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.

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.

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.

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.

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.

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".

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!