It’s Not What You See. It’s How You See It.

Do you see an old lady in this picture?  A young lady?  Both? 

When viewing something, the mind often fills in what it expects to see.   Humans have a tendency to rely on experience and expectation instead of sight alone.  It lets us make decisions faster and process things more quickly.  The downside of this is that there are things that get overlooked.

Innovations can emerge from looking at familiar things in new ways. 

Re-see and Repurpose

Incremental change often goes unnoticed.  If you look at your yard every day, you don’t notice the grass growing.  But go on a two-week vacation.  When you come home, the first thing you notice is how much the grass has grown.

The same applies to the assets around us at work.  We become so accustomed to what’s always been there that we take things for granted, overlook them, or even start viewing things as liabilities that were once considered strengths.

One way to jump start innovation is to consider things from a different perspective.  Can what’s around you be viewed differently?  Can resources be used differently?  Some methods taught by academics include:

·         Adaptation

Transform something that you have into something even more useful in your existing environment.  Are there any modifications or adjustments you can make to things you already have access to which would render them of even more value to you? 

·         Exaptation

Perhaps something that you’ve taken for granted is no longer working as it once was.  It might have evolved into something new, or it might be used in a way that is different from its original intent.  This can spark an innovation if you’re aware of the change.  Discerning whether something you have has undergone an exaptation requires stepping back and looking at it with a fresh set of eyes and without the blinders of past expectations. 

 ·         Connect and Combine

The value of an individual asset might be greatly enhanced by connecting it with another asset you have access to or combining it with the assets of others.  This is an opportunity to look for synergies across multiple platforms or environments. 

An Example:  Rising Tide Car Wash

The D’Eri family is very entrepreneurial.  The father, John, ran his own business and considers himself a tinkerer.  His son, Tom, shares the same interest in building and creating.  Wanting to start his own company, he took an effectual approach.  He started with assessing his Bird in Hand, one of the principles of Effectuation.  The Bird in Hand principle states that expert entrepreneurs usually initiate a new venture based on what they have immediate access to.  This usually involves considering who they are, what they know, who they know, and what they have. 

John and Tom started by looking at the resources available to them.  A novice entrepreneur will often look only at those items they consider to be beneficial.  An expert entrepreneur, however, goes deeper.  They survey their surroundings and consider how anything and everything that can be accessed can be converted into an asset. 

In the case of the D’Eri’s, one resource they had access to is an autistic family member.  Their son / brother, Andrew, is autistic.  They desired to create a business where he could not just work, but thrive and where autism would serve as a competitive advantage. 

Their outcome:  the creation of Rising Tide Car Wash. 

Here are the steps they took to grow Rising Tide from a concept in 2012 to a thriving enterprise today.    

1.      Maximized resources

People with autism often exhibit similar behavioral characteristics, such as attention to detail, enthusiasm for work, and appreciation of routine.  The father / son team considered ventures that benefited from these skills.  One that emerged was car washing.  It’s a very rote process and the use of more sophisticated technology today requires an element of standardization.  It’s also an industry where operational efficiency is a strong driver of profitability, so it seemed to be a good fit. 

2.      Translated strengths into processes

Next, the duo took a regimented approach to operations.  They defined all of the required processes and mapped them out in detail.  This became the bedrock of the business model. 

3.  Invested in training

Instilling the processes into all employees was paramount.  Rising Tide focused its efforts on building the confidence and competence of its workforce through an in-depth onboarding program.  This allowed them to staff a workforce of whom approximately 80% are autistic. 

4.       Marketed the message

An innovation spreads as its embraced by others.  In this case, Rising Tide let its community know of its efforts and results.  They provide good work opportunities for individuals with autism and a fast, quality car wash for patrons.  Many have embraced both the customer and social benefits as Rising Tide has more than tripled its volume in about 4 years.

Look Again – With Effectual Eyes

Are there things in your environment that you’re overlooking? 

Take another look at what you have around you.  Pull out that list of organizational gaps and weaknesses and give it another glance.  Can you convert anything on that list that you’re currently viewing as a negative into an advantage?  Is there something you’ve taken for granted that can be reimagined? 

The innovation you’re looking for might already be in front of you.  Maybe it’s not about looking to acquire what you don’t have, but instead, looking differently at what you do have. 

