Tag Archives: innovation

Pathways Beyond Logic

Logic and reason alone can no longer guide us toward innovation or success.  They will not be enough to get us to the level of creativity and reinvention we need to address the challenges of the new economy.  We need to deal with the deeper part of human nature: intuition and instinct.  Science, evidence in the real world, and experience tell us that our intuition and our instincts, although sometimes difficult to completely understand, very often point us in the right direction.  Sometimes they can even save our lives.  To positively influence the deeper part of ourselves, we need to appeal to the heart and engage the guts. We need to honor the sometimes-cryptic clues sent up from many accomplished people in science, industry, and the military.  As business leaders we can take steps to create a corporate atmosphere that speaks to the hearts and instincts as well as the minds of our employees.  Doing so puts a great deal of agility and creative power to work for our companies.  One powerful way we can harness the creative power of our teams is by introducing rituals at key moments in business ideation and development.  Management and leadership—which increasingly require dealing with human motivation, behavioral change, and, now more than ever, sustainable innovation—are much more about the intangible part of business than about what’s tangible, much more about the unconscious part of human interactions that about the conscious part.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

You Already Have All the Resources You Need to Innovate

Play opens us up to the possibility that we don’t need more of anything—time, money, knowledge, and so on—in order to produce more.  It is a radical idea, especially in business, where we often hear the argument the budgets are limited and therefore the ability to innovate is limited.  How can you get the same result with half of the resources?  How is that possible?  It’s possible because human motivation is not linear; the way one person gets motivated is a complex function of many intertwined factors, which do not follow a linear continuum, but which can be greatly influenced by play.  When we tap into the part of people the responds to play and inspiration, we unleash possibilities and huge potential for new sources of motivation that we could not have predicated or accessed otherwise.  Thus when people are engaged in play, truly and deeply engaged, they lose track of time, they stop thinking about whether their paycheck is bigger today than it was yesterday, they form close and fruitful bonds with their playmates, they withstand discomfort and inconvenience, and more often than you might imagine, they create magic.  Play moves people into an optimistic frame of mind, a place where they are more adaptable to change and more likely to improvise, and where they begin to dance in the groove of life.  In that joyous groove, success and innovation become far more likely outcomes than they ever could be in an atmosphere of grinding unhappiness and perceived lack.

Take, for instance, a story of how dice games were invented, according to the ancient Greek historian Herodotus.  In pre-Roman times, 2,500 year ago, the kingdom of Libya was suffering a famine that left it only able to feed half of its citizens.  The Libyan king invented a game—sheep knuckle dice—and established a policy that every other day, every person in the kingdom, would do nothing but play sheep knuckle dice.  They would not work, they would not just hang out, and they would not run errands for their grandma.  And they would not eat.  Such was the level of immersion the sheep knuckle dice provided that the people managed to survive an eighteen-year famine.

What does this tale reveal to us? It shows that the impact of play reaches far beyond the realm of reason.  It also tells us that the power of play is such that it can provide an effective distraction even from something as elemental as hunger.  Play is a strong catalyst for changing behavior, helping people shift perspective and refocus their energy to overcome hardship or challenging situations without necessarily increasing material resources or the number of team members.

Excerpted from The Intuitive Compass, Jossey-Bass, 2011.

Jack Ma, Alibaba’s Founder and Serial Disrupter

Jack Ma, Founder, AlibabaBefore proving to the world his ability to be a serial disrupter, Jack Ma first started as an English teacher. In his own words: “innovations in many industries have been triggered by outsiders”.  Why? Simply because in most organizations, intellectual inertia prevents teams from being truly innovative. Addressing the issue, Mr Ma went even further, thinking holistically, and creating China’s own Amazon, Paypal, Groupon, DropBox, twitter, spotify & Hulu.

The Unlikely Ascent of Jack Ma, Alibaba’s Founder

What Kind of Intelligence Do You Need to Succeed Today?

In my upcoming book, The Intuitive Compass (Jossey, Bass Oct 2011), I write extensively about the need for business leaders to use what I call Intuitive Intelligence to tap into their ability to effectively manage their employees and generate innovative business strategies and solutions in a complex global marketplace. Before I give you a preview of what Intuitive Intelligence is, it is worthwhile to look at how culture, society, and science have tried to understand and measure intelligence. Read More

Les Echos: Les neurosciences au service de l’entreprise

A short article in Les Echos:

Les-Echos-13-08-2009.gif

Translated:

Another way to manage and lead
Neurosciences in the service of business

Francis Cholle author of L’Intelligence Intuitive recommends to executives to combine their analytical mind with their intuitive aptitudes to gain further consumer insight and improve business performance.

