Innovation Competency # 5 – Super-Value Creation

One definition of innovation is “the process of creating and delivering new customer value in the marketplace.” Thomas Edison’s philosophy of value was “bringing out the secrets of nature and applying them for the happiness of man.”

Authors Michael Gelb and Sarah Miller Caldicott, writing in Innovate Like Edison, call this approach super-value creation.

Why “super”? Because it suggests creating value above and beyond your competitors. It is the ultimate innovation competency. Edison knew of “no better service to render during the short time we are in this world.”

Once he had gathered information about openings in the market and the needs of the consumer, Edison analyzed how his observations meshed with what his laboratories could deliver – or could learn to deliver. He then calculated how much it would cost to go after the market –or markets – he had in mind, creating an innovation plan including commercialization options. Finally, he placed the finish touch on his products: the mystique of the Edison brand name.

Edison was a master at anticipating trends and spotting gaps in the marketplace. His approach used both analytical and intuitive tools to help determine market size and the best target audience.

Thomas Edison drew customers to his products with sophisticated branding techniques plus a wide array of media and communication tools. Using Edison’s ideas of super-value creation as your guide, you can learn how to design a business model that is best suited for your ideas, or for your organization and its innovation endeavors.

Read on overview of Edison’s Five Competencies for Innovation here.

This material adapted from Innovate Like Edison, by Michael J. Gelb and Sarah Miller Caldicott

A multi-part series being reposted in honor of Thomas Edison’s birth February 11, 1847

Next: An introduction to Sarah Miller Caldicott’s book on innovation, Midnight Lunch

Innovation Competency #4 – Master-Mind Collaboration

What happens when you combine the talents of a British textile merchant, a Swiss watchmaker, an American mathematician with a master’s degree in physics, an Irish electrician, a German glassblower, and African-American electrical engineer, and a partially deaf telegrapher?

For Thomas Edison, the result was a world-beating team of collaborators who churned out hundreds of commercially viable patents and products.

Although Edison was an incomparably brilliant independent innovator, he understood and valued the importance of working with others. He knew he needed a trustworthy team of collaborative employees who cold illuminate his blind spots and complement his talents.

The word “collaboration” comes from the Latin root collaborare, meaning “to labor together, especially intellectually.” The term “master-mind” was introduced by success expert Napoleon Hill to refer to a very high level of collaboration. He defined it as a “coordination of knowledge and effort in a spirit of harmony, between two or more people, for the attainment of a definite purpose.” Hill emphasized that when people come together with their passions aligned with common goals, they can multiply their individual intelligence in an expanding framework of positive, creative energy. Hill witnessed the living expression of this idea in the laboratories of Thomas Edison.

Contemporary sociological and psychological studies demonstrate consistently that the collaborative, open model developed by Edison optimizes the confluence of creativity, strategy, and action.

Edison’s approach to master-mind collaboration allowed his teams to be exceptionally productive in generating, developing, and testing his innovations. Edison always understood, however, that the ultimate purpose of all their efforts was to crate exceptional value for their customers.

Next: Super-Value Creation

Read on overview of Edison’s Five Competencies for Innovation here.

This material adapted from Innovate Like Edison, by Michael J. Gelb and Sarah Miller Caldicott

A multi-part series being reposted in honor of Thomas Edison’s 166th birth February 11, 1847

Innovation Competency #3 – Full-Spectrum Engagement

When you are overworked and stressed out it’s very difficult to focus effectively on innovation. How can you successfully manage a massive workload, like Edison did, without succumbing to exhaustion and burnout?

Time management isn’t the answer.

Edison understood that although time on the clock was limited, the wellspring of creative inspiration was boundless. He drew on a seemingly endless source of energy and he had a remarkable range of expression.

No matter what he was doing, he was fully engaged, living life in the present. His ability to move freely, efficiently, passionately, and creatively through a day’s many activities and roles was a critical aspect of his success method. Edison discovered an optimal rhythm to facilitate amazing stamina and high performance.

Authors Michael Gelb and Sara Miller Caldicott, writing in Innovate Like Edison, call Edison’s approach full-spectrum engagement. It is a competency that you can cultivate to access the same boundless energy that fueled Edison. His approach balanced work and play, solitude and collaboration, concentration and relaxation.

Edison knew the value of how to discover simplicity and clarity in the midst of ambiguity and complexity.

Next: Master-Mind Collaboration

Read an overview of Edison’s Five Competencies for Innovation here.

