Hack:
Innovation 2.0: Redefining and Humanizing Institutions for Innovation by 3D (DECENTRALIZING, DEMOCRATISING AND DISRUPTING)
To create is Human. In 21st century to make innovation and creativity everybody, every day, everywhere capability in our organizations, it’s important to humanize our organizations and innovation processes, so that they become more and more creative and innovative as human beings, spontaneous and constantly evolving. In order to do that we need to Decentralize the authority and power, Democratise the whole process of innovation from Idea generation to rewards to revenue and Disrupt the tools and training for innovation. And if we want innovation to be the intrinsic and infinite flow that happens because of the system than we have to completely redefine and humanize the organizations for innovation. We have to set the culture of innovation, so that innovation will not only be every day, everybody and everywhere capability but the core competency.
Today’s time has confronted the organizations with the unexpected and brutal realities, faster than ever. The problem is the nature of the problem, in this hyper connected and complex world, every problem has become the systemic problem. So in this world full of externalities where every little action can create multiple and negative reactions, we need to be careful that how we are treating the problems (by providing solutions).
For the systemic problems, we want the preventive solution rather than just an alternative. If we study the evolution of innovation in organizations from setting R&D department to open innovation initiatives, the common pattern for the cause of that evolution, consist changes in three fundamental categories 1. Philosophy or Ideology 2. Psychology 3. Technology. These three things have profound impact in how our organizations work and most decisions are influenced by them. But more often, the vast, frequent changes seen in technology category and least or no changes seen in the philosophy or ideology category. To change this we need to reflect, rethink and most important redefine our organizations, its work and its existence for innovation. Because what is delivered is often what was defined and decided. So if we want to exceed it or innovate, we need to redefine it. As soon as we redefine that humanize institutions for innovation which stimulate the human soul and human spirit, people see themselves as communities to make a difference. Then for everybody innovation becomes the natural act because that’s what to be human.
Why Redefining and Humanizing
Humanizing the organizations
Humanizing the organizations is important because without it we can’t build organization fit for human beings nor we can provide environment when people feel like communities. For truly humanizing our institutions where people feel like the community we need two most important components: Cause and Culture. Because
CAUSE + CULTURE = COMMUNITY
See any community in the world or group of people work like the community has The Cause to serve and The Culture to deliver on the cause.
So Redefinition and Humanization will causify, set culture that constantly and systematically deliver innovation to serve the cause in the organization based on 3D ideology.(DECENTRALIZING, DEMOCRATISING AND DISRUPTING)
Redefinition
Few reasons for Redefinition,
(1) Everything accelerate and evolve and loose its relevance by the time. To make everything more relevant for the future,(particularly for organizations) you need redefinition.
(2) In the human history almost all the revolutions are the direct or indirect results of radical redefinitions.
(3) Reinvention is difficult without redefinition and redefinition accelerate the reinvention.
(4) When something become complex, redefinition simplify or clarify it.
Here is the process
Reflect/Rethink → Redefine → Renegotiate →Reinvent / Redesign / Reform →Revolution.
Here are the big examples. In Apple Steve Jobs redefined everything. For Steve and his team, it’s not just making the better and faster computers but to push the human race forward by providing the best machines that can help humans to explore the new possibilities and without it or before it was not possible. (From the 1980s, interviews of Steve Jobs)
In Southwest Airlines Herb Kelleher redefines not just as the low cost airlines but by keeping the cost low they able to give America the freedom to fly. Southwest people felt like community and contributed with an extraordinary efforts to this cause even without the pay for the extra hours! (See the boss, Herb Kelleher episode)
And recently I saw in the success interview video of Shipment Company. The CEO redefine the work of shipping. She describe every shipment is as an appreciation with expectations. And if people truly believe this then they understand that these must be delivered on time safely with care. And this change the whole performance in all terms and measures.
