The Innovators Studio with Phil McKinney
Every public company's R&D number is a lie hiding in plain sight. Not because anyone falsified it. Because the number was never built to tell the truth. It was built to satisfy an accounting standard written in 1974. And for fifty years, boards, analysts, and CEOs have been making billion-dollar innovation decisions based on a number designed by accountants to solve a different problem entirely. Here's what makes this genuinely strange. The real number exists. The government has been collecting it from every major US company for decades. It would answer the question every innovation leader...
info_outlineThe Innovators Studio with Phil McKinney
Every public company in the technology industry measures innovation spending the same way. R&D as a percentage of revenue. Why? Because Wall Street tracks it. Boards benchmark it. CEOs get fired over it. And it tells you almost nothing about whether the spending is working. Bill Hewlett and Dave Packard knew that. From the very beginning, they measured something different. Something the rest of the industry has been ignoring for seventy years. And the proof was sitting in a paper that Chuck House pulled out and sent to me after a conversation at a Computer History Museum board meeting. By...
info_outlineThe Innovators Studio with Phil McKinney
Twenty years. Nearly one thousand episodes on this show. And starting today, we're going to try something a little different this season. Season 21 is about the decisions that actually determine whether innovation lives or dies inside any organization. The real calls. Not the fluff stuff we read in academic textbooks. I want to actually put you in the rooms where these decisions are happening. What went right. What went wrong. My objective is to expose you to the patterns in innovation decisions so that you can recognize them. Recognize them in yourself, in the people you need to influence,...
info_outlineThe Innovators Studio with Phil McKinney
The best decision-makers aren't better at deciding. They're better at controlling when, where, and how they decide. It took me twenty years to figure that out. Most people spend that time trying harder: more discipline, more willpower, more resolve to think clearly under pressure. It doesn't work. That's when mindjacking wins. Not through force. Through the door you left unguarded. The answer isn't trying harder. It's building systems that protect your thinking before the pressure hits. By the end of this episode, you'll have four concrete strategies for doing exactly that, and a one-page...
info_outlineThe Innovators Studio with Phil McKinney
Ron Johnson was one of the most successful retail executives in America. He'd made Target hip. He'd built the Apple Store from nothing into a retail phenomenon. So when J.C. Penney hired him as CEO in 2011, expectations were sky-high. Johnson moved fast. He killed the coupons. Eliminated the sales events. Redesigned the stores. When his team suggested testing the new pricing strategy in a few locations first, Johnson said five words that explain everything that happened next: "We didn't test at Apple." Within seventeen months, sales dropped twenty-five percent. He was fired. And here's the...
info_outlineThe Innovators Studio with Phil McKinney
When neuroscientists scanned the brains of people going along with a group, they expected to find lying. What they found instead was something far stranger. The group wasn't changing people's answers. It was changing what they actually saw. We'll get to that study in a minute. But first, I want you to remember the last time you were in a meeting, and you knew something was wrong. The numbers didn't add up. The risk was being underestimated. And someone needed to say it. Then the most senior person in the room spoke first: "I think this is exactly what we need." Heads nodded. Finance agreed....
info_outlineThe Innovators Studio with Phil McKinney
"We need an answer by the end of the day." Ten words. And the moment you hear them, something shifts inside your chest. Your pulse ticks up. Your focus narrows. Careful thinking stops. The clock starts. You probably haven't even asked the most important question yet. Is that deadline real? Most of the urgency you feel every day is fake. Manufactured by someone who benefits from you deciding fast instead of deciding well. Most people can't tell a real deadline from a manufactured one. By the end of this, you will. Let's get into it. What Time Pressure Actually Does to Your Brain Last episode,...
info_outlineThe Innovators Studio with Phil McKinney
A nurse in Pennsylvania had been on her feet for twelve hours. She was supposed to go home, but the unit was short-staffed, so she stayed. During that overtime, a patient was diagnosed with cancer and needed two chemotherapy doses. She administered the first, placed the second in a drawer, and headed home. She forgot about the second dose. It wasn't discovered until the next day. The patient was fine; they got the treatment in time. But think about what happened. This wasn't a careless nurse. This was a dedicated professional who stayed late to help her team. Her skills didn't fail. Her...
info_outlineThe Innovators Studio with Phil McKinney
You've got a decision you've been putting off. Maybe it's a career move. An investment. A difficult conversation you keep rehearsing in your head but never starting. You tell yourself you need more information. More data. More time to think. But you're not gathering information. You're hiding behind it. What looks like due diligence is actually overthinking in disguise. The certainty you're waiting for doesn't exist. It won't exist until after you decide and see what happens. I call this mindjacking: when something hijacks your ability to think for yourself. Sometimes it's external....
