Posts Tagged ‘Innovation’

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

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!

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…)

Three Moves (You Can Make Right Now to Change the Game)

Friday, June 26th, 2009

1.  Initiate a scene without having an outcome in mind We get so locked into our goals that we seldom enter a business scene for which we don’t have an outcome already scripted in our minds.  From an interview we want the job.  From a sales scene we want the sale.  From a scene with the boss we want the promotion.

There are two issues with focusing exclusively on our goals.  The first is that the people with whom we share our scenes usually have different goals from ours.   The interviewer’s goal is different from the interviewee’s.  A customer is not interested in helping the salesperson meet a sales quota.  A jealous boss might have the goal of turning an up-and-comer into a down-and-outer.  It’s been known to happen.  Focusing only on our desired outcomes can result in a tug-of-war for control of a scene, severely limiting the scene’s progress and potential.  Not good.

The second, and bigger, issue with being exclusively goal-oriented in our scenes, is that we diminish our potential for breakthrough moves.  Breakthroughs reveal unexpected avenues for productivity.  Breakthroughs can only happen if we are willing to let go of our expectations about what a scene needs to achieve.   And what is a goal but an expectation for a scene? (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…)

Follow the Fear

Sunday, May 3rd, 2009

(This piece first appeared on the Huffington Post on March 10, 2009)

HighDive1

Think about all the things that scared us when we were young.   And how we ‘grew out of our fears.’

Stage fright becomes grace under pressure. Shivering at the edge of the high dive becomes a love of soaring. Fear of ignorance becomes scholarship. Fear for the well-being of others leads to a lifetime of healing.

Fear of being the new kid in school becomes the ability to make friends and find common ground in new situations.

When we are children, we have no choice.  We walk through our fears because we are placed in environments where there’s no turning back.  And then we grow out of it. (more…)

Flexible Essence

Monday, April 20th, 2009

FlexEssence4Catherine Stephens, a Disney executive, coined this phrase last week in casual conversation when she and I were discussing the studio’s new eco-brand, Disneynature.   I am captivated by the pairing of these words, because it describes perfectly the relationship between what a brand stands for, and what it has the potential to become.  This tension between fixity and fluidity, between discipline and disruption, between predictability and opportunity, is at the heart of entrepreneurship and branding.

‘Essence’ defines the core of a brand.  If brand is a tree, essence flows through its trunk.  Essence, especially at the beginning of a brand’s life, is often rooted to the sensibilities of one person or a small group.  For example, Steve Job’s appreciation of good design is at the heart of the Apple brand, Jimmy Buffet’s lifestyle is the essence of Margaritaville, and Tamara Mellon’s taste in shoes is the foundation for the Jimmy Choo brand.  Essence can also be an institutional philosophy like you’d find at a Japanese auto company, or a fast-paced technology brand like Cisco.  Either way, this is where a brand’s fire burns brightest, where vision is most needed, where a brand’s themes are distilled and defined.  It is where the secret formula for Coca Cola, Martha Stewart’s personal style, Oprah’s reading list, and the ‘Honest’ in Honest Tea reside.

FlexEssence5‘Flexible’ is what the improvisational brand has to be at the edges of its network.  Continuing the tree analogy, flexibility is what you find in the tree’s outermost branches and leaves.  For a business operating in the Networked World, the edge is where the action is.  It is where creative disruption happens.  Where innovation is most likely to find its inspiration.  Most importantly, it is where a brand carries on conversations with its customers.  This is where you find skunk works, social networks, and tweets.  It is where buzz begins.

A brand needs both Essence and Flexibility to make a real impact in the marketplace, but it is interesting to note that a brand can be successful with a strong Essence and very little Flexibility, while the reverse is not true.  We have a word for brands with little or no Essence and a lot of Flexibility.  We call them doomed.   During the dotcom era, I once heard a pitch from a group of university scientists who’d lost their funding for a robotic crop picker and had somehow morphed their idea into a a proposal for a 3D web browser.  We in the audience failed to see the connection between the two ideas.  Those scientists never should have mentioned the robotic crop picker.  It may have demonstrated their Flexibility, but it revealed the absence of Essence.  They were showing us a pile of leaves and calling it a tree.

The priority is crystal clear.  Essence has to be the the first consideration.  If you got no Essence, you got nothing.

FlexEssence3

SXSW #7 – SOCIAL MEDIA AND HEALTH CARE

Sunday, March 22nd, 2009

GameChangers has a health care client, and because of that I am aware of this panel before my friend Josh Rose, head of digital media for Deutsch Advertising, who’s not attending SXSW this year, sends out a morning tweet asking his network if anyone’s planning to attend the ‘Social Media and Health Care’ discussion. I am grateful to Josh for the extra impetus, though, because this turns out to be my favorite discussion of the conference.  Nothing is resolved, no consensus gained, no conclusions reached.  But the quality of the questions posed, perspectives presented and the passion people bring to the subject are amazing and inspiring.  SXSW Health Care1

People here represent insurance companies, big pharma, start-ups, physician networks, social networks built around various health concerns, and NGOs. There are several physicians in the audience, and one guy, Vik Duggal (www.konstructr.com) from the construction business who makes a remark on which, the way I see it, the entire conversation pivots.  Until Vik speaks, the focus has been on privacy issues.  And then Vik says, “All of these comments about patient privacy and the relationship between employees and employers assume the current model.  I’m in the construction business and I can tell you that everything about it is going to change in the next five years.  What’s true today will not be true in the future.”

It’s like Vik dropped a lit cigarette into a gas tank.  The room erupts in conversation that the moderator soon loses any chance of moderating. I had not planned to say anything, but when the moderator tries to calm things down by saying, “I’ve got to tell you, I’m not optimistic” I shout at him, just to keep things lively, “That’s your choice!”

A young physician from Brooklyn, Jay Parkinson, is launching his own social network, HelloHealth.  He says, “Doctors like patients who come in already educated about what’s wrong with them.  Education and prevention are the best medicines we have.”

Later I tell the story of how, at no cost to me, I healed myself of a case of Benign Paroxysmal Positional Vertigo (BPPV) using Google search and a YouTube video of a treatment known as the Epley Maneuver; and how my accountant had paid over $6,000 to ‘the health care system’ to get healed of the same ailment.  One guy jumps all over this.  “And who would you have blamed if it hadn’t worked?” he asks accusatorily.  “Myself!” I bark back at him over a whole chorus of people chiming in with anecdotes of their own.

At one point near the end of the session, a woman with an autistic child makes the following statement:  “I can tell you that the parents of an autistic child typically know more about autism than the average physician, and in my experience, the average physician welcomes what the parents know.”