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	<title>Think Primed &#187; thinking</title>
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		<title>Small Business Big Ambition: Why innovation is no surprise in the smaller enterprise</title>
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		<pubDate>Tue, 07 Sep 2010 20:15:12 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Featured]]></category>
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		<description><![CDATA[Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude. - Thomas Jefferson In times of uncertainty we search high and low for answers to our overarching question, “How do we dig ourselves out of the deep pile of…stuff [...]]]></description>
			<content:encoded><![CDATA[<p><em>Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.</em><br />
- <strong>Thomas Jefferson</strong></p>
<p><a href="http://home.thinkprimed.com/wp-content/uploads/2010/09/iStock_000006798453Small.jpg#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed"><img src="http://home.thinkprimed.com/wp-content/uploads/2010/09/iStock_000006798453Small-150x150.jpg" alt="" title="Opportunity" width="150" height="150" class="alignleft size-thumbnail wp-image-1242" /></a>In times of uncertainty we search high and low for answers to our overarching question, “How do we dig ourselves out of the deep pile of…stuff we’re in?” If there are qualifications for uncertain times, present economic indicators demonstrate that all criteria are not only met but exceeded. And our search for answers (and perhaps a shovel) continues in haste.</p>
<p>With very few macro-economic levers left for government officials and public policy experts to pull as they try to shift the economy into a growth pattern, our range of vision and influence narrows. We won’t find big fixes no matter how hard we look. Larger businesses have cut costs dramatically and now find themselves with large cash reserves, waiting for the economy to turn around. They patiently await orders for more products and services, before they place any orders or invest in anything themselves. Essentially, each large enterprise is waiting for the next firm to blink.</p>
<p>Instead of waiting for bail-outs or big business-driven economic up-ticks, we must turn to one of the greatest sources of scalable economic activity and innovation, the small to medium enterprise, for our answers. When highly functioning, these smaller enterprises know how to: make scarcity work for them (they live it every day); work closely with their customers to meet their most pressing needs; and make rapid learning the activity that gives them momentum in the marketplace. </p>
<p><strong>More with less</strong><br />
<em>No complaint &#8230; is more common than that of a scarcity of money.</em><br />
- <strong>Adam Smith</strong></p>
<p>In the popular press (whatever that might be today!), it’s difficult to get a firm handle on what’s going on, or better yet, what <em>could </em>go on with small businesses. By their nature, small businesses are harder to classify and quantify than their big business brothers and sisters. If we consider the small enterprise to be a business of fewer than 200 people, it still leaves a bulk of the economic activity of most developed countries and nearly every developing country. These are the firms for whom bootstrapping is not something done only during times of economic distress, but all the time. They know how to stretch a dollar, or euro, or peso. But that’s not the only thing they know how to stretch.</p>
<p>Time, not just money, is a malleable resource, too. How you invest your time—and on what—drives a higher return on investment. For small businesses stretching time, doing more in a shorter period, gives them an economic leg up, especially when it comes to embracing and extending technology. Smaller firms have many advantages as innovation sources because they are quick to adopt new and high-risk initiatives; they facilitate structures that value ideas and originality; and they have a better capacity to reap substantial rewards from market share in small niche markets. This first-mover advantage was created by and for the small enterprise. It enabled them to get closer to customers other firms little-realized existed.</p>
<p><strong>Closer to our customers</strong><br />
<em>There&#8217;s a lot more business out there in small town America than I ever dreamed of.</em><br />
- <strong>Sam Walton</strong></p>
<p>By decreasing their cycle time, small enterprises can do more for their customers than most large enterprises would commit to. The small enterprise, which usually carries with it a smaller customer base, can remain closer to their customers’ various needs—a distinct advantage over many larger businesses. This means smaller firms can pick and choose where and when to provide innovative products and services. By virtue of their size, the small business can choose to invest a larger proportion of time, energy, and expertise to discover the depth of their customers’ needs, and then pursue those needs by creating innovative solutions.</p>
<p>This closeness to the customer experience is also driven by the need to maximize their share of their customers’ expenditures. By remaining close to the customer, the small enterprise can seize newly arising opportunities to provide value and increase revenues simultaneously. Correspondingly, by seeking to win more business by remaining close to existing customers, the cost-of-sale is driven down, which has a positive benefit to the bottom line: a positive, deep relationship is usually a more profitable relationship. And when there a fewer customers, it’s usually easier to read which ones will be more profitable than not, and that means more effective targeting for higher risk efforts that may yield greater innovation benefits. </p>
<p><strong>Faster mistakes</strong><br />
<em>With any loss, you want to try to regroup and learn from mistakes.</em><br />
- <strong>Elena Leon</strong></p>
<p>Which leads us to another reason why small enterprises are a better bet for long-term economic recovery—they are learning machines. For an employee to add to an innovative process, it may take time for them to understand the research agenda of, and challenges faced by, the firm in which they are employed; in other words, an employee may need to move up the learning curve before adding to the innovative activity of the firm. In a smaller enterprise, that learning curve may be much shorter. Existing processes and systems may be much more fluid. The amount of information to be learned and retained as working knowledge may be smaller. Better yet, the social network through which so much learning and experimentation takes place is smaller and easier to navigate, too.</p>
