Archive for the ‘Innovation’ Category

Pragmatic Chaos and the Winning Game

Friday, September 25th, 2009

NetFlix1In the Business section of its September 22 edition, the New York Times featured an article by Steve Lohr about a Netflix-sponsored contest with a $1 million prize for the best solution for helping the movie rental service improve its recommendation system (“If you like Movie X, we recommend Movies Y and Z…”)  The article included a number of insights into what we call a Winning Game:

1.  A winning game attracts winning players. By giving participants access to a very sophisticated data set, NetFlix’ contest was designed in a way that attracted highly-skilled programmers from around the worl.   The game itself serves as an organizing mechanism and a magnet for talent.

2.  A winning game invites collaboration.  The winning team, which called itself BellKor’s Pragmatic Chaos (pragmatic chaos–a great description of improvisation!) was composed of scientists, statisticians and coders from half a dozen countries who joined forces in the course of the contest.   By collaborating, they all increased their chances of getting to the prize.  Collaboration begins with communication.  It leads to learning.  It results in transformation.

3.  The performance of the team is more important than the performance of any one player. See #2.

4.  Successful outcomes cannot be scripted ahead of time, they must be improvised.  No one member of the Pragmatic Chaos team had the roadmap to victory before the game began.  It was the collaboration, and their ability to improvise, that guided them to the winning solution.

5.  In a winning game, there are no losers. Only one team got the $1 million prize awarded by Netflix, but there were many winners.  If you improve your performance through participation, you win.  If you make a connection, add to your knowledge, or get a fresh perspective on a problem by virtue of playing the game, you win.  The second place team in the Netflix contest, Opera Solutions, a NY-based data analytics company, not only got a lot of coverage for its brand in the Times article, its CEO, Arnad Gupta, described the $1 million prize as “trivial.”  “We’ve already had a $10 million payoff internally from what we’ve learned,” he said.

6.  A winning game is designed to improve everyone’s performance. Viola Spolin, the godmother of modern improv, distinguished between competition and contest.  A competition, by her definition, is designed to separate winners and losers, and inevitably results in an ego-fueled quest for status, dominance, and control of the narrative.  Because walls go up and knowledge gets hoarded, not shared, competition limits opportunities to collaborate and learn.  A contest, Spolin explained by way of differentiating, is a way of competing with oneself, and of improving the performance of one’s team.  It results in what she called extension.  Participating in a winning game makes you and your team better players than you were before.

The Times article mentions several other games that, like the Netflix contest, are designed to yield productive outcomes for all their players, among them the X-Prize Foundation, and InnoCentive, an online forum for collaborative problem-solving and innovation that launched in 2001 and has attracted the attention and participation of big brands like Eli Lilly Co., Avery, and Procter & Gamble.

Footnote:  The article quotes Michael Schrage, a research fellow at MIT’s Sloan School of Business and one of the most brilliant analysts of business innovation I know.  Schrage and I have corresponded about GameChangers and improvisation in business.  He told me in one email that he was an “improv kid,” from the South Side of Chicago, the same neighborhood where Viola Spolin lived and worked.  When he was in high school he built props for Second City shows.  “I cried when Del died,” he wrote.  And if you truly know improvisation, you know what Schrage means by that.

For sure, the game is changing.  And improvisers, in all walks of work and life, are the ones who are changing it.

Health Care, Already Reforming

Wednesday, September 9th, 2009

We have a client in the health care sector, and our work with them has put us in touch with remarkable people who are changing the health care game without waiting for President Obama or any other policymaker to tell them how to do it.  People like Jay Parkinson, co-founder of HelloHealth in Brooklyn, Greg Gramelspacher of Wishard Hospital’s Palliative Care Program in Indianapolis, and Gordon Moore, founder of the Ideal Medical Practice Movement.

CarePractice1Dr. Aaron Blackledge opened his San Franscisco clinic, CarePractice, in 2008.  Today it is the fastest-growing primary care practice in the Bay Area.   We have ideas about how the new community-based, patient-centered models will do more than any legislation to define the future of health care in the U.S., but we cannot express it any better than Aaron Blackledge can.  In his own words, he describes what he did to change the game:

“In the beginning I told my employee–at the beginning there was only one–that if he had friends or family that needed to be seen that he had the authority to set the price on his own without asking me for permission depending on how much they could afford or how much of a deal he wanted to give them.  This may seem crazy to some people, but I think I benefited in so many ways from this practice and feel lucky I came up with at the beginning of Care Practice. It really helped to empower my staff and bring in clients that loved Care Practice.  It reminds me now that since we have grown so much in the past 3 months I am not sure if all the new staff are aware of this ‘policy.’  I will have to remember to tell people about this tomorrow.