Jeff Bezos at Amazon redefine from not as making money by selling stuffs online but helping people to make better decisions by creating the best customer experience. ( HBR Blog, 2013)
And last Prof Hamel redefining management as the technology of human accomplishment. And work of management is to organise, mobilize resources towards the productive end in way that reflect the human values.
Based on The 3D ideology (DECENTRALIZATION, DEMOCRATIZATION AND DISRUPTION) these are the questions and possibilities worth considering.
(1) How we redefine and humanize the organizations for innovation?
(2) What are the principles on which we can redefine and humanize institutions that reinforce and foster 3D ideology, and because of that innovation will be amplified?
(3) Ideal model for the culture and system (customizable for everybody) where we can Decentralize the authority and power, Democratise the whole process of innovation from Idea generation to rewards to revenue and Disrupt the tools and training for innovation.
(4) Synchronization of everything so we can convert organizations into communities where innovation become enduring core competency.
The ideal solutions must be sustainable and satisfying.Many time the problem is not that we don’t have solutions of but we have identified the wrong problem and treating the problem the wrong way.
Raise these questions: Is this a right, relevant and primary problem and by solving that we can have significant impact on our present as well as future?
After we identify, what is the right approach to solve or how we treat this problem?
HIERARCHY OF SOLUTIONS
Alternative < Cure < Prevention
Let’s assume that somebody has fever or cold. So the first kind of solution is the alternative, take the pills and it will be all right. This is the least sustainable solution because he hasn’t understand it completely he just confronted and want to be solved one way or another to get back normal. Then second is the cure, it is an alternative with the understanding. In this case he goes to the doctor ask about his fever, observe himself and understand the reasons for the causality and treat not only the symptoms but the reasons. And the better than this is the prevention, it is also an alternative with understanding and preparation. This time if that person have preventive mind-set than he understand the causality of your fever but he prepares, like change his routine, develop an early signs system so that he can identify and cure before its reach critical level.
As the part of preventive solution we should start by redefining your organization for innovation first.
Redefine in way that reflect that our organization exists to innovate to deliver value. Ask your organizations these two questions (1) Why we exist, why we do things what we do? (2) What we think about what we do or What we think about our organizations, their existence and role of innovation?
That will clarify what’s considered as the innovation for our organization and what’s not, what is game changer and what is the incremental innovation based on what kind of value. Example: At Amazon providing the best customer experience is central so if we come up with the video review of people it might be considered as the incremental but if we come up with technology that allow people to see 3D images and feel it like in the physical stores, now that might be the game changing. But redefine in a way so that innovation become an easy, simple, interesting and fun activity for everybody. The redefinition of innovation should not build the perception in people as you have to be God Gifted or Genius to be innovative.
This will take time. Your approach should experimental, understand by experimenting and must be in agreement with everybody. Once this is done (the cause part), set the culture that deliver on it by humanizing (cause+ culture).
Humanizing the organizations for innovation start with the individuals based on the different principles or values that not only amplify the innovation but sustain innovation and make innovation the core competence.
Principles or Values for building the culture of innovation.
(MOONSHOTS FOR INNOVATION)
(1) THINK MORE, QUESTION MORE: In organizations we are much more like only doers, what orders we are given. The top people think, the middle managers acts as the coordinators and in the bottom people just be doers. That’s not because they can’t think but they seldom provided the tools and environment to think and come up an inside or an idea. If we want innovation as core competency we need to change this. Contrarians are the questioners and the questioning is one of the most important and starting point to be the innovator. It’s not the answers that leads to the innovation but the questions. By thinking and questioning we use the single most important lesson the science teach us Scepticism and Openness.
(2) DARE TO DREAM THE IMPOSSIBLE: Game changing innovations never happens when it was possible. Greatest inventors and innovators have the same common pattern that they had the dream of impossible (at that time). But that impossible became possible because they dared.
(3) MAXIMUM FREEDOM: Without freedom innovation is not possible nor with limited or calculative freedom. If we want intrinsic and infinite flow of innovation then we need maximum freedom. Freedom to think and imagine, freedom to explore, freedom to experiment.
