Business strategy needs a vision, and the first ingredient is imagination.
A mental picture of a desired future situation motivates people much more than does a carefully worded vision statement. If people can “see” what they are trying to achieve, it brings the business vision alive for them.
Imagination (sometimes called “the mind’s eye”) is “the ability to form images and ideas in the mind, especially of things never seen or experienced directly”.
To come up with an aspirational vision for the business, you need to project yourself into the future, take a quantum leap, and see beyond the incremental options of extending, adding-onto or tweaking what already exists.
Some people are more imaginative than others, probably because they permit themselves to be. Some people see themselves as “unimaginative”. Sometimes imagination is denigrated using phrases such as “that’s fanciful”, “completely unrealistic”, “you’re dreaming”, and “she has an overactive imagination”. Sharing an imagined new future requires courage, and the knowledge that there is likely to be some resistance.
There are three skills needed here:
1. Being able to visualize an alternative future, and
2. Being able to describe to others what you see, and
3. Being able to listen to what others are imagining, whilst suspending judgment.
Even thinking about a future very different from the present can feel extremely audacious. Have you ever thought fleetingly about some possibility and then thought better of it, not even permitting yourself to develop the idea, let alone voice it to others?
To create a mental picture of your new future, speak to yourself as if you are already achieving it, e.g. “We are…” “We have…” rather than “We will…” or “We want to…”
Marketing pioneer Theodore Levitt said “Nothing drives progress like the imagination. The idea precedes the deed”. Let your imagination go to work for you.
Without imagination, you’re stuck in precedent.
Wednesday, December 1, 2010
Thursday, November 18, 2010
Vision - Strategy's Secret Sauce
Most strategic planning starts with a discussion of "What's your vision?" and that's the first place where people get stuck. Everyone gets frustrated with trying to "wordsmith" the perfect vision statement. I prefer to think of a business strategy having a "built-in" vision. I find that a vision tends to crystallize during the strategy discussion.
Why is vision important?
Strategy needs vision to give it life. Without vision you have no direction, and are stuck doing what you've always done. Without direction, you have no clarity about where you want to go and what you want your business to be.
Vision gives you focus. Without an understanding of your vision, your staff have no clarity about the organization's purpose or what they should be doing to achieve it. That's demotivating. Without a unified sense of purpose, performance suffers. There is a wastage and leakage of energy, rather than a sense of "pulling together".
Ambitious and energetic people like working in an organization that has a clear sense of direction. If the business seems to be drifting, they are likely to look elsewhere for a position where their contribution can have more impact.
I'm sure you've heard all this before.
It's very easy to say "We need a vision". So why is it so hard to have one? To have a vision, you need to be able to imagine something beyond the current reality; something you haven't seen before. It should be aspirational, rather than a statement of the current situation. A vision is not just an incremental step. Your vision might not currently be possible, but could be achievable over a given time-frame. It's important to have a unique pathway in mind.
To have a vision, you have to allow yourself to imagine something that doesn't presently exist. Author Jonathan Swift said "Vision is the art of seeing the invisible".
It's so nebulous, but so important.
Why is vision important?
Strategy needs vision to give it life. Without vision you have no direction, and are stuck doing what you've always done. Without direction, you have no clarity about where you want to go and what you want your business to be.
Vision gives you focus. Without an understanding of your vision, your staff have no clarity about the organization's purpose or what they should be doing to achieve it. That's demotivating. Without a unified sense of purpose, performance suffers. There is a wastage and leakage of energy, rather than a sense of "pulling together".
Ambitious and energetic people like working in an organization that has a clear sense of direction. If the business seems to be drifting, they are likely to look elsewhere for a position where their contribution can have more impact.
I'm sure you've heard all this before.
It's very easy to say "We need a vision". So why is it so hard to have one? To have a vision, you need to be able to imagine something beyond the current reality; something you haven't seen before. It should be aspirational, rather than a statement of the current situation. A vision is not just an incremental step. Your vision might not currently be possible, but could be achievable over a given time-frame. It's important to have a unique pathway in mind.
