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Anyone who has pursued a strategic innovation knows how difficult it can be to win internal support for even the most attractive opportunity. This is largely due to the fact that new offerings and ...

Anyone who has pursued a strategic innovation knows how difficult it can be to win internal support for even the most attractive opportunity. This is largely due to the fact that new offerings and business models are unfamiliar to -- and often cause discomfort among -- those within the organization. But companies that learn to effectively balance their analytical and emotional reactions to new opportunities are best able to assess and pursue them successfully. In this white paper, Inovo CEO Larry Schmitt explores a new paradigm for strategic innovation -- iterative deepening -- that embraces this duality of thinking and feeling and helps innovators learn to manage it effectively.

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    White paper   the thinking-feeling organization (dec. 2013) final White paper the thinking-feeling organization (dec. 2013) final Document Transcript

    • THE THINKING-FEELING ORGANIZATION A New Paradigm for Strategic Innovation By Larry Schmitt, Ph.D. December 2013
    •                         Copyright  ©  2013  by  The  Inovo  Group,  LLC   All  rights  reserved.   www.TheInovoGroup.com  
    • THE THINKING-FEELING ORGANIZATION A New Paradigm for Strategic Innovation G   ather  any  group  of  innovators  and  ask  what  one  of  the  hardest  parts  of  their  job  is,  and   they   are   likely   to   tell   you   it's   convincing   the   rest   of   the   organization   the   opportunity   is   a   good  idea  to  pursue.  Those  within  organizations  who  are  directly  involved  in  the  front-­‐ end  of  the  innovation  process  face  two  daunting  challenges:  understanding  ambiguous  signs  of   future   demand   and   rationalizing   future   designs   to   meet   it   and,   perhaps   even   more   difficult,   convincing  the  rest  of  the  organization  why  this  innovation  will  be  good  for  the  company.     New  offerings  and  business  models  are  unfamiliar  –   by   definition   they   are   different,   even   radical   or   disruptive  –   not   just   for   the   ultimate   customer   but   for   the   organization   creating   them,   too.   This   prospect   of   change   makes   the   organization   "uncomfortable,"   and   discomfort   can   manifest   in   many   ways.   Most   of   these,   as   you   might   imagine,   are   detrimental   to   good   decision   making.     Strategic  opportunities  present  a   conundrum.  They,  and  all  the   uneasiness,  fear  and  challenges   they  generate,  are  critical  if  an   organization  is  to  not  only   survive  but  thrive.   Discomfort   is   exacerbated   when   the   opportunities   under   consideration   are   strategic,   that   is,   of   such   complexity   and   impact   as   to   require   the   organization  to  change  in  meaningful  ways.  Strategic  opportunities  present  a  conundrum:  They,   and  all  the  uneasiness,  fear  and  challenges  they  generate,  are  critical  if  an  organization  not  only   is  to  survive  but  thrive.  Incremental,  sustaining  innovations  also  contribute  to  an  organization's   survival  –  but  only  for  so  long.     Especially   critical   to   strategic   innovation   is   the   need   to   acknowledge   and   productively   channel  the  strong  emotional  reactions  strategic  opportunities  generate  within  an  organization.   Although   most   companies   have   systems   and   processes   in   place   for   "thinking"   about   new   opportunities,  few  if  any  have  a  systematic  way  to  "feel"  about  them.  On  an  individual  level,  we   know   this   magic   combination   of   thinking   and   feeling   as   intuition,   and   leaders   of   the   Amazons,   Apples  and  Googles  of  the  world  demonstrate  extraordinary  intuition  that  accelerates  strategic   innovation.   But   not   all   organizations   have   such   a   singular   presence   and   so,   for   these   organizations,  a  structured  system  that  lets  both  reason  and  emotion  interact  in  productive  and   effective  ways  is  a  necessity.     The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 1
    •   The  Case  for  Thinking  and  Feeling   Half  our  mistakes  in  life  arise  from  feeling  where  we  ought  to  think,                                                                                 and  thinking  where  we  ought  to  feel.     –  John  Churton  Collins   We  as  individuals  are  bound  by  internal  constraints,  even  as  we  actively  seek  the  new.  Our   experience  and  perspectives  limit  our  mental  models,  thoughts  and  decisions  in  ways  we  do  not   necessarily  realize  or  control.  If  we  do  realize  the  constraints,  we  likely  seek  ways  to  unfetter  our   capacity   for   learning   and   creativity   in   search   of   the   new   thing   that   will   transform   us   and   the   organizations  we  work  with  –  we  purposefully  explore  new  realms,  acquire  knowledge  and  seek   new   experiences.   Done   well,   these   activities   challenge   our   existing   world   views.i  But   we   are   human.  We  are  bound  by  both  rationality  and  emotionality.  We  crave  change  but  are  wary  of  the   new.   We   say   we   love   creativity,   but   we   avoid   uncertainty. ii  We   demand   statistics   and   spreadsheets,   but   we   are   suspicious   of   their   conclusions.   We   have   numerous   cognitive   deficiencies,iii  we  naturally  tend  to  believe  that  which  reinforces  our  own  existing  perspectivesiv   and  we  want  to  express  our  individualism  and  be  a  member  of  a  communityv.   One   of   the   most   powerful   communities,   when   it   comes   to   instilling   norms   of   behavior   and   thought   (i.e.,   a   culture),   is   the   corporation.   The   things   corporations   love   and   that   create   their   distinct   cultures   –   missions,   visions,   strategy,   processes,   accountability,   etc.   –   also   create   constraints,   those   explicit   and   implicit   rules   that   individuals   within   organizations   live   by.   These   constraints   are   necessary   for   immediate   performance   but   are   usually   antithetical   to   transformational   growth.   Enlightened   organizations,   and   the   innovators   who   work   in   them,   continually   challenge   orthodoxy   and   aspects   of   embedded   culture   that   constrain   the   organization.   They   understand   this   is   a   must   in   order   to   find   new   opportunities   to   transform   and   evolve.  The  alternative,  these  innovators  realize,  is  to  shrink  and,  eventually,  die.   What  It  Means  for  an  Organization  to  Think  and  Feel   Academics,  business  leaders  and  other  thought  leaders  have  written  a  lot  over  the  past  two   decades  about  the  learning  organization  and  knowledge-­‐creating  companies.vi  Now,  it  is  time  to   go  further.  In  the  face  of  the  inherent  complexity,  ambiguity  and  uncertainty  strategic  innovation   brings,   organizations   must   not   only   learn   but   also   "think"   about   what   has   been   learned   and   created  and,  here  is  the  radical  new  idea:  to  "feel"  about  what  has  been  learned  and  created.     All  organizations,  but  especially  companies  needing  to  innovate,  must  develop  the  means  to   think   about   new   opportunities   –   with   all   of   their   requisite   spreadsheets   and   predictive   analysis   –   and   also   to   feel   about   new   opportunities,   including   the   emotions   they   elicit.   We   as   individuals   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 2
