More Details On The 8 Productive Tensions Of Innovation - 3. Source Innovation Internally Or Externally

Q - When do you seek internal help or external help?

Often decisions need to be made rapidly and in unpredictable situations with incomplete data.

Crowd sequencing

"...it entails activating different crowds at different times to address different types of uncertainty..."
Christopher Bingham et al, 2022

It involves how to accelerate innovation and address uncertainty?

When alone, innovators are subject to information-processing limitations, ie
"...their information is incomplete and what they know is affected by cognitive bias. Left unaddressed, the shortcomings can result in poor outcomes for individuals, teams, and organisations..."
Christopher Bingham et al, 2022a

Using crowds is a way to handle this, ie generate effective solutions to overcome the inherent limitations of individual cognitive processing, especially where quick decisions are made in uncertainty.

It involves using a range of people to address different types of uncertainty related to innovation at different times; there are 3 steps to  using crowds:

i) to ensure that you are solving the right problem (this is linked with problem uncertainty, ie
"...most participants and observers have an incomplete or inaccurate picture of what is going on and what is at issue. And we all tend to overvalue information that is consistent with our existing beliefs..."
Christopher Bingham et al, 2022a

Plus the sheer volume of information available and time restraints can increase the chance of making the wrong decision when you consider, process and interpret these problems. Usually people stop searching for solutions once they find one that seems 'good enough'.

Traditional ways to handle this include":

- solicit as much feedback as possible and as quickly as possible from the most diverse possible range of people, ie as individuals, focus groups, etc

- creating time to reflect and review on the feedback is a way to avoid cognitive overload, ie allow sufficient time to develop insight into the various components of the innovation

- get intermittent feedback, ie this allows interweaving of advice with experimentation in order to iterate between receiving advice and implementing it for testing purposes.

NB As feedback is intermittent and scattered, people tend to respond to each individual's advice. This can result
...in operational and strategic zigzagging and even impulsive pivoting or failure to address something important..."
Christopher Bingham et al, 2022a

Recently this approach has been challenged as it has been found
"...an unorganised, unfocused array of people are preferable to focus group because the diversity of input exposes biases and blind spots embedded in the existing problem definition and framing......also suggests that amassing lots of input upfront is more helpful than perceiving feedback over an extended span of time: patterns are more evident when feedback is solicited within a compressed period of time..."
Christopher Bingham et al, 2022a

By compressing the feedback time, evidence of patterns are more observable and memorable, ie less likely to be dismissed, especially when many differently situated individuals agree.

Thus, collecting much information from unorganised, unfocused array of people will encourage more exploration for solutions and reduce the chance of finding something that would otherwise be viewed as satisfactory. Furthermore, this reduces the chance of cognitive biases dominating; it improves the reliability, credibility and accuracy of what has been learned)

ii) to test whether you have found the right solutions (after handling problem uncertainty, there is demand uncertainty, ie
"...lack of knowledge about whether people want your solution. Will they buy it? Will they use it? Will they share it with others?..."
Christopher Bingham et al, 2022a

Some examples to handle this include

    - design for extreme users, eg Alexander Bell's interest in education of deaf people prompted him to invent the microphone and later what he called an 'electronic speech machine', which became a telephone.

Designing for extreme users, eg from super-users (power-users) to non-users (avoidant users), helps grasp the full spectrum of requirements, ie displays the intensified versions so that you can generalise for mainstream users who are confronting similar challenges in a less intense way. Some examples

     - Ford Motor Company outfitted its test drivers with bodysuits to simulate the experience of elder drivers, who were less agile; this influenced the placement of switches and buttons, ie usability-centred approach. This led to new features like easy-to-reach seatbelts that benefit all drivers, etc

    - Twitter initially resisted the 'hashtag' symbol, as a way to organise posts topically, considering it too nerdy; some staff continued to push for is introduction; once introduced it became a mainstay feature of Twitter

"...extreme users are often outliers strongly committed to the proposed product or service...... users who can be counted on to recommend their favourite products and services freely without being asked..."
Christopher Bingham et al, 2022a

Need to get the product and market fit, before scaling up. Yet most start-ups (around 70%) fail owing to premature scaling up.

