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Cultivating an imaginative culture that behaves creatively




                                            Cartagena de Indias, Colombia
                                                       September 17, 2012
                                                                    23 June, 2011
                                                   MichaelMichael Eckersley, PhD
                                                          Eckersley, PhD
about us
OUR PRACTICES         TOUCH            RESULT

human research &      products       new value
   discovery

    concept                          consumer
                      services
  development                        experience

 design strategy      systems        perception

  visualization /     brands       human behavior
    simulation

                    environments   system behavior
Q: How can an
  innovation culture     Q: What kinds of
    be cultivated in    sensibilities, skills,
    organizations?      and talents should
                         be sought for to
                         accomplish such
                              work?



   Q: What would
 success look like?
What will new value,     Q: What tools,
   solutions and         processes and
    advantages         leadership should
     resemble?         teams be given in
                       order to succeed?
the
context
   Organizations are struggling to be
   competitive in a dynamic global
   economy, to achieve sustainable
   growth, and find the future first.
   All at the same time.
   The challenges are significant...
changing ourselves
                   (1945)




We are shaping the world faster than we can
change ourselves, and we are applying to the
present the habits of the past.”
                            – Winston Churchill
the adaptive corporation
                        (1985)




The corporate environment has grown increasingly
unstable, accelerative, and revolutionary... The
adaptive corporation, therefore, needs a new kind of
leadership. It needs “managers of adaptation”
equipped with a whole set of new, nonlinear skills.
                   –Alvin Toffler, The Adaptive Corporation
sense and respond
                    (2003)


“Management is shifting from a stance of
predicting and controlling change to one of
building an organization to sense change and to
respond appropriately – adaptive management”.
                              –Christopher Meyer
                                         Monitor
Work (and workers) today are
 very different from the atomized,
industrial work models of the past
the gap between what we are
and what we need to be is large




“In the archives of any decent -sized organization, an
unfiltered record will show institutional life in all it’s
boredom and inefficiency. Most initiatives fail. Internal
competition trumps external goals. People are petty,
whiny, and unmanageable.”
                                          –Nicholas Lemann
Efforts at change or innovation are
 routinely met with stiff resistance.
  Norms and best practices have
their place, but new value creation
     requires experimentation.

“Powerful constituencies inside the company
collectively beat the change idea into a shape that
more closely conforms to the existing business model
rather than to the opportunity in the market.”
                                     --Clayton Christensen
Innovation: a social phenomenon




   “Innovation is a social or economic term, not
   a technological one, defined in terms of
   demand rather than supply. changing value
   and satisfaction obtained from resources by
   the consumer.”
                                    –Peter Drucker
we have built a system of
 organizational life that
repels human creativity,
 that inhibits innovation
Schedules
                Goals
               Budgets
               Margins
             Projections
                Costs
                Teams
                Clients
               Analysts
   too often lost is a sense of
               Vendors
                  PR
cohesion and integrated effort by
                 Sales
people passionate to create new
             Production
value as a Service workers the future
            pathway to
              Managers
             Strategists
              Marketers
              Designers
              Engineers
            Administrators
             Regulators
               Auditors
the growth imperative
                        “90% of all publicly traded companies have
                       proved themselves unable to sustain for more
                         than a few years a growth trajectory that
                       creates above-average shareholder returns.”

                                            –Clayton Christensen & Michael Raynor
                                                           The Innovator’s Solution

© HumanCentered 2007, All Rights Reserved
Goal:


           Create new business models
          and organizational cultures that
           promote innovative behavior



© HumanCentered 2007, All Rights Reserved
how?
the approach:
    create the conditions that
    foster organic growth, social
    innovation, integrative
    thinking, creative behavior
All we have is us
                                to produce the futures
                                       we desire




© HumanCentered 2007, All Rights Reserved
management as an art:
                              a systematic practice,
                             intellectual and practical




                                            –Richard Buchanan, Case Western

© HumanCentered 2007, All Rights Reserved
The corporate imagination
                  is a competency for seizing
                   opportunities and creating
                      new ideas, new value


                Human imagination is the ability to look at noisy,
                ambiguous situations, spot the critical dynamics,
                and visualize a more interesting, promising future
                than others are willing or able to see. The corporate
                imagination is the collective ability of it's people
                channeled to supply new ideas and systems.