    • know   what   it   means   to   think   and   feel,   although   often   we   are   not   consciously   aware   of   the   interaction.   And   what   determines   how   an   organization   as   a   whole   behaves   toward   new   strategic   opportunities   is   the   collective   effect   of   individuals,   acting   on   behalf   of   the   organization   and   in   accordance  with  its  culture  and  mission.   Several  years  ago,  the  innovation  team  of  a  Fortune  50  company  initiated  a  project  to  focus   specifically   on   business   model   innovations   in   the   domain   of   heating   and   cooling,   which   held   a   great   deal   of   interest   and   promise.   The   ground   rules   for   this   opportunity   discovery   project   stipulated  that  no  new  technology  could  be  considered;   any   opportunity   had   to   utilize   existing   and   proven   technology.   One   of   the   opportunities   the   team   During  the  genesis  of  a  strategic   discovered   and   developed   at   the   conceptual   level   opportunity,  there  are  too  many   involved   increasing   the   adoption   of   ground   source   places  where  the  journey  can  be   heat   pump   solutions   for   certain   types   of   buildings.   The   derailed  by  decisions  based   technology   was   well   developed.   A   supply   and   service   primarily  on  emotional  factors,   and  likewise,  by  decisions  based   infrastructure   existed.   The   benefits   of   the   technology   solely  on  reason.   had   been   well   established   and   recognized.   Still,   the   market   had   yet   to   take   off.   The   team   discovered   the   systemic   reasons   for   this   and   developed   solutions   to   overcome   the   barriers,   but   the   solutions   involved   significant   changes   to   the   existing   value   network.  At  this  stage  of  opportunity  development,  the  analysis  clearly  indicated  a  next  step  was   warranted.  This  meant  further  study  and  experimentation  but  not  a  large  financial  investment.     When  the  team  presented  this  opportunity,  the  executives  in  the  room  listened  attentively,   asked  probing  questions,  acknowledged  the  value  equations  and  agreed  on  the  potential.  They   were  complimentary  in  their  assessment  of  the  work  done.  Then  one  executive  added,  "But  this   is  just  not  us."  And  that  was  the  end  of  that.     "But  this  is  just  not  us"  was  an  emotional  response,  and  it  trumped  all  of  the  reasoning,  logic   and  analysis  that  went  into  determining  that  the  opportunity  was  worth  a  minor  investment  to   test   some   assumptions.   The   opportunity   made   the   executives   uncomfortable.   It   didn’t   fit   with   their  model  of  what  they  felt  the  company  should  be  or  do.  There  was  too  much  uncertainty,  and   they   responded   in   a   way   that   in   retrospect   was   not   surprising.   In   the   absence   of   a   paradigm   that   addresses  both  the  rational  and  emotional  dynamics  within  an  organization,  a  company  doesn’t   have   the   proper   means   to   both   think   and   feel   and   to   integrate   these   perfectly   valid   ways   of   assessing   an   opportunity.   During   the   genesis   of   a   strategic   opportunity,   there   are   too   many   places  where  the  journey  can  be  derailed  by  decisions  based  primarily  on  emotional  factors  like   this  one  was,  and  likewise,  by  decisions  based  solely  on  reason.   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 3
    • By  contrast,  it’s  instructive  to  look  at  three  technology   giants   widely   admired   for   innovativeness   –   Apple,   Google   and   Amazon   –   to   see   how   both   thinking   and   feeling   play   into  their  ability  to  innovate.     Jobs'  decision  was  not  based   on  massive  amounts  of  data   about  consumer  preferences.   In  fact,  such  data  surely   would  have  pointed  to  the   opposite  conclusion,  that   there  must  be  a  keyboard.   In  truth,  Apple  under  Steve  Jobs  was  a  company  ruled   by  intuition.  Myriad  stories  exist  about  the  way  Jobs  made   decisions   "instinctively."   One   of   the   most   telling   is   about   the  decision  not  to  have  a  physical  keyboard  on  the  iPhone.   From  the  Walter  Isaacson  biography  of  Jobs,vii  here’s  what   Steve  said  at  the  time:  “A  hardware  keyboard  seems  like  an  easy  solution,  but  it’s  constraining.   Think  of  all  the  innovations  we’d  be  able  to  adapt  if  we  did  the  keyboard  onscreen  with  software.   Let’s   bet   on   it,   and   then   we’ll   find   a   way   to   make   it   work.” What   is   interesting   is   that   Jobs'   decision  was  not  based  on  massive  amounts  of  data  about  consumer  preferences.  In  fact,  such   data  surely  would  have  pointed  to  the  opposite  conclusion,  that  there  must  be  a  keyboard.     The  birth  of  AdSense,  one  of  the  reasons  Google  is  so  successful,  is  another  example  of  the   equal  role  of  the  "feeling"  part  of  the  equation.  In  an  accounting  by  Steven  Levy  in  In  the  Plex,viii   Sergey  Brin’s  decision  to  purchase  Applied  Semantics,  the  company  that  developed  the  AdSense   technology,   was   based   on   his   belief   that   "this   could   be   a   two-­‐billion-­‐dollar   business,"   after   a   single  presentation  from  Applied  Semantics  executives.  When  AdSense  launched,  it  was  Google   that   purchased   the   ad   space   and   gave   it   away   to   its   existing   AdWords   advertisers   to   get   them   to   try   it.   The   decision   was   based   on   Brin’s   intuition,   the   subconscious   interplay   between   thinking   and  feeling,  which  told  him  it  would  work,  rather  than  solely  on  market  data  or  reasoned  analysis   of  advertiser  behavior.     Amazon’s   decision   to   develop   the   technology   behind   its   Elastic   Compute   Cloud   (EC2)   web   service   grew   out   of   necessity,   to   support   its   online   retail   business.   The   decision   to   open   this   service  to  the  world  was,  however,  anything  but  a  foregone  conclusion.  Early  on  (in  2003),  Jeff   Bezos   became   interested   in   this   idea   and   requested   a   write-­‐up   describing   it.   Based   on   the   information  he  received,  he  pushed  for  making  the  service  available,  not  just  to  Amazon,  but  also   to  anyone  in  the  B2B  space,  turning  it  into  a  business.  According  to  one  of  the  developers,ix  well   before  the  service  was  available  "…  we  produced  a  ‘press  release’  and  a  FAQ  to  further  detail  the   how   and   why   of   what   would   become   EC2.”   Bezos   (and   others   at   Amazon)   not   only   thought   through   the   EC2   opportunity;   they   realized   the   company   needed   to   communicate   with   its   future   internal   and   external   customers   in   ways   that   let   them  feel   what   EC2   was,   how   it   fit   Amazon,   and   how  it  could  transform  the  company.     The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 4