This material adapted from Innovate Like Edison, by Michael J. Gelb and Sarah Miller Caldicott

A multi-part series being reposted in honor of Thomas Edison’s 166th birth February 11, 1847

Innovation Competency #2 – Kaleidoscopic Thinking

Edison’s ability to generate a vast range of ideas drove his world-beating approach to practical solution finding. He could consider many problems at the same time and was able to look at each one from multiple angles. At the height of his exploration into electrical power, for example, he worked on forty projects simultaneously. Edison credited his remarkable facility for making creative connections to his “mental kaleidoscope.”

Kaleidoscopic thinking is the term Michael Gelb and Sarah Miller Caldicott developed for Edison’s unparalleled approach to practical creativity. He had strategies for juggling multiple projects and how to “turn a problem around” from every angle. Kaleidoscopic thinking will help you develop your ability to generate ideas, make creative connections, and discern patterns. Using both your imagination and your reasoning ability, you can discover how to liberate your mind from the constraints of habitual thinking. Edison cultivated the use of metaphors, analogies, and visual thinking. His down-to-earth way of picturing things first in his mind’s eye and then on paper is surprisingly easy to learn.

Edison’s kaleidoscopic mind brought forward revolutionary ideas that changed the way we live. In bringing the world electric light, Edison bucked conventional wisdom. His ability to manage dozens of projects simultaneously at the height of developing his electrical power system stands as testimony not only to his exceptional kaleidoscopic thinking abilities, but his capacity managing complexity is a key skill covered in Competency #3: Full-spectrum Engagement.

Next: Full-Spectrum Engagement

Read on overview of Edison’s Five Competencies for Innovation here.

This material adapted from Innovate Like Edison, by Michael J. Gelb and Sarah Miller Caldicott

A multi-part series being reposted in honor of Thomas Edison’s 166th birth February 11, 1847

Innovation Competency #1 – Solution-Centered Mindset

The phenomenon of seeing what we expect or want to see is called “mindset.” It functions all the time, consciously or unconsciously, for better or worse. Your mindset reflects your sense of purpose, and your sense of purpose organizes your purpose. In other words, purpose determines perception.

A solution-centered mindset gives you access to a wide range of tools for innovating.

Thomas Edison’s purpose was clear: “bringing out the secrets of nature and applying them for the happiness of man.” He believed that his success was inevitable and this belief energized his every endeavor. Edison’s unwavering focus on finding solutions allowed him to embrace incredibly complex challenges and overcome many setbacks.

His solution-centered mindset allowed him to embrace seemingly fantastic goals – like lighting the world – and make them come true. Edison aligned his goals with his passions and cultivated a powerful sense of optimism that had a magnetic, positive effect on his coworkers, investors, customers, an d ultimately the entire nation. It’s called charismatic optimism.

Edison’s passion for his goals and his charismatic optimism were nurtured by an unrelenting desire to learn, especially by reading. Throughout his life, Edison devoured books, plays, journals, magazines, scientific papers, and newspapers. Edison’s voracious reading created a constant stream of ideas, insights, and inspiration that led him to breakthrough solutions. His never-ending quest for greater depth and breadth of knowledge helped him develop an unprecedented approach to experimentation in service of innovation. His experiments were characterized by a remarkable combination of persistence and rigorous objective that accelerated his success.

A solution-centered mindset is the launching pad for the realization of your most ambitious innovation objectives and the fulfillment of your highest personal aspirations.

Next: Kaleidoscopic Thinking

Read an overview of Edison’s Five Competencies for Innovation here.

This material adapted from Innovate Like Edison, by Michael J. Gelb and Sarah Miller Caldicott

A multi-part series being reposted in honor of Thomas Edison’s birth

February 11, 1847

Turning On the Light: Learn to Innovate Like Edison

Every organization – not just business – needs one core competence: innovation. –Peter Drucker

Thomas Edison was the most outstanding figure in an era marked by an extraordinary confluence of American innovation – including the work of Alexander Graham Bell, Henry Ford, George Eastman, Harvey Firestone, John D. Rockefeller, George Westinghouse, and Andrew Carnegie – that accelerated America’s leadership in global business.

Edison understood that innovation is much more than invention. Through the establishment of his two extraordinary laboratories at Menlo Park and West Orange, NJ, Edison drove innovation on many levels, including strategic technological, product/service, process, and design innovations.

How did Edison excel in so many different kinds of innovation?

courtesy greenster.com

courtesy greenster.com

Innovate Like Edison presents Thomas Edison’s essential approach to innovation success. His approach is based on what authors Michael Gelb and Sarah Miller Caldicott call The Five Competencies of Innovation. The five competencies are comprised of a total of twenty-five elements – building blocks – that support them.

The five competencies and twenty-five elements represent a core curriculum for you to achieve innovation literacy. If you are new to innovation, there’s no better way to get started on the journey. Innovate Like Edison is a guidebook enabling you to thrive in a world that increasingly rewards efforts. Ready to start classes?