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

A Better SWOT

How are you going to grow revenue this year?

September for many managers is the start of the business planning process.  That means making a lot of predictions about the economy, consumer behavior, and competitors. 

Instead of being a truly thoughtful exercise, business planning is often an exercise in busywork. Rather than discern real possibilities for innovation, managers populate forms with minutiae that becomes absorbed in the bureaucratic abyss.  And the discussions can often be a rehashed version of previous years.  The outcomes usually come down to how to lower costs or grow revenue based on the research data available.  It’s a lot of the same old, same old. 

If you’re finding yourself going back to the same approach as always when it comes to business planning, it might be time to consider a different way. 

Effectuation is the process expert entrepreneurs use to grow new ventures.  It can also be used by corporate managers and introduces a new way of thinking to the business planning process.  Instead of relying on data to predict what might happen, it provides a methodology for creating opportunities.  

Companies apply Effectuation by using the Assets to Action™ Model.  

This model has been called “an actionable SWOT”.  It is divided into 5 key parts. 

1.      Commitments

Successful implementation of Effectuation rests on commitments.  Decisions to invest money, time, effort, etc. depend on whether or not one attains commitments.  A commitment is the act of putting skin in the game.  Nothing is done without a commitment attached to it.  The more varied your stakeholders and the deeper the commitments, the more likely your success. 

2.      Inside

Start with an internal audit.  List your strengths.  Then think bigger.  Consider things that you own, things that you can access.  Look at your processes, culture, values, goals, etc.  Write these items on the left.  Whatever you’re willing to commit towards the innovation process, pull into the center “commitments” square.

3.      Downside

Rather than forecast expected return, identify what you’re willing to risk in pursuit of revenue growth.  This has tangible and intangible components.  Of course you’ll want to consider how much money you can spend in pursuit of your ideas.  But you’ll also want to think about the social capital and brand equity you want to expend while experimenting with your ideas. 

4.      Outside

Make a list of people / groups / brands you currently have relationships with.  These are entities that already have a vested interest in your success.  How might you approach them to join in your pursuit of revenue growth?  What could you develop that would be mutually beneficial?  Engage entities at the idea formation stage.  When you get commitments, move these into the center as well.

 5.      Upside

Look at all of the possibilities in the commitment center.  Connect and combine options.  Pull in stakeholders to help with this.  Reach consensus on a go-forward idea that involves stakeholder commitments.  Now choose specific action steps you can take to advance your idea.  These action steps should be concrete and measurable.  Track your outcomes and learnings. 

The results of these action steps serve as validation for your innovation.  They provide real market feedback, instead of guesswork, as to your idea’s acceptance.  And they provide evidence that becomes the basis for a valid business plan.   

An Example

One organization that used this process discovered that they had space that was dormant 20% of the time.  They had a partner they approached to talk about revenue growth and this partner expressed interested in “renting” the space on the off hours.  An agreement was reached to pilot this in a limited way.  Once there was evidence that it was working, they built a business plan leading to the creation of a new joint revenue stream for both organizations.   

Next Steps

You have an opportunity this year.  Why fill out another SWOT that doesn’t lead to action or revenue growth?  When you’re faced with the kick off of another business planning cycle, consider introducing a new approach – the Assets to Action™ Model.   

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

Obstacles to Asking and How to Overcome Them

Heads you lose.  Tails you lose.  If that’s the bet, do you take it?  No.

For many people, that’s how they look at Asking.  Making an Ask can be a scary prospect.  If you don’t ask, you don’t get.  That’s a losing proposition.  Yet if you do ask, the result could also go poorly.  Another loss. 

How do you manage this?  The answer for many is – avoid asking.  But if you’re trying to bring an innovation into the world, that’s not an option

Instead, try these three steps:

1.      Recognize what’s keeping you from asking.

2.      Learn the tactics to overcome that issue.

3.      Ask, ask, and ask some more.

Over the past five years, Sara Whiffen of Insights Ignited has worked with Dr. Saras Sarasvathy of the University of Virginia’s Darden School of Business to uncover what it is that prevents people from asking.  They have interviewed and surveyed successful askers, unsuccessful askers, and those who avoid asking altogether.  While there is still a lot of analysis to be done, a few key obstacles to asking are already emerging.  