info_outlineThe Innovators Studio with Phil McKinney
You've built a toolkit over the last several episodes. Logical reasoning. Causal thinking. Mental models. Serious intellectual firepower. Now the uncomfortable question: When's the last time you actually used it to make a decision? Not a decision you think you made. One where you evaluated the options yourself. Weighed the evidence. Formed your own conclusion. Here's what most of us do instead: we Google it, ask ChatGPT, go with whatever has the most stars. We feel like we're deciding, but we're not. We're just choosing which borrowed answer to accept. That gap between thinking you're deciding...
info_outlineIn today's society, success is often glorified and celebrated, while failure is viewed as shameful and something to be avoided at all costs. However, failure can be an essential part of the innovation process. Many of the world's greatest inventions and breakthroughs have come about due to failure.
Why is failure a powerful catalyst for innovation? How can you turn a failure into an innovation that leads to success?
The Importance of Failure in Innovation
People often view failure as a negative thing, something to be avoided at all costs. However, without failure, there would be no progress. Failure is essential to learning and can provide valuable feedback and insights. When Thomas Edison was working on the light bulb, he famously said, "I have not failed. I've just found 10,000 ways that won't work." Edison understood that failure was an integral part of the innovation process and that every failure brought him one step closer to success.
Walt Disney shared a similar perspective about failure. Disney was fired from his first job in a newspaper for "lacking creativity." Later, his first animation studio went bankrupt. Despite these numerous setbacks, Disney persevered. He learned from his failures and used them as stepping stones to create the Disney empire we all know and love today. Instead of deterring him, these instances fueled his innovation and drove him to produce some of the most beloved animated films.
By embracing failure and seeing it as an opportunity to learn, you will be better positioned to innovate.
Overcoming the Fear of Failure
One of the main reasons people avoid failure is due to the fear of embarrassment or shame. However, it's essential to understand that failure does not reflect your abilities or worth. Every successful person has experienced failure at some point in their life, and what they do with that failure sets them apart. To overcome the fear of failure, reframing your mindset and viewing failure as a necessary part of the innovation process is essential. Instead of viewing it as a personal failure, see it as an opportunity to learn and grow.
Consider the case of Google. They have created a separate division within the tech giant that encourages its employees to work on so-called "moonshot" projects – highly ambitious projects aiming to solve enormous problems using radical solutions.
However, what sets Google apart is its perspective on failure. The organization celebrates failure, understanding that it's integral to innovation. They even have a "Failure Award" award given to teams whose projects didn't succeed but demonstrated valuable learnings.
This approach mitigates the fear of failure among its employees and fosters a culture of innovation and creativity. By embracing failure and recognizing it as a stepping stone toward success, Google actively encourages its employees to take calculated risks, cultivating an environment conducive to groundbreaking innovation.
Learning from Failure
Once you've embraced failure as a part of innovation, it's important to learn from it.
Failure can provide valuable feedback and insights that can help you refine and improve your idea. When something doesn't work, take the time to analyze why it failed and what you can do differently next time. This process of trial and error is essential for the innovation process and can help you create something groundbreaking. Many successful companies and products have emerged from learning from failure.
For example, Apple's first attempt at a tablet, the Newton, was a massive failure. However, they learned from that experience and eventually created the highly successful iPad.
Here are some steps to follow to review a failure and extract lessons learned:
- Acknowledge the Failure: The first step is to acknowledge that a failure has occurred. Denying it or ignoring it will not serve your innovation journey.
- Gather Information: Collect data and information about what happened. What were the circumstances that led to the failure? What was the expected outcome, and how did the actual result differ?
- Analyze the Situation: Once you have all the facts, begin analyzing. What factors contributed to the failure? Look at the situation from multiple perspectives to gain a comprehensive understanding.
- Identify the Learning Points: What can you learn from this failure? Identify the takeaways that can inform your future actions.
- Create an Action Plan: Develop a plan based on your learnings. This might involve tweaking your strategy, adjusting your processes, or investing additional resources or training.
- Implement the Plan: Put your plan into action. Remember to remain adaptable – the path to innovation often requires revisions and alterations.
- Document the Process: Record your failures and the subsequent learnings. This documentation will serve as a valuable resource in your innovation journey.
- Share the Lessons: Foster a culture of transparency and growth by sharing your failures and learnings with your team. Doing so encourages others to take risks and learn from their mistakes, which fuels a culture of innovation.