To have a vision, you have to allow yourself to imagine something that doesn't presently exist. Author Jonathan Swift said "Vision is the art of seeing the invisible".
It's so nebulous, but so important.
Sunday, November 7, 2010
Use what you've got, to get what you want!
Business strategy is your plan for achieving competitive advantage. It's your choice of how and where to compete.
Your business strategy is different from your marketing strategy (your plan for communicating what you offer to customers or clients).
Your business strategy sets the agenda for all your business activities. It establishes criteria for all your business decisions. And if you're going to innovate, it should be in pursuance of the business strategy.
Your business strategy should be unique. How do you get innovative with your business strategy?
Competitive advantage is achieved through:
your strategic assets and
how you choose to use them.
The equation is: What you have + how you use it = your competitive advantage.
In other words, "Use what you've got, to get what you want".
To get innovative with your strategy, get creative with both parts of the equation. Think more deeply about your strategic assets (these are usually intangible things) and reconceptualise the way you view them. Then consider how these can best be applied in ways that your customers or clients value.
Sounds easy? The hard part is to see beyond the current reality and to forge a unique path, rather than copying what others have done. What's required is vision, the art of seeing the invisible.
More on this next time.
Your business strategy is different from your marketing strategy (your plan for communicating what you offer to customers or clients).
Your business strategy sets the agenda for all your business activities. It establishes criteria for all your business decisions. And if you're going to innovate, it should be in pursuance of the business strategy.
Your business strategy should be unique. How do you get innovative with your business strategy?
Competitive advantage is achieved through:
your strategic assets and
how you choose to use them.
The equation is: What you have + how you use it = your competitive advantage.
In other words, "Use what you've got, to get what you want".
To get innovative with your strategy, get creative with both parts of the equation. Think more deeply about your strategic assets (these are usually intangible things) and reconceptualise the way you view them. Then consider how these can best be applied in ways that your customers or clients value.
Sounds easy? The hard part is to see beyond the current reality and to forge a unique path, rather than copying what others have done. What's required is vision, the art of seeing the invisible.
More on this next time.
Tuesday, August 24, 2010
Words, Actions, Reactions!
Leaders can easily stifle innovation without meaning to. Pay attention to the words you say, the things you do and the way you react to suggestions, ensuring that you always encourage innovative thinking.
Leaders create culture through the things they say and the way they behave. You may be a strong supporter of innovation, but to make people believe that, you must show it. People cannot read your mind; they can only observe you.
A law firm that I worked for merged with another firm. The first few weeks of the merger were difficult for the staff as they tried to adjust to the changes. Soon the resignations began, and I would find unhappy people complaining to each other in the bathroom. I called a lunchtime meeting of the staff solicitors to see if the problems could be sorted out. We made a list of the various problems, and for each problem suggested a solution. I took the list to the Managing Partner, who received the memo without comment. I waited to hear the partners' response. Weeks went by; we heard nothing, and no changes were made. There never was any response. From this experience, the staff learned that trying to bring about change was a futile exercise.
This manager probably did not mean to stifle innovation, but that was the effect of his inaction.
Innovation begins with belief. Your words, actions and reactions send messages to your staff as to your beliefs about innovation. Similarly, your words, actions and reactions can build belief amongst your staff that innovation is important and that their ideas are valued. To do this, make yourself accessible, approachable and responsive.
To build a culture, of innovation, both leaders and employees need to believe that a constant flow of new ideas is essential to business success, that thinking creatively is part of their job, and that there are many possibilities for a better future.
Leaders create culture through the things they say and the way they behave. You may be a strong supporter of innovation, but to make people believe that, you must show it. People cannot read your mind; they can only observe you.