<p>For the smaller enterprise, the whole employee pool can be geared toward discovery. Each interaction, whether with an internal peer, or an external client or supplier, can be seen as an opportunity to explore possibilities. Within that exploration will be a series of hits and misses. This doesn’t mean that the inherent failures associated with trying something new within a smaller enterprise are less impactful—far from it, but it does mean that the recovery from those missteps may be easier and often shorter.</p>
<p>This is not to negate the impact of the larger enterprise on economic recovery, because without them there would be no recovery, as they provide a stable foundation for the broader economy. But it is to the smaller enterprise we should look for more rapid improvements. The smaller enterprise is thrifty by nature, eager to embrace its customers’ experiences, and willing to risk—through innovation—for greater reward. Unlocking the power resident within small enterprises is key to broader economic recovery. We’ll explore some of those methods in future posts.</p>
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		<title>Innovation Beyond the Average: the challenges of delusions of grandeur and the Dunning-Kruger effect</title>
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		<pubDate>Mon, 19 Jul 2010 21:25:25 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[Ignorance more frequently begets confidence than does knowledge. - Charles Darwin Innovation is not necessarily a size game. Bigger is not necessarily better. Large organizations keenly focused on innovation benefit from being able to exploit resources, processes, systems, and human intellect in a way that’s beyond the scope of a smaller enterprise or sole entrepreneur. [...]]]></description>
			<content:encoded><![CDATA[<p><em>Ignorance more frequently begets confidence than does knowledge.</em><br />
- <strong>Charles Darwin</strong></p>
<p>Innovation is not necessarily a size game. Bigger is not necessarily better. Large organizations keenly focused on innovation benefit from being able to exploit resources, processes, systems, and human intellect in a way that’s beyond the scope of a smaller enterprise or sole entrepreneur. <a href="http://home.thinkprimed.com/wp-content/uploads/2010/07/VelvetRope.jpg#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed"><img src="http://home.thinkprimed.com/wp-content/uploads/2010/07/VelvetRope-150x150.jpg" alt="" title="VelvetRope" width="150" height="150" class="alignleft size-thumbnail wp-image-1130" /></a>Access to a breadth of elements means the possibility of widely divergent outcomes. Unfortunately, with size comes inertia, and one of its causes is the degree to which stable systems create immovable patterns and a certainty that comes with having “seen it all before.”</p>
<p>This kind of organization knows itself. It has a pool of clients it knows well and for whom it meets well-defined, long-term needs. It has access to resources via supply chains it has developed over time, offering little in the way of surprises. You could call this organization “fat, dumb, and happy.” And you would be right. The truth is that it has created a cultural delusion of grandeur, which makes it struggle to innovate.</p>
<p><strong>Dangerous self-satisfaction</strong><br />
<em>There is nothing more frightful than ignorance in action.</em><br />
- <strong>Johann Wolfgang von Goethe</strong></p>
<p><a href="http://en.wikipedia.org/wiki/Howard_Johnson%27s" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Howard_Johnson_27s?referer=');">Howard Johnson’s</a>, <a href="http://en.wikipedia.org/wiki/MCI_Inc." onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/MCI_Inc.?referer=');">MCI</a>, <a href="http://en.wikipedia.org/wiki/Enron" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Enron?referer=');">Enron</a>, <a href="http://en.wikipedia.org/wiki/Pan_American_World_Airways" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Pan_American_World_Airways?referer=');">Pan American World Airways</a>, <a href="http://en.wikipedia.org/wiki/Digital_Equipment_Corporation" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Digital_Equipment_Corporation?referer=');">Digital Equipment Corporation</a>, <a href="http://en.wikipedia.org/wiki/Marshall_Field%27s" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Marshall_Field_27s?referer=');">Marshall Field&#8217;s</a>, and the litany of the half-forgotten could continue. Whether willful victims of their own misbehavior or ignorance of the changing needs of their customers and markets, these former market leaders have died the most tragic of unnecessary deaths. They thought they were at the far right of their market’s respective performance bell curves, living in gloriously smug self-satisfaction, and they were punished for it.</p>
<p>The problem with that kind of delusion is that the most obvious contrary data will be ignored until it is too late. I’ve seen clients, thinking that they were indestructible, behave in ways that were completely contrary to their best interests because they refused to believe their previously unassailable market position was not only in jeopardy, it had evaporated. They stuck to their old product lines, offering the same levels of distracted customer service, while their industry competitors passed them by, embracing innovations at all levels of their organizations.</p>
<p>There are some in <a href="http://en.wikipedia.org/wiki/Venture_capital" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Venture_capital?referer=');">venture capital </a>circles who will tell you, “If you are not growing, you are dying.” They refer specifically to revenues more often than not. For the adage to be true, a more expansive view of growth is required. Growth need not only be found in revenues, it may also manifest in broader service sets, expanded ranges of customers, and wider social impact, among other factors. The self-satisfaction that comes from past success gets in the way of this pursuit because it usually means we don’t seek out those innovations we need to survive and thrive. </p>
<p><strong>Applied ignorance</strong><br />
<em>No one is satisfied with his fortune, nor dissatisfied with his intellect.</em><br />
- <strong>Antoinette Deshoulieres</strong></p>
<p>Self-satisfaction is not the only path to innovation entropy. Success also reinforces a mindset of superiority. Each success reinforces a belief across an organization that the collective choices made and actions taken are the result of superior intellect and application. Which is fine, except the psychological tendency is to ascribe all success to our direct efforts, regardless of actual impact. We all think we’re above average and smarter than the next person in the room, or our competitors, or worse yet, our customers. (<a href="http://en.wikipedia.org/wiki/Charlie_Brown" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Charlie_Brown?referer=');">Good grief</a>.)</p>