Remember, failure is not a dead-end but a detour to a different route. By reviewing your failures and capturing the learnings, you can turn setbacks into opportunities for innovation.
Pivoting a Failure into Innovation
When failure occurs, not giving up or abandoning your idea is essential. Instead, look at the problem differently and find a new solution. This process involves a series of steps that, when combined, can lead to groundbreaking innovation.
First, there's a need to reassess your vision and redefine your objectives. What was the original goal? Is it still relevant, or does the failure open up a new direction that could be more beneficial?
Second, identify the root cause of the failure and understand its implications. This is where a deep dive into the details is crucial. In doing so, you might uncover overlooked opportunities or hidden insights.
Third, brainstorm new solutions. Use the knowledge from the failure to think of innovative approaches or strategies that could work better.
Fourth, prototype and test these new ideas. Not every new idea will be successful, but through prototyping and testing, you'll get closer to finding a solution that works.
Fifth, iterate on the process. Innovation is rarely a one-off event. It's a continuous learning process, designing, testing, and refining.
By following these steps, you can make the most out of failure and use it as a springboard to drive innovation. It's essential to stay open-minded and be willing to take risks to foster meaningful change and unlock new opportunities.
When Failure Leads to Success
The concept of 'when failure leads to success' revolves around the idea that our mistakes and setbacks can allow us to learn, adapt, and improve. This concept highlights the importance of resilience, adaptability, and a growth mindset. It encourages us to view failure not as an outcome but as a feedback mechanism, a source of learning, and a guidepost directing us toward a potentially more promising and innovative path.
Moreover, many successful people and organizations have their share of failures. They have missed the mark, stumbled, and fallen, but what sets them apart from their competitor is their ability to pick themselves up, learn from their mistakes, and turn their failures into stepping stones for success. Embracing this perspective can transform how we approach challenges, handle setbacks, and pursue innovation.
Here are some real-life examples where failures ultimately led to breakthrough successes.
Consider the case of Dyson. James Dyson, the company's founder, went through 5,126 failed prototypes over 15 years before perfecting his revolutionary vacuum cleaner. His ability to learn from each failure and persist with his vision led to an innovative product that disrupted the industry.
Another excellent example of this is the Post-it note. The inventor was trying to create a super-strong adhesive but ended up with a weak, reusable adhesive. Rather than viewing this as a failure, he saw the potential for a new product that generates 50 billion Post-it Notes annually.
Innovation Culture and Failure
Creating a strong innovation culture is crucial in today's ever-evolving business landscape. Often, companies that embrace an innovation culture are the ones that can adapt and thrive amidst changes and challenges.
Innovation culture is an environment that fosters creative thinking, encourages experimentation, and values learning from failure. It is where ideas, no matter how outlandish they may seem, are welcomed and discussed, where creativity is not just encouraged but is expected, and where failure is not feared but is seen as an integral part of the learning process.
In companies with a strong innovation culture, employees are empowered to take calculated risks and challenge the status quo. They are not afraid to voice their ideas, to showcase their creativity, and to test their hypotheses – even if these may lead to failures. This is because they know that failures are not the end but are stepping stones to success in an innovation culture.
Innovation culture also fosters resilience. Companies with a strong culture of innovation are better equipped to bounce back from setbacks. They can turn their failures into innovations.
Actionable Steps for Developing an Innovation Culture
Creating a strong innovation culture is not a one-time event but an ongoing process. Here are some actionable steps that organizations can take to foster such a culture:
- Communicate the company's vision and mission. Ensure everyone understands the organization's direction and how their contributions will help achieve this goal.
- Create an environment that stimulates creativity and encourages experimentation. Ensure employees can access the right tools, resources, and training to develop innovative ideas and solutions.
- Promote collaboration and teamwork. Encourage employees to collaborate, share their knowledge and experience, discuss ideas, and respectfully challenge one another.
- Celebrate successes - big and small. Acknowledge the efforts of employees who have contributed to the team's success and recognize their achievements.
- Embrace failure. Create an environment where employees are not afraid to take risks and try new things, even if they may lead to failure. Encourage people to learn from their mistakes and use them as stepping stones to success.
- Encourage open communication and feedback. Create an atmosphere where employees feel comfortable giving and receiving constructive feedback and openly expressing their ideas without fear of judgment or criticism.
Conclusion
Innovation is often born out of failure, a concept vividly illustrated by innovations we use daily. Embracing an innovation culture in an organization is crucial to fostering an environment where employees feel empowered to take risks, voice their ideas, and learn from failures, knowing that these are not endpoints but stepping stones to success.