A law firm that I worked for merged with another firm. The first few weeks of the merger were difficult for the staff as they tried to adjust to the changes. Soon the resignations began, and I would find unhappy people complaining to each other in the bathroom. I called a lunchtime meeting of the staff solicitors to see if the problems could be sorted out. We made a list of the various problems, and for each problem suggested a solution. I took the list to the Managing Partner, who received the memo without comment. I waited to hear the partners' response. Weeks went by; we heard nothing, and no changes were made. There never was any response. From this experience, the staff learned that trying to bring about change was a futile exercise.
This manager probably did not mean to stifle innovation, but that was the effect of his inaction.
Innovation begins with belief. Your words, actions and reactions send messages to your staff as to your beliefs about innovation. Similarly, your words, actions and reactions can build belief amongst your staff that innovation is important and that their ideas are valued. To do this, make yourself accessible, approachable and responsive.
To build a culture, of innovation, both leaders and employees need to believe that a constant flow of new ideas is essential to business success, that thinking creatively is part of their job, and that there are many possibilities for a better future.
Tuesday, July 27, 2010
Reward the Effort
Innovation depends on a constant flow of new ideas. Reward people for their effort, not just for ideas that turn out to be successful.
Many people believe that ideas are only of value if implemented, and that rewards should therefore go only to people whose ideas are successful. This approach is counter-productive, for several reasons:
1. It can be difficult to attribute a successful idea to any one person or even to a group. Many different skills may be required to put the idea into practice. And there is the risk that the wrong person may take the credit for the idea.
2. It is difficult to decide what is an appropriate reward for a successful idea. An idea may make or save the firm a lot of money. How should the value of an idea be quantified? How much should the inventor of the idea receive? A percentage, or a holiday, or a movie ticket? There is a lot of potential for perceived unfairness, resentment and demotivation.
3. It is the habit of contributing ideas that will produce more ideas in the future, so encourage the habit. To arrive at the idea that you will implement, you need a flow of ideas. So the ideas that formed that flow, even though not implemented, have great value in terms of the collective thinking process.
4. People who have an intrinsic interest in the issues are more likely to offer valuable ideas than those who are just looking for the rewards . If people are interested and challenged by their work and feel involved in the business, they will want to contribute to its success.
Thanking your team for their contributions and reminding them how much you value their help will make them want to help you more. Keeping them informed about what's happening in the business will keep them interested and build intrinsic motivation.
If you do want to offer specific rewards, you could hold an "idea lottery", where you give tickets to people who offer ideas and at the end of the process draw a ticket for a small prize. Or bring special food to the meeting where ideas are to be generated. Bigger rewards generally don't lead to more or better ideas.
Many people believe that ideas are only of value if implemented, and that rewards should therefore go only to people whose ideas are successful. This approach is counter-productive, for several reasons:
1. It can be difficult to attribute a successful idea to any one person or even to a group. Many different skills may be required to put the idea into practice. And there is the risk that the wrong person may take the credit for the idea.
2. It is difficult to decide what is an appropriate reward for a successful idea. An idea may make or save the firm a lot of money. How should the value of an idea be quantified? How much should the inventor of the idea receive? A percentage, or a holiday, or a movie ticket? There is a lot of potential for perceived unfairness, resentment and demotivation.
3. It is the habit of contributing ideas that will produce more ideas in the future, so encourage the habit. To arrive at the idea that you will implement, you need a flow of ideas. So the ideas that formed that flow, even though not implemented, have great value in terms of the collective thinking process.
4. People who have an intrinsic interest in the issues are more likely to offer valuable ideas than those who are just looking for the rewards . If people are interested and challenged by their work and feel involved in the business, they will want to contribute to its success.
Thanking your team for their contributions and reminding them how much you value their help will make them want to help you more. Keeping them informed about what's happening in the business will keep them interested and build intrinsic motivation.