1.      Cultural Bias of the Self Made Myth

American culture is deeply rooted in the idea of being self made – lifting yourself up by your own bootstraps.  The idea that one person can do it all and grow a successful venture without assistance is completely unrealistic.  All innovative ideas require someone to take a chance on them, to opt in to participate.  Asks are necessary to grow ideas.

Tactics for Overcoming

Stories of legends are often written to inspire.  But they can gloss over many of the gritty details.  Take another glance at entrepreneurs you admire.  Look deeper into their stories for how Asks have fueled their success.  As a tool, Asking is amazingly versatile and can be applied in myriad ways.  

2.      Excess Empathy

No one likes to be put on the spot.  To be cold called, feel unprepared, or blindsided.  Everyone has had that experience at some point; feeling time stand still while you search for an appropriate answer to a tough questions. Some people hesitate to make Asks because they identify strongly with that uncomfortable feeling and don’t want to put others in that situation. 

Tactics for Overcoming

If you tend to exhibit a high degree of empathy, go ahead and put yourself in the shoes of the person you’ll be asking, but do so from a positive perspective. Imagine them wanting to help, wanting to build a relationship with you, wanting to connect with your idea and move it forward.  Phrase your Ask in a way that invites them to collaborate with you.  Don’t make demands or leave them feeling as if it is easier to disengage than to form a partnership with you.  

3.      Fear of Rejection

This is the most common explicit fear.  “What if the person I ask says No to my request?”  In that case, you won’t get what you want.  Which would happen anyway if you didn’t ask.  Either way, the outcome is identical.  But by putting your Ask out there, you risk a loss of pride.  Fear of personal rejection can be even stronger than the fear of not getting your request.

Tactics for Overcoming

Separate yourself from the Ask.  A rejection of the request is not a rejection of you personally.  It might not even be a rejection of your idea. 

Why, then, is the person saying No?  For whatever reason they don’t feel that they can commit resources towards your request. 

Studies have shown that most people want to respond to requests in a positive way.  Take comfort in knowing that as awkward as you felt hearing a No, it’s likely the other party felt just as awkward saying No. Successful salespeople and entrepreneurs alike know you will often hear many No’s before you hear a Yes. 

 4.      Fear of Acceptance

You’ve asked.  They’ve said, “Yes”.  Now what?  You have to deliver.  This is when things become real.  Now you’re on the hook to make things happen.  This can also keep people from Asking.

Tactics for Overcoming

Start with asking yourself “Do I really want to do this?”  and “Why?”. Understanding your motivations for entering into this new venture can help you overcome the Fear of Yes.  Keep it front of mind when the panic of delivery creeps in or you feel a crisis of confidence and go back to why this new venture matters to you. 

Also, now is a good time to lean on your co-founder.  Leverage this relationship to ease doubts and improve your ability to follow through on new commitments. 

5.      Fear of Maybe

Sometimes, hearing a “maybe” can be even worse than a “yes” or “no”.  It leaves things in an ambiguous state.  It elicits more questions than when you began and throws the Asker back into wondering what the resolution will be.  Avoiding this uncertainty is enough to keep some from making an Ask in the first place.

Tactics for Overcoming

Try asking in a more open way.  Instead of using “closed” Asks, drive towards a commitment by asking “What would it take to...” or “How could we…”.  These lead to more conversational opportunities and give the person being asked more room to discuss options and possibilities.  As the asker, you get more insights into how they make decisions, their priorities, and considerations.  Even if the discussion results in a “maybe”, you will have more information at your disposal for future interactions. 

Moving Forward with Asking

You can’t be a successful entrepreneur without the Ask.  It’s a necessary component of bringing innovations out of your head and into the world.  If you identify with any of these obstacles to asking, try the tips suggested.  And then Ask away.  Whatever the answer – you can’t lose. 

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

Asking is the Answer

“I have so many great business ideas, but I don’t know how to get started.”  This is a common refrain.  Where to begin?  The most effective way to move your ideas forward is by Asking.

Effectuation offers a process for innovating during times of uncertainty.  As you look at each principle, its foundation is an Ask.  Dr. Sarasvathy at the University of Virginia’s Darden School of Business, originator of Effectuation, has identified the “Ask” as the single most important granular unit required for entrepreneurial success.  Mastering the concepts around Asking increases the likelihood of favorable entrepreneurial outcomes. 