    •   These   three   examples   illustrate   how   even   the   most   innovative,   hi-­‐tech,   data-­‐driven   companies   respond   to   new   opportunities   both   rationally   and   emotionally,   how   they   think   and   feel.   All   three   have   intuitive,   charismatic   leaders,   who   have   internalized   their   ability   –   in   an   instinctual  way  –  to  combine  reason  and  emotion.  We  as  individuals  know  this  as  intuition.  These   three  leaders  have  honed  deep  intuition  about  their  customers  that  transcends  existing  industry   or  market  segments  and  they  have  the  authority  and  the  will  to  transform  their  organizations  as   necessary.     Intuition,   that   delicate   balance   of   thinking   and   An  organization  not  only         feeling,   plays   a   major   role   in   how   organizational   creates  and  shapes  new   decisions   are   made,   especially   those   that   involve   an   opportunities  but  also,   uncertain  future.  In  the  hands  of  a  Jobs,  Bezos  or  Brin,  it   particularly  in  the  case  of   can  be  a  powerful  force.  But  not  all  organizations  have   strategic  opportunities,  is     a   leader   with   such   intuition   or  who   is   involved   in   such   a   shaped  by  the  opportunity.                   direct   way   in   the   details   of   the   offering   design   and   It  goes  both  ways.  It  is  not   experience.   For   these   organizations,   a   structured   comfortable.  Yet  it  is  exactly   system   that   lets   both   reason   and   emotion   interact   in   what  organizations  must                           productive  and  effective  ways  throughout  the  strategic   do  if  they  are  to  be                 innovation   process   is   essential.   That's   because   an   successful  in  the  future.   organization   not   only   creates   and   shapes   new   opportunities   but   also,   particularly   in   the   case   of   strategic  opportunities,  is  shaped  by  the  opportunity.  It  goes  both  ways.  It  is  not  comfortable.  Yet   it  is  exactly  what  organizations  must  do  if  they  are  to  be  successful  in  the  future.     Strategic  Innovations  –  Pushing  Boundaries  and  Creating  Discomfort   Wicked  problems  resist  mere  cleverness.    –  Andrew  Zolli   Strategic   innovation   is   the   means   of   creating   transformational   change   and   growth   of   an   organization,   and   strategic   opportunities   are   the   means   of   achieving   it.   The   nature   of   strategic   innovation   and   strategic   opportunities   has   been   discussed   extensively   elsewhere, x,xi  and   the   following   diagram   shows   the   strategic   innovation   canvas   that   can   be   used   to   assess   the   opportunities   a   company   chooses   to   pursue.   The   Constant   Risk   Boundary   represents   the   combination  of  new-­‐to-­‐the-­‐world  and  new-­‐to-­‐the-­‐company  that  the  organization  can  tolerate.     The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 5
    •   Figure  1  –  The  Strategic  Innovation  Canvas  and  the  Strategic  Boundary   By  their  nature,  strategic  opportunities  push  the  organization’s  strategic  boundary  into  new   territory  (figure  1).  While  sustaining  innovations  are  critically  important  to  a  company’s  current   health   (and   the   functioning   of   its   performance   engine),   they   need   to   be   augmented   by   innovations   that   transform   both   the   world   and   the   company   in   significant   ways.   To   succeed   at   strategic   innovation   and   the   transformational   growth   it   brings,   a   company   needs   constantly   to   push  its  strategic  boundary  outwards.  But  herein  lies  the  conundrum:  Precisely  because  strategic   opportunities   do   push   the   boundary,   they   are   inherently   unfamiliar   and   create   tremendous   uncertainty  and  discomfort.     The  essence  of  a  strategic  opportunity  can  be  antithetical  to  the  way  in  which  a  company’s   performance   engine   runs.   Characteristics   that   can   make   a   strategic   opportunity   especially   uncomfortable  for  a  performance-­‐oriented  company  include  the  following:   1. Complex   opportunities  –  The  opportunities  may  involve  a  number  of  "moving  parts"  that   require   detailed   interaction   among   multiple   parties,   not   all   of   whom   are   necessarily   within   the  organization  that  pursues  and  realizes  the  opportunity.   2. New  experiences  –   There   often   is   a   high   degree   of   ontological   uncertainty   regarding   the   opportunity.   In   other   words,   the   opportunity   creates   new   categories   or   dimensions   of   experience,   both   for   the   customer   and   for   the   organization,   that   don’t   fit   neatly   into   existing   mental  or  operational  models.   3. Weak   evidence   –   The  evidence  for  a  strategic  opportunity  may  come  in  the  form  of  weak   signals.   Often,   traditional   forms   of   market   research   –   voice   of   the   customer,   focus   groups,   surveys,   even   ethnography   –   do   not   reveal   what   does   and   does   not   motivate   a   future   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 6
    • customer.   Weak   signals   are   notoriously   difficult   to   distinguish   from   noise,   and   so   the   evidence   to   support   decisions   to   move   forward   and   invest   in   strategic   opportunities   is   often,   and  unavoidably,  ambiguous.   4. Qualitative   decisions   –   The   decisions   that   must   be   made   during   the   genesis   of   a   new   strategic  opportunity  are  usually  based  on  qualitative,  not  quantitative,  factors.  As  a  matter   of   fact,   innovators   should   view   detailed   quantitative   "evidence"   with   suspicion.   Also,   these   qualitative   decisions   are   usually   made   with   little   expertise   or   experience   because,   by   definition,   the   opportunities   should   be   pushing   the   boundaries   of   existing   organizational   culture  and  competencies.   Learning   how   to   deal   effectively   and   systematically   with   the   uncertainty   and   discomfort   inherent  in  a  strategic  opportunity  is  a  must.  The  organization  needs  to  evolve  and  adapt  in  ways   that  allow  it  to  transform  itself  and  push  boundaries  while  not  affecting  the  existing  performance   engine,  the  source  of  its  current  health.   How  Organizations  View  the  World  and  Make  Decisions   All  of  our  reasoning  ends  in  surrender  to  feeling.     –  Blaise  Pascal   Decisions   are   made   emotionally   as   much   as   they   are   made   rationally. xii  This   is   true   of   customers   as   well   as   executives,   managers   and   individual   contributors   within   organizations.   