Change Implementation Techniques for Forming Transitional Team, Creating Alignment, Maximizing Connectedness and Creativity


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· · To handle change effectively, there is a need to think and act differently. There are too many instances of people thinking and doing the same thing over and over again, while expecting a different result. This is insanity! . If you keep doing things the same old way every day, you'll get the same results!!!!!

Need to keep asking why, ie why can't we do this? Why are we doing that?

A creative thinking activity

You are a bus driver and can only pick-up 1 more passenger. You have 3 persons to choose from:

i) An old lady who will die unless you take her to hospital

ii) A friend who once saved your life

iii) The perfect partner for you, ie the love of your life

What is your decision?

(source: Raghuvar Dutt Pathak, 2015)


· · To handle change effectively, there is a need to think and act differently. There are too many instances of people thinking and doing the same thing over and over again, while expecting a different result. This is insanity!

Mindsets are important as they are the way we see the world, ie is the glass half full of water or half empty? The optimist looks at it and states that it is "half full"; the pessimist claims that it is "half empty"!!!!!!!!!!

Remember: changing mindsets involves challenging accepted and shared assumptions, beliefs, etc; being able to question our habitual ways of seeing things so that we are able to see new possibilities. Generally, as these assumptions are implicit in our judgments, we are not likely to challenge them; we are, in fact, blinded by them. Great leaders develop practices that ensure their assumptions are questioned. One way to do this is to see ourselves through someone else's eyes, ie the gaze of others. For example, on a trip to Europe, Nelson Mandela used to summon his PAs in the evening to

"...tell me what I have done wrong today, because I don't want to make the same mistake tomorrow..."

Nelson Mandela as quoted by Steven Segal, 2005

" is critical for leaders to be attuned, not just to what they see, but also to the way in which their perspective limits them and closes all opportunities to them..."

Steven Segal, 2005


Need to be continually challenging and questioning the status quo so that you're building a culture of "restless renewal". An example of the benefits of restless renewal is IBM when Lou Gerstner became CEO. The conventional logic in IBM was to break it up, as its size was seen as a disadvantage. On the other hand, Gerstner saw the company's size as an advantage in a market that was driven by fragmentation; it provided opportunities for IBM to service customers who could not integrate technology for themselves, etc. Furthermore, he overturned IBM's conventional attitude towards competitors. Instead of seeing competitors as the enemy, he came to see opportunities in collaboration

After a meeting of 11 Nobel Prize winners in Korea (2000) Edward deBono stated

"...there was only one who said he got his ideas by systematic analysis, every other one came by his ideas by mistake and omni-speculation..."

as quoted by Piers Dudgeon, 2001

Some interesting quotes to reinforce the need to think and act differently:

"...The greatest danger in times of turbulence is not the is to act with yesterday's logic..."

Peter Drucker as quoted by Doug Stace et al, 2001

"...You cannot use yesterday's thinking to solve today's problems, for it is yesterday's thinking that created today's problems..."

Albert Einstein as quoted by HRmonthly, August 1999

Furthermore, Einstein admitted

"...When I examine myself and my methods of thought, I come to the conclusion that the gift of fantasy has meant more to me than any talent for abstract, positive thinking..."

Albert Einstien as quoted by Mark Lythgoe, 2005

"...If we are to achieve results never before accomplished, we must expect to employ methods never before attempted..."

Francis Bacon as quoted by Wayne Mansfield, 2003a

"...You can have subsystems by which knowledge is located, decoded, shared and transferred, but you will never understand how knowledge is managed unless you recognize this invisible asset is all about innovation, not IT..."

Tim Devinney inAFRBoss, 2001

"...Profound insights come out of a cocktail of unexpected problems, novel experiences, random conversations and newly discovered facts..."

GaryHamel, 2000

"...the only way of discovering the limits of the possible is to venture a little past them into the impossible..."

Arthur C Clarke as quoted by Michael Shermer, 2002

"...almost half of US economic growth at the end of the 1990s came from lines of business that did not exist a decade before..."

The Economist as quoted by John Wolpert, 2002

"...The stone-age did not end because we ran out of stones, the oil will not end because we run out of oil..."

Don Huberts as quoted by Karlson Hargroves et al, 2005

"...A mistake is an event the full benefit of which you have not yet turned to your advantage..."

Edwin Land as quoted by Peter Senge et al, 2005

"...We are fiscally conservative so we can be creatively reckless. And we marry very carefully the movie to a specific audience..."

Tom Rothman (Fox movie studio) as quoted by Marc Gunther, 2006

"...I try to have a tolerance of ambiguity: stepping back from issues and gaining an appreciation that things aren't always as they seem, and looking for the more subtle meanings of issues and trends that they might be foretelling..."

Cathy Walter as quoted by Helen Trinca, 2006b

" the absence of disciplines it is not possible to be genuinely creative. In the absence of creativity, disciplines can only be used to rehearse the status quo..."

Howard Gardner, 2007

"...The real voyage of discovery consists not in seeking new lands, but in seeing with new eyes..."

Marcel Proust as quoted by David Osborne et al, 1993

Ideally, look at trends, etc in your industry from an outside point of view and get away from "group think: think long term, challenge conventional wisdom, turn threats into opportunities, etc. For example, a successful leading Australian property group (GPT) used a group of scientists from the CSIRO to look at future trends in its industry. These "outsiders" identified the impact on office towers and shopping centres of technology, the concequences of using more efficient energy sources, impacts of the rise of India and China, and e-commerce. Additionally, the senior manager became a board member of a bank and a major conservation group as a way of broadening his perspective. They have invested in an Airbnb style operation that links office space users and owners; they are in partnership with an organisation to co-share their office space; they are developing student accommodation linked with a shopping centre.
Be frugal in the way you manage your expenses, disciplined in the way you manage your capital and think long term.
Importance of words' connotations, eg in the property industry, talk less about landlords and tenants, and more about service providers and customers

Examples (46) of Seeing with new Eyes

1. Writing in space

NASA (USA space agency) wanted to find a method to use a pen in conditions of zero gravity. NASA spent several million dollars developing a ballpoint pen with pressurised nitrogen to force out the ink. In the meantime the Russians used a pencil - even chalk and slate would have sufficed! Although the most practical and cheapest solution to the problem was already available, the NASA scientists could not 'see it': their mindset was blinded by technology. This was also a case of incorrectly defining a problem: the NASA scientists wanted to modify a ballpoint pen for use in space, rather than find a writing instrument that would work in zero gravity

2. Bulgarian bulldozers

After the first Gulf War, Kuwait needed to find ways to extinguish the many oil fires started by the retreating Iraqi army. USA experts recommended that the Kuwaitis use explosives to starve the fires of oxygen, but that would have taken months and been very dangerous. On the other hand, the Bulgarians indicated that they could bulldoze the fires using drivers wearing protective fire-proof suits - this would take just a few weeks and would be a lot cheaper and less dangerous than using explosives.