From our correspondent in the Sillicon Valley, Laetitia Mailhes

For beauty and fashion executives time has come to reconsider every aspect of business. “The economy is changing consumers’ behaviors, independently from the evolution of incomes, explains NY Fashion Institute of Technology Professor Stephan Kanlian. To open their wallet consumers today want more than brand prestige. They demand more and more added value and a greater match between products they buy and their own values.” But the business community is not well prepared to adapt to such a radical change.

“Obsession for financial return has led leaders to often forget they share a common humanity with consumers,” says Francis Cholle, author of L’Intelligence Intuitive, innovation consultant for large corporations and advisor to their C-Level executives. A graduate of the best European business school, HEC (Ecoles des Hautes Commerciales) Francis Cholle insists that sustainable value creation requires the necessary synergy between analysis and ROI on the one hand and play and instinct, on the other (see graph below of The Intuitive Compass™).

intuitivecompass.gif

The role of intuitive intelligence

“Neuroscience showed in 2005 that parts of our brain traditionally associated with our instinct are involved in our most sophisticated decisions” says our expert in reference to MIT Picower Institute for Learning and Memory research on our reptilian brain aka instinctual brain, published in the  scientific journal Nature. “It is very noticeable in consumer behaviors. For this exact reason if a company wants to understand its market and meet its expectations, it is necessary that they  understand how intuition works and integrate an intuitive process in their business approach,” adds Francis Cholle. His message is well received. “My daily conversations with Francis Cholle greatly deepen my thinking at a particularly critical time for our company” says Ralph Lauren Fragrances and Beauty President Guillaume de Lesquen, based in New York to orchestrate the brand development on the world stage.

Long before the economic recession Francis Cholle started to advocate the role of intuitive aptitudes and their impact on value creation. Biotherm for Men global marketing director, Charles Haddad is quite satisfied that he could attend one of Francis Cholle’s seminar and acquire tools that explain in a simple language many key aspects of brand development and marketing that he could confusedly feel but could not clearly understand even less so replicate. Today Charles Haddad  encourages in his team ” free and spontaneous communication. We then select what we feel is relevant”. “It is not about leaving behind our marketing objectives but rather about dissolving automatic censorship mechanism often inherent to corporate structures.”

Armand de Villoutreys, CEO of Firmenich in Paris and president of Firmenich Fine Fragrance World Division, asserts that he has “learned to approach differently his leadership role in a creative corporation.” And it showed very tangible results! “We started four years ago to integrate into our management practices the principles of Intuitive Intelligence,” says the French executive. “We have been happy to see an accelerated growth of our financial results across continents well above market average.”

© Les Echos n° 20486 dated 08-13-2009 p. 06 (Authorized translation by Peter Camo)

Intuitive Intelligence: The New Mindset for Sustainability

sustainable.jpg

In their recent article Why Sustainability Is Now the Key Driver of Innovation [Harvard Business Review September 2009], Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami argue that sustainability isn’t a burden on the bottom line; instead, they make the case that going green can lower costs and increase revenues.

They make the point we have been making at The Human Company for some time now: only companies that make sustainability a goal will achieve competitive advantage. Corporate sustainability does not bloom without effort, however, and the authors describe a 4-phase maturity model for the process:sustainabilitystages.gif

In our experience, we find most that far too many companies view sustainability as a “corporate social responsibility” and not as an engine for growth.

Let’s call this STAGE 0: GreenWashing – paying lip-service to sustainability. In this phase,companies view sustainability as a PR exercise, as a community building initiative, but they let it fall far of its true potential. For them, this is corporate citizenship, not competitive advantage.

At this phase, we also see that there is no accountability for sustainability. Often, it is the CEO’s job.  This is a cop-out of course, but the data is clear:

sustainabilityresponsible.gif

To add insult to injury, the next step often ends up with the “coronation” of a corporate “sustainability officer” – which again is simply the wrong approach.

Fortunately there are examples of companies that are using intuitive intelligence to challenge their traditional assumptions and create real solutions for lowering costs, eliminating waste, creating new products and services, and even changing their global business models.

