Tweet

Innovation Through Accidents and "Controlled Chaos"

Guest post by: Jim Clemmer

Article Overview: Mark Twain, once said, "name the greatest of all inventors. Accident." He was right. Most innovations and breakthroughs come from mistakes, serendipity, false starts, set backs, and misapplications. Many innovations were unplanned and unexpected.

Innovation Through Accidents and "Controlled Chaos"

"We need a new way of thinking about our problems and our future. My suggestion is the management of paradox, an idea which is itself a paradox, in that paradox can only be 'managed' in the sense of coping with. Manage always did mean 'coping with' until we purloined the word to mean planning and control." - Charles Handy, The Age of Paradox Mark Twain, once said, "name the greatest of all inventors. Accident." He was right. Most innovations and breakthroughs come from mistakes, serendipity, false starts, set backs, and misapplications. Many innovations were unplanned and unexpected.

At their outset, many were unrecognized and unwanted. Innovations, breakthroughs, and major changes often come from unpredictable chaotic, and random events. That's why the accuracy record of economists and planners' confident and logical-sounding projections and predictions is so abysmal. It's amazing how the same people who laugh at fortune tellers often take these elaborate plans and projections seriously.

Yet when innovative opportunities knock, many managers are in their backyard looking for four-leaf clovers. But if someone who can't count finds a four-leaf clover, how lucky is he or she? The editor and author, Elbert Hubbard, observed, "a failure is someone who has blundered, but is not able to cash in the experience." Most managers fail to cash in on unexpected opportunities.

There seem to be two core reasons for that. First, they don't recognize the failure, set back, chance event, unexpected offer, or new wrinkle as a potential innovation they could cash in. That's often because they haven't progressed to the empathic level of customer and partner listening and understanding. They take the market or customers at face value. They're only looking at today's data or current performance gaps. These near-sighted managers can't see beyond what is to what could be.

A second reason many managers fail to cash in on unexpected opportunities is because there's no effective process for doing so. If it's not in the official development plans or budgets the unhatched, potential innovation has no place to incubate, break out, and grow. That brings us to the innovation paradox: Random, chaotic, and unpredictable innovations need a stable management system and process to nurture the growth and development of "lucky breaks."

As a long time student and practitioner of innovation, I still find James Brian Quinn's classic Harvard Business Review article one of the most useful on the topic. The title of the article says it all: "Managing Innovation: Controlled Chaos." It's a perfect description of the management-leadership balance found in highly innovative teams and organizations. Controlled chaos aptly describes the unstable and stable, unplanned and planned process of successful innovation.

Strategic Opportunism and Organizational Learning

"The universe is full of magical things patiently waiting for our wits to grow sharper." - Eden Phillpotts, early 20th century English novelist

In his article on "Crafting Strategy," Henry Mintzberg provides a good insight to how strategies and innovative actions evolve and compliment each other in top-performing organizations: "Out in the field, a salesman visits a customer. The product isn't quite right, and together they work out some modifications. The salesman returns to his company and puts the changes through; after two or three more rounds, they finally get it right. A new product emerges, which eventually opens up a new market. The company has changed strategic course."

But in most organizations that salesman would be told to get back out and "do his job" by selling the customer the original product or some high priced add-on or support service. If he did make modifications, he'd be shot for not following the standardized process. In other cases, he'd be told to submit a Product Modification Input Solicitation form sending copies to product development, strategic planning, and three other committees to review. His regional manager would need a copy attached to his Call Report explaining where, when, who, why, and how he was spending each day of his time.

Successful strategies and innovations that evolve and cash in on unexpected problems or opportunities are part of a dynamic, organization learning process. Experiences, expertise, ideas, market and customer shifts, feedback, input and the like shape the emerging strategies and point the way to innovation pathways.