<p>There is a great saying in the USA: “Even the blind squirrel will eventually find a nut,” which highlights how arbitrary and capricious success may sometimes be. Especially if we are not vigilantly seeking ways to improve and extend our success through innovation. </p>
<p><a href="http://www.pg.com/en_US/index.shtml" onclick="pageTracker._trackPageview('/outgoing/www.pg.com/en_US/index.shtml?referer=');">Proctor and Gamble</a>, under its previous CEO <a href="http://en.wikipedia.org/wiki/A._G._Lafley" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/A._G._Lafley?referer=');">A.G. Laffley</a>, recognized the flaw in perceiving that all success could be derived from within the company. P&#038;G had, for many years, actively practiced ignoring ideas from outside the company, literally living the phrase “not invented here.” They refused to consider the possibility of good ideas existing elsewhere. Under Laffley they defeated this mindset by embracing the idea of <a href="http://hbswk.hbs.edu/archive/5258.html" onclick="pageTracker._trackPageview('/outgoing/hbswk.hbs.edu/archive/5258.html?referer=');">“proudly found elsewhere,”</a> which meant that they were willing to use the best ideas no matter where they came from.</p>
<p>The self-awareness of the limits existing within a company were neatly expressed by a CEO who, when talking to his staff, said, “The smartest people in the world are not working for us.” The implication being that if you want smart, look beyond the limits implied by the company’s legal and operational boundaries and the intellect it contains. To innovate at home, look elsewhere. (<a href="http://en.wikipedia.org/wiki/Open_innovation" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Open_innovation?referer=');">Open innovation</a>, anyone?)</p>
<p><strong>Certain incompetence</strong><br />
<em>One of the painful things about our time is that those who feel certainty are stupid, and those with any imagination and understanding are filled with doubt and indecision.</em><br />
- <strong>Bertrand Russell</strong></p>
<p>Perhaps the most brutal self-deception that undercuts our ability to innovate both at an individual and collaborative level is represented in the <a href="http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Dunning_E2_80_93Kruger_effect?referer=');">Dunning-Kruger Effect</a>. Justin Kruger and David Dunning proposed that, for a given skill, incompetent people will see themselves as heroes in their own story. They tend to overestimate their own level of skill while failing to recognize genuine skill in others. When faced with the extremity of their inadequacy, they also fail to recognize it, often explaining it away due to circumstances beyond their control.</p>
<p>There is relief from this delusion. If a person is able to recognize and acknowledge their own previous lack of skill, they can be trained to substantially improve, provided they have the will to address their shortcomings. This is hard work. Faced with this level of effort, is it any wonder that most people prefer to not change, instead continuing their certain incompetence by ignoring it altogether? At this point a passing reference to the Peter Principle might be warranted, but a trip down that path will only lead us to despair.</p>
<p>Don’t despair. Andy Grove popularized one approach to the vigilance necessary to maintain a posture of innovation-driven success. His book <a href="http://www.amazon.com/Only-Paranoid-Survive-Andrew-Grove/dp/0385482582" onclick="pageTracker._trackPageview('/outgoing/www.amazon.com/Only-Paranoid-Survive-Andrew-Grove/dp/0385482582?referer=');">Only the Paranoid Survive</a> offers a reminder of what it takes to be successful. To overcome self-satisfaction, and the over-estimation of our abilities, keep striving to be better, to improve, to transform. In the application of consistent efforts toward renewal, not only might you beat your averages, but you might find that innovation becomes the foundation for your enduring success. </p>
<p>How do you prevent yourself or your organization from becoming too self-satisfied?</p>
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		<title>The Power of Saying No &#8211; OnInnovation</title>
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		<pubDate>Mon, 12 Jul 2010 17:45:19 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[The art of leadership is saying ‘no’, not saying ‘yes.’ It is very easy to say ‘yes.’ - Tony Blair In a world awash in opportunities there is so much to be explored (and so much time to wasted.) Let’s spread ourselves too thin, shall we? There are so many ways in which energy may [...]]]></description>
			<content:encoded><![CDATA[<p><em>The art of leadership is saying ‘no’, not saying ‘yes.’ It is very easy to say ‘yes.’ </em><br />
- <strong>Tony Blair</strong></p>
<p>In a world awash in opportunities there is so much to be explored (and so much time to wasted.) Let’s spread ourselves too thin, shall we? There are so many ways in which energy may be spent, resources consumed, and money burned. For an organization with IADD (Innovation Attention Deficit Disorder) a world with multiple possibilities is not a good thing. Indeed it may be crippling.</p>
<p>How does this affliction manifest itself? (For more go <a href="http://blog.oninnovation.com/2010/07/12/the-power-of-saying-no/" onclick="pageTracker._trackPageview('/outgoing/blog.oninnovation.com/2010/07/12/the-power-of-saying-no/?referer=');">here</a>)</p>
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		<title>Innovation in the Rear View Mirror – The challenge of revisionist history and hindsight bias</title>
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		<pubDate>Fri, 09 Jul 2010 21:33:15 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[I always avoid prophesying beforehand, because it is a much better policy to prophesy after the event has already taken place. - Winston Churchill Raise your hands if you have ever met someone who has a tendency to relive their glory days. You know, that one person in a group who fondly remembers better times, [...]]]></description>
			<content:encoded><![CDATA[<p><em>I always avoid prophesying beforehand, because it is a much better policy to prophesy after the event has already taken place.</em><br />
- <strong>Winston Churchill</strong></p>
<p><a href="http://home.thinkprimed.com/wp-content/uploads/2010/07/Rearview_thumb.jpg#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed"><img src="http://home.thinkprimed.com/wp-content/uploads/2010/07/Rearview_thumb-150x140.jpg" alt="" title="Rearview_thumb" width="150" height="140" class="alignleft size-thumbnail wp-image-1117" /></a>Raise your hands if you have ever met someone who has a tendency to relive their glory days. You know, that one person in a group who fondly remembers better times, or who always finds the present lacking because “the last time this same thing happened, there was a much better result”? We are not talking about the story teller, who fires up those around them with their passionate recounting of a victory or a discovery, nor even someone who occasionally reminisces. We’re talking about the person with a pathological need to live in the past, who might be physically in the present but whose mind is a year or ten in the past. Strangely enough, they keep visiting the present, trying to capture us and cart us back there with them.</p>
