HR Square - Costas Markides & Frederik Anseel

819 views

Published on

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
819
On SlideShare
0
From Embeds
0
Number of Embeds
29
Actions
Shares
0
Downloads
34
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide
  • Discussing the importance of innovation for organizations and society to survive and prosper would be a waste of your time. Everybody in this room is somehow convinced about the importance of innovation.
  • As such, governments, institutions and businesses worldwide invest various resources to spur innovation. Governments and investers provide universities, research centers and companies with financial support for research and development. Governments and instituations provide a legislative framework for the protection and commercialization of intellectual property. Et cetera, et cetera. However, we believe that one potential resource for innovation is missing.
    We believe that innovation could be leveraged by addressing more attention to the people-side of innovation. Fourty years of psychological research provides us with scientific insights on how the mindset of employees determines their creative and innovative performance and how these are leveraged or hindered by their work environment and their daily experiences at work. We believe that by tapping these scientific insights organizations could foster innovation better than they do today.
  • These correlations are based on meta-analyses aggregating research studying thousands of employees through different methods and in various settings.
    Employees experiencing intrinsic motivation for their work, or in other words, feeling passionate about their work, enjoying their work for itself and identifying with, are observed to be more innovative.
    It’s not only about enjoying what you do, people should also feels competent and have a sense of control over what they do in order to succeed in their work. In scientific terms we call this self-efficacy.
    Employees can also be extrinsically motivated, e.g. by specific goals or rewards they wish to pursue, or by the responsibilities and expectations put upon them by others. This kind of motivation can, when managed correctly, spur the innovative performance of employees as well. But, as you can see, the correlation varies highly over studies. This means that external cues or requirements that people experience in their work can also seriously hinder their motivation to engage in innovative behavior.
  • Thus, all the research together teaches us the importance of intrinsic motivation, whil external cues can motivate people even more or on the other hand hinder their motivation to be innovative. Recent research tries to get to more insights in the very nature of these motivations and in which circumstances organization leverage or break this motivation. I will discuss three studies to illustrate this.
    (Grant) Recently Adam Grant conducted the following studies. One study was conducted with security officers. The other study was conducted with the employees of a water treating plant. He asked these people to rate their intrinsic and prosocial motivation. For intrinsic motivation he presented the participants with items like “I am motivated by my work because I enjoy the work itself. They had to indicate on a scale to which degree they agreed with these statements. He also measured prosocial motivation, which is one’s motivation to help others. For this he presented the particpants with items like “I am motivated by my work because I want to help others through my work”.
    At the same time he asked the supervisors of these employees to rate their creativity in their work. In other words, he asked supervisors to rate to which degree his or her employee generates creative ideas, is a creative role model, or is always on the outlook for novel sollutions.
    In these studies he found that being passionate about their job indeed spurred the creativity of these employees, but especially when they were also focused on helping others throug their work. This means that the relationship between intrinsic motivation for work and creativity at work is stronger when individuals have a prosocial motivation.
  • (Yuan & Woodman) Survey study - Variables on the left self-rated, on the right supervisor-rated. Sample: 216 pairs of employees and their supervisor from various organizations, functions, industries…
    Verstig geen aandacht op expected gains. Dat kwam negatief uit in de plaats van positief, maar de mogelijk verklaring is nogal statistisch (suppressor effects)
  • (Zang & Bartol) Survey study – self-report (one aspect of a larger study on creative performance) – 367 employees with various functions from a major IT company in China
    Creative process engagement: employee involvement or engagement in creativity relevant cognitive processes, including (1) problem identification, (2) information searching and encoding, and (3) idea and alternative generation
    Leader encouragement for creativity: the extent of a leader’s emphasis on being creative and on actively engaging in processes that may lead to creative outcomes.
    Psychological empowerment: a process or psychological state manifested in four cognitions: meaning, competence, self-determination, and impact. Specifically, meaning concerns a sense of feeling that one’s work is personally important. Competence refers to self-efficacy, or belief in one’s ability to successfully perform tasks. Self-determination indicates perceptions of freedom to choose how to initiate and carry out tasks. Impact represents the degree to which one views one’s behaviors as making a difference in work outcomes.
  • How employees perceive their job, their co-workers, their leader and their organization as a whole affects how they will behave, and thus, how innovative their performance will be. Here are some example correlations of these 4 different aspects, again based on meta-analytical studies. In the following I will again discuss a few recent studies that give us more specific insights in how differnent aspects of the context nuance these conclusions.
  • (Shally, Gilson & Blum) – survey study – self-report, job complexity coded based Dictionnary of Occupational Titles – Telephone survey, probability sample, 1465 individuals
    Growth need strength: an individual’s desire to grow and learn in a job
    Context = organizational support for creativity: employees’ perception that their organization encourages, rewards, and recognizes creativity.
