Getting to Innovation: How Asking the Right Questions Generates the Great Ideas Your Company Needs
288
Getting to Innovation: How Asking the Right Questions Generates the Great Ideas Your Company Needs
288Paperback
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Overview
Product Details
| ISBN-13: | 9780814438190 |
|---|---|
| Publisher: | AMACOM |
| Publication date: | 07/16/2007 |
| Pages: | 288 |
| Product dimensions: | 6.00(w) x 9.00(h) x 0.63(d) |
| Age Range: | 17 Years |
About the Author
Read an Excerpt
Getting to Innovation
How Asking the Right Questions Generates the Great Ideas Your Company Needs
By Arthur B. VanGundy
AMACOM
Copyright © 2007 Arthur B. VanGundyAll rights reserved.
ISBN: 978-0-8144-0898-8
CHAPTER 1
Framing Innovation Framing: An Overview
We are creatures of habit. We sometimes resist change just because it is change. It is easier just to stay within our comfort zones.
"THAT'S THE WAY WE'VE ALWAYS DONE IT!"
What company wouldn't want to reduce its costs, save its customers time, and increase its customer satisfaction, all while growing its business? Well, it turns out that many companies act as if they do not! Instead, they keep doing things the way they always have, even though that might not work for them or their customers. They do it because that's the way they always have done it. And, perhaps, because that is how other companies in their industry have always done it. We are creatures of habit. When an employee asks why something can't be done, the patented response often is: "Because that's how we've always done things!" It is difficult to argue with logic like that!
Where has all the innovation gone? It has disappeared into black holes of fear and uncertainty, swirling and meandering about, seemingly without bounds. It has been reigned in, flipped over, tied up, and wrapped into neat little packages of meaning that present happy corporate faces to the outside world, while struggling and suffering internally and for shareholders. It has disappeared in some companies that seem locked into conventional ways of doing business, in spite of undesirable results. Just as some people seem to persist in behaviors that produce unproductive outcomes, so do some organizations. It is as if they cannot help themselves.
These companies lock themselves into self-created perceptual "frames" that prevent them from innovating. There is a certain degree of comfort in operating within familiar, comfortable frames. Such frames reduce uncertainty by establishing known boundaries that also help to create meaning for us and, therefore, become our realities. Yet, it is this same sense of knowledge and meaning that presents the biggest obstacles to change and innovation.
"LET'S TRY SOMETHING DIFFERENT!"
The fact is that companies can help themselves, but they first must make a conscious choice to change the status quo. This is exactly what more companies now are choosing to do. For instance, Fujitsu decided to do away with the accepted industry model of customer service. Although the company wants to reduce costs, save its customers time, increase customer service, and achieve growth, it figured out that things would have to change — that it would have to reframe the conventional model of doing business in its industry.
James Womack, author of Lean Solutions: How Companies and Customers Can Create Value and Wealth Together, notes that Fujitsu figured out a win-win way to change the conventional model of customer help lines. This part of customer relationship management (CRM) represents one of the outsourced business processes that have been the subject of increased attention in recent years. As used by most companies, help lines seem to stand between companies and their customers. For some companies, help lines appear to serve as the means to get rid of customers instead of retaining and acquiring new ones. The traditional help line frame is one in which operators are paid a flat rate for every complaint they handle. The faster they can get a customer off the line, the more money the operators can make and the higher the margins for the companies. So, the incentive is very clear for operators: The more customer complaints you field, the more money you will make.
One thing left out of this equation is the lack of any incentive to reduce the actual number of complaints. After all, wouldn't such a frame be counterproductive? Fujitsu analyzed this model and decided that most customers would rather not need to call a help line at all. An astonishing conclusion, isn't it!
So, the company contacted its customers (Telcom and large computer providers) and told them that it would rather be paid by the potential number of complaints instead of the number actually handled. And, Fujitsu said that it would prefer to focus on the vendors' problems than those of the vendors' customers. In other words, the company wanted to learn why customers even called and then figure out a way to eliminate the need to do so altogether.
Fujitsu reframed customer service by training representatives to work with customers to determine why their problems arose and who would be the best people to resolve them. In addition, the company decided to create a positive experience by using its help lines to tell customers about product features they might not be aware of or to ask them what else they would like in a product or service. One immediate result was many new product ideas. And new ideas, of course, often translate into innovation and higher profit margins.
Now, if you proposed this model to some managers, they immediately would point out how much more expensive this approach would be. (Besides, if they haven't been doing things that way, then how could it even be considered!) What they might overlook, however, is the potential long-term impact on the bottom line. In the case of Fujitsu, costs gradually decreased as the number of calls declined. The turnover of service reps was only about 8 percent, compared with an industry average of around 40 percent. So, the company saved consumers time, increased customer satisfaction, reduced costs, and increased the company's growth rate — all by reframing the conventional model.
