“Companies that have embraced new ways of thinking about selling are thriving, and those trying to do more of the same are struggling,” said Errol Greene, director of Verity Insight Partners. “The fact is that not only has the economy changed, but the way people do things has also changed.” Sounds like the opposite I’ve heard from others. “Our members have told me they don’t want to think differently.” confided a CEO of a large manufacturing association. “They really just want to get some money from the government to help them out until things get back to normal.” What organizations do you think are surviving this economic downturn?
The definition of insanity: doing the same thing again and expecting a different result.
Apple couldn’t compete against Microsoft. In fact, the Mac was in such bad shape that they sold part of the company to Bill Gates just to raise capital to stay afloat. Its founder and CEO, Steve Jobs, was gone and they couldn’t break into the personal computer because Windows was cheaper and outsold. When Jobs returned, what was his response? It was no longer about shifting Apple’s focus from computers to wireless handheld devices. The result? The company created their own market where they could dominate. By innovating and doing things differently, Apple has bounced back to the point where it is now bigger than Microsoft.
How to build a sustainable competitive advantage
The key for any organization is how they can build a culture that allows ideas to flow and still be able to meet their short-term production and financial goals. For many organizations, it’s almost like trying to plan a cross-country trip while stuck on a treadmill. You use a lot of energy to keep moving in one place and you don’t seem to be going anywhere. The key is to allow your greatest resource, your people, to express and build ideas. The question arises, how do you do it? Here are some quick ideas you can use to help build a culture that is capable of change and innovation.
1. Focus on practical innovation
What is practical innovation? It starts with allowing people to think differently. Give people the tools and rewards to think differently. From there, you can filter the ideas and start creating a strategy. The next step is to implement the strategy and create a series of measures to assess whether that strategy is working. As you assess and address issues that arise, you approach new issues once again by thinking about them differently.
two. Talent Management Strategy – Go from Loyalty to Commitment
Recognize people for what they have done and their accomplishments, not simply for their longevity. Here’s a radical thought: give people the tools they need to find another job! It may seem like a strange idea, but it is the idea of providing relocation internally. Why? Because so much of career management is based on achievement! It is the reason why we do behavioral interviews. Past success leads to future success is the philosophy behind behavioral interviewing. Giving people career management tools, like measuring their achievements and building a resume that reflects what they’ve done. prior to they leave, you are encouraging people to engage and perform better. If you give them the space to succeed so they’ll want them elsewhere, they’ll stay with you. It’s like the old saying goes, if you release them and they don’t come back to you, they were never really yours to begin with. People, whether they like it or not, have to be entrepreneurs and understand that they are CEOs of their own company called ‘Me Inc.’ and the better the product, the greater the rewards.
3. Create a common language
The fact is that the way people communicate has a direct impact on their ability to innovate. Negatives like ‘objective’ and ‘however’ can quickly stifle both ideas and commitment. By creating a positive common language, ideas have a good flow and can be created in “real time“. A common language helps not only to create options, but also encourages people to brainstorm to find solutions and not just get stuck.
Four. look at your rewards
People respond to how they are rewarded. When you promote people who keep their heads down and play it safe, you send the message to others that this is the way to succeed in the organization by keeping a low profile. The way you reward people includes promotions, bonuses, recognition, and even punishment. Empowerment is also a type of reward. It shows people that you trust them and allows them to execute on their ideas.
5. take care of your people
If people are stressed or going through a difficult time, it’s very difficult to be innovative. Burnout, worry and anxiety lead to lower performance and therefore fewer ideas. If you really want to involve someone, give them some space at work to deal with a personal issue. It’s amazing once that crisis passes, how committed they are to your organization.
6. Promote real diversity
If everyone agrees with everything, there is one opinion too many. Diversity isn’t about people looking different, it’s about people thinking different. They recently did a poll in a couple of major newspapers and found that over 90% of people voted for the same person. The result is that these publications have built a reputation for presenting biased views and their readership and publicity is so low that one of them (news week) recently sold for $1. Look for people with different backgrounds and careers. Maybe instead of someone with corporate experience, hire someone who owns their own business. If you are into high tech, you may be looking to attract people from the manufacturing sector. The problem with so many organizations is that they hire people who are ‘just like them’, even if they look different. Disagreements, with respect for the other person, can be a good thing. My grandfather, who owned a very successful department store in Missouri, used to say that sometimes you have to listen to your enemies because they will tell you things you need to hear that your friends are afraid to say.
7. clear communication
Two rules of business 1) if you promise by Thursday, deliver by Thursday and 2) NEVER promise by Thursday. Be honest with people and don’t make promises you can’t keep. If things change, tell people. They probably already know this somehow. Innovation is closely linked to communication. In fact, it is the basis of innovation. Direct and respectful communication is essential for innovation.
Part of your strategic plan: harness your collective genius
McDonald’s, as everyone knows, is one of the most successful restaurant chains in the world. There’s a story I heard about its founder, Ray Kroc. Kroc, like all of us, had strengths and weaknesses. One of his weaknesses, curiously, was innovation. He was a master at creating processes, but what he struggled with was coming up with new ideas that could help the company. In the 1950s, there was a problem that McDonald’s was facing. Many of his customers were Catholic, and at the time, a large percentage of Catholics did not eat meat on Fridays. McDonald’s franchisees were demanding that more than hamburgers be created so they wouldn’t lose this valuable market on Friday. Kroc then created what he called the Hawaiian Burger. It was a piece of grilled pineapple on a bun. It capsized like a lead balloon. Fortunately, one of Kroc’s gifts was the realization that he didn’t have all the answers, so he returned it to his franchisee. Someone suggests instead that they take fish, bread and fry it and introduce that product instead. Thus, the Filet-o-Fish was born and became one of McDonald’s staples.
The lesson is that no matter how smart or creative you are, no one person can have all the ideas all the time. Every organization needs to continually tap into the collective genius of its people. It is, in essence, the only truly sustainable competitive advantage you have to help them get through tough times.