<p><strong>We’re going to do what we’ve always done (and wonder why we always get what we’ve always got)</strong><br />
<em>May you have the hindsight to know where you&#8217;ve been, the foresight to know where you are going, and the insight to know when you have gone too far.</em><br />
- <strong>Irish Saying</strong></p>
<p>As we noted in a <a href="http://home.thinkprimed.com/archives/165#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed">previous post</a>, storytelling has a vital role in a healthy and vibrant organization. This type of storyteller is not the same. The resident revisionist historian simply cannot let go of the past. With perfect hindsight they see how things were so much better before, and that when change occurred, it put us on the road to ruin. The revisionist doesn’t seek to use their past experience to inform their present-day actions. They would rather live in the past. Over and over and over again. </p>
<p>What students in the United States knew of <a href="http://en.wikipedia.org/wiki/George_Washington" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/George_Washington?referer=');">George Washington’s</a> youth was that he apparently chopped down a cherry tree on the family property. Unfortunately, this is a blatant piece of revisionist history. An archaeological dig at the Washington family home found no such cherry trees. In fact, additional research uncovered that the original biographer of Washington, Mason Locke Weems, <a href="http://americanhistory.about.com/cs/georgewashington/f/washcherrytree.htm" onclick="pageTracker._trackPageview('/outgoing/americanhistory.about.com/cs/georgewashington/f/washcherrytree.htm?referer=');">fabricated the story</a> in order to make the general, first president, founding father, and all-round statesman “more honest”! Strange to think that aggressively pruning a prunus avium and not lying about it would be considered a honest act.</p>
<p>This fabrication and the apocryphal story built upon it lend little to Washington’s character, and revisionist history lends little to the life of an organization. Sorting the truth from fact can be a running battle that can exhaust an organization, leaving fewer resources for creative endeavors, and drain the will of the organization.</p>
<p>A friend of mine, Sam, used to tag people as “radiators” and “drains.” Which I believe he picked up elsewhere (perhaps <a href="http://www.pathwayscoaching.co.uk/article/20/drains-and-radiators/" onclick="pageTracker._trackPageview('/outgoing/www.pathwayscoaching.co.uk/article/20/drains-and-radiators/?referer=');">here</a>?) Now, I’m not one for labels. They’re inflexible and terribly difficult to remove once in place. But his notion that people either radiate energy to those around them or they drain it from them &#8212; like so many dim-witted psychic vampires &#8212; rings appallingly true.</p>
<p>How do you think this plays in an organization attempting to embrace and extend its ability to innovate? Not well at all.</p>
<p><strong>Looking forward but only seeing the rear view mirror</strong><br />
<em>In today&#8217;s complex and fast-moving world, what we need even more than foresight or hindsight is insight.</em><br />
- <strong>Anonymous</strong></p>
<p>Another powerful, distorting perspective present in the psychology of organizations is <a href="http://en.wikipedia.org/wiki/Hindsight_bias" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Hindsight_bias?referer=');">hindsight bias</a>. This is the inclination to see past events as being more predictable than they in fact were before they took place. Hindsight bias has been observed experimentally in a variety of settings, often where defined levels of expertise are expected, including politics, sports, games, and medicine. In psychological experiments of hindsight bias, subjects tend to remember their predictions of future events as having been stronger than they actually were, in those cases where those predictions turn out to be correct. This inaccurate assessment of reality after it has occurred is also referred to as <a href="http://www.newyorker.com/archive/2003/03/10/030310crat_atlarge" onclick="pageTracker._trackPageview('/outgoing/www.newyorker.com/archive/2003/03/10/030310crat_atlarge?referer=');">&#8220;creeping determinism.&#8221;</a></p>
<p>How does hindsight bias impact an organization’s ability to innovate?</p>
<p>By disguising past performance, hindsight bias makes it difficult to determine how original actions may have resulted in a specific outcome. The memory of events may become so distorted that it bears little resemblance to the reality of what occurred; that makes any potential lesson learned not only poor but potentially hazardous.</p>
<p><strong>Learn from your mistakes – don’t relive them</strong><br />
<em>Traditional scientific method has always been at the very best, 20 &#8211; 20 hindsight. It&#8217;s good for seeing where you&#8217;ve been. It&#8217;s good for testing the truth of what you think you know, but it can&#8217;t tell you where you ought to go.</em><br />
- <strong>Robert M. Pirsig</strong></p>
<p>Frank and honest sharing of information is for a wider benefit. It creates a mental space for new ideas to crop up or flood in. This differentiates it from the dynamic surrounding those who are “revisionistas” and “hindsighteers.” (There should be a club for this which involves hats with rearview mirrors attached, I’m sure.) In this dynamic, any benefit, if it can be called that, is derived primarily for themselves. Their approaches leave little room for learning, positive affirmation of true success, or the opportunity for discovering a more holistic solution to the pressing challenges being addressed. </p>
<p>Mistakes and missteps for anyone interested in innovation are a gift. They help define more clearly “where you ought to go.” In being honest about our challenges and the qualities of our successes, and not disguising them or explaining them away through false tales, we will build towards innovations that are truly extraordinary.</p>
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		<title>Discussion: What are the ingredients to become a great leader? &#8211; Johnny Holland Magazine</title>
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		<pubDate>Tue, 06 Jul 2010 22:15:49 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[A new discussion triggered by Daniel Szuc over at Johnny Holland Magazine &#8220;Ever asked yourself how you can make more impact on your projects? Instead of reacting to poor product decisions, being in a position to drive real change? To be able to sit with a product team and make recommendations positively, that are implemented [...]]]></description>
