IN THIS ISSUE:

• Letter From Sarah
• Feature Article - How to Design a Winning Innovation Team
• Out of the Box
• Events and Resources
• The Edison Awards
• About Sarah Caldicott

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Dear Innovator:

Although I am a big fan of the Summer Olympics, if truth be told I'm less enamored of the Winter Olympics. Even though I've spent most of my life in cold-weather climates and love snow, somehow I find less fascination with most Winter Olympics events.

 

I was thus struck by a headline that popped up in a February 18th article in the Wall Street Journal (WSJ) commenting on how well the American women's downhill skiers were faring. The headline read, "The Americans Win With Another Rodeo." Huh?

 

Journalist Matt Futterman commented that the women's downhill gold captured by Lindsey Vonn last week was actually not a thing of beauty. It was wild, it was sketchy, it was breathtakingly reckless. And she even did it all with a nasty bone bruise on her leg.

 

This notion of achieving victory after a hair-raising performance is consistent with another major theme of Futterman's article: unlike other nations, America has a long history of sending "swaggering U.S. cowboys" to the downhill. He contrasted America's long string of men's and women's downhill medals - among the most coveted of the Winter Games - to the paucity of medals won by classically trained, highly "manicured" skiers from Switzerland and Austria.

 

And suddenly, it hit me. Futterman's article addressed why we drool over the downhill, why we are so fascinated with the "rodeo swagger" of American skiers, and how all this connects to innovation.

Sarah at the Friar's Club in New York City after announcing the 2010 Edison Awards Finalists, simulcast live on the Discovery Channel website.

It's the daring-do! It's the pull-out-all-the-stops breed of risk-taking! It's the how-close-to-the-edge-can-I-get-without-falling-or-killing-myself-and-still-win-it-all mindset that we love to see! And this touches us deeply as Americans. We are risk-takers at heart. There are times when we will bet the store, bet the business, even bet our lives. Other nations often scratch their head at this mindset, yet it is fundamental to the American character.

 

This ability to take risk - even the admiration of risk-taking - is also crucial to innovation success. As I highlighted in last month's feature article, "How to Drive Creativity and Risk-Taking," you cannot medal in innovation unless you are a risk-taker. You cannot cross the finish line unless you can find new, creative ways to get there. With a playing field in the global economy that changes on a weekly basis, success cannot be achieved by coloring inside the lines.

 

This month's feature article continues an exploration of the qualities of the Innovator begun last month. Read what innovation researcher Dr. Jacqueline Byrd has learned about the two kinds of innovation teams necessary to create success, and how you can begin applying this learning in your business.

 

One question I'm often asked is, "How big should my innovation team be?" Read about what Dunbar's Number has to say about this in the Out-of-the-Box segment. Dunbar's Number is a fascinating social relationship theory recently made popular by Malcolm Gladwell's Tipping Point, and also by the successes of Facebook.

 

In this month's Edison Awards section, check out the next wave of exclusive video footage we've filmed with Mr. A.G. Lafley, former CEO and Chairman of Procter & Gamble. Plus, read the names of the 2010 Edison Awards Finalists announced February 11th (Edison's birthday) at the Friar's Club in New York City, and simulcast live on the Discovery Channel's website. These companies could be on their way to innovation gold!

To your innovation success,

PS: Please share this newsletter with a co-worker or a friend!

Feature Article - How to Design a Winning Innovation Team

(click here to view past newsletter issues)

How big should an innovation team be? What skill sets should be included on an innovation team to ensure maximum success?

Executives frequently ask me these questions. And while there are no iron-clad answers, there are guidelines which can help deliver success in this very grey area of the innovation process.

Thomas Edison was a master of selecting the right people for his innovation teams. A firm believer in what today we would call "cross-training," Edison developed a farm team of players who could skillfully fulfill multiple roles in his organization. He insisted that some of his best experimenters also learn manufacturing, for example. As well, scientific specialists were temporarily sent off to serve as General Managers for new factories, so they could understand the practicalities of delivering products to customers. Upon their return to the laboratory, they were grounded in "utility" (as Edison would call it) and could no longer adhere to raw theory alone. Through these actions, Edison embedded in his organization the creativity and risk-taking behaviors crucial to innovation success.

