Point: Behind-the-scenes innovation makes visible innovation shine

Story: I saw the premiere of KOOZA in Denver last week. Actually, it was my second time seeing KOOZA (the first was in Boston), and it was even better the second time.

The first time, I was mesmerized by the overt innovations in the show, like the “Wheel of Death.” Imagine two connected hamster-wheels, each of which spin while both together revolve vertically as well. Suspended high above the stage, the performers run, dive and somersault inside the wheels. And just when it looks like the act couldn’t get any more thrilling, the performers switch to running on the outside of the wheel.

My second time at KOOZA, I sat in the second row, so I had a closer look at the costumes. Even from the very last row (where I sat the first time), I remember the dazzling shine of the juggler’s suit. The second time, I had a chance to see the intricacy of all the costumes, which led me to wonder about the R&D that must go into them. The costumes hug tight body lines yet flex with all the contortions the performers make.

How does Cirque Du Soleil create these amazing costumes? First, Cirque hires talent: specialists in textile design, lace-making, shoemaking, wig-making, patternmaking, costume-making and millinery all work together to combine their knowledge.

Second, they actively seek out new materials which can be used. A “technological watch team” tracks global advances in adhesives, batteries and miniature lights to see how they could be incorporated into costumes. The team looks beyond boundaries of standard textiles to encompass fields such as avionics, plumbing, water sports and even dentistry for components that achieve the imagined task.

Third, the artisans of Cirque Du Soleil’s Costume workshop custom-make all the costumes, dyeing the colors in-house or painting costumes directly. They mold each individual hat on a plaster model of the artist’s head for a perfect fit. They consider comfort during these very athletic shows: the wig-making team, for example, builds wigs one hair at a time to achieve optimal ventilation. The attention to detail is staggering: the Bungee costumes used in Cirque’s Mystre each have over 2,000 hand-glued sequins. The juggler’s suit in KOOZA consists entirely of mirrored squares, like a disco ball.

Whether visible or hidden, Cirque du Soleil innovations shine.

Action:
* Hire specialists in multiple related disciplines to work as a creative team
* Explore beyond the expected. Cirque’s costume team doesn’t just use fabrics but expands into composite materials such as silicone, latex, plastics, foams and urethane
* Let team members be hands-on to devise ways to make an innovation work.

Further information:

If you’re in Denver, take advantage of seeing KOOZA yourself. It plays through Sept 27, with tickets available here. The show then moves to Santa Monica, CA in October and Irvine, CA in January. Info on future cities is here.

Point: Inventing new management techniques offers big paybacks.

Story: What’s more valuable than a new product or service innovation?  An innovation in a management technique, said business strategy expert Gary Hamel at the Spigit Innovation Summit last week. Innovations in management techniques have far-reaching impact.

Consider Thomas Edison. He’s credited with 1093 patents, but one underlying invention is what made such a multitude of patents possible: the invention of the corporate R&D lab. Edison was the first to bring management discipline to research & development to enable a more powerful method of invention than the lone inventor of the past. Edison’s 1093 patents had less to do with technological genius and more to do with management genius: creating and managing an R&D lab that could efficiently and effectively crank out new inventions.

So, what steps can you take to innovate the management of innovation? Management is the effective control of resources to execute tasks that achieve goals. What, then, does effective management of innovation look like? Hamel talked about the need for a combination of freedom and discipline: the freedom to come up with ideas but also the discipline to find the best ideas, refine them, and channel them into something that creates value for the firm. He posed it as a paradox, which is always a clue to generative potential.

As you think about improving the management of innovation, think about the recent inventions that you can draw on. For example, in my previous post, I wrote about how social media tools support innovation processes. These tools let you invite ideas from across the whole organization and provide a way to refine, track and vote on those ideas. Other advancements, like open sourcing and open innovation (see earlier post), help you tap into almost-free resources. Furthermore, widespread adoption of smartphones changes the fundamental equation of management in terms of reach and timeliness. All these technologies support new approaches to management, especially the management of innovation.

Action

• Take a step back from inventing and innovation to think about how to improve the management of innovation
• Ask: how can we generate new ideas more effectively with available resources? (freedom)
• Ask: how can we develop and validate new ideas more effectively with available resources? (discipline)
• Create coherent processes that balance resources between freedom and discipline

Further information:

Gary Hamel’s book, The Future of Management and his blog

I enjoyed hearing Gary speak and having the opportunity to ask him questions. If you’d like to do the same, consider joining me at the World Business Forum October 6-7, 2009 in New York City. Gary will be one of the speakers, along with former president Bill Clinton, Jack Welch, George Lucas, Paul Krugman and others. You can see the full agenda here.

Point: Use friction to your advantage

Story: McGuckin Hardware is a family-owned store in Boulder, Colorado, long known to any do-it-yourselfer as the place to go for supplies. The store has knowledgeable, friendly staff, many of whom have worked at the store for years over its 54-year history.

A few years ago, Home Depot opened a store in Boulder, with twice the space, offering lower prices. Can McGuckin’s survive against giant Home Depot? Or will it become another mom-&-pop store shuttered by behemoth retailers with economies of scale in supply chain and large marketing budgets?

According to recent research by Wharton’s Olivier Chatain INSEAD’s Peter Zemsky, McGuckins has a good shot at success due to a concept that Chatain and Zemsky call “friction.” As they define it, a friction is any force that makes it difficult for buyers and sellers to connect. For example, a poor location is a friction if it makes it harder for customers to get to the store. A complex website or a confusing store layout is a friction if it’s hard for customers to find the products they want to buy.

Smaller companies can out-compete giants by exploiting frictions. For example, McGuckin’s can use its loyal, knowledgeable staff to help customers quickly find what they need or give them sound advice if they’re embarking on a new project or product purchase. Long-time loyal employees are more likely to go the extra mile to help a customer. McGuckin’s loyal staff also know the local area, so they know which paints withstand Colorado’s intense sun and which garden plants thrive in the local climate. McGuckin’s local knowledge reduces its distance to its customers, which reduces friction.

Action:

• Document the time, costs, knowledge, hassles that customers face in finding your business, buying from you, or using your products
• Compare the frictions in your business or products with those of your competitors
• Adjust or redesign your business to minimize your friction
• Emphasize your low friction in your marketing and advertising

For more information:

Olivier Chatain and Peter Zemsky, Value Creation and Value Capture with Frictions

How a Little ‘Friction’ Can Change a Competitive Landscape

McGuckin Hardware