Related Articles
  TURNING CHAOS INTO ORDER - Strong Business Credit
  Living on The Edge of Chaos...
  The Chaos Theory - running your life on empty
  Controlling Chaos During Expansion
  4 Ways We Kill Innovation
  E-Prescribing For Controlled Substances Is Finally Here
  TIDE Innovation Series-Self Innovation
  100 Ways to Succeed #93
  Sales Training – Top Salespeople Gifts for Managing Chaos
  Lick-worthy!
  It's Not the Size that Counts
  The Tale of the Toothache
  Innovation and Entrepreneurship
  Accident Insurance
  When to Develop Custom Software or Websites: Hire's Innovation test
  But We CAN'T
  Car Insurance - Bodily Injury Liability
  Innovation is simple!
  The Dos and Don’ts of Innovation
  How to Add Innovation to Your Business

Article Tags: innovation, leadership
Referred by: http://www.searchengineworkshops.com



Related Forum Posts
Re: LEADERS - Nice post, i like the Doers and the listeners comments from my handbook 8.5 HOW MUCH DO YOU KNOW ABOUT LEADERSHIP? Planning Problem Solving Vision Innovation Leadership Emotional Intelligence Delegation Communication Self-Development Relationship Building Commercial Financial skills Personal Energy Ethics Transparency Even there I see that we are missing "PASSION"
Cash Comes from Creativity - These days, income from your 9 to 5 job can only get you so far. Gas is gold and it seems all are bemoaning the effects of economic recession. The question foremost on everyone’s mind is this: how on earth can we survive this financial crisis? Before, money-making is defined as having enough capital to start a business --- that or you make sure you are employed by the richest and most benevolent boss on earth! Those days are over though--- you don’t always have to rely on savings/ capital or the generosity of other people to have sustainable income. All you need is yourself---and your ideas! That’s right. The new model for business is innovation: the ability to successfully exploit great ideas. Innovation brings income; creativity brings cash. We live in a world where almost every good or service is readily available. If you search a product on the internet for example, say laundry detergent, you are likely to come up with several hundreds of brands and variations of the same product. And with consumers nowadays being so fickle from the many choices available to them, your market can change their minds about their preferences in a matter of seconds. If you want to survive in the global marketplace you need to be able to do two things: stand out and think on your feet. Ask yourself: what can you offer the world that others do not? What would make things easier, more convenient or more sensational for today’s busy people? What are your simple solutions to everyday problems that deserve to be replicated? What is an outrageous idea you have that may actually work? Your multi-million money-making opportunity may be lying in quirky little things you take for granted. That effective hangover-remedy you concocted? May just be an affordable alternative to what’s on the shelves these days. That extra-special way you pack your kids’ lunches? May be taught via a webinar alongside with your other Martha Stewart-ish ways. Just look closely at what makes you unique and effective---and think sales. That’s money from your ideas.
Young Entrepreneur Organization - All You Need To Know - The Young Entrepreneur Organization (YEO) is a global community of entrepreneurs. This non-profit organization aims to make its members successful in their business through networking and training programs. This article tells you all you need to know about the Young Entrepreneur Organization, and the opportunities it makes available to young entrepreneurs from across the world. Young Entrepreneur Organization: Facts. 1) The Young Entrepreneur Organization has 5,000 members in 35 countries across the world. 2) The organization was founded in 1987. Since then, it has helped many aspiring entrepreneurs with training facilities and getting in touch with the right people. 3) The average age of the members of Young Entrepreneur Organization is 34 years. 4) In order to be eligible for the membership of Young Entrepreneur Organization, you need to be under the age of 40; and be the founder or partner in a business that has annual sales of more than $1 million. World Entrepreneurs Organization: A part of the Young Entrepreneur Organization, the World Entrepreneur Organization and takes the message of Young Entrepreneur Organization to many additional places around the world. This organization is especially active in the area of education and training for entrepreneurs. Young Entrepreneur Organization: Objectives. 1) To foster entrepreneurship. 2) To support Young Entrepreneur Organization members by providing them the chance to network and grow. 3) To provide resources to its members so that they can benefit the economy through innovative business ideas. 4) According to Young Entrepreneur Organization, you get to share your story with those who have had similar experiences, and thus gain insight into the best principles of entrepreneurship. Young Entrepreneur Organization: Facilities. At the Young Entrepreneur Organization, you get to meet and share views with like-minded people and fellow entrepreneurs. In order to facilitate a free exchange of ideas and growth for its member, the Young Entrepreneur Organization provides the following facilities to members. 