Four Categories of Asks   

There are four phases in delivering innovative ideas.  The first is identifying what you want to move forward with.  The second is getting stakeholders to buy into helping you bring forth the idea.  The third phase is getting participation from those outside your stakeholder network.  And the fourth phase is scaling the idea.

Each of these phases requires a particular type of Ask proficiency.  

1.      Ask Yourself

At the beginning you’ll want to become adept at Asking yourself some key questions.  These include: 

  • Who am I?
  • What do I know?
  • Who do I know?

The answer to these questions will clarify your interests, values, and priorities.  Truly ask yourself these questions.  Be honest with your responses.  The results will surprise you.  You will see that you already have a significant amount of resources at hand with which to begin your innovation process. 

For example, when asking yourself “Who am I?”, consider your likes, dislikes, experiences, passions, etc.  Dive deeper into this by asking yourself:

  • What is my reason for doing this?
  • What outcomes would I like to see happen?
  • What am I most afraid of?

This also becomes the building block for your story.  The more you understand yourself and your motivations for pursuing this innovation path, the more authentic you can be when making Asks of others.   

2.      Ask Others

It’s not always easy to ask someone for something.  But for entrepreneurs, it’s essential.  After asking yourself, one of the first Asks required to advance an innovative idea is asking someone to partner with you to make it happen.  Getting a co-founder on board, a champion, or an advocate of some sort who complements your skill set and can bring additional resources to the table is a fundamental requirement for entrepreneurial success. 

Many venture capital groups won’t even talk to an entrepreneur unless they have a co-founder vested in their concept.  Why?  Having two founders significantly increases your odds of succeeding.  In order to get this person to commit, you’ll have to Ask.  Once you’ve achieved this, and begin to see the value that this one Ask can bring to your venture, you’ll be more likely to continue increasing the number and complexity of your Asks to others.  

3.      Get Others to Ask You

As word gets out about your innovation, you’ll find yourself in situations you hadn’t anticipated – meeting with new people and organizations.  In this phase, you again broaden your experience with Asking by getting others to ask you.   As you have co-creative conversations, you’ll want to present your ideas in a way that invites others to join. 

Forget focusing on pitching where you throw out a series of facts, features, and fantasy about what your innovation could grow to be and ask someone if they’re in or out – take it or leave it.  Instead, paint a picture of opportunity where you give others the chance to identify ways in which they see a role for themselves in advancing your venture.  Give them the time and space to create a role for themselves and Ask you for the opportunity to participate. 

4.      Get Others to Ask for You

In the final phase, your idea is out there and growing.  At this point, the focus is scale.  How can you broaden your impact?  Get others to Ask for you.  Create a culture of Asking in your organization.  Don’t just promote it, but put it into practice.

This increases the amount of influence an entrepreneur is able to have and expands their reach.  In order for someone to Ask on your behalf, they must feel vested in the outcomes.  Continue to be open to stakeholder participation.  This further magnifies the effect. 

Figuring out the first step in an innovation process can appear daunting at first.  It’s not.  Start with Asking.

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

BMW’s Effectual Approach

BMW is often lauded as one of the more innovative car companies.  This doesn’t always translate to the market share or the operating margins they want to attain to successfully challenge their competitors.  But they persist in trying innovative ideas and partnerships.  They are invested in deepening their entrepreneurial culture for the long term. 

Their recent ad for the new 7 Series gives some insights as to their approach.  

https://www.youtube.com/watch?v=tdaTYc93whU

“At BMW we believe the best way to predict the future is to create it” the narrator says.  This sums up the Effectual mindset.  Successful innovation is less a product of prediction and more the outcome of a process of creation. 

Applying the Effectual mindset isn’t always easy for BMW.  True innovations can take time to gain acceptance.  This can lead to conflicts internally among managers who prefer to go after volume rather than taking the time to cultivate demand for something new.

But BMW persists in looking at their internal assets as more than just a line up of products.  They are aware that they also have an abundance of talent, experience, skills, history, and relationships that they can draw on for the next big new thing.  They mine these for ideas and assets that they can apply in new and innovative ways.  In other words – they exercise the Bird in Hand Principle of Effectuation. 