    Job complexity: the extent to which a job entails autonomy or less routine and the extent to which it allows for decision latitude
    People are most creative when each aspect is high. However, what is particular in this study is that even in routine jobs, or jobs low in complexity, people can be creative in their work if they are eager to learn and when their work context supports creativity. In other words, characteristics of the individual or the environment can compensate for less empowering jobs.
    if an individual seeks growth and learning
    from work and his/her work context supports creativity,
    the individual can overcome having a job
    that is more routine and less autonomous and find
    ways to essentially build creativity into the job.
  • (Liu, Liao, Loi) – survey study, self-report and supervisor reports - 762 team member from 108 teams, large automobile parts manufactory in the U.S.
    Abusive supervision: leaders' engagement in "the sustained display of hostile, verbal and nonverbal behaviors, excluding physical contact
    Thus, on the one hand, leaders may mistreat their subordinates to enhance subordinate performance (performance promotion motives); on the other hand, leaders may exercise abusive supervision to purposely harm subordinates (injury initiation motives).
    The negative relationship between team leader abusive supervision and team member creativity was accentuated by team member-attributed injury initiation motives but attenuated by team member—attributed performance promotion motives.
  • Since shortly, researchers always stated that positive emotions spur creativity and negative emotions hinder creativity. Meanwhile, some studies confirmed the negative link between negative emotions and creativity, while others found that sometimes negative emotions could indeed bring about creativity. Some dutch researchers tried to understand this problem and realized that not the valence of the emotion is importan, but how activating it is. Both positive and negative emotions can be high or low in activation, e.g. joy is positive and high active, while satisfaction is low active, fear is negative and high active, while sadness is low active. Now we found that both negative and positve emotions can facilitate creativity, however in a different way. Positive emotions lead to the typical out-of-the-box thinking, while negative emotions lead to a more systematic/rational creative process. Think of a situtation in which your life is in danger and you are systematically searching for a way out.
  • (Bledow, Rosing & Frese) – Survey study- self-report, people filled out each day one survey in the morning and one in the evening during one work week - heterogeneous sample of 102 full-time employees
    high creativity resulted if negative affect in the morning was followed by a decrease in negative affect and an increase in positive affect during the day.
    A dynamic perspective on the affect-creativity link thus suggests that the regulation of negative affect plays a key role for achieving high levels of creativity. On the one hand, people need to be capable of tolerating episodes of negative affect; on the other hand, the ability to down-regulate negative affect is critical
  • How employees perceive their job, their co-workers, their leader and their organization as whole affects how they will behave, and thus, how innovative their performance will be
  • (Carmeli et al.) 350 employees from various organizations, survey study with self-report only
    leaders who model knowledge sharing and collaborative behaviors and encourage information exchange, openness, and idea sharing are likely to motivate individuals to share and exchange knowledge with others within and outside the organization.
  • (Yan et al.) Survey with 232 employees from various organizations. All self-report.
    Web 2.0 = weblogs, microblogs, wikis and the virtual communities, e.g. facebook, yammer, Twitter, wikipedia, instagram, wordpress… online social networks in which people with common interests, goals, or practices interact to share information and knowledge, and engage in social interactions’’
    Flow has been conceptualized as an optimal experience while you are doing an activity. Flow is characterized by a match between perceived challenges and perceived skills. ‘‘When in flow, the individual operates at full capacity. The state is one of dynamic equilibrium’. ‘‘The balance is intrinsically fragile. If challenges begin to exceed skills, one first becomes vigilant and then anxious; if skills begin to exceed challenges, one first relaxes and then becomes bored’. Thus, ‘‘over time, the same activity may make a person feel anxious one moment, bored the next, and in a state of flow immediately afterward’’. The premise is that the nature of Web 2.0 (possibility for easily seeking and sharing knowledge) tools facilitate the experience of flow, as there is a good match between challenges and ones skills. Classic knowledge management tools, such as archives, lack these facilities and thus people do not experience flow from looking something up in the archive or add their knowledge to the archive, e.g. because the can less readily perceive whether people consult their information
  • (De Stobbeleir) 452 supervisor-employee dyads from four consulting firms. Self- and supervisor-ratings
    Creativity did not benefit from feedback monitoring. Asking people for feedback directly on ideas and problems seems to be a valuable source for obtaining insights and identifying creative solutions.
  • Survey study, 240 employees from two Slovenian companies, self- and other ratings
    Knowledge hiding led to recipricated knowledge hiding which finally led to lower creative performance
    This effect is stronger in performance climates, but attenuated in mastery climates
  • How employees’ jobs are shaped
    How employees’ development is managed
    How employees’ performance is monitored, steared and supported
    How employees are rewarded
    Influences their motivation, how they perceive their work context, their mood and the knowledge they develop and share. As such, HR has an impact on employees’ innovative performance.
  • Over Barzinga: http://wijs.be/nl/trends-inzichten/blog/detail/online-platform-voor-hr-gamification
    Creativity goals can ask for a creative outcome, but can also focus on the creative process, e.g. find three different point of views to approach this problems, read 10 articles on this topic, have a meeting with three different experts on this topic, generate 5 different solutions for this problem (mostly we just ask for one)
  • In general there is no relation between CEO pay and organization performance. Which is not surprising, as organizational performance depends on many factors.