While today we rarely have the luxury to cross-train for added bench strength, we can begin designing our project teams for innovation success. Today's article focuses on how to build a winning innovation team. My comments build upon the findings of Dr. Jacqueline Byrd, co-author of The Innovation Equation, whose innovation research was highlighted in the January edition of Edison's Notebook. Based on interviews with over 14,000 companies of all sizes, Jacqueline has profiled the 8 orientations which together maximize the success of an innovation team. These align closely with the skill sets Edison drew upon for his own world-changing innovation efforts.

This article reveals two specific kinds of teams you can begin developing to drive greater innovation success in your organization. While reading, I urge you to consider what your own personal "orientation" is: Would you be a better member of the first team or the second team?

CONSIDER DESIGNING INNOVATION TEAMS THAT OPERATE IN TWO PHASES
Edison found small teams of 3 to 8 people to be the optimal size for innovation success, particularly in the early stages of his endeavors. As ideas gained traction and required pre-launch testing, individuals were added to this small, core team. Management science has today verified what Edison intuitively knew - namely that "small is beautiful" when it comes to gaining traction for innovation initiatives.

Jacqueline's research has identified a unique two-phase team structure which holds promise to relieve some of the pitfalls organizations encounter both at the development and launch phases of an innovation initiative. She indicates that two kinds of teams are needed, each uniquely drawing upon the skill sets of the 8 "orientations" she's profiled.

The chart below lists these profiles. The occurrence of each orientation within the average organization is shown in parentheses. The Idea Team (shown at left) ideally kicks off the innovation effort, and the Execution Team (shown at right) brings it to market:

Phase 1 - The Idea Team: This group optimizes the ability for organizations to source breakthrough ideas that will build existing businesses as well as create totally new ones. The outlook and orientation of the Idea Team draws on a combination of high creativity and high risk-taking behaviors.

The challenge for leaders is that these breakthrough ideas flow from a cluster of employees typically constituting only about one third of its total headcount (34.6%). Sometimes, this figure is even smaller depending on company hiring practices. Below are explanations of the four orientations which characterize the Idea Team, followed by an explanation of the Execution Team and its members. As well, please see the chart a few paragraphs down which lays out all 8 orientations.

The Idea Team represents the group of people which can best kick off ideas, and nurture them to a point where they gain enough traction to move toward execution. The Idea Team consists of:

The Innovator: These individuals seem to have an idea every minute. They constantly push the organization to "think ahead of the curve," but can become frustrated when a company's infrastructure can't move rapidly enough to implement their ideas. Capable of hitting home runs, they are often ostracized in companies because of their stubbornness. Innovators serve as passionate drivers of ideas adopted by the Idea Team.

 

The Synthesizer: These individuals see patterns and possibilities all around them. They are highly creative and can reshape concepts readily. Less risk-oriented than the Innovators, their role on the Idea Team is to develop breakthrough ideas, but may need assistance in driving to get them done. If your organization lacks Innovators (which many do!) the Synthesizer is your next go-to resource for the Idea Team.

 

The Dreamer: Capable of creating entirely new worlds (think Star Wars, Lord of the Rings trilogy), these individuals are hugely creative but do not know how to drive them forward.  Present more widely in the general population than in corporations, they often need assistance in sharing their ideas. Some of their thinking can be so "out there" that these individuals require skilled colleagues to listen to them and draw them out.

 

The Practicalizer: This is the only role which is common to both the Idea Team and the Execution Team. In many instances, Practicalizers make excellent CEO's. They balance creativity and risk-taking, and generally have strong people skills and communications skills. Although they are able to stay focused and stay practical, Practicalizers can sometimes miss "the home run."

Below is a more detailed chart which lays out all 8 orientations. You can see how each orientation shifts in its preference for Creativity and Risk-taking...the two criteria which define an individual's innovation skill. (Creatrix chart used with permission.)

IN PHASE 2 THE EXECUTION TEAM CARRIES FORWARD THE WORK OF THE IDEA TEAM
Jacqueline's research indicates that innovation is best supported when the work of the Idea Team is then carried forward by a second group - the Execution Team. The Execution Team takes the product or service to market. The skill set of the Execution Team is less focused on creativity and risk-taking, and more focused on planning and launch.