They’re also not afraid of forming partnerships with others – consumers, unrelated entities, and even competitors.  They openly solicit ideas from consumers for innovations and they have an incubator to foster start-ups in fields that are mutually beneficial.  They have a partnership with the city of Copenhagen and the public transportation network there.  They are also exploring ways they can connect with Toyota’s truck team.  These are all evidence of Effectuation’s Crazy Quilt Principle

Another Effectual principle they apply is that of Affordable Loss.  Their management has stated that they won’t fund loss leaders to compete with Silicon Valley’s start-ups.  Their innovations have to provide a short-term return horizon. 

Driving a BMW can be an exhilarating experience.  But at BMW, they know that driving the future can be even better. 

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

August is for Asking

What does it mean to “act like an entrepreneur”?  Is it a mindset?  An appetite for risk?  A way of life?  

Effectuation, defined by Dr. Saras Sarasvathy of the University of Virginia’s Darden School of Business, provides us with a process and some key principles that entrepreneurs use when creating new things.  But when pushed to distill these principles to a single element that differentiates an entrepreneurial approach from a managerial mindset, Dr. Sarasvathy speaks of one thing:  the Ask. 

Asking proficiency is viewed as the differentiator between successful and aspiring entrepreneurs.  Successful entrepreneurs ask differently and with more frequency than aspiring entrepreneurs. 

Four Elements of a Successful Entrepreneurial Ask  

1.  Ask for anything. 

Entrepreneurs don’t limit their asking to what is expected.  They push boundaries and ask for anything they think could advance their idea.  

2.  Ask openly. 

Successful entrepreneurs ask in a way that leaves an opportunity for others to co-create outcomes with them.  Rather than position their Ask for a yes or no response, skilled entrepreneurs gain comfort with ambiguity.  They leave openings for people to suggest alternatives and consider these opportunities for co-ownership in the outcome. 

3.  Ask often. 

Asking is not limited to working hours or pre-established meetings.  Expert entrepreneurs are asking for big things all the time.  Everyone they interact with becomes a potential collaborator.  They are adept at stitching networks together to maximize resources. 

4.  Ask with optimism. 

Novice entrepreneurs fear the “no”.  They are concerned with vulnerability and rejection.  Experienced entrepreneurs have asked enough that they have learned optimism.  “Yes” outcomes occur more often than expected.  Encouraged by this, their Asks become grander and more involved.  This virtuous cycle repeats itself over time.  

Asking for More – and Getting More than you Ask For

Many entrepreneurs have an “if only”. 

  • If only I could get........
  • If only I could meet........
  • If only I could convince........

A few weeks ago, I put a challenge out to the attendees of a workshop I was conducting.  I asked them to think of a “stretch” Ask – something they thought was unlikely to happen.  Then I asked them to make that Ask over the weekend and report back on their results at the next workshop session. 

When I queried them on their results, the majority of people had positive stories to share.  One particularly compelling story was from a newly formed retail company.  For their business, a recognizable Instagram handle was a must.  Unfortunately, their brand name was already taken by an individual.  He wasn’t using it for a company – it was his actual first initial and last name.  They had discovered this only recently and were disillusioned. 

Inspired by the stretch Ask assignment, they took a long shot, reached out to the individual, and asked if he would give up his name.  Shockingly, he agreed to do so.  The cost he asked for?  Nothing. 

Why did he agree to do this?  He thought the new business was cool and that it would be neat to have his name align with the new brand.  Not only did he give up his account, he volunteered to promote the new company, spreading the word about the new line.  

What Will It Take You to Ask?

August is traditionally a slower work month.  The final summer push for vacations and family time often mean a few additional moments for thinking and planning before things kick up again in September. 

If you have the time, I would encourage you to use August to advance your innovation ideas through asking.  Consider the following five steps:

  1. What is your "if only"?
  2. Form an Ask from this “if only” that could advance your idea.
  3. Pick a person who you can Ask.
  4. Make your Ask.
  5. Repeat.

As you have successes, let us know.  Sharing your success stories will drive you to ask more as well as encourage others to take their own steps. 

Make August your time for Asking. 

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

Three Innovation Missteps that Sunk Yahoo

Two guys in a trailer cluttered with pizza boxes on Stanford’s campus, crawling the Internet looking for new websites.  This is how Yahoo came to be.  It was a card catalog for the expansive information library that the World Wide Web was fast becoming.  And users quickly saw the value.  It was a fast, free way to find what one was looking for online.