Carepractice3“I went to Sarah Lawrence for my undergrad degree.  I was a dance major.  My background is artistic as well as medical.  I have taken many improv classes.  My artistic background helps me look at medicine as a design, a feeling, an experience, that the current medical establishment so horribly lacks.  I know Jay (Parkinson of HelloHealth) is a very accomplished photographer.  I don’t think it’s a coincidence.  Artists are used to facing the unknown, the blank canvas or the empty stage.  We’ve done the same with the medical profession.  What we’re doing didn’t exist before we did it.

“I come from a social activist background.  I never desired to be an entrepreneur.  Never desired to own my own company.  I left my last job and was canvassing for Obama in California.  I heard that Super Tuesday speech, where he said,  I’m paraphasing, ‘Be the change you seek.’  And I thought why isn’t anyone doing this?  And I finally realized you know what, this is my moment, this is my time.  And if I’m going to do it, I’m not going to do it partially.

“I tapped into my altruistic desires, into what it meant, and then I risked everything.  Every dollar I owned, or that I’d ever saved, and put it all into this.  If I needed to spend money on something to make this happen, I spent it.

“All my friends thought I was absolutely crazy.  They couldn’t believe it.  Some of them thought it was going to be some raggedy little space, not the big facility that we have.  Everyone else is closing up shop and joining Kaiser.  And they’re like, ‘What, you’re opening a clinic?!  What are you thinking?!  But I looked at it like this:  There’s no access to care in this city.  There are vice presidents of companies that can’t get in to see a doctor for like a week.  If do it transparent, intuitive, and don’t charge a lot…and I really wanted to show that the future of networking and connecting with patients was through social media.

“I put it in a place where there were lots of young people who’d talk about it.  Mention it on their Facebook, on their Twitter, on their Yelp.  I chose the neighborhood I’m in, Mission Dolores, specifically for that purpose.  I’d heard the story about Tommy Hilfiger opening stores in urban areas and basically letting people shoplift from him, and that was sort of my thinking.  Everything has to exceed expectations.  It’s not what you come in with that matters, it’s about what you walk out with.  We’re building CarePractice as an entity that resonates in the community.  Giving free care to the busboy at the little restaurant who cuts his hand…taking care of one of the guys at the bike shop who has an eye infection.  I wanted to express the view that taking care of people is about more than money, and that is how we’ve grown.

CarePractice2“My place looks kind of fancy, but it’s equipment and furniture I’ve bought from doctors closing their practices, CraigsList, Ikea and eBay.  Everything I have is used.  I put the money into the space, because I wanted that experience.  People don’t even know why it is that it’s different, but it is powerful.  The people who designed it (Indicate Design Groupe) design a lot of restaurants and retail spaces.  They’re used to saying to their clients, ‘Okay this is definitely going to be popular, people are going to come here, you focus on the food.’  And that’s the way we think about CarePractice.  They said to me, ‘You take good care of your patients, because we’re going to bring the people.’  So we focused on the roll-out like a restaurant opening.  People identify with that.   We are like a favorite restaurant.  People point us out as their clinic.

“I want to give you real examples of neighborhood care.  Basically it usually involves simple things for people with little money or struggling that we know through the neighborhood.  The Latino laborers of the contractor who helped to build Care Practice always come to me for their bumps and illnesses and I see them for free.  There is also a shop right next to us and I see a lot of the employees for simple stuff for free or significantly reduced prices and they always tell me if my car is chalked or run up to my car when it is about to get ticketed and pretend like it is their car when the DPT comes.   They are always ready to help me carry in supplies when I need help, which is often.  Another example is the security door guy at a neighborhood shop who I always talk to on the street.  He wanted to quit smoking and asked me to get him some Chantix so I ordered him some at cost and he just yelled out to me a week ago when I walked by that it had been 5 months since his last cigarette.  I didn’t charge him anything besides the cost of the meds. When you create that type of sentiment in a neighborhood it is a powerful component to branding a business.

CarePractice4

“You (i.e. GameChangers) talk about the beginner’s mind, improvisation, and not being afraid to feel like a dumbass and make mistakes the first time around.  That’s the way I look at it, too.  Build a company that serves patients first.  I want every one of my employees to see that we’re generous.  Every interaction is an opportunity to show your character.  And in an age of social media, it is magnified by ten.

“I think the health care system is so ready for change, and people are so unhappy, and the amount of money being spent is so huge that I think can happen very quickly, and not necessarily through legislation, but through individual action.  Ten thousand doctors getting up and walking out of the room and saying we’re not going to do it that way any more, we’re going to do it differently, can change it.  That is my goal.

