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Innovation

Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”

November 2, 2020 By Nagesh Belludi Leave a Comment

In the mid-1950s, Gillis Lundgren (1929–2016) was a draftsman living in a remote Swedish village of Älmhult. He was the fourth employee of a fledging entrepreneur named Ingvar Kamprad.

Kamprad’s business was called IKEA, an acronym combining his initials and those of his family’s farm and a nearby village. He had founded IKEA in 1943 and got his start selling stationery and stockings at age 17. In the 1950s, Kamprad had launched a low-cost mail-order furniture retailer to cater to farmers.

Constraints have played a role in many of the most revolutionary products

In 1956, Lundgren designed a veneered, low coffee table. He built the table at home but realized that the table was too big to fit into the back of his Volvo 445 Duett station wagon. Lundgren cut off the legs, packed them in a flat box with the tabletop, and rushed to a photoshoot for the IKEA furniture catalog.

And in so doing, Lundgren unintentionally birthed the flatpack furniture industry. He modified his simple design and drew up plans for a disassembled version of the table. Lundgren’s Lövet table (now called Lövbacken) became IKEA’s first successful mass-produced product.

IKEA and Its Flatpacking Took Over the World

IKEA’s trademark, easy-to-follow assembly instructions are a central ingredient to the company’s success. Manufacturing and distributing prefabricated furniture via flatpacking has proved enormously successful. It has dramatically facilitated the shipment and storage of pieces that otherwise took up much more space.

According to Bertil Torekull’s Leading by Design—The IKEA Story (1998,) the concept of ready-to-assemble furniture is much earlier than that. But IKEA was the first to systematically develop and sell the idea commercially.

Flatpacking contributed to many of IKEA’s products’ enduring popularity—they’re affordable, sleek, functional, and brilliantly efficient. In 1978, Lundgren designed the iconic Billy bookcase, the archetypical IKEA product that currently sells one in three seconds.

IKEA’s aesthetic of simplicity and efficiency reflects in its exclusive design and marketing approach. IKEA constantly questions its design, manufacturing, and distribution to create low-cost and acceptably good products.

The method has been adopted by numerous other business enterprises, transforming how products are made and sold globally.

Out of Limitations Comes Creativity

One problem with creativity is that sometimes people face an open field of creative possibilities and become paralyzed. Constraints can be the anchors of creativity [see more examples here, here, and here.]

Constraints fuel rather than limit creativity. Use constraints to break through habitual thinking and promote spontaneity. The mere experience of playing around with different constraints can stretch your imagination and open your mind’s eye for ingenuity.

Idea for Impact: Use constraints to help stimulate creativity. As the British writer and art critic G. K. Chesterton once declared, “Art consists of limitation. The most beautiful part of every picture is the frame.”

Wondering what to read next?

  1. Van Gogh Didn’t Just Copy—He Reinvented
  2. The Rebellion of Restraint: Dogma 25 and the Call to Reinvent Cinema with Less
  3. How You See is What You See
  4. Restless Dissatisfaction = Purposeful Innovation
  5. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Adversity, Artists, Creativity, Critical Thinking, Entrepreneurs, Innovation, Parables, Problem Solving, Resilience, Thinking Tools

Overcoming Personal Constraints is a Key to Success

August 14, 2020 By Nagesh Belludi Leave a Comment

Why do some people reach ever-higher levels of achievement, while others struggle or just plug along?

Norman Vincent Peale, the doyen of the think-positive mindset, provides a particularly illustrative example in You Can If You Think You Can (1987):

In Tokyo, I once met an American, an inspiring man, from Pennsylvania. Crippled from some form of paralysis, he was on a round-the-world journey in a wheelchair, getting a huge kick out of all his experiences. I commented that nothing seemed to get him down. His reply was a classic: “It’s only my legs that are paralyzed. The paralysis never got into my mind.”

No matter how formidable your talents, you’ll be held back by certain attitudes and behaviors that limit your achievements.

