The Innovation Show

Paul Nunes has found that what matters is not just climbing your current S-curve, which is what you do to reach the top of a single successful business. Instead, he emphasises the equal importance of the moves you must make to your next business: making the jump to your future S-curve. His book reveals crucial insights for making such transitions, including: * Why traditional strategic planning won't allow you to find the "big-enough" market insights that are critical to superior performance * Why your top team must be refreshed before performance starts to wane * Why you need much more talent than you think, especially "serious talent" that will find you worthy of their time We welcome "Jumping the S-Curve: How to Beat the Growth Cycle, Get on Top, and Stay There", Paul Nunes.

In this episode, we discuss

00:00:00.000 Filling the Gap: Repeated Peaks of Business Performance 00:06:38.522 The Origin: Defining High-Performance Business 00:09:34.223 Kroger's Mistake: Not Investing in the Future 00:12:23.282 Creating Sustained Value and Jumping an S-Curve 00:16:49.711 The Nature of S-Curves and Technology's Impact 00:20:07.341 Jumping Three Curves Simultaneously: A Mind-Blowing Challenge 00:23:44.811 The Zenith Example: Jumping S-Curves or Getting Left Behind 00:26:29.471 The Importance of Big Hairy Audacious Goals 00:28:26.303 The Problem with BHAG and Matching Aspirations to Capabilities 00:34:11.000 The Importance of Listening to Insights and Sourcing Strategy 00:38:48.440 Average and low performers rely on their phones too much 00:41:53.306 The missed step of Apple with iTunes and the acquisition of Beats 00:44:59.325 Balancing short-term profits and investing in future waves 00:48:20.841 Balancing streaming profits and investing in new content creation 00:50:59.949 Surprising Price Difference in India 00:51:06.609 Scaling too hastily can lead to problems 00:54:16.844 The importance of understanding what creates value before scaling 01:00:30.502 Designing with shared components in automotive industry 01:03:32.600 Price point and competence before scaling in consumer products 01:06:29.449 Collecting vinyl records and now books

It is a pleasure to welcome the author of The Hidden Spring: A Journey to the Source of Consciousness, Mark Solms. In this episode, we unpack "The Hard Problem" and culminate on Mark's latest challenge: Making a Mind, where he and his team have built a conscious intelligence.

00:00:00.508 The Final Chapter: Exploring the Source of Consciousness 00:06:03.237 Understanding the Underlying Mechanism and the Free Energy Principle 00:12:35.699 Mechanism: Substrate-Independent and Irrelevant to Appearance 00:24:05.372 The cortex and brainstem: the wrong place to look 00:26:57.108 The mechanism of feeling predicts conscious experience 00:34:18.887 Making a Mind: Exploring Consciousness and Mechanisms of Feeling 00:42:00.900 Richard Feynman's Last Words: "If I can't create it, I don't understand it." 00:46:47.955 The Imperative for Artificial Intelligence: Maintaining Homeostatic States 00:47:39.085 The Functioning of the Robot and its Activities 00:52:53.276 The Final Chapter: Artificial Feelings and Ethical Considerations

It is a pleasure to welcome the author of The Hidden Spring: A Journey to the Source of Consciousness, Mark Solms. In this episode, we talk about the brain's prediction system.

00:00:00.000 Introduction and Overview of the Chapter 00:03:30.388 Establishment of the Meteorology Department 00:11:59.546 The Fundamental Task: Minimizing Free Energy 00:15:43.370 Feelings: Connecting Us to Our Ancestors 00:19:36.790 Neglecting the inter-receptive and extra-receptive in cognitive science 00:22:30.002 The brain's attempt to contain environmental effects on the organism 00:31:32.675 Innate Predictions: Fear and Instinctual Behaviors 00:34:19.723 The Evolution of Responses and Predictive Model Complexification 00:42:59.118 The Brain: Ones and Zeroes, Predictions and Errors 00:54:18.834 The Brain as an Organization 00:59:57.338 Emotional Needs and Scripts

"No structure, even an artificial one, enjoys the process of entropy. It is the ultimate fate of everything, and everything resists it.' - Philip K. Dick

Homeostasis refers to the maintenance of relatively constant internal conditions in an organism. For example, we maintain a body temperature of around 98.6°F (37°C). In a cold environment, we shiver to return to this temperature. In a warm climate, we cool ourselves down to restore balance.

