innovation and risk - july 2014

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Why Innovation seldom works the way it should - why it is rejected in larger organisations...

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Page 1: Innovation and Risk - July 2014
Page 2: Innovation and Risk - July 2014

WhyNo-one Wants

CreativityPaul Iddon

Managing DirectorKernelSimpatico

19th July 2014

Page 3: Innovation and Risk - July 2014

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People Desire, but Reject Creative Ideas…. We are taught that creativity will be celebrated - if we have good ideas, we will succeed.

RUBBISH!Creativity is rarely acknowledged: Most people don’t actually like it.

Page 4: Innovation and Risk - July 2014

What does this mean?“Even people who say they are looking for creativity react negatively to creative ideas”*

It is not Overt – A bias activates as a response to reduce uncertainty - RiskIt also causes people to not even recognise a creative idea…. *The bias against creativity – why people desire but reject creative ideas University of Pennsylvania 2011

Page 5: Innovation and Risk - July 2014

What does this mean?

“In terms of decision style, most people fall short of the creative ideal … unless they are held accountable for their decision-making strategies, they tend to find the easy way out—either by not engaging in very careful thinking or by modeling the choices on the preferences of those who will be evaluating them.”

*The bias against creativity – why people desire but reject creative ideas University of Pennsylvania 2011

Page 6: Innovation and Risk - July 2014

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People are risk averse – when it comes to possible gains. Given a choice people will generally choose a 90% chance of winning £1000 over a 10% chance of winning £100,000..

Unless..They are in a losing situation where they will take risk..

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People are risk averse

The same principle applies in following the majority prevailing view…

Even if it means abandoning evident truths…

And especially when the majority view is backed by an authority figure……

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Organisations can also follow this strategy….They may celebrate innovation, but few managers are willing to take the risk…

It means breaking every ‘rule’ from recruitment to policy and investment….

Page 9: Innovation and Risk - July 2014

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Organisations can also follow this strategy…

Creativity means chaos, opposition, non-conformity, uncertainty and ‘waste’ – Risk

“Creative people do not ‘mesh well’ with the proclivities of the average person”

Page 10: Innovation and Risk - July 2014

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In Conclusion

A Cornell study makes the case that social rejection is not actually bad for the creative process—and can facilitate it….BUT in any case:

Know your organisation, your line management -know their pains – their situation

Make them look good – but not too risky

Creativity is a sliding scale – small victories – small moves

Page 11: Innovation and Risk - July 2014

Thank YouPresented by:

Paul IddonManaging DirectorKernelSimpatico UK

31 Blackfriars RdManchester M3 7AQT: +44 161 834 3935M: +44 7977 283038