Emotion  (or  feeling)  most  certainly  enters  into  the  decisions  an  organization  makes.  In  fact,  this  is   the   problem.   The   emotions   that   are   natural   in   any   process   of   examining   something   new   and   uncertain  too  often  go  unacknowledged,  and  they  therefore  manifest  themselves  in  ad  hoc  and   unstructured  ways,  to  the  detriment  of  sound  decision  making.   To   use   the   model   presented   by   Kahneman, xiii  organizations   have   both   "System   1"   and   "System  2"  parts  to  their  "mind."  System  1  acts  instinctively  –  the  initial  emotions  that  emerge   when   presented   with   an   unfamiliar,   strategic   opportunity   are   immediate   but   often   wrong.   System   2,   the   thinking   function,   is   difficult   and   slow.   The   key   is   to   let   the   instinctual   System   1   feeling   part   of   the   organizational   mind   catch   up   with   the   System   2   thinking   part,   and   to   have   the   two   parts   complement   each   other.   Adopters   often   initially   react   negatively   or   ambivalently   to   things  they  ultimately  come  to  accept  and  even  value  greatly.xiv  This  is  true  for  organizations  as   well.   Emotional   reactions   are   usually   immediate,   but   they   can   slowly   evolve   in   more   nuanced   ways   with   sufficient   time   and   exposure   to   the   new   concepts.   This   should   be   one   key   objective   of   any  system  that  aids  decision  making  about  new,  unfamiliar  and  uncomfortable  future  options.   An  organization  needs  ways  to  explicitly  acknowledge  and  guide  thoughts  and  feelings  that   don’t  leave  emotion  to  chance.  Internal  adopters  must  come  to  understand  and  "feel"  what  the   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 7
    • opportunity   can   be   for   the   company   so   the   opportunity   can   get   a   fair   hearing   within   the   organization.   Executives   and   managers   not   only   must   think   a   decision   is   correct   based   on   a   reasoned   analysis   of   facts   and   evidence;   they   also   must   feel   the   decision   is   correct   within   the   context   of   their   own,   and   the   company’s,   experience.   Otherwise,   they   won't   support   the   opportunity  going  forward.     To  accomplish  this,  we  need  a  new  paradigm  to  acknowledge  and  integrate  the  thoughts  and   feelings   of   internal   and   external   adopters.   The   paradigm   must   include   several   key   thinking   and   feeling   categories   and   functions   that   apply   internally,   externally   and,   most   importantly,   at   the   boundary   between   them   (figure   2).   Many   tools   and   techniques   exist   to   address   the   rationality   and   irrationality   of   future   customers   (e.g.,   voice   of   the   customer,   ethnography,   personas).   Companies  are  less  versed  in  how  to  address  the  rational  and  emotional  aspects  internally,  or,  to   be   more   accurate,   it   is   the   emotional   or   feeling   aspects   of   an   opportunity   that   tend   to   be   the   most  problematic  within  organizations.     Figure  2  –  The  Thinking-­‐Feeling  Cycle  of  an  Innovation  Paradigm   The  four  quadrants  of  figure  2  define  distinct  and  complementary  actions  and  behaviors  that   the   team   undertaking   an   innovation   initiative,   and   by   implication   the   organization   the   team   belongs  to,  must  do.  All  four  are  necessary  to  be  successful  at  strategic  innovations:     • External   –   Thinking:  Extraction  and  synthesis  of  new  knowledge  as  the  foundation   for   identifying   and   creating   new   opportunities.   The   purposeful,   structured   and   thoughtful   searching   for,   discovery   and   use   of   new   knowledge   is   critical   to   all   aspects   of   opportunity  genesis.   • Internal  –  Thinking:  The  creation  of  models,  often  complex  systems  models   of  plausible  futures  and  likely  outcomes,  requires  a  reasoned  and  thoughtful   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 8
    • • • construction   to   capture   the   relevant   dynamics   of   the   opportunity's   most   important  attributes.   Internal   –   Feeling:   The   need   to   have   the   organization   "feel   good"   about   a   new   opportunity   is   accomplished   not   just   with   analysis   but   with   stories   that   let   others   within   the   organization   understand   what   the   opportunity   truly   means   to   both   the   external   adopter   and   to   the   organization   itself.   A   good   story  reveals  the  knowledge  and  empathy  behind  the  new  opportunity  and   lets  internal  stakeholders  define  their  role.   External  –  Feeling:   Understanding   experiences   and   motivations   at   a   visceral   level   is   key   to   empathizing   with   potential   and   eventual   adopters   and   influencers   and   to   seeing   the   world   through   their   eyes,   including   the   emotions  they  might  feel  and  the  thoughts  they  might  have.   The   actions   and   behaviors   associated   with   each   of   the   four   quadrants   occur   with   any   type   of   innovation   (sustaining,   strategic   or   speculative).   When   undertaken   using   a   system   of   Learn-­‐ Create-­‐Evaluate-­‐Select   activities   defined   below,   the   four   quadrants   create   a   comprehensive   framework   for   the   tools   that   an   innovation   team   should   use   when tasked   with   strategic   innovation.   With   sustaining   innovations,   the   "thinking"   Executives  and  managers  not  only   quadrants   typically   get   the   most   attention   must  think  a  decision  is  correct   because  the  "feeling"  quadrants  are  a  given.  These   based  on  a  reasoned  analysis  of   innovations  likely  "feel  right"  –  they  fit  nicely  with   facts  and  evidence;  they  also  must   the   organization,   even   if   they   use   technology   or   feel  the  decision  is  correct  within   design   that   pushes   the   envelope.   For   sustaining   the  context  of  their  own,  and  the   opportunities   implemented   by   the   performance   company’s,  experience.  Other-­‐ engine   of   the   organization,   these   four   quadrants   wise,  they  won't  support  the   are   well   travelled   and   familiar.   The   system   models   opportunity  going  forward.   and   analysis   are   well   known,   the   stories   of   the   sustaining  innovations  have  been  told  many  times   before,  with  only  slight  variation.  Even  the  external  experiences  and  knowledge  are  not  too  far   afield  from  what  the  organization  already  knows  and  does.   Speculative  innovations,  on  the  other  hand,  are  ruled  by  feeling.  These,  by  definition,  are  a   leap  of  faith  where  reason  would  say  to  tread  carefully  but  emotion  says  to  jump.  This  is  not  to   say  that  an  organization  should  never  attempt  such  opportunities.  Indeed,  some  companies  such   as  Google  have  an  explicit  charter  to  pursue  opportunities  that  significantly  stretch  or  even  break   the   strategic   boundary.   It   is   up   to   the   organization   (and   its   culture)   to   determine   if   this   is   something  it  is  willing  to  do.   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 9
