Managing CreativityManaging CreativityChapter 12Chapter 12

Presented by Chase BrelandPresented by Chase Breland

3/23/113/23/11

““Weird Ideas that Work- Building Companies Weird Ideas that Work- Building Companies where Innovation is a Way of Life” where Innovation is a Way of Life” by Robert Suttonby Robert Sutton

Professor of Management Science at Stanford Engineering Professor of Management Science at Stanford Engineering School and researcher in the field of Evidence- based School and researcher in the field of Evidence- based Management.Management.

Ph.D. Sutton received his Ph.D. in Organizational Ph.D. Sutton received his Ph.D. in Organizational Psychology from The University of Michigan and has served Psychology from The University of Michigan and has served on the Stanford faculty since 1983on the Stanford faculty since 1983

He used to teach at the Haas Business School and was a He used to teach at the Haas Business School and was a Fellow at the Center for Advanced Study in the Behavioral Fellow at the Center for Advanced Study in the Behavioral Sciences during the 1986-87, 1994-95, and 2002-03 Sciences during the 1986-87, 1994-95, and 2002-03 academic yearsacademic years

Latest Publications: Latest Publications: • No Asshole Rule: Building a Civilized Workplace and Surviving No Asshole Rule: Building a Civilized Workplace and Surviving

One that Isn’t (2007)One that Isn’t (2007)• Good Boss, Bad Boss: How to be the Best…And Learn from the Good Boss, Bad Boss: How to be the Best…And Learn from the

Worst (2007)Worst (2007)

Managers who want to create innovationManagers who want to create innovation

Managers are continually working on how to deal with Managers are continually working on how to deal with stimulating new ideas, services and productsstimulating new ideas, services and products• i.e. Michael Dell (Founder of Dell Computer Corp)i.e. Michael Dell (Founder of Dell Computer Corp)

In contrast, Managers In contrast, Managers that like routines may end up stifling innovation and not even be aware of this.

Even Managers with the best of intentions may be Even Managers with the best of intentions may be destructivedestructive• i.e. Lotus Development Corp (now part of IBM)i.e. Lotus Development Corp (now part of IBM)

Best Management is Sometimes No ManagementBest Management is Sometimes No Management

Some of most innovative companies manage with:Some of most innovative companies manage with:• Soft touchSoft touch• Getting out of the wayGetting out of the way• Letting employees take charge of themselves and their jobs.Letting employees take charge of themselves and their jobs.

i.e. Gillettei.e. Gillette

Management delegates authority:Management delegates authority:• By Enhancing productivityBy Enhancing productivity• By Suggesting employee commitmentBy Suggesting employee commitment

i.e. Phil Jackson (1989-1998 Chicago Bulls Head Coach)i.e. Phil Jackson (1989-1998 Chicago Bulls Head Coach)

Innovation Means Selling not just Inventing New Innovation Means Selling not just Inventing New IdeasIdeas

All about Selling!All about Selling!

Innovators try to sell their ideas to peers and bosses firstInnovators try to sell their ideas to peers and bosses first

If an innovator cannot sell the idea or find a rep to do it, it If an innovator cannot sell the idea or find a rep to do it, it rarely goes beyond the innovators mindrarely goes beyond the innovators mind• Stanford University’s “Elevator Pitch”Stanford University’s “Elevator Pitch”

In regards to start-up companies, wealthy entrepeneurs In regards to start-up companies, wealthy entrepeneurs must convince their investors to support start-ups. must convince their investors to support start-ups. • i.e. in 1880-gas lighting vs. 12 watt bulbs of Thomas Edisoni.e. in 1880-gas lighting vs. 12 watt bulbs of Thomas Edison

Innovation Requires both Flexibility and RigidityInnovation Requires both Flexibility and Rigidity

Flexibility- need to be to able to generate different ideasFlexibility- need to be to able to generate different ideas

Rigidity- helps define problems narrowly enough so they Rigidity- helps define problems narrowly enough so they can be talked about in a constructive waycan be talked about in a constructive way

Finding a balance between Flexibility and RigidityFinding a balance between Flexibility and Rigidity• Best Strategy:Best Strategy:

1.1. Keep the problem rigid and possible solutions flexibleKeep the problem rigid and possible solutions flexible• i.e. Disneyi.e. Disney

2.2. Hold the solution constant and let problems vary (or be Hold the solution constant and let problems vary (or be flexible)flexible)• i.e. 3M and iPhonei.e. 3M and iPhone

Incite and Uncover DiscomfortIncite and Uncover Discomfort

Discomfort isn’t fun Discomfort isn’t fun • But it helps people to avoid and break out of mindless action But it helps people to avoid and break out of mindless action

• It occurs when people imagine dumb things and try to do them It occurs when people imagine dumb things and try to do them

• When people argue over their precious ideas When people argue over their precious ideas

• When employees defy bosses When employees defy bosses i.e. Oil of Olayi.e. Oil of Olay

• Many successful ideas were born after someone got upset Many successful ideas were born after someone got upset about something and then did something about it.about something and then did something about it.

Discomfort also plays another roleDiscomfort also plays another role i.e. Bicycle Seat Locki.e. Bicycle Seat Lock

Treat Everything like a Temporary ConditionTreat Everything like a Temporary Condition

When things are working well this does not mean that they When things are working well this does not mean that they will continue to work that waywill continue to work that way

Organizations need to treat everything from procedure, to Organizations need to treat everything from procedure, to product lines to teams as eventually discontinuingproduct lines to teams as eventually discontinuing

Temporary organizations are constantly disbanding to get Temporary organizations are constantly disbanding to get things done, to invent and stop mindless action. things done, to invent and stop mindless action. • i.e. Twitteri.e. Twitter

Make Process as Simple as PossibleMake Process as Simple as Possible

Law of Parsimony= make everything as simple as possible.Law of Parsimony= make everything as simple as possible.