    However, the story changes if we look at the relationship between CEO pay and the decisions CEOs take.
    We make a distinction between short-term pay (bonus related to year results of the company) and long-term pay (stock options)
    Well, we see that short-term pay is negatively related with investments in R&D. By cutting on investments in R&D CEO’s can maximize profit and increase their bonus. We see this is especially through when CEOs feel as if they are underpaid, when they are going in pension soon, or when they predict the company will soon be in a financial crisis.
    Combining short-term and long-term pay does not seem to overcome this effect. Opportunism prevails.
    We see that high tech companies do not solely relate CEO pay to financial results but also to his management decisions and results, e.g. zie slide
    Meer uitleg: http://www.cebma.org/wp-content/uploads/Velghe-Wat-moet-de-CEO-krijgen.pdf
  • HR Square - Costas Markides & Frederik Anseel

    1. 1. What if we decided to take employee- driven innovation seriously? HR Square masterclass 13-05-2014 Frederik Anseel Ghent University Contact frederik.anseel@ugent.be Twitter: @fanseel Web: fanseel.be
    2. 2. “Discussing the importance of innovation would be a waste of your time” Frederik Anseel HR & Innovation – 13-05-2014
    3. 3. “The most valuable resource for innovation remains largely untapped – the people-side of innovation” Frederik Anseel HR & Innovation – 13-05-2014 “40 years of psychological research provides us with a good scientific understanding of the psychology of innovation and how to encourage it”
    4. 4. Objectives of my talk today Frederik Anseel HR & Innovation – 13-05-2014 • Share scientific insights on 4 key resources that drive employee-driven innovativion • Formulate principles that can shape an innovative work environment and daily work experiences of employees • Translate these principles in actionable practices and HR-tools for stimulating innovation
    5. 5. Employee innovation is determined by 4 resources Frederik Anseel HR & Innovation – 13-05-2014 MOTIVATIO N ENVIRONMENT MOOD EMPLOYEE INNOVATIO N KNOWLEDGE
    6. 6. (1) The motivational resource Frederik Anseel HR & Innovation – 13-05-2014 • Being passionate about work fuels innovation Passionate? Feeling competent and in control Intrinsic motivation =ρ .24, variation 25% Creative self-efficacy =ρ .33 • External incentives can foster or hinder one’s innovation It depends! Extrinsic motivation =ρ .14, variation 151%
    7. 7. It is not only about whether people like their job, it is also about whether they like to help others. I enjoy the work itself! I want to help others through my work! Generates novel, but operable work-related ideas
    8. 8. “My co-workers will think worse of me if I often try out new approaches on my job” “If I were to do something innovative, my image in the organization would be enhanced” “Coming up with creative ideas helps me do well on my job” “Investigates and secures funds needed to implement new ideas” Caring about your image does not help innovation trying new ideas to do a better job does!
    9. 9. “I consider diverse sources of information in generating new ideas” “My manager will publicly recognize those who are Creative” “I can decide on my own how to go about doing my Work” Empowered employees engage more often in creative processes when this is encouraged and valued by their supervisor.
    10. 10. I am not interested in making sure that you are here, that you are giving us so many hours a day. We need people who will deliver a final result.” “If we do not let people do things the way they do, we will never know what they are really capable of and they will just follow our boarding school rules.”
    11. 11. Frederik Anseel HR & Innovation – 13-05-2014 Principle 1 “Focus on intrinsic motivation, by fostering feelings of control and competence, and channel this motivation towards innovation by setting the right cues”
    12. 12. (2) Environmental resources Frederik Anseel HR & Innovation – 13-05-2014 • Perceptions of one’s job e.g. autonomy = .ρ 32 • Perceptions of one’s co-workers e.g. co-worker support =ρ .36 • Perceptions of one’s leader e.g. leader-member relationship =ρ .29 • Perceptions of one’s organization e.g. Supportive resources =ρ .27
    13. 13. “In my organization, creative work receives appropriate recognition and praise” “opportunities for personal growth and development are important to me” Also for people in routine jobs, recognition of creative work leads to more creative performance
    14. 14. “Desire to elicit high performance from me.” “Expresses anger at me when he/she is mad for another reason” “Desire to make me feel bad about myself.” Abusive leadership hinders creativity, but less when individuals believe their leader just wants them to perform better.
    15. 15. Frederik Anseel HR & Innovation – 13-05-2014 Principle 2 “Structure employees’ work environment in such a way that employees believe to be free and psychologically safe in their job, and supported by their co-workers, leaders and organization to innovate”
    16. 16. (3) Emotions as resources Frederik Anseel HR & Innovation – 13-05-2014 • Both positive and negative moods can facilitate innovation • Whether the mood is activating makes the difference = Dual-pathway of innovation
    17. 17. Do not solely focus on fostering positive moods. Creativity stems from a subtle interplay between positive and negative feelings.
