Archive for organizational fatigue

Spill Cam View

Spill Cam View

While many US citizens are tempted to make political points from the problems we’re facing in the Gulf, there are some basic organizational issues that transcend political parties and get at one of the basic problems in responding to unexpected changes. The problem is bureaucracy and the myriad of personal and departmental incentives that are naturally NOT aligned with the needs of the larger organization (in this case, the nation). The fundamental problem with bureaucracy in both large companies and governments is that there are many disincentives for individuals and groups to do what is right for the larger organization. Each bureaucrat fears future punishment if standard rules and procedures are not followed. If a Coast Guard officer backs down from meticulous safety requirements to be imposed on other vessel and, say, allows an oil cleanup rig to go into service without adequate fire extinguishers, a career might be ruined if fire breaks on that vessel. There are no rewards for being flexible and terrible risks for backing down from the letter of the law, or rather, from the millions of letters in the thousands of pages of rules, procedures, and protocols.

The problem in large organizations, and the US federal government is pretty much the world’s largest, is that numerous entities have their own turf and their own advancement in mind, and without special efforts being taken will naturally work in ways that cause conflict and delay. Leaders must carefully work to align these interests and incentives toward organizational objectives, but this can be almost impossible when an organization gets out of control. Adding a new committee or bureaucracy in addition to everything else will rarely be the most effective path forward. Meanwhile, those who may have the answer and want to bring their expertise to the table find themselves discouraged, worn down, ignored, and ultimately punished for their passion to innovate and help. Welcome to organizational innovation fatigue, and welcome to the Gulf Coast disaster.

Several voices have discussed the need for innovation in dealing with the disastrous oil leak in the Gulf Coast. There are so many intriguing opportunities for technology–oil absorbent materials, new chemistries for dispersing or attacking the oil, controlled burnoffs, skimming and oil collection systems, barrier technologies to keep the oil away, materials that coagulate oil, and a host of proposed technical solutions for addressing the root cause and stopping the leak. Many of the proposals should be considered and tried. This is not the time for bureaucracy. This is not the time for the government to be shutting down efforts with its bureaucracy. If the Coast Guard is worried about inadequate fire extinguishers, round up a batch and take them over to the relief effort to help, not hinder the State of Louisiana as it tries to protect itself. But what the Coast Guard did in this case is akin to what happens thousands of times each day in companies and government around the world, contributing to the innovation fatigue that stymies much needed efforts at innovation and progress.

The V16 Separator of Ocean Therapy Solutions

The V16 Separator of Ocean Therapy Solutions

There are some bright spots of innovation amidst all this mess. Kevin Costner of Hollywood fame has been developing a company with patented technologies for cleaning oil-contaminated water. Ocean Therapy Solutions (http://ots.org) represents a case of successful technology transfer that began in the US Dept. of Energy and some national labs. The technology has now emerged as clever centrifugal separators that split a contaminated stream into highly separated water and oil-rich streams. Portable units mounted on boats can go into contaminated waters and process large quantities of ocean water, recovering oil and returning much cleaner water to the ocean. Their website includes a couple of interesting videos, including one of Kevin testifying before Congress. The system has received relatively little interest for the past decade and the factory has been dormant, but now awareness is rapidly increasing and BP is deploying some of these units for use in the Gulf. A single unit can process 200 gallons per minute or more.

Kudos to Kevin and his team! He certainly has an advantage with his name recognition and extensive networks–without that, he may have been viewed as just another voice in the wind claiming to have something. There are others with technologies and potential solutions. May they also find their way to make a difference. May all the innovation fatigue factors remain far from Kevin Costner and all others seeking to bring something new to help us fix the Gulf Coast disaster.

The Matter-Energy of the Cosmos is Mostly Dark Matter and Dark Energy

The Matter-Energy of the Cosmos is Mostly Dark Matter and Dark Energy

In recent years, scientists have been astounded to discover that the visible universe represents just a tiny fraction of the matter and energy that governs the cosmos. Based on the motion of stars and galaxies, strange “dark matter” must be present, increasing the gravitational tug on celestial bodies more than can be accounted for by visible matter. Further, based on the surprising discovered that the universe is expanding, not contracting under its own gravitational pull as expected, scientists have proposed that a strange, repulsive “dark energy” fills the cosmos countering gravity. The combined effect of these unseen entities, dark energy and dark matter, are so great, that they account for 96% of the matter and energy of the universe. In other words, the visible universe that we used to think is all there is actually is only a tiny fraction of what is there. What we see in the “cosmic org chart” accounts for only 4% of what really influences the cosmos.

