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Innovation heroes are a sign of a dysfunctional organization

steveblank.substack.com

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Re: Innovation heroes are a sign of a dysfunctional organization

#11
post #4

I favor the general point here, but the leading anecdote doesn’t really fit with the lessons learned. A government organization generally does not need an innovation doctrine to avoid being outcompeted because they are a monopoly provider. They maintain that monopoly through force. If you want to get a government agency to perform better, fix the incentives.

Incentives matter, certainly, but you must suss out what those incentives are and what they need to be to arrive at the desired outcome. Look no further than the US Digital Service and 18F (within GSA). You are not paid top dollar, but you are put in front of meaningful work and enabled to deliver (although that in itself is an incentive for the practitioners recruited). From the bottom of the impact report I cite: "We need you. Let’s help millions of people together." right above the Call to Action to apply.

The USDS is enabled to succeed in this mission through the support of the Executive Office of the President, the equivalent of corporate executive sponsorship. Culture comes from the top.

https://www.usds.gov/impact-report/2024/

https://www.usds.gov/impact-report/2024/by-the-numbers/

(full disclosure: went through a USDS interview cycle and was extended an offer, no other affiliation)

Re: Innovation heroes are a sign of a dysfunctional organization

#12

"Innovation Doctrine" sounds like something you put next to your Mission Statement. How about fostering an internal discussion board where employees can pitch ideas and get hooked up with others who know how to implement them? If you need guard rails around the anarchy, then you can tie action items to a ticket tracking system that's readable by the whole company. I can file a bug in JIRA against any product my compa…

Because in large companies, any helpful suggestions get lost in the noise. Everyone has opinions on how things could be done better, but very few of them are good.

Re: Innovation heroes are a sign of a dysfunctional organization

#13
This a million times! I’ve been in the position of the “innovation hero” but also was unfortunate enough to work on “innovation pipeline” implementations within a large company. These never work because:

1. (99% of) employees don’t care. They have their own job to do and working on other things is an eyebrow raise from their manager (see 3). And what’s the e benefit? Mostly it’s a pat on the back or some “points” in the company award system that you can use to buy shitty merch at the end of the year.

2. Executive leadership doesn’t care because for the most part they don’t trust their own tech team to innovate. Why take the risk when you can buy a startup which comes with a bona fide certificate of innovation.

3. But the real problem (as commonly identified) is middle mgmt, who not only don’t care but are generally hostile to nonstandard work. The reasons for this are complex, partly it’s the aging manager suffering from Peter Principle, partly it’s the fear of negative pushback from senior leadership.

PS: Steve is amazed, but 10 months for the sort of setup he describes which includes HW buy and setup, in a Big Corp is very fast.

Re: Innovation heroes are a sign of a dysfunctional organization

#14
I agree to the overall tone, but there are also counter points.

One of them is the Google example. To get promoted beyond a certain level, you must have brought some new product over the finish line. Result? They have so many new things happening all the time, all of them suck, and then just move on to the next. Eg how many chat products do they need to invent before they settle on one and let it mature?

Re: Innovation heroes are a sign of a dysfunctional organization

#15
post #8
post #4

I favor the general point here, but the leading anecdote doesn’t really fit with the lessons learned. A government organization generally does not need an innovation doctrine to avoid being outcompeted because they are a monopoly provider. They maintain that monopoly through force. If you want to get a government agency to perform better, fix the incentives.

Doesn't the leading anecdote give an example of a (dis)incentive that needs fixing? That it takes 10 months and lots of head-banging and then you get a $100 bonus, that would certainly disincentivise me to do any type of innovation.

POSIWID implies that unchange is the desire of the government. People desire unchange and this is a tool they use to try to force it on everyone.

Re: Innovation heroes are a sign of a dysfunctional organization

#16
> Why Innovation Heroes are a Sign of a Dysfunctional Organization

Because often you can solve 99% of companies problems with boring software.

I am reminded of this blog post from earlier this week:

> Most organizations cannot ship the most basic applications imaginable with any consistency, and you're out here saying that the best way to remain competitive is to roll out experimental technology that is an order of magnitude more sophisticated than anything else your I.T department runs,

https://ludic.mataroa.blog/blog/i-will-fucking-piledrive-you...

Re: Innovation heroes are a sign of a dysfunctional organization

#17
Reminds me of the Drucker quote about “culture eats strategy for breakfast.”

The problem is that large organizations naturally drift toward inertia and ossification. If a forward-looking leader wants the culture to change, they are faced with a conundrum:

- use a strategy like this (e.g. some top-down “innovation center” approved at the C level) which reinforces the rigidity and process-oriented thinking that needs to change, or

- create an insurgent skunkworks group that hopes to prove a different approach via undeniable results. This usually ends with back-alley knives getting unsheathed.

Re: Innovation heroes are a sign of a dysfunctional organization

#18

> Why Innovation Heroes are a Sign of a Dysfunctional Organization Because often you can solve 99% of companies problems with boring software. I am reminded of this blog post from earlier this week: > Most organizations cannot ship the most basic applications imaginable with any consistency, and you're out here saying that the best way to remain competitive is to roll out experimental technology that is an order of m…

Updating a spreadsheet with data pulled from another system sounds more like "boring software" than "experimental technology".

Re: Innovation heroes are a sign of a dysfunctional organization

#19
> what we just witnessed was leadership rewarding and perpetuating a dysfunctional and broken system.

It's not clear that it is dysfunctional. If innovation is not a particularly high priority, but risk reduction is, then the system is working as designed - all of the checks are necessary. Compare to the "innovative" Boeing-type company which streamlines production by removing all safety checks.

Re: Innovation heroes are a sign of a dysfunctional organization

#20
Lacking a method to implement continuous improvement is the dysfunction.

“When [W. Edwards Deming] came to spread the gospel of continuous improvement in 1950, he was preaching to the choir. Toyota already believed in it. [Deming] simply gave them a process to better understand how to progress from failure. The idea of ever-improving coupled with what they learned from Deming—especially the Theory of Knowledge and shorter feedback loops via the PDSA loop, as well as the Theory of Variation and the accompanying statistical process control—let them succeed in their failure.”

From “Deming’s Journey” by John Willis. Solid recommended new read.

https://www.amazon.com/Demings-Journey-Profound-Knowledge-In...

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