    18. 18. Do not solely focus on fostering positive moods. Creativity stems from a subtle interplay between positive and negative feelings coupled to supervisor support
    19. 19. Frederik Anseel HR & Innovation – 13-05-2014 Principle 3 “Positive activating vibes energize employees to innovate, but do not avoid a sense of crisis or urgency”
    20. 20. (4) Knowledge as resource Frederik Anseel HR & Innovation – 13-05-2014 • Knowledge and information are key component of creativity • Emphasis on knowledge gathering, development & sharing e.g. openess =ρ .19 – Intrinsic motivation to learn =ρ .21
    21. 21. “The manager encourages members to share ideas with each other” “Interact with my colleagues in this organization to discuss suggestions and ideas” “Available for sharing experiences with people outside this organization” Internal and external knowledge sharing can spur creativity and innovation. However, leaders have an important role in encouraging and facilitating these processes.
    22. 22. “I feel that using the Web 2.0 application is fun” “When using the Web 2.0 application, I am absorbed intensely in the activity” Knowledge seeking and sharing through Web 2.0 tools contributes to employee creativity as employees experience more flow from these new tools than classic knowledge management tools
    23. 23. “How frequently do you directly ask your supervisor for feedback about your work?” By asking feedback directly on problems and ideas employees use a valuable source for creative solutions “How frequently do you pay attention to how your boss acts toward you in order to understand how he/she perceives and evaluates your work?
    24. 24. In competitive climates hiding your knowledge for others ultimately backfires on your own creativity
    25. 25. Frederik Anseel HR & Innovation – 13-05-2014 Principle 4 “No matter how much you motivate, energize and support your employees, knowledge and information are the currency of innovation. Organize for easy acces to information and fluent sharing of knowledge”
    26. 26. “HR* can apply these 4 principals through its control over: ” Frederik Anseel HR & Innovation – 13-05-2014 WORK DESIGN LEARNING & DEVELOPMENT PERFORMANCE MANAGEMENT COMPENSATION & BENEFITS INNOVATIVE MINDSET INNOVATIVE PERFORMANCE MOTIVATION ENVIRONMENT MOOD KNOWLEDGE *Today is about how to manage not about who to hire
    27. 27. HOW CAN HR INCREASE RESOURCES FOR EMPLOYEE INNOVATION THROUGH WORK DESIGN? Frederik Anseel HR & Innovation – 13-05-2014
    28. 28. Frederik Anseel HR & Innovation – 13-05-2014 FOCUS ON THE MOTIVATION AND KNOWLEDGE PRINCIPLE Customize challenging jobs that target employees passion: -Negotiate I-deals -Create an internal project market for which employees can volunteer -Allow employees freetime to work on innovative projects and set goals -Spur a prosocial climate by creating interdependency and impact -Team interdependency leads to knowledge-sharing HOW CAN HR INCREASE RESOURCES FOR EMPLOYEE INNOVATION THROUGH WORK DESIGN?
    29. 29. HOW CAN HR INCREASE THE FOUR RESOURCES THROUGH TRAINING & DEVELOPMENT? Frederik Anseel HR & Innovation – 13-05-2014
    30. 30. HOW CAN HR INCREASE THE FOUR RESOURCES THROUGH TRAINING & DEVELOPMENT? Frederik Anseel HR & Innovation – 13-05-2014 FOCUS ON THE KNOWLEDGE PRINCIPLE •Integrate challenges in people’s jobs in a strategic way in order to increase on-the-job learning •Systematically integrate after-event reviews in work as to employees can learn from their successes and failures •Integrate new professional social media in employees’ daily handling with each other www.yammer.com www.work.com www.cognistreamer.com •Train supervisors in encouraging and facilitating internal & external knowledge sharing and feedback-seeking in their team
    31. 31. HOW CAN HR INCREASE THE FOUR RESOURCES THROUGH PERFORMANCE MANAGEMENT? Frederik Anseel HR & Innovation – 13-05-2014
    32. 32. HOW CAN HR INCREASE THE FOUR RESOURCES THROUGH PERFORMANCE MANAGEMENT? Frederik Anseel HR & Innovation – 13-05-2014 FOCUS ON THE CONTEXT AND THE MOOD PRINCIPLE Facilitate progress instead of evaluating performance •Replace annual performance reviews by performance check-ins (Adobe) •Stimulate supervisors to reflect daily (checklist) on how they helped their team to make progress www.progressprinciple.com •Set creativity goals and focus both on the outcome and the process. •Psychological safety and support •Learn to capitalize on mood swings
    33. 33. HOW CAN HR APPLY THE PRINCIPLES THROUGH COMPENSATION & BENEFITS? Frederik Anseel HR & Innovation – 13-05-2014 FOCUS ON THE MOTIVATION PRINCIPLE: I. HOW SHOULD WE REWARD TOP MANAGEMENT TO FOSTER INNOVATION? II. HOW SHOULD WE REWARD EMPLOYEES TO FOSTER INNOVATION? Individually or team-wise?
