The Innovators Studio with Phil McKinney

Big corporate innovation or startup getting off the ground, the challenges are similar. Amy Radin knows something of both. She went from direct marketing to becoming the first Chief Innovation Officer of Citibank. Now she advises startups. Her latest book, The Change Maker's Playbook, offers insight on getting your innovation from idea to scaling. In today's show, Amy defines what it means to be a change maker and how to win in the innovation game.

The Change Maker at Work

As the internet emerged, Amy recognized its future impact. Her direct marketing experience gave her insight. She went on to lead digital transformation at Citibank. She knows first-hand the hard work of corporate innovation. The nature of big companies is "predictability" and "continuity." Innovation disrupts that momentum. Amy prepared for resistance by pulling together a strong, diverse, collaborative team. She built strong partnerships. And she used her direct marketing skills. Amy put consumer insight up front: know the customer's unmet need, then meet it with technology.

[shareable cite="Amy Radin, Author The Change Maker's Playbook"]I think tough problems are more likely to be solved when you have diversity of thought, expertise, perspective, life experience.[/shareable]

Corporate Innovator versus Startup

When it comes to innovation, do corporate innovators and startups have anything in common?

Amy interviewed innovators from large and small sized companies across sectors. She found that the "how" differs, but the challenges are similar. The startup has speed, passion, and purpose. The less agile corporate entity has the advantage of resources, scale, and brand infrastructure. With each having its advantage, the real success for corporations and startups is to partner.

Defining a Change Maker

A change maker finds a solution to a market problem. With purpose and passion, the change maker drives the idea to execution and scaling. Through hurdles and successes, the change maker sees it through. In reality, rarely is it one person who does it all. The change maker is a team. One person may have the initial idea and leadership. That person brings the right team together, finding those who have the skills to fill the gaps. This team becomes the change maker.

Framework for Innovation

Amy has developed a framework for innovation. It's based on thorough research and her own experience. Through interviews with founders, investors and corporate innovators across sectors, she formed this practical approach.

The pillars of this framework are seek, seed, scale.

1. Seek
   • Once an idea takes root, focusing on target users' insights.
   • Finding answers through users' behavior.
2. Seed
   • Validating your concept through prototype.
   • Connecting user insights to your business model.
3. Scale
   • Amy calls it the "green light moment"
   • Confirm you have what's needed to scale.

Key Advice from a Change Maker

Amy's key advice for innovators and change makers is to listen. Listen to users so you can fully grasp their needs. Listen to those you need to influence. Listen for the emotional reaction. In Amy's words, "360 listening is going to help change makers be more successful."

To learn more about Amy's framework for innovation and how to be a change maker, read The Change Maker's Playbook. Find excerpts and a free download infographic on seek, seed, scale at Amy's website.

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Thanks for taking the time out of your busy schedule to listen.

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Today we delve into the future. I discuss topics in three areas: top innovations, teaching the future, and tomorrow's healthcare. What innovations will have the most impact on our future? What can we do today to prepare students for the future? How will technology help tomorrow's healthcare? I based this show on a speech I delivered recently to staff of federal policy makers. It's a future look at innovation, education, and healthcare.

Top Innovations with Future Impact

The top innovations that will transform our lives in the future are already in the works today. Artificial intelligence, light field display, and next generation storage will be life-changing. But a future look reveals issues. These issues need study now to ensure that innovations better the lives of future generations.

Artificial intelligence (AI) is one area that will dominate the future. People tend to think AI as something off in the distant future. But it's here. The social media imbedded with AI gathers data on users. AI captures behavior patterns to improve user experience and focus advertising. The impact of AI today is significant. Its future will be exponential. The power and potential of AI give rise to concerns of ethics. Now is the time to explore and define the ethical boundaries for AI.

Light field display is another innovation that will impact our future. Also known as volumetric display, light field display projects an image creating depth without the use of special glasses. It is a high resolution, full color image you can walk around. Light field display will transform the way we view content. The latest vision video, The Near Future: Ready for Anything features light field displays.

Next generation storage will be like carrying a personal cloud in your pocket. It will transform computing. Every bit of information – photographs, videos, documents, files, data – will fit in a small kind of USB key.

Educating for the Future

Are we teaching the future to students? How do we prepare students for a job that does not yet exist, using a technology that has not yet been invented, to solve a problem we don't even know exists? This presents a lot of unknowns. But one thing I do know: traditional methods of teaching are no longer enough.

Students will need skills in critical thinking, creative thinking, collaboration. Students who learn to look at any problem and derive a solution will be ready for the future. Teaching the future means encouraging natural curiosity and investigation. I believe jobs of the future will be fluid. Learning to translate ideas from one area, industry, or discipline to another will help prepare students. Teaching the future requires rethinking education. Finding ways to develop those critical skills in students will drive future success.