    • The  picture  gets  complicated  with  a  strategic  opportunity.  System  models  and  analyses  are   likely  new  and  different.  Stories  about  the  future  are  unfamiliar  and  possibly  off-­‐putting.  Adopter   experiences   are   unlike   what   has   been   seen   before,   and   the   knowledge   being   acquired   doesn’t   readily  fit  into  existing  mental  models.  All  four  quadrants  are  equally  important  to  determining   the  success  of  a  new  strategic  opportunity.  It  is  in  these  situations  that  an  organization  needs  to   have  the  right  paradigm,  the  right  framework,  and  the  right  means  to  balance  the  four  quadrants   so  it  can  manage  the  uncomfortable.     Iterative  Deepening  as  a  Paradigm  for  Collectively  Thinking  and  Feeling   You  never  know  the  truth.  You  can  only  approach  it  and  hope  to  get  a  bit  nearer                                                                     to  it  each  time.  You  iterate  towards  the  truth.  You  don't  know  it.     –  James  Lovelock   Acknowledging   the   need   for   an   organization   to   collectively   think   and   feel   about   a   new   innovation  or  a  portfolio  of  innovations  raises  the  question  of  means.  How  does  a  company  do   this?  How  can  collective  thinking  and  feeling  about  a  new  opportunity  take  place?     The  answer  is  iterative  deepening.   The   term   "iterative   deepening"   (ID)   is   adopted   from   the   world   of   computer   science.   A   technique  to  search  impossibly  large  spaces  with  limited  resources,  ID  was  originally  introduced   by   early   developers   of   chess-­‐playing   computers,   where   the   space   of   possible   moves   is   so   large   that  a  computer  cannot  practically  examine  every  potential  move  in  any  reasonable  time  period   (i.e.,  the  limited  resource  is  computer  cycles  and  memory).  Instead,  ID  enabled  the  computer  to   efficiently   search   the   large   space   of   possible   moves   using   both   iteration   (a   search   is   run   repeatedly)  and  deepening  (the  search  goes  deeper  with  each  iteration).   The  term  ID  is  used  in  our  context  as  a  metaphor.  As  such,  it  illustrates  several  key  attributes   of  a  paradigm  that  guides  a  thinking-­‐feeling  organization  through  the  exploration  of  a  strategic   opportunity:     • • • • An  iterative  process,  i.e.,  repeated  looks  at  a  specific  concept     A  deepening  process,  i.e.,  getting  more  nuanced  and  informed     A  specific  charter,  i.e.,  a  purpose-­‐built  project  with  tangible  deliverables  and   measurable  outcomes   Limited   resources,   i.e.,   a   purpose-­‐built   team   with   a   defined   schedule   and   endpoint       Iterative   deepening   allows   an   organization   both   to   think   deeply   about   opportunities   in   order   to  understand  how  they  can  be  created  and  adopted  and  to  feel  deeply  about  opportunities  in   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 10
    • order   to   understand   how   they   will   "fit"   the   organization.   A   specific   implementation   of   the   ID   paradigm  is  described  elsewhere.xv   A   system   of   ID   can   serve   as   the   paradigm   by   which   an   organization   can   develop   effective   mechanisms  for  thinking  and  feeling  about  the  future  when  that  future  makes  the  organization   uncomfortable.  And  the  ID  paradigm  applies  all  along  the  journey,  from  initial  discovery  through   the  stages  of  development  and  execution  (using  hypothesis-­‐driven,  test-­‐and-­‐learn  approaches),   deployment  and  post-­‐launch  adaptation  by  both  the  customers  and  the  organization  itself.     Because  the  ID  paradigm  deals  with  the  challenges  strategic  opportunities  present,  it  needs   to   work   differently   than   the   system   an   organization   uses   for   its   performance   engine.   This   includes   business   divisions   focused   on   new   product   development   systems.   Systems   based   on   stage-­‐gate  or  phase-­‐gate  paradigms  make  sense  for  sustaining  innovations  but  do  not  work  well   for  strategic  innovations.     Four  fundamental  activities  support  a  system  of  ID:     1. Learning,  which  entails   o Gathering  information,  knowledge  and  insights,  no  matter  how  ambiguous  and   qualitative,  from  both  obvious  and  non-­‐obvious  sources.   o Letting   early   learning   influence   later   learning   –   the   questions   get   better   (more   focused  and  nuanced),  and  the  answers  get  better.     o Synthesizing   and   sharing   new   information   so   the   collective   understanding   is   greater  than  the  sum  of  individual  perspectives.     The   thinking   aspect   of   learning   is   exemplified   by   the   purposeful   searching   and   extraction   of   information   from   a   variety   of   sources.   The   feeling   aspect   of   learning   is   exemplified   by   conversation   and   observation   to   develop   understanding   of   and   empathy   with  others'  situations  and  motivations.   2. Creating,  which  entails   o Using   imagination   and   what   has   been   called   "deductive   tinkering"   to   create   a   wide  portfolio  of  potential  options,  be  they  future  scenarios,  new  opportunities,   designs   of   new   offerings   and   business   models   or   paths   to   market   and   deployment.     o Being  inventive  in  dealing  with  constraints  and  in  the  exploration  and  discovery   of  knowledge.     The  thinking  aspect  of  creativity  is  exemplified  by  the  use  of  tools  such  as  TRIZxvi  or   simply  purposeful  and  structured  thought  experiments.     The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 11
    • The  feeling  aspect  of  creativity  is  exemplified  by  brainstorming  and  ideation  events   that  use  group  energy  and  emotion  to  unlock  the  sub-­‐conscious.   3. Evaluating,  which  entails   o Finding   qualitative   and   quantitative   means   to   assess   ambiguous,   incomplete   and  sometimes  contradictory  information  (and  beliefs,  opinions,  perspectives).   o Identifying   internal   and   external   weak   signals,   such   as   the   "voice   of   the   dissenter"  that  needs  to  be  heard  or  the  person  with  proprietary  knowledge  the   team  is  missing.     o Constantly  identifying  and  testing  assumptions.     o Comparing  multiple  options  at  different  stages  in  the  genesis  of  an  opportunity.     o Confidence  that  the  space  of  alternatives  has  been  covered.     o Shaping  the  options  based  on  new  learning,  evidence  and  creative  energy.     The   thinking   aspect   of   evaluating   is   exemplified   by   the   purposeful   examination   of   demand  and  design  assumptions  and  the  subsequent  shaping  of  opportunities.     The  feeling  aspect  of  evaluating  is  exemplified  by  intense,  structured  debates  between  pro   and  con  sides  to  pressure-­‐test  both  facts  and  feelings  about  the  opportunity.   