It’s that way in the business world. too. Companies can create tidy org charts and draft neat process maps to describe how they work, but the unseen reality outside the visible systems may be what really dominates operations. Increasingly, experts in knowledge management are learning that easily overlooked and often invisible intangibles can dominate corporate value and performance. Numerous intangible transactions may be essential to the success of a company, including casual information sharing between trusted friends, helpful exchanges of tips and best practices between employees or between external partners and internal employees, or loyalty that is gained when people are included in decision making. The invisible linkages and hard-to-observe exchanges in a company’s internal an external ecosystems may be the real engines of value creation, regardless of what is on a process map or workstream. By not understanding the value of such intangibles, corporations can easily break key linkages and crush subtle engines of value creation.

Many companies focus on their “value chains” – a term popularized by Michael Porter in his seminal 1985 work, Competitive Advantage. The value chain describes the linear chain of events as materials and products move from sourcing through manufacturing and out to the market. It is a highly useful paradigm for manufacturing and was highly applicable to much of the economy in the era when Porter was doing his research. But since that time, the explosion of the knowledge economy has changed the way we work and create value. One of my favorite authors, Verna Allee, a revolutionary expert in knowledge management, has detailed the move from the value chain to modern ecosystems and Value Networks in her book, The Future of Knowledge: Increasing Prosperity through Value Networks (Burlington, MA: Elsevier Science, 2003). Verna Allee and Associates have introduced a clever, methodical tool called Value Network Analysis for analyzing and visualizing the transactions of intangibles and tangibles that affect a business.

After my training in Value Network Analysis by Verna and her associate, Oliver Schwabe, an exciting new perspective on business and human behavior opened up. I have been highly impressed with the power of Value Network Analysis and the insights that it can rapidly deliver for a company. The Value Network Analysis work that Innovationedge has done as part of larger projects for some of our clients has been a very exciting part of my work since joining Cheryl Perkins’ exciting company. We value the tool enough that we had Verna Allee speak at the 2008 CoDev conference to introduce other business leaders to the basic concepts behind Value Network Analysis. I’m very pleased to see a community emerging of people using Value Network Analysis and developing exciting tools for it.

Here are some resources that you may find helpful in further exploring this area:

Part of the initial output in Value Network Analysis are maps, called “holomaps,” showing human entities as nodes and transactions of tangible or intangible items between them. There is much that can be learned from such holomaps – a topic for later discussion. For now I’ll show you two sample holomaps I created to illustrate simple ecosystems. One shows several external nodes around a manufacturer and the other shows some structure within part of a corporation. For simplicity, the maps lack all the labels explaining the transactions.

Holomap of an External Ecosystem

Holomap of an External Ecosystem

Holomap of an Internal Ecosystem

Holomap of an Internal Ecosystem

One interesting approach is to use the “holomaps” you get in Value Network Analysis as tools for “what if” scenarios to explore what new partners might do for your business model, or what new business models might do for your ecosystem. Using holomaps to explore innovation ecosystems is a particularly fruitful approach for those doing open innovation and wondering who should be in their external ecosystem.

We have further information on this topic that we’d be happy to share with you. It’s certainly something you should look at to understand how business really works.

Recently I spoke to a group of engineers, scientists and managers about the challenges of innovation fatigue within corporate R&D. I condensed that presentation down to just 14 minutes and have made it available using Pixetell.com, a nice system for recording a presentation.A short URL for the presentation is http://tinyurl.com/jlpres1.

Engineers and scientists are often puzzled by the decision-making processes in corporations, and sometimes get frustrated over the apparent blindness of others to see the potential of an invention or new product or process. Others, however, may see the opportunity through the “Lens of Risk” and find compelling reasons to be concerned. Understanding those other perspectives is one of the topics of this presentation.

Those managing R&D also need to understand the personal aspects of innovation and appreciate the tenuous “will to share” that keeps employees tied to the objectives of the corporation. When the will to share is broken, innovation can dry up quickly and silently, in spite of large budgets and enthusiastic efforts.

Is your innovation organization running on empty? Crushed, lacking creative juices? Time to add some fizz again with principles from the book, Conquering Innovation Fatigue. As part of the series on Magic and Innovation, today I’m using a simple effect to illustrate what can be achieved with an innovation organization.

Available on Youtube at http://www.youtube.com/watch?v=5JVr017KZBw.

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Innovation has often been killed by poor metrics, part of the innovation fatigue factor of flaws in judgment and vision. Poor metrics can include financial analysis that emphasizes short-term gains but overlooks the future. One way of illustrating the problem is with the “Apple Tree Analogy.” Imagine a fruit production company that is concerned with the rising costs of apple production and the poor efficiency of manpower at harvest time. A hot-shot expert steps in to shake things up and turn things around. Suddenly, executives in their distant offices see reports showing dramatic gains in the efficiency of harvesting (perhaps a measure of the time required to pick the fruit from a tree) and a sharp drop in harvesting costs such as expenses for ladders and labor. Wonderful news!

Harvest Efficiency: Sudden Huge Gains!