    34. 34. HOW SHOULD WE REWARD TOP MANAGEMENT TO FOSTER INNOVATION? Frederik Anseel HR & Innovation – 13-05-2014 • Pay related to short-term goals: cost-cutting and less investments in R&D • Long-term benefits do not overcome this tendency • High-tech companies reward top management’s behavior and decisions, e.g. R&D expenses, new patents or product launches, milestones in innovative projects, innovation-audit
    35. 35. HOW SHOULD WE REWARD EMPLOYEES TO FOSTER INNOVATION? Individually or team-wise? Frederik Anseel HR & Innovation – 13-05-2014 Team rewarding: •Creates outcome interdependency •Stimulates information sharing •Facilitates cohesion •Enhances learning •Diminishes subgroup salience Caution: •Social loafing – alternative hybrid rewarding
    36. 36. So, what have we learned here?
    37. 37. Benefit from the psychological science of innovation – Analyse your organization for motivation, work environment, mood and knowledge – Seek how to adress those in HR-practices 1. Job design 2. Learning and development 3. Performance management 4. Compensation and benefits
    38. 38. And what about recruitment and selection? Stay tuned….
    39. 39. Your management really values taking into account the customer’s opinion on the company's products and services, and spends a large amount of money every year on consumer research. One of the products that your company sells is toilet paper. You report in a meeting that consumer research revealed that customers complain about the packaging of the toilet paper. They say it is too big and not convenient to carry around. You believe a solution is needed and could create a competitive advantage. How would you proceed to find an innovative solution?
    40. 40. Questions? Frederik.anseel@ugent.be www.fanseel.be www.vigorinnovation.com www.innduce.me @fanseel @vigorinnovation
    41. 41. Promoting Innovation in Our Organisations Professor Costas Markides London Business School
    42. 42. Possible Answer #1
    43. 43. Consider this simple exercise: • Add all the numbers from 1 to 100 and tell me the sum total (in one minute).
    44. 44. My first question to you: • How many of you gave up?
    45. 45. My second question to you: • Who came up with the answer?
    46. 46. Who got the answer? • Gauss, the best mathematician that Germany ever produced got the answer in 60 seconds in 1787 (when he was only 10 years old)! • How did he do it?
    47. 47. The difference: • Most people say: “My God, this is impossible to solve in one minute”
    48. 48. The difference: • Most people say: “My God, this is impossible to solve in one minute” • Gauss said: “My God, this is impossible to solve in one minute like that.”
    49. 49. The difference: • Most people blame the task we gave them. This leads them to give up. • Gauss blamed the way he was trying to solve the task. (that is, his methodology). This led him to questioning.
    50. 50. Please Note: • He did not innovate because we asked him to “be innovative” or to “think outside the box”! • He innovated because he questioned his methodology
    51. 51. Unconventional Idea: • Innovation is NOT an end in itself; • It is the by-product of something else = the questioning of how to achieve a really stretch objective that people bought into)
    52. 52. Another way of Saying this: • Give your people a really stretch goal; AND • Sell it to them to win their emotional commitment to this goal
    53. 53. In General: • If you give your people a really stretch goal; AND • Sell it to them to win their emotional commitment to the goal; THEN • They will begin questioning the way they are trying to achieve this goal. • This questioning may lead to Innovation.
    54. 54. What determines success: • Is not the sexiness of the stretch goal! • It is whether you succeeded in “selling it” to your people.
    55. 55. Example: • President Kennedy (or Steve Jobs) versus Costas Markides.
    56. 56. HOW TO WIN EMOTIONAL COMMITMENT I KNOW I UNDERSTAND YES, I THINK I CAN I WILL
    57. 57. This sounds difficult! • Any other ways in which we can promote innovation in our organisations?
    58. 58. Possible Answer #2
    59. 59. Example: • “Eat Healthy” Campaign in the USA…
    60. 60. The Results: • Six months later, the campaign proved to be a total failure. • Why?
    61. 61. Why? • Because (believe it or not) the statement: “Eat healthy” is NOT clear enough! • The options are limitless and this leads to decision paralysis.
    62. 62. Same principle for many things! • We need to “cut our costs” • We need to become more customer-centric • We need to change • We need to become more innovative
    63. 63. First Principle to Know • Principle #1: What often looks like resistance to change is actually lack of clarity
    64. 64. Therefore: • Don’t tell your people: “We need to be innovative” or “we need to think outside the box”!
    65. 65. Instead:Focus on Behaviors: • Certain behaviors are associated with innovation. • Therefore, encourage everybody in your organisation to behave like this on a daily basis…
    66. 66. What Behaviors Promote Innovation? • Jean Paul Gaillard at Nespresso in 1992-1993.
    67. 67. The moral of the story: • Innovation requires that someone takes ownership of the idea; • Innovation requires that you stick your neck out.
    68. 68. Other Behaviors: • Jean Paul Gaillard at Nespresso in 1992-1993. • Selling shoe polish at Sara Lee
    69. 69. The moral of the story: • Innovation requires that you get out of your office and observe the customer personally.
    70. 70. Other Behaviors: • Jean Paul Gaillard at Nespresso in 1992-1993. • Selling shoe polish at Sara Lee • Arthur Fry’s discovery of the Post-It note at 3M
    71. 71. The moral of the story: • Innovation requires that you bypass the constraints that the organisation puts around you in a creative way.