Your personal constraints—some of them beyond your control—will determine your level of success. Identify those constraints and make a plan to triumph over them.

Idea for Impact: The more you can reframe your attitudes toward the past, future, and present, the more likely you’ll find a meaningful life. Don’t let your constraints lay down what you can achieve.

Wondering what to read next?

  1. Restless Dissatisfaction = Purposeful Innovation
  2. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  3. How You See is What You See
  4. Why You Get Great Ideas in the Shower
  5. How to Solve a Problem By Standing It on Its Head

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Attitudes, Creativity, Critical Thinking, Innovation, Mental Models, Parables, Problem Solving, Thinking Tools, Thought Process

Make ‘Em Thirsty

May 6, 2020 By Nagesh Belludi Leave a Comment

Sony’s Akio Morita, like Apple’s Steve Jobs, was a marketing genius. Morita’s hit parade included such iconic products as the first hand-held transistor radio and the Walkman portable audio cassette player.

Key to Morita’s success was his mastery of the art of the pitch. Morita pushed Sony to create consumer electronics for which no obvious need existed and then generated demand for them.

The best marketing minds know how to create a customer—previously unaware of a problem or an opportunity, she becomes interested in considering the opportunity, and finally acts upon it.

Coca-Cola marketers are but creating a thirst by showing the fizzle a freshly poured glass in Coke ads. “Thirst asks nothing more,” indeed.

The marketing guru Seth Godin has said, “So many people are unhappy … what they have doesn’t make them unhappy. What they want does. And want is created by the marketers.” Recall the old parable,

A sales trainee was trying to explain his failure to close a single deal in his first week. “You know,” he said to his manager, “you can lead a horse to water, but you can’t make him drink.”

“Make him drink?” The manager sputtered. “Your job is to make him thirsty.”

Idea for Impact: Whether you realize this or not, you’re in marketing, as is everybody else. You’re constantly pitching your ideas, skills, time, appeal, charm, and so forth. Study the art of the pitch. Master the art of generating demand for whatever it is you have to offer. Learn to “make ’em thirsty.” Marketing is everything.

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  3. Restless Dissatisfaction = Purposeful Innovation
  4. Chance and the Currency of Preparedness: A Case Study on an Indonesian Handbag Entrepreneur, Sunny Kamengmau
  5. The Emotional Edge: Elevating Your Marketing Messaging

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Customer Service, Innovation, Marketing, Parables, Persuasion, Problem Solving, Skills for Success, Thinking Tools, Winning on the Job

Five Where Only One is Needed: How Airbus Avoids Single Points of Failure

April 6, 2020 By Nagesh Belludi Leave a Comment

In my case study of the Boeing 737 MAX aircraft’s anti-stall mechanism, I examined how relying on data from only one Angle-of-Attack (AoA) sensor caused two accidents and the aircraft’s consequent grounding.

A single point of failure is a system component, which, upon failure, renders the entire system unavailable, dysfunctional, or unreliable. In other words, if a bunch of things relies on one component within your system, and that component breaks, you are counting the time to a catastrophe.

Case Study: How Airbus Builds Multiple Redundancies to Minimize Single Points of Failure

As the Boeing 737 MAX disaster has emphasized, single points of failure in products, services, and processes may spell disaster for organizations that have not adequately identified and mitigated these critical risks. Reducing single points of failure requires a thorough knowledge of the vital systems and processes that an organization relies on to be successful.

Since the dawn of flying, reliance on one sensor has been anathema.

The Airbus A380 aircraft, for example, features 100,000 different wires—that’s 470 km of cables weighing some 5700 kg. Airbus’s wiring includes double or triple redundancy to mitigate the risk of single points of failure caused by defect wiring (e.g., corrosion, chafing of isolation or loose contact) or cut wires (e.g., through particles intruding aircraft structure as in case of an engine burst.)