© HumanCentered 2007, All Rights Reserved
What creativity is (and isn’t)
“Creativity is an inspired riff on something
understood deeply”. It is not making something
up out of nothing. The value of creativity to an
organization is in the solutions, the actionable
ideas, the differentiated advantage it provides.




•Creativity is not a characteristic of individuals;
 it is a class of activity.
•Ideation is not creativity. Uninformed ideas have no value.
•Creativity changes the systems that give objects meaning.
•Though there may be accidental discoveries, there is no
 unintentional creativity.
       –from R. Robinson & J. Hackett, “Creating the Conditions for Creativity”, DMI Journal
Design and integrative
               approaches to management
                offer a way to change how
              companies think about risk and
              opportunity, and act in adaptive
                 ways to define the future




© HumanCentered 2007, All Rights Reserved
(deductive)                                 (inductive)                     (abductive)


                  “Design is a complex problem solving process
                 whereby artifacts are structured to attain goals”
                                                           –Herbert Simon




                               so what is design?
        products                              conceived                 functionality
         services                            programmed                   reliability
          brands                               organized                    beauty
     communications                           developed                    elegance
         systems                                  built                  profitability
       experiences                              crafted                   efficiency
           etc.                               engineered                   viability
                                               fashioned                      etc.
                                                  etc.

© HumanCentered 2007, All Rights Reserved
so what is design?

                    In most people's vocabularies, design means
                    veneer. It's interior decorating. It's the fabric of
                    the curtains of the sofa. But to me, nothing could
                    be further from the meaning of design. Design is
                    the fundamental soul of a human-made creation
                    that ends up expressing itself in successive outer
                    layers of the product or service.
                                                              – Steve Jobs



© HumanCentered 2007, All Rights Reserved
so what is design?


"Design is only secondarily about pretty
lumpy objects, and primarily about a whole
approach to doing business, serving
customers, and providing value."
"Design... has become central to enterprise
strategy."
                                  –Tom Peters
What is design thinking?

             1. Conditioned inventiveness
             2. Human-centered focus
             3. Environment-centered concern
             4. Ability to visualize
             5. Tempered optimism
             6. Bias for adaptivity
             7. Predisposition toward multi-functionality
             8. Systemic vision
             9. View of the generalist
             10.Ability to use language as a tool
             11.Affinity for teamwork
             12.Facility for avoiding the necessity of choice
             13.Self-governing practicality
             14.Ability to work systematically with qualitative
                information                           –Charles Owen, IIT


© HumanCentered 2007, All Rights Reserved
Smart firms are using design to
              reshape management practice




           “Our interest now is in how to use design thinking, the
           methods and concepts of design practice, in the art of
           management to shape the organizations in which we
           live and work.”
                                            –Richard Buchanan, Case Western

© HumanCentered 2007, All Rights Reserved
the conventional
business approach      create a     develop      sell them to
                       business     offerings     customers
 (predict & provide)
         >



   build the bridge
         >




                         deeply
a human-centered                     develop        build a
                       understand
 design approach                    concepts &     business
                         users/
                                     offerings   around them
  (learn & respond)     contexts




                                                      adapted from Vijay Kumar, IIT
Sources of design innovation
+4                                                                       top-down
        High Search:
                                      global
                                                                        innovations
+3      environmental
          & market
            factors               macro economic
+2
                                  market/industry

+1
                                  organizational


 0                      “street-level” issues & operations

                                physical/biological
-1
                                   socio-cultural
-2
         Deep Search:
                                   psychological
           human
-3         factors
                                     spiritual
                                                                         bottom-up
-4                                                                      innovations
     Learning                                                Learning
      Cycle 0                          (time)                 Cycle 1
Social innovation:
            Contributor archetypes




    the                  the                     the                     the
   warrior             explorer                 saint                   artist
Inspired by          Inspired by         Inspired by              Inspired by self-
challenge,           exposure to new     connecting with          expression,
individually and/    and different       and helping              making meaning
or with a team, it   worlds, imagining   others; making the       through art,
is all about         something that      world a better           music, acting,
winning.             has never been.     place.”                  writing, etc.