    72. 72. Other Behaviors: • Jean Paul Gaillard at Nespresso in 1992-1993. • Selling shoe polish at Sara Lee • Arthur Fry’s discovery of the Post-It note at 3M • The introduction of tabloid-sized newspaper by the Guardian
    73. 73. The moral of the story: • Innovation requires that we question the things we take for granted. • Such as: why pay all this money to shave?
    74. 74. The Dollar Shave Club
    75. 75. Other Behaviors: • Jean Paul Gaillard at Nespresso in 1992- 1993. • Selling shoe polish at Sara Lee • Arthur Fry’s discovery of the Post-It note at 3M • The introduction of tabloid-sized newspaper by the Guardian • Unilever’s fiasco with Omo Power
    76. 76. The moral of the story: • Innovation requires experimentation • Allow your people to try things without fear of failure.
    77. 77. And so on: • Start out by identifying what behaviors you’d want from every single employee in your organisation.
    78. 78. Such As: • Question the things we take for granted; Question everything. • Try things out (without fear of failure) • Be willing to stick your neck out. Take ownership of new ideas. • Look outside your industry for ideas. • Go to the customer and observe… • Cooperate beyond your silos. • Think strategically and be proactive • Take the initiative
    79. 79. Unfortunately: • Identifying the behaviors you want from everybody is important but not enough! • People will not behave like this even when you make it very clear to them that you expect these behaviors from them.
    80. 80. Why Not? • Why is it that people do not follow the behaviors that will get us innovation? • There are two major reasons for it:
    81. 81. First: 1. An unsupportive Organizational Environment.
    82. 82. Let’s Try a Simple Exercise You have a cake and a knife. You are allowed to cut the cake four times in straight lines. What is the maximum number of pieces that you could cut the cake into (in one minute)?
    83. 83. It is not 8 Pieces!
    84. 84. It is Not Eleven Pieces! 1 2 3 4 5 6 8 7 9 10 11
    85. 85. It is Not Twelve Pieces!
    86. 86. It is Not Sixteen Pieces! Cut the cake into two pieces. Put one piece on top of the other and cut in two again. Put all pieces on top of each other and cut in two again. Put all pieces on top of each other and cut in two again. 24 = 16 times
    87. 87. More Importantly: • Why do most people try to solve this exercise individually? • What explains this behavior?
    88. 88. What Determines Behaviors? Solving the exercise individually Time-pressure Mindsets, assumptions, beliefs Psychological pressures Structure Incentives
    89. 89. A Key Management Principle: • The Underlying Environment determines how people behave (much more than we’d like to believe).
    90. 90. What happens: • We keep telling people to “Question Everything” but the moment anybody does it, we call them troublemakers… • We keep telling people to “Try things out” but the moment they fail, we fire them • We keep telling people to “Stick their neck out” but when they do it, we chop it off!
    91. 91. Downtown Calcutta Versus Downtown Fontainebleau What Drives Behaviours in Organizations? Sumantra Ghoshal
    92. 92. Second Principle to Know: • Principle #2: What often looks like a people problem is actually a situation (environment) problem.
    93. 93. Specifically: • At most, our personality can only explain 30% of our behaviors. • The remaining 70% is explained by the “social context” (or “situation” or “underlying environment”) in which we find ourselves.
    94. 94. The Underlying Environment How we Behave in our company How we Behave in our company Structures and Processes People, (skills, attitudes, mindsets Culture and Values Measurement and Incentives
    95. 95. The Implication of All This is: • If you want to change how your people behave, you need to change the Environment around them. • That is, create an environment that supports and promotes the behaviors you want from everybody.
    96. 96. How? • How can we create an Environment that Promotes Innovative Behaviors from everybody?
    97. 97. Children See, Children Do:
    98. 98. In Other Words: • YOU adopt the behaviors that you want all the others to adopt.
    99. 99. In addition: • Small changes in the Environment can have a big impact on how people behave. • This is known as “The Butterfly Principle”
    100. 100. The Butterfly Principle: • It is the basis of the book NUDGE • And already, countries like the UK and the US have “Nudge Departments” in their ministry of the Interior
    101. 101. For Example: • How did the UK government increase its tax revenues by £1 billion last year?
    102. 102. What does the letter say? • The deadline for submitting your taxes is January 30th . If you fail to submit on time you will be fined £500. • The deadline for submitting your taxes is January 30th . Last year, 93% of people submitted their taxes on time.
    103. 103. In Other Words: • Advertise the behaviors you want and encourage people to conform to these behaviors.
    104. 104. What You Need to Do • Tweak the Environment so as to: • Make the “right” behaviors a little bit easier • Make the “wrong” behaviors a little bit harder
    105. 105. Summary So Far: 1. Identify the behaviors that you want everybody in the company to display every day. 2. Encourage these behaviors by creating a Supporting Environment for them
    106. 106. Unfortunately • There is a second reason why our people do not follow the behaviors that will get us innovation.
