Last issue Scott Anthony warned about the “Dangers of Data,” saying that it’s nearly impossible to come up with accurate forecasts for new-to-the-world products. In this issue Kevin Bolen and Krystin Stafford describe how one popular metric – the Net Promoter Score® – can keep innovators focused on the incremental innovation and obscure the path to disruption. Here is an excerpt:
“The superior man, when resting in safety, does not forget that danger may come. When in a state of security he does not forget the possibility of ruin. When all is orderly, he does not forget that disorder may come. Thus his person is not endangered, and his States and all their clans are preserved."
When Confucius offered this advice in 500 B.C., he could not have forecasted the economic swings of the past 18 months. Yet his words have never rung more true. When economic conditions are uncertain, undisciplined leaders often whipsaw their organizations back and forth between strategies in response to so-called “key indicators.” While such metrics can be powerful allies in the path to growth and value creation, during periods of instability their limitations must be acknowledged and their influences balanced by broader perspectives. In their book by the same name, George Day and Paul Shoemaker call these broader perspectives “Peripheral Vision” and suggest paying attention to the outliers for weak signals that may later become competitive challenges.
In this issue's Innovators' Insight, Innosight's President Scott Anthony writes about how Google may be finally beginning to mature as an innovator, and offers advice for the company as it grows its innovation capabilities. Here is an excerpt:
Over the past decade, Google has inspired envy in trench-dwelling managers around the world. It’s not just the unparalleled benefits. It’s the way Google approaches innovation. Engineers are encouraged to dream up pet projects in their spare time. Teams self form around the best ideas. Market-based principles ensure that the best ideas receive funding. It sounds chaotic, democratic … and intoxicating. “Why can’t we do that?” countless managers wonder. “Instead, we have to deal with crushing bureaucracy that favors our leaders’ personal whims over the most game-changing ideas.” Management guru Gary Hamel praised Google in his book The Future of Management, positing that more and more companies would adopt the company’s market-based system. There is indeed much to admire about Google’s approach, and much to learn from it.
Featured in the InnoBlog, the virtual book tour for Scott Anthony's book The Silver Lining: An Innovation Playbook for Uncertain Times has wrapped and listed are links to reviews and interviews from organizations like Business Innovation Factory and FutureThinkTank. Also Innosight Analyst, Andrew Laing, discusses innovation and how it applies to Japan's bizzare cell phone market.
As always, thanks for reading Strategy & Innovation! All issues are available and free with registration here.