Edison’s Five Competencies of Innovation

Solution-Centered Mindset

  • Align Your Goals with Your Passions
  • Cultivate Charismatic Optimism
  • Seek Knowledge Relentlessly
  • Experiment Persistently
  • Pursue Rigorous Objectivity

Kaleidoscopic Thinking

  • Maintain a Notebook
  • Practice Ideaphoria
  • Discern Patterns
  • Express Ideas Visually
  • Explore the Roads Not Taken

Full Spectrum Engagement

  • Intensity and Relaxation
  • Seriousness and Playfulness
  • Sharing and Protecting
  • Complexity and Simplicity
  • Solitude and Team

Mastermind Collaboration

  • Recruit for Chemistry and Results
  • Design Multidisciplinary Collaboration Teams
  • Inspire an Environment of Open Exchange
  • Reward Collaboration
  • Become a Master Networker

Super-Value Creation

  • Link Market Trends with Core Strengths
  • Turn In to your Target Audience
  • Apply the Right Business Model
  • Understand Scale-up Effects
  • Create an Unforgettable Market-moving Brand

As you scan the 5 Competencies and 25 Elements above, consider how you might apply them to your most important innovation challenges. Think about questions like:

  • How did Edison develop his resilient, creative, and optimistic attitude toward life?
  • How did he find the right people to hire?
  • Why did he choose the collaborators he did?
  • What techniques did Edison use to teeth his ideas and then scale them up?
  • Are there implicit “rules” to follow in Edison’s approach to innovation?

Next:  Solution-Centered Mindset

A multi-part series being reposted in honor of Thomas Edison’s birth February 11, 1847

One Button: The Official Symbol of Simplicity

…a single iconic image can be the most powerful form of communication.

– Ken Segall, Insanely Simple

Ken Segall was the creative director at several ad agencies, working for big-name tech companies like IBM, Intel, and Dell. However, it was his work with Apple over a period of years that gives him a unique perspective of the stark contrast of Apple’s ways that made Segall appreciate the power of Simplicity.

The obsession with Simplicity is what separates Apple from other technology companies. Led by Steve Jobs’ uncompromising ways, you can see Simplicity in everything Apple does: the way it’s structured, the way it innovates, and the way it speaks to its customers.

Like this:

Or even this:

Apple branded itself using iconic images and two words that perfectly described the spirit of the company. Every Apple produce sold contributed to the brand image; every product became a manifestation of the brand.

There’s one more example:

One is the simplest number ever invented. It’s so simple, a child can understand it. The further you get away from one, the more complicated things get.

That’s why Steve Jobs insisted on iPhone having only one button, rejecting many models before arriving at the final version. You don’t even have to use an iPhone to get that it’s simple. In fact, one could say that the single button has become an icon of Apple’s devotion to Simplicity.

Simplicity requires little effort.

If Apple had it’s way, all of its products would feature a single button. Now that the iPhone has Siri, the voice-controlled assistant, you might want to prepare yourself for Apple products with zero buttons.

After all, zero is the only number that’s simpler than one.

I’ve really enjoyed reading Insanely Simple and its true insider’s perspective on Apple’s obsession with Simplicity. Ken Segall has really brought the concepts of Simplicity home.

As a leader, are you practicing Simplicity?

Growth Should be a Tactic, Not a Strategy

Starbucks was recently named the most innovative company in the Food & Beverage category in Fast Company’s “World’s 50 Most Innovative Companies.”

Not a bad place for a company that just a few short years ago was failing at success.

CEO Howard Schultz tends to see his company’s recent tribulations as a case study in what can happen to a business that uses growth as a strategy rather than a tactic.

For the better part of 15 years, from 1992 through 2006, practically everything the company did produced a level of success and adulation. If Frappuccino is a hot category and you introduce a new flavor, and it moves the needle a lot, the organization comes to believe, ‘That was a great thing we did.’ And it imprints a feeling of, ‘That was innovation.’ But that’s not innovation. In fact, it’s laziness.

By Schultz’s criteria, the line extension of a product involves little in the way of risk-taking or long-range vision. That was the problem with the old Starbucks.

And it’s probably a problem with your church, too.

Starbucks’ rebound is complicated: the financial rebound can be traced to domestic cost-cutting and global expansion (most notably China). More fascinating is Starbucks’ reputational rebound – the result of Schultz and his company’s efforts to renew a culture of entrepreneurialism and innovation that had fallen by the wayside during a mad rush for growth a few years back.