    107. 107. Second Reason: 1. An unsupportive Organizational Environment. 2. All the behaviors we ask of them are the exact opposite of their “automatic” behaviors (that is their DNA)
    108. 108. Two Types of Behaviors: • Thinking Behaviors • Automatic Behaviors
    109. 109. Automatic Behaviors • We automatically behave like this without thinking.
    110. 110. Why Automatic: • Genetic (e.g. lion attacks)
    111. 111. Why Automatic: • Genetic (e.g. lion attacks) • Values (e.g. offering your seat in a bus to an elderly lady)
    112. 112. Why Automatic: • Genetic (e.g. lion attacks) • Values (e.g. offering your seat in a bus to an elderly lady) • Experience—I have done it so many times, I can do it with my eyes shut (e.g. tennis).
    113. 113. And now a test for you: • I will give you a list of behaviors. • Your task is to tell me which are our automatic behaviors (“I have done this so many times, I can do them with my eyes shut”). • Ready?
    114. 114. Which is the automatic behavior? • Thinking outside the box versus conforming to what everybody does.
    115. 115. An academic study by Professor George Land on Divergent Thinking and Schools • Who has the ability to think in a divergent way (a pre-requisite for creativity)? • Anybody who scores 10/10 is called a genius in creativity
    116. 116. Divergent Thinking and Schools • 3-5 year old kids:
    117. 117. Divergent Thinking and Schools • 3-5 year old kids: 98% score as genius
    118. 118. Divergent Thinking and Schools • 3-5 year old kids: 98% score as genius • 8-10 year olds: 32%
    119. 119. Divergent Thinking and Schools • 3-5 year old kids: 98% score as genius • 8-10 year olds: 32% • 13-15 year olds: 10%
    120. 120. Divergent Thinking and Schools • 3-5 year old kids: 98% score as genius • 8-10 year olds: 32% • 13-15 year olds: 10% • 2,000 adults 25+ year old: 2%
    121. 121. As Einstein said: • It’s a miracle that curiosity survives formal education.
    122. 122. Conformity in Action:
    123. 123. Which is the automatic behavior? • Cooperate versus being competitive. • (example: the arm-wrestling exercise)
    124. 124. Which is the automatic behavior? • Take the initiative versus social loafing. • (consider this video)
    125. 125. It Happened in New York:
    126. 126. Which is the automatic behavior? • Experiment versus analysing and searching for the one best solution.
    127. 127. Say versus Do Automatic Behaviors What we ask you Conformity Stick your neck out Competitive Cooperate Search for best solution Experiment Social Loaf Take the initiative Conform Think outside the box
    128. 128. Message: • Most of the behaviors that we ask our people to follow (for innovation) are the exact opposite of what their automatic behaviors.
    129. 129. What wins out? • A few hours of our boss (or teacher) telling us what we “should” do? • Versus 40-50 years of experience teaching us what is “good” for us?
    130. 130. The sad truth: • We keep telling you: “these are the behaviors that we want from you” • These behaviors all sound “common sense” and “easy”. • But the sad truth is that you spent the last 40 years of your life at home, school and work learning the exact opposite behaviors!
    131. 131. Third Principle to Know • Principle #3: What often looks like laziness to is actually emotional exhaustion.
    132. 132. What Does This Imply? • Go Beyond Telling People: Analytical appeals are not enough! • It’s tempting to prepare a powerpoint presentation, listing the things you want from your people— it will not work!
    133. 133. What We Need to Do: • If telling people that these are the behaviors we want from them is not enough, how then can we get the “proper” behaviors out of our employees?
    134. 134. Answer: • To get people to change their automatic behaviors, you will need to make the need for change emotional.
    135. 135. An Analogy • Psychologists have an analogy for this: The Rider and the Elephant
    136. 136. The Rider and the Elephant (Haidt, 2006) • The Rider: • Rational, Cool Cognitive • Knows what we should do • Holds the reins and seems to be in control • The Elephant: • Emotional, Hot • Larger and more powerful • Motivated by what we want (comfort, peace and quiet, ice cream)
    137. 137. How Can you Make the need for Change Emotional? 1. Things you see are more likely to evoke emotions than things you read
    138. 138. Make it Emotional
    139. 139. Make it Emotional: Free Hugs
    140. 140. How Can you Make the need for Change Emotional? 1. Things you see are more likely to evoke emotions than things you read; 2. Stories (and how you tell them) are more likely to evoke emotion than a presentation.