(4) TREAT PEOPLE THE WAY THEY WANT AND LIKE TO BE TREATED: Business can be described in principles, processes, profit and people but people always comes first. If we want that people bring their gifts of creativity with them in the organizations every time, we have to treat them as they like and want. This is very personal and differ from one person to another. We need to understand that. From innovation and organizational point of view often times it’s not the mangers intentions but their treatment with people break the bridge and they choose not to come up with the ideas.
(5) NURTURING RELATIONSHIPS: Innovation can’t be forced. If we want it to make it the natural act than let it be nature’s way by nurturing. Researches shows that nurture is more powerful then nature. How you lead, mentor, push and correct people is it taking them to the next level or demoralizing. When their roles and relationships become more and more meaningful they become more passionate.
(6) DOING WHAT’S INNOVATIVE NOT WHAT’S JUST WORKING: Innovation isn’t everything but the only thing. Pushing people and teams not to take the easy alternative and really differentiate them by innovating. This will spark the competitive spirit by innovating, for innovation.
(7) INSPIRE TO INNOVATE & RISK-TAKING TO BE THE GREAT: In the organizations people often find very risky and hard for anything new. Because of the failure stories of peers and others. For innovators the leap of faith is often one most important part to go ahead which other people see as the risk taking. We want culture that convert those failure stories into stepping stones as part of the process. And should not treated with negative marking.(if you are right, you get +1, but if you wrong -2)
(8) EMPOWERING TO BE THE EXPERIMENTER & ENTREPRENEUR: Put the experiments and trials score-board out of the game until the game really start. Many times our organizational processes don't give us enough chances to fail and improve because they bring the score-board in the game even in the practice session. Everything we do is considered and measured into total efficiency matrix. All our trials and given time are considered as the chances given to us to prove our self. As the trials are meant to be failed on large basis they hand-cuff, discard the creative people with red and yellow card that you haven't shown the tangible results. Many times in order to fund an idea people make changes as their bosses say and by the end the original innovation loose its power because it has become the total reflection of what should be by the point of view of top management people rather what it originally was. This things kill initiative and entrepreneurship spirit.
(9) LIVING FROM YOUR IMAGINATION WITH RESPECT OF REALITY: For innovation or in general to accomplish anything worthy, we need ideal balance of Facts and Faith, empiricism and imagination, curiosity and caution. We need to embrace the trade-offs. The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function. [F. Scott Fitzgerald]
(10) LOYALTY IS THE REAL ROYALTY: All the innovation roots pass through customers. (directly or indirectly) Long term is the right matrix for innovation. Loyalty is only earned by the long term.
(11) IT’S NOT WHAT YOU GET FROM IT BUT WHAT YOU BECOME THROUGH IT: One can yield the highest rewards for his or her dedication to excellence by innovating is not just by measuring what he or she gets from it but by recognizing and applying what he or she becomes through it. For innovation ROI we have to consider not only the tangible rewards like new products, revenue but what we have learned and become capable of(as the organization) by perusing.
Develop your culture on this values or principles will help in decentralization, democratization and disruption. Building the system or culture where innovation happen because of system or culture the other components are Skills, Resources, Accountability and Rewards. First I will share ideas for each of these. Then next I will share The Ideal model for the culture or system. (customizable for everybody).
Skills and Idea Generation→ Getting Resources to Experiment → Accountability → Reward, Compensations
1) Skills and Idea Generation: If you set to do thing that are truly innovative then all the past references are irrelevant. And to be truly innovative we need new sets of skills. Skills that make us more innovative intelligent. But for that we have to understand innovation and innovation process.
