If you invest the time to understand the customer better than they know themselves, if you know the things they want or need even if they can't articulate it, you can begin to develop a good sense as to where there really are unmet needs in the market.
It's one of the underappreciated skills required by an innovator - they have to be able to convince lots of people to do things that might not be fully rational (invest in the company, join something that is likely to fail, try a product they've never seen before), and if you can't tell a good story it is just very hard to make that happen.
History teaches us that many breakthroughs were happy accidents. Whether that's penicillin coming from Fleming neglecting to clean his laboratory before going on vacation or the team at Odeon trying a little side project that allowed people to communicate in real time as long as their message was 140 characters or less (which ultimately of course became Twitter), the unintended is often the transformational.
Aside from the equivalent of blowing up the lab or letting a pathogen escape, the only failure is spending too long or too much money to learn.
The sad truth is as difficult as the first mile can be for entrepreneurs, it is doubly tough inside most large companies as innovators can face some significant headwinds.
We've got some great big problems in our world. We have to figure out how to feed 10 billion people. Too many people can't access clean water, quality healthcare, and reasonable education. We have to figure out what to do about climate change, income inequality, and more. Innovators need to rise to the challenge!
If you are a large company and you want to do something unique, you almost by definition have to tap onto the core business in some way. Otherwise you are going into a naked fight against startups, and that's just a tough place to be.
I feel for today's leaders. I really do. They got to where they are by doing a series of jobs exceptionally well. And that doesn't help them at all with the challenges they now face.
The need to be thoughtful about experiment design is particularly acute within large companies, since some of the behaviors, such as having small teams and tapping into low-cost resources to maximize flexibility, won't come naturally to many people inside huge companies.
People will try to copy what they can see, which is the final product or service, but it's much harder to see (and copy) all the intricacies of the business model that allows you to create, capture, and deliver value. And that's what you need to get right to really jam something down people's throats!
Not only do innovators have to deal with all of the fundamental challenges of innovation, they have to do so in an environment that often is implicitly hostile towards innovation.
One of the biggest mistakes leaders make is to embrace the idea of spurring creativity by letting hundreds of flowers bloom. I've never seen that lead to anything other than cynicism and hundreds of dead flowers.
Creating the new increasingly is more than 50 percent of a top leader's job.
You have to chip away at it and shape it to let the winning idea emerge.
People who copy what exists copy a point-in-time artifact, and if you are managing the process correctly you are already hard at work on the next thing.
If you are trying to improve the performance of existing operations in known markets, it is an analytical problem where it's just a question of aligning your execution engine in the right way. If it is about creating something new and different, you can't derive the right answer analytically.
It would be fun too to put some of the great philosophers and political scientists of the past couple centuries into a time machine, have them look at the world today, and see what they think. Imagine Schumpeter, Malthus, Hobbes, Nietzsche, Marx, and more! That would be good fun.
What looks like resistance in many cases is rational responses to incentives and ingrained resource-allocation processes.
I think it is only in hindsight that you can determine whether something is a mistake or not.
Of course if you are launching a new business you can thinking about revenues, profits, and so on, but metrics such as customer satisfaction or employee retention might be meaningful if you are focusing more internally.
I have a fear right now that what I call the advertising-narcissism complex is sucking up way too much top talent.
Think about how much it costs to learn more. Sometimes you want to build confidence by knocking off the easy things.
The number one thing I urge people to remember is it is all about being scientific about managing strategic uncertainty, while striking the important balance between being thorough and being flexible.
People who live in more than two countries are more successful innovators.
Most startup companies have two people, and they figure out creative ways to swarm problems. They move faster and have more impact.
"Another key role the CEO plays is to focus efforts."
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