			<content:encoded><![CDATA[<p>A new discussion triggered by Daniel Szuc over at <a href="http://johnnyholland.org/" onclick="pageTracker._trackPageview('/outgoing/johnnyholland.org/?referer=');">Johnny Holland Magazine</a></p>
<p>&#8220;Ever asked yourself how you can make more impact on your projects? Instead of reacting to poor product decisions, being in a position to drive real change? To be able to sit with a product team and make recommendations positively, that are implemented in a place that supports you? Now some of this relates to your ability to communicate clearly, the culture you work in, the receptiveness of what you do, your own knowledge and leadership. There are different flavours of leadership covering but not limited to – leading a design effort, managing a project team and providing a strategic direction&#8230;&#8221; </p>
<p>More resources to join the discussion <a href="http://johnnyholland.org/2010/07/06/discussion-what-are-the-ingredients-to-become-a-great-leader/" onclick="pageTracker._trackPageview('/outgoing/johnnyholland.org/2010/07/06/discussion-what-are-the-ingredients-to-become-a-great-leader/?referer=');">here</a>.</p>
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		<title>Recap of Day 2 at the World Innovation Forum June 8-9, 2010 – OnInnovation</title>
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		<pubDate>Mon, 21 Jun 2010 17:44:10 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[The following is an account of the second day of the World Innovation Forum. For a review of the first day please see here. Speakers for Day 2 included: Seth Godin, Brian Shawn Cohen, Wendy Kopp, Ursula Burns, Joel Makower, Jeffrey Hollender, and Robert Brunner. It must be said that one of the bigger disappointments [...]]]></description>
			<content:encoded><![CDATA[<p>The following is an account of the second day of the World Innovation Forum. For a review of the first day please see here. Speakers for Day 2 included: Seth Godin, Brian Shawn Cohen, Wendy Kopp, Ursula Burns, Joel Makower, Jeffrey Hollender, and Robert Brunner. It must be said that one of the bigger disappointments during the event was something over which HSM, the event organizer, had no control. <a href="http://www.twitter.com" onclick="pageTracker._trackPageview('/outgoing/www.twitter.com?referer=');">Twitter</a>, for whatever reason, decided to embrace its inner <a href="http://www.nydailynews.com/money/2010/06/17/2010-06-17_world_cup_cause_twitter_outages_more_fail_whales_to_come.html" onclick="pageTracker._trackPageview('/outgoing/www.nydailynews.com/money/2010/06/17/2010-06-17_world_cup_cause_twitter_outages_more_fail_whales_to_come.html?referer=');">FAIL Whale and choked for much of the proceedings</a>. This was a disappointment to many for whom Twitter is a great way to keep in touch with the themes of a conference as they arise. Not too sure if that feedback made its way back to Biz Stone (final speaker at the conference on Day 1) but we can only hope so. </p>
<p>That said, for those in attendance the World Innovation Forum itself became a backdrop to a whole lot of innovative happenings and <a href="http://blog.oninnovation.com/2010/06/21/world-innovation-forum-recap-day-2/" onclick="pageTracker._trackPageview('/outgoing/blog.oninnovation.com/2010/06/21/world-innovation-forum-recap-day-2/?referer=');">the following is a rapid journey through some highlights</a>.</p>
<p>[The recap of the first day is <a href="http://blog.oninnovation.com/2010/06/18/recap-of-world-innovation-forum-june-8-9-2010/" onclick="pageTracker._trackPageview('/outgoing/blog.oninnovation.com/2010/06/18/recap-of-world-innovation-forum-june-8-9-2010/?referer=');">here</a>]</p>
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		<title>Garage Based Innovation &#8211; Presentation by Phil McKinney &#8211; HP&#8217;s CTO</title>
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		<pubDate>Mon, 21 Jun 2010 17:32:02 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
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		<description><![CDATA[Phil McKinney, the Chief technology Officer at HP, delivered a presentation recently on &#8220;Garage Based Innovation&#8221; at one of the Stanford Breakfast Briefings. In McKinney&#8217;s words, &#8220;the emphasis being on the personal ability to innovate. &#8221; Although I believe he is speaking directly at the heart of what it takes to foster a culture of [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://philmckinney.com/" onclick="pageTracker._trackPageview('/outgoing/philmckinney.com/?referer=');">Phil McKinney</a>, the Chief technology Officer at <a href="http://www.hp.com" onclick="pageTracker._trackPageview('/outgoing/www.hp.com?referer=');">HP</a>, delivered a presentation recently on &#8220;Garage Based Innovation&#8221; at one of the <a href="http://breakfastbriefings.stanford.edu/briefings_archive" onclick="pageTracker._trackPageview('/outgoing/breakfastbriefings.stanford.edu/briefings_archive?referer=');">Stanford Breakfast Briefings</a>. In McKinney&#8217;s words, &#8220;the emphasis being on the personal ability to innovate. &#8221; Although I believe he is speaking directly at the heart of what it takes to foster a culture of innovation and it has a wider applicability than the personal.</p>
<p>Some of the topics he covered included:</p>
<p>    * The Rules Of The Garage<br />
    * The Challenges Of Innovation (Innovation Gap and the Innovate Delay)<br />
    * Knowledge Is A Commodity<br />
    * Creativity Is Not A “Gift” But A Skill (and it is one that he believes can be taught / learned)<br />
    * Everyone Is Creative (yes, everyone!)<br />
    * Skills Of Creativity</p>
<p>I like the way McKinney thinks. He is a true advocate for whole-organization innovation and seeks to debunk the idea that it is the domain of a select few.</p>
<p>The presentation is <a href="http://www.slideshare.net/philmckinney/garage-based-innovation" onclick="pageTracker._trackPageview('/outgoing/www.slideshare.net/philmckinney/garage-based-innovation?referer=');">here </a>at SlideShare</p>
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		<title>New post at OnInnovation: The Structural Dilemma of Creating an Innovation Culture</title>
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		<pubDate>Tue, 01 Jun 2010 19:23:01 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[The struggle of creating an innovation culture, a culture that supports innovative thinking and output as compared to an innovative culture (one marked by internal differentiation), can readily be framed as a structural dilemma. There are two seemingly contradictory operating instincts that must be reconciled in order for an innovation culture to be sustained. The [...]]]></description>