“People often ask me about health care reform, ‘What if we have single payer?  What if we have this or that?’  My response is that I don’t care.  I can turn on a dime.  I can turn the entire practice around and move in a different direction, and I can do it in a day.  If we went to a Canadian style health care model, pfff, I don’t care, I’d change overnight.”

CarePractice5

GameChanger of the Month – August 2009

Tuesday, September 8th, 2009

RoughEdges1Five years ago, Mona Hoffman quit a secure, high-paying, high-status job at a good old fashioned Midwestern manufacturing company where she was a valuable employee, and began a journey inspired by the book Concrete Countertops by Fu-Tung Cheng.  Her journey has resulted, this year, in the formation of Rough Edges Design, which produces interior design items made of concrete.  The first product line is lamps.  Others are soon to follow.

Mona Hoffman is August’s GameChanger of the Month because her brand is an exploration of themes that matter.  One of her responsibilities at her former company was sustainability, and the company, though appreciated as a major employer in the community where it’s headquartered, was not committed to moving in that direction (its major product lines are made of wood).   Another of her passions is craftsmanship, the ability to turn readily available materials into something extraordinary.   In transforming herself into an artisan who works with concrete, she combines the themes of sustainability and craftsmanship.  The exploration of these two themes creates and informs the Rough Edges brand narrative.

Mona Hoffman is the GameChanger of the Month, because in forming her new company, she acted on what she is passionate about, yet she didn’t leap before looking.   Rough Edges Design is grounded in diligent study and immersive apprenticing in the craft of concrete-shaping.  The transition from cushy-and-corporate to rough-and-tumble is not one to make without a lot of preparation.   Preparation is the key to a successful journey.  Preparation gives you the ability to improvise in a way that a plan, no matter how meticulous and thought-through it is, cannot.   A GameChanger prepares.

Works like The Unknown Craftsman, by Soetsu Yanagi informed Hoffman’s education.   Yanagi’s words, though originally written in another language about artisans from a different culture, described a world familiar to her, one in which everyday objects and materials become sources of what Yanagi calls “calm and friendly beauty.”

Having spent her professional life in a world of zero-tolerance manufacturing and super-repeatable processes, Hoffman has created a brand where the production process, by design, yields unexpected results, where “flaws” are in fact an artifact of the human touch on the material, and are embraced as part of the product’s charm.

Mona Hoffman is the GameChanger of the Month because she interacts with the familiar in a way that makes it new and remarkable.   This is the alchemy of improvisation.  With its artful line of lamps, Rough Edges Design literally turns heavy material into objects of light.  And if that ain’t changin’ the game, we don’t know what is.

RoughEdgesLamps

Creativity in Business Conference – Oct. 4, Washington D.C.

Friday, August 14th, 2009

If you are in the D.C. area, and are interested in learning how to apply the GameChangers principles and other techniques for fostering creativity in the workplace, you’ll want to check out the Creativity in Business Conference.  It is being organized by our friend, Michelle James, and her Center for Creative Emergence.  I’m conducting a GameChangers session there, and moderating the plenary panel discussion, which will be all about improvisation in business.

CC1

Michelle has been teaching the principles of improvisation in business for a number of years.  She has assembled a stellar line-up of presenters who are aligned in the belief that creativity is the secret to a rich and satisfying working life, and to the necessary transformation of American business.  The Industrial Age models won’t cut the mustard in a Networked Economy.

I’m hoping to learn at least as much as I teach.

No sector needs more applied creativity and innovation than the federal government.  Obama and the Executive Branch can’t do it alone.   Today, through the lens of the health care debate, it’s easy to see the divide between the fearmongers clinging to a status quo in which insurance companies and big pharma control the U.S. healthcare system…and the champions of change who understand that we cannot continue to go down a path that puts so many barriers between health care providers and patients.

When the providers themselves want reform, you know something is screwy with the current system.  Yet so many people are afraid of change.  Of the unknown.  Here’s the insight for those people:  In resisting change and clinging to the past, you are guaranteeing your own irrelevance.

This is where creativity plays such a huge role in productive change.  Creativity is all about stepping confidently into the unknown, of facing the blank canvas of the future with the skill and preparation to turn it into a remarkable confluence of art and commerce.  It means confronting one’s fears instead of withdrawing from them.

If the objective (as in this instance) is better health care for more Americans, we have unlimited opportunities to make moves in that direction.  But we’re only going to make the moves when we realize that the process can be its own reward, and that in the process, we will discover the options and opportunities that will never come our way when we are ruled by our fear and frozen by our uncertainty.