1) Forum: Join the forum of the Young Entrepreneur Organization and start networking with entrepreneurs from across the world. Each forum group has 12 members who come together regularly to share their experiences and discuss issues related to entrepreneurship. 2) Mentor: In conjunction with the World Presidents’ Organization, the Young Entrepreneur Organization guides and counsels young entrepreneurs through a mentor program by the best business leaders. 3) Social Innovation: The Social Innovators Program involves Young Entrepreneur Organization member who wish to do something for about social issues. It helps members become socially aware citizens and gives them the opportunity to do something for their community. 4) Marketplace: The marketplace allows members to post business offers and receive replies from other members. These are just some of the facilities you will get if you become part of the Young Entrepreneur Organization. Others, like meeting prospective clients through trade shows, and special tools to network and meet with the right people are also part of the YEO facilities.
the BDC - Hi Renee, the BDC is a great lender to many Canadian businesses. I've heard many horror stories from businesses that have had problems with the BDC, but I think it all depends on which account manager you deal with (that's the case with most lenders). Anyways, I have a great relationship with the BDC Toronto office, and was successful earlier this year in getting two service based companies loans under the BDC Innovation financing program ($100,000 and $150,000, both for marketing and growth initiatives). Here's an article I wrote about the BDC late last year for an Accounting Firm's newsletter: The Business Development Bank of Canada is a financial institution belonging to the Government of Canada, with the mandate: “to encourage innovation and stimulate the growth of small and medium-size Canadian companies.” The BDC usually looks for companies with a sound management team that possess solid growth potential. The BDC can provide working capital solutions to complement traditional bank financing. The BDC’s lending practices are somewhat different from the traditional chartered banks. With the BDC, borrowers receive a guaranteed term, meaning that financing cannot be recalled without due cause. As opposed to the chartered banks, where facilities are typically demand loans and can be recalled at any time. The BDC has very flexible repayment terms, including deferring principal payments, amortizing loans for up to an 8 year term, or offering seasonal and/or progressive payment options. This allows businesses to structure their cash flow accordingly. The BDC is willing to lend to companies that are more leveraged than traditional banks would consider. As well the BDC is willing to finance higher loan-to-value ratios than the chartered banks max out on. The BDC also offers subordinated debt, where they will postpone their claim to a chartered bank. Sub-debt can be very advantageous to many companies, because the BDC ties the repayment terms to the company’s cash flow projections. The pricing model can be setup as normal interest payments, royalties on sales, bonus interest based on milestones, warrants or some combination of these items. The BDC lends sub-debt to businesses based on historical cash flow, management and growth potential. The innovation financing program provides small businesses with funds to carry out marketing and/or growth plans, increase inventory, and/or develop new products. The BDC funds all types of businesses including start-ups, however will not fund any business that earns 50% or more of their profits from alcohol sales or gambling. The cost of borrowing from the BDC is generally higher than the chartered banks. The BDC’s base rate generally starts at two points above regular bank prime, and then the risk premium is applied to these rates based on each project's potential and the amount of risk involved. The BDC may not be ideal for all businesses, but as an alternative and/or complement to traditional bank financing, the BDC could be a very attractive solution.
Erica Ehm profile, Ladies Who Launch - Meet Erica Ehm Interview Meet Erica Ehm in Toronto at Ladies Who Launch LIVE on September 29. Erica Ehm rocks. And she does it with the lights on. At least, she used to. One of Canada's most recognized media personalities, Erica was barely in her 20s when she became the first female video jockey on Canada's MuchMusic cable TV station. Erica went on to launch a multi-media career that has included television, radio, film, theater, journalism, songwriting, and music publishing. The birth of her son, Joshua, however, changed her pace and direction on a dime. As a new mother, she found herself confused, afraid, isolated and depressed, and she wasn't alone. Yummy Mummy Club was launched to create an online community for women with "kids, guilt and no time for themselves." Cheeky and playful, it speaks to "finding the impossible balance between the single sexpot she used to be, the woman she's become, the professional she works hard to be, the wife she aspires to be and the mother she has to be." What I learned from Erica: the key to success is to dream. "To make your dream come true, you first have to have a dream." And,"You have to be very specific as to what you're trying to achieve. Go at it, day in and day out. Meet people. Network. Use others' expertise to your mutual benefit. Find the 'frenemies' around you. And, be prepared for more work than you ever thought possible." Birth of a Video Jockey "I always wanted to be in music and acting. They were my passion, and, as a