Tech for Tomorrow's Healthcare

Healthcare is a hot topic now. One reason is the rise in the aging population in the U.S. and many other parts of the world. Low birth rates in recent decades mean less people fueling the economy and fewer people to care for the aging. With the increasing aging population, what are the needs for tomorrow's healthcare? In a future look at healthcare, here are areas to innovate and bring value to people's lives.

There are not enough assisted living facilities in the United States to fill the need. That fact and my own experience with my grandmother have caused me to think about "aging in place." Can we help aging people through tech and innovation live independent and fulfilling lives in their own homes? Technologies that allow remote monitoring need to be intelligent, not just collecting data. The tech needs to be unobtrusive. It should maintain privacy and independence, but still alert caregivers or family if something isn't right. This is a huge, open area to innovate tomorrow's healthcare.

Another area open for innovation is communication for the aging. Obstacles like limited hearing, lack of tech, or knowing how to use it can be big barriers. Isolation is a real problem for many aging people. Having a better, simpler, more interactive way to communicate could add value to the lives of the aging.

Remote medical monitoring is another area to innovate. This tech could track a patient's condition after surgery. But hand in hand with that, the laws need to keep pace with the technology. Having tech to adjust a patient's medicine remotely is worthless if the law doesn't allow it.

I hope this future look at what will impact us in innovation, education, and healthcare will spark deeper thoughts. These are areas for innovators and policy makers to work out the challenges of tomorrow today.

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Thanks for taking the time out of your busy schedule to listen. If you have comments, drop me a line. I've been doing this show since 2005 to pay back my early mentor by paying it forward. Would you help me pay it forward?

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This show is produced by The Innovators Network

[shareable cite="Antoine de Saint Exupéry"]The time for action is now. It's never too late to do something.[/shareable]

When the enemy is in close pursuit, there's not a lot of time to decide what's next. Fighter pilots are trained to make decisions fast. It's a decision that could mean life or death. And fast is not enough. Fighter pilots must make fast and accurate decisions. Decision-making is critical in innovation too. Freezing, making the wrong move, or having a slow process for decision-making can mean endgame. A competitor will swoop in and take over, leaving you in the dust. What works for fighter pilots may work for you. It's called the OODA Loop.

Speed up the Pace

Continuing the series on innovation leadership skill sets, this show addresses a question from a number of listeners. The question centers on decision-making. You've been trying to stand up an innovation effort in your organization. But, the decision process through the organization is slow. How can you speed up decision-making?

What has worked for me over the years is the OODA Loop. It's a military framework for decision-making. A military leader developed the OODA Loop to train pilots to make swift, critical decisions. The OODA Loop helps pilots in crisis situations. It trains them to avoid rote thinking and solve immediate problems creatively. This decision-making framework translates well beyond the military. It has had wide use across business, industry, and organizations.

What it Means

OODA stands for Observe, Orient, Decide, Act. These are the steps to take to making fast and accurate decisions. The Loop is the repeat of the steps until you arrive at the solution. The OODA loop guides you to look and evaluate a variety of things, test them, and act on them. Based on the result, you go back through the OODA loop again until you can get to a solution. Each time you go through the loop, you add what you learned from the last loop. If your first run through the OODA Loop doesn't resolve the issue, on the next Loop, you know what to change.

The Steps

Observe

• Collect data – this could be hard data, customer surveys and feedback, sales numbers, competitor's sales info
• Gather information from observing – customers, competitors
• Rapidly gather as much information as possible accurately.
• This will never be complete, but don't let that delay you.

Orient

• Identify the barriers to decision-making
• Recognize biases – "we've always done it this way"
• Traditions -- competitors will predict your move based on them
• Beware of confirmation bias – leaning on what's worked in the past
• Sift through the overflow of information to pull out essential elements
• Synthesize information gathered in unique and different ways

Decide

• Use the information observed and orientated to make informed decision
• Choose the most relevant option
• Avoid first conclusion bias – don't make the same decision over and over again if the outcome was negative

Act

• Act quickly on the rational decision
• Test it, experiment
• If it doesn't work, go back through the OODA Loop
• Use the results to feed into the OODA Loop

Keep in mind that you need to cycle through the OODA Loop very fast. Don't stay in any one step of the Loop for any length of time. The quick- paced, continuous loop improves decision-making. With each cycle, it's a feedback mechanism.

OODA Loop Advantages

I've used the OODA Loop with many teams and projects. For a number of reasons, I like using the OODA Loop.