                                adapted from “Cultivating organizational creativity in an age of
                                   complexity.” IBM 2010 Chief Human Resource Officer Study
Design thinking offers ways to
               reframe old problems, ways of
                getting past sapping conflicts
                      and lousy trade-offs.
                It is a distinctively integrative
                 way of looking at the world.




© HumanCentered 2007, All Rights Reserved
Design thinking and integrated
     thinking: two sides of the same coin




         Integrative thinking is “the predisposition and the capacity
         to hold two diametrically opposing ideas in their heads.
         And then, without panicking or simply settling for one
         alternative or the other, they’re able to produce a synthesis
         that is superior to either opposing idea. Integrative
         thinking is my term for this process...that is the hallmark
         of exceptional businesses and the people who run them.”
                                            -Roger Martin, Rotman, “The Opposable Mind”

© HumanCentered 2007, All Rights Reserved
Polarity management is a
                      mode of integrated thinking

          Many of the current trends in business and industry are
          dilemmas or polarities to manage, not problems that can
                                    manage,
          be solved Distinguishing between the problems you can
              solved.
           solve and those you cannot is important. The objective
               of polarity management is to get the best of both
                  opposites while avoiding the limits of each.




                                            – Barry Johnson, “Polarity Management”, HRD Press



© HumanCentered 2007, All Rights Reserved
Managing polarities
       refusing tradeoffs, looking for synthesis

physical       Forward-thinking business designs will seek
 world
                 to create new value at the intersection                           digital world
                    of the physical and virtual worlds




systems          Finding solutions to complex problems                                   design
                  requires both analytical and creative
thinking            thinking styles working together                                    thinking


               Complex systems (for example, the human
efficiency        body) are able to adapt in an orderly                              disruption
               fashion to unexpected challenges because
                    their many distinctive parts work
                            smoothly together


             Creative leadership is about seeking opportunities                      expand the
zero sum      for shared value creation, even in the toughest
                                                                                        pie
                   times and most difficult circumstances


                              adapted from “Cultivating organizational creativity in an age of complexity.”
                                                           IBM 2010 Chief Human Resource Officer Study
Social innovation is a human
 phenomenon of collective intelligence,
  understanding and imagination. The
sweet spot of innovation is more about
  the people than about technology or
business models. Mastery is earned not
by power or control, but through patient
 collaboration and persistent influence.
Cultivating an imaginative culture that behaves creatively




                        !   Muchas gracias!
                                              Cartagena de Indias, Colombia
                                                         September 17, 2012
                                                                      23 June, 2011
                                                     MichaelMichael Eckersley, PhD
                                                            Eckersley, PhD

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Cultivating an imaginative culture that behaves creatively