However, two crucial components must be considered. First, the same Practicalizer which served on the Idea Team must also serve on the Execution Team. This provides continuity between the developments in Phase 1 and those which will occur in Phase 2.

Second, the Execution Team can often benefit from the inclusion of a few members of the Idea Team, particularly in instances where the idea being launched is new-to-the-world and not simply an extension of an existing concept.

Phase 2 - Execution Team: The resource base from which most organizations can draw in designing an Execution Team is much larger than the base for the Idea Team. Roughly two-thirds (65.4%) of an organization's employees qualify for inclusion on an Execution Team. But remember, if a company has a short supply of Innovators or Synthesizers, they may be even more focused on adaptation and planning than normal!

The Challenger: These individuals want to keep things moving forward. "Progress" for the Challenger comes across as "anything is better than nothing." Often highly critical of new ideas, they can serve as major advocates once they are fully on board with the new concept.

 

The Modifier: Incremental change and "tweaks" suit the comfort zone of this group. Ideal for process improvements and initiatives like Lean or Six Sigma, this group is uncomfortable with deeply creative or new, high-risk concepts unless they believe they've been well thought through. (Note: most CEO's of large organizations are Modifiers.)

 

The Sustainer: These folks like stability, and prefer to support what has always worked. These individuals provide consistency and continuity for an organization. Initially resistant, if you can get this group to buy into the concepts developed by the Idea Team, they will support it forever.

 

The Planner: These individuals are readily able to take ideas and transform them into action plans. They are most comfortable accepting ideas which connect to the existing corporate strategy or approved annual plan. If the new initiative "doesn't fit into the existing plan" they will have trouble supporting it.

What You Can Do Starting Now

In the next issue: The Innovation Power of Uniqueness

Out of the Box

Dunbar's Number: How Big Is Too Big?

A great deal of research has been conducted over the last 40 years to determine the optimal size of a product development team. Most findings suggest that anywhere from 3 to 8 persons is ideal for the first wave of development, before any final testing or launch is conducted. This size range maps with what Edison religiously practiced at his Menlo Pak and West Orange, NJ labs.

However, in the age of Social Media, we now have the chance to interact on a virtual basis with a dramatically expanded field of individuals.  How does this affect the size of an innovation team? Or, our ability to collaborate?

The March 2010 issue of Fast Company highlights the 50 Most Innovative Companies, ranking Facebook #1. Facebook CEO Mark Zuckerberg has added 200 million new users to the existing 150 million who'd already signed on when he arrived to head the company a few years ago. (Note: The chart below was taken from the online edition of the cover article.)

In a world were we can "friend" literally hundreds of people, at what point does this body of collaborators collapse under its own weight? And how do the numbers we can access via Facebook and other Social Media tools expand - or detract from - our innovation power?

DUNBAR'S NUMBER
In 1992, Mr. Robin Dunbar - a British anthropologist - developed a theory about how large social groups could get before they were too big, and would fall apart. Based on research which evaluated the behavior of primates all the way to military leaders waging war on the battlefield, Dunbar's observations yielded "Dunbar's Number." This figure identifies the maximum number of individuals with whom we can each have meaningful social relationships. Dunbar's Number: 150.

For perspective, in his best-selling book The Tipping Point, author Malcolm Gladwell talks about Dunbar's Number (pages 178 - 181, 184 - 187). In part, the human brain evolved because humans were required to interact with increasing numbers of other tribes to survive. Humans are able to hold higher numbers of social relationships than chimpanzees or other primates due to brain size - specifically, the processing power of the human neocortex.

Gladwell cites an intriguing example. Imagine going to a dinner party with 20 people, all of whom you know well. At this party, you are actually tracking a whopping 190 two-way relationships. This figure reflects the sum of your direct two-way connection with each of the other 19 people, plus all of THEIR interconnections within the group. The 190 figure is derived by calculating 19 factorial (which is 19 + 18 + 17 + 16...+1).

So, if we consider that Dunbar's Number is more than 7 times larger than the one used in this simple dinner party example, we can see the enormous complexities involved with a "team" of 150 persons!