1. It unfreezes teams
   • In nearly every innovation project, there's a point where things freeze.
   • The OODA Loop helps teams break free of that state.
   • It forces teams to do something continuously.
2. Speed
   • It is a fast and accurate way to decision-making.
   • Good teams will cycle through the OODA Loop to action in minutes.
3. Gets teams comfortable with uncertainty
   • You will never have perfect data.
   • Teams learn to accept that and move on with the data at hand.
4. Helps teams to create the unpredictable
   • The fast pace and unique synthesis of data creates an unpredictable output.
   • This will baffle the competition.
5. Based on testing
   • As you cycle through the OODA Loop, you can test the action
   • The testing result can be fed back into the Loop

Using a framework such as the OODA Loop, you can reach fast and accurate decisions. What's worked for fighter pilots in intense dogfights can help you to keep ahead of your competitors and win in the innovation game.

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Thanks for taking time out of your busy schedule to listen to the show. If you have any questions or comments, drop me a note.

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This show is produced by The Innovators Network.

Every year Chicago highlights the art of invention and innovation. I'm honored to welcome back Tom Kuczmarski to the show. Tom talks about exciting things going on in the realm of Chicago innovation and student invention. If you've had trouble buttering your toast, today's show might have the solution. At the Chicago Student Invention Convention, one student invention solves a simple breakfast hassle. Great and small, Chicago innovation is making a difference and Tom is helping to lead it.

Chicago's Invention and Innovation Evangelist

Tom's enthusiasm for innovation is catching. His career is multifaceted. Senior Lecturer at Northwestern University, author, and President of Kuczmarski Innovation. Tom is dedicated to bringing the art of invention and innovation to life in greater Chicago. Co-founder of the Chicago Innovation Awards, he has cheered on Chicago innovation for seventeen years. Recently, offshoots of the Chicago Innovation Awards have emerged. The Chicago Student Invention Convention and the Woman's Mentoring Co-Op have been huge successes.

Inspiring Young Minds through Student Invention

The Student Invention Convention challenges young students in the greater Chicago area to invent. Students work with teachers in a ten-week program to create inventions that solve a range of problems. It thrills Tom to see these kids engaged in the art of invention and innovation. The exposure to invention and innovation at an early age unlocks their future potential.

Fostering Woman Entrepreneurship and Innovation

The Woman's Mentoring Co-Op has nearly doubled every year since its inception. This program involves successful women mentoring women innovators who want to grow their business. It's a way for women to help each other with the unique challenges for women in business and innovation. Tom's proud of the strength and power created by this new community of Chicago innovation.

Unlikely Partners

Tom recalls a conversation several years ago with the CEO of a major hotel chain. Tom broached the topic of Airbnb as a potential competitor. The CEO dismissed his concern. In the last five years, Tom's seen a major shift in the thinking of major corporations. Rather than keeping innovation in-house, corporations are opening up. Major corporations are seeing the need and benefit of partnering with startups. That's where the Chicago Corporate Start-Up Matchmaking program comes into play. It's similar to the CableLabs Fiterator program, but on a broader spectrum. The Matchmaking program connects corporations with start-ups whose Chicago innovation can bring value.

What Recognizing Others Reaps

Tom likes to recognize others in their innovation and invention. There is power in creating an environment that values people at all levels. His latest book is co-authored with Susan Smith Kuczmarski. Lifting People Up: The Power of Recognition focuses on encouraging people. He sees this as pivotal for leadership now and the future. In fact, he feels peopleship should replace leadership. Leaders should motivate and value the people within the organization. This is especially critical in innovation, which is a team effort.

[shareable cite="Tom Kuczmarski, Co-author Lifting People Up: The Power of Recognition"]Peopleship needs to be the word now that captures what leadership is all about because our focus has to be on the people within an organization.[/shareable]

Just as Tom likes to award and recognize others, the same returns to him. Tom and Susan have already garnered awards since their book's May release. They received both the Living Now Awards Silver medal and the Carl Sandburg Award.

Innovation Practices with Big Impact

As innovation consultant, Tom highlights two best practices.

1. Understand and address consumer pain points.
   • When a company solves a consumer pain point, it is on the right track.
   • Example: Abbott's innovations to manage diabetes.
2. Have a cross functional team.
   • The more diverse the better with different perspectives and experience.

Tom has done so much for promoting and encouraging Chicago innovation. The Chicago Innovation Awards recognize top innovators. He is opening up new worlds for students introducing them to the art of invention and innovation. Through his efforts and others, Chicago's women innovators are building a strong community for success.

Interested in tracking what Tom is doing? Visit Kuczmarski Innovation.

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Anyone who wants to be highly creative, be an innovator, and generate killer ideas needs above all else one thing. You need your brain. That's why it's of primary importance that you take care of your brain health. Your brain, like any muscle can be exercised and strengthened. In today's show, we talk about how you can optimize your brain health for innovation and creativity.