Harvest Efficiency: Sudden Huge Gains!

Harvest Costs Show Dramatic Drop!

Harvest Costs Show Dramatic Drop!

But what is the cause of the gains? If management is remote and not in tune with what is happening on the ground, they might rely on the metrics or key performance indicators to conclude that the business is healthier than ever and issue huge bonuses to the geniuses who transformed the apple business. In reality, the short-term gains might have come at a surprisingly high cost, namely, the future of the business, as shown below.

Real Reason for the Short-Term Gains Revealed

Real Reason for the Short-Term Gains Revealed


Sometimes dramatic cost-cutting efforts can lead to great short-term metrics and make a business seem healthy, when in fact, it is doomed by the very actions that gave it the short-term boost. Cutting down every apple tree in the orchard will greatly simplifying harvesting. No need for ladders at all! But the crops of the future have been wiped out.

Innovators in your company are the source of your future crops. Cutting innovation staff will always look attractive for the short-term, but can your future afford it?

Make sure you are using wise metrics in making decisions about innovation, research, and new product development. It’s a topic we address in Conquering Innovation Fatigue, and one of the important reasons why you and your team need to be familiar with this book.

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In dealing with many innovators and companies in our work at Innovationedge, we sometimes hear complaints about leaders who seem to be anti-innovation. You know, the kind who supposedly “wouldn’t touch innovation with a 10-foot pole.” Sometimes these leaders aren’t really anti-innovation, but anti-waste and especially pro-results. That’s not a bad thing!

Maybe their past experience with innovation showed little return and little direction. Maybe they were once talked into supporting misguided innovation adventures without the right strategy, controls and metrics. Maybe innovation waste came out of their pocket. These leaders sometimes can be reached and shown a better way such as the “Horn of Innovation” paradigm described in Conquering Innovation Fatigue for more productive, targeted innovation.

Once they understand what innovation can do when guided by the right strategy once they see what metrics make sense to gauge progress, they can become more comfortable with meaningful, targeted innovation. In fact, they can become some of the best champions of real innovation. Don’t give up on them. Reach out with our “ten-foot pole of innovation” and help them become converts to innovation that matters.

From YouTube.com/magicinnovation (Jeff Lindsay’s Magic Innovation channel): “Reaching Executives Who Wouldn’t Touch Innovation with a Ten-Foot Pole.” Recorded in Appleton, Wisconsin. All rights reserved.

This is video #5 in my series of “magic innovation” video lectures. OK, they’re a bit lame, and it’s not secret that I’m an amateur, but I hope you’ll learn something useful from some of them. Or have a bit of fun. And don’t forget, of course, to buy the book.

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A heavy-handed or micromanaging approach to handling a community of innovators in a corporation often has an unintended chilling effect that can put the freeze on innovation. Avoid this innovation fatigue factor by respecting your innovators, listening to them, and giving them the freedom to apply their talents within the constraints required for the project.

As we emphasize in our book, innovation takes place in the minds of individuals. Bonds of trust and mutual respect are essential to maintain the tenuous “will to share” that leads members of your innovation community to share their best thinking and their creative energy for the good of the corporation. Treating them with disrespect, as mere handymen or even children, in some cases, or imposing capricious or unfair changes upon them, or attempting to micromanage them, can break those bonds and leave them unengaged. If you don’t have their hearts, you don’t have their minds.

To increase your success with your innovation community, it’s time for you to tune in to the “Voice of the Innovator” and understand their issues, their thinking, and their needs. Success often begins with listening and healthy two-way communication. But just reaching in to stir things up and squeeze them with high-pressure tactics might create an ice-block in your innovation pipeline.

From YouTube.com/magicinnovation (Jeff Lindsay’s Magic Innovation channel): “Avoid the Corporate Chilling Effect on Innovation,” August 17, 2009. Recorded in Appleton, Wisconsin. All rights reserved.

In this 4-minute video clip, I illustrate some of the principles from our book, Conquering Innovation Fatigue, using one of my favorite magic tricks, a version of the cut and restored paper trick. It speaks to the need for the innovation community in a corporation and other elements to be aligned with the true objectives and goals of the corporation. I performed this effect for the audience of the CoDev conference on open innovation in 2009, where I came up with this line: “If you’re not aligned, you’re skewed.” See if it fits.

From YouTube.com/magicinnovation (the Magic Innovation channel): “Analogy of the Cut and Restored Paper Strip: Alignment and Connectivity for Innovation Success,” August 13, 2009. Recorded in Appleton, Wisconsin. All rights reserved.