3. Look: no inventory!

In the early 1980s, a group of executives from various US-based automobile organisations went to Japan to try to find out why the Japanese were outperforming their American counterparts. On returning, one executive stated that he was not impressed with the Japanese as they did not show them 'real plants'. He felt that his visit had been staged-managed. When the executive was questioned more about this statement, he stated that he had not seen a real plant as there was no inventory in the Japanese plants. How wrong he was! He had seen a radically different production system called 'just-in-time' and had failed to realise its significance and potential.

4. Re-branding

BP, by re-branding itself as "Beyond Petroleum", has exploited its marketing and technology management skills that were developed in its fossil fuel business to become a market leader in renewable energy technologies, such as solar cells. This was exposed as a shame, ie "green washing", after BP's Deepwater Horizon oil spill and resultant environmental disaster in the Gulf of Mexico in 2010 (James Chessell, 2016).

5. Railways and optic fibres

Fibre-optic cable through decommissioned pipelines/railway lines (Qwest in USA used to be a railway firm until it was pointed out to them the advantages of running optic fibres next to the railway lines)

6. Railways as prime real estate

Railway lines as prime real estate in Japan (building above the railway lines)

7. Fertiliser and clay pigeons

Shooting range (user-friendly clay pigeons made of ice with fertiliser)

8. Quartz movement

In 1967 the Swiss watch industry put on display an invention showing quartz movement technology, but they hadn't patented the idea. They didn't realise that this invention would destroy around 80% of their own industry. Their own assumptions about the nature of watch making were so strong they were incapable of understanding the full implications of this invention

9. Post it notes

The inventor of 'post-it notes' thought that he had failed as he wanted to develop labels that would stick permanently. Luckily, somebody else saw the potential of temporary stick-on notes.

10. Refrigerators warm food

Selling refrigerators to the Eskimos (prevent food from freezing)

11. Shoes in Africa

One salesperson saw a limited market selling shoes in Africa as very few people were wearing shoes, while another salesperson saw it as a great opportunity to sell shoes for the same reason!

12. Transistor, sister

Bells Lab, who dominated research in the telephone industry from 1920s to 1960s, developed the transistor. They (Bell) could not see its use inside the telephone, thus sold for it for $US25,000!!!!! Yet it was one of the most valuable developments that Bell produced, as most electronics are based on it

13. Condoms and safety

A condom maker applying the same technology to making safety gloves

14. Heart to Viagra

In 1992 a group of healthy men took part in a trial to test the drug Sildenafil which was aimed to treat angina, the chest pains caused by heart disease. The drug had an unexpected side effect, and was eventually rebranded as Viagra

15. Corn flakes

Kellogg Brothers developed corn flakes by accident in 1894. They were trying to produce an alternative and healthier form of bread by rolling wheat, and produced a sticky doughy mess. Regarded as useless, it was thrown out. A few days later, the dough became mouldy. Then it was rolled a second time and to everyone's surprise, produced large thin flakes of wheat that were crisp and tasty after being oven baked

16. Nelson Mandela

Prior to Nelson Mandela's release from jail in to South Africa, one of the top academic think-tanks in USA sent some of its staff to study the potential impact of his release. The resultant report concluded that after his release there would be civil war in South Africa and a million people would die. This think-tank's mindset was totally blinded by what had happened previously when political power had changed radically in the American Civil War and elsewhere in Africa

17. Technology cross pollinating

Initially technologies ran in parallel - now they crisscross and are revolutionizing each other's industry. Examples include

- the basics of genetics are so remote from those of pharmacy ‐ and yet genetics is rapidly changing the pharmaceutical industry. Despite this link, no pharmaceutical organisation has successfully integrated genetics into its own research program. So far the links have been through alliances, partnerships, etc

- new market realities of converging technology, such as in consumer electronics, mobile communications, computers, digital entertainment and broadband networks businesses

18. No game, more pain

One of the best ways to alleviate pain is to introduce a distraction. Burn patients undergoing treatment on their wounds reported that their pain dropped dramatically when they played 3D virtual reality games. Functional magnetic resonance imaging of the brain showed that playing the games actually reduces the amount of pain-related activity. Virtual reality programs can also help phobic patients overcome their fears, such as spiders, heights, flying or public speaking, by exposing patients to virtual simulations of the cause of their phobia. As the patient gradually overcomes the fear, the simulations become more realistic. A specially designed program is now being used to treat survivors of terrorist attacks for post-traumatic stress disorder.

19. Interactive technology

- Using Internet games with computer-aided design technology to create interactive 3-D environments for professionals in the construction industry to work in real time. This enables the professionals to explore and test ideas for Australian property, design, construction and facility management industry. It allows every aspect of the development to be visualized, ie associated plans can be studied interactively by planners, builders, suppliers, residents, housing authority, environmentalists, etc. Latest software allows users to optimize quality and functionality of the development, or the sustainability and its lifecycle performance. Furthermore, it is claimed that people actually brainstorm significantly better when working collaboratively in cyberspace!!!!!

- In South Korea, on-line multi-player games are used by students to learn English, maths, science and history. These interactive games are becoming more popular than text books

20. Houdini's lucky escape

One of the most intriguing stories about Harry Houdini (the world's greatest ever escape artist) involved his escaping from a bank vault with a state-of-the-art locking system. He was allocated 3.5 minutes to escape. He tried to pick the locks, but he couldn't hear any familiar click sounds. When the time was almost up, he was getting desperate and accidentally leaned against the vault door. It creaked open. The door was had not been locked, but Houdini believed it was. Only the accident of leaning on the door changed his mindset (and saved his career!).

21. Bagged lettuce

The washing, cutting, packing and wrapping of lettuce has seen the growth of this industry from 0 to $US1.5 billion in 10 years and it does not involve a silicon chip!!!!!!