Good News for Your Brain

Reading the Chicago Tribune, I came across an interesting article by Leslie Barker. The article reveals research findings from the Center for Brain Health at the University of Texas. At the forefront of the research is Sandra Bond Chapman, founder of the Center for Brain Health. The research indicates that we can strengthen our brain and improve our brain health. If you're thinking Sudoku, think again. And while I do practice some of these tips for brain health, there is room for improvement. Since I plan to be in the innovation game for life, brain health is essential. So, I'll be working on these. I hope you'll join me.

Steps to Brain Health

What's good for your body is also good for your brain. Want to increase your brain bandwidth to maximize your innovation and creativity output? Do you fear the potential diseases of Dementia and Alzheimer's? Maybe someone in your family has gone through one of these cognitive diseases. Don't sit back and give up because the disease is in the genes. There's hope to increase your brain's potential and minimize decline.

Physical Exercise

First, getting physical exercise increases your brain health. The higher your fitness level, the better your brain wiring. Exercise can increase the number of pathways through your brain and widen pathways. This can only increase your ability for innovation and creativity. Physical fitness may also slow cognitive decline. Conversely, if you let your body get out of shape, your brain will follow. To slow or prevent the development of Dementia or Alzheimer's, stay active. The study recommends 30 minutes most days. I'll admit, this doesn't come easy for me. While my wife is great at keeping an exercise regimen, this is something I have to get better at. Set the goal and make exercise a habit for your brain health.

Five by Five

The second step for brain health is to take five -minute breaks five times a day. It's what we call five by five. Breaks can mean getting up from your desk and taking a walk outside or even staying at your desk, but unplugging from work. In the office, I sometimes sit back in my chair at my cubicle, close my eyes, and take a short break. As CEO, I do this in full view of my team as we are all in cubicles. In this way, I let them know it's ok to take a brain break. If you're a leader, I encourage you to model this with your team. Those of us in the innovation game put our brain under a lot of pressure and stress. By doing five by five brain breaks, the benefits are all around. Brain health improves innovation and creativity. Remember five by five.

Quit Multitasking: Focus

The third step to brain health is to stop multitasking. This one goes hand in hand with the "F" in the innovation framework FIRE. That is focus. If you are doing multiple tasks at once, the quality of your work declines and the potential for mistakes increases. The time it takes to do these tasks increases. By focusing on a single task, your ideas will have greater depth and quality. Even better, you are exercising your brain when you focus on one thing at a time. In the office, when I need deep focus, I put my earbuds in and listen to instrumental music. No lyrics and low volume. This helps to minimize the background office noise and keep me focused on the one task at hand.

Eat More Fruits and Veggies

For brain health, increase your intake of fruits and vegetables. If my wife were listening to this podcast, she would quote this back to me. Your brain needs healthy eating. Eat whole berries, fresh vegetables like green leafy vegetables, healthy fats like olive oil, nuts, and fish. I'm getting better at this. Eating more fish. Snacking on trail mix. Trying to eliminate the sugary drinks. As I was preparing for my TedX Boulder talk, I noticed I needed more fuel. I've put more effort into this talk than any talk I've ever done in my whole career. The mental energy has made me consume more. But I didn't crave the sugary stuff. I craved real fuel, healthy food. Feed your brain the good stuff.

Practice Innovative Thinking

Innovative thinking actually improves your brain health. Thinking about things differently and in new ways increases the brain's strength. This helps you to maintain mental independence as you age. It's also what we do in the innovation game. Innovation and creativity are good for brain health. Just in the day to day, some ways to practice innovative thinking are coming up with new words to thank someone. Or use a different structure for your emails. Change it up. Find creative ways to practice innovative thinking daily.

Put the Tech to Rest

As laughable as it may seem coming from me, put the tech away to give your brain a rest. While technology may stimulate the brain, it may not always do so in a beneficial way. So, give your brain a respite. In my own experience, I don't seem to retain as much information reading from a screen versus paper copy. Research shows that reading things digitally, the brain tends to click into skimming mode. For depth, retention, and the thinking process, shut off the technology. If there's a topic or book I want to think deeply on, I'll buy the book. Even consider removing technology from meetings. It may result in shorter more productive meetings. Give your brain a break from the digital.

Don't Doubt Your Brain

If relatives have suffered from Alzheimer's or Dementia, don't give in to fears that it's on the horizon for you. Believe that your brain will be strong and that you can strengthen it. Through exercise and eating well, exercising your creative muscle and keeping your brain sharp, you can push back symptoms.

If you're in the innovation and creativity game, you are doing amazing things. What's helping you to do those amazing things is your brain. It's your most valuable asset. So, I hope these tips will help you to protect, maintain, and improve your most valuable asset, your brain.