THE PARADOX OF PARADOX
One thing Fijitsu did was to employ paradox to redefine a basic business process. This seems to be a characteristic of many organizations perceived as being innovative: When faced with challenges, they have the ability to reframe them into new, more productive and innovative ones. In essence, they have learned the power of testing all assumptions, including even the relatively simple and trivial ones often taken for granted. As Douglas Adams, the creator of The Hitchhiker's Guide to the Universe, said: "The hardest assumption to challenge is the one you don't even know you're making."
A paradox can be defined roughly as any statement that appears to be true while also having the ability to be false — in other words, a contradiction. Seemingly contradictory statements have been the basis for much inventive thinking. (In fact, an entire industry based on perceptual contradictions has been developed based on TRIZ — a Russian acronym known as the Theory of Inventive Problem Solving.) Contradictions help us test any assumptions we make, especially with respect to conventional thought patterns. For instance, consider what has been accepted as true in the automobile insurance industry: high prices, mediocre service, and complex bureaucratic procedures. This was the norm until Ohio-based Progressive Casualty Insurance Company tested these assumptions.
Instead of doing business in lockstep with the major companies, Progressive CEO Peter Lewis noted that the company would do things differently and offer faster claims adjustments, work on weekends, and — gasp! — offer price comparisons with its competition! Although the auto insurance industry had been in the red over the last five or so years, Progressive increased its revenue more than 36 percent — a rate six times that of the industry.
Other examples of frame busting abound in academic and popular literature.
• When Steve Jobs returned to Apple Computer as it was spiraling downward, he started using the tagline, "Think Different!" [sic] and then tested assumptions about what a computer was supposed to look like. More recently, he illustrated the power of reframes by completely upending the traditional model of how music is sold. With iTunes, consumers now can download music, videos of television shows, and movies.
• Michael Dell of Dell Computer contradicted the old frame of computers being high tech, involving expensive research and development (R&D), and being high-margin products sold in stores. Among other things, he created the market leader in online sales of laptops that were sold directly to the consumer, instead of through a third-party vendor, with an emphasis on volume and purchasing efficiency.
• Plantronics tested convention by increasing collaboration between engineers and designers. Instead of designers having to create products after engineers produced the technology, management decided to involve the designers throughout the process. This way, designers no longer needed to focus on how to overcome technical obstacles and could devote their attention to meeting consumer needs. The result was a 31 percent return on invested capital.
• In a now infamous decision, Coca-Cola executives decided to rebrand Coke as a sweeter beverage known as New Coke. Based on blindfolded consumer focus groups who compared sips of old and new coke, the company concluded that consumers would prefer New Coke and then launched it, with disastrous results. Coca-Cola then reframed its perceptions and retreated by bringing back Classic Coke. So, it initially appeared that consumers preferred a sweeter drink, but the contradiction was that they also did not prefer a sweeter beverage. This contradiction arose because the market tests did not reflect how people actually drink Coke: They don't wear blindfolds and they take more than one sip. Thus, they liked it but they didn't like it — a logical contradiction!
• In the early 2000s, McDonald's Corporation realized that its previous, successful frame of "one size fits all" was no longer effective as consumers began demanding healthier foods. By recognizing consumer trends in this area and reemphasizing service, McDonald's experienced a 10 percent increase in in-store sales in the first half of 2004 and an 11 percent decrease in complaints.
• A few years ago, Sirkorsky Aircraft Company was asked to bid on a contract for the Air Force One presidential helicopter, a contract the company had held for about fifty years at the time. Any business relationship that has lasted that long constitutes a frame about future expectations. Perhaps the company used thinking such as, "We've had our contract renewed over half a century and we'll always have it." The company also might have assumed that its product's features would remain constant and viable as seen by its customers — for example, helicopter size, time to market, and communications technology. In fact, the Sirkorsky president at the time supposedly said he would jump out of a flying helicopter if the company didn't get the contract. Instead, the Lockheed Martin Corporation won a six-year, $6.1 billion contract. (No word yet on the helicopter jumping!)
IDEAS IN SEARCH OF PROBLEMS
Many organizations practice what I call "horse-before-the-cart innovation." They rush into generating ideas on how to become more innovative before they clearly have identified and articulated the most productive challenges. We have been trained and conditioned to gloss over the specifics of our challenges. As a result, we often make implicit assumptions as to the exact nature of our challenges and their priority with respect to other challenges. And then we jump right into generating ideas.
