In meeting the challenge of encouraging the risk-taking mindset that is at the core of innovation I have noted that one effective way to do that is to work backward. When you look at an innovative organization what do you see - not so much what are the products or services it produces, but what are its essential characteristics. They are:
Awareness
Intense Motivation
High Skilled People
A Supportive Infrastructure
The first of these four is the most illusive. Awareness doesn’t mean being conversant with the latest tools, techniques and technologies. It is a characteristic that can only be built into an organization’s way of life with dedicated attention by management at all levels.
We think of people with the awareness that allows them to take novel approaches to a business opportunity or meeting a challenge as being intuitive. In my book The Eye for Innovation I relate two stories as an introduction to this topic these are those stories:
Bob Perkins was a designer in the early days of Control Data Corporation who had the responsibility for devising input-output equipment for its early computers. One necessary input-output mechanism was the ability to read and produce punched cards. Not technologically sophisticated, but at the time crucial to overall system performance. These are Bob’s words, “I went down to Chicago, stuck my head into what was left of an old player piano company, and learned how to do a real cheap pneumatic read.” Awareness. Ideas and innovations arise from people’s special connections with the world around them.
Without question the semiconductor ranks among those inventions with the most far-reaching consequences in human history. As an innovator, Seymour Cray did not invent the semi-conductor, but he was aware of the possibilities it offered. He was able to perceive geometric configurations of them that would result in the highest performance computers. Seymour is a powerful example of awareness. He was driven by a feeling for, and a deep-seated caring about, difficult problems that needed to be solved and, in turn, was intensely attentive to technologies he might find useful in designing computers of the highest possible performance. In people such as Bob Perkins and Seymour Cray, there is an innate curiosity about problem solving that heightens their awareness of the possibilities for problem resolution.
It is a considerable leap, however, from a few innovative individuals to an organization that is similarly attuned. In nearly every organization one may find a creative individual. That does not make the company highly innovative. It is a corporate culture of awareness that is the basic building block of creative energy. This characteristic of awareness can be learned, and, with practice, it can be honed to rewarding sharpness. Most of us will never design a supercomputer, but each of us can know the satisfaction of innovation, of devising a novel solution to the oft-felt dilemma, “There’s gotta be a better way.” Mostly we learn this skill through experience and practice. That’s not surprising. What is surprising is how few organizations know how to challenge employees and give them the opportunity to learn and practice that skill. Of all managerial inanities none is more regrettable than to deprive people of the opportunity to learn and exercise caring curiosity--the single most important skill to corporate health and renewal.
This caring curiosity - awareness - can be engendered in many ways, some seemingly somewhat mundane, some of major strategic importance to the company. In the more routine category, consider TQM. A vast amount of information has been produced on the Total Quality Management (TQM) movement, which, under the prodding and leadership of W. Edwards Deming, found its way into management practice globally. The thrust toward total quality resulted in such nationally accepted programs as the Baldrige National Quality Program. TQM, however, is notably absent in the literature on innovation. This is unfortunate and reflects a mistakenly limited view of TQM, as well as the general mysticism that surrounds innovation. TQM tends to suffer from the incremental perspective that “continuous improvement” imposes. It suffers even more from the idea of minimizing variations from the norm, or from the product specification. The result is that TQM is associated with operational effectiveness only and has little to do with the creation of new things--new products, new services. Actually TQM can be a training ground for innovative thinking.
At Control Data TQM was approached within a cohesive innovative culture. In introducing the practice of TQM into Control Data, I stated this as the guiding principle:
"Control Data wants each employee to believe two things:
What I think and do matters to Control Data’s success.
Always think and act on the statement, ‘There’s gotta be a better way!'”
At the level of strategic importance there is the matter of technological collaboration. Executives who are capable of good strategic management have a clear cut idea of the distinction between those technologies, that is know how, that they must have just to be in the competitive game and that technology, that know how, that will give them a distinct competitive advantage. The former can be thought of as “necessary,” the latter as “sufficient” to win the competitive battle. One of the ways necessary technologies can be obtained is through collaboration with another company (or companies).
Being aware of how others are attempting to use any given technology to meet their product or service goals is inherently eye-opening. To empathize with another person, to see the world as that individual does, requires a much deeper understanding than what simply knowing about their circumstances can offer. It requires solving a different set of problems with, more than likely, a different set of resources. In short, it stimulates innovation by stimulating an awareness that there are new and different ways to look at and solve problems.
An example of collaboration at work in wind generation: before utilities can integrate wind generation on a large scale its effects on the grid must be accurately modeled. Wind generator manufacturers historically spent significant resources to create proprietary models. They looked upon this technology, i.e. the models, as offering competitive advantage in marketing their generators; the models were a “sufficient” technology. For the utilities however they were merely something they had to have as part of building a total electricity generating system; the models were a “necessary” technology.
Abraham Ellis is an engineer at PNM Resources, a mid-size utility holding company in New Mexico and Texas, and a member of the Western Electricity Coordinating Council (WECC). Abraham became a member of WECC’s modeling and validation work group. His view was that the lack of accessible models was hurting all parties, suppliers, utilities and ultimately, of course, the customers. He naturally encountered skepticism from wind generator manufacturers. There had been previous attempts at collaboration that had failed. But Abraham persisted, marshaled support from the American Wind Energy Association, National Laboratories, and the Dept. Of Energy and transmission providers. Finally he won commitment from the wind generator manufacturers.
A collaboration modeling group was established. The result is models that are becoming industry standards. Everyone benefits including the manufacturers. Abraham says, “Manufacturers will no longer need to pay a consultant to revise a model every time they change a resistor. Interestingly, we [the utilities] don’t need that level of detail, yet the manufacturers’ former insistence on [that kind of] specifically why what makes their models proprietary.”
One more example then of how technologically collaboration can provide both innovation and increased awareness of technological possibility.
There are still other ways to provide people with the opportunity to learn and exercise caring curiosity and to increase their awareness of problem solving opportunities. One example of this is the problem of increasing the healthcare costs that companies face. This is not a new problem. Poor health and physical sluggishness have long been recognized as major factors in poor employee productivity, as well as increased medical costs to employers and employees. By the 1970s some companies were offering exercise and fitness facilities to their employees. My company, Control Data, conceived a much more holistic wellness program that encompassed diet, lifestyle, stress reduction, safe practices at home and while traveling and smoking cessation in addition to exercise and physical fitness. It was called Staywell.
At its core this program involved improved information technology, especially wellness training and education. That was Control Data’s kind of business. Internal necessity was turned into external business opportunity. The result was a new business that grew and prospered and ultimately was spun off as a separate company. Those who participated in this process not only became aware of new problems and developed greater problem-solving, that is innovative expertise, many of them developed entrepreneurial expertise as well.
Awareness is cultivated in many ways. Providing these opportunities is a matter of executive mindset and leadership. Whether TQM is viewed as just a necessary part of everyday operation or in addition to that as a way to increase awareness, whether dealing with rising healthcare costs is viewed as a burden or an opportunity to increase awareness and creativity, is up to the leaders. Those leaders who understand that awareness results from practice, practice, practice, will seize such opportunities for their people. That’s the way they walk the talk.
In some employees it will blossom into new products or new businesses, but it is a fact of life that all of us are surrounded by problems that can benefit from attention . . . if only we’d give it. It is a matter of training minds to think in new ways and to recognize possibilities amid everyday experiences and observations.
Almost inseparable from an organization that exhibits awareness - this characteristic of a seemingly extraordinary intuitive ability to find novel ways to do things - is a characteristic of truly motivated, intensely motivated people. I’ll come back to that point in a future posting.