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Thank you for listening to the show. Killer Innovations exists to pay back my early mentor, Bob Davis, by paying it forward. If you like the show, please do me a favor and pay it forward. Give us a rating wherever you get your podcast and tell others about the show.

This episode of Killer Innovations is produced by The Innovators Network.

Growing up with an inventor dad, Jarl Jensen knew innovation and ideas were in his future. As a kid, his dad would play the "Invention Game" with him. His dad would present an object and together they would come up with different ideas for its use. In his teens, Jarl was already on the road to success writing a medical patent. Now Jarl has several patents in medical innovations. He was also front and center in Euro-Med, Inc., a company launched in 1991 and recently selling at a record high multiple. But Jarl sees the economy as an area void of innovation. It is a passionate concern of his. He shares his unique perspective on innovating the economy.

Contracting Economy

Currently, Jarl is working on further patents in advanced burn care as well as two startups. But his thoughts linger on the economy. He is the author of Optimizing America. It's a parable of sorts which explores what could be if economic change took place. What is Jarl concerned about? Over the last 100 years the economy has operated in much the same way. In the beginning, opportunities for economic expansion were wide open. But over the years, what defines the economy has narrowed. In Jarl's view, the economy is on a path to contraction rather than expansion. It's an economy based on debt with banks holding the controls. The catch to innovating the economy is that the shareholders in this case are the banks. And what is in the best interest of the banks may not be in the best interest of people.

[shareable cite="Jarl Jensen, author, Optimizing America"]…if you took a bunch of innovators from any other industry and put them in charge of currency and our money, very quickly you come up with some very different ideas of how to run the economy and how to use the money for the benefit of everyone…[/shareable]

Innovation Antibodies and the Economy

In Jarl's view, who are the innovation antibodies? Commercial banks hinder innovation of the economy. He fears the day is coming when more jobs will go away than will be created. Like the proverbial frog in boiling water, the economy has evolved and we are so used to it, we don't recognize the problem. Are there changes, small or large, that could achieve a more balanced, less debt-ridden economy? Is there a broader purpose to serve? Are there better ways to grow the economy than means that hinge on loans and debt? Do banks have too much control over technology and innovation because they control the outflow of money to support innovation? These are thoughts for innovators and leaders to contemplate.

If you'd like to track what Jarl Jensen is doing, visit his blog Optimizing America. You may also find Jarl's books at Amazon.

We are getting ready for CES 2019. If you'll be in Las Vegas for CES, stop by the Mobile Studio for a tour. If you know someone who will be at CES and would be a great guest for the show, contact me.

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September is National Peripheral Artery Disease Awareness month. In view of this, today's show is an edited re-broadcast of two shows from November 2017. Kym McNicholas and I interview Ra Medical founder, Dean Irwin. Dean shares his unusual path to medical innovation with some key lessons for innovators.

From TV Tubes to Thermonuclear Fusion

Dean started his journey of lifelong learning and discovery as a kid. Tinkering with old television sets led to working in a television repair shop as an early teen. He was self-taught, reading about electronics and buying test equipment with paper route money. Innate curiosity and boldness brought him to the door of Universal Voltronics at 16. That cold call opened the door to designing circuits. People came alongside. They taught Dean the corporate ropes and helped him develop his technical skills. It was here he had a chance to work with an M.I.T. group on the Alcator program. This introduction to thermonuclear fusion opened a new world for Dean.

At 17, Dean moved from the east coast to California and joined General Atomics. The physicists gave him exposure to different areas and helped him determine his strength in Applied Physics. With experience gained at General Atomics, Dean launched his first startup. He built custom designed equipment for General Atomics. He was 21. After a good run of six years, his company went bankrupt. Going through the bankruptcy was a learning experience. As Dean says, "You actually build up a tool chest to help you navigate." It gives you the "hindsight" to help "predict some of these issues before they arise."

Charting a New Path

The bankruptcy didn't stop him. He teamed up with another startup. This was the beginning of Dean's foray into medical innovation. Believe it or not, thermonuclear fusion was the groundwork for the medical innovation he spearheads today. According to Dean, the path was straight. And it was a clear link between thermonuclear fusion and designing a treatment for atherosclerotic disease. In fact, the transition from repairing televisions to working in thermonuclear fusion was no great leap. Dean has an innate curiosity. His transfer of knowledge and skills in one field to a seemingly unrelated field boils down to one question. Why not? The principles are the same with different constraints.

[shareable cite="Dean Irwin, Ra Medical CEO"]There are so many similarities in physics and in nature that you'll see the same problems solved perhaps many different ways, but with a very common thread. And that common thread can tie it all together. [/shareable]

Pushback? Persevere.