22. Fashion statements (watches and mobile phones)

Recognition that watches and mobile phones are far more than functional use: they are fashion statements

23. Photographer dilemma

A famous but poor photographer had one of his photos used ‐ without permission - in a political brochure for President Roosevelt and the oversight was realised too late to stop production of the brochures. Many advisers did not want to contact him, as they feared a large financial claim due to his precarious financial position and his reputation of being very possessive of his photos. One advisor did, however, make contact and explained how his reputation as a famous photographer would be enhanced by the use of the photo. The photographer was happy with this

24. Competitiveness and sustainability as partners

Businesses can be both competitive and achieve sustainable development (environmentally and socially). The assumption that business will have to relocate to the lowest environmentally regulatory cost havens is being disputed. Furthermore, there is evidence that companies and nations who pursue best practice in sustainable development have improved their productivity and competitive advantage. Stringent product standards and tough environmental rules and regulations are not a hindrance but provide an opportunity to innovate to improve products and services.

"...Detailed case studies of hundreds of the industries, based on dozens of countries, reveal that internationally competitive companies are not those with the cheapest inputs or the largest, but those with the capacity to improve and innovate continually. Competitive advantage, then, rests not on steady efficiency or on optimizing within fixed constraints, but on the capacity for innovation and improvement that shift the constraints..."

Karlson Hargroves et al, 2005

Organisations need to see beyond the short-term cost of dealing with tough standards and see the long-term benefits in terms of innovation. For example, the higher environmental standards imposed by Germany have resulted in more than 700,000 jobs in the economy and increased exports to other countries (in particular to countries that do not have such stringent controls). Furthermore, it creates more up-market jobs, such as in the knowledge industry, and adds value so that a premium can be charged for the goods and services

25. Avon calling!!

Re-inventing brands such as Avon - initially in the late 19th century Avon started selling fragrances through a network of representatives, rather than stores. In just 20 years around 10,000 women were selling 117 different products. By 1990s the concept of "ding dong" Avon lady and catalogue (first introduced in 1906) was not performing. Enter Andrea Jung who changed the company starting in 2000, ie

"...Jung's make-over strategy involved rethinking the entire organisation, from suppliers to the way products were distributed, ordered and delivered, product development time cycles and slashing costs. There needed to be new product lines, more glamorous, glossy advertising campaigns and definitely no more ding dong Avon calling catch phrases...... the original revitalisation plan was scheduled to take 3 years and Jung did it in 18 months..."

Emily Ross et al, 2004

This was done by introducing new products and expanding into new markets, such as China, ie as door-to-door sales in China were banned, Avon began selling in the beauty salons and then set up franchise shops with China Post East

26. Internet sales and cabin crew as sales staff

Changes to the airlines with the Internet and low-cost carrier model have resulted in airlines now getting the majority of their bookings through the Internet and ancillary revenue provides a great potential for airlines to grow their profits. The low-cost carrier model gives travelers choice, eg when flying on a night flight, the traveler may choose just to pay for their fare rather than pay for in-flight entertainment, meals, snacks, etc. Ryanair makes 13% of its revenue from ancillary items, such as movies, phone calls, snacks, meals, etc. Thus the challenge is to turn cabin crew into salespeople, ie get them motivated to sell. One way of doing this is to pay the crew on a commission basis for these ancillary sales

27. Magnetic resonance imaging (MRI) for the brain

Magnetic resonance imaging (MRI) was discovered in 1946 and its discoverers were awarded the Nobel prize. MRI was initially used on inert substances and man-made structures and it was not considered suitable for living biological tissue. It was not until 1971 that it was thought that MRI could be used on living biological tissues, such as the brain

MRI works on the principle that every part of the body is made up of atoms which resemble miniature magnets, each with a north and south pole.

"...if a part of the human body is put inside a scanning machine which contains an intense magnetic field, atoms in the tissues were lined up like magnets, with the north poles all facing in the same direction.......with a quick blast of radio-waves at the lined up atoms, they would all start to rotate. As they returned to their north-south orientation, the atoms themselves will need radio-waves and these can be picked up by the sensors in the every different tissue of the body, the atoms happen to rotate at different speeds, so each tissue can be singled out on the scanner and added to the overall picture to build the final image..."

Robert Winston, 2002

28. Prostitutes as workers

Smarajit Jana (a health care professional) started a project in India to reduce AIDS spreading via prostitutes to the general population. Regarding prostitutes as sex workers resulted in mindset changes by various stakeholders, ie

- Jana informed the prostitutes

"...I sell services and so do you..."

Smarajit Jana as quoted by Madhusree Mukerjee, 2006

- By seeing prostitutes as simply workers earning a living (like other workers), the self-worth of the sex workers increased. Furthermore, he organised a debate with intellectuals on morality, etc. As the women grew in confidence and become empowered, Jana was able to let the women take over the project completely

- with starvation a more immediate threat than AIDS (if a prostitute insisted on using a condom, the customer could go elsewhere), there was a need for collective action, ie a workers' collective.

"...When an individual sex worker deals with a client, she is weak. To change the power equation, she needs the support of other sex workers..."

Smarajit Jana as quoted by Madhusree Mukerjee, 2006

- he convinced the local brothel madams, local politicians, police, pimps, gangsters, etc of the financial benefits to them of the sex workers using condoms (see Po later on in this section)

29. Flying people

The financial turnaround of Air New Zealand (with Ralph Norris as CEO), which took the company from the verge of bankruptcy to becoming one of the strongest airlines in the world, involved a change in the mindset of the staff. The staff's perception changed from a business about flying planes to one of transporting people. With this change in mindset, customer complaints fell by 63% at a time when complaints about competitors in the airline industry were rising.

30. Growth of service industry

The conventional mindset around 30 years ago was that the economy could not be based on the service industry - manufacturing had to be the foundation. Very few envisaged search engine optimisers or web designers or executive coaches or nanotechnologists, etc that are driving our current economic performance.

31. Pay for free TV shows

Most people in the Hollywood and TV studios thought that people would not pay for TV shows that were free. They were very wrong!!!! Annual sales of TV shows on DVD has grown from nothing to in 1999 to $US 4 billion in 2005 in USA. Viewers can also buy TV shows on demand from cable and satellite operators; view them on the Internet on platforms as Warner's In2TV and carry them around on the iPod or Sony PlayStation Portable.