			<content:encoded><![CDATA[<p>The struggle of creating an innovation culture, a culture that supports innovative thinking and output as compared to an innovative culture (one marked by internal differentiation), can readily be framed as a structural dilemma. There are two seemingly contradictory operating instincts that must be reconciled in order for an innovation culture to be sustained. The first is the bias, especially in larger, older organizations, towards definition and control of all aspects of organization life. The second bias, a start-up or entrepreneurial mindset, tends towards differentiation and creativity. As you can imagine this reconciliation process requires tough trade-offs&#8230;(more <a href="http://blog.oninnovation.com/2010/06/01/the-structural-dilemma-of-creating-an-innovation-culture/" onclick="pageTracker._trackPageview('/outgoing/blog.oninnovation.com/2010/06/01/the-structural-dilemma-of-creating-an-innovation-culture/?referer=');">here</a>)</p>
<p>Image credit: <a href="http://www.flickr.com/photos/42035325@N00" onclick="pageTracker._trackPageview('/outgoing/www.flickr.com/photos/42035325_N00?referer=');">the only one</a></p>
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		<title>Innovation &amp; Memory – Recollection plays havoc with our innovation efforts</title>
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		<pubDate>Fri, 28 May 2010 21:31:03 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
				<category><![CDATA[Innovation]]></category>
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		<description><![CDATA[The true art of memory is the art of attention. - Samuel Johnson The news is shocking, but true. Memories are fictitious! And it seems the more we call on them the more likely they are to bend and shift over time. Most of us have snapshot memories – those memories formed by extraordinary events. [...]]]></description>
			<content:encoded><![CDATA[<p><em>The true art of memory is the art of attention.</em><br />
- <strong>Samuel Johnson</strong></p>
<p>The news is shocking, but true. Memories are fictitious! And it seems the more we call on them the more likely they are to bend and shift over time. Most of us have snapshot memories – those memories formed by extraordinary events. For some it might be their wedding day, or birth of a child, or a hole-in-one while playing golf. Unfortunately, for most of us, the most commonly shared snapshot memories are usually formed by catastrophe and disasters widely reported in the media. <a href="http://home.thinkprimed.com/wp-content/uploads/2010/05/MRI-Scan.jpg#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed"><img src="http://home.thinkprimed.com/wp-content/uploads/2010/05/MRI-Scan-150x150.jpg" alt="" title="MRI Scan" width="150" height="150" class="alignleft size-thumbnail wp-image-1033" /></a>As clear and detailed as these memories seem to us, as we reflect on them and share them with others psychologists find they are surprisingly inaccurate. Our inaccurate recall influences how we respond when facing similar circumstances; which means our memories can be quite detrimental to our ability to effectively innovate.</p>
<p><strong>Hand me my rose-colored glasses</strong><br />
<em>Memory is deceptive because it is colored by today&#8217;s events.</em><br />
- <strong>Albert Einstein</strong></p>
<p>When bringing new products to market the stories of success told within an organization often fail to capture the impediments to success along the way. Our tendency is to believe that the decision making processes in organizations are robust and analytical enough to prevent biases. We gather data from a variety of sources and build our product portfolios based on “the facts”. However, even if someone has sought and assessed the alternatives for investment in a neutral manner, they may still remember data selectively to reinforce their expectations. This effect is called selective recall, confirmatory memory or access-biased memory.</p>
<p>There are conflicting psychological theories about selective recall. <a href="http://en.wikipedia.org/wiki/Schema_%28psychology%29" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Schema_28psychology_29?referer=');">Schema theory</a> predicts that information matching prior expectations will be more easily stored and recalled. Some alternative approaches say that surprising information stands out more and so is more memorable. Predictions from both these theories have been confirmed in different experimental contexts, with no theory winning outright. What is more interesting is the influence our remembering of past success holds over our current choices.</p>
<p>In remembering our previous successes <a href="http://www.psych.mcgill.ca/faculty/nader.html" onclick="pageTracker._trackPageview('/outgoing/www.psych.mcgill.ca/faculty/nader.html?referer=');">Karim Nader</a>, a neuroscientist at McGill University in Montreal, has established a theory stating that the very act of remembering can change our memories. This theory runs counter to the established perspective that once a memory is formed it remains largely intact. Even more challenging is his statement that our most vivid memories are actually prone to the most change over time. He believes that it may be impossible for humans or any other animal to bring a memory to mind without altering it in some way. Like an old <a href="http://en.wikipedia.org/wiki/Audio-tape#Magnetic_tape" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Audio-tape_Magnetic_tape?referer=');">magnetic audio tape</a> (remember those?!), the more times it is replayed the more degraded the sound becomes, our recollections are “rewritten” back to memory in a different part of the brain and somewhat altered by the way our recollection was triggered.</p>
<p>When we remember the successful delivery of a new product or service to market, we may be miss-remembering the circumstances around that release. Our memories, influencing our present choices about innovation opportunities selected for funding and development, may actually be leading us astray. How we <a href="http://en.wikipedia.org/wiki/Rosy_retrospection" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Rosy_retrospection?referer=');">fondly remember our past success</a> may reinforce our positive attention towards products or services we think are similar our past successes. This blinds us to present risks and may jeopardize our intended outcomes.</p>
<p><strong>Refusing to make the mistakes of the past</strong><br />
<em>Many a man fails as an original thinker simply because his memory is too good.</em><br />
- <strong>Frederick Nietzsche</strong></p>