  • 1. Cultivating an imaginative culture that behaves creatively Cartagena de Indias, Colombia September 17, 2012 23 June, 2011 MichaelMichael Eckersley, PhD Eckersley, PhD
  • 3. OUR PRACTICES TOUCH RESULT human research & products new value discovery concept consumer services development experience design strategy systems perception visualization / brands human behavior simulation environments system behavior
  • 4.
  • 5. Q: How can an innovation culture Q: What kinds of be cultivated in sensibilities, skills, organizations? and talents should be sought for to accomplish such work? Q: What would success look like? What will new value, Q: What tools, solutions and processes and advantages leadership should resemble? teams be given in order to succeed?
  • 6. the context Organizations are struggling to be competitive in a dynamic global economy, to achieve sustainable growth, and find the future first. All at the same time. The challenges are significant...
  • 7. changing ourselves (1945) We are shaping the world faster than we can change ourselves, and we are applying to the present the habits of the past.” – Winston Churchill
  • 8. the adaptive corporation (1985) The corporate environment has grown increasingly unstable, accelerative, and revolutionary... The adaptive corporation, therefore, needs a new kind of leadership. It needs “managers of adaptation” equipped with a whole set of new, nonlinear skills. –Alvin Toffler, The Adaptive Corporation
  • 9. sense and respond (2003) “Management is shifting from a stance of predicting and controlling change to one of building an organization to sense change and to respond appropriately – adaptive management”. –Christopher Meyer Monitor
  • 10. Work (and workers) today are very different from the atomized, industrial work models of the past
  • 11. the gap between what we are and what we need to be is large “In the archives of any decent -sized organization, an unfiltered record will show institutional life in all it’s boredom and inefficiency. Most initiatives fail. Internal competition trumps external goals. People are petty, whiny, and unmanageable.” –Nicholas Lemann
  • 12. Efforts at change or innovation are routinely met with stiff resistance. Norms and best practices have their place, but new value creation requires experimentation. “Powerful constituencies inside the company collectively beat the change idea into a shape that more closely conforms to the existing business model rather than to the opportunity in the market.” --Clayton Christensen
  • 13. Innovation: a social phenomenon “Innovation is a social or economic term, not a technological one, defined in terms of demand rather than supply. changing value and satisfaction obtained from resources by the consumer.” –Peter Drucker
  • 14. we have built a system of organizational life that repels human creativity, that inhibits innovation
  • 15. Schedules Goals Budgets Margins Projections Costs Teams Clients Analysts too often lost is a sense of Vendors PR cohesion and integrated effort by Sales people passionate to create new Production value as a Service workers the future pathway to Managers Strategists Marketers Designers Engineers Administrators Regulators Auditors
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  • 23. the growth imperative “90% of all publicly traded companies have proved themselves unable to sustain for more than a few years a growth trajectory that creates above-average shareholder returns.” –Clayton Christensen & Michael Raynor The Innovator’s Solution © HumanCentered 2007, All Rights Reserved
  • 24. Goal: Create new business models and organizational cultures that promote innovative behavior © HumanCentered 2007, All Rights Reserved
  • 25. how? the approach: create the conditions that foster organic growth, social innovation, integrative thinking, creative behavior
  • 26. All we have is us to produce the futures we desire © HumanCentered 2007, All Rights Reserved
  • 27. management as an art: a systematic practice, intellectual and practical –Richard Buchanan, Case Western © HumanCentered 2007, All Rights Reserved
  • 28. The corporate imagination is a competency for seizing opportunities and creating new ideas, new value Human imagination is the ability to look at noisy, ambiguous situations, spot the critical dynamics, and visualize a more interesting, promising future than others are willing or able to see. The corporate imagination is the collective ability of it's people channeled to supply new ideas and systems. © HumanCentered 2007, All Rights Reserved
  • 29. What creativity is (and isn’t) “Creativity is an inspired riff on something understood deeply”. It is not making something up out of nothing. The value of creativity to an organization is in the solutions, the actionable ideas, the differentiated advantage it provides. •Creativity is not a characteristic of individuals; it is a class of activity. •Ideation is not creativity. Uninformed ideas have no value. •Creativity changes the systems that give objects meaning. •Though there may be accidental discoveries, there is no unintentional creativity. –from R. Robinson & J. Hackett, “Creating the Conditions for Creativity”, DMI Journal
  • 30. Design and integrative approaches to management offer a way to change how companies think about risk and opportunity, and act in adaptive ways to define the future © HumanCentered 2007, All Rights Reserved