Most of us tend to be more solution minded than problem minded, as industrial psychologist Norman R. Maier used to note. Although lip service may be given about the need to "define the problem," relatively few people do it well. The very best ideas to the most poorly defined problem might as well not even exist. Anyone can have an exciting brainstorming session with hundreds of ideas. Frequently neglected, however, is devoting as much time and attention to clearly defining a "presented" challenge as is given to idea generation. As famed photographer Ansel Adams said, "There is nothing worse than a brilliant image of a fuzzy concept."
Creativity consultant and business professor Chris Barlow, in discussing the role of redefining problems for brainstorming, observes that idea quantity is more likely when "deliberate divergence" is used as a way to define problems. That is, defining problems should have far greater priority than we give it in relation to generating ideas. The ideas will come if we first consider more options for problem definitions.
We frequently expend a lot of time and energy using our creativity to generate ideas when we first should devote that time and energy to generating challenge statements to guide ideation. Instead, we often assume that we know what the problem is and just dive into brainstorming sessions. Why? Because that is what we have learned from experience and conditioning. It doesn't matter if research shows that we can generate significantly more ideas by taking the time to define a challenge and then deferring judgment during idea generation. What appear to matter more are the choices we make to persist in doing the same things the same ways we always have done them!
As a result, what often happens in a lot of brainstorming sessions is that ideas are tossed out that do not seem to make sense. The reason is not always that they are bad ideas; rather, the ideas different people think of may be based on varying assumptions as to what the "real" challenge is. Perhaps you have been in such a session where — after generating ideas for a while — someone says something like, "So, now exactly what is our problem?" Even groups that start with apparently explicit challenges may choose one so ambiguous as to complicate things even further. You just can't expect to generate useful ideas if you don't start with a clear-cut challenge question.
Undoubtedly, many organizations also may use such an approach to innovation initiatives. For instance, corporate managers often frame challenges based mostly on broad, strategic outcome objectives — for example, profitability or market share — along with some secondary goals such as generating new products and enhancing marketing and branding.
The best route to achieving any of these objectives is not to merely generate ideas but to first construct tactical maps to lay out the strategic terrain for all objectives. The old saying still holds true: "If you don't know where you want to go, any road will take you there." It also is true that even if you think you know where you want to go — an often costly, unchallenged assumption — you must create a map of goals to achieve along the way. These maps frequently are based on the premise that the objectives are stated clearly, known, and understood — often an erroneous assumption.
Most organizations do a good job of collecting research on how and where to innovate. However, Doblin, Inc. estimated in late 2005 that only about 4.5 percent of innovation initiatives succeed! One reason might be due to poorly framed innovation challenges. Unfortunately, there still are few resources on how to frame challenges for ideation.
Before looking at the process of framing challenges, however, it is important to think first about the general concept of perceptual framing.
"FRAMING" FRAMING
When you have finished reading this sentence, you will have been "framed." The sentence conveyed some form of meaning to you by creating intentional or unintentional cognitive boundaries. What you understood at the time is what you chose to think. What you understand now may be completely different because this additional information created a potential "reframe" for you. And, right now, your frame may be different again, ad infinitum.
There is a considerable amount of research on framing, most of which deals with how frames can be used to send messages designed to influence others. According to Schoemaker and Russo, there are the following three types of frames:
1. Problem frames used to generate ideas
2. Decision frames to make choices
3. Thinking frames involving deep mental structures and prior experience
This book will focus on problem frames as they are used to clarify strategic challenges for generating ideas and creating innovative solutions to organizational challenges.
Failing to devote attention to how we frame innovation is a failure to test assumptions and, more than likely, adopt less than optimal perceptual frames. How we see and define things determines how we behave. If we do a less-than-adequate job of framing a problematic situation, we are less likely to resolve it. Thus, the more we understand about the general nature of frames, the better challenge solvers we will become.
(Continues...)
Excerpted from Getting to Innovation by Arthur B. VanGundy. Copyright © 2007 Arthur B. VanGundy. Excerpted by permission of AMACOM.
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.
Table of Contents
Contents
Preface, xi,Acknowledgments, xvii,
PART I THE FRAME GAME, 1,
One Framing Innovation Framing: An Overview, 3,
Two Question Banks: Understanding the Strategic Terrain, 27,
Three Challenge Banks: Generating Innovation Challenge Questions, 44,
Four How to Write and Evaluate Innovation Challenge Questions, 59,
Five Constructing Conceptual Maps for Innovation Challenges, 86,
Six How to Conduct Innovation Challenges, 111,
PART II AFTER THE GAME, 127,
Seven Idea Management and Creativity Software, 129,
Eight A Crash Course in Generating Creative Ideas: Individual Methods, 153,
Nine A Crash Course in Generating Creative Ideas: Group Methods, 173,
Ten Tips for Designing and Facilitating Brainstorming Retreats, 192,
Eleven Evaluating and Selecting Ideas, 211,
Twelve Implementing Ideas, 237,
Bibliography, 261,
Index, 265,