    141. 141. Power of stories Ignoring the evidence in favour of the story – a medical example Source: Freymuth and Ronan, Modeling Patient Decision-Making: The Role of Base-Rate and Anecdotal Information, Journal of Clinical Psychology in Medical Settings 149 Negative story Positive story Treatment A 90% effective Treatment B 30% effective ‘Base rate information’
    142. 142. Power of stories Ignoring the evidence in favour of the story – a medical example Source: Freymuth and Ronan, Modeling Patient Decision-Making: The Role of Base-Rate and Anecdotal Information, Journal of Clinical Psychology in Medical Settings 150 Negative story Positive story 88%Treatment A 90% effective Treatment B 30% effective ‘Base rate information’
    143. 143. Power of stories Ignoring the evidence in favour of the story – a medical example Source: Freymuth and Ronan, Modeling Patient Decision-Making: The Role of Base-Rate and Anecdotal Information, Journal of Clinical Psychology in Medical Settings 151 Negative story Positive story 39% 88%Treatment A 90% effective Treatment B 30% effective ‘Base rate information’
    144. 144. Power of stories Ignoring the evidence in favour of the story – a medical example Source: Freymuth and Ronan, Modeling Patient Decision-Making: The Role of Base-Rate and Anecdotal Information, Journal of Clinical Psychology in Medical Settings 152 Negative story Positive story 39% 88%Treatment A 90% effective Treatment B 30% effective ‘Base rate information’ 7%
    145. 145. Power of stories Ignoring the evidence in favour of the story – a medical example Source: Freymuth and Ronan, Modeling Patient Decision-Making: The Role of Base-Rate and Anecdotal Information, Journal of Clinical Psychology in Medical Settings 153 Negative story Positive story 39% 88%Treatment A 90% effective Treatment B 30% effective ‘Base rate information’ 78%7%
    146. 146. The Power of Stories Prosecution Facts Facts Story Story Defense Source: N. Pennington and R. Hastie: “Explanation-Based Decision Making”, Journal of Experimental Psychology: Learning, Memory and Cognition, 1998
    147. 147. The Power of Stories 63% 59% Prosecution Facts Facts Story Story Defense Source: N. Pennington and R. Hastie: “Explanation-Based Decision Making”, Journal of Experimental Psychology: Learning, Memory and Cognition, 1998
    148. 148. The Power of Stories 63% 78% 59% Prosecution Facts Facts Story Story Defense Source: N. Pennington and R. Hastie: “Explanation-Based Decision Making”, Journal of Experimental Psychology: Learning, Memory and Cognition, 1998
    149. 149. The Power of Stories 63% 78% 31% 59% Prosecution Facts Facts Story Story Defense RESULT: A near 50% swing in the number of people saying someone is guilty of first-degree murder based on whether a story was told or not.
    150. 150. How Can you Make the need for Change Emotional? 1. Things you see are more likely to evoke emotions than things you read; 2. Stories (and how you tell them) are more likely to evoke emotion than a presentation. 3. How do you frame the need for change?
    151. 151. For Example: Can you think of a word? -- A N Y
    152. 152. For Example: Can you think of a word? MA N Y
    153. 153. For Example: Can you think of a word? MA N Y --ENY
    154. 154. Possible Signs: • Can you please help a blind man? • I am blind. Please help me feed my children • Is it a sunny day? I am blind • It is springtime and I am blind • I am blind and it’s springtime
    155. 155. Possible Signs: • Can you please help a blind man? • I am blind. Please help me feed my children • Is it a sunny day? I am blind • It is springtime and I am blind • I am blind and it’s springtime
    156. 156. Anchoring • What comes first “anchors” the mind to it. • Everything that comes after it is evaluated relative to what you said or did before. • Therefore: Put it in a context so that whatever you say afterwards shines.
    157. 157. Agenda Can you use “symbolic actions” to reinforce your message? Can you generate momentum (for the change you want) through early victories that you celebrate with your team? Can you “advertise” the “right” behaviors you expect from people? Can you make them feel “special” for doing what you want them to do? Make it Emotional: What else?
    158. 158. Summary: The 3 strategies • Provide Clarity • Tweak the Environment • Make the need for change emotional
    159. 159. Possible Answer #3
    160. 160. Who wants to be a millionaire: 169 Source: Jeff Howe, Crowdsourcing: How the Power of the Crowd is Driving the Future of Business. Phone a friend: Ask the audience:
    161. 161. You don’t have to think of everything 170 Source: Jeff Howe, Crowdsourcing: How the Power of the Crowd is Driving the Future of Business. Phone a friend: 65% Ask the audience:
    162. 162. You don’t have to think of everything 171 Source: Jeff Howe, Crowdsourcing: How the Power of the Crowd is Driving the Future of Business. Phone a friend: 65% Ask the audience: 91%
    163. 163. Practice Open Innovation: • You do not have to discover everything in life! • Ask others for ideas and solutions to problems—the world is your oyster.
    164. 164. Putting the idea into practice: • The strategy of “Connect and Develop” by P&G. • P&G Mission (2001): “Fifty percent of all new discoveries in P&G must come from outside P&G”
    165. 165. Summary: 3 Ideas • “Stretch” your people into active questioning. • Encourage the behaviors associated with innovation; • Practice Open Innovation
    166. 166. In Conclusion: • Lots of Things to Think About so let me finish with one last thought.
    167. 167. The Knowledge - Doing Gap Time B Profits A
    168. 168. Overall:  Everybody knows  Only 1% do…
    169. 169. Therefore: • Seize the moment! • The future belongs to those who dare take chances!

    ×