DUNBAR'S NUMBER AND THE INNOVATION SUCCESSES OF OUTERWEAR LEADER GORE-TEX
W. L. Gore & Associates, the makers of award-winning Gore-tex® outerwear, are deeply familiar with Dunbar's Number. Gore's leadership has created their entire corporate culture around the notion that 150 persons equals one cohesive unit. This means that no Gore plant is greater than 50,000 square feet in size, because it requires approximately 150 persons to operate. When a new plant is needed, rather than expanding an EXISTING plant, Gore constructs a new factory as near to its other existing plants as possible. In fact, Gore operates 15 plants within a 12-mile radius in Delaware and Maryland. This allows for each 150-person plant to develop its own culture while still remaining in close proximity to the other plants - a factor crucial for creating cross-communication between factories.

Gore's internal studies show strong interconnections between core functional areas result from this structure. Manufacturing, Marketing, Sales, R&D, and Customer Service communicate more seamlessly as a result. Gore leader Bill Gross states: "If you get too large, you don't have enough work in common."

Edison did a very similar thing. Many of his 175+ factories were placed within either a half-day's buggy ride, or a full day at most. (Of course, the advent of the Model T brought everything closer.) This meant that close cultural communities could be created both within and between the factories.

So, consider Dunbar's Number when mapping the size of your innovation teams, and its sphere of collaborators. How many can the team handle? Don't weigh down your innovation teams with an excessive body count just to get a bigger budget, or pull more clout! Plus, read this month's feature article to determine the skill sets of the people you want on your innovation teams!

Events and Resources

The Edison Awards
Dedicated to America's Innovation Competitiveness in the 21st Century

2010 Edison Awards Finalists Announced Live Via Simulcast on the Discovery Channel

On February 11th - Edison's 163rd birthday, and just one day after the 12" snowfall that recently hit New York City - the names of the 2010 Edison Awards Finalists were revealed.

The announcement came via live simulcast on the Discovery Channel's website. Although the videotape of the simulcast is presently being edited to add product visuals for the Finalists, click here to see the press release listing all the Finalists in 10 categories. Also featured is a new category for 2010, the Edison Green Award.

Being a Finalist in the Edison Awards means your product or service was placed on the formal 2010 Edison Awards ballot in January 2010, and received enough votes from the members of the Marketing Executive Networking Group (MENG) - an association of nearly 2000 senior-level marketers and academics in diverse disciplines - to qualify for a Gold, Silver, or Bronze Edison Award designation in a given category.

Congratulations to this year's Finalists!

2010 Edison Achievement Award Winners
Shown below are two leaders from industry who have been selected this year to receive an Edison Achievement Award for their contributions to innovation excellence. They are: Mr. A.G. Lafley (below at left) the former Chairman and CEO of Procter & Gamble; and Dr. Susan Hockfield (below at right), 16th President of the Massachusetts Institute of Technology. Both award winners will be honored on April 29th at a gala evening celebration at The Capitale in New York City.

Mr. A.G. Lafley Former Chairman & CEO, Procter & Gamble	Dr. Susan Hockfield President, Massachusetts Institute of Technology

Watch the Latest Innovation Video!
To view the second innovation video in our series of 6 installments featuring A.G. Lafley, click here. This two-minute installment addresses "How P&G Recognizes and Rewards Innovation."

About Sarah Caldicott

Sarah Miller Caldicott is a great grandniece of Thomas Edison, a 25-year marketing veteran, and co-author of "Innovate Like Edison: The Five-Step System for Breakthrough Business Success." She has assembled teams of highly experienced consultants and trainers to assist her in bringing Edison's Five Competencies of Innovation™ to organizations of all sizes. Sarah and her teams are capable of addressing business challenges from a diverse array of industries, in either a business-to-consumer or business-to-business environment.

Sarah is a dynamic and award-winning speaker, whose engaging style combines substantive business content with humor. Her invaluable experience offers an ideal resource for organizations seeking innovation success in today's rapidly integrating global marketplace.

Born and raised in the Midwest, Sarah received a BA from Wellesley College, where she was named a Wellesley College Scholar. She also holds an MBA from the Amos Tuck School of Business at Dartmouth. Sarah resides in Oak Park, Illinois, and has two teenage boys, Nicholas and Connor. For additional information on Sarah, click here.

©2010 by Sarah Miller Caldicott. All Rights Reserved.