Wal-Mart, for example has  taken the greening of its supply chain very seriously. The release of data on its scorecard for the environmental
friendliness of its vendors’ product packaging
, is a clear, measurable initiative which is already impacting over 2000 suppliers.

The Wal-Mart scorecard evaluates the “green quotient” of product packaging based a number of attributes, such as:

  • Greenhouse gas emissions related to production
  • Materials used
  • Product to packaging ratio
  • Cube utilization
  • Recycled content usage
  • Innovation
  • The amount of renewable energy used to manufacture the packaging
  • The recovery value of the raw materials and emissions related to transportation of the packaging materials.

Wal-Mart also announced plans for an
similar scorecard for their electronics suppliers in 2008. Criteria for the electronics scorecard includes:

  • Energy efficiency
  • Durability
  • Upgradability
  • End-of- life solutions
  • Size of the package containing the product
  • Ability
    to use innovative materials that reduce the amount of hazardous
    substances, such as lead and cadmium, contained in the product

View a Wal-Mart green supplier scorecard here>>

Then there’s GE.  Of course, we’ve all seen their “ecomagination” campaigns on TV and print, but they have have taken that all important real step to transforming their product innovation process in ways that can only be described as radical.

Instead of appointing a GE Tsar of sustainability, Jeffrey Immelt brought in Professor Vijay Govindaran as their Chief Innovation Consultant. His job, to work with specific divisions to identify real opportunities for global products and services.

The approach they created “reverse innovation,” is outlined in How GE is Disrupting Itself (Harvard Business Review, October 2009). VG describes their thinking as follows:

More information on the process here >>

Why does intuitive intelligence help you think in sustainable terms?

The answer is very simple.

Our instinct is responsible for the survival of our species. We can reasonably say that human instinct is pretty reliable because it’s helped us survive successfully for thousands of years.

Our modern thinking, however, relies on our analytical intelligence. It’s brought along the prowess of the scientific mind. The problem with this approach is that without genius scientific thinking can be very linear and very exclusive – to the point that it excludes our instinct not complying with reason.

Intuitive Intelligence blends our analytical mind with our instinctual aptitudes. Necessarily, it brings balance to our thinking. The  Intuitive Compass™ facilitates sustainable business thinking and helps us design sustainable business models.

Intuitive Intelligence can be learned and developed, provided we accept that today most of us are not thinking but simply being logical, we can open up to this new mindset.

Why is it necessary to use intuitive intelligence?

Because we will not be able to solve current problems with the outdated way of analytical thinking that created these exact problems.

We face a sustainability imperative. We have to develop and use an intelligence that can think in sync with our ecosystems – in other words an intelligence that understands and respects the creative process of life.

All great scientists recognize that the history of our universe is the consequence of a number of fundamentals laws explained by science as well as a long series of unexplained accidents. Logic alone cannot explain everything. The same goes for business.

In order to help you engage the creativity of your teams, in order to inspire long lasting respectful relationship with consumers, in order to design innovative, sustainable and profitable business models, in order to lead organizations into a successful and sustainable future we developed an original model: The Intuitive Compass™.

How does the Intuitive Compass™ help companies achieve breakthroughs in sustainable innovation?

intuitivecompass.gif

We use the The Intuitive Compass™ as a tool to assess and
chart progress as companies (and executives) learn to harness intuitive
intelligence in four key areas:

Strategy: how to employ
intuitive intelligence to create sustainable, innovative business
models which deliver real value to customers in their local environment.

Leadership: the transformative power of intuitive intelligence energizes and builds movements – with clarity of vision and purpose.

Work Culture: the ecosystem health of your business culture is reflected in your bottom line results. The Intuitive Compass™ helps create the open culture you need to succeed in the intelligent economy.

Consumer Needs: map your customers needs and wants using The Intuitive Compass™ – creating a value innovation agenda for your customers.

We help companies and leaders get a “southwest” perspective, and focus on creating sustainable value. Our mantra: sustainable business is a the core of future business success.

Case Study: Creativity versus Results at L’Oréal

logoloreal.gif

According to a recent report in the Wall Street Journal, L’Oréal SA, the world’s largest cosmetics maker, reported flat sales
for the first quarter of 2009 as consumers shied away from its luxury
skin creams and shampoos in favor of its cheaper brands. The maker of products ranging from Giorgio Armani perfume to Lancôme
skin cream and Maybelline eye shadows said sales increased 0.3% to
€4.37 billion ($5.83 billion) in the first three months of 2009.
Jean-Paul Agon, L’Oréal’s chief executive, said that he would not offer
specific guidance for the year but that results would “improve” during
2009.