The Airbus fly-by-wire flight control system has quadruplex redundancy i.e., it has five flight control computers where only one computer is needed to fly the aircraft. Consequently, an Airbus aircraft can afford to lose four of these computers and still be flyable. Of the five flight control computers, three are primary computers and two are secondary (backup) computers. The primary and the secondary flight control computers use different processors, are designed and supplied by different vendors, feature different chips from different manufacturers, and have different software systems developed by different teams using different programming languages. All this redundancy reduces the probability of common hardware- and software-errors that could lead to system failure.

Redundancy is Expensive but Indispensable

The multiple redundant flight control computers continuously keep track of each other’s output. If one computer produces deviant results for some reason, the flight control system as a whole excludes the results from that aberrant computer in determining the appropriate actions for the flight controls.

By replicating critical sensors, computers, and actuators, Airbus provides for a “graceful degradation” state, where essential facilities remain available, allowing the pilot to fly and land the plane. If an Airbus loses all engine power, a ram air turbine can power the aircraft’s most critical systems, allowing the pilot to glide and land the plane (as happened with Air Transat Flight 236.)

Idea for Impact: Build redundancy to prevent system failure from the breakdown of a single component

When you devise a highly reliable system, identify potential single points of failure, and investigate how these risks and failure modes can be mitigated.

For every component of a product or a service you work on, identify single points of failure by asking, “If this component fails, does the rest of the system still work, and, more importantly, does it still do the function it is supposed to do?”

Add redundancy to the system so that failure of any component does not mean failure of the entire system.

If you can’t build redundancy into a system due to some physical or operational complexity, establish frequent inspections and maintenance to keep the system reliable.

Postscript: In people-management, make sure that no one person has sole custody of some critical institutional knowledge, creativity, reputation, or experience that makes him indispensable to the organization’s business continuity and its future performance. If he/she should leave, the organization suffers the loss of that valued standing and expertise. See my article about this notion of key-person dependency risk, the threat posed by an organization, or a team’s over-reliance on one or a few individuals.

Wondering what to read next?

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  2. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235
  3. Defect Seeding: Strengthen Systems, Boost Confidence
  4. The Inopportune Case of the Airbus A340 Aircraft: When Tomorrow Left Yesterday Behind
  5. Steering the Course: Leadership’s Flight with the Instrument Scan Mental Model

Filed Under: Business Stories, Sharpening Your Skills Tagged With: Aviation, Critical Thinking, Decision-Making, Innovation, Mental Models, Problem Solving, Risk, Thought Process

The Myth of the First-Mover Advantage

February 20, 2020 By Nagesh Belludi Leave a Comment

If you’re an entrepreneur entering a new market with a product or service that nobody else offers, you’ll seek the first-mover advantage.

  • You’ll move quickly to get established as a market leader. If your business idea has the potential to succeed, other entrepreneurs are possibly working on it at the same time or will be quick to emulate when they see what you’re doing.
  • You’ll validate your concepts quickly by identifying and partnering with a few enthusiastic “guinea pig” customers who can test your product or service early on and give you feedback regarding what customers really want.
  • You’ll create some barriers (“establish an economic moat” in Warren Buffett-speak) to inhibit other aspirants from entering the market—you’ll secure patents on your intellectual property, lock-in key locations, or negotiate longer-term contracts with customers.

Alas, many first-mover advantages are not sustainable, and many first-movers are as successful as what the superstars will have you believe.

First-to-Market is often First-to-Fail

New ventures have higher failure rates than more established businesses.

Creating market awareness, sustaining market acceptance, fending away aggressive competitors are often easier said than done for many new ventures, not to mention lining up suppliers and distributors. Besides, unless you’re well-capitalized by patient investors, you’re likely to face higher-than-foreseen marketing costs on top of lower-than-anticipated sales.

Instead, if you are the second—or later—entrepreneur to market, you’ll stand a better chance of success by learning from the forerunner’s mistakes. You’ll also earn better credence from your customers, suppliers, distributors, employees, and investors to help create a better product or service.

Idea for Impact: There’s an American adage that “many pioneers died with arrows in their backs.” The best time for an entrepreneur to offer a new product or service is after others have already gotten there and laid some groundwork.

