Tag Archives: Intuitive Compass™

Case Study: Creativity versus Results at L’Oréal

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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.

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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. 

The Intuitive Compass™: A Framework for Intuitive Intelligence

We know that innovation is more about people and culture than it is about process and structures. Yet many executives find themselves unable to inspire their teams and foster a culture of innovation. This is not a new theme in management thinking, but it is one that has never been more important.

Early on, as my work took me deep into this realm – the world of intuitive intelligence –  I struggled to build a model to explain why this was so.  And so it was by accident, and by now we know that there are no accidents, that the model of The Intuitive Compass™ took shape:

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Oddly enough, I was using Cartesian coordinates to explain the flaws in our linear thinking. The two principal axes, Play-Results and Instinct-Reason, give us four quadrants (NE, SE, SW, NW). Each of these quadrants represents a function or even a mindset in an organization. Let’s make a few generalizations to explain the framework:

The NE quadrant is the area where reason and results prevail. This is the realm of business administration and management. Most companies excel in this department, led by teh twin beacons of “maximizing shareholder value” and “cost management.”

The SE quadrant is the area where instinct is at the core and results are the rule of the game. This is the mindset one finds in a sales department, or in an athlete.

The NW quadrant is the area where reason engages in a creative thinking process as in strategic planning or marketing (think of an architectural firm or engineering company).

Finally, the SW quadrant is the area where instincts are at the heart of the creative process to invent and create from the unknown and the depth of the unconscious. This is where creators, scientists, researchers, and inventors experience eureka moments. Most executives and almost all companies, even those engaged in creative fields, lack a way to connect this quadrant back into the rest of the business.

The Intuitive Compass™ becomes a tool we can apply 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.

The bottom line is convergence – with customers, employees, management and leadership.

Going forward, we’ll use The Intuitive Compass™ to chart how companies and leaders can use intuitive intelligence to shape the future – both in their industries and in the larger world.

About This Blog: Using Intuitive Intelligence to Create Sustainable Business Value

When I first became involved in researching intuitive intelligence and its relationship to business, I was surprised to discover the disconnect between what leaders wanted to doinnovate and create sustainable valueand what they actually accomplishedscarce innovation and unsustainable value.Often they were doing everything right (by the book) and still failing.As I studied the root cause of these failures, a common thread appeared over and over again, and still appears today. Executives manage their companies in analytic ways, focusing on shareholder value. By focusing on the business results, they fail to do what is required to achieve the very results they desire. They can’t engage their key stakeholders, whether employees or customers.

Two essential truths about human nature are deeply overlooked in most companies:

  • Our minds are essentially unconscious (80% of our grey matter is dedicated to subconscious thinking)
  • Play gives access to our unconscious

Now we know that:

  • Most
    innovative solutions are limited by our analytical minds, because our
    analytical mind knows only what it knows
  • Creativity originates in our unconscious. Breakthrough ideas often elude the rational mind
  • People can rise above their perceived limits when they are inspired

Our western approach to
education, work, collaboration, or solutions for the future is
dominantly led by rational thinking. We have handicapped ourselves.

Our intuitive aptitudes enable us to notice and take in information which may not make
sense to the rational mind. This is our gateway to new and paradoxical
information. They are the conduit to creative ideas.

Intuitive intelligence is the ability to combine
our analytical mind with our intuitive aptitudes to solve problems
in an
innovative way and succeed in the new economy.

Because we now live in a network
based society consumers have gained an active voice in our businesses.
Relationships with consumers are on a reciprocal basis. We need to
speak to their minds, their emotions and their guts. Authenticity is now
at the heart of commerce. Advertising is about creating relevant narratives for
consumers as much as it is about factual information about products and
services.

We must respect our ecosystems and understand that business is part of an interconnected global web.

These are the primary reasons why I authored the book Intuitive Intelligence, and its application model The Intuitive Compass™.

In this blog I will share my ideas and findings about how to use intuitive intelligence to innovate and create sustainable value in order to succeed in this new, ever-shifting economy.

We’ll look at how and why our intuition is often a better guide to problem-solving than reason alone.

We’ll explore ways to use The Intuitive Compass™ and make a difference – in business strategy, leadership, innovative work culture, consumer intelligence, and product development.

Won’t you join us on this journey?

Francis Cholle: About Me

Hi, I’m Francis Cholle, founder of The Human Company. Welcome to my blog on Intuitive Intelligence.

I’m an international author, speaker, seminar leader, and consultative advisor with extensive business experience in a variety of industries from beauty and luxury to communication and IT.

I help organizations nurture and better leverage their creative assets to drive sustainable growth. By designing and implementing original executive development training programs that focus on creative leadership and the management of innovation, my insight and guidance has helped these corporations engage and meet the new challenges of the new economy.

Along the way, I developed the Intuitive Compass, a tool for executive and strategic decision-making. I provide consulting and mentoring to C-level and senior executives at major, mid-size, and emerging firms across a range of industries.

Recent clients include Alcatel Lucent, Bristol Myers Squibb, Caritas – Secours Catholique, Clarins, Firmenich, L’Oréal, Louis Vuitton, Ralph Lauren, SAP-Business Objects, and Siemens.

In January 2008, I started teaching a course at HEC MBA: “Intuitive Intelligence and Innovative Leadership”. We designed the course to encourage executive students to demonstrate a new kind of leadership and help them imagine the defining purpose that drives successful business within the global imperatives of sustainability and innovation.

I earned a Masters in Science of Management from the leading European business school, Ecole des Hautes Etudes Commerciales (HEC), rated the best European business school by Financial Times for the fourth consecutive year in 2008. I’m also a graduate of the Creative Problem Solving Institute in Buffalo, NY and I’m accredited to carry out MBTI assessments.I’m a practicing certified consultant of the Tomatis Method for active listening and interpersonal communication.

I have traveled to more than 45 countries and has conducted business in most of them. I’m bilingual in French-English and fluent in German and Spanish. I’ve lived in the US for the past 14 years and reside in Los Angeles, New York, and Paris.

Contact me here >>