• Focus on what matters and ignore everything elseFocus on what matters and ignore everything else

• Innovation can be simplified by reducing the number of Innovation can be simplified by reducing the number of products or services developed and sold. products or services developed and sold.

i.e. Apple Computersi.e. Apple Computers

• If everyone follows a simple vision:If everyone follows a simple vision: Speeds developmentSpeeds development Focuses effortFocuses effort Results in simpler products or servicesResults in simpler products or services

AJ Schuler’s Steps in the Process of InnovationAJ Schuler’s Steps in the Process of Innovation

1.1. Select the most promising innovatorsSelect the most promising innovators

2. Create buffer zones2. Create buffer zones

3. Give innovators room to play3. Give innovators room to play

4. Resist the temptation to look for immediate results4. Resist the temptation to look for immediate results

5. Commit to driving the best ideas through to implementation5. Commit to driving the best ideas through to implementation

Innovation Means Living with Some Nasty Innovation Means Living with Some Nasty DrawbacksDrawbacks

Can be annoying and frustratingCan be annoying and frustrating Things need to be done that are unpleasant even Things need to be done that are unpleasant even

frighteningfrightening You may hire people you don’t like or that don’t like you You may hire people you don’t like or that don’t like you There may be confrontation-people that worked for us There may be confrontation-people that worked for us

defying requestsdefying requests People may never be taught what they are supposed to doPeople may never be taught what they are supposed to do Things may never be or get finishedThings may never be or get finished Even the average person, thinks they will succeed; but only Even the average person, thinks they will succeed; but only

a small % succeeda small % succeed An employee or the company may be a casualtyAn employee or the company may be a casualty i.e. Inteli.e. Intel

Learn to Fail Faster, Not Less OftenLearn to Fail Faster, Not Less Often

Companies should not reduce the number of “screw-ups”Companies should not reduce the number of “screw-ups”• According to Forbes and Red Herring MagazinesAccording to Forbes and Red Herring Magazines

Open is Good, Closed is BadOpen is Good, Closed is Bad

Creates variance and different perspectivesCreates variance and different perspectives

Blend ideas with what you are already know and invent new Blend ideas with what you are already know and invent new management practices, services and productsmanagement practices, services and products• i.e. Regional Advantage by Anna Lea Saxeniani.e. Regional Advantage by Anna Lea Saxenian

If one company owns a solution to a problem, this may spur If one company owns a solution to a problem, this may spur people in other companies to invent an alternate solution.people in other companies to invent an alternate solution.

By being open to diverse people, ideas and products will By being open to diverse people, ideas and products will get better and better.get better and better. • i.e. Linuxi.e. Linux

Companies offer sabbaticals or allow employees time to Companies offer sabbaticals or allow employees time to work on their own projectswork on their own projects

Class Question

Do any of you all feel like work an innovative company?

Attitudes of InnovationAttitudes of Innovation

1.) In order to help make a company more innovative it is more 1.) In order to help make a company more innovative it is more important for the people in the company to have right ideas important for the people in the company to have right ideas toward their work and each other, than the exact methods of toward their work and each other, than the exact methods of innovation.innovation.

2.) Emotions and feelings drive people to work hard and turn 2.) Emotions and feelings drive people to work hard and turn good ideas into reality.good ideas into reality.

3.) Innovative companies are filled with people who are 3.) Innovative companies are filled with people who are passionate about solving problems.passionate about solving problems.

4.) If people are playful and curious – innovation occurs4.) If people are playful and curious – innovation occurs5.) Employees need the ability to switch emotional gears 5.) Employees need the ability to switch emotional gears

between cynicism (deep doubt) and belief (confidence) to between cynicism (deep doubt) and belief (confidence) to remain pioneering.remain pioneering.

6.) We should all ask ourselves questions like:6.) We should all ask ourselves questions like:• ““What if these ideas are true?”What if these ideas are true?”• ““How might I help organize or manage my company How might I help organize or manage my company

differently?”differently?”• ““How can I act differently to make myself more creative?”How can I act differently to make myself more creative?”

ReferencesReferences

Dell, Michael. “Direct From Dell.” Retrieved 13 March 2011. Dell, Michael. “Direct From Dell.” Retrieved 13 March 2011. https://www.1000advices.com/guru/org.html

Hansen, Eric. “Managing for Innovation: Insights Into a Hansen, Eric. “Managing for Innovation: Insights Into a Successful Successful Company.” Company.” Forest Products Journal. Forest Products Journal. 1 Sept 1 Sept 2008. Retrieved 16 2008. Retrieved 16 March 2011.March 2011.

““Innovation Strategies for Creating Competitive Innovation Strategies for Creating Competitive Advantage.” Advantage.” Research Research Technology Management. Technology Management. May-May- June 2010. Retrieved June 2010. Retrieved 3 March 3 March 2011.2011.

Miller, Claire Cain. “Mom-and-Pop Operators Turn to Social Miller, Claire Cain. “Mom-and-Pop Operators Turn to Social Media.” Media.” The The New York Times. New York Times. 23 July 2005. Retrieved 19 March 23 July 2005. Retrieved 19 March 2011.2011.

Schuler, A.J. “Business Creativity and Innovation: How to Schuler, A.J. “Business Creativity and Innovation: How to Build an Build an Innovative Culture.” Retrieved 13 March 2011. Innovative Culture.” Retrieved 13 March 2011. http://www.schulersolutions.com/business_creatvity_innovati.html

Questions?Questions?