In our 9-part series on The Innovation Show, Mark Solms explains the relationship between homeostasis and entropy. Entropy is the natural tendency of things to lose order and fall into chaos. It's why ice melts; batteries lose charge, billiard balls stop, and hot water merges with cold. Homeostasis resists entropy. It keeps us in a limited range of ideal states, like a perfect body temperature. Our bodies need a constant energy supply to maintain homeostasis and resist entropy. Energy can be useful or useless, depending on its ability to work. As useful energy depletes, system entropy increases. This explains why our bodies eventually decline. We need to generate effort to counter entropy, like a balance.

This includes exercising to prevent muscle loss, learning new skills for job relevance, and innovating to stay competitive. Like organisms, organisations are living entities that constantly need to reinvent and regenerate energy to maintain balance. Organisations can become stagnant, with experienced managers sometimes lacking the initiative to innovate or drive change. This can lead to inefficiencies and bureaucracy, causing the organisation to become less effective over time. If you think of people as molecules of energy, they dissipate and find areas of the business where they can do the least amount possible. Bureaucracy grows like a bacterial plaque throughout the organisation. The lifeblood of the organisation clogs up and becomes less effective. Information flows become inefficient, like varicose veins. In effect, the organisation atrophies.

Injecting new energy into an organisation can revitalise it, realign its workforce, and increase efficiency. As discussed in my book "Undisruptable", this continuous revitalisation is essential for an organisation's health, especially during rapid technological change.

Resisting entropy is a fundamental function of living things. Similarly, organisations that resist change become victims of entropy, disrupting the balance of their systems and tipping the scales towards entropy. Maintaining homeostasis is not an event. It is a continual process. Maintaining success requires effort, constant renewal and permanent reinvention.

It is a pleasure to welcome the author of The Hidden Spring: A Journey to the Source of Consciousness, Mark Solms.

In this episode, we share some terms like: Markov Blankets, The Free Energy Principle, Homeostasis, Entropy and more. We also look at the neuroscience of innovation.

Time Stamps

00:00:00.076 Introduction: Exploring the Free Energy Principle 00:02:48.180 Feeling as an Equation: The Reduction of Homeostasis 00:05:09.567 Reduction of Homeostasis to an Equation by Carl Friston 00:07:40.434 The Link Between Mathematics, Physics, and Feelings: Homeostasis 00:10:06.472 Living Things Resisting the Second Law of Thermodynamics 00:12:31.153 The Imperative of Maintaining Organization and Viability 00:15:08.612 Homeostasis and the Role of Predictability 00:17:41.544 Learning from Experience and Updating Predictive Models 00:20:17.696 The Free Energy Principle and Reducing Predictive Errors 00:22:33.207 Understanding Free Energy as Wasted Informational Energy 00:24:41.590 The Fundamental Law of Psychology and Psychiatry 00:34:02.646 Self-organization in Nature: Ants and Bees 00:40:03.648 The Importance of Boundaries and the Markov Blanket 00:43:30.274 Feeling as the Driving Force of Learning

It is a pleasure to welcome the author of The Hidden Spring: A Journey to the Source of Consciousness, Mark Solms.

In this episode, we will discuss questions such as where does arousal come from anatomically and how does it arise physiologically? And the central question of today is where the seemingly magical shift from automatic reflex to volitional feeling occurs. Today, we will share some terms like synaptic transmission, reuptake, post-synaptic modulation and the role of neurotransmitters and neuromodulators, and we will also explain the role of the PAG, the periaqueductal grey.

