Point: To successfully apply another company’s best practices, select a company that matches your organization on essential dimensions.

Story: RailTex Service Company (now RailAmerica) was experiencing fast growth and wanted to know: “How have other companies handled fast growth?”  Could lessons learned by other companies be applied to our organization?

Railtex was already at the leading edge of railroad industry, so limiting themselves to learning from other railroad companies would be too restrictive. So how did Railtex find suitable companies in other industries to learn from?  Railtex first listed the features of its situation and then identified companies that matched those features.  That way, the lessons learned would be more likely to apply to Railtex as well. Railtex listed the features:

• growth by acquisitions
• independent managers run each line business
• incentive-based compensation
• a team concept
• senior executives at a remote location.

Bob Lende, Railtex’s Vice President of Finance at the time, found that Luby’s Cafeterias paralleled Railtex on all the listed features.  Luby’s had 100 cafeterias and was adding one a month.  Railtex expected such growth as well.  Railtex contacted Luby’s executives, who were proud to talk about how they handled their growth.  The lessons were applicable to Railtex because Railtex found a match with Luby’s in size, type of growth, and management style.  Both were growing by adding geographic locations in a franchise-type way.

Action:

• Decide what it is that you want to learn.  For example, do you want to improve a process?
• Choose a learning partner.  You don’t have to limit yourself to other companies in your industry.  Rather, choose companies that have succeeded in accomplishing what you want to accomplish and look for company features that match your company.  Like Railtex matched Luby’s Cafeterias, look for firms that match your company on features like size, budget and culture.  The more features that match, the easier it will be for you to adapt the partner’s lessons to your situation.
• Decide what you can offer the partner in return. What does your company do well that you can teach others?
• Go with a goal. If you will be visiting another company, go there with a goal in mind. A goal will help you focus your observations.
• Share your findings throughout your company. By reporting what you have learned, you’ll not only be spreading the knowledge throughout the company, but you’ll also be clarifying and defining the key learnings for yourself.

Point: A collectively-motivated group of peers can develop innovations in a distributed online environment.

Story: When Hernando Barragán created a nontechie-friendly microcontroller board for artists, designers, and architects in 2004, his thesis adviser, Massimo Banzi, liked the idea.  But Banzi wanted something simpler and cheaper for use in design class projects at the Interaction Design Institute Ivrea in Italy.  In particular, Banzi wanted a low cost, an integrated software environment, programmability via an everyday USB port, and a project supported by a community.

So Massimo Banzi, David Cuartielles, Dave Mellis, Gianluca Martino and Nicholas Zambetti created Arduino, an easy-make, easy-to-use circuit board about the size of a business card.  Anyone can use the device to create all manner of computer-controlled devices such as prototypes of products, pieces of art, or just fun hobbyist contraptions.  The team’s device was about 1/3 the price of the predecessor device and 1/3 the price of commercial products.  Best if all, the group released Arduino under Creative Commons Attribution-ShareAlike licensing, which means anyone can copy the Arduino and make the circuit board without payment or permission from the Arduino group.

The Arduino project uses open source methods to develop its hardware and software. Open source is a type of connected innovation based on the collective contribution of peer innovators to a project or product.  Open source allows free access to the internal design specification of the product such that anyone in the world can modify the design to correct a problem, improve performance, or add a new feature.  With this openness comes a cultural norm that if someone does improve the design, then they should share that improvement with the community for inclusion in the public version of the design.  Through this open process, Arduino now has 12 different models and 5 supplementary function boards.

Arduino, like other open source projects, relies heavily on connective technologies to coordinate its loose global team of project participants.  Email lists, online wikis, discussion forums, and content management systems help the project participants maintain the core product as well as developing new ideas that later become incorporated in the main products.  Arduino uses Google Code to host the project to provide a central connection point for anyone who wants the software.  People can report defects or suggest enhancements. Google’s tools help the project participants track the status, priority, and milestones of the idea.  Other tools aid collaborative problem solving.  The main Arduino discussion forum has nearly 70 thousand members and over 700 thousand posts on some 90 thousand topics.

Action:

• Determine if there’s some technology that you (and others) need more access or control over than is permitted by commercial suppliers with proprietary products
• Start an open source project to create and share the technology
• Use connection technologies to link to distant contributors and coordinate activities
• Pool innovation from across the technical and user community

Point: Collaboration between doctors, patients, designers and lab technicians brings healthcare delivery breakthroughs.

Story: The inspiring origins of the Mayo Clinic illustrate the timelessness of collaborative innovation. Back in the 1880s, two brothers, Will and Charles Mayo, founded the clinic with their father, Dr. William Worrall Mayo, and introduced the concept of a group practice.  The Mayos sought medical breakthroughs by bringing together doctors, laboratory experts, and business people. As the younger Will Mayo said, “In order that the sick may have the benefit of advancing knowledge, a union of forces is necessary.”

Today, we have the fruits of many medical breakthroughs but need better ways to deliver the breakthroughs in efficient and effective ways.   Many chronic diseases, like diabetes, can be treated but depend on more than just a one-shot procedure in a doctor’s office or hospital.  For these conditions, healthcare delivery requires education and engagement between doctors and patients.  The quest for new breakthroughs in healthcare delivery calls for a new round of collaborative innovation, embodied by the Mayo Clinic’s SPARC unit.

The Mayo Clinic uses SPARC to develop new services for patients.  SPARC stands for See, Plan, Act, Refine, Communicate.  Mayo believes in a fast prototyping approach: a crossfunctional team of doctors, industrial designers, patient education experts, facilities people and financial analysts work together to create new ideas and test them in the “Hub.” The collaboration includes some of the usual healthcare and research leaders, like Blue Cross Blue Shield of Minnesota, University of Minnesota, MIT, Yale, and GE Healthcare.  But it also attracts collaborators from industry, such as IDEO, Best Buy, Steelcase, Microsoft, and Cisco.

The Hub creates reconfigurable prototypes of patient check-in counters and examination rooms. The team that develops a new service can observe the prototypes in action through glass and via video.  “We take research out of the laboratory and translate it in a very quick and meaningful way right to the patient’s bedside,” said Dr. Glen Forbes, CEO of Mayo’s Rochester, MN campus. “That takes a lot of collaboration, because you’re crossing cultures and you’re often times crossing a lot of internal organization structures and silos.”

Most crucially, the Mayo Clinic engages patients to accelerate innovation.  “Our patients have a long history of participating in our research and education endeavors,” says Barbara Spurrier, Administrative Director, Mayo Clinic Center for Innovation.  The Mayo uses ethnographic techniques to analyze the quality of doctor-patient interactions, survey patients for their impressions, and talk to patient’s families.  Human-centered design thinking ensures that the innovations aren’t just technically correct, they deliver higher quality of life for patients.

Action:

• Find a gap between technology and society, such as the gap between the capabilities of a technology (e.g., a medical treatment) and the delivery of that technology (e.g., a patient’s compliance)
• Recruit collaborators from both the technology side and the people side to bridge the gap
• Create tangible and testable examples of innovations through visualization, modeling and rapid prototyping
• Use both hard science and soft science methods to gain both objective and subjective feedback for further innovations

For more information:

Mayo Clinic

Mayo Clinic Center for Innovation Partnerships

Leonard Berry and Kent Seltman, Management Lessons from Mayo Clinic: Inside One of the World’s Most Admired Service Organizations, 2008

Evan Rosen, The Culture of Collaboration: Maximizing the Time, Talent and Tools to Create Value in the Global Economy, 2009

Glenn S. Forbes, M.D.

Mayo Clinic and University of Minnesota partnership