If you do want to offer specific rewards, you could hold an "idea lottery", where you give tickets to people who offer ideas and at the end of the process draw a ticket for a small prize. Or bring special food to the meeting where ideas are to be generated. Bigger rewards generally don't lead to more or better ideas.
Sunday, July 18, 2010
Value Uniqueness
We are all the product of our own individual upbringing, education and experiences. Each person has something unique to contribute to the innovation process. Understand what each person has to offer; encourage and harness diversity at work
When recruiting staff, there is an emphasis on "cultural fit". We like to hire people who are similar to us, and we may avoid people who seem a bit "quirky". But innovation benefits from all kinds of diversity. People with similar backgrounds often think similarly. Diversity is not confined to gender and race. A diverse range of personalities and perspectives is an advantage when trying to break free of conventional thinking. Make sure your culture does not become too homogenous.
Some people naturally see opportunities and find it easy and enjoyable to think laterally. Others are more likely to tell you why the ideas won't work. Both approaches are necessary, but not at the same time. People who seem to take a negative approach could be very valuable when it comes to evaluating ideas and managing risk. But when you are trying to generate a range of new ideas, these people may not be the best ones to have in the room.
Know the strengths of your people and use their skills in the most effective way.
When recruiting staff, there is an emphasis on "cultural fit". We like to hire people who are similar to us, and we may avoid people who seem a bit "quirky". But innovation benefits from all kinds of diversity. People with similar backgrounds often think similarly. Diversity is not confined to gender and race. A diverse range of personalities and perspectives is an advantage when trying to break free of conventional thinking. Make sure your culture does not become too homogenous.
Some people naturally see opportunities and find it easy and enjoyable to think laterally. Others are more likely to tell you why the ideas won't work. Both approaches are necessary, but not at the same time. People who seem to take a negative approach could be very valuable when it comes to evaluating ideas and managing risk. But when you are trying to generate a range of new ideas, these people may not be the best ones to have in the room.
Know the strengths of your people and use their skills in the most effective way.
Sunday, July 4, 2010
Demand Funny Ideas
Most creative breakthroughs begin with ideas that sound odd at first. People put forward conventional, safe, serious ideas because they think that is what is expected of them at work. Leaders have to make their expectations clear.
I sent a brochure about a marketing seminar to a manager I knew. I'd seen this presentation and it was directly relevant to his industry, so I was confident in recommending it. A week later I happened to see the manager, and asked if he was going to send any of his people to the seminar. He said no, he wasn't. Curious, I asked why not. I thought he would say that they were all too busy to go, or that they had no budget left. His response was revealing. He said "They might come back with some funny ideas".
Why did this manager feel threatened by "funny ideas"? That's where great ideas are found. His firm employs very bright, educated people who are trained to think for themselves. Why wouldn't he expose them to new approaches to marketing? He wanted them to do it his way. He felt the need for control.
There is a tension between traditional management (which is about control), and leading for innovation (which is about freedom). Managers will say they want new ideas, but often they are just paying lip service.
People look to the leader for clues as to the "right" way to behave. They offer "safe" ideas which they think will gain the approval of others. Ask them instead to "be creative" with their suggestions. Research shows that people are more likely to produce unusual, useful ideas if they are given instructions to be creative, than if they are asked, for example, to "do their best"*. Asking them to be creative focuses their attention on being creative (rather than, say, pragmatic, or quick).
Funny ideas are fuel for the cauldron of innovation.
I sent a brochure about a marketing seminar to a manager I knew. I'd seen this presentation and it was directly relevant to his industry, so I was confident in recommending it. A week later I happened to see the manager, and asked if he was going to send any of his people to the seminar. He said no, he wasn't. Curious, I asked why not. I thought he would say that they were all too busy to go, or that they had no budget left. His response was revealing. He said "They might come back with some funny ideas".
Why did this manager feel threatened by "funny ideas"? That's where great ideas are found. His firm employs very bright, educated people who are trained to think for themselves. Why wouldn't he expose them to new approaches to marketing? He wanted them to do it his way. He felt the need for control.