The INNOVATION process ( I to I)
IGNORANCE/ INNOCENCE → AWARENESS → KNOWLEDGE → UNDERSTANDING → INSTINCT/RELAIZATION → CREATIVITY/INNOVATION. This clarify many things. With innovation process in mind develop training programs that’s start with knowing and understanding yourself first then progress to your industry, company rather than the reverse. Like SELF → PEOPLE → YOUR WORK, COMPANY, INDUSTRY AND THE REST.The problem with our education system and corporate training system is designed that goes from your work, your industry to people and last yourself. But without knowing about yourself you won’t be able to develop their true potential. All the innovators know more about themselves or better the understand themselves and people well first.
Real skills to be the real disruptive innovators. Clayton M. Christensen ,Jeff Dyer and Hal Gregersen the authors of The Innovator's DNA, did big research project to find the secrets of disruptive innovators like Steve Jobs, Jeff Bezos. They come up with five skills that matter most they call them the discovery skills
Thinking (Associational), Questioning, Observing, Experimenting and Networking.
Ideas to naturally develop innovation skills and idea generations.
(1.1) Try QQ: Question storming and Question converting rather than just brain storming. In this session we ask and generate as many questions (100 is good but at least 50) about the issue we working on. Then select the best pressing one and try to convert big, open ended questions into close ended one. This will provide you the new insides help you to understand better and upgrade your skill. Example
(1.2) Introduce department exchange and role swift programme: Take one department employees and put them in the another department with assistance for one month or two. Like: Take some of the finance folks and put them into marketing with their willingness. This will help them to embrace new reality and principles, make more connection.
(1.3) Inter networking event, the Medici effect. Set up get to gather where different people (from your organizations across the border) comes in contacts they share ideas.
(1.4) Make infrastructure: Design special rooms like Thinking rooms, Dreaming rooms where people frequently visit to think and dream. Make thinking room as all white, walls celling doors everything white and put the black writing there which is the topic of think. People need to go there lock themselves in for 10 or 20 minutes with focus on one thing to think. Make the board rooms of innovative companies. Example : make room that likes Apple board room and people go there put the cap as Apple logo and do everything as if they are Apple people. Now think like Apple. This helps.
(1.5) Stretch with structural tension: Holding two pictures side-by-side in our mind at the same time (A vision of the future reality and a clear picture of the current reality before us.) will generate a force within ourselves called "structural tension". Tension by its nature, seeks resolution, and the most natural resolution of this tension is for our reality to move closer to what we want. So use this for solving the trade-offs and finding new ways to meet goals.
(2) Getting Resources to Experiment: The goal here is to reach from mind to market faster. and not letting the men and monopsony come in between.
Ideas for exploding the experimentations
(2.1) One day prototype competition: every month put a competition in which we invite people to make prototype of an idea and compete with other in friendly way. Have a good prize so many people want to be in.
(2.2) Create the groups of innovation freaks: How the Pc was invented by the efforts of Homebrew Computer Club where all the computer hobbyist met regularly. And have chance to present their idea with prototype and let the people judge it, improve it and build upon it. So you can start similar thing in our organizations.
(2.3) Money in the bank: this is the WWE concept where if you win the money in the bank title you have the power to challenge the WWE winner anytime, anywhere. So reflecting on this develop something like any moment in a year its been announced for in a week or day if anybody can come up with an worthy idea and prototype will get big money as bonus.
(3) For accountability:In organizations innovation activities treated as the optional not the primary like language subjects in high schools where much focus on maths and science subjects. But if you redefine and humanize with culture on above principles or values then accountability is the obvious thing. Now it is not the question of do or don’t but how much and how better.
Managers should be accountable for the how many people actively sign up for innovation initiatives, keep them engaged and motivated, identification of next innovator star, completion their projects and finding more usefulness of their projects in terms of financial like how their findings has saved time, money efforts or how they have created value or build the foundation for next big thing.
Ideas for holding everybody more accountable.
(3.1) Play now and get paid later: For accountability for long term and follow up. Start something that if you start today get 50% reward and 50% reward with bonus will be credited next quarter. Same way with the innovation. Giving extra for long term increase the follow ups the started initiatives.
(3.2) Quantity bonus for managers: Put bonus on how many extra ideas or prototypes have been completed by the help and commitment of the managers for employees.