After accounting for the effect of currency fluctuations, sales fell
9.3% in Western Europe and 5% in North America. This shortfall was
partly offset by an increase in revenue in Asia.

Sales at L’Oréal’s luxury cosmetics division fell, while sales of its consumer drugstore lines increased slightly.

This is an unfortunate turn for L’Oréal which has always been known for its commitment to scientific research and exceptional financial results.

In fact, you might say there is an unresolved tension in its culture between creativity and business results. This tension is visible even on its website. If you read about the “profiles they are looking for” under the marketing category, here’s a description you’ll find:

Creativity, imagination, openness to new ideas – coupled with the highest professionalism.
• Project-oriented, natural team player, at ease working with others in an environment of entrepreneurial challenge.
• Global-minded, flexible, able to juggle multiple priorities.
• Strong analytical thinker, excellent communicator.

You have a keen eye on the latest fashions, a finger on the pulse of emerging consumer and cultural trends. Highly developed interpersonal skills, a passion for results. The personality to make a difference.

Diagnosis: L’Oréal – When East dominates West…                

For the past few years I have been working with L’Oréal to change this dynamic.

The challenge: help marketers and managers develop a sensitivity to the creative nature of the beauty
product development process and specifically gain an understanding
for the process of research and development.

When the cosmetic group decided to develop a world wide talent appraisal process Sir Lindsay Owen Jones articulated the need to develop a competence key to the success of the group in the eye of the CEO, and that is: sensitivity to métier. What Sir Lindsay Owen Jones was aiming for was to develop a global, shared understanding for beauty products development, for L’Oréal customers, and for a number of other confidential important characteristics identified by the CEO as key factors for success in the beauty industry.

The Human Company was commissioned to research how to define this specific aptitude and how to develop it and train for it. We developed an international training track that is seen today as one of the most successful and inspiring training program available at L’Oréal.

Our approach consists in helping marketers understand how to engage and inspire creative people to contribute the best of their creativity.  We used the The Intuitive Compass™ to highlight the tension between results-driven managers and creative teams.

compass_loreal.gif

Our analysis: L’Oréal has a product innovation driven business model whereas most of its competitors have often a market-driven model. The company believes in scientific innovation to promote growth. Its founder was a scientist. It is how L’Oréal sustained 20 years of double-digit growth and became the world leader in cosmetics. There is, as I mentioned earlier, a tension in its culture between creativity and business results.

Results: We helped L’Oréal’s teams understand the perspective of the different teams.  The creative teams learned about the business aspects they had neglected, while the managers and marketers were helped to understand the creative process. The bridge is intuitive intelligence. Our training program is seen today as one of the most successful and inspiring training program available at L’Oréal. (Average rating: 19.5/20) because it is very relevant with the innovation imperative prevailing in the beauty Industry, articulated by the CEO Jean Paul Agon in his mandate. 

Definition: What is Intuitive Intelligence?

How many times do we see a business leader make a decision without a lot of data, seemingly without deliberation, and make the right call?

Not very often, in the “western” world.

But every so often we encounter that rare leader who makes impossible decisions and, time and again, gets it right. This is not an accident, we tell ourselves, as we look for clues to try to understand this phenomenon we are witnessing.

What we are experiencing is Intuitive Intelligence in action.

Intuitive Intelligence lies beyond the boundaries of science and analytics. It bridges the realms of reality and imagination, reason and instinct, material and spiritual dimensions of human existence. Intuitive Intelligence is non-linear, a key skill for success in the new economy, an economy driven by constant disruption and chaos.

Intuitive Intelligence
is defined as the combination of 4 abilities:

–  The ability to think holistically

–  The ability to think paradoxically

–  The ability to listen and connect to oneself and others

–  The ability to lead by influence rather than design


THINK HOLISTICALLY

Business is not about money. It’s not even about shareholder value (ask Jack Welch!).

Business is about servicing our communities and allowing people to express their talents and genius for the betterment of our society.

Money is one very necessary component of business and it keeps the human engine going but it is not the engine.

