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Corp innovation conundrum 5

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Empowered here specifically means do whatever in the name of innovation with no support given as money, manpower, useful quick decisions, etc…, and if it does accomplish anything meaningful that is worthy of a press release, sponsor will come pose for a photo with the innovator and talk about the same fantasies and mention ideas that are actively being developed to make the fantasies more real…

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For every

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For every initiative, discipline (action, research etc), normal, or even some cases truth, technology trends above are played with in some form.

E.g.
If I try multi disciplinary, you can counter with anti disciplinary or trans disciplinary.
If I act normal you are free to choose paranormal even during appraisals.

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cognoise

Why the PMO is dead, done and dusted?

Lets look at some core functions of the PMO and how it is dead, and why they will continue to be irrelevant.

1. Major responsibility that I did when in an IBM PMO was review of a bunch of projects. Review of progress is not so useful in the world of constant communication, low planning and high coordination. Primarily because there will always be a delay to this reporting and whatever form of output, will not be fresh or add to current decisions and progress. Only being engaged constantly, in-situ works esp in the complex/emergent and chaotic/novel domains.

2. Second job within the PMO was demand and intake management. As I see today, the central IT departments are so warped in their own cocoon of legacy processes and structures, their client business departments are fortunately free with their own IT budgets and prefer to go independent.

Thus leaving the IT department only with some of the following that are stuck in a different age tenet.

  • GRC, ERP, finance, other corporate systems, stuck in the records era
  • providing infrastructure that is already commodity, stuck in the pre-cloud era
  • or licensing of standard software, stuck in the PC/pre-mobile era

For example take document storage, editing and collaboration, in the age of dropbox and google docs, when all we get within the company is a PC age MS Word to be sent over email or uploaded in a sharepoint, all these were the IT department’s independent decisions. Take connectivity or storage, with  at least 2 mobile devices per head that have better connectivity and also employee’s overall personal storage leads the standard enterprise storage with poor connectivity. OK those for another post.

Point I am trying to make is the legacy standard processes have lived their life (and dead now) to be managed from the PMO. Recently I was filling a paper form for deploying a mobile application internally, and I realized this in a worst possible way waiting for some PMO to review this and get back on the request. Surely their demand management processes are outdated and responsibilities have shifted elsewhere which is business itself.

3. When business departments have gone independent, it makes it clear for them to track accountability for their investment not some un-translatable set of IT metrics that the PMO tracks. At least through my career, I have seen so many promotions inside the IT department, because of this lack of clear metrics, that even a failed business outcome project could be a grand success IT project.

If the PMO was to be even marginally useful, only way is actually play/perform, not review/report…

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metaidea

Exploitation as contradiction in ideality

2 really disparate examples of exploitation here, I will do a couple of illustrations for defining these contexts as contradictions in players’ ideality and then applying a trend.

One from the affordable internet efforts and why even with reducing capex and opex telecom companies would not cut prices to customers and continue to exploit.

Player Function Ideality Contradiction and resulting exploitation
ISP/Carrier/Operator connect subscribers                          to internet not lose subscriber base, increasing revenues/cash flows, decreasing spend, monopoly increasing average revenue and profit per user directly contradicts with customers ideality to pay
Customer/Subscriber connect to internet for access to services and information pay nothing for connectivity, highest speed possible, always connected ties with devices, price increasing data plans, speed limitations, and forced congestion from operators
Investor invest for returns in companies that make profits reducing capex and opex with increasing revenues and profit is approaching ideality reduced customer service levels and migration of customers, puts revenue and profits on a decline, hence the stock value as well
Media Industry create and distribute media monopoly for content and affiliated business, no other competitive media / distribution channels becomes viable Access to media from internet directly contradicts with their business model to sell content from traditional forms of discs, cable tv content

Second example is around immigration from the recent Syria crisis, even though legal immigrants add value to the migrated place, why politicians continue to exploit voting population by fueling negative perceptions around immigration. But still continuing to turn a blind eye on labor exploits of immigrants to continue with a not so competitive economy.

Player Function Ideality Contradiction and resulting exploitation
State/Politician development and upholding state  sovereignty zero dollars spent on regulation, and citizens get all priority services from government, and never lose an election allowing cheap immigrant labor into non-subsidized industries maintains a bad economy building a false perception around immigration maintains status quo and votes from conservative population that wants to maintain sovereignty
Immigrant Labor to industry every border is open, every country is ‘migration’ worthy, on par with citizen benefits, rights protected lack of labor law to govern their employment means giving away rights, without votes or rights deprived of having a voice in the country
Industry/Employer Value creation for economy, investor, and customers cheap and exploitable labor use and less than minimum working conditions for higher profits, no litigation on violations lack of labor inspection / governance maintains  status quo, including less than worthy labor conditions and pay to immigrants and this as the only way to maintain competitiveness in a falling economy
Citizen Tax payer and uses benefits from state.Also customer for industry. Subsidized sectors, and unemployment benefits for citizens, Pay/Benefits without job. Subsidy perceived as right and any state capital spent on immigrants is actually something the citizen could be deemed eligible for as lost/wasted.
Border Control Regulate migrant flow into state no immigration (legal / illegal) means no patrol or control necessary migrants posing threats to sovereignty, and citizen welfare, calls for massive spend in border control and leading to a back passage creation

Now in both cases at super system level, you could add regulations that will move some functions from the players to another neutral authority. So Regulatory Authority could standardize price plans, open up migrations across, just like they do in insurance policy terms and conditions. Similarly new technology like unlimited connectivity say from Google Moon or, open id, could turn functions in favor of customers/migrants, while skewing for specific types of businesses and not the legacy ones.