Fifteen years later, Yahoo was languishing.  They had lost users, focus, and lots and lots of money.  They blamed their competition for this.  They envied Google’s sophisticated search technology.  Seeking to capture some of this magic, they hired from Google’s ranks. 

Marissa Mayer was brought in from Google to be Yahoo’s CEO in 2011.  She is a computer scientist with expertise in complex algorithms and artificial intelligence.  Her mission in this role was to reignite revenue for Yahoo. 

Unfortunately, Mayer brought a predictive mindset to the task at hand.  She attempted to pick winners and guess where the market was moving rather than create markets.  Looking at her tenure there were three primary missteps.  Had she been an effectual thinker, she might have approached these areas differently:

1. A focus on what Yahoo wasn’t instead of what they were.  

Mayer was to bring what was working in Google to Yahoo.  By adhering to this idea, she ignored a lot of what made Yahoo unique and its valuable internal assets.  Yahoo’s founding was rooted in both science and people.  They applied scientific logic to create search catalogs, but Yahoo was driven by human decision-making.  The employees felt strong ownership and saw a role for themselves in developing a catalog that made sense. 

Mayer attempted to replicate and squeeze into Yahoo a Google “best of” compilation.  This left committed Yahoo employees feeling frustrated and undervalued, diminishing their contributions over time.  It also led to the discarding of what made Yahoo unique in a quest for making them “just like”.  

2. A strategy of picking winners rather than creating markets.

Mayer went on a buying binge at Yahoo.  Polyvore, Tumblr, Summly, even a stake in the Chinese marketplace Alibaba were all purchased.  Most failed to be adequately integrated.  None were fully optimized.  

Yahoo never fully took on the role of making these acquisitions successes.  All told, these fifty-three or so acquisitions cost Yahoo about $2.5 billion – and that was more than they could afford to lose.  Mayer left Yahoo with no runway for innovation trial and error and exposed their vulnerabilities for a takeover.  

3. A “Build it and they will come” focus instead of a user, or better yet, customer, focus.

This is an area Yahoo has struggled with since its inception.  They had users – lots of them - but were late to the game with monetizing them.  Only after expense and VC pressure was applied were the initial founders focused on extracting revenue from their model.  Prior to that, Yahoo’s search cataloging was a hobby and then a free user based community.  

Yahoo never had a revenue model that captured the uniqueness of what they had to offer.  They jumped into the advertisement model since that was the main monetization path at the time.  But there was never a direct correlation between those who got the most value from the site and those who paid. 

Mayer took a predictive approach and attempted to guess what Yahoo users wanted and would pay for.  She placed some big bets.  In the end, she was wrong.  Only after they built things did they seek to monetize them, rather than constructing commitment based relationships that would guarantee revenue.  

We all know how this story ends – Verizon purchased Yahoo for $4.8 billion three days ago, on July 25, 2016.  For Mayer, the ending wasn’t all that bad.  She’s walking away with around $50 million reportedly. 

For the rest of Yahoo’s employees, their future is more uncertain.  But they have talent.  And they have networks.  If they combine this with effectual thinking, we might see some innovations from this group after all.   

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

Finding Innovation in Unexpected Places…like Sears!

Have you ever lost your keys?  You turn your house upside down looking for them?  You exhaust all possibilities?  And then find them right under your nose? 

Corporate innovation can be similar to this scenario.  Often, companies spend a lot of time and resources searching for innovation possibilities.  They scour remote recesses of their organizations.  What they miss, however, is that an innovative option might be right in front of them. 

Sears was in this situation.  Their lost item was revenue.  For years they’ve struggled, bleeding money.  Once bustling stores now frequently stand full of merchandise but absent of customers.  They changed leadership, restructured, closed stores, experimented with sales and promotions.  But there was little improvement.  Customers continued to shop elsewhere.  

It took them a long time to see that while there were many things going wrong with the company, there were some things that were going well.  And a path to profitability could be built on this existing strength.  That strength was their delivery process.  Born from their sales of large appliances, Sears had developed an infrastructure for delivering large items, installing them, and removing the originals. 