VJ, I could combine the two. "When I was 16, I worked at a local radio station. My next jobs were at larger radio and TV stations. They saw that I was passionate and driven. I was able to make a demo tape and I basically thrust my talent on MuchMusic. "I also ran the school yearbook, wrote a student newspaper column and did my college yearbook. A pattern emerged that I didn't notice. It was that I've always been a spokesperson for my generation." School of Hard Knocks "I went to the school of hard knocks. I learned on the job. I had no formal training, script or director and I was on the air live for four hours every day. I survived and flourished." Fearless Good Girl "I learned to be fearless in front of an audience and camera. "I was creating my own persona and messaging from the time I was in my early 20s on live national TV. This forced me to examine my priorities and what kind of message I wanted to send. "I positioned myself as a good girl, an inspiration and a role model, as opposed to the party animal rock and roller. I used the platform to spread inspiration to young people and women. No one ever wrote a script for me. It all came from my heart." Ups and Downs of Celebrity "I was somewhat of an introvert and initially not comfortable with people. I just wanted to interview rock stars and understand their creative abilities. I didn't think about and wasn't prepared for celebrity. "It did allow me the opportunity to get my message out. I learned how to use the media for my own ways and how to navigate an interview." Shock of Motherhood "I was totally unprepared for the psychological, emotional and physical changes when I had my son, Josh. I did all the research, but it hit me over the head like a hammer. I was in a fog and totally depressed and terrified." Dirty Little Secrets "I wondered if anyone else was having such a terrible time. Out at parks and places, I started to talk to other mothers and tell them my experiences. "They'd say, 'Me, too.' I realized it was a dirty little secret that no one is sharing because they're too ashamed that they're not the perfect mother. "I thought, there has to be some way to talk to moms and tell them they're not alone, that we're all going through same thing and it's OK." Yummy Mummy Club "I wanted to create a place on the internet to share and celebrate our lives as mothers. The idea was to stop talking to moms like they're just moms. "We are women first. Part of the discussion will be about motherhood, but we are also lovers, girlfriends, athletes and so much more. A mother is not just a caretaker of children. So many of us forget that when we have a child and start to lose our identity. Definition of a Yummy Mummy "It means different things to different people. She's an inspired multi-tasking mom who feels good about herself and takes good care of herself. She's a great role model for her friends, kids and family." Hooked up With a Delicious Daddy "A Delicious Daddy is a father who is connected to his family on a domestic level. He doesn't just go to work, come home and say, 'Honey, where's supper?' He's connected on an emotional and physical level. Imperfect: The New Perfect "Moms need to lose the guilt and fear. It's all a state of mind. It's important to keep the idea of 'happy mummy, happy family' in perspective. Sometimes a mom has to take care of herself and put her needs first. Refreshed and inspired, she'll be able to be there for her kids in a better way." Prepare For Chaos "For all the talk about balance, really there is no balance. As soon as you have it, something goes out of whack. Be prepared for chaos." Turning Point "My business model has been based on my own intuition. I built my website by hand myself on intuition. Its message and feel reflected my strong vision. I was a one-woman operation until recently. "Now I've hit a plateau. I'm still doing most of the hands-on, but now someone does the site for me. I hired a mom-preneur of Craigslist. I've hired a firm to handle the invoicing and I have virtual assistants. My sister in law is the 'prize queen' and she contacts our contest winners. "I love the transition. I'm very careful about who I'm asking to join my team. Everyone has exceeded my expectations. The secret is, hire moms. They know how to multi-task, they take great pride in their work and they know about self-employment. Moms are the best untapped market." Yummy Future "YummyFriends is my new social networking site for women and moms to meet and support each other. It's a place to share sexy secrets, fave books and cool questions. "My biggest initiative to date is a user-generated contest to find Canada's Yummiest Mummy. It's a 12-week contest beginning over Labor Day. Thousands of videos will be uploaded and there will be prizes for winners, voters, and people who forward news of the contest. It's a huge undertaking with a cheeky, playful vibe." Yummy Last Words 'The only way you'll succeed is to put work and time in. It can't be all about money because then you'll start compromising left, right and center. You have to be consistent about your dream. Have the attitude, 'If you build it, they will come.' "Starting out in the spotlight so young, I learned that the key to success is to be fearless. Don't be afraid to ask, to take chances and to risk being turned down. Roll with the punches and get back up."


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Work Place Counselling

Providing Feedback

Ten Ways to Make Blogging Work for Your Business

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.