The Ra Medical excimer laser has proven itself in over 500 cases. It's used in six countries and has gained FDA approval. It's ease of use while cutting through plaque sets this product apart. Add to this the positive patient outcome and cost-efficiency.

Dean connected similarities from nuclear fusion to medical innovation. This has produced a design that is definitively outside of the box. Others said it would not work. Engineers, scientists and physicians were skeptical. Unfazed by naysayers, Dean persevered. He didn't let innovation antibodies distract him. He kept focus on the medical innovation that will impact people's lives. Breaking from the mold, he's developed a product that is truly innovative.

If you'd like to learn the latest from Ra Medical, check out Linkedin or the Ra Medical Systems website.

Are you battling innovation antibodies? Need some help with your innovation. Connect to a community of innovators who support each other through the innovation process? Join The Innovators Community.

A recent event brought back to mind a blog I posted in January 2017 on the innovation economy. A news agency reporting on a candidate running for governor referenced that blog post. The candidate's platform is the innovation economy. It seems to be gaining traction this political season. There is a drive for economic rebirth of urban areas or to reestablish the growth engine for states. This has turned eyes on the innovation economy.

Some term it the "creative economy." Gary Hamel calls it the "new economy." I refer to it as the "innovation economy." But what exactly is it? The ability of people to create, innovate, and develop ideas, products, and services that generate value. The value people place above the bill of materials is the innovation value. Done well that value elicits a margin premium, the growth engine of an innovation economy.

Turning the Downturn Around

Like the steel industry, which tanked in the 70s, a number of states in the U.S. have been facing economic downturn. Their economies relied on industries that have slowed, shrunk or halted. Politicians are seeking economic growth engines to re-energize their state and local economies. Places like Detroit are establishing programs, activities, and systems to attract creative people to relocate. They are seeking creative minds who will jump start the innovation economy with their ideas, products, and services.

There are success stories - Boulder, CO; Portland, OR; Austin, TX and Boston's Route 128. These places built an innovation economy that flourishes, creating jobs and economic growth. But it's not a quick fix. Establishing a thriving innovation economy takes long-term commitment.

Humble Beginnings to World Stage

From its beginning in a garage in Palo Alto, CA, HP became the match that started the flame. Silicon Valley became a thriving innovation economy. This sparked highly creative, rapid growth and expansion in the tech industry. Today, I can't go anywhere without seeing the effects of that, even in name. University of Illinois Urbana-Champaign has become known as the "Silicon Prairie."

The innovation economy is changing the world. Disruptions have spread across a variety of industries. Crowd sharing technologies have allowed unexpected disruption. Airbnb, the largest provider of overnight accommodation, does not own a hotel. Uber, the largest provider of passenger transport, does not own a fleet of vehicles. Brick and mortar retailers are closing as online retailers take over. The impact of the innovation economy is undeniable. Don't think any job is above that impact. One company uses chatbots and artificial agents to process and negotiate traffic tickets in court. X-rays are sent overseas for diagnostics. Like it or not, the innovation economy is here to stay. Don't let your sphere of influence sink. Get started building an innovation economy where you are.

Building the Innovation Economy in Your Sphere

So, what's a politician or anyone who cares about their livelihood, their business, the place they call home to do? Start by asking the questions:

• What are the rules by which an industry operates?
• What would totally disrupt that industry?
• What would happen if it turned on its head and completely changed?
• What is that impact? What is its unintended consequence? Or its intended consequences?

Perhaps this has already happened in your area and you are left to deal with the unintended consequences. Possibly an industry has dissolved and joblessness is an issue. Then you need to counter that by building a new, innovation economy.

Whether you foresee what may happen or are dealing with the aftermath, ask:

• What can I do to encourage a creative or innovation economy within my local area?

A good place to begin building the innovation economy is the education system. Shift the teaching model. Move toward emphasis on STEAM: Science, Technology, Engineering, Arts, Math. Students need to be prepared to compete in a new economy. Students need to know how to use technologies that have not yet been invented to solve problems that don't exist today. To do this, educators must develop their students' critical thinking skills. They must help students find and exercise their creativity. The classroom should be the incubator for teamwork, collaboration, leadership, and ideation.

Another segment of the population affected by disruption is the aging population. This is something communities and politicians should be aware of. When industries decline, older workers face a dilemma: be jobless, retrain, or retire. Left unaddressed, such concerns will put strain on the economy in areas such as social services. Make the investment now. Develop programs to prepare people for the innovation economy. The innovation economy can also bring amazing means to enrich the lives of the aging. Be attuned to the resources on the horizon that can make life better for the citizens in your community.

What's Stopping You?

