Creativity and Risk are essential to moving an organization forward. Do you encourage calculated risk?

1. Creativity and RiskCreativity and Risk
Teresa Vise, MSc, MBATeresa Vise, MSc, MBA
Imagination is Everything. It’s theImagination is Everything. It’s the
Preview of Life’s coming Attractions.Preview of Life’s coming Attractions.
A. EinsteinA. Einstein

2. Paradox of AbundanceParadox of Abundance
 Too much time or money leads to pursuitToo much time or money leads to pursuit
of fatally flawed strategies (i.e. stuck in aof fatally flawed strategies (i.e. stuck in a
1990’s model of customer interaction)1990’s model of customer interaction)
 Overly complicated solutions overshootOverly complicated solutions overshoot
customer needs (i.e. call metrics thatcustomer needs (i.e. call metrics that
focus on feel good numbers, not bottomfocus on feel good numbers, not bottom
line results)line results)

3. Transformation Imperative:Transformation Imperative:
Change or DieChange or Die
 Bad times are goodBad times are good
 Bad times forge discipline which forcesBad times forge discipline which forces
you to impose sharper restrictions whichyou to impose sharper restrictions which
inspire creativityinspire creativity
 You are forced to do things differentlyYou are forced to do things differently

4. OK, OK! I need to changeOK, OK! I need to change
 2008 Innosight and Forbes Survey shows2008 Innosight and Forbes Survey shows
that 80% recognize the need forthat 80% recognize the need for
transformationtransformation
 66% are actually taking action66% are actually taking action
 12% state they are making excellent12% state they are making excellent
effortsefforts

5. Can’t I keep doing what I alwaysCan’t I keep doing what I always
do?do?
 Companies rarely change through costCompanies rarely change through cost
cutting or operational effectivenesscutting or operational effectiveness
(1990’s model)(1990’s model)
 What changes then?What changes then?

6. Change the GameChange the Game
 Don’t try and best your competitorsDon’t try and best your competitors
 Change the way you address them & yourChange the way you address them & your
customers withcustomers with
ConvenienceConvenience
AccessibilityAccessibility
SimplicitySimplicity
AffordabilityAffordability

7. Experiencing a Downturn? Turn itExperiencing a Downturn? Turn it
up!up! InnoSight DataInnoSight Data
 Don’t postpone innovation for better times,Don’t postpone innovation for better times,
you might miss your windowyou might miss your window
Downturn 1979: Home Depot & Intel grewDownturn 1979: Home Depot & Intel grew
22%22%
Downturn 1989-1990: Best Buy and CiscoDownturn 1989-1990: Best Buy and Cisco
grew 33%grew 33%
Downturn 2000-2002: Google, Amazon andDownturn 2000-2002: Google, Amazon and
Research in Motion grew 32%Research in Motion grew 32%

8. Experiencing a Downturn? ShakeExperiencing a Downturn? Shake
it UP!it UP!
 With Disruptive InnovationWith Disruptive Innovation
Discount Retailing (Wal-Mart)Discount Retailing (Wal-Mart)
Digital Music (Apple)Digital Music (Apple)
Online Advertising (Google)Online Advertising (Google)
Online Auctions (E-Bay)Online Auctions (E-Bay)

9. Make the tough decisionsMake the tough decisions
 Free up resources and get rid of theFree up resources and get rid of the
weightweight
 Re-feature existing products and Re-Re-feature existing products and Re-
invent how you do thingsinvent how you do things
 Mitigate risk withMitigate risk with strategic experimentsstrategic experiments
 Appeal to “value” conscious consumersAppeal to “value” conscious consumers
 Fend off price competition by being “goodFend off price competition by being “good
enough” and affordableenough” and affordable

10. Strategic ExperimentsStrategic Experiments
 Risk is only risk when you don’t know whatRisk is only risk when you don’t know what
you are doingyou are doing
 The strategy is understanding, the tactic isThe strategy is understanding, the tactic is
trying (and possibly failing)trying (and possibly failing)
 This is how you discover…This is how you discover…
 How to do the right thingsHow to do the right things

11. Peter DruckerPeter Drucker
 Management is doing things rightManagement is doing things right
 Leadership is doing the right thingsLeadership is doing the right things

12. Front Office ChallengeFront Office Challenge
 Bridge from Operational Excellence toBridge from Operational Excellence to
your Inner Entrepreneuryour Inner Entrepreneur
 Tough times make you more conservative.Tough times make you more conservative.
Fight it! Take risk &Fight it! Take risk &
 THINK.THINK.
Field trip to see how your product is usedField trip to see how your product is used
Attend a conference in a different industryAttend a conference in a different industry
Ask more “what if?” questionsAsk more “what if?” questions

13.  Never Doubt that only a small group canNever Doubt that only a small group can
change the world. Indeed it is the onlychange the world. Indeed it is the only
thing that has.thing that has.
Margaret Mead, American Cultural AnthropologistMargaret Mead, American Cultural Anthropologist

14. Think DifferentThink Different
 http://www.youtube.com/watch?v=4oAB83Z1yhttp://www.youtube.com/watch?v=4oAB83Z1y
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 think different.docthink different.doc