Business success is achieved through the power of human creativity and organization and depends on individuals – people – complex beings in relationship with an unpredictable environment called nature. No human experience can be fully represented by a mathematical equation (ask artificial intelligence experts!) and the unpredictability of nature cannot be comprehended, let alone mastered.

Yet we realized only recently that besides the financial bottom line there should be other criteria to set business goals and measure the results of human organizations. The business impact on the surrounding ecosystems and its influence on humans are factors rarely placed at the center of corporate strategy.  Intuitive Intelligence™ helps us move from a conservative fragmented business approach that focuses on financial results as the ultimate goal, to a wholesome business view where people, society and natural ecosystems are all part of the  picture, with money seen as only simply a resource, a means to an end. All aspects of business are inseparably taken into account as a whole for maximum efficiency and sustainability.


THINK PARADOXICALLY

As much as business can be taught, it is still a rather random process similar in this to the creative process of life. Many leaders focus on economic results believing that it is the shortest way to achieve their goals. The paradox is that empowering people and relationships are the key to better financial results. In 2004 neuroscience was finally able to establish a fact known for millennia by ancient civilizations: the human mind is more unconscious than it is conscious. For that matter, engaging the unconscious in people is more effective than focusing on the conscious part of their mind. This is the paradoxical thought process.  As psychologist David G. Myer puts it: “under the surface lies a lot of intelligence above a lot of delusion.”


LISTEN FOR THE UNUSUAL

In order to be in touch with the unconscious aspect of our lives we need to pay attention to subtle details and to our emotions, which are indicative of our perceptions, whether conscious or unconscious. Our emotions fashion our thoughts, which lead to our actions; our actions turn into habits that finally shape our character. And as we know, character is essential to leadership. A charismatic leader will communicate without necessarily taking in the other person’s emotions, perceptions and environment and will attract dedicated followers; a leader who demonstrates self-awareness and manifests empathy will empower and inspire people with character who are more likely to take risk and think autonomously – two attitudes well needed to succeed in times of radical change.

This kind of sensitivity operates at a fundamental level of equality between individuals and induces trust, respect, and interdependence three necessary factors to foster creativity and lead a culture of high performance. Moreover when a leader is able to listen to others and oneself with such a sensitivity he or she takes in all sorts of creative information about consumers and their environment, about an industry and its trends.


LEAD BY INFLUENCE

Innovation is one of the most critical factors for success in today global economy. It relies on systems and processes, yet it depends even more on the creativity of people and corporate cultures.  Creativity finds its inspiration beyond the motivation of financial gain or economic achievement. It stems from dreams and ideals and pertains more to utopia than pragmatism.

Organizations seeking innovation cannot rely only on a pragmatic leadership model rooted in a purely economic approach (leadership by design).  Such a leadership model sets goals and objectives, covers budgets and schedules and relies on the alignment of teams to execute the corporate vision. Leadership by influence, however, is on the opposite side of the spectrum. It perceives any human organization as a living interconnected web and the relationship with consumers as a dynamic collaborative system. And for that matter it focuses on facilitating and guiding the natural emergence of creativity to reach innovative business solutions. It puts the emphasis on engaging and influencing teams and consumers rather than motivating and controlling them. It conveys a strong sense of meaning within visions and goals to reach that place in each one of us where creativity thrives and can be awakened.  In practical terms, a leader guided by intuitive intelligence ensures that all systems and processes are in the service of the human factor and its ecosystem rather than an isolated attempt to rationalize business and reach financial goals. He or she inspires uniquely magnetic organizations fired up with enthusiasm and a strong sense of possibility. In this way, leading with intuitive intelligence creates virtuous circles and enables teams to believe, manifest autonomy, and succeed.

Intuitive Intelligence is a powerful leadership attribute. It is not a tool to devise the future, but an instrument that points our attention towards the invisible. Intuitive Intelligence brings us closer to understand the transformative and creative nature of our organizations as well as their interdependence with their environments. It is a means to take in unexpected information or paradoxical data and to feed our analytical and rational thinking with subtle creative perceptions. In this way intuitive intelligence bridges the rational and the irrational realms, the conscious and unconscious dimensions, the inner and the outer, the material and immaterial aspects of any business and allows for truly evolutionary leadership.

In our next post we’ll introduce a new tool to help foster Intuitive Intelligence, both in organizations and individuals: The Intuitive Compass™.