Dare to Innovate

By   September 24, 2015
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In the previous blog, “How an innovative goal may need time to yield returns”, an example was given for obtaining a large goal (a bicycle return trip Delft to Paris). In another blog, “user-driven innovation” the puzzle was described whether an organisation should diverge from past successes. Key to undertaking a large, ambitious, goal, is that its achievement is uncertain and fraught with risk. Goals give direction. Big goals can be empowering and stimulating. And goal achievement is a process: it takes time and other resources. If the path and steps are unknown, as in achieving innovation goals, there is risk. Risk of not achieving the goal. But also the risk of making fatal mistakes: mistakes that jeopardize the organisation’s existence or the future achievement of the goal.

A simple solution is to consider the realisation of the goal as a series of experiments. You need to gain understanding: what do you need to know to achieve the goal? What test can you conduct that helps you achieve the goal? Each experiment is a small project that is restricted in time, budget and other resources. It must deliver the result of more understanding. An experiment only fails if it does not deliver more understanding. The hypothesis being tested in the experiment may be overthrown or supported: both provide more understanding, yet overthrowing the hypotheses teaches you more, see Popper on falsifiability.

Jim Collins, in his book “Good to Great”, describes a sensible approach: conduct those experiments that have low risk and low gain. Based on each experiment and the previously collected experience, set up the next experiment which brings you closer (or at) the goal. Repeat, until you get it ‘right’ and can achieve the goal: then start scaling up and reap the benefits.

A simple illustration concerns improving a website. Launching a new version has certain risks: can customers still find their way around the site and keep buying existing and new products? Instead of just launching a new version, it is possible to conduct experiments about possible improvements. One technique is “A/B testing”, for example, used for testing landing pages for new products. This entails setting up a new webpage and comparing the performance of the existing and new webpage by re-directing half of the incoming traffic to the new webpage. Simple yet effective: such analyses can lead to significant improvement of (e.g.) purchasing funnels on e-commerce sites. Conducting such A/B tests is now supported by commercial products: simple, cheap and easy to use.

For achieving any (large) goal, you should make time to increase your understanding. Without understanding, goal achievement becomes gambling. By explicitly seeking understanding, experimentation takes the place of gambling. Experimentation can be controlled in their risk and gain. Gambling exposes you to uncontrollable risk and gain.

Being creative and finding an innovative solution entails experimentation: try something. If it succeeds, learn from it. If it fails: learn from it. Try another experiment that brings you closer to the goal. Keep on experimenting, until you get it right and have a solution for the goal. A solution ‘that is right’ contains understanding of its risks and has measures to control these risks (their likelihood and/or impact).

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