Wondering what to read next?

  1. Van Gogh Didn’t Just Copy—He Reinvented
  2. Your Product May Be Excellent, But Is There A Market For It?
  3. Many Creative People Think They Can Invent Best Working Solo
  4. Pretotype It: Fail Fast, Learn Faster
  5. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts

Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Critical Thinking, Customer Service, Entrepreneurs, Innovation, Luck, Thought Process

Your Product May Be Excellent, But Is There A Market For It?

July 24, 2019 By Nagesh Belludi 1 Comment

Akio Morita, the visionary co-founder of Sony, liked to tell a story about recognizing opportunities and shaping them into business concepts.

Two shoe salesmen … find themselves in a rustic backward part of Africa. The first salesman wires back to his head office: “There is no prospect of sales. Natives do not wear shoes!” The other salesman wires: “No one wears shoes here. We can dominate the market. Send all possible stock.”

Morita, along with his co-founder Masaru Ibuka, was a genius at creating consumer products for which no obvious demand existed, and then generating demand for them. Sony’s hits included such iconic products as a hand-held transistor radio, the Walkman portable audio cassette player, the Diskman portable compact disk player, and the Betamax videocassette recorder.

Products Lost in Translation

As the following case studies will illustrate, many companies haven’t had Sony’s luck in launching products that can stir up demand.

In each case in point, deeply ingrained cultural attitudes affected how consumers failed to embrace products introduced into their respective markets.

Case Study #1: Nestlé’s Paloma Iced Tea in India

Marketing and Product Introduction Failure: Nestle's Paloma Iced Tea in India When Swiss packaged food-multinational Nestlé introduced Paloma iced tea in India in the ’80s, Nestlé’s market assessment was that the Indian beverage market was ready for an iced tea variety.

Sure thing, folks in India love tea. They consume it multiple times a day. However, they must have it hot—even in the heat of the summer. Street-side tea vendors are a familiar sight in India. Huddled around the chaiwalas are patrons sipping hot tea and relishing a savory samosa or a saccharine jalebi.

It’s no wonder, then, that, despite all the marketing efforts, Paloma turned out to be a debacle. Nestlé withdrew the product within a year.

Case Study #2: Kellogg’s Cornflakes in India

The American packaged foods multinational Kellogg’s failed in its initial introduction of cornflakes into the Indian market in the mid ’90s. Kellogg’s quickly realized that its products were alien to Indians’ consumption habits—accustomed to traditional hot, spicy, and heavy grub, the Indians felt hungry after eating a bowl of sweet cornflakes for breakfast. In addition, they poured hot milk over cornflakes rendering them soggy and less appetizing.

Case Study #3: Oreo Cookies in China

Marketing and Product Introduction Case Study: Oreo Green-tea Ice Cream Cookies in China When Kraft Foods, launched Oreo in China in 1996, America’s best-loved sandwich cookie didn’t fare very well. Executives in Kraft’s Chicago headquarters expected to just drop the American cookie into the Chinese market and watch it fly off shelves.

Chinese consumers found that Oreos were too sweet. The ritual of twisting open Oreo cookies, licking the cream inside, and then dunking it in milk before enjoying them was considered a “strangely American habit.”

Not until Kraft’s local Chinese leaders developed a local concept—a wafer format in subtler flavors such as green-tea ice cream—did Oreo become popular.

Idea for Impact: Your expertise may not translate in unfamiliar and foreign markets

In marketing, if success is all about understanding the consumers, you must be grounded in the reality of their lives to be able to understand their priorities.

  • Don’t assume that what makes a product successful in one market will be a winning formula in other markets as well.
  • Make products resonate with local cultures by contextualizing the products and tailoring them for local preferences.
  • Use small-scale testing to make sure your product can sway buyers.