<p>This unwittingly biased view of the world cuts both ways. Where our remembered successes might trigger us to attempt to repeat them, by neglecting the hazards we had to overcome, our remembered failures might steer us away from what might conceivably be future successes. <a href="http://en.wikipedia.org/wiki/Hindsight_bias" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Hindsight_bias?referer=');">Hindsight bias</a> comes into play and each recall of our failed efforts not only reinforces their impact, and our desire to avoid repeating them, it serves as the basis for predicting future failure. In addition, when we set aside our memories as they are re-written back into our synapses the new research suggested that they are changed. That change is often an amplification of the extent of the remembered failed attempt.</p>
<p>The pattern of <a href="http://en.wikipedia.org/wiki/Confirmation_bias" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Confirmation_bias?referer=');">confirmation bias</a> is our tendency to prefer information that confirms our preconceived notions of how circumstances might play out, regardless of whether they are true. It may sometimes be used to encapsulate the following three cognitive biases by which people can reinforce their existing attitudes toward their innovation efforts: by selectively collecting new evidence that highlights or exaggerates the risk involved with a new endeavor, by interpreting evidence in a way that is biased towards finding hazards in the attempt, or by selectively recalling information from memory about our past failures and applying that to the present situation.</p>
<p>Where sometimes our memories influence us to see the world as full of possibilities, they can also hinder our ability to take the appropriate risks that are necessary for all innovation. Our fear failure, influenced by our remembered failure can prove just as detrimental to our mistaken memories of success.</p>
<p><strong>Memories are additional data – treat them as such</strong><br />
<em>We cannot change our memories, but we can change their meaning and the power they have over us.</em><br />
- <strong>David Seamands</strong></p>
<p>If the process of creating memories and remembering is so fallible, how can we minimize its impact? </p>
<p>One method is to be clear about the data being used to influence decision making. Make your thinking visible so that inherent biases may be called to account. When conducting an assessment of alternatives, be sure to seek counsel that is external to the decision making team especially if that team is long-term and has a wealth of shared experience. To avoid the undue influence of memory biases seek people who have different perspectives and experience. That experience will be rooted in different memories and may help mitigate over-reliance on our personal and collected recollection of what we think may have occurred.</p>
<p>Another method for combating our fallible memories is to directly address the amount of risk involved in the innovations we choose to pursue; our memories provide context for the risks we perceive in the present. We can address that risk by using short interval delivery strategies. This approach creates milestones that are much closer together (rather than months, usually weeks, or even days in high risk scenarios) and the scope of work being completed is usually more contained. This enables us to keep our focus on the present performance of our innovation efforts</p>
<p>As a practice in innovation, rather than relying on our memories to influence our choices, perhaps it is best to focus on making new memories. What do you think? How do your memories influence how you innovate?</p>
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		<title>Innovation Framing – the challenge of blinkered thinking</title>
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		<pubDate>Mon, 10 May 2010 20:57:24 +0000</pubDate>
		<dc:creator>Andrew (Drew)</dc:creator>
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		<description><![CDATA[Two quite opposite qualities equally bias our minds &#8211; habits and novelty. - Jean de la Bruyere The life of the mind has such a significant bearing on the ability to innovate. We know that a fruitful mind is fundamental to the applied creativity and invention of innovation. Our time and attention are studiously focused [...]]]></description>
			<content:encoded><![CDATA[<p><em>Two quite opposite qualities equally bias our minds &#8211; habits and novelty.</em><br />
- <strong>Jean de la Bruyere</strong></p>
<p>The life of the mind has such a significant bearing on the ability to innovate. We know that a fruitful mind is fundamental to the applied creativity and invention of innovation. Our time and attention are studiously focused on the creative spark, the genesis of new ideas, and the process of ideation. In this effort the mind can be stubborn, unwilling or simply distracted. <a href="http://home.thinkprimed.com/wp-content/uploads/2010/05/Greenhead_000007941768Small.jpg#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed"><img src="http://home.thinkprimed.com/wp-content/uploads/2010/05/Greenhead_000007941768Small-150x150.jpg" alt="" title="Greenhead" width="150" height="150" class="alignleft size-thumbnail wp-image-991" /></a>Recently we explored the <a href="http://home.thinkprimed.com/archives/963#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed">power of anchoring</a> and the ways it can prevent us from abandoning an idea that is past its prime, or how it might prevent us from seeing the value in a different perspective, or the usefulness of another’s fresh take. Unfortunately that is only one of many ways in which our minds can prevent us from being truly, madly, deeply…innovative.</p>
<p><strong>It’s my hilltop and everything looks fine from here</strong><br />
<em>We don’t see the world the way it is. We see the world the way we are.</em><br />
- <strong>Anaïs Nin</strong></p>
<p>We think we are broad-minded and open to new ideas; actually, we look where we’re told and think in circles. Now, I’m not saying that we are all <a href="http://en.wikipedia.org/wiki/Sheeple" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Sheeple?referer=');">sheeple</a>. But a little deluded about our good selves? Absolutely. There is a whole world of marketing that is based on self delusion. </p>
<p>Consider the concept of <a href="http://en.wikipedia.org/wiki/Greenwash" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Greenwash?referer=');">“green washing”</a> – essentially the habit of nefarious companies painting a thin film of environmental friendliness on their products in order to appeal to our better natures. Oh, and sell more of their stuff. It’s objectionable. It’s dishonest. And it works a treat.</p>
<p>Why?</p>
<p>Well, many of us like to think of ourselves as being good stewards of the environment, as long as it doesn’t require too much effort. Those who recycle everything, have taken to growing their own food bio-dynamically in their backyards and have forsaken their cars for other communal or less aggressively carbon-footprint-enlarging forms of travel are among the minority. A vocal group, yes, but small. The keen but passive majority wants being “green” to be easy. </p>
