Saul and Len…
If you are going to make change.. you had better be good at storytelling
The reason we can’t tell you a story is because nothing has changed, we leave everything to assumptions.
[add notes from book and back of packet.]
Partnership with 20 schools
Global
Within 5-6 years – most robust archive and the methodology to be able to scale it
I didn’t have communities I had groups
I didn’t have business models I had strategies
There isn’t a concept here that we haven’t already known for 40 years
Bob kaplan – compares for profit and non profit communities
1) Creative construction is always at work in big countries on a global scale
But there’s only an overlap of about 2 firms
There’s something going on
In nonprofits virtually no innovation
2) Tweaks to transformations – there are degrees of change that goes on in all forms of organization
What happened to the march of dimes when they found a cure for polio – they said – let’s go find another disease
Not all this innovation is all that good
Bottom 3 boxes all about doing something good
Most comfortable place to play
Line up task,
1965 – the more differentiation existed – the more complex the mechanisms need to be
The politics of integrations that you need to create, to get anything done politically often out weighs the ability to get things done
This isn’t abou t good or bad
He says he’s not going to go up against the reliability oriented world
Given cognitive limitations and structure
Structure – dartmouth friend – the only way to do meaningful is to hire it off, it can’t be done inside large organization, hive it off then the real thing is to connect it back in
Traditional large organizations are systemactically not able to make transformation happen
There’s a problem of desire
Check out zip car
His answers from other people:
Market research
Buy trucks van
Expensive, risky, no barriers to entry - but start of uhaul – check out sam
He had huge passion, bought orange paint because he had no money and no one wanted the orange paint
He said there’s no better way to solve a problem then to assert it – so he woke up and announced it would go all over the world
So sam asserted it and no one ever challenged it
How do we use this model – of u-haul to get a model of mass distribution
People were pulled by the gravitational pull of the incentive
Whether you’re doing it yourself or in a big company – it just doesn’t look like a good idea… it’s just a hell of a business
Innovators want to be defined as risky, etc – that sets up these myths:
Defines people like sam as superman
Starbucks – 23 years of decline in coffee sales, coke/pepsi caught up to coffee
First on – after italy – menu in italian, opera, etc.. lasted short.. realized – it really wasn’t about the coffee
We say you have the idea? Blow it out into a business plan of 75 pages, data, capital, because someone in the venture community might look at this.
The price is so high – you have to really really want to do it
On your own – different framework, with explosion of business plan competition, most are doing them full blown on really dumb ideas
How do you keep doing innovation without dumb ideas.. stop doing business plans
1)
2) produces to high a commitment to a risky/bad idea
How do you reconstruct the process of innovation
1) Have to be interested in it enough to produce a high level of energy
2) What’s the methodology for figuring out an idea that is 30% done and get it to closure
Start and take a step
Step creates the evidence to get to the next step
Basic step small wins
3) Risk – affordable loss vs expected return
The notion of being able to calculate expected return is a waste of time
It’s a problem of desire – how badly do I want to take that step
Think through a worst case scenario – are you still willing
If you’ve decide what your stop loss is and you live to it risk and uncertainty are completely irrelevant
All of us can do it.. just have to decide how badly you want it..
Cost of experimentation is cheap
Reasonably frictionless environment
Why not play
We have no formal ed process to engage these people
This stuff is so simple
Herb simon, sarah srafone, peter jarkes
Entrepreneurship is a method
Ways to enlist people:
a) Sell them
Tangible transfrom/exchange of goods
b) Enroll them
Friends, etc
You need both, only thing is they all need to buy in
Has to start in blue until someone can pay for orange
They all come with voice and resources, then you see the idea is becoming strikingly different than the idea you started with
Rather than look for funding – what if you sold something, what if you tried to move it along on a bootstrap
Take action as source of innovatoin rather than accumulatig resources
Tired of people who are saying their inability to act – lack of resource
It’s not lack of resources, but lack of resourcefulness
We can say – that’s a deviation fo the plan – let’s get back to it
Or we can say – that’s interesting… new info – what do we do with it
u-haul’s model is there
find people who care
license people to actually play
bilingual – being able to play in reliability world and validity world
best way to learn a language – find a partner
you looking for a structural answer – there isn’t one
the way to take the scariness out – establish mechanisms for people to actually take steps and learn
license experimentation consciously
a master at the adjacencies
I can’t change at the speed I want what’s going on in, but I can create the adjacency and then expose my organization to it and maybe they will like it
There’s a problem of reasoning
How difficult to take the skunk work change and get it into the organization
What about p&g
50% of all new products will come from w/o organization
Open market innovation , completely changed the infrastructure
Ibm and p&g – both were going to fail – is that what made them change
Is that the only way –
Clearly necessary but not always sufficient
Mechanism is the uncertainty
Am I able
Am I willing
Strikingly unsatisfactory answer to a defined institution
Action sports - have people that really care about what they do
Stimulating action –
When you don’t know things don’t subsitute enthusiasm
If I think of all my assets as liabilities I will lose because I’m going to war – defense
I don’t worry about my ability to defend
But to transfrom – I do penince by doing what I do on a global scale
The mechanism for innovation is to guarantee the ongoing protection of the original institution
Dang – just like us
Who are folks in organization that want to play
It’s not good and bad –
Adjacency serves as the r&d
Now when others are ready for something new – the lab has that
A neutral r& d platform
If you make sure we’re always number one – you get freedom
If you’re interested do great… if not – do this
Also be experimental on how we do customer service
Takes senior level and adjacent platforms
To much of this work is projects… we need a sustainable platform for experimentation
Bob kaplan’s article on creative deconstruction
Without lectures/books/theories on innovation – innovation happens
It’s natural
Faculty centric institutions – if you don’t love who faculty are and what they do – you will be at war from the get go and you will lose
Deep love and respect for the fact that you can’t get there without them