The struggle you're in today is developing the strength you need for tomorrow. - Robert Tew In a world of abundance, we take many things for granted. Our morning coffee is one such example. A morning brew helps many of us win the battle to wake up by winning a neurochemical war. However, there is another battle that takes place using chemical warfare. The battlefield? The dense, green foliage of the coffee plantation. Align to the left Align in the middle Resize to full width Align to the right Add a link to the embedded image Add alt text Delete image No alt text provided for this image Created using AI Like any crop, coffee plants are subject to attack by pests. Many plants and trees have developed fascinating defence mechanisms to protect themselves against such attacks. (Like the stinging nettle to the human touch) When insects nibble on the foliage of coffee plants, they release defence compounds. One of the defence mechanisms of coffee plants is the production of caffeine. Caffeine acts as a natural insecticide, deterring and even poisoning certain insects that attempt to feed on the plant. The caffeine content in coffee leaves and beans is toxic to many insects, making them less attractive to pests and reducing the likelihood of severe infestations. In addition to caffeine, coffee plants release an acid called chlorogenic acid. This acid acts as a natural fungicide and insecticide for the plant. When we drink our cup of coffee, we also drink these compounds. Chlorogenic acid is a powerful antioxidant and helps with weight loss, blood sugar control, and heart disease prevention. However, while protecting coffee plants with pesticides and insecticides might seem beneficial, this prevents the release of chlorogenic acid. Without insect attacks, the plant does not undergo stress or produce beneficial acids. Hormesis is a process whereby a beneficial effect (improved health, stress tolerance, growth or longevity) results from exposure to low doses of a toxin or stressor. Hormesis has been studied extensively with ageing. Researchers found that introducing stressors like intermittent fasting, exercise, and cold shower therapy produces resilience and anti-ageing effects. For example, when an optional cold shower activates a mild fight or flight response, it increases our tolerance for the cold and can guard us against catching a cold. Just as we can build up our tolerance for poisons, we can improve our tolerance for adversity. This coffee narrative is a helpful metaphor that resonates in our lives and business. It's about the essentiality of struggle and how it moulds us, adding depth and substance to our existence. Just as the coffee plant needs the insect's bite to release its acid and liberate its flavour, we must struggle to bring out the best in ourselves. This is the paradoxical advantage of adversity. The Adversity Advantage: Nurturing Resilience In our forthcoming series, with former Executive Director of Research for the Accenture Institute for High Performance, Paul Nunes explains how high-performance companies develop a hothouse of talent. Paul tells us, "Talent hothouses are like agricultural greenhouses". A company needs to start with the right seeds to ensure early success for the vast majority. As those seedlings grow, leaders must find ways to prepare high-potential talent for inevitable challenges ahead. That preparation includes steps to increase their hardiness, so managers must regularly expose employees to unfamiliar ideas and ways of thinking." High-performance businesses create environments—often highly challenging—for employees to acquire the skills and experience needed to climb up the corporate ladder quickly. The goal is partly to create what our Accenture colleague Bob Thomas, in his book on the topic, calls "crucible" experiences. These life-changing events, whether on the job or not, hold lifetime lessons that can be mined to help transform someone into a leader." "You learn ten times more in a crisis than during normal times." - A.G. Lafley Alan George "A.G." Lafley was the leader of Procter & Gamble on two separate occasions, from 2000 to 2010 and again from 2013 to 2015, during which he served as chairman, president and CEO. Lafley built muscles that served him well in later life when he led P&G in Asia during a time of economic collapse. According to Paul Nunes' research, the high-performers orchestrate crucible moments with stretch assignments or early promotions where people learn on the job. Paul identifies how some top performers assigned unfamiliar tasks to up-and-coming managers by assuming a "popcorn stand" approach. This is when they give high-potential employees a tiny business unit to manage—for example, the local operations of a small geographic market. The goal is to provide those individuals with the whole profit-and-loss experience of running a business—leading a team, serving a customer base, negotiating contracts, etc. And the organisation gets an early look at how the employees respond to that challenge—an essential piece of data because past results are typically the best predictor of a worker's future performance. Failing towards Success: "Prediction Errors" In our current series on The Innovation Show with Mark Solms, Mark explains how the human brain learns by "prediction errors". A prediction error is the difference between what our brain expects and what actually happens. It's a mathematical term used in neuroscience to explain how our brain updates its expectations based on new experiences. This process is crucial for survival as it allows us to anticipate, plan, and react to the world around us. It's important to understand that prediction errors are not necessarily signs of failure. Quite the opposite, they can be integral to learning and growth. In the same way, high performers understand that failure shouldn't necessarily be a firing offence. They encourage employees to take calculated risks and tolerate occasional poor outcomes as long as the results don't stem from stupid mistakes—and as long as lessons have been learned. Sometimes, these companies even reward failure in pursuing learning and innovation. I leave you this week with the words of David Bowie because the stretch assignments work both ways; they help you prepare future leaders and help future leaders stay with you as they continue to grow... "If you feel safe in the area you're working in, you're not working in the right area. Always go a little further into the water than you feel you're capable of being in. Go a little out of your depth, and when you don't feel that your feet are quite touching the bottom, you're just about in the right place to do something exciting." - David Bowie. Thanks for Reading, Now, for that Coffee

In "The Hidden Spring," our guest Mark Solms takes us on the journey of Feelings. Feelings are difficult to research because they are inherently subjective, but If we exclude feelings from our account of the brain, we will never understand how it works. You tell us, to a fantastic degree, neuroscientists searching for an explanation of consciousness have ignored feelings. Mark Solms takes us on an exploration of Feelings and the work of his friend and collaborator, Jaak Panksepp.

We cover Seeking, Play and Fear.