Traditional pathway learnt in business school states
"...hit on a high-demand idea, build a solution that will satisfy demand, bring in experienced people to sell the solution, and create marketing materials to promote it..."
Christopher Bingham et al, 2022a

However, it usually takes much longer to achieve product fit; premature scaling up can cause depletion of resources, like money, etc, which makes it harder to adjust when unexpected early problems arise; sometimes people become so committed to a particular solution that it is difficult to change.

To handle demand uncertainty, identify a group of champions, their unique wants and then over-deliver for them. By working with this group of early adapters, who are both knowledgeable and willing to experiment to satisfy their unmet needs, you will learn a lot. For example, Honda, in developing a pickup truck (Ridgeline),  interviewed people who ran their business out of their pick-ups, like electricians, plumbers, gardeners, general contractors, etc. They were asked which was the most important attribute of the pick-up. The answer was the tailgate. Users wanted greater functionality, eg it could be both detached and swung out to allow easier manipulation of cargo; designers responded appropriately. Similarly, Honda approached a group who barely used their pick-ups. This group used to their pick up as a buffer station when entertaining friends at tailgate parties before sporting events. Honda then included an easy-to drain tailgate with an electrical outlet to handle appliances like TVs, generators, cocktail mixers, etc.. Ridgeline then became one of the most popular trucks in USA.

"...innovators......They must resist the urge to scale up too quickly and instead take time to fully grasp the need for extreme users and to test solutions with them..."
Christopher Bingham et al, 2022a

NB
"...because of their personal connections to a particular problem, extreme users are less useful earlier on, while innovators are exploring problem uncertainty. Once leaders have focused on the right problem, slowing down to test potential solutions, extreme users will facilitate rapid scaling up later by indirectly addressing the needs of those who will appreciate the same solutions in a less fervent way......extreme users can help resolve demand uncertainty by expanding the range of use......and by identifying aspects of the problem that most need solving..."
Christopher Bingham et al, 2022a

Using extreme users results in the designers not falling into the trap of designing for mainstream users. Design only for mainstream users it can result in a generic, average product and/or service that is both uninspiring and easy to copy.)

iii) to execute solutions (to address supply uncertainty, ie

- Can you supply what the people want?

- Do you have the knowledge and understanding necessary to create what is in demand?

If new technology is involved, it is best to extend beyond your usual networks to access for both fresh ideas and expertise to implement novel solutions required, ie promote greater diversity of thought and cross-fertilisation of thought.

The best fresh approaches come from people with whom you have the weakest connections; those with strong connections are less likely to have fresh approaches owing to their familiarity with you.

For example, Canon developed its personal copier by using experts in photocopying processes with experts in chemistry, ie
"...jointly, the two groups created a typewriter-size copier and the easy-to-replaced disposal phone cartridge, a new product that was soon in high demand..."
Christopher Bingham et al, 2022a

Organisations like Google and Apple encourage people of different disciplines to mix, like in cafeterias. It was hoped that by encouraging informal interactions they would lead to spontaneous conversations and frequently to useful solutions. These spontaneous encounters, informal communications, etc can be done digitally.)

Summary

Diagram - inside v outside (How can we best leverage the knowledge of others inside and outside the organisation?)

(source: Christopher Bingham et al, 2022)

"...To combat cognitive bias and construct a complete picture, leaders should leveraged the expertise of dis-similar crowds, both internal and external, to the organisation. Drawing on the right crowds at the right time, a process known as crowd sequencing helps accelerate innovation amid uncertainty. Leaders should solicit time-compressed feedback from diverse unorganised groups, then overdeliver for a small 'love group', then leverage weak-tie relationships..."
Christopher Bingham et al, 2022a

 The benefits of crowds sequencing