There is a tension between traditional management (which is about control), and leading for innovation (which is about freedom). Managers will say they want new ideas, but often they are just paying lip service.
People look to the leader for clues as to the "right" way to behave. They offer "safe" ideas which they think will gain the approval of others. Ask them instead to "be creative" with their suggestions. Research shows that people are more likely to produce unusual, useful ideas if they are given instructions to be creative, than if they are asked, for example, to "do their best"*. Asking them to be creative focuses their attention on being creative (rather than, say, pragmatic, or quick).
Funny ideas are fuel for the cauldron of innovation.
Tuesday, June 1, 2010
Seek many answers!
When you ask a question, the first answer is likely to be something that your competitors have also thought of. Generate a range of possibilities to consider.
The twice-Nobel Prize winner Linus Pauling said "To have a good idea, you first need to have a lot of ideas."
When you ask a question, people may think it is a test, or that there is one correct answer. Make it clear that you do not know the answer, and are looking for a whole range of answers. You need to preface your question with a "signal" that you are exploring the possibilities. For example, "I don't know what the answer to this question might be, but I think it's a way of getting us thinking differently about this issue…."
To increase the number of ideas generated, set a target number to be achieved. Ask for twenty ways to solve the challenge - this shows that you are serious about exploring the question. The first ten ideas are difficult to think of, but after that, people start to get more creative, and the ideas get more interesting. More people participate, and ideas are less likely to be dismissed, because they are needed in order to meet the target.
The twice-Nobel Prize winner Linus Pauling said "To have a good idea, you first need to have a lot of ideas."
When you ask a question, people may think it is a test, or that there is one correct answer. Make it clear that you do not know the answer, and are looking for a whole range of answers. You need to preface your question with a "signal" that you are exploring the possibilities. For example, "I don't know what the answer to this question might be, but I think it's a way of getting us thinking differently about this issue…."
To increase the number of ideas generated, set a target number to be achieved. Ask for twenty ways to solve the challenge - this shows that you are serious about exploring the question. The first ten ideas are difficult to think of, but after that, people start to get more creative, and the ideas get more interesting. More people participate, and ideas are less likely to be dismissed, because they are needed in order to meet the target.
Wednesday, May 19, 2010
Not a Solo Sport
Don't expect individuals to come up with fully-fledged, ground-breaking ideas on their own. Provide opportunities for people to spend time together and combine their thinking.
If you expect individuals to present their ideas to you in the form of a business case, fully developed, costed and ready to go, you will not receive very many ideas, and the ones you do receive will not be particularly innovative.
I was asked to judge an innovation competition run by a law firm. The firm offered generous prizes such as cash and travel, and allowed the staff to take time off work to write their submissions. Although the applications were well-written, the suggestions were very disappointing in their lack of creativity. For example, one suggestion was "Hold a cocktail party for accountants". Not very imaginative. Competing as individuals for valuable rewards, the lawyers played it safe. They offered ideas that they knew had been successful elsewhere. But you don't get competitive advantage by copying what others have done.
People who are good at developing a business case are not always the ones with the most innovative ideas. These are different skills, so you need a team effort.
Collective thinking is more powerful than an individual effort. Provide opportunities for people to share their thinking and build ideas collaboratively.
If you expect individuals to present their ideas to you in the form of a business case, fully developed, costed and ready to go, you will not receive very many ideas, and the ones you do receive will not be particularly innovative.
I was asked to judge an innovation competition run by a law firm. The firm offered generous prizes such as cash and travel, and allowed the staff to take time off work to write their submissions. Although the applications were well-written, the suggestions were very disappointing in their lack of creativity. For example, one suggestion was "Hold a cocktail party for accountants". Not very imaginative. Competing as individuals for valuable rewards, the lawyers played it safe. They offered ideas that they knew had been successful elsewhere. But you don't get competitive advantage by copying what others have done.