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  2. Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark
  3. Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology
  4. What Taco Bell Can Teach You About Staying Relevant
  5. Labubu Proves That Modern Luxury Is No Longer an Object, It’s a Story

Filed Under: Business Stories, Leadership, Managing Business Functions, MBA in a Nutshell, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Biases, Creativity, Customer Service, Entrepreneurs, Feedback, Innovation, Leadership Lessons, Parables, Persuasion, Thought Process

Turning a Minus Into a Plus … Constraints are Catalysts for Innovation

November 29, 2017 By Nagesh Belludi Leave a Comment

Creativity Thrives Best When Constrained

“Art consists in limitation,” as the English writer G. K. Chesterton remarked. Constraints are the sine qua non of creativity.

One of the great ironies of creative thinking is that it seems to benefit from constraints. At first blush, inventive thinking may seem to require a great degree of freedom and a lack of restrictions, but the reality of the creative process is that it is frequently entwined with many challenging constraints and intractable requirements. In the right light, demanding constraints can truly be blessings in disguise as the French poet Paul Valery observed, “A person is a poet if his imagination is stimulated by the difficulties inherent in his art and not if his imagination is dulled by them.”

Constraints can shape and focus problems and provide clear challenges to overcome. Constraints stimulate creativity because they not only invigorate inventive thinking but also reduce the complexity of the problem at hand. That is to say, constraints can make a problem more controllable, and possibly even more appealing.

Constraints and Challenge Can Actually Be Assets to the Creative Process

When you explore inventions that are creative, you’ll discover that the creators often exploited some core constraints that had characterized their domain in the past. Here are six examples of creativity that exploited a constraint to great advantage.

  • In 1986, British Airways ran a “Go for it, America!” marketing campaign to give away 5,200 free seats—all seats on its scheduled flights between USA and UK on June 10, 1986. In response, the upstart Virgin Atlantic ran its own newspaper advertisements that declared, “It has always been Virgin’s policy to encourage you to fly to London for as little as possible. So on June 10 we encourage you to fly British Airways.” And in smaller type, the ad read, “As for the rest of the year, we look forward to seeing you aboard Virgin Atlantic. For the best service possible. At the lowest possible fare.” The British Airways giveaway generated a lot of publicity, but most of the news coverage also mentioned Virgin’s unexpected, witty response.
  • In October 1984, during the second presidential debate with challenger Walter Mondale, Henry Trewhitt of the Baltimore Sun questioned President Ronald Reagan about his age: “You already are the oldest President in history, and some of your staff say you were tired after your most recent encounter with Mr. Mondale. I recall, yes, that President Kennedy, who had to go for days on end with very little sleep during the Cuba missile crisis. Is there any doubt in your mind that you would be able to function in such circumstances?” Reagan famously replied, “Not at all, Mr. Trewhitt and I want you to know that also I will not make age an issue of this campaign. I am not going to exploit for political purposes my opponent’s youth and inexperience.” Tyrwhitt responded, “Mr. President, I’d like to head for the fence and try to catch that one before it goes over.” Mondale lost and Reagan got elected for his second term as President. [See YouTube clip of this debate.]
  • An determined young woman I knew was embarking on a career as a new architect. She had set her sights on a job with a prominent architectural firm, but her professors and career councilors urged her to gain experience at a smaller employer first, as no prestigious firm would take on an inexperienced, new graduate. Undeterred, the young woman applied to the firm she had set her sights for. When asked about her experience, she declared slickly, “I have no experience at all. You see, I want to learn this business at a top quality firm. Employ me and mentor me to suit your design practices. This way, I’ll not have to unlearn any of the second-rate skills I’d have learned in another place.” She got the job.
  • When YouTube launched in 2005, many of its upstart competitors examined each uploaded video for copyright infringement. However, unlike its competitors, YouTube calculatedly let users upload any content and waited for copyright owners to complain before taking down noncompliant videos. By choosing to put their business model at risk, YouTube rapidly grew in content and viewers. Its early rivals faded out, and YouTube got acquired by Google and went on to became the world’s leading video-sharing platform.
  • The Soup, 1902 by Pablo Picasso (from his Blue Period) Legend has it that one day, the Spanish painter Pablo Picasso (1881–1973) had only blue paint to work with. When he started toying with the effects of painting with one color, he discovered the potential to produce interesting paintings that conveyed a sense of melancholy. Picasso had just relocated to Paris and was deeply affected by a close friend and fellow artist’s suicide. Art historians believe this event marked the onset of Picasso’s Blue Period (1901–1904,) during which he produced many stoic and sentimental paintings in mostly monochromatic shades of blue and blue-green. In what would become the hallmark of this greatest artist of the 20th century, Picasso leveraged an apparent constraint into an unintended creative outcome.
  • When American sculptor Janet Echelman’s art supplies never arrived to South India on a Fulbright scholarship trip, Echelman altered her plans and started working with bronze casts inspired by the local materials and culture of Mahabalipuram, fishing village famous for sculpture. However, she soon found the material too heavy and expensive for her Fulbright budget. While examining fishermen bundling their nets one evening, Echelman began speculating if nets could be a new approach to sculpture. However, the delicate surfaces of the fishnets revealed every ripple of wind. Echelman hoisted the fishnets onto poles and created sturdy volumetric forms without heavy, solid materials. Echelman’s building-sized constructed net art structures are now featured in many cities around the world. [See Janet Echelman’s TED talk.]

