Two 6 x 6 Stories weekly
6 statements, 6 words, about Innovating
A business must satisfy two necessities
Short term performance and stable results
Long term change and better results
These requirements create an operating tension
The need for execution to standards
The imperative to change the standards
Innovation success rates determine business destiny
Success rates correlate with being prepared
Being prepared requires investing in capability
Strong capability delivers more innovation faster
Faster innovation differentiates successful growing businesses
If you snooze, you will lose
Innovating starts with a triggering event
Innovating requires ability (knowledge, skills, capacity)
High velocity innovating requires a system
High performance innovating requires generating momentum
High impact innovating requires focused aspiration
Causal capabilities determine innovation success rates
Companies compete in every changing environments
The challenge of reacting to change
Is innovating fast enough for survival?
The preemptive challenge of causing change
Is innovating fast enough to grow?
The Challenge, “Is innovating fast enough?”
Sooner or later, you must innovate
Companies that don’t innovate risk failure
But that isn’t the whole story
Some innovate in reaction to change
Some companies innovate to cause change
But all successful companies eventually innovate
Businesses have an Innovation Readiness Gap
The difference between aspirations and results
Aspirations come from motivation, vision, opportunities
Results come from skills, processes, change
Aligning aspirations with results requires leadership
Growth occurs when aspirations match results
Every business leader wants more innovation
Every business has an innovation practice
So why is innovating so difficult?
Some businesses lack motivation to innovate
Some businesses lack skills and processes
Some businesses struggle with sustaining change
Innovation goals test your risk tolerance
Process Improvement has the least risk
Incremental and Sustaining have different scopes
Incremental focuses internally – Sustaining focuses externally
Radical Innovation carries the highest risk
Radical Innovation changes solutions, businesses, markets
Successful innovating depends upon two factors:
– the organizational ability to implement change
– the caliber of the Innovation System
Low ability and caliber limits impact
High ability and caliber changes industries
Competitive advantage from Innovating requires both
Innovating is constrained by business conditions
Motivation, capabilities, time, cost, and capacity
Motivation comes from unsatisfying business performance
Capabilities include knowledge, skills, and processes
Time and cost are business constraints
Capacity depends upon capabilities, time, cost
Innovating is a “Swiss Army Knife”
Innovation comes from utilizing all tools
Knowing which tool, why, and when
Knowing how to use it effectively
Invention tools: Discovery, Diagnose, Define, Design
Introduction tools: Decide, Develop, Deploy, Diffuse
Innovation requires finding problems worth solving
Problems not worth solving sometimes interfere
These include inventing problems nobody has
Choosing the wrong problem to solve
The right problem but wrong solution
Distinguishing problems worth solving is essential
Innovators often neglect a Change Specification
Specifying WHAT you want to change
WHY, HOW MUCH, and for WHOM
WHERE and WHEN and HOW TO
Change Specifications focus innovating on solutions
Change Specifications lead to Solution Specifications
Innovating requires knowledge, skills, and ability
What to do, how, and when
– Defining the Landscape and Status Quo
– Setting the stage for causing change
– Identifying and specifying problems worth solving
– Inventing, Specifying, and Introducing new solutions
Solving customer’s problems is the goal
Unfocused innovating is a business problem
Working on two problems is complicated
Innovating problems make customer problems foggy
Foggy customer problems exacerbate innovating problems
Solve the business innovating problem first
Innovating, processes, new solutions go together
Innovating without processes yields random results
Innovating without new solutions is waste
Innovating’s goal is high impact solutions
Successful innovating requires systemic innovating processes
Good processes yield high impact solutions
Innovating is cause; solutions are effect
New solutions improve the user experience
New solutions improve overall business performance
New solutions increase your market standing
New solutions change the status quo
New solutions result from innovating activities
The test of innovating is impact
Does it change the status quo
Is the solution new and better
Is a customer segment better served
Do users have a better experience
Does the solution improve business performance
There are two attitudes concerning change
Respond to maintain the status quo
Reacting to changes after they occur
Anticipate to change the status quo
Affecting changes before they are accepted
Innovation targets changing the status quo
Business leaders like the status quo
It feels orderly, stable, and predictable
Business managers believe it will persist
That they can control the rate-of-change
They will be aware of changes
They will have time to respond
Innovation is a result of change
Change inception comes from new knowledge
New knowledge leads to multifaceted targets
This is WHAT we are changing
Specifying by HOW MUCH and WHY
for WHOM, WHEN, WHERE, and HOW
Innovating inspiration comes from three voices
They are the Voice-of-the-Job, Voice-of-the-Customer, Voice-of-the-Stakeholder
Each voice provides a polarizing perspective
Listening to the voices isn’t enough
You must hear, interpret, and understand
The combined voices create innovating impetus
Successful innovating has two primary causes
Importance of problems + Strength of solutions
Problems with impact must be identified
Better new solutions must be introduced
Less important problems don’t interest customers
Solutions that aren’t better aren’t adopted
Innovating yielding Innovation requires two things
Defining problems that are worth solving
Introducing new solutions that are better
Problems worth solving cause frequent trouble
Better solutions change the status quo
Innovations solve problems with new solutions
Innovating impetus comes from three triggers
Voice of the Job provides focus
Voice of the Customer provides differentiation
Voice of the Stakeholder provides discipline
One or two triggers isn’t enough
Innovations result from pulling all three
Most innovating starts with conceiving ideas
What will mitigate an obvious threat?