32. 80:20 rule is out

On the Internet, the 98% rule applies. The old 80:20 rule stated that 80 percent of sales came from 20 percent of your sales staff; 80 percent on your problems came from 20 percent of your staff, etc.. Internet and niche sales work on the 98 percent rule, ie virtually all of the products are in demand and available at some time and at some level.

"...the culture of music has been transformed in the last 10 years, from the blockbuster hit and music store to the iTunes. It has a completely fragmented audience, but a rich music world. The same with books: the notion of 'out of print' is out of style. You can get anything you want on Amazon..."

Chris Anderson as quoted by Sheridan Winn, 2006

As the Internet makes everything available to everyone at any time, the bottlenecks that determined traditional supply and demand are disappearing. This is sometimes called the economics of abundance.

33. 3D not 2D

In 1857 there was a public competition to design Manhattan's Central Park. One of the design requirements was that cross-town traffic be permitted without obstructing the pastoral feel of the Park. This was considered impossible by designers except Olmsted and Vaux. They imagined that the Park was a three dimensional space and sank 4 roads 2.5 metres below the Park's surface.

34. Post Offices are shops

In early 1990's Australian Post Office shops (focussed on handling mail - collection, processing and delivery - and associated matters) were regarded as a serious liability, ie losing around $A150 million per year. Then someone suggested "Let's not compromise, let's say they're shops!!!!!!" This was followed by "If they are shops, they had better sell something"!!!!!!! Now Post Offices are very profitable by being franchised and selling a great range of products including stationery, gifts, mobile phones, etc in addition to handling the mail.

35. Appealing to the seductress

By tapping into women's desire to be attractive, their need to be wanted, their fear of aging, salespeople are able to sell perfume for around $3,000 - after a production cost of around $3!

36. Treating doctors as sages

Sales reps from pharmaceutical firms need to persuade doctors to prescribe certain drugs. Doctors feel threatened as medicine has become a bureaucracy and because the Internet allows patients to access medical information. To "win" the doctors, the sale reps need to provide quality information to the doctors so that they can display greater insight to their patients, and need to reinforce the image that doctors save lives and are not just more bureaucrats.

37. Computers are an appliance for the home

Change one's understanding of a product's meaning can lead to a change in its design and identity. The iMac was wrapped in friendly, translucent colours and ovoid forms. It was declared to be an appliance for the home. The message contained in the design hastened a transformation in how the public understood the device.

38. Four-minute mile

Before 1954, it was thought to be humanly impossible to run a mile in under 4 minutes. This was supported by research published in many medical journals. Yet Roger Bannister challenged this and ran a mile in under 4 minutes; within 18 months of this event, more than 45 athletes had achieved the same; over the next 5 decades, 500 other athletes have achieved the same feat. This achievement was more due to mindset changes than any dramatically improved training techniques, ie after Bannister's run, more athletics believed that they could repeat his performance.

39. Investing in innovation when times tough

Traditionally when times are tough, organisations start cost-cutting. On the other hand, difficult economic environments require more innovation, not pulling back. In 1958, despite a slumping economy, American Express launched its American Express card. Many people thought that the card was a terrible idea, especially as it would cannibalize their traveller's cheque business. This was an impeccably logical argument - that could not have been more wrong!!!!!!!

40. Move over big motor bikes

In the mid 1950s, Honda was best known in Japan for its 50cc Super Cub; it was designed as a powerful but easy-to-handle motorcycle that could wind its way through crowded Japanese streets for use as a delivery vehicle. When Honda targeted the U.S. motorbike market in 1958, the market was dominated by large motorbikes used for constant, high-speed, long distance road travel. Honda's initial aim was to produce a low price, full-size motorbike that would tap into the most price sensitive customers in USA. Its engineers produced the larger machines which had some problems like leaking oil and blowing their clutches. These engineers' experience was based upon developing bikes for short stop-and-go to bursts in congested streets and they didn't understand the demands on the constant, high speed, long distance travel bike. Furthermore, Honda had limited finance for this venture and it was competing against well-financed and established brands like Harley, Triumphs, etc. Then Honda personnel in the USA started using 50cc Super Cub as their own transportation around Los Angeles: they were reliable, cheap to run but regarded as unmarketable in the USA. Surprisingly, the daily exposure of the Super Cub generated much interest from individuals and retailers (not motorbike distributors, but sporting goods shops). With the continued success of the Super Cub, Honda redirected its efforts to this new market segment ‐ off-highway motorbikes. These low-priced Super Cubs were not targeted at traditional bike riders but were instead used for fun.

41. Solution looking for a problem

- the computer was initially designed for military use. Its multiple uses, from replacing the type writer to complex modelling, and innovations developed around it including the Internet, were not expected or anticipated or predicted.

- the laser was initially designed to split light beams and thought to have no relevance elsewhere. No one predicted its use in micro surgery, such as repairing of the detached eye retinas, etc

42. News papers to news brand

According to Rupert Murdoch (2008), there is social and commercial value in delivering good news and information in a cheap and timely way. It is claimed that newspapers (in their current format) are now an endangered species. The method of delivery may change, ie via the Internet (including blogs), and this has the potential to increase the audience many times. The traditional sources of revenue, such as classifieds, are disappearing, and journalists are facing new competition from the alternative sources of information. Previously journalists and newspapers had a monopoly and took their audience for granted. The days of one-size-fits-all are no longer applicable, with the defining digital trend in content allowing greater search sophistication via the Internet. Currently you can customize your information flow by country, or organisations or subject, ie you can satisfy your unique interest and get content delivered in the most convenient way. The challenge is to use the newspaper brand while allowing readers to personalize the news for themselves and then delivering it in a way they want.