  • 31. (deductive) (inductive) (abductive) “Design is a complex problem solving process whereby artifacts are structured to attain goals” –Herbert Simon so what is design? products conceived functionality services programmed reliability brands organized beauty communications developed elegance systems built profitability experiences crafted efficiency etc. engineered viability fashioned etc. etc. © HumanCentered 2007, All Rights Reserved
  • 32. so what is design? In most people's vocabularies, design means veneer. It's interior decorating. It's the fabric of the curtains of the sofa. But to me, nothing could be further from the meaning of design. Design is the fundamental soul of a human-made creation that ends up expressing itself in successive outer layers of the product or service. – Steve Jobs © HumanCentered 2007, All Rights Reserved
  • 33. so what is design? "Design is only secondarily about pretty lumpy objects, and primarily about a whole approach to doing business, serving customers, and providing value." "Design... has become central to enterprise strategy." –Tom Peters
  • 34. What is design thinking? 1. Conditioned inventiveness 2. Human-centered focus 3. Environment-centered concern 4. Ability to visualize 5. Tempered optimism 6. Bias for adaptivity 7. Predisposition toward multi-functionality 8. Systemic vision 9. View of the generalist 10.Ability to use language as a tool 11.Affinity for teamwork 12.Facility for avoiding the necessity of choice 13.Self-governing practicality 14.Ability to work systematically with qualitative information –Charles Owen, IIT © HumanCentered 2007, All Rights Reserved
  • 35. Smart firms are using design to reshape management practice “Our interest now is in how to use design thinking, the methods and concepts of design practice, in the art of management to shape the organizations in which we live and work.” –Richard Buchanan, Case Western © HumanCentered 2007, All Rights Reserved
  • 36. the conventional business approach create a develop sell them to business offerings customers (predict & provide) > build the bridge > deeply a human-centered develop build a understand design approach concepts & business users/ offerings around them (learn & respond) contexts adapted from Vijay Kumar, IIT
  • 37. Sources of design innovation +4 top-down High Search: global innovations +3 environmental & market factors macro economic +2 market/industry +1 organizational 0 “street-level” issues & operations physical/biological -1 socio-cultural -2 Deep Search: psychological human -3 factors spiritual bottom-up -4 innovations Learning Learning Cycle 0 (time) Cycle 1
  • 38. Social innovation: Contributor archetypes the the the the warrior explorer saint artist Inspired by Inspired by Inspired by Inspired by self- challenge, exposure to new connecting with expression, individually and/ and different and helping making meaning or with a team, it worlds, imagining others; making the through art, is all about something that world a better music, acting, winning. has never been. place.” writing, etc. adapted from “Cultivating organizational creativity in an age of complexity.” IBM 2010 Chief Human Resource Officer Study
  • 39. Design thinking offers ways to reframe old problems, ways of getting past sapping conflicts and lousy trade-offs. It is a distinctively integrative way of looking at the world. © HumanCentered 2007, All Rights Reserved
  • 40. Design thinking and integrated thinking: two sides of the same coin Integrative thinking is “the predisposition and the capacity to hold two diametrically opposing ideas in their heads. And then, without panicking or simply settling for one alternative or the other, they’re able to produce a synthesis that is superior to either opposing idea. Integrative thinking is my term for this process...that is the hallmark of exceptional businesses and the people who run them.” -Roger Martin, Rotman, “The Opposable Mind” © HumanCentered 2007, All Rights Reserved
  • 41. Polarity management is a mode of integrated thinking Many of the current trends in business and industry are dilemmas or polarities to manage, not problems that can manage, be solved Distinguishing between the problems you can solved. solve and those you cannot is important. The objective of polarity management is to get the best of both opposites while avoiding the limits of each. – Barry Johnson, “Polarity Management”, HRD Press © HumanCentered 2007, All Rights Reserved
  • 42. Managing polarities refusing tradeoffs, looking for synthesis physical Forward-thinking business designs will seek world to create new value at the intersection digital world of the physical and virtual worlds systems Finding solutions to complex problems design requires both analytical and creative thinking thinking styles working together thinking Complex systems (for example, the human efficiency body) are able to adapt in an orderly disruption fashion to unexpected challenges because their many distinctive parts work smoothly together Creative leadership is about seeking opportunities expand the zero sum for shared value creation, even in the toughest pie times and most difficult circumstances adapted from “Cultivating organizational creativity in an age of complexity.” IBM 2010 Chief Human Resource Officer Study
  • 43. Social innovation is a human phenomenon of collective intelligence, understanding and imagination. The sweet spot of innovation is more about the people than about technology or business models. Mastery is earned not by power or control, but through patient collaboration and persistent influence.
  • 44. Cultivating an imaginative culture that behaves creatively ! Muchas gracias! Cartagena de Indias, Colombia September 17, 2012 23 June, 2011 MichaelMichael Eckersley, PhD Eckersley, PhD