The Innovator’s

DNA (2011)Mastering the Five Skills of

Disruptive Innovators

Jeff Dyer

Hal Gregersen

Clayton M. Christensen

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Definitions

The study considers four types of innovators, viz.

Start-up entrepreneurs

Corporate entrepreneurs

Product innovators

Process innovators

“Innovation Premium” is defined as Market Value of a firm over Cash

Flow. Indicative of investors anticipation of profit from innovative

products / services

Disclaimers:

Engaging in discovery skills doesn’t ensure financial success

Failure often results in not being vigilant in engaging all discovery

skills

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Key concepts

To ‘Think Different’ organizations have to ‘Act Different’

Like our own DNA, Innovator's DNA could also be systematically

altered

Discovery Skills: Associational Thinking; Questioning; Observing;

Experimenting; Networking; Challenging the Status Quo; Risk Taking

Delivery Skills: Analyzing; Planning; Detailed-oriented

implementation; Disciplined execution

As organizations grow, Discovery Skills get replaced with Delivery

Skills

If founder-entrepreneur stays with the organization s/he ensure

Discovery Skills aren’t compromised

Founder innovators imprint their organizations with own DNA

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Fast facts (1/…)

Most of the psychological differences between entrepreneurs and

managers in large organizations are small or non- existent (Busenitz

and Barney, 1997)

There appears to be no discoverable pattern of personality

characteristic that distinguishes between successful entrepreneurs

and non-entrepreneurs (Guth, 1991)

Most of the attempts to distinguish between entrepreneurs and small

business owners of managers have discovered no differentiating

features (Brockhaus, 1982)

Creativity is more an act of Nurture than Nature, unlike IQ (Reznikoff,

et al, 1973)

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Innovator’s DNA Model

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Course to

Innovate

Behavioral SkillsCognitive Skills to

synthesize novel inputs

Challenging the

Status Quo

Taking Risks

Questioning

Observing

Networking

Experimenting

Associational

ThinkingInnovative

Business Ideas

Delivery Skills:

Analyzing

Planning

Detailed-oriented implementation

Disciplined execution

As organizations grow, Discovery

Skills get replaced with Delivery Skills

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Discovery driven skills matrix

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Executive skill life cycles

Skill #1: Associating

Concepts:

Need to 'defocus attention'

Brain works in an Associating Manner (Medici Effect)

Sleep gives 30% more chances of associative thinking

Techniques:

Creating odd combinations (What if we combine this with that?)

Zooming in and zooming out (Macro and Micro view)

Lego thinking (Collect ideas the way kids collect Lego blocks)

Force new associations (Unsolved problem, Unrelated random item,

Potential association)

Take on the persona of a different company

Generate metaphors (what- if; possible new features/ benefits)

Build your own curiosity box

SCAMPER 8

Skill #2: Questioning (1/2)

Concepts:

Formulation of a problem is more important than the question

What currently is What might be

Constantly challenge the status quo

Inhibitors to questions (Postman and Weingarten, 1969) Not wanting to look stupid

Not willing to be viewed as uncooperative or disagreeable

Questioning dilemmas for senior executives (Krantz and Bacon,

1977; Adler, et al, 1989) Questioning own business drops stakeholders confidence

Taught to question the boss (who created status quo)

Questions are necessary but not sufficient

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Skill #2: Questioning (2/2)

Techniques:

Ask "what is" questions

Ask "what causes" questions

Ask "why? and what not?" questions

Ask "what if?" questions

Ask "what if?" questions to impose constraints

Ask "what if?" questions to eliminate constraints

Engage in Question Storming

Cultivate question thinking (craft top challenges as top questions)

Track your Q/A Ratio (higher for disruptive innovators)

Keep a question centered notebook

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Skill #3: Observing (1/2)

Concepts:

Look for the 'Job' and a better way to do it (Functional, Social and

Emotional dimensions)

Products customers hire to do the job Look for surprises and anomalies

Find opportunities to observe in a new environment

Value of observing anomalies Thomas Kuhn- observing anomalies is the key to unlocking the door to

innovation

Competency-enhancing vs Competency-destroying technological

changes

Modular vs Architectural innovations

Sustaining vs Disruptive innovations

Threat vs Opportunity Framing

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Skill #3: Observing (2/2)

Techniques:

Immersion experience in a new environment

Observe customers

Observe companies

Observe what ever strikes your fancy

Observe with all your senses Dialogue in Dark

Dialogue in Silence

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Skill #4: Networking (1/2)

Concepts:

Resource networkers (access resources, further career) vs Idea

networkers (learn new things, gain new perspectives, test ideas)

Networks bridging structural-holes

Enables serendipity

How to strike a conversation Approach people with an interest in Idea not their Resources

Be interesting (have wide interest/ perspectives)

Have a good elevator pitch of the problems

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Skill #4: Networking (2/2)

Techniques:

Tap outside experts

Attend idea networking events (e.g. TED)

Form a Personal Networking Group

Identify "who else has solved a similar problem before"

Attend conferences unrelated to your domain

Have a Trusted Network of Creative Confidants

Mealtime Networking

Start a Creative Community

Cross-train with experts

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Skill #5: Experimenting (1/2)

Concepts:

What might be (not what was or what is)

Key skill that differentiates innovators from non-innovators

Three ways Try out new experiences

Take apart product, process and ideas

Test ideas through pilots and prototypes

Insights come quicker if one has prior observing, questioning and

networking

Run calculative experiments

Experimental findings can also be accidental

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Skill #5: Experimenting (2/2)

Techniques:

Travel to more countries

Work in different company environments

Learn new skills in different arenas

Approach life with a hypothesis testing mindset

Develop a new skill

Disassemble a product

Build prototypes

Go trend spotting

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Putting Innovator’s DNA into practice

(1/2)

Organizational Culture:

Org cultures are set by the way problems are solved in early its early

days. (Edger Schein, 2004)

Its elements are: People, Processes and Philosophies

People:

Dedicated people responsible for innovation

Founders DNA shapes that of org.

Balance of discovery and delivery skills

Possesses complementary discovery skills

Process:

Approach of solving problem/ spot ideas

Hire, train, reward and promote discovery driven people

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Putting Innovator’s DNA into practice

(2/2)

Philosophies:

Innovation is everyone's job, not just R&D’s Safe space for others to innovate

Give people time to innovate

Disruptive innovation is part of innovation portfolio, comprising of: Derivative (Replace current products and Sell more products to existing

customers)

Platform (Reach new customers)

Breakthrough (Creating New markets)

Deploy lots of small, properly organized innovation project teams Lightweight teams

Autonomy for Disruptive Innovations

Take 'smart' risks in pursuit of innovation

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Quotable quotes (1/…)

Innovation is the central job of every leader- business unit manager,

functional head and the CEO

- A G Lafley, Former CEO of Procter & Gamble

Creativity is connecting things

- Steve Jobs, Former CEO of Apple

The best way to get a good idea is to get a lot of ideas

- Linus Pauling

You can not look into a new direction by looking harder in the same

direction

- Edward De Bono

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Quotable quotes (2/…)

The formulation of a problem is often more important than its solution…

(it) requires creative imagination

- Albert Einstein

Observation is the big game changer in our company

- Scott Cook, Founder- Intuit

We don’t care if you give us a toothbrush, a tractor, a space shuttle, a

chain; we want to figure out how to innovate by applying our process

- David Kelley, founder- IDEO

Innovation is deeply ingrained in all of the nooks and crannies of our

culture

- Jeff Bezos

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