The higher the expectations, the lower the innovation results
There is a growing interest in creativity and in innovation. More and more leaders see the need to increase the rate of innovation. But many leaders are using old-fashioned methods to incentivize these efforts. For instance they will give a large bonus if the innovation meets or exceeds the targets. Most of the time this will have a negative effect on the performance and not (the intended) positive effects.
Here is a quote from Dan Ariely, The Upside of Irrationality:
“To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.”
So, instead of huge bonuses it is much more effective to:
- - Recognize innovators for their efforts
- - Give them the resources required
- - Support the innovation from the top (in words and deeds)
- - Lead activities to change the product-out culture into a customer-centric culture
- - Stimulate cross-silo collaboration
- - Connect with customers on a regular basis
Innovation does not only require the design of new products or services, but also the design of a new way of working together.
How are you stimulating innovations?
Enthusiasm drives Excellence!
For whom are you innovating?
Just a few weeks ago I had a short flight to Copenhagen. And again the check-in process keeps on surprising me. I am used to the self service terminals. It is still amazing that there are a lot of customer service repr’s needed to assist people with registering. Clearly the process to check-in your self is still not very easy and intuitive.
The same applies to checking-in your luggage. There was a new machine (see pic) where I could check-in the luggage myself.
I was really wowed by the technology. Incredible what is possible these days. What surprised me was that also to use this machine there was still a lot of help needed from customer service repr’s. Apparently they are not so easy to use for many customers.
This brings me to the following question. For whom are you innovating here? For the customers, or for yourself to save on labor costs? And are you really saving a lot of labor costs, as still quite a lot of customer service repr’s are needed to assist. I think the innovation (in this case) is for the internal organization only. If they had applied Design Thinking methodologies, they would have find out that customers prefer a totally different experience. As a customer I don’t want to use two different machines (which I find hard to use) and hope that I did everything well. I really would prefer that when I arrive at the counter I will be welcomed by a nice smiling customer service repr who asks for my ticket, passport and luggage and who checks it all in for me. While that is happening I will be seated on a couch and have a nice (and hopefully) interesting chat with another traveller. That would be a very great customer service experience!
So, for whom are you really innovating?
- Posted from Schiphol, Netherlands
A new social compact needed - The Creative Compact-
Feedback is important, but …..
In our education system we are taught to focus on the weaknesses and the defects. That is the way we are being rated. The focus is on what is wrong, not on what is right. For example, you have 3 faults out of 10. We don’t say you have 7 good out of 10.
The same negative focus is part of the performance review process. In one of my first formal reviews, my manager talked for 50 minutes about things, which could be improved. So, I thought that I would receive an insufficient rating and I did become scared. However, to my big surprise I did receive a ‘Usually Exceeds Requirements’ rating! I still do feel the surprise and above all the negative feeling.
This way of giving feedback is especially damaging in innovation. As you are starting something new it is of course wise to receive all kinds of feedback (positive and negative) but you must not have the feeling that you can better stop with your new project.
It is important to understand:
- - Who did give the feedback and how representative this person is for the target group?
- - Is it a minor improvement or a major change which is required?
- - How did the majority feel about your innovation? Please note that only a few will give formal feedback. So, you have to approach the others and ask for it.
- - Is the feedback focused on making the offering better?
- - What is needed to make it perfect?
If you have just sown some grass seeds and the small grass is just popping up, do you let someone with big boots run over you new grass? No, of course not! But you really would like to hear from him how to make your grass go faster, isn’t it?!
So, be careful with feedback and use it in the right way and don’t let you get distracted from the goal.
Enthusiasm drives Excellence!
Innovators and entrepreneurs are the new rockstars!
Nice overview, but nothing mentioned about service design!
- Posted from København, Denmark
You are what you consume, and what enters your mind
- Posted from København, Denmark
Service for elderly people
Last week I did help my mother to buy a new car. In a few months she will become 80 years old, so the roles are reversing. I.e. I am helping my mother as she did help me when I was a young boy.
She really needs that car as she is still doing quite a lot of volunteering work.
She did go by herself to the dealer of her current car (Toyota). Apparently the salesperson had one car, which he wanted to sell to her, and immediately gave her a quote. He totally didn’t ask her what she wanted and –more important- why she wants a new car. So, she came to me with the quote. And I asked her the questions, which a ‘normal’ salesperson was supposed to do. Then I did show her some other brands on the computer and we went off to some dealers.
At the Renault dealer the salesperson was very polite and especially very patient. He took a lot of time to explain to my mother and was totally not pushy. So, we planned to have a test-drive the next morning. On our way out, there was a car which caught my mothers’ eye and she immediately ‘fell in love with that car’ as my mother said. This was an occasion and not a new car. The salesperson was very flexible and planned a test-drive in this car (instead of in the new car) the next morning.
Then we did go to the Peugeot dealer to see another car. In the showroom there was nobody who greeted us although there were plenty of people. I even saw a salesperson sitting behind his desk, but took no action at all. So, we quickly had a look at anew car and left. My mother didn’t like it all as she said that those people were totally not interested in her.
The next day, we had the test-drive and again the salesperson was very patient and made my mother feel very comfortable and not nervous. You would say t’ big deal’, but imagine that you are 80 years old and test-driving a ‘strange’ new car. That did even make me nervous, as I was sitting in the backseat. My mother liked the car very much and she was very excited, so she did buy the car!
These are three examples of salespeople dealing with elderly people. If you are aware of this very large (and growing) target group then you will have to make sure that you can relate to the needs of these elderly people. Otherwise you will miss a large opportunity, as many of these people have enough funds (to buy new cars).
Is your service tailored to elderly people?
Enthusiasm drives Excellence!
Multidisciplinary collaboration is crucial
Yesterday I did watch a documentary about urbanization. Besides the fact that by 2050 more than 50% of the world's population will live in cities, the most interesting part was that urbanization was considered from different perspectives.
Technology (Siemens) provided a very interesting view on the infrastructure and control systems, parts of which are currently piloted in Masdar City. Ikea is also very innovative in the sense that they are building houses in Sweden and are setting up complete blocks of houses in London (LandProp).
The mosts interesting perspective was form a physician (Geoffrey West) who looked at cities 'with biology glasses on'. His main finding is:
The world is so complex that you really need all these different perspectives to reach a workable solution for all stakeholders.
Are you building multidisciplinary teams?
Enthusiasm drives Excellence!
