How to drive change and Innovation as a Leader
Mark Zuckerberg, Facebook
co-founder and chief executive, is often quoted on the importance of having a
more creative and forward-thinking workforce. In one of his best-known quotes,
he says that it’s important to “move fast and break things. Unless you are
breaking stuff, you are not moving fast enough.”
The question is, how many leaders
in big organizations will take that to heart?
In 2013,
Campbell Soup Co. launched its “Hack the Kitchen” contest to challenge
innovative developers to create web or mobile apps for mealtime solutions. The
winner, FoodMood, tapped into user’s emotions by asking “What’s your mood?” and
the app then suggested recipes based on the user’s feelings and food
preferences.
FoodMood,
developed by Pollinate Inc., received a $25,000 cash prize and a $25,000
contract to bring the idea to market.
But perhaps
more important, Campbell Soup – with more than 19,000 workers – decided that it
wanted outside innovators to create new ideas.
Campbell’s
is not alone. General Electric is partnering with students and entrepreneurs to
help them create new products.
"The
first lesson we learned was don't just talk about it, meet about it, think
about it -- just go do it," says Venkat Venkatakrishnan, GE
Appliances Innovation Leader. "It's something we don't do very well. We
tend to evaluate all the risks, look at everything...the local startup
community goes and builds something, does something, and figures out the
rest."
Campbell and
GE are big companies looking to adopt a more innovative, agile mindset that
permeates start-ups, and more organizations realize they need to do the same in
order to survive.
“Truly
creative business leaders engage less-conventional partners, such as citizen developers, and entrepreneurs to help drive
innovation,” notes VentureBeat.
In addition,
an IBM trend study of more than 1,500 companies found that those who
excel in business goals partnered more creatively with outside organizations
and recruited less traditional partners for their efforts.
Driving
change
Clearly,
there are challenges for big organizations that want to become more
entrepreneurial and respond quickly and efficiently to new ideas in order to
stay competitive. Brad Smith, president and chief executive officer at Intuit,
recently noted that implementing change is not easy, partly because
teams “seek routine and repetition – hoping to avoid changes in priorities,
team members, or resource allocation.”
The job of
leaders, Smith says, “is to fight these natural headwinds and proactively
create the change necessary to keep their organizations on the leading edge.”
So how can
leaders move employees faster to adopt a more entrepreneurial mindset?
Consider:
·
Using the
right words. A recent report in the Academy of Management
Journal supports the notion that leaders in big organizations must push for
change and new ideas – but success may depend on their approach.
For example,
the study found that one executive spent two years writing and re-writing her
20-word statement for employees articulating her vision. Researchers found in a
random look at more than two dozen Fortune 500 leaders that when leaders rely
on concepts to communicate their visions for a company, it is not as effective
as when they use imagery. So a leader saying he or she wants the company “to
become the world’s leading seller of luxury goods” isn’t as effective as saying
he or she wants to “see customers smiling as they leave our stores,”
researchers say.
·
Looking for
the right mindset among employees. A Gallup study of small
businesses found that highly talented entrepreneurs were, among other things,
more likely to clearly articulate the competitive advantage of their companies
to their clients and were more likely to make decisions about pricing and
service development with customers in mind. Zappos CEO Tony Hsieh explains why
he really likes being around entrepreneurially-minded people. “It's really just
about having that right combination of creativity, and optimism, and
street smarts. I like being around people who will do whatever it takes to help
make something happen,” he says.
·
Asking
questions. Smith advises that it’s a “good rule of thumb” to
engage employees early and often when they’re being asked to change. “Change is
a team sport, and it’s important to bring people along for the journey. I’ve
seen too many leaders hunker down in conference rooms, attempting to divine the
perfect change journey, while their employees fill the communication void with
misinformation,” he says.
·
Creating a
sense of urgency. An Accenture survey finds that 85% of
respondents say that employee ideas are mostly aimed at internal improvements
rather than external ones. That can have dire consequences for even the biggest
organizations as the average lifespan of an S&P organization is
now 15 years, compared to 67 years in the 1920s. Smith urges that leaders treat
change “as a hypothesis, with clear expectations around what the change is
designed to improve, and measure it as you go. If it isn’t working as planned,
diagnose root cause and adjust.”
·
Making
competition fun. Richard Branson, founder of Virgin Group, says that
his global company has “had many battles with our competition – and we’ve
welcomed them all.” While friendly competition can sometimes escalate “into
antagonism,” he believes the key to such scenarios “is knowing when to take a
stand, and when to laugh it off.” He even suggests making a wager with the
competition to maintain “a competitive spirit” and “having some fun along the
way.” Take your competition seriously, he says, “but not yourself.”
Thanks for reading my blog.
Are you Leading?
Dr. Deepak A. Patil
CEO, Lead ThySelf
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