It’s a cultural shift from a methodical expansion of the brand to a methodical enhancement of the brand. As Fast Company’s Jon Gertner writes:

Starbucks no longer seems to perceive its future as depending on an ability to clone its essential store concept ad infinitum. To be somewhat reductive: You can try to sell the same amount of stuff at more stores. Or you can try to sell more and more stuff at the same number of stores. These days, the overarching gestalt of the company – demonstrated by its plans for redesigned stores, investments in innovative coffee machines, and expansion of its digital networks, and rewards programs – is striving for every branch to be both more versatile and more artisanal.

Don’t let all this business talk put you to sleep:

Churches often think growth is the end game, when it’s really only part of the playbook.

What sacrifices have you made – only to later regret – in the name of growth?

 

Favorite Post from February, 2012

Collaborative Innovation – Maybe Edison’s Best “Invention”

How do you define collaboration?

What made Thomas Edison so successful in creating collaborative innovation teams in his era? Sarah Miller Caldicott brings Edison’s collaboration approach to the 21st century in her new book Midnight Lunch.  Read step-by-step how Edison used collaboration to propel his teams to share their ideas in a uniquely collegial atmosphere, creating a competitive edge which became a hallmark of his laboratories.

Here’s a quick overview of the four-step process.

Step 1: Capacity

Build diverse teams of two to eight people.
What worked for Edison: To create the lightbulb, Edison’s team had to include chemists, mathematicians, and glassblowers.
Modern counterpart: Facebook’s small, collaborative coding teams.

Step 2: Context

After a mistake, step back and learn from it.
What worked for Edison: At age 22, he had his first flop–the electronic vote recorder, which legislators failed to adopt. From there, he changed his focus to the consumer.
Modern counterpart: At Microsoft, Bill Gates took intensive reading vacations each year.

Step 3: Coherence

When team members disagree, step in and make a decision.
What worked for Edison: Groundbreaking work in electricity isn’t easy to come by. Fights and frustration followed; overarching vision kept creation on track.
Modern counterpart: Whirlpool has “collaboration teams” to spark dialogue between departments.

Step 4: Complexity

When the market shifts, change your direction–or face the consequences.
What worked for Edison: It was the era of electricity. Inventors ignored that at their peril.
Modern counterpart: The implosion of Kodak, which failed to adapt to market changes.

What could your team learn from a “midnight lunch?”

Look at a Fast Company article here.

Get the book here.

Read more from Sara here.

Next: Part 1 of a 5-part series on Thomas Edison’s Five Competencies of Innovation. For an overview of the Five Competencies, go here.

Where Did the Creativity Go?

Consider the talents of the following two groups who were asked these three questions:

  • How many of you are good singers?
  • How many of you are good dancers?
  • How many of you are good artists?

About 2 percent of the first group responded positively to each of these three questions. That’s a typical response of most business teams. But it’s possible to find a second group in almost any community who would give nearly 100 percent positive responses. Surprised?

Ask any group of first graders these three questions, and the children will respond with an enthusiastic “Yes!” to each one.

All children are creative – they’re born that way!

What happened to the creative gene that was so alive in our childhoods?

Authors and consultants Bill Capodagli and Lynn Jackson have answered that question in their book Innovate the Pixar Way. Subtitled “Business lessons from the world’s most creative corporate playground,” the book details how Pixar provides a working environment that encourages imagination, inventiveness, and joyful collaboration.

The book asks, and then answers, these questions:

  • How do you build an organization that embraces change and delivers an innovative, high-quality service or product?
  • How do you establish a culture of creativity in which the talents and abilities of all are nurtured and honed with great care?
  • How do you unleash the creative genius within your team and still meet budgets and deadlines?
  • How do you establish an environment that awakens dreams?

Going behind the screen at Pixar, Capodagli and Jackson answer these questions and more. Here’s a sample:

Pixar goes to great lengths to hire people who are interested in working together as a network in solving problems, building and supporting each other. Four common proficiencies are vital to making art a team sport.

  • Depth – demonstrating mastery in a subject or a principal skill such as drawing or programming; having the discipline to chase dreams all the way to the finish line
  • Breadth – possessing a vast array of experiences and interests; having the ability to explore insights from many different perspectives; being able to effectively generate new ideas by collaborating with an entire team
  • Communication – focusing on the receiver; receiving feedback to ascertain whether the message sent was truly understood; only the listener can say, “I understand”
  • Collaboration – bringing together the skills, ideas, and personality styles of an entire team to achieve a shared vision; fostering collective creativity and keeping the vibe and energy in the room upbeat and alive

Wouldn’t you want to work on a team in an environment like that?

Maybe the better question is,  Wouldn’t you want to lead your team in an environment like that?

Tomorrow: How to Think Like a Director

Other Posts You Might Be Interested In:

The Creative Process at Pixar

The Secret of Disney World

My Top Ten Takeaways From Disney World

The Disney Job Description