In each situation, the inventor reframed elements of his/her world that he/she couldn’t control.

When faced with an element of the situation that they cannot ignore or overcome, instead of tackling those problems head-on, creative folks tend to leverage their constraints in a creative way and reframe them into an exceptionally powerful problem-solving technique.

Idea for Impact: Constraints often stimulate creativity rather than suppress it.

The heart of many a problem lies in what seems to be a single, intractable element. When that’s the case, instead of asking, “how can I minimize this liability?” explore “how can I make the most of it?”

Wondering what to read next?

  1. Overcoming Personal Constraints is a Key to Success
  2. The Arrogance of Success
  3. Restless Dissatisfaction = Purposeful Innovation
  4. Finding Potential Problems & Risk Analysis: A Case Study on ‘The Three Faces of Eve’
  5. Van Gogh Didn’t Just Copy—He Reinvented

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Innovation, Mental Models, Parables, Thinking Tools, Thought Process

Lessons from Lockheed Martin’s Skunk Works: Autonomy Can Create Innovative Workplaces

August 2, 2016 By Nagesh Belludi Leave a Comment

Lockheed Skunk Works

Lockheed Corporation's Skunk Works: A top-secret research and production facility In 1943, Lockheed Corporation established a top-secret research and production facility informally called Skunk Works. It was explicitly tasked with developing a high-speed fighter aircraft within 180 days. This new aircraft was to compete with aircraft produced by the German aircraft manufacturing company Messerschmitt.

Skunk Works consisted of Lockheed’s best design engineers and technicians who occupied a rented circus shelter adjacent to a foul-smelling plastic factory (hence the Skunk Works moniker, inspired by a mysterious moonshine factory in a famous Al Capp comic strip called Li’l Abner.) More significantly, Skunk Works was isolated from corporate bureaucracy, granted much autonomy over decision-making, and encouraged to disregard standard procedures in the interest of expediency. In a record 143 days, Skunk Works designed, developed, and delivered the Lockheed P-80 Shooting Star aircraft, the first jet fighter operated by the United States Army Air Forces.

The Skunk Works framework of innovation was so successful that Lockheed has continued to operate this division for decades. Clarence “Kelly” Johnson, team leader of the first Lockheed Skunk Works project, codified 14 rules for all Skunk Works projects. Over the years, Lockheed’s Skunk Works designed and developed many aircraft, including the famous U-2 reconnaissance plane.

Disentangled from Bureaucracy and Management Constraints

Other companies borrowed this innovation idea from Lockheed to develop advanced products or discover product/service/business ideas that are entirely new to their parent organizations. Many businesses and engineering companies started their own “skunkworks” divisions consisting of self-directing teams of highly talented individuals who were seconded from their regular work environments. Unconstrained by executive interference, they operated under the radar. They were given a high degree of autonomy, access to R&D funds, and exceptional freedom from the parent organization’s bureaucracy and management constraints. Here are some examples of skunkworks projects.