<p>Willing and eager companies meet that need by framing their products in ways we immediately relate to. They use terms like, ‘eco-friendly’ and ‘energy efficient’ and use colors that evoke Spring days and clean lines. The contents of the packages are not so different as their ‘bad’ alternatives but because of the way these products are framed for us, we buy them. Often that purchase is at a premium. Because “it’s good for the environment” and we want to do good.</p>
<p>When it comes to how we see the world, we are the heroes of our own stories. We consider ourselves immune to marketing and yet statistically we fall prey to the same well-positioned <a href="http://en.wikipedia.org/wiki/Point_of_sale_display" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Point_of_sale_display?referer=');">point-of-sale display</a> in the supermarket as the next person. We like to think we are open minded, but as was illustrated in the movie <a href="http://www.imdb.com/title/tt0375679/" onclick="pageTracker._trackPageview('/outgoing/www.imdb.com/title/tt0375679/?referer=');">“Crash”</a> we have deep-seated biases and prejudices that flash to the surface without us realizing it.</p>
<p><strong>You really want to see the world the way it is? Really?</strong><br />
<em>Bias and prejudice are attitudes to be kept in hand, not attitudes to be avoided.</em><br />
- <strong>Charles Curtis</strong></p>
<p>We don’t want to see the world the way it is. In fact we have a whole series of techniques, <a href="http://en.wikipedia.org/wiki/Cognitive_biases" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Cognitive_biases?referer=');">cognitive biases</a>, which we have developed to help us not see the world the way it is. They are there to help us cope. To help us sort through the nearly infinite number of sensory inputs we experience each day so that we can make meaning of our surroundings. Framing is simply one other dominant device in the bias tool kit.</p>
<p>If <a href="http://home.thinkprimed.com/archives/963#utm_source=feed&amp;utm_medium=feed&amp;utm_campaign=feed">anchoring </a>locks us into a particular perspective, preventing us from seeing something differently, framing has an opposite effect. Framing is a set of personal filters, emotional, psychological, and intellectual constructs that we use to gather, sort, organize and analyze information about the world around us. Frames are our mental <a href="http://upload.wikimedia.org/wikipedia/commons/thumb/2/28/Horses_2.jpg/220px-Horses_2.jpg" onclick="pageTracker._trackPageview('/outgoing/upload.wikimedia.org/wikipedia/commons/thumb/2/28/Horses_2.jpg/220px-Horses_2.jpg?referer=');">blinkers</a>. The shades that focus us on what we think we really want to be thinking about. Framing influences the background context of our choices, often as simply as in the way in which a question is worded.</p>
<p>Framing enables us to act with <a href="http://en.wikipedia.org/wiki/Pseudocertainty " onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Pseudocertainty?referer=');">‘pseudocertainty’</a>. It eliminates or lessens doubt as a way of short-cutting our need for analysis. The old saw originated by Mark Twain, that there are &#8220;lies, damned lies, and statistics&#8221;, is another representation of the way in which framing occurs as it reveals the persuasive power of numbers. A key issue with framing is that it may be acted upon us, via marketing or through a desire to influence, or we may frame issues ourselves through our beliefs, education, ethics, etc.</p>
<p>How does framing influence innovation?</p>
<p>As a process of short-cutting our need to analyze or explore a situation or issue more deeply, especially our understanding of the immediate context, framing blinds us to possibilities and options. We simply don’t ‘see’ alternatives because of the influence of framing. We look where we’re pointed or only where our blinkered perspective will allow.</p>
<p>A classic example of this is from the work of Nobel Prize winner Daniel Kahneman and his partner Amos Tversky. (We&#8217;re big fans of <a href="http://en.wikipedia.org/wiki/Prospect_theory" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Prospect_theory?referer=');">Kahneman and Tversky</a> at Primed Associates!) They offered a group of research subjects <a href="http://en.wikipedia.org/wiki/Framing_effect_%28psychology%29#Example" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Framing_effect_28psychology_29_Example?referer=');">two scenarios</a>, both with essentially the same data but framed differently. In it, the subjects were asked to make a choice between two alternatives. Due to the way the scenario framing changed, the majority of subjects flipped their choices. Same data, simply re-framed meant a very different result.</p>
<p><strong>I am committed to my strategic focus on…Oh look! Kittens!</strong><br />
<em>When you change the way you look at things, the things you look at change.</em><br />
- <strong>Max Planck</strong></p>
<p>Framing is a psychological version of the Heisenberg Principle in action. In <a href="http://en.wikipedia.org/wiki/Quantum_mechanics" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Quantum_mechanics?referer=');">quantum mechanics</a>, the <a href="http://en.wikipedia.org/wiki/Werner_Heisenberg" onclick="pageTracker._trackPageview('/outgoing/en.wikipedia.org/wiki/Werner_Heisenberg?referer=');">Heisenberg </a>uncertainty principle states &#8220;by precise inequalities that certain pairs of physical properties, like position and momentum, cannot simultaneously be known to arbitrary precision. That is, the more precisely one property is known, the less precisely the other can be known.&#8221; For the lay person &#8211; when you focus and look at one aspect of a situation, other aspects become less clear. Framing positions us to understand one perspective which lessens the impact, influence or even visibility of another alternative. We get blinkered.</p>
<p>We need to fight being framed. (Or stop taking our own framing at face value.)  </p>
<p>In innovation, it is necessary to see things we haven’t seen before. To combat the influence of framing, to expand the range of possibilities, it is necessary to call it out. Questioning assumptions is one way of addressing the undue influence of framing. Another way is to literally take the opposite position on data. If we reverse our position previously unseen options might be revealed. As our perspective greatly determines what we see, changing that perspective means we see things anew. Finally, we can often build our way out of how we are framed by exploring new approaches through design thinking and prototyping. A prototype is a great tool for helping us reframe our view of a challenge.</p>
<p>What&#8217;s your perspective? How blinkered are you?</p>
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