In both cases simple system completeness trend will show deficiencies in the governance bit, and a massive undercut of benefits from customers/migrants as a driving force for the functions delivered.

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metaidea

Innovation questions to management, some more

Which of the following gets an overwhelming yes from your leaders internally

  1. We don’t have to  innovate or invest internally in innovation, as there are other smarter players and start-ups, that we just need to follow suit or outright acquire them. Just tell me who they are?
  2. We know our team has ideas on strategies and priorities, that we are unable to invest time and resources. Can the innovation team just take up one/many such items and come back with solutions?
  3. We are all stuck in a very old thinking pattern and tenet, constrained by assumption. All we need is a training that will help us break that pattern and leave it at that. Can we also get a certificate at the end of the course?
  4. Problems provide the best low hanging fruits for innovation, can we just stick to problem solving, instead of doing open themes for innovation?
  5. Decision on strategy are made elsewhere at least in our area of work, really see no road ahead for any idea pipeline, even if they are only mildly disruptive. So we should focus on execution than innovation?

my original and building list of survey questions on innovation is here

 

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Innovation risks

Drucker‘s Landmarks of Tomorrow lists clearly 3 risks that arise out of innovation is comprehensive and can orient towards tasks and outcomes around innovation quickly. Even if outcomes are a function of many variables and ambiguous,(an excuse that innovation managers typically ride on to retain jobs/titles while not really “tasking”) you still have to act. That said  “tasking” / task orientation is necessary and not arbitrary or ambiguous in any enterprise. That’s a post for another day. So these tasks arise after the enterprise decides to reduce its first risk in innovation.

1. Risk of Exposure. Exposure risk is an inaction risk, while remaining very successful in the chosen market, this risk makes the whole business irrelevant as newer models and innovations take over existing customers and create new ones. I visualize this risk on a slider bar, where there is a NO on the left end and an YES commitment on the right. Depending on the level of YES, time and resource availability is determined for innovation.

Risk of Exposure Slider bar

This YES commitment (on the risk of exposure) does not mitigate but lead to the next, new set of risks below. In any case this risk cannot be avoided. You can see examples today in education like the massive open online courses offered by Coursera and the likes while the incumbent i.e. every higher education player could have very well acted earlier or the popular digital photography disruption misses by Kodak.

Risk of failure in developing the innovation When I heard Ravi Venkatesan at the recent Zinnov Confluence, he mentioned “skunkworks are interesting to see in labs, but unless the whole organization aligns to an innovation, there is really no chance”. I believe that, by organization he would mean the “tasks” on business processes starting from budgeting, development, sales/marketing, service, legal etc. that are specialized and entrenched across departments, but need to come together. Successful businesses ideally should not delay capex investments into innovation, and commit to experimenting the next set of revenue drivers. Experiments could be for example

  • small like skunkworks or community driven developments internally
  • taking ownership in companies that are doing the development

Still the structure has to commit itself to this developmental action and evaluate all along even if it means changing directions many times mid way to make sure the next risk of failure is covered. With the crowd sourcing possibility on almost anything this risk has greatly reduced, this as a model has been operational across many platforms like kickstarter (for investments), or ninesigma (for effort).

Risk of failure of the innovation itself

This is the biggest of all risks and can be really dramatic, and we know many stories like these in recent times. What Drucker calls here as ‘responsibility for the consequences’ of the failure itself, while constantly acting for the opportunity. It is no more a chance but choice and choosing to resolve contradictions between the global versus local, profit versus free, etc and thus becoming a value decision in itself. Most of us are aware of the commercial failure of much touted innovations like Segway and others.

Risks in Innovation

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Innovation Cues: Force Field Analysis

When Kurt Lewin came up with the framework for Force Field Analysis it was only applied to social situations, as in conflicts/society. If we take the same framework to innovation it becomes hugely applicable in developing ideas within an organization, which in itself is a complex social setting. In this post I will try to explain the basic form of force field analysis and how I think it can be applied in an innovation context.

First the concepts, “force” is a factor that drives movement within a setting, and “field” is an overall/gestalt setting as combination of many elements including motives, needs, ideals, values etc. In the analysis we list down forces that move a goal in opposite directions as is like below

Goal: _____________________________________

Worst Outcome aka Hell: _____________ Ideal Outcome aka Heaven: __________
Forces in the negative direction

  •  
Forces in the positive direction

  •  

Key questions to ask in the analysis after you list forces are

  1. What can I do to eliminate/reduce the forces that are against developing an idea further?
  2. How can I reinforce/strengthen the positive forces that will push the idea further faster towards an ideal outcome?
  3. Can I add a new positive force?

It is interesting to note the similarity between Ideal Final Result or Future Backwards here. But the key difference is force field analysis is centered in the “NOW” (not on a future or past), thereby assessing the current setting and draw a path to creating favorable conditions for innovation to flourish.

Even if it means communications/messaging, building relationships, having an open conversation, resolving conflicts of interests, agreeing to share credits/power/outcomes, among other “political” action that an innovation manager does. 

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