Make your move, D.C.!  Sign up today!  (before Aug. 31, you get a nice discount)  See you there!

GameChanger of the Month – July 2009

Monday, August 3rd, 2009

Most of us look at the wallpaper business and see a lot of decay and dismay.  Local mom-and-pop wallpaper stores across the U.S. are getting eaten alive by Home Depot.  On top of that, the internet has given buyers the ability to sample the product at their local retailers, then shop for lower prices online, a cycle which inevitably drives the locals out of business.  If you’re in the wallcovering trade, the past 15 years have not been kind.

Tanya Flemister, a photographer based in Los Angeles, looked at this same scenario and saw beauty in the form of a business opportunity.  Those untold thousands of old wallpaper sample books getting tossed into the trash are filled with richly-textured designs that might be out of date as wallcoverings, but have the potential to become brand new in a different context.   Wallpaper sample books became the inspiration and provided the content for Flemister’s fledgling company, Off The Wall Greeting Cards. (more…)

GameChanger of the Month – June 2009

Tuesday, July 7th, 2009

TrueBlood2GameChanger of the Month kudos for June go to Digital Kitchen, the Chicago-based company that produced the title sequence for the HBO series, True Blood.

You don’t have to love vampire stories to appreciate the artistry that went into the 91-second sequence.  The imagery and sound work on every level, and establish the tone of the series with perfect pitch.  The title sequence speaks to the subconscious like it can read our minds.  It seeps and bleeds into  into every shadow of the stories that follow.   It informs a viewer’s understanding of the show’s characters.  It keys the soundtrack.   There’s a lot to be learned from this title sequence.  And not just how to build title sequences, either. (more…)

Celebrating Revolution

Saturday, July 4th, 2009

Revolution1A memory is only as good as our ability to turn it into action.  We remember what we want to keep alive.

It has never been more important than it is on July 4, 2009, that we remember the founding of the United States of America as a Revolution, an overthrow of a distant ruling elite that had lost touch with the people.

Because today we need another Revolution.

We need a revolution against the kinds of businesses the U.S. has invested in way too heavily for the past 125 years, the businesses that sustained the oil-and-war economy built by people like George W. Bush’s granddad, businesses that President Eisenhower in the 1950s labeled the military-industrial complex.  Today the news media is complicit in the complex.  After all, what is more likely to keep you glued to the feeding tube than something scary happening right outside your front door? (more…)

Managing the Disrupture

Thursday, June 18th, 2009

disrupture1

As natural as change is, there’s no getting around the fact that it can be painful.  Especially when it happens to you and is not authored or initiated by you.  ‘Disruption’ is a word that some managers toss around in a pretty cavalier way as a desirable state  or productive path for businesses and their employees.  Disruption (from the Latin ‘dirumpere,’ meaning to break or burst asunder) is not, however, always such a pleasant thing.  The past can collide with the future in an agonizing present.  Disrupting an unproductive pattern of behavior is not the same as disrupting a hardworking family’s way of life, and we are seeing entirely too much of that these days.Try telling residents of a small Midwestern town that just lost its largest employer in the auto industry downturn that disruption is cool, and nobody’s going to be buying you a beer anytime soon.  In this kind of economy, we often greet disruption with the same enthusiasm we welcome a rusty nail disrupting the bottom of our foot. (more…)

The Caged Bird Effect

Thursday, May 21st, 2009

BirdandCage

Multi-tasking is a myth, in the sense that a person can only do one thing at a time, otherwise there is no true focus.  We can process on many parallel levels, but our actions happen in sequence. Skilled players can perform tasks so quickly in sequence that it looks like they’re doing two things at once.  This is an illusion, like a flip card with a bird on one side and a cage on the other.  Twirl the card fast enough and the bird appears to be in the cage.  Skilled players can make you think the bird is in the cage, when in reality it is the fast juxtaposition of bird and cage that creates this illusion. (more…)

Scrumprovisation

Thursday, May 14th, 2009

There is no shortage of improvisation in business.   The challenge is doing it well.  If you improvise well, you will be consistently productive, generate wealth over time, and have the ability to maintain your independence.  Improvise poorly and you are a drain on productivity, dependent on wealth generated by others, and develop habits that conceal your shortcomings instead of displaying your skills.

In the Networked World businesspeople not only need the ability to improvise well, the environment demands systems and processes to replace the tired and increasingly ineffective methodologies of the Industrial Age,  systems and processes that bring discipline, structure and consistent performance to the googly dynamics of networks. (more…)