(3.3) Engaging score : bonus for managers for their efforts for making more people interested and engaged in innovation initiatives.
(3.4) Open declaration by individuals and managers for goal: publically declaring goals for innovations for everybody in true spirit will help to be more accountable.
(4) Reward and compensations: When it comes to rewards and compensations, very often in organizations the primary type is financial. This just appeal to Creative people but not drive them to the next level and keep them up. Creative people are right brain personalities. And they respond more to the recognition than money alone. For them reward is the result of their action not the reason for their action. So my point here is to make recognition the big part of reward along with money.
Ideas to make innovation the part of the reward system.
(4.1) Offer partnerships and royalties for innovation: offering not only the stock options but partnerships into new venture in what they invented. Bypass royalties of small percentages of products and services.
(4.2) Recognize the next innovator star: Organize success seminars when somebody has innovated and change the game.
(4.3) Credit them with like golden plated in headquarters: with every new product super-success, pup their name in the golden plate in headquarters and relevant office in way that people want that kind of recognition as being innovative.
(4.4) Create Innoward: create reward or compensation plan with different levels. From top to bottom Like 3% bonus on these things and 6% on these many so on the Silver Achiever, Golden Achievers.
(4.4) Minimize the efforts and level for recognition. Recognize people for small efforts and small successes on small scale and give chance to share their story. In many cases. Many times all organizations do these but they have set the level high like the winner and finalists will be recognized but what if we can deploy that on micro scale like on department level. If you do something innovative that’s really interesting or promising you get recognition. That’s keeps the mojo of innovator going.
Synchronization of everything:
IPL: Innovation Premier League : the core idea behind this is to take different people who have specific skills like programmer, designer, financer planer etc and make a team, find or take challenging issues, work for month or less and find out the best solution. Several teams are in competition with each other as real sport Leagues.
There are many ideas and we can come up with many but choosing the relevant ones is the most important. In any culture we not only need to work on what to do but on stop doing. So here is our agenda figure out What to do, Stop Doing and Start Working.
For implementing Innovation 2.0 in your organizations start with clarity about redefinition and humanization as Cause(that include purpose and principles, philosophies) and Culture to serve cause(that include people practices and processes) based on 3D (Decentralization , Democratization and Disruption)
First let me describe the model so you get the idea.
Set the website and App about innovation. It is open to all. Where all employees stay inter connected and also connect with customers. Every employee can post about their innovation goals on online, what experiments they are working on, what are their findings. Instead of filling direct report daily, everybody is advised to use video or audio blog with fix online table simply describing what should be they doing like their core steps. All employee professional profiles are accessible for everybody from bottom to top. This profile include their skills, experience, current projects, honours and accomplishments. By doing that for innovation any employee can ask anybody for opinion or collaborate across the border, recommend anyone etc. By doing that just imagine how fast we can come up with new ideas for products. Now for outsiders (customers and others) not everything is accessible it depends but they can comment, collaborate and take part whenever it’s right. For accountability think how anyone was helpful or useful. Everything is depend on employee ratings including top people and CEO. Get paid like real entrepreneurs. Example if somebody helped anyone to develop his idea to the next level. Then based on his contribution, employees rate him. By rating he qualify for immediate cash. But the idea got further and become big than he will be offered the company partnership or profit option from that idea.
(Employee Rating: every employee in the organizations has power to rate with +1 point. For any idea 100 points is minimum. 100 points = 2 stars, 200 points= 3 star, 500 points= 4 star and 500+= 5 star. If your company is less than 500 then increase the point per employee.
Now cash bonus
100 point= 100$
200 point= 300$
500 point= 400$
500+ point= 500$
After any idea get further and create revenue then bonus is given like if the generate
10,000$ to 100,000$ then 3% of net profit.
100,000$ to 300,000$= 6%
300.000$ to 1millionS= 10%
1 to 10 million$=12%
10million$ + =15%
This is the raw form and you can customize it by developing and perfecting it for your organization.)