43. Turning traditional craft into mass production

In the 18th century Josiah Wedgwood decided to break away from the mindset of the traditional small craftsman enterprise. He was willing to organize his firm around a brand and invented the idea of appealing to the masses by first selling directly to the wealthy. Additionally, he sent free samples to around 1,000 wealthy Europeans; over 50% of them ordered more goods. Based on his success with wealthy clients, he then sold to the masses. His sales force worked on commission. He redesigned Wedgwood's factories to handle the demand and the technology of making mass-produced pottery, by including specialized assembly lines and time-clock systems, ie

"... he practically invented the idea of standardized quality control, of innovative design for utilitarian products (his cauliflower teapot was a sensation), and even of health insurance (of a sort) for his workforce...... Wedgwood understood...... that a new class of customer and new kind of distribution enabled a new kind of organisation to thrive. Wedgwood didn't hire potters or people who had been apprenticed with potters. Instead, he hired the untrained, and he trained them himself. He realized that his way was a new way, and that it was easier to teach someone than to unteach them first. The Wedgwood pottery sold for four times as much as that made by small potters in the same region of England - because he made it and marketed it differently...... taking control over every element of his product - from the way it was made to the way it was delivered to the stores that displayed it - Wedgwood created the environment he needed to thrive...... this virtuous cycle enabled him to die with $ 44 million in his estate..."

In summary, Josiah Wedgwood

"...- created new ways of glazing new goods and novel items that people seek out

- signed his work

- increased pricing by 400 percent

- established high quality standards

- built a bigger factory and put it near a canal

- trained non-potters to join his workforce, and designed innovative ways to manage them

- organized the factory to reflect a separation of labour

- opened showrooms in London and changed the stock weekly

- focused on mass production

- sold to the richest people in the world, but avoided taking custom work except for items for heads of state..."

Seth Godin, 2007

44. Redesigning pay-as-you-wash

Merloni Ellettrodomestic (European white goods manufacturer) redesigned its industry. The industry had low margins, stable market share and little room for competitors to differentiate. Traditionally to survive firms focused on cutting costs and improving production efficiencies. Merloni redesigned the model to pay-as-you-wash. Users pay a flat fee for a washing machine plus a yearly lease/service fee plus extra payment depending on usage. In addition to the leasing initiative, Merloni invested in service centers that handle calls about faulty appliances. Furthermore, they fitted some machines with a device that linked the machine via the Internet to service sites so that service centers could be informed of problems when they occur. The benefits to consumers are smaller initial cash outlays, maintenance becomes easier, no responsibility for machine disposal, etc. On the other hand, for the manufacturer they got increased margins, a new income stream, and opportunities for service and enhancements, etc. For society, the benefits were that the manufacturer had responsibility for disposal which encouraged recycling.

45. E-recruiting (including e-lancing and e-labour)

The Internet has added another tool for recruitment. Social media sites, such as Facebook, Linkedin, blogs, Twitter, etc, are used to target advertising by using keywords that might help identify people the organisation wants to hire. Furthermore, placing ads on web pages where people are most likely to see them, and then direct them to sophisticated Web sites with video presentations designed to appeal to them has proven effective. This has at least 3 advantages over traditional recruitment procedures, ie

i) speed, eg it took Adidas 10 days to fill a position that traditional methods had not filled after 6 months

ii) costs, eg traditionally it would cost thousands of dollars to recruit someone; e-recruiting costs only a couple of hundred dollars

iii) quality, eg these methods can attract "passive" candidates (people who are not actively looking for new position but could be interested in changing jobs) as well as candidates actively looking for new position. For example, Linkedin it has access to around 50 million candidates

"...Adidas has managed to get these efficiencies in an technology to identify potential recruits, beefing up its website, leveraging its links to sport and athletes, and creates its own in-house recruitment agencies..."

Fiona Smith, 2010b

Furthermore, many freelancers are using the Internet, via social network sites, to generate and find work. It has been estimated (The Economist, 2010a) that there are around 12 million full-time, home-based freelancers and independent contractors in the USA. Companies, such as Guru, Elance, oDesk, LiveOps, etc are providing the Internet connections. For example, LiveOps uses virtual call centers for over 20,000 homeworkers in the USA; eDesk has 247,000 freelancers registered with them. This is referred to as "e-lancing" and was started with firms in rich countries using professionals in low-wage countries but now includes more professionals from the rich countries

46. Property developing is retailing

Most property developers focus on building a property and filling the building with tenants. Westfield (a successful world-wide mall developer that started in Australia), however, does not think like a traditional property developer. Rather it thinks like a retailer dealing with customers: with the co-existence of food, fashion (high and low) and entertainment in the mall. They focus on customers and products by conducting detailed research.

47. Friends (TV sitcom)

Friends has been the dominant TV sitcom for 20+ years since it started in 1994.Yet based on a pilot run and market research, it was suggested that Friends would not be a successful TV show as it did not obey the conventional rules of comedy. Yet

"...between 1994 and its finale in 2004, Friends attracted audiences of between 20 and 29 m. in the USA. After its second season, it never left the Nielsen ratings top five. Later in its runs, when the world around it grew more threatening, Friends' appeal as a safe haven - a virtual Central Park - was so strong that its ratings increased 17% after September 11, 2001 attacks on New York City......the final episode of Friends drew nearly 52.5 m. viewers in the US, beaten only by the holy trinity of Seinfeld, Cheers and M*A*S*H as the most watched finale in American TV history..."

Andrew Harrison 2014

Sources: Edward deBono, 1993; Gary Hamel, 2000; Peter Drucker, 1999a & 2001; Narelle Hooper, 2002; Leon Gettler et al, 2002; Piers Dudgeon, 2001; John Kotter, 2003; Wayne Mansfield, 2003a&b; Hunter G Hoffman, 2004; Harry Osman, 2004d; Karlon Hargroves et al, 2005; Gio Braidotti, 2005; Peter Senge et al, 2005; Patrick Dawson, 2005; Mark Lythogoe, 2005; Brent Schlender, 2005; Emily Ross et al, 2004; Edward deBono, 2005; Steven Segal, 2005; James Hall, 2006; Madhusree Mukerjee, 2006; Janne Ryan, 2006; Helen Trinca, et al, 2006; Geoffrey Colvin, 2006b; Marc Gunther, 2006; David Osborne, 1993; Sheridan Winn, 2006a; Jeanne Liedtka, 2006; Helen Trinca, 2006b; Joanne Gray, 2006; Dianne Coute, 2006; Roberto Verganti, 2007; Martyn Newman, 2007; Anne Fisher, 2008; Clayton Christensen et al, 2003; Nassim Taleb, 2007; Rupert Murdoch, 2008; Seth Godin, 2007; James Carlopio, 2010; Fiona Smith, 2010b; Robert Harley, 2010; The Economist, 2010a;Tania de Jong et al, 2010; Ron Clarke, 1999; Ed Catmull, 2014; Andrew Harrison 2014)

Seeing the Same Thing Differently

Look at the diagram below: what do you see? A small cube in the bottom left-hand corner? Now turn the page slowly in a clockwise motion, keeping your eyes fixed on the diagram. As you are turning the diagram, a new shape appears. Keep turning. When the shape is upside down, many people find it has become another diagram. This is like seeing the same thing differently!!!

organisational development change management

"...this new concept challenges our assumptions..A gentle movement of the cube didn't change the image we have of it. The world changes, and we don't see it, and then all of a sudden we see the change in the full light of day..."