So Sears decided to extract their delivery process as a standalone service and focused on ways to leverage that capability.  The result is Innovel Solutions.  Innovel Solutions is a logistics service set up to deliver large items from big box stores to consumers.

Rebranding their delivery process enabled Sears to approach other big box stores as potential customers.  For example, a primary customer of Innovel is Costco.  Costco is a competitor to Sears in terms of large appliance sales.  But today, if a customer buys a TV from Costco, it will likely be delivered and installed in their home by Innovel (unbeknownst to customers -- a Sears logistics company!). 

Innovation Insights From Sears / Innovel

We’re used to seeing innovation examples from Apple or Google.  But what innovation insights might Sears have to offer? 

  • Innovations don’t have to be new.  They can be something that’s existed for a while or that has slowly grown over time.  In some cases, the innovative element is the creative application of a process, technology, or product - how things are taken apart, put back together, or rearranged.  Sears has been delivering large items for decades.  The innovation is in how this service is now being applied to competitors’ product delivery.
  • Innovations don’t have to be big.  They can start small.  Sears started with finding a big partner who was willing to sign on to outsource their delivery – Costco.  With the success of this relationship, other big box retailers are following.  And the more customers Innovel acquires, the more it invests in its logistics technology, improving the service over time. 
  • Innovations don’t have to be novel.  UPS already does delivery.  As does FedEx.  So why would Costco go with Innovel?  They provide more than just delivery.  They’ve added installation and removal to the process.  Each of these processes exists today as a stand-alone.  It’s the combination that’s driving this innovation success. 

For companies that are seeking innovative ideas to grow revenue – keep searching.  Novel ideas, new concepts, and creative programs are within your grasp.  But while you’re brainstorming what could be – don’t forget about what already is.  That innovation you’re looking for to drive more revenue your way…it might already be right in front of you.   

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

From Maps to Mania: Three Innovator Contradictions in Pokémon Go’s Success

In the mid 1990s, John Hanke launched his first online video game. Twenty years later, John Hanke is the entrepreneur behind an animated gaming app that has pushed augmented reality into mainstream use – Pokémon Go.

From Maps to Mania

Two decades of entrepreneurial activity set the stage for Hanke’s success. Here are three ways he used Effectuation to position himself to create a new market.

  • Hanke started with what he knew. And he stuck with his strengths. He had an interest in technology. In mapping. In coding and software development. These skills were foundational, at the heart of all of his projects.   

  • Hanke experimented. Not everything he created was a success. But Hanke wasn’t fearful about putting new ideas out into the world. He placed bets with beta versions and test runs. And then he watched what happened. He paid attention to how people were using or not using his inventions and made adjustments. He took action.  

  • Hanke cultivated partnerships. Starting with his team at Keyhole, he pulled others in to add their ideas, skills, and networks. Eventually, this willingness to partner contributed to Hanke's success at Google when they purchased Keyhole. It also laid the groundwork for his ability to navigate more complex corporate relationships when his Google spin off, Niantic Labs, developed relationships with other large stakeholders, including Nintendo.    

None of these things happened overnight. They were skills Hanke began practicing early and often. He learned from failures and missteps along the way. And he strengthened his ability to navigate increasing complexity.

What Innovators Can Learn

Innovation is not a linear path. It is rife with ambiguity, complexity, and nuance. The success of Pokémon Go shows us three contradictions that innovators have to balance in pursuit of creating new markets.  

1.) Have a big vision. Take small steps. 

Hanke saw geospatial data as having a wide range of uses. He broke his big vision into small steps. Twenty years ago he didn’t have the team, the funding, or the knowledge to bring all of his ideas to fruition. But he figured out what he could do with what he had. And he did just that.

Many entrepreneurs struggle with this. They have the big idea and immediately want to acquire each resource needed to make it happen. Instead, breaking the idea into smaller, more feasible actions allows the entrepreneur to get real world input. With each subsequent validation, people ask to contribute to the idea. No longer does the entrepreneur have to convince stakeholders to give something up. Now stakeholders willingly offer to participate.     

2.) Start with you. Grow with others.  

Hanke certainly had the skills needed to launch his first online video game. And if he wanted to innovate alone, he probably could have put out more and more advanced video games overtime.

By partnering with others, Hanke was able to take those small steps he started with and turn them into giant leaps. Each new stakeholder brings new connections, resources, and expertise to the team. The culmination can be an innovative force.   