People who are good at developing a business case are not always the ones with the most innovative ideas. These are different skills, so you need a team effort.
Collective thinking is more powerful than an individual effort. Provide opportunities for people to share their thinking and build ideas collaboratively.
Wednesday, May 5, 2010
Keep them Wondering
Don't always be the one asking the questions. Encourage others in your team to exercise and express their curiosity by proposing their own questions for discussion.
Your decision as to where to focus your innovation effort can bring competitive advantage. To choose the best focus, you need a good flow of questions.
If you are the only person asking the questions, you limit the range of challenges that can be examined. Everyone has a different set of perceptions and experiences, and different people will see different areas where innovation could be applied.
Encourage your people to take notice of what is happening around them and their clients' needs, and to search actively for new problems or questions, rather than just reacting to the problems that present themselves.
Instead of rewarding the "best idea", try rewarding the "best question".
Your decision as to where to focus your innovation effort can bring competitive advantage. To choose the best focus, you need a good flow of questions.
If you are the only person asking the questions, you limit the range of challenges that can be examined. Everyone has a different set of perceptions and experiences, and different people will see different areas where innovation could be applied.
Encourage your people to take notice of what is happening around them and their clients' needs, and to search actively for new problems or questions, rather than just reacting to the problems that present themselves.
Instead of rewarding the "best idea", try rewarding the "best question".
Sunday, April 18, 2010
Embrace Ignorance
Ideas come from curiosity. Admitting that you don't know all the answers, and encouraging others to do likewise, leads everyone to explore new possibilities.
Steven Covey, in his book The Seven Habits of Highly Effective People, offers a "Time Management Matrix" in which activities are classified as "urgent" or "non-urgent" and "important" or "not important". He makes the point that our time is usually taken up with "urgent" things that clamour for our attention. To get ahead, we need to make time for the things that are "non-urgent" but "important".
It's easy to get bogged down in attending to reactive, "fire-fighting" activities. Innovation is never urgent until there is a crisis, and then suddenly it becomes a matter of survival.
Innovating is pioneering. We enter new territory where we do not know all the answers; where there is no precedent for what we should do next. We have to be willing to admit our ignorance and generate a lot of new possibilities.
Admitting ignorance takes courage, because traditionally, leaders are supposed to know the answers. Be willing to ask "naïve" questions. Make it clear that you intend these questions as a catalyst for creative thinking. There is a competitive edge to be gained in your choice of business challenge. Focus your attention on something that others think they know and take for granted.
Accept that when it comes to new ideas, you won't know if they will work, until you try. Set up an experiment or pilot program. If you don't get the results you want, don't just give up; just change the conditions of the experiment. The risk of being wrong brings with it the chance of being right, and profitable!
Steven Covey, in his book The Seven Habits of Highly Effective People, offers a "Time Management Matrix" in which activities are classified as "urgent" or "non-urgent" and "important" or "not important". He makes the point that our time is usually taken up with "urgent" things that clamour for our attention. To get ahead, we need to make time for the things that are "non-urgent" but "important".
It's easy to get bogged down in attending to reactive, "fire-fighting" activities. Innovation is never urgent until there is a crisis, and then suddenly it becomes a matter of survival.
Innovating is pioneering. We enter new territory where we do not know all the answers; where there is no precedent for what we should do next. We have to be willing to admit our ignorance and generate a lot of new possibilities.
Admitting ignorance takes courage, because traditionally, leaders are supposed to know the answers. Be willing to ask "naïve" questions. Make it clear that you intend these questions as a catalyst for creative thinking. There is a competitive edge to be gained in your choice of business challenge. Focus your attention on something that others think they know and take for granted.
Accept that when it comes to new ideas, you won't know if they will work, until you try. Set up an experiment or pilot program. If you don't get the results you want, don't just give up; just change the conditions of the experiment. The risk of being wrong brings with it the chance of being right, and profitable!
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