  • At IBM, a skunkworks project in 1981 pioneered industry standards to adapt personal computers for business needs and released the IBM PC. This helped IBM break away from its lynchpin mainframe business and launch its celebrated personal computers division. IBM has since continued the skunkworks tradition. In the 2000s, IBM established many “emerging-business opportunities” or EBO teams and assigned its best and brightest people in charge of risky startup ideas that could germinate new business lines in five to seven years.
  • At Motorola in the mid-2000s, a team of designers and engineers defied the company’s own rules to develop the best-selling RAZR mobile phone. This skunkworks team was isolated from Motorola’s main R&D facility. Fortune magazine noted that this “tight-knit team repeatedly flouted Motorola’s own rules for developing new products. They kept the project top-secret, even from their colleagues. They used materials and techniques Motorola had never tried before. After contentious internal battles, they threw out accepted models of what a mobile telephone should look and feel like. In short, the team that created the RAZR broke the mold, and in the process rejuvenated the company.”
  • Google’s famous 20% rule and innovative workspaces lets employees collaborate across the company and work on their dream projects, but bring those projects to the larger collective for further funding and development. Many of Google’s innovative products and features in Gmail, Google News, Google Talk, Google Suggest, Transit Directions, etc. originated as 20% projects.
  • Microsoft’s skunkworks located in Studio B facility on its Redmond campus developed Kinect, Surface tablets and computers, and other recent products.
  • Apple has the most celebrated of skunkworks teams. Apple Chief Design Officer Jonathan Ive’s design laboratory consists of a few handpicked designers who work on “very experimental material that the world is not quite ready for.” Working in an area separate from Apple’s main Cupertino campus, Ive’s team maintains a culture of incredible secrecy.

Skunkworks Innovation Model and Startup Cultures

In the 1960s and 1970s, the skunkworks concept fell out of favor, as many companies started to see skunkworks teams as distractions and as cost centers “with an attitude.” However, with a renewed emphasis on teamwork and a focus on setting up startup-like innovative workplaces where teams can flourish, the skunkworks model of innovation has been renewed and revived in the last two decades.

Inertia, internal politics, bureaucracy, layers upon layers of management questioning risk and rewards, and the fear of failure weigh heavily on many a company’s pursuit of new products and services. The skunkworks innovation model and the startup culture offer frameworks for organizations to pursue growth ideas separate from current lines of business.

In 2013, General Electric instituted a program called FastWorks to mimic Silicon Valley’s startup culture in a company-wide effort to foster innovation and develop products quickly and cost-effectively. Boeing’s Phantom Works, Nike’s Innovation Kitchen and Sports Research Lab, Amazon’s Lab126 and A9 laboratories, Google X, and Walmart Labs are some of today’s prominent skunkworks organizations.

Idea for Impact: Autonomy Fosters a Creative Environment

For managers, the key take-away from the skunkworks concept is that giving autonomy to employees and teams not only engenders a happier and satisfied workforce, but also fosters a creative environment. Some ideas to consider:

  • Give much autonomy to those employees and teams who have demonstrated the promise of being self-directed and maintaining alignment with the larger organizational goals. Direct them, oversee their progress, and follow-up when necessary. Micromanage when you must.
  • Give employees discretion over their tasks and resources. Create a favorable environment in which people are encouraged to discover, use, and grow their unique skills.
  • Don’t second-guess employees’ and teams’ ideas and decisions unless necessary. Judging or criticizing not only undermines their confidence, but also keeps them from sharing their ideas with you in the future.
  • Allow employees and teams to experiment, iterate their ideas, gather data and develop performance metrics, and quickly discard less promising ideas in favor of stronger ones.
  • Support risk-taking and failure. Celebrate failure as it can provide valuable technical and organizational insights. Encourage employees to be confident enough to try to fail and learn lessons without being apprehensive about being rebuked.