Luc de Brabandere, 2005

A number of things can be learnt about this little geometrical-metaphoric manipulation!!!!!

"...we see cubes when there ain't any! This drawing is two-dimensional (by definition), but it comes across as three-dimension

- even if the figure is the same, two different people will often see it differently.

- the transition from one way of seeing to another is brusque, there's a small shock.

- even when he or she knows all about them, the viewer cannot easily shift from one form to the other. We are not in total control of the way we see things..."

Luc de Brabandere, 2005

Some exercises to encourage seeing things differently, eg think of 4 things that can

- apply torque like a screw driver (answers: knife, coin, key & finger)

- fasten paper like a paper clip (answers: staple, pin, glue & hair clip)

- hold liquid like a cup (answers: saucer, coconut, kettle & bowl)

An example of this perception change is Bill Gates and the Internet. In the early 1990s, Microsoft was a successful company worth about $US 70 billion and employing around 20,000 people. The Internet was on the rise in importance as demonstrated by Nestcape in 1994. In 1995 Gates sensed the paradigm shift and changed the direction of Mircrosoft to focus on the Internet.

On the other hand, what can happen is people

"...began to believe that you could move from certainty to certainty to certainty. So they never developed a possibility system, hypothesis, speculation, imagination......we're collecting all the data, the computer analyses it, and tells us what to do. That's very dangerous unless we develop creativity that means 'OK, that's the data, let's look at it differently..."

Edward deBono as quoted by Lyndall Crisp, 2007

(sources: Luc de Brabandere, 2005; Lyndall Crisp, 2007)

Knowlege Management

"...the capacity to manage human intellect - and to transform intellectual output into a service or a group of services embodied in a product - is fast becoming the critical executive skill of this era..."

Tim Devinney in AFRBoss, 2001

Knowledge management is about

- embracing the challenge of radical innovation

- identifying barriers to innovation

- making a case for action

- stimulating business concept innovation

- discovering opportunities for radical innovation

As part of the ever-changing world, the importance of managing intangible assets, such as knowledge (including intellectual property) and innovation is being recognised as the key driver to future, long-term corporate growth. In fact, knowledge is fast becoming the prime factor of production, and as a result is becoming more important than land, labour and capital in the creation of wealth.

It should be noted that knowledge is different from all other kinds of resources. It constantly makes itself obsolete; with the result that today's advanced knowledge is tomorrow's ignorance. To manage this situation, both individuals and organisations are necessarily developing life-long learning processes. Knowledge is now subject to rapid and abrupt shifts; from a pharmaceutical emphasis to genetics in the health-care industry, and from PCs to the Internet in the computer industry. The implications of this are that the world economy will continue to be highly turbulent and highly competitive - prone to abrupt shifts as both the nature and the contents of relevant knowledge continually change.

It does not matter where knowledge comes from; the key to reaping a big return is to leverage that knowledge by replicating it throughout the organisation so that each unit is not learning in isolation and reinventing the wheel again and again. Furthermore, remember that knowledge management and innovation give several advantages

- patents, trade marks, copyrights, etc protect the organisation and give leverage into new markets (includingfavourable partnerships and licensing relationships, etc) and provide a competitive advantage. For example, the HBR stated that the value of royalties from patents, etc for IBM has increased from $US30 million in 1990 to around $US1 billion in 2000. This goes straight to the bottom line. These intangibles are additional ways of increasing shareholder value to the more traditional methods of increasing sales, creating new leading-edge product lines, or pursuing mergers and acquisition

- help increase productivity

- reduce costs

- help capture and share knowledge (IT) to solve problems

- keep staff motivated

Thus knowledge management encourages and helps the establishment and development of a culture of creative thinking and innovation throughout the organisation so that its activities are fully integrated into the mainstream. Furthermore, it encourages technology integration as part of research and development (R&D) into business development

Knowledge management and innovation requires looking outside both the organisation and industry. As Peter Drucker writes in HBR,

"...Currently around 90% of the traditional sources of information for an organisation are sourced from inside the organisation and/or the industry, yet around 50 % of the technology that affects an organisation and industry comes from outside..."

An example of outside influence is the impact of the computer industry on the banking industry, eg ATMs, Internet banking, etc.

Furthermore, to encourage knowledge management, after each activity/project is completed, it is essential to employ a strategy of asking some important questions of all participating stakeholders. The questions are

- how did we do it?

- what did we learn?

- how can we apply what we have learnt to next time?

Global organisations such as British Petroleum (BP) used this strategy to their competitive advantage when drilling for oil. For example, in 1995 it took 100 days to drill deep water wells. By using this technique and having all parties to a project involved, BP was able to reduce it to 42 days.

Managing information technology by computer networks using intranet as well as Internet facilities such as Web sites, has allowed people to work co-operatively and share knowledge quickly and easily regardless of time, distance and organisational boundaries. In many organisations this requires a new set of behaviours such as people being co-operative and open about what they know, and not possessive about information.

In the culture there needs to be explicit emphasis on

- adding value rather than operating on auto pilot

- quantum leaps rather than an incremental increase

- a holistic approach rather than piecemeal

- understanding a few key critical performance measures

- challenging the usual way of doing business

Sometimes the term organisational knowledge is used. The reality is that organisations are not knowledgeable. They may be data laden. People in the organisation hold the knowledge. Furthermore, organisations can ruin knowledge creating capabilities by:

- fearing that individuals will leave the organisation with valuable know-how that the organisation feels it owns

- failing to properly invest in individuals with a natural capacity to absorb knowledge

- not recognizing the importance of transferring knowledge to other parts of the organisation so that all employees can benefit

The value of knowledge is highly contextual and the way new knowledge is created varies considerably from organisation to organisation. One can think of generating knowledge by

- gathering more data (being more comprehensive)

- being more team-based in its usage (using more brains)

- being more creative with the application of the data/information/knowledge at your disposal (being smarter)

Creativity is the main driver of new knowledge creation and the generation of innovative outlets. Furthermore, knowledge management is more closely related to innovation management than IT

"...the impact of knowledge management systems on performance is almost wholly driven by the changes that it is has on the organisation's ability to innovate - either in better processes or better products and can manage the antecedents of knowledge creation - strong informal networks supported by effective formal databases, systems to encourage knowledge absorption, structure forums for the application as a transfer of learning - and you can measure the change brought about by innovative performance...."

