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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

#31
post #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?

> To get promoted beyond a certain level, you must have brought some new product over the finish line

This always confused me. It looked from the outside like Google does so many things right on the innovation front, but after some early success they have had a rough streak.

I'd argue that one thing that Google is doing wrong is gatekeeping promotions based on (overly) well-defined criteria such as new products. Goodhart's Law applies to this situation: you're sure to see lots of new products if its highly rewarded - a lot more than you'd see naturally. As the author mentioned - this might still be desirable depending on the market conditions, but there is a lot more to this discussion, and it's not entirely clear that Google has it wrong.

I'd argue that they emphasize comparability of assessment results(e.g. being able to quantify someone's output like a percentage grade in a course) over the actual relevancy of the assessment criteria/work/kpi to the company's bottom line(e.g. does the course's test actually prepare students for the real world). This probably comes as a by-product of the organization's heavily academic-focused staff - so it might actually be the best culture choice for them given that context - but it might also lose to companies that can successfully put a bigger weighting on the right "intangibles".

Re: Innovation heroes are a sign of a dysfunctional organization

#32
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.

Well, except when they do.

Can you really imagine a military that didn't have and celebrate heroes?

If a large organization can't have those that sacrifice themselves and break rules to achieve the greater goal, then they're unlikely to succeed against a significant foe. At the same time communication within large organizations is challenging and leadership is unlikely to know what the challenges at the front line are. Fostering all innovation is as likely to lead to regularly scheduled mediocre "improvements" and "features" that nobody really wants in order to meet whatever metric is in place (to the detriment of what is not explicitly measured).

The argument of the article seems to be, just be so good and well directed by both senior and middle managers that exactly the "right" innovations occur within the process. That likely means those in the trenches aren't getting what they need.

The most effective rapid innovation method I've seen (though painful and challenging to implement) is having separate teams competing to several performance milestones (which allow more generic goals and targeted metrics). At the milestones they share their results and innovations, which competing teams can then use/combine to compete against them. Management needs real goals with known tradeoffs, 2-3x more people than a single team, and it's stressful hitting deadlines knowing that failure is an option. The failure mode is putting all the "best" people on one team which is supposed to win, though I've seen even that get broken by a team of underdog "heroes" who embarrassed the chosen team, and luckily senior management rewarded that.

It's similar to "red" vs "blue" pen-testing or wargaming, but you can have more than 2 teams and the goals can be aligned against the status quo (sometimes a tweaked current solution is the winner).

Re: Innovation heroes are a sign of a dysfunctional organization

#33
Not sure that you can fix a calcified bureaucracy with "doctrine". I sort of get the angle, I think -- if the org operates within a rigid rule framework, you need to speak their language to get anywhere -- so, doctrine is best, because everyone is used to being told what to do? I feel like that approach is counter to the spirit of innovation, that's akin to being forced to have fun; nothing truly innovative will come from it.

I think it's more of a lost cause, really. If you want to work on cool new stuff, don't work at a large org. I play the "innovation hero" role often enough, and the diversity of pushback we encounter is impressive. It ranges from thinly veiled hostility, the sdev equivalent of NIMBY, lies through omission, through nonviolent noncompliance, all the way to blithely unaware absurdity.

One amazing moment stands out to me - we were jumping through the usual hurdles as described in the article, trying to get a prototype to prod, and in one meeting the head of IT indignantly exclaimed "I am not here to solve problems!". To paraphrase a scene from the Big Short: he wasn't confessing, he was bragging. The top brass exist to stifle any and all deviation from the norm.

Another commenter in this thread makes a very good point: most of these innovation initiatives die stillborn, because the existing power structures exist, their MO is to maintain, and the C-suites would rather buy a successful startup than take any political risks internally.

Re: Innovation heroes are a sign of a dysfunctional organization

#34
The problem with this particular anecdote is that 'innovation' and 'government agency' are used in the same sentence.

Most people do not equate any government agency with an innovative environment. Bureaucracy is the watchword where the status quo is not only encouraged but fiercely protected.

Any new hire or politician who threatens to reform the process is treated as the enemy.

Re: Innovation heroes are a sign of a dysfunctional organization

#35
>> Why is it that innovations require heroics to occur in our organization?

Why do we immediately assume that innovation = progress? Sure, the things that SURVIVE are useful, but that's just the tip of the iceberg. The vast majority of ideas are just like mutations in evolution more likely to be at best useless and probably damaging in various ways.

You see, social constructs are not as dumb as they appear to be to the armchair intellectual. "Why, we should embrace innovation and immediately adopt any idiocy that Mary from accounting is suggesting as our global company policy". I assure you that by natural law, if "random idea from random guy" were profitable on average, we'd have a system that would encourage such ideas. The sad fact is that they aren't and will never be.

Friction (named in the article as "Dysfunctional Organization") is an unfortunate but necessary process which ensures "survival of the fittest", even among "innovation". It's as simple as that.

Re: Innovation heroes are a sign of a dysfunctional organization

#36
I worked for a large company and started seeing opportunities for automation immediately. I proposed some solutions to my boss, and he told me that he agreed that these tasks could be automated, but that we have 10,000 other tasks that could be automated, and each one takes a few months to get the resources provisioned and also set aside developer (me) time to get it done, which could be spent on other projects.

What was interesting to me was the self-fulfilling prophecy of dysfunction: because there was so much manual process and red tape, the cost of fixing a particular problem is larger than than the benefits (i.e: time spent on the task exceeds time saved by automating it).

But because the tasks do not get automated, the amount of time required to fix things increases bit by bit due to the processes in place. The cost of fixing a task increases marginally every day, and so the cost/benefit ratio increases every day, becoming further justification NOT to fix things. At a certain point you have to look at the bigger picture and recognize that there is a much larger problem in your company than a few excel spreadsheets that could be better automated.

Re: Innovation heroes are a sign of a dysfunctional organization

#37
I honestly don't know where innovation exists that doesn't require "fighting the system" to some degree.

There are a lot of bad ideas out there and the "system" is there to weed out the bad ideas. However, you can have too much system where it will defeat even the good ideas too, so there's a sweet spot.

IMO it's comes down to how much leftover budget (time or money) the organization has. You don't need processes or procedures for innovation... you need people with enough leftover money and time who can "screw around" a little.

Also a place where everyone is not grumpy.

Re: Innovation heroes are a sign of a dysfunctional organization

#38

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 t…

I think there is possibly a third way.

I’m currently working with the NHS in a Quality Improvement role in a hospital. The team exists to give grass-roots folks the tools they need to make change happen when they spot something in the system which is less than ideal. We offer training, help with setting aims, running projects, finding stakeholders, analysing data etc. These aren’t huge system transformation projects, in fact some of them can be quite small - but as a way of working it feels quite effective.

Re: Innovation heroes are a sign of a dysfunctional organization

#39
To be fair, creating a process for innovation is hard and expensive - especially if you want it to apply across the board at a large organization.

I have been on multiple "incubator" development teams in the past and although we did move faster, my times at smaller startups still felt significantly more productive.

You want something that is the right balance of bespoke and standardized/transferable. Its not easy, but there is so much room for improvement at these bigger organizations that there is huge value to getting it right.

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