4. Selecting,  which  entails   o Making   decisions   about   the   new   options   that   push   boundaries   and   make   the   organization  uncomfortable.   o Creating  a  decision  balance  between  the  collected  wisdom  within  the  company   and  the  inevitable  constraints  (blinders)  that  come  with  such  collected  wisdom.   o Determining   the   next   step   in   the   opportunity’s   genesis   and   the   appropriate   allocation  of  resources.   The   thinking   aspect   of   selecting   is   exemplified   by   the   use   of   analytic   tools   to   assess   numerous   aspects   of   an   opportunity   and   produce   ratings   of   multiple   opportunities   along   several   dimensions.   The   feeling   aspects   of   an   opportunity   are   exemplified   by   wisdom-­‐of-­‐ crowd   tools   that   aggregate   the   perspectives   and   identify   how   the   organization   as   a   whole   feels  about  the  opportunities  before  them.   Of   course   these   activities   don't   occur   in   a   vacuum.   It   is   necessary   to   continuously   socialize   new   opportunities   within   the   organization.   This   is   known   as   diffusion,   and   it   helps   the   organization,  collectively,  understand  what  the  opportunities  are  all  about.  Diffusion  also  serves   to  align  the  organization,  in  the  face  of  differing  perspectives  and  opinions,  with  the  commitment   needed   to   further   develop   and   realize   the   opportunity.   The   process   of   diffusion   does   two   things:   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 12
    • It   starts   to   shape   the   opportunity,   and   it   also   begins   to   shape   the   organization   itself   in   ways   that   are  necessary  to  realize  the  opportunity's  potential.   An  Organizational  Locus  for  Thinking  and  Feeling  about  Strategic  Opportunities   For  strategic  innovation  to  happen,  there  must  be  a  locus  within  the  company  to  guide  the   organization,  including  the  performance  engine  parts,  to  think  and  feel.       Figure  3  –  The  Thinking  –  Feeling  Organization   The   locus   should   be   the   innovation   team,   the   group   of   individuals   charged   with   acting   as   the   liaison   or   channel   between   internal   adopters   and   external   adopters.   Internal   adopters   include   sponsors   and   stakeholders,   who   allocate   resources   within   the   organization;   external   adopters   include   customers,   partners   and   influencers,   who   determine   if   and   how   a   new   innovation   gets   adopted.   The   team's   work   requires   both   reasoned   thinking   and   emotional   feeling   in   equal   measure   (figure   3).   The   ID   paradigm   ensures   this   will   happen.   Lacking   such   a   paradigm,   the   team   is  usually  left  with  an  ad  hoc  process  based  upon  serendipity  and  personal  influence.   The   team   learns   in   unfamiliar,   complex   and   ambiguous   contexts   and   creates   new   strategic   opportunities.   It   diffuses   productive   thinking   and   feeling   throughout   the   organization   and   thereby   brings   the   company   along   on   its   journey   in   a   way   that   helps   the   company   "see"   and   support  a  new  opportunity,  despite  the  inherent  discomfort.  The  team  becomes,  for  a  time,  the   way  a  company  “wraps  its  head  around”  a  portfolio  of  possible  opportunities.     The   team   is   built   to   counteract   groupthink   and   the   collective   constraints   built   into   any   performance-­‐oriented   organization.   For   this   reason,   the   team   must   function   as   a   "society   of   mind."  It  should  have  many  centers  of  expertise,  each  with  its  own  view  of  the  world,  behavior,   cognitive  style  and  decision  processes.  As  the  old  cliché  says,  the  best  teams  become  more  than   the  sum  of  their  individual  parts;  they  become  the  way  in  which  the  organization  processes  and   responds  to  uncomfortable  new  opportunities.  It  is  the  team’s  purpose  to  harness  its  collective   understanding,   insight   and   wisdom   on   behalf   of   the   organization.   It   is   the   team's   purpose   to   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 13
    • become   the   buffer,   the   interface   and   the   impedance   match   between   the   organization   and   potentially  disruptive  opportunities  as  well  as  between  internal  and  external  adopters.   As  the  transformational  thinking-­‐feeling  mind  of  the  organization,  the  innovation  team  needs   to  be  purpose-­‐built  –  in  other  words,  laser-­‐focused  on  a  specific  journey  with  a  defined  charter   and   tangible   end-­‐product   (such   as   the   selection   of   one   particular   strategic   opportunity   to   be   pursued).  It  is  not  enough  to  say,  "Just  go  investigate  and  see  what  you  find."  This  is  why  many   so-­‐called   tech-­‐scouting   efforts   are,   at   best,   only   marginally  effective.     The  innovation  team  –  which  is   But  assembling  a  purpose-­‐built  team  that  can   like  an  elite  movie  production   focus   its   attention   is,   of   necessity,   time   and   crew  –  enables  the  company  to   resource   limited.   Getting   something   of   signifi-­‐ wrap  its  head  around  a  portfolio     cance   identified   quickly   and   developed   and   of  possible  opportunities.   launched   in   a   timely   manner   needs   to   happen   with  less  time  and  fewer  people  than  are  available   to   the   performance-­‐engine   side   of   the   business.   The   team   must   spend   a   sufficient   amount   of   time   on   the   internal   and   external   thinking   and   feeling,   but   not   so   much   as   to   let   the   essence   and   excitement   of   an   opportunity   wither   from   protracted  debates,  partial  decisions,  extended  analyses  or  infighting.   To   envision   how   the   team   should   function,   picture   an   elite   movie   production   crew.   The   right   people  come  together  with  a  defined  mission.  Within  a  limited  period  of  time,  they  focus  intently   on   a   specific   outcome   and,   the   idea   is,   craft   something   compelling.   This   way   of   working   is   a   natural   response   to   the   demands   of   strategic   innovation   and   will   itself   transform   the   organization.   A  Team  in  Action   In  2012,  a  diverse  team  of  10  people  undertook  an  initiative  to  help  a  major  health  insurance   and  services  company  discover  and  develop  new  strategic  opportunities  in  healthcare.  The  team   was   chartered   to   identify   opportunities   that   addressed   the   needs   and   desires   of   the   future   healthcare   provider.   This   was   broadly   defined   to   include   not   only   doctors   and   nurses   but   also   other   professional   and   non-­‐professional   providers   –   patients’   family   members,   online   communities,   dietitians,   emergency   department   managers,   etc.   –   who,   on   a   regular   basis,   influence   Americans’   health   and   wellness.   This   expanded   definition   of   "provider"   reflects   the   changing   nature   of   the   ecosystem   and   will   be   the   source   of   future   value.   The   team's   objective   was   to   identify   10   to   12   new,   strategic   opportunities   that   would   become   major   pillars   of   the   company’s  growth  initiatives  over  the  coming  decade.     During  the  five-­‐month  initiative,  the  team  generated  more  than  100  opportunity  hypotheses.   It  synthesized  a  tremendous  amount  of  information  and  knowledge,  gained  from  many  sources   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 14