3.) Persist. And pivot.  

Did Hanke look into a crystal ball twenty years ago and see people of all ages scurrying through the streets looking for brightly colored monsters? No. But he did see value in technology and mapping. And he pursued it.

Hanke shifted between online game design, a maps focus, and an interest in mobile technology. Pokémon Go incorporates components from all of these ventures. But the Nintendo partnership brought new means to the table, and a cultural icon – Pokémon. This presented a chance to pivot beyond the ardent gamer community and into the mainstream. And it worked.

Finding the right balance between these contradictions can be tricky. But so is tracking down a flying Dragonite or a Zapdo in Pokémon Go. That isn’t stopping millions from trying. So what’s stopping you?   

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC

Technology is Killing Innovation

No one has time for interruptions these days. We do everything we can to avoid the unexpected. Caller ID prevents unplanned conversations. ATMs eliminate superfluous face to face interactions. Amazon wish lists negate unnecessary shopping and returns. Technology has made it possible for us to get exactly what we want when we want it and the way we want it.

By reducing the possibility of encountering the unplanned, has technology diminished the ability to innovate?

Entrepreneurial research indicates that innovation is often driven by the ability to harness the unplanned to create a beneficial outcome. Two things have to be in place to support this:

  1. There has to be unplanned occurrences.
  2. People have to have the skills to leverage them in a positive way.

Dr. Saras Sarasvathy’s research on Effectuation showed that expert entrepreneurs incorporate the element of surprise to advance their ventures. They look at unanticipated events as opportunities to be exploited. In fact, they don’t just roll with the surprise, they often build on them as competitive differentiators.

For example, LL Bean turned a disastrous first product launch into their brand cornerstone by accepting all product returns, sending new, improved products as replacements, and announcing that they would always honor returns for product quality – no matter how long the customer had or used the item. This extreme level of customer service started in the early 1900s but was the platform that allowed the LL Bean company to grow a worldwide brand from a rural outpost in Maine.

Successful entrepreneurs are adept at using surprise because they exercise three characteristics:

  1. Skill. They take smart chances and put themselves in positions to encounter the unexpected. By doing so, they get comfortable with being surprised and they learn how to use it to their advantage.  
  2. Confidence. The more they practice their skill, the better they get. They can feel this. It strengthens their comfort with surprise.
  3. Optimism. Once they see some positive outcomes, they build on it. They see that this works. So they keep at it – in bigger and bolder ways.

These mutually reinforce each other.

In contrast, most corporate managers fear surprise. They do everything possible to eliminate it. From detailed risk management plans and forecasts to the simple task of team building. (Is anyone still surprised by the birthday cake in the break room???) At the office, surprise is something to be avoided and something to be feared. The longer a manager stays in corporate the more this thinking calcifies. Its contagion spreads between teams until it permeates an entire culture.

So how can corporate managers embrace surprise and use it to their innovation advantage?

  1. Acknowledge surprises. Set the tone for your team. They are watching your reaction to the unexpected and will take their behavior cues from you. Talk about your affordable loss at the outset of projects. And when the unexpected does occur, don’t immediately dismiss it. Discuss first if there is a way to leverage it positively before attempting to eliminate it.
  2. Allow room for surprises. Refrain from over-engineering processes. Not everything needs to have a defined method of operation. Just because you can standardize doesn’t mean you should. Be strategic. Understand what your team objectives are and ask what you gain and what you lose before you define a process.    

  3. Cultivate surprises. Develop growth assignments for innovators. Stretch your corporate innovators by putting them on teams outside of their technical and functional expertise where they can encounter new things. Look at lateral opportunities for high potentials. Put them in positions where they will have to react to surprises.  

Technology is removing the unplanned. But it is still possible to put yourself in situations of surprise. Classic movie fans will remember Inspector Clouseau of the Pink Panther. He paid his assistant to surprise him so that he would always be ready for the unexpected and prepared to act appropriately. Despite his bumbling ways Inspector Clouseau wisely said, “Without warning, I will attack you. In this way, I will keep you vigilant and alert.”

What are you doing to keep your surprise skills sharp? 

--Written by Sara Whiffen, Founder & Managing Partner, Insights Ignited LLC