What will address a known opportunity?
What novelty would customer’s find interesting?
What will alleviate a customer’s pain-point?
These triggers separate problems-worth-solving from ideas
Innovating targets changing the status quo
Innovating projects require triggers to start
Current Sales threats is one trigger
Future Sales opportunities is a second
Threats and opportunities must be diagnosed
Innovating starts with status quo sense-making
Innovating’s fourth essential activity is Adoption
Customer adoption is innovating’s final test
Adoption is a sequential engagement process
Creating awareness, promoting availability, facilitating acquisition
Encouraging acknowledgment, confirming acceptance, assisting adoption
A new solution replacing old solutions
Innovating’s third essential activity is Introduction
Development is the first Introduction challenge
Creating solution and capabilities to specifications
Deployment is the second Introduction challenge
Solution availability with minimal business disruption
Introduction changes the business status quo
Innovating’s second essential activity is Invention
Uncovering trouble with each available solution
Letting trouble expose problems worth solving
Improving the Job-Being-Done is one alternative
A new Job-To-Be-Done is a second
New solution specification is the goal
Innovating’s first essential activity is Sensemaking
Competitor’s solutions, customer segments, user satisfaction
Market, Technology, and Adoption Life Cycles
Business capabilities, strategic intent, business models
Competitive Positioning and Basis of Competition
Jobs Being Done and Solution Specifications
There is always an existing solution
Customers use solutions for a Job-Being-Done
The User Job-Being-Done Experience determines satisfaction
Constraints, performance, utility, outcomes cause trouble
Trouble intensity identifies problems worth solving
Job-To-Be-Done inspires better solutions, solving problems
There is always an existing solution
Customers use solutions for a Job-Being-Done
The User Job-Being-Done Experience determines satisfaction
Constraints, performance, utility, outcomes cause trouble
Trouble intensity identifies problems worth solving
Job-To-Be-Done inspires better solutions, solving problems
Customer Adoption Dynamics influences market diffusion
Early stage concerns new solution performance
Is it possible? Does it work?
Later stages concern new solution outcomes
Is there evidence it is better?
Does competitive pressure make it necessary?
Technology Adoption Dynamics influences buying behavior
Early stage customers are buying technology
Growth stage customer are buying applications
Plateau stage customers are buying integrations
Late stage customers are buying standardization
Selling and buying behavior must match
Technology Dynamics concerns new solution architecture
Early stage solutions compete on different architectures
Specific solution architectures represent proprietary capabilities
Eventually a solution architecture becomes standard
Competing on standard architectures requires modularization
Technology Dynamics drives business capability development
Market Dynamics cycles through three stages
The Stages are Introduction, Growth, Harvest
Voice-of-the-Job speaks to solution performance needs
Voice-of-the-Customer speaks to utility and outcomes
Voice-of-the-Stakeholder speaks to supplier outcome requirements
One Voice dominates in each stage
Solution Life Cycle Dynamics constrain innovations
Market Dynamics influences new solution development
Technology Dynamics influences standardization of solutions
Technology Adoption Dynamics influences buying behavior
Customer Adoption Dynamics influences solution substitution
Life Cycle Dynamics guide innovating decisions
Balancing friction with momentum drives innovation
Momentum can overcome or reinforce friction
Friction dominates with too little momentum
But too much momentum causes disorder
Balancing fiction with momentum hastens results
Innovating thrives in an orderly environment
Balancing friction with momentum drives innovation
Friction affects innovating in three ways
During Invention, friction spurs new ideas
During Introduction, friction slows down acceptance
During Adoption, friction suppresses solution substitution
Friction can help or harm innovating
These management beliefs suppress innovating projects
– Innovating is complex, complicated, and ambiguous
– Innovating follows Operational Excellence in priority
– Innovating work is departmentalized, not organizational
– Short term consequences are not impactful
– Innovating only when it’s mission critical
Innovation is only achieved through innovating
But is innovating discouraged and suppressed?
– The innovating practice is not systemic
– Failure is normal, expected, and institutionalized
– Goals include fail early, fast, often
What’s your excuse for not innovating?