In our newly released book, Conquering Innovation Fatigue (John Wiley & Sons, July 2009), we offer guidance for innovators, entrepreneurs, business leaders, and policy makers. Today I’d like to speak to leaders of teams or organizations where innovation matters but seems to be less effective than it should be. Innovation fatigue can set into an innovation community for a wide variety of reasons we discuss in the book. When that happens, the solution is not necessarily to punt and discard your team. The first step should be to look within and identify the fatigue factors that may have left your would-be innovators feeling disconnected and empty. Has there been a breach of trust that needs to be rebuilt? Are there barriers that keep your innovation community out of the loop and disconnected from the needs of the market place? (If so, see our chapter on the Horn of Innovation!) Are there steps you need to take to recharge your innovation group with the energy and innovation fizz they used to have?

My short video clip below uses an analogy with aluminum cans to help illustrate the problem and recommended approach. It’s a bit tongue-in-cheek, but I hope it makes a point. OK, it’s a bit lame and amateurish – just trying to make a point in a round-about way. No trick photography is used.

From http://youtube.com/magicinnovation: “The Analogy of the Cans: Energizing Your Innovation Community.”

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The world of many two-year-olds and far too many business leaders seems to be dominated by one word: “MINE.” Like the seagulls in the old Disney movie, Finding Nemo, everything within reach is a potential casualty for the chanters of “MINE, MINE, MINE.” Their business model seems to work: kids get what they want much of the time, the birds get fed, and business leaders get their way. But none of these creatures are who we should look to for real leadership and innovation.

Innovation and real success in business requires attention to one’s ecosystem, the network of partners and other players that participate in your business. If you neglect these relationships or abuse them, you can destroy the willingness of these partners to help you succeed or to share valuable knowledge and ideas that can be essential to innovation. Selfishness and business narcissism are ultimately self-defeating. Healthy business requires a healthy ecosystems with partners who trust you and are motivated to help you succeed. Squeezing every last penny out of your partners and suppliers doesn’t do that.

The automotive industry in the U.S provides a painful example of self-defeating selfishness. Here’s an insight from commentator Roger Wiegand in his recent article, “Gimme a Job“:

Another largely unreported statistic says that for every auto job lost, six more auto supplier company jobs vanish as well. We all know what a major role the auto industry plays in the economy. For most consumers a house is the largest asset and cars are next in line.

The amount of jobs lost within the big three is just the tip of the iceberg. Suppliers are filing bankruptcy right and left. The bigger question then becomes: How can the remnants of suppliers produce parts to build all those cars? Suppliers are not earning any money. The Big Three has crushed them with their own problems.

Both GM and Ford have had to buy back spun-off parts companies just to ensure mandatory parts delivery to build their cars. They have either helped them with millions-billions in fresh cash, or in fact bought back their parts suppliers outright. Even the premium, top drawer parts suppliers are filing bankruptcy.

The Big Three has historically treated their suppliers like economic enemies. The Asian manufacturers take the view their suppliers are their partners and work out problems together to ensure quality and that everybody makes a profit. If your suppliers fail you fail with them. The Big Three has never seen the light on this get-along notion.

Treating suppliers as economic enemies – treating any partner as an economic enemy, including one’s own employees – is a short-sighted approach that can reap economic benefits for a time while casting a magic spell of doom over one’s future.

The blinders imposed by greed and selfishness makes sufferers of these ailments miss the rich opportunities that can be created by win/win attitudes and a generous heart. Further, it makes would-be leaders far less likely to actually lead and influence others, and more likely to create enemies and opposition.

Scientific data supports an important conclusion that is counter-intuitive to the practitioners or greed: generosity and kindness create success. Those who refrain from the mantra of “MINE, MINE” and think of the well-being of others are not only more likely to have economic success, but also to gain credibility and success as leaders. This is borne out by significant bodies of data, as discussed by Arthur C. Brooks, President of the American Enterprise Institute, in his recent speech, “Why Giving Matters.” I consider this a must-read article.

Brooks discusses the surprising results born out by extensive data showing that the act of giving, whether it be charitable donations, volunteering time, or even giving blood, leads to increased economic success. Part of the reason is that this more selfless approach makes a person happier, and happier people do better in work, in managing relationships, and in many aspects of productivity. People who give also gain respect and credibility from others, which enhances their ability to lead and inspire. I would add that people who are willing to help others and be kind are more likely to not ignore the needs of partners, more likely to not alienate them by being oppressive and greedy, and more likely to stimulate cooperation and the sharing of ideas.

If you care about innovation and business success, look to yourself first. Do you care about others? Understand and respect their needs? Do you give to charity? Do you inspire trust and respect through your integrity and character? If not, your iron-clad contracts and Draconian negotiating skills will be like cursed relics from a bad mummy movie that only drag you down to a dusty doom.

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InnovationFatigue.com is the official blog for the new book, Conquering Innovation Fatigue. Here we provide supplementary innovation, news, tips, updates, and, when needed, a correction or two, to keep those who are using the big on the inside edge for innovation success.