Massachusetts is experiencing phenomenal growth through its innovation economy. It is a leader in economic output from the innovation sector. This takes years to cultivate. Having impact in the innovation economy comes from having prepared workers. This means education that prepares students to work in the innovation economy. In addition, it requires developing the means to attract creative talent.

The biggest barrier to an innovation economy is lack of ideas. That goes hand in hand with creativity. Creativity has been stifled in our education system. Yet, today the number one skill CEOs are looking for is creativity. Nurture creativity. And with that comes ideas. Allow those ideas to develop and translate into innovations. Innovation is ideas made real.

The innovation economy impacts us all. It is for us all. Anyone can take advantage of the innovation economy. Anyone can make their ideas real, make their innovations count, and contribute to economic growth.

I'd love to get your feedback on this show. Post your comments at Killer Innovations or wherever you get this podcast.

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In a recent show, I talked about setting innovation objectives. Listeners wrote in asking for details on how to include innovation in the objective setting process. So, in this week's show I share the steps to setting innovation objectives. Done well, innovation objectives can result in exponential success for your organization.

The purpose for setting objectives is to gain alignment in the organization. Innovation success depends on getting everyone in the boat and rowing in the same direction. When you incorporate innovation objectives into individual, team, and organizational objectives, you gain alignment. This will be evident around the innovation focus, funnel, and strategy.

Missteps

Setting innovation objectives is hard work. Over the years, my approach has changed. In my days leading teams at HP, objectives did not provide clear guidance leaving engineers to figure things out. When objectives are vague, people wonder whether what they're doing aligns with the organization.

Other issues arise when objectives are…

• Too task-oriented leaving no room for creativity.
• Too rigid, locked in concrete until annual performance reviews.
• Too broad or include too many things creating a fog.
• Measurable, hence tied to performance review and annual budget cycles.

Getting it Right

To help with setting innovation objectives, I've come to believe in OKRs (Objectives and Key Results). Andy Grove, co-founder of Intel, defined this objective setting process. Many major companies are using OKRs today. I use a simplified version of OKRs. Think of the objective as the vision or goal line. It's where you want to go. The key results are the measurable steps to get you there. When the objectives are clear and the key results align, the outcome is inspiring. People see a successful and meaningful impact in their efforts.

To begin, I set the objective with two to five key results. It can be set for one year to five years. Key results are laid out in a six-month rolling process. Every six months, a key result is met and the next key result begins.

Alignment and autonomy are the overarching goals. Get the entire organization aligned. Give employees the goal and allow them to use their creativity to achieve it. Provide the direction and measurement of success. Leave the 'how' to them.

Advice on Setting Objectives

• Take time to set objectives.
  • I spend hundreds of hours, write and rewrite, and get feedback from others.
• Make sure there is clarity.
  • Wording is important.
  • Clarity is key to getting alignment.
• Be transparent.
  • Share objectives with others.
• Avoid too many objectives.
  • Three to five objectives with two to five key results for each.

• Objectives should be adaptable.
  • Change the objective based on learning.
• Objectives should be specific.

Good Innovation Objectives

A basic element of good innovation objectives is a framework. I use the FIRE framework. FIRE stands for Focus, Ideation, Ranking, Execution. I've done many blogs and shows over the past fourteen years on FIRE. It's also laid out in my book, Beyond the Obvious.

Below I describe the FIRE framework and give examples of using it to develop innovation objectives.

1. Focus.
   • Focusing the search for areas of innovation.
   • Three focus areas are "who", "what", "how".
     • Example of "who":
       • What could be the focus over the next six months to learn more about who your customer is?
     • Example of "what":
       • What focus areas should you set for your products or services.
     • Example of "how":
       • Focus on how you operate, how you innovate your team/organization to be better than the competition.
   • The objective is to expand your search for areas of innovation.
   • The Key Result would be the steps that need to be taken to do the search.
   • Another objective could be relooking at old ideas.
2. Ideation.
   • This is the generating of ideas. "The fuel for innovation."
   • Hundreds of ways to generate ideas (Thinkertoys, brainstorming)
   • Determine which tools work for your organization.
   • An objective could be "experiment with different approaches to creating ideas."
   • Another objective could be "deploy an Idea Management System" (IMS).
3. Ranking.
   • Fills your innovation funnel.
   • Score ideas and work on highest scored ideas first.
   • Examples of objectives around ranking:
     • Testing the scoring method
     • Determine if ranking approach draws out truly high-quality ideas.
     • Ensure the funnel is full of high quality ideas.
     • Re-score ideas in the IMS that are not in the funnel.
     • Search for external high-quality ideas.
4. Execution.
   • Examples of objectives:
     • How many ideas are there in each phase of execution?
       • How many in market validation, customer validation, prototype, commercial launch?
     • How many proof of concepts working on or have shown.
     • Measure the end result of innovations that shipped. What was the impact?
     • Track your kill rate. How many ideas in each phase don't make it to the next phase?