Four Life Cycle Dynamics impact innovation
Market Life Cycle guides differentiation decisions
Technology Life Cycle influences scaling decisions
Technology Adoption Life Cycle drives capabilities
Customer Diffusion Life Cycle segments customers
Life Cycle Dynamics increase innovation probabilities
New solutions must pass four tests
Proof of Technology to confirm “How”
Proof of Concept to validate “What”
Proof of Design to confirm specifications
Proof of Development to establish readiness
Passing four tests accelerates organizational acceptance
Dualities are related two factor variables
The resolution must satisfy both variables
Acceptance and adoption are different outcomes
Organizational acceptance is necessary for availability
Customer adoption is necessary for replacement
Accepted and adopted solutions become innovations
Dualities are related two factor variables
The resolution must satisfy both variables
Innovating includes both invention and introduction
Invention is an individual design skill
Introduction is an organizational process skill
Invention and introduction skills cause innovations
Dualities are related two factor variables
Duality resolution must satisfy both variables
Users judge solutions cognitively and emotionally
Cognition assesses constraints, performance, and utility
Emotion values outcomes and satisfaction levels
Solutions evoke cognitive and emotional reactions
Dualities are related two factor variables
Duality resolution must satisfy both variables
Innovating creates new knowledge and solutions
New knowledge enables new solution development
New solutions make users lives better
New knowledge and solutions cause innovations
Dualities are related two factor variables
Duality resolution must satisfy both variables
Pairing technologies with problems drives innovating
Enabling technologies make new solutions possible
Problems worth solving make solutions desirable
Technologies solving problems make innovations probable
Dualities are related two factor variables
Duality resolution must satisfy both variables
Innovation drivers are Threats and Opportunities
Threat potential of declining current sales
Opportunity potential of increasing future profits
Innovating mitigates Threats and realizes Opportunities
Dualities are related two factor variables
Duality resolution must satisfy both variables
Innovation’s duality is Innovating and Entrepreneurship
Innovating to invent a new solution
Entrepreneurship to create, introduce, and replace
Causing change that makes life better
Dualities are related two factor variables
The resolution must satisfy both variables
Momentum / Friction is an implementation duality
Momentum challenges the Business status quo
Friction maintains the Business status quo
Leaders must balance Momentum and Friction
Dualities are related two factor variables
The resolution must satisfy both variables
Trouble / Novelty is a solution duality
Novelty attracts attention and generates interest
Trouble is the source of dissatisfaction
Solutions need novelty with less trouble
Dualities are related two factor variables
The resolution must satisfy both variables
Purpose / Job-to-be-Done is a guiding duality
Purpose motivates a business to change
Job-to-be-Done motivates a customer to change
Solutions causing change must satisfy both
Sensemaking places your situation in context
It clarifies the motivation for change
It provides the organization with purpose
Elucidating “Why are we doing this?”
Sensemaking also focuses attention on action
Activities with urgency towards a goal
Good ideas drive high hit rates
Good ideas are market-focused and driven
They impact user and business experience
Good ideas change the status quo
They create purpose and motivate change
Innovation doesn’t happen without good ideas
Individual skills and capabilities are essential
Observe without judgement or predetermined solutions
Making sense of anomalies and dissatisfaction
Being curious and actively exhibiting empathy
Imagination to envision a new solution
Connecting the dots with novel creativity
A systemic innovating practice is necessary
Low hit rates happen without one
High hit rates result with one
Sensemaking and Purpose to motivate action
Individual skills and methodologies to Invent
Processes to Introduce and cause change
The user experience has four components
Constraints encountered determine the boundary conditions
Solution specification targets the performance delivered
Job being done resolves utility derived
Outcomes achieved determines user satisfaction felt
User experience controls acceptance or substitution
Innovating always changes the status quo
The status quo has three components
User experience defines Customer Status Quo
Business performance defines Business Status quo
Competitive position defines Market Status quo
Changing status quo changes all three
Does your new solution make sense?
Four Life Cycle maps provide clarity
Market Life Cycle defines competitive differentiation
Technology Life Cycle determines competitive platform
Technology Adoption Life Cycle guides Marketing
Customer Diffusion Life Cycle drives acceptance
There are three drivers of change
Change resulting from variance in process
Business environment change you cannot control
Change you cause introducing new solutions
Process and environmental change require reactions
New solution change must be orchestrated
A clear Purpose drives successful innovating
Vision and Mission provide focused clarity
Crises and Threats get people’s attention
Opportunities and Technologies establish a trajectory
Problems worth solving motivate new solutions
Under-leveraged strengths become the innovating platform
Innovating yields innovations with 20% success
Dissatisfaction with innovating is frustratingly high
Business leaders are wary of innovating
Customer’s evaluating new solutions increase wariness
But new solutions improve everyone’s life
Innovating success follows problems worth solving
A clear Purpose drives successful innovating
Vision and Mission provide focused clarity
Crises and Threats get people’s attention
Opportunities and Technologies establish a trajectory
Problems worth solving motivate new solutions
Under-leveraged strengths become the innovating platform
Agile Innovating TM is a systemic practice
Discovering new needs applying Jobs-to-be-Done Theory
Utilizing Design Thinking to generate ideas
Specifying with the Business Model Canvas
Managing development with Agile Stage – Gate
Making it viable leveraging pioneering knowledge
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