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  2. FedEx’s ZapMail: A Bold Bet on the Future That Changed Too Fast
  3. How to … Declutter Your Organizational Ship
  4. Innovation’s Valley of Death: Case Study on the Bombardier CSeries
  5. Dear Customer, Speak Early and Have it Your Way!

Filed Under: Leadership, The Great Innovators Tagged With: Aviation, Creativity, Innovation, Leadership

Finding Potential Problems & Risk Analysis: A Case Study on ‘The Three Faces of Eve’

June 24, 2016 By Nagesh Belludi Leave a Comment

The Three Faces of Eve (1957)

Risk Analysis is a Forerunner to Risk Reduction

My previous article stressed the importance of problem finding as an intellectual skill and as a definitive forerunner to any creative process. In this article, I will draw attention to another facet of problem finding: thinking through potential problems.

Sometimes people are unaware of the harmful, unintended side effects of their actions. They fail to realize that a current state of affairs may lead to problems later on. Their actions and decisions could result in outcomes that are different from those planned. Risk analysis reduces the chance of non-optimal results.

The Three Contracts of Eve

'The 3 Faces of Eve' by Corbett H. Thigpen and Hervey M. Cleckley (ISBN 0445081376) A particularly instructive example of finding potential problems and mitigating risk concerns the Hollywood classic The Three Faces of Eve (1957). This psychological drama features the true story of Chris Sizemore who suffered from dissociative identity disorder (also called multiple personality disorder.) Based on The Three Faces of Eve by her psychiatrists Corbett Thigpen and Hervey Cleckley, the movie portrays Sizemore’s three personalities, which manifest in three characters: Eve White, Eve Black, and Jane.

Before filming started on The Three Faces of Eve, the legal department of the 20th Century Fox studio insisted that Sizemore sign three separate contracts—one for each of her personalities—to cover the studio from any possible legal action. For that reason, Sizemore was asked to evoke “Eve White,” “Eve Black,” and “Jane,” and then sign an agreement while manifesting each of these respective personalities. According to Aubrey Solomon’s The Films of 20th Century-Fox and her commentary on the movie’s DVD, the three signatures on the three contracts were all different because they were a product of three distinct personalities that Sizemore had invoked because of her multiple personality disorder.

Idea for Impact: Risk analysis and risk reduction should be one of the primary goals of any intellectual process.

Postscript Notes

  • I recommend the movie The Three Faces of Eve for its captivating glimpse into the mind of a person afflicted with dissociative identity disorder. Actress Joanne Woodward won the 1958 Academy Award (Oscar) for best actress for her portrayal of the three Eves.
  • The automotive, aerospace, and other engineering disciplines use a formal risk analysis procedure called “failure mode and effects analysis” (FEMA.) FEMA examines the key risk factors that may fail a project, system, design, or process, the potential effects of those failures, and the seriousness of these effects.

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Find out What Your Customers Want and Give it to Them

April 22, 2016 By Nagesh Belludi 1 Comment

“Nobody asked the dogs what they wanted”

Once upon a time, a pet-foods company struggled to sell a new dog food product they’d recently introduced to the market.

The company’s CEO called the department heads together to discuss why the new product wouldn’t sell.

The head of production said he’d done everything right; it wasn’t his department’s fault.

The heads of the sales, advertising, finance, packaging, shipping, and distribution departments had done everything right. None of them were to blame.

The CEO demanded, “Darn! What happened? Why won’t our new product sell?”

A junior staffer shouted from the back of the room, “Sir, it’s just that the dogs simply won’t eat our doggone food. You see, nobody asked the dogs what they wanted.”

Idea for Impact: Customer Focus Drives Company Success

Your research and development efforts will be successful only if they’re driven by a thorough understanding of what your customers want. Engage your customers. Pay close attention to their needs in every phase of product/service design including idea generation, product design, prototyping, production, distribution, and service. Remember Peter Drucker’s dictum that “the purpose of a business is to create and keep a customer.”

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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