Things to Keep in Mind

• I keep a rolling 12 months of objectives and key results, broken up into 6-month increments. Work on and complete key results in first six months, but have second set ready for the next six months.
• Look back and assess which objectives and key results worked and which ones didn't. Adjust accordingly.
• Test objectives after a while to see if they contribute to the long-term success and impact of the overall objective.
• Share and learn from others. Find out how others set objectives. A great way to share and learn from other innovators is The Innovators Community, our online Slack community. Join to share and get coaching and advice from the community of innovators.

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Five Minutes to New Ideas is now available as a standalone show. It's designed for the creative mind looking for that next great idea. Listen on Apple iTunes, Spotify or at PhilMckinney.com.

A key mission for an innovation leader is to motivate, support, and help your teams learn good innovation habits. This should occur daily with each interaction. Modeling leadership habits and exhibiting leadership skills inspires employees to become leaders. In today's show, I share six questions I ask my employees. These questions encourage good habits and sharpen innovation leadership skills within my organization.

I weave the questions into one on one meetings with my direct staff and skip levels (those who report to my direct staff). The questions reflect an innovation culture that is essential to success. Another element of refining the innovation culture is organizational objectives. This year, my organization is redefining objectives. Using the objectives and key results framework (OKRs), focus is on the long-range vision. This promotes thinking long term rather than on annual goals that tie to budget, pay raises, and bonuses. To build a high impact innovation organization, you need to instill good leadership skills and habits in line with long-range goals. So, here are the six questions that can help move your organization in that direction.

Six Questions to Ask Your Employees

1. What went well since we last met?

Once you ask the question, sit back and listen. Give employees the opportunity to relate their successes and share….

• What their priorities were.
• Where they made good progress.
• Who played a key role in that success.
• Who helped, even outside the team/department.
• What's next.

Offer sincere support and appreciation. Stay in the loop on where they're heading. Provide coaching and mentoring. Reinforce that innovation is a team sport. Help them get into the habit of giving credit to others who've contributed to the team's success. Giving credit to others is vital to good innovation leadership skills.

2. What went wrong and what did you learn from it?

We will always have things that go wrong, mistakes that happen. Nothing is completely in our control. The key is to put it on the table. Don't hide it when things go off course. Encourage employees to share what went wrong and what they've learned.

The benefits of doing this…

• Others in the organization can learn how to avoid the same or similar pitfalls.
• They're in good company. Good innovation teams tend to have an 80 to 90% failure rate.
• It's liberating for the organization if leaders are willing to share their mistakes or failures.
• It shows support for experimentation.

3. What did you find that was broken or could be improved? What did you do to fix or improve it?

This gives people permission to go fix things. IF YOU SEE IT, FIX IT.

What employees learn from this:

• We are all in this together.
• Don't find something wrong, then point to someone else to fix it.
• Silos and turf should not exist. If you can fix it, don't worry that it's not in your department.

4. What did you do to help create a motivating environment? Who did you catch doing something right?

When someone pitches an innovation idea, what is the reaction? In our organization, we give out gift cards to recognize employees' efforts and good innovation habits.

To create a motivating environment…

• Be an active listener.
• Be approachable.
• Recognize your people.
• Give encouragement.

Good leaders find people who are doing right. Then they reinforce it by acknowledging it publicly. This shows others what habits and actions to strive for in their team and organization.

5. What roadblocks are you facing that I could help clear for you and your team?

As a leader, your job is to be the filter, sifting out things that hinder team productivity. Roadblocks can be anything from issues with purchasing to a cumbersome process for expense reporting. Nothing is too insignificant. If there is an admin issue they've tried to resolve, but can't, you as the leader should step in. Leaders should remove the barriers so that their teams can stay focused on what's important. Don't let sand get in the gears and slow things down. The pace of innovations is accelerating. We have to find ways to drive productivity and efficiency.

6. What else would you like to talk about?

This open-ended question allows your employees to share something that might be weighing on their mind. It gives you the opportunity to see where you could make a difference. One of my organization's core values is "candor with respect." This gives employees confidence to be honest and transparent free from concern about negative reactions. Protect confidentiality so employees feel they can open up. I've had employees present challenges in their personal lives. In some cases, I've been able to help. The results have improved employee morale and generated positive change for the organization.

I hope these questions will help you inspire innovation leadership skills in your sphere of influence.

Want to share your experiences and learn from others in the innovation world? Join The Innovators Community.

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Five Minutes to New Ideas is now available as a standalone show. It's designed for the creative mind looking for that next great idea. Listen on Apple iTunes, Spotify or at PhilMckinney.com.