    • through   in-­‐depth   interviews   (65,   with   individuals   in   20-­‐plus   different   roles   throughout   the   healthcare  ecosystem)  and  ethnographic  field  trips  (six,  to  over  20  sites).     The   team   simultaneously   undertook   a   number   of   other   activities   that   spanned   the   four   quadrants  listed  in  figure  2.  No  one  of  these  techniques,  methods  or  tools  is,  by  itself,  radical  or   transformative,   but   combined   in   a   structured   way,   as   a   framework   and   a   system   for   thinking   and   feeling   about   the   new,   they   comprise   a   powerful   paradigm   for   strategic   innovation.   Iterative   deepening  ensures  rigor,  volume,  depth,  specificity  and  alignment  of  opportunities.  Like  the  film   production   crew,   the   team   works   together   to   let   the   lead   actors,   in   our   case   the   strategic   opportunities,  be  the  best  they  can  be.     As  part  of  its  work,  the  team:   • • • • • • • • • • Held   weekly   opportunity   review   meetings   where   new   opportunities   were   presented,  questions  asked  and  voting  decisions  were  made.   Produced   a   weekly   newsletter   with   information   and   links   to   the   most   interesting  and  relevant  information  being  discovered  as  it  did  its  research.     Included   a   large   and   diverse   collection   of   participants   throughout   the   organization   in   regular   updates   about   the   opportunities   being   considered   and   provided   the   chance   for   participants   to   voice   opinions   on   the   relative   merit  of  all  opportunities.   Conducted  a  series  of  structured  ideation  session  with  team  members  and  a   diverse  collection  of  other  participants  throughout  the  organization.   Took  groups  on  field  trips  to  observe  and  interact  with  a  variety  of  people  in   organizations  throughout  the  healthcare  ecosystem.   Held   intensive   debates   on   the   opportunities   under   consideration   with   sponsors   and   influencers   throughout   the   organization,   during   which   everyone  contributed  to  shaping  the  opportunity.   Conducted   a   series   of   participatory   futuring   events   where   all   participants   (from   the   team   and   the   rest   of   the   company)   could   build   scenarios   of   plausible  futures  that  could  inform  the  new  opportunities.   Created   a   should-­‐could   canvas, xvii  among   others,   that   showed   how   the   opportunities   compared   with   each   other   along   the   dimensions   of   "should"   the  opportunity  be  done  and  "could"  the  organization  do  it.   Developed   visual   storyboards   that   depicted   the   future   experiences   that   would  be  created  if  the  opportunities  were  to  be  realized.   Conducted   an   interactive   "reveal"   of   the   top   opportunities   with   key   executives  who  had  the  authority  (and  the  expectation)  to  commit  to  funding   the  next  stage  of  opportunity  development.   The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 15
    • These   activities   all   were   designed   to   exercise   both   the   thinking   and   feeling   muscles   of   the   team   and   organization.   Through   repeated   exposure   and   interaction,   the   organization   came   to   understand   the   opportunity   concepts   while   they   were   being   formed,   which   allowed   individuals   to  weigh  in  on  what  they  felt  were  important  considerations.     In   the   end,   the   project   team   designed   a   set   of   14   strategic   opportunities   and   a   set   of   six   future   scenarios.   Six   of   the   opportunities   were   presented   in-­‐depth   to   the   client’s   Innovation   Council   (I-­‐Council),   a   group   of   senior   executives   who   sponsor   innovation   initiatives,   in   an   interactive,   multimedia   session.   The   team   had   hoped   to   win   approval   for   just   one   or   two   opportunities;  the  I-­‐Council  approved  four  for  immediate  funding.  One  of  the  senior  executives   told  the  team,  “I  haven't  seen  the  I-­‐Council  as  excited  about  a  group  of  well-­‐formed  concepts...   ever.  We  literally  couldn't  sit  down  when  we  were  deliberating”  about  which  ones  to  green  light.     Currently,   the   opportunities   and   insights   from   this   initiative   are   working   their   way   through   the  organization’s  innovation  pipeline  and  are  expected  to  help  the  company  grow  its  business   for  years  to  come.     From  Opportunity  to  Organization  and  Back  –  A  Virtuous  Cycle   If  you  don't  like  change,  you're  going  to  like  irrelevance  even  less.     –  General  Eric  Shinseki   Innovation  is  a  complex  system  of  individuals  and  organizations  acting  as  agents  of  creation   (e.g.,  companies)  and  agents  of  adoption  (e.g.,  customers).  When  organizations  are  considering   sustaining  opportunities,  the  processes,  methods  and  tools  used  by  the  performance  engine  can   be   adapted   and   used   to   great   effect.   This   is   the   situation   where   stage-­‐gate   systems   can   be   effectively  adapted  for  front-­‐end  activities.   But   when   the   objective   of   the   organization   is   to   push   its   strategic   boundary,   and   the   opportunities  of  interest  are  strategic,  the  processes  and  tools  of  the  performance  engine  break   down.   In   the   early   stages,   these   new   ideas   are   alien   and   uncomfortable;   in   the   later   stages,   corporate  "antibodies"  come  out  to  attack  because  it  becomes  increasingly  clear  the  organization   will   need   to   change.   Organizational   discomfort   becomes   prominent   unless   there   is   a   system   in   place  to  acknowledge  the  emotional  reactions  and  direct  them  in  constructive  ways.  This  is  when   innovators  must  employ  a  new  paradigm,  iterative  deepening.     Any   organization   can   implement   ID   in   order   to   purposefully   address   the   complexities   and   ambiguities   it   faces.   Instead   of   approaching   these   issues   in   an   ad   hoc   manner   or   with   a   "performance  engine"  mindset,  an  organization  can  explicitly  put  in  place  the  people,  processes,   strategies  and  governance  structures  to  constantly  push  their  strategic  boundaries  outward.     The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 16