Timothy Devinney, 2001

· Imagination is intrinsically linked with creativity and innovation. The gap - between what can be imagined, and what can be accomplished - has never been smaller. Today we are limited only by our imagination. Furthermore,in the age of revolution it is not knowledge that produces new wealth, but insight - insight into opportunities for discontinuous innovation. Furthermore, imagination is very important, if you want quantum leaps and not just continuous improvement.

"...Imagination is the preview of life's coming attractions..."

Albert Einstein as quoted in AFR Magazine, 2014a

What qualities are the most important for success?

"...You have to be an inventor and see the market place like nobody before you has seen it. You also have to be an athlete, because once you come up with the invention, you'll need to work your arse off to turn it into reality..."

Ruslan Kogan (Kogan Technologies ‐ A4300 m firm), 2014

"...The question isn't who is going to let me; it's who is going to stop me..."

Howard Roark as quoted by Ruslan Kogan, 2014

(sources: Gary Hamel, 2000; Timothy Devinney, 2001; Lyndall Crisp, 2007; Ruslan Kogan, 2014)


Creativity is doing things differently or doing different things, ie

"...creativity is simply seeing the world differently from everyone else..."

Carol Steiner as quoted by Harry Onsman, 2004a

"...without creativity there is only repetition and routine. Merely being competent is the kiss of death in business. Creative thinking can produce simplicity, which in turn can save business time and money......different ways of communicating, different marketing concepts, different products, these services - all need new thinking.....creativity which produces value..."

Edward deBono as quoted by Lyndall Crisp, 2007

"...what is creativity? It's that thing that helps us leap forward; it is a lateral spark; something you weren't expecting. Something that's fresh; that creates energy; that creates momentum..."

David Droga (Creative Chairman, Drogas) as quoted by Janne Ryan, 2008


"...creativity allows us to move from where we are today to where we would like to be tomorrow. We recognise creativity in our latest technological wonders, in each new item that miraculously appears, and wonder how we ever lived without it. But what should also be recognised is that strategic leaps account for only about 2 percent of our products. Steps changes provide about 18 percent, but 80 percent of our development occurs in continuous, incremental improvement. It is enhancing this 80 percent of activity that is critical in our advancement and where imagination and creativity play such a major role..."

Stephen Giugni, 2006

There are some views which assert that creative people are different from everyone else. Yet all humans with normal capacities are able to produce at least moderately creative work in some domain, some of the time.

Creativity is needed to solve people's problems, meet people's needs and to fulfil an opportunity to innovate. A mere 10% "new" can push an organisation to the head of its field.


Begins with you, ie need to look into yourself

Needs preparation, eg have an understanding of the field of expertise

Looks to satisfy customer desires, ie to be ahead of competitors

Involves learning from mistakes/failures

We tend to associate creativity with the arts and any expression of highly original thoughts such as Picasso in painting and William Faulkner in fiction. In business, originality is not enough. To be creative, an idea must also be appropriate, useful and actionable. The associations made between creativity and artistic originality often lead to confusion about the appropriate place of creativity in business organisations. For example, creativity is expected in marketing and R&D departments but not for accounting. Yet practices like activity-based accounting are innovative and have had a positive and profound effect on many businesses.

Generally, in any unit that involves systematic processes or legal regulations, or where managers hold a rather narrow view of the creative process, creativity is regarded as not having a place.

But in today's knowledge economy, creativity is more important that ever. Managers have to create an environment that encourages innovation and creativity. Despite good intentions, creativity gets killed much more often than it gets supported. Usually this killing is done by crushing employees' intrinsic motivation, ie the strong internal desire to do something based on interests and passions. Creativity-killing in some organisations can become widespread and systemic, owing to business practices and imperatives such as the pursuit of productivity, efficiency, co-ordination and control. Ideally, an environment which accommodates both attention to business imperatives and the nurturing of creativity can be established and sustained.

Research from Northwestern University (2015) has shown a connection between creative thinking and sensory distraction, ie leaky attention. The poorer a person's sensory gating, ie the less they are able to filter unnecessary stimulus from their brain, the higher their creativity scores, ie
"...This reduced sensory gating may indicate that a leaky sensory filter is a general neural processing characteristic related to real world creative achievement......that leaky attention may help people integrate ideas that are outside the focus of attention, leading to creative thinking..."
The Washington Post as quoted by AFR 2015
.A specific neural marker of sensory gating (P50) has events-related potential that provides a neuro-physiological response just 50 milliseconds after a stimulus
. Also, blue computer screens improve performance on creative tasks and moderate noise is more conducive to creativity than no noise or high noise environments

Conformity is the Enemy of Creativity

"...traditional organisational notions favored by management, such as teamwork, shared values and backing the company vision. All of these notions have strong overtones of conformity. Conforming employees make it easier for managers to control the corporate environment. If everyone is thinking the same way, pulling in the same direction, management is easy. In part, this managerial preference is driven by a fear of conflict..conflict, in the sense of opposition of ideas, is actually the basis of innovation.....conformity cannot encourage innovation or creativity......because people who are doing ' what one does' are not doing anything interesting, and so you get a certain amount of sameness..."

Carol Steiner as quoted by Harry Onsman, 2004a

"...The best creative people..either through vagueness or stubbornness, just pushed through, posing the questions that might sound dumb ‐ the kind that people are too afraid to ask. But these are the questions that easily change the way we think and look at things. Ignorance and naivety can be liberating..."