Now about capital, set your experimental budget as company which should be separate from R&D budget. Like 10% of gross revenue. Then distribute amongst all the middle and lower level of the organizations as per their designation and employee ratings for innovation. Employee ratings are the rating by all the employee based on your skills, accomplishments, experience regarding innovation. Like if the fellow is manager but he has less rating for innovation he gets low voucher. These budget allocated every year. This can be flexible like credit card system. We get that limit of experimental capital without any permission with simple approval and validation from our manger and peers but honestly we have to submit all the proofs expense. Every time we fail your limit goes 10% down. But after each failure that employee go through self-evaluating process in which he judge himself by what went wrong, what was difficult for him etc and based on that we can provide help in terms of tools, training coaching. So odds get better for him to come up with really innovative ideas. When somebody need big capital to experiment then and only then we need to ask permission from top. In that case we can collaborate with peers and use their credits.
The everyday working picture for every individual from innovation point of view.
What should everybody doing on every day and monthly basis (besides your job). It may be different for everybody but here are things we should consider
Your everyday basics, that include accumulation of different questions about customers, our practices etc same as unique observations, crowdsourcing your ideas by networking (by connecting with your redefinition of work)
Reflect and think on your work for at least half an hour.(Gather better questions, make unique observations, take different people opinions and based on all these associate and apply one good things in another and design better experiments. Share your daily activities regarding your questions, observations, connections and experimentations.)
In the end of week, meet for 2 hour in which every body think, share and present their ideas. For meeting invite all the important people also via skype. But not more than 25 people. Let the experience person be the host. Divide meeting in 3 parts Idea Share, Story Share and Debate and decide. Start by giving opportunity to quick share their ideas in 5 to 10 min. If somebody has only questions or observations or new experiments then for 15 to 20 min the host will be sharing them by names(who is the innovator or come up with this). In the second part share the results or success of any ideas and story behind those success of the ideas. Every participants comes with the homework and they can take help of host or any other experienced people and share this online.In the end decide the next meeting now switch the host that everybody gets chance and gets better.
(1) Create and run 3 experiments for the month(In the third part of meeting debate and decide which 3 experiments we are going to do this month as the team. Who should be doing what).
(2) Create 3 success moment to achieve for us as the team for the month(Making sure there is at least 3 things that get good response or progressed or achievement, which is worth to celebrate).
(3) Make strategy to accelerate 20% everything.
(4) Rethink on our strategies, improvement and correction.
First crowdsource and get inputs for redefinition ( specific or custom) made for your organizations(For that adopt meeting planning from Practical Impact section).
Then based on the new principle or values( which foster and amplify innovation for everybody) set right culture to Humanize.
In culture add all the components like skills for idea generation to reward. Implement and experiment few ideas for that. (given in solution section)
For working read Practical Impect section to get your version to get started.
In the End I have the Dream that organizations as the most powerful component of society and social innovation will become the nurturing institutions for individuals which help them to self-realize, self-actualize who they really are. Organizations create such an environment that everybody treats company like not just a community but extended family. Organizations become so humane that creativity and innovation will not only become the natural act but the subconscious behaviour for people. And unleash their creativity, passion and imaginations to make them much more useful to contribute for greater cause so that it become the highest self-fulfilment for them to make the world the best place to live.
Credit goes to my family, friends and the thinkers from Gary Hamel, Jim Collins, Dr Tony Alessandra, Jim Cathcart, Clayton M. Christensen ,Jeff Dyer and Hal Gregersen. And last all the customers and organizations with whom I worked with and working.
Books
Acorn Principle by Jim Cathcart
The Platinum Rule by Dr Tony Alessandra
Good to Great, Build to Last by Jim Collins
The Future of Management and What Matters Now by Gary Hamel
The Innovation DNA by Clayton M. Christensen ,Jeff Dyer and Hal Gregersen.
Early Interview videos of Steve Jobs, Herb Kelleher
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