up the briefing (see point 1), or failed to listen. In just about every case, more than 50% of any blame (usually more like 90%) lies with you. If you feel the need to chew someone out, start with yourself.
Communication is a tool, just as team working is a tool. As the boss, it’s your job to choose the right tools at the right time, and use them correctly. If people don’t know what they are supposed to do, can’t keep other (necessary) people informed when required (and only then), go off at a tangent, or just get plain muddled and lost, you are the one primarily at fault. And that’s not a communication problem, it’s a personal one.