    • The  ID  paradigm  lets  an  organization  think  and  feel  in  the  face  of  complexity,  ambiguity  and   uncertainty.   But   the   ID   paradigm,   in   order   to   be   used   by   an   organization,   needs   the   means   to   be   implemented.  In  particular,  the  following  components  need  to  be  present:   • A  purpose-­‐built  team   • A  focused  project   • The  process,  methods  and  tools  to  learn,  create,  evaluate  and  select   • A  framework  for  bringing  all  the  pieces  together   Together,   these   four   prerequisites   help   the   organization   deal   with   the   inherent   discomfort   strategic  opportunities  generate.   The  complex  dynamics  of  strategic  innovation  can  be  summarized  in  this  way:     1. In   order   to   thrive   in   the   future,   it   is   imperative   that   organizations   push   their   strategic  innovation  boundary  outward.   2. Organizations  create  strategic  opportunities  to  push  the  boundary,  and  this  creates   discomfort.     3. An   organization   needs   to   have   mechanisms   to   both   think   and   feel   to   deal   with   this   natural  discomfort.   4. Iterative   deepening   serves   as   the   paradigm   by   which   an   organization   can   collectively  think  and  feel.   The   beauty   of   establishing   a   system   based   on   the   ID   paradigm   is   that   even   while   an   organization  is  discovering,  creating,  shaping  and  designing  its  new  strategic  opportunities,  these   very  same   opportunities   are   shaping  the  organization   for  the  future.  With  a   structured  system   of   thinking   and   feeling,   the   organization   cannot   help   but   examine   and   change   its   internal   constraints,  thereby  enhancing  its  culture  and  capabilities  as  it  moves  forward.  A  virtuous  cycle  is   established:  The  organization  creates  and  shapes  new  opportunities,  and  the  new  opportunities   (re)create  and  shape  the  organization.     The   final   test   of   any   innovation   system   is   whether   an   organization   can   expand   its   strategic   boundary   in   the   face   of   the   constant   forces   at   work.   If   a   company   does   not   do   this,   it   will   be   squeezed   into   a   corner   where   it   will   be   difficult   to   thrive.   The   ability   to   create   new   opportunities   that   expand   the   strategic   boundary   is   the   measure   of   success,   and   the   capability   of   an   organi-­‐ zation  to  both  think  and  feel  using  a  system  of  iterative  deepening  is  the  means  to  get  there.       The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 17
    • Notes i         iii     iv     Done  improperly,  it  confirms  our  biases  and  reinforces  untrue  knowledge.   Mueller,  Jennifer,  et.al.;  The  Bias  Against  Creativity:  Why  People  Desire  but  Reject  Creative  Ideas;  Cornell  IRL;  2011     Kahneman,  Daniel;  Thinking  Fast  and  Slow;  Farrar,  Straus  and  Giroux;  October  25,  2011 This  is  the  established  fact  of  confirmation  bias,  that  we  filter  new  information  through  a  lens  of  what  we  currently     believe. v     Wilson,  E.  O.;  The  Social  Conquest  of  Earth;  Liveright;  April  2,  2012   vi     There  are  many  books  and  articles  on  the  topics  of  the  learning  organization  and  knowledge  creating  companies.  A   couple  classics  are  Peter  Senge’s  The  Fifth  Discipline  and  Ikujiro  Nonaka  and  Hirotaka  Takeuchi’s  The  Knowledge   Creating  Company.  Various  overviews  and  bibliographies  of  books  and  articles  on  these  subjects  can  be  found  at   the  Overseas  Development  Institute,    William  King  at  the  University  of  Pittsburgh,  and  Martin  Ryder  at  University   Colorado.   vii     Isaacson,  Walter;  Steve  Jobs;  Simon  &  Schuster;  2011   viii     Levy,  Steven;  In  The  Plex:  How  Google  Thinks,  Works,  and  Shapes  Our  Lives;  Simon  &  Schuster;  2011   ix     Black,  Benjamin;  EC2  Origins;  Blog  post;  Jan.  2009   x     Schmitt,  Larry;  Strategic  Innovation:  If  it  Feels  Comfortable,  You’re  Not  Doing  it  Right;  2012   xi     Christian,  Brian;  The  Demand-­‐Design  Tango:  Getting  from  Concept  to  Market  Launch;  2013   xii     Ariely,  Dan;  Predictably  Irrational;  HarperCollins;  June  23,  2009   xiii     Kahneman,  Daniel;  Thinking  Fast  and  Slow;  Farrar,  Straus  and  Giroux;  October  25,  2011   xiv     This  is  most  striking  in  the  arts  where  examples  like  Picasso  and  his  Les  Demoiselles  d'Avignon,  Stravinsky  and  his   Rite  of  Spring,  even  Maya  Lin’s  Vietnam  Veterans  Memorial  all  were  met  with  near  universal  initial  condemnation.   In  the  business  world  it  is  a  well-­‐researched  phenomenon  of  adoption,  exemplified  by  the  S-­‐curve  adoption  model,   that  it  can  often  take  a  long  time  to  get  to  1-­‐2%  penetration  before  even  the  most  popular  products  (e.g.,  TVs,   VCRs,  the  iPod,  etc.)  take  off.   xv     The  specific  details  of  a  system  of  Iterative  Deepening  that  lets  an  organization  collectively  think  and  feel  about  an   opportunity  are  described  in  detail  in  a  soon-­‐to-­‐be-­‐published)companion  paper:  Schmitt,  Larry;  The  Iterative   Deepening  Paradigm:  A  Path  to  Strategic  Innovation;  2013.   xvi       See  definition  of  TRIZ.   xvii     The  Should-­‐Could  canvas,  and  the  methodology  for  creating  it,  are  part  of  the  ADOPTS™  innovation  framework   developed  and  implemented  by  Inovo.  The  canvas  lets  an  organization  evaluate  an  opportunity  along  the  two   dimensions  of  “Should  the  opportunity  be  pursued  (by  anyone)?”  and  “Could  this  organization  do  it?”  Just  because   an  organization  could  do  something  doesn't  mean  it  should  do  it.  The  Should-­‐Could  tool,  along  with  other  Inovo-­‐ developed  tools,  has  been  has  been  disseminated  by  the  Corporate  Executive  Board  (CEB)  as  an  illustration  of  an   innovation  best  practice.   ii The Thinking-Feeling Organization: A New Paradigm for Strategic Innovation | 18
    •           About  The  Inovo  Group   Founded  in  2001,  Inovo  is  an  innovation  consulting  firm  based  in  Ann  Arbor,  MI,   that  helps  the  world’s  top  organizations  succeed  at  strategic  innovation.       About  the  Author   LARRY   SCHMITT,   PH.D.   is   Co-­‐Founder   and   CEO   of   The   Inovo   Group.   He   is   the   lead   architect   of   Inovo’s   theory-­‐ based   framework   and   tools,   which   Inovo   uses   with   its   Global  1000  clients  to  identify  significant  unmet  needs  and   develop   compelling   new-­‐to-­‐the-­‐world   products,   services,   and  business  models.   Larry  has  taught  innovation  at  the  University  of  Michigan’s  Medical  Innovation   Center  and  has  served  as  an  invited  guest  speaker  on  innovation  in  the  U.S.  and   India.   In   addition,   he   serves   as   a   subject   matter   expert   for   the   Industrial   Research   Institute   (IRI)’s   Research-­‐on-­‐Research   Working   Group   on   Business   Model  Innovation.   Larry  previously  served  in  technical  roles  at  General  Electric  and  Unisys,  as  well   as   in   executive   roles   at   two   successful   tech   start-­‐ups,   Applied   Intelligent   Systems   (acquired   by   Electro-­‐Scientific   Industries)   and   Intelligent   Reasoning   Systems  (acquired  by  Photon  Dynamics).  
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