David Droga (Creative Chairman, Drogas) as quoted by Janne Ryan, 2008

Most people work in a conforming and conventional way so that their work is acceptable to their peers and colleagues, eg an accountant is encouraged to conform as an accountant and not to think for himself; similarly for a scientist and other professionals. All this works against being creative

(sources: Harry Onsman, 2004a; Stephen Giugni, 2006; Lyndall Crisp, 2007; Janne Ryan, 2008)

The 3 Components of Creativity

Managers need to understand that there are 3 parts to creativity (network of "possible wandering")

1. Expertise - this encompasses everything known to a person, irrespective of where it was gained (formal education, practical experience or interaction with others)

2. Creative-thinking skills - the ability to think flexibly and imaginatively; a cognitive style conducive to having new perspectives on problems

3. Motivation - driven by deep interest and involvement in the work, curiosity, enjoyment or a personal sense of challenge. Motivation is in 2 parts: intrinsic and extrinsic ‐ with the former being far more essential for creativity

Expertise and creative thinking are in an individual's mind, while motivation determines what people will actually do and is consequently most important to outcomes. Extrinsic motivation comes from outside, such as in response to a carrot-and-stick approach. The most common extrinsic motivation managers use is money, but this method is not guaranteed to enhance people's creativity.

On the other hand, passion and the interest fuelled by a person's internal desire to do something are far more powerful motivators. The work itself (its interest, satisfaction and challenge) becomes the motivating force and can be expressed as

organisational development change management

Managers can influence the level of expertise and creative thinking skills, but this strategy can be slow and costly. In order to influence outcomes, rewards and other incentives can be effectively used to heighten an employee's intrinsic motivation.

To achieve this, there are 6 levers to pull:

1. The amount of challenge given to employees, ie matching employees to the right assignment so that they are stretched but not overwhelmed

2. The degree of freedom granted regarding the process but not necessarily the ends (the goals). This can be mismanaged by changing the goals too frequently or goals not being clearly defined or paying mere lip service to autonomy and empowerment.

3. Provision of adequate resources, such as time, money and physical space. Time can be mismanaged with fake deadlines or impossibly tight ones. At times, the right physical space is given increased attention while the more important actions, such as matching people to the right assignments and granting freedom around work processes, are neglected

4. The design of work groups, ie must create mutually-supportive groups with a diversity of perspectives and backgrounds - different expertise and creative thinking styles so that ideas often combine and combust in exciting and useful ways. In addition to diversity, the group must share excitement over its goal, and individuals must display willingness to help team-mates through difficult periods and setbacks. Furthermore, every individual must recognise the unique knowledge and perspectives that other members bring to the table. Homogeneous teams may generate little conflict, but the under-stimulation resulting from too little diversity achieves less-than-optimum outcomes.

5. The level of supervisory encouragement, ie to sustain intrinsic motivation, supervisors have to actively encourage the creative environment and have open minds, despite the uncertainty of the possible gains from creativity. On the other hand, negative bias (such as failing to acknowledge innovative efforts or by greeting them with scepticism, an unnecessarily long drawn-out and bureaucratic, evaluation process, punishment of failures/mistakes and repression of open critical comment with its culture of fear), can kill creativity

6. The nature of organisational support, iean organisation, especially the senior management, must ensure that people are assigned correctly, that the appropriate systems or procedures are in place and that values encouraging creative efforts such as rewards and recognition (this is more than just financial) are explicitly reinforced. Information sharing and collaboration supports creativity. On the other hand, in-fighting, politicking and gossip hinder creativity.

Take challenge as an example: intrinsic motivation is high when employees feel challenged, but not overwhelmed, by their work. Thus the task of managers becomes matching people to the right assignments.

Consider freedom: intrinsic motivation and creativity soar when managers let people decide how to achieve goals, not what goals to achieve

Thinking creatively is how people approach problems and solutions, and incorporates their capacity to put existing ideas together in new combinations. This skill depends on the personality as well as how a person thinks and works.

Fostering creativity is in the hands of managers as they think about, design and establish the work environment. When creativity is stifled, an organisation loses a potent competitive weapon ‐ new ideas.

(source: Teresa Amalite, 1998)

In discussing creativity, there can be 3 different horizons

i) horizon 1 (creativity comes through incremental application of existing technology and is determined by market forces of the core business)

ii) horizon 2 (build and grow new businesses using strategic and entrepreneur creativity; creating something to fill a gap in the marketplace)

iii) horizon 3 (it is futuristic; looking for discontinuities in the frontiers of science and technology; creativity is pure innovation)

From an investment point of view, it is recommended that a ratio of 6:3:1 in dollars be invested across horizons 1, 2 and 3

(source: Joanna Maxwell, 2004)

The use of informal meeting areas as places of creativity, ie

- staff canteens

- corridor meetings

- informal social get-together

The importance of these informal meeting areas is often under-rated, especially as these informally-created interactions are, by their very nature, unpredictable and non-linear. There are no guarantees that any new, useful or relevant ideas will emerge. However, this unpredictable process is required for creativity to be realised, ie creativity all too often emerges at the edge. This dynamic zone oscillates between stifling order and complete freedom - here is where new ideas can emerge, ie in creative chaos.

Never underestimate the value of informal brainstorming that that can generate ideas through random conversations and relationships

Creative chaos

The idea of chaos is unthinkable for traditional managers who prefer control, power and efficiency. Linked with creative chaos is focus on desired outcomes and this juxtaposition allows freedom within limits (including real world priorities). At 3M, senior management must achieve 40% of their sales from products that are less than four years old. The focus is clear but the means to achieve it involves using creative chaos

"...How to introduce creative chaos:

- regularly scan unrelated industries, categories and businesses for new ideas

- shortcut the usual approval process by offering $10,000 to the owner of any new idea that meets predetermined criteria and can be implemented

- for every new situation, ask for 3 separate responses: business as usual, different and radical

- meaningfully engage with the young recently appointed and/or those who have just changed their roles/functions within the organisation

- challenge any practice, product or process more than three years old

- cut by half time allowed to test a product

- task your advertising agency for 5 new product ideas every quarter

- place completely different departments together, such as marketing and finance..."

Ken Hudson, 2001

Need to be careful of the "illusion of creativity", ie this occurs when an employee takes the view that his/ideas are more important in the corporate brief. This is the type of person who says

"...I do what I do and if people don't like it they can basically get stuffed..."

Joanna Maxwell, 2004

It is better to work from the marketplace backwards (reverse creativity), ie find a way of creatively handling needs


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