Usually, when a company finds that a competitor or Startup has found an innovative way of delighting their customers, their reaction is not to jump for joy about how they can also benefit from this new innovation. Their reaction is usually anger. Fear. And the desire to fight to defend what they have. This is a cognitive bias called Loss Aversion.
Have you ever wondered what it takes to keep teams coming up with breakthrough creative ideas, year after year? One of the secrets is in how often there is an influx of new talent into the team. While it’s tempting to keep successful teams working together on project after project, after a while these teams begin to lose their edge. So if you want to keep your innovation projects successful, it is important that you put in place a system whereby people are moved between projects.
According to a recent study by the Unilever Foundation, there is a strong desire for corporations to improve their innovation capability by working more closely with startups. The report estimates that corporates and startups will form the ultimate partnership, working side by side in the same physical space by 2025, seeking greater proximity for innovation as they evolve to meet changing consumer needs.
In this article, you are going to learn exactly what Loss Aversion is, why is creates crippling fear in middle managers and decision-makers, and a simple model for how you can reframe your company’s thinking which encourages more innovation projects to thrive.
What ends up happening in a brainstorming session is that a small number of people end up dominating the discussions and suggesting a lot of ideas. The truth is, even the quietest people often have ideas that are as good as, or often better, than the loudest people. You just need to find a way to let them share the ideas.
Mark Zuckerberg, the man who created Facebook and dropped out of Harvard University, recently gave some surprising revelations about what it takes to have your ideas succeed when he gave the commencement address to the class of 2017.
The Fidget Cube is a small device designed for people who often fidget. It really resonated with people, going viral and raising more than $6 million on Kickstarter. It was a blockbuster success, apart from one small problem. Because it was very obvious how successful the campaign was, other people could see that this product was going to be a huge success, with lots of demand. And this showed other people who didn’t have the idea itself that if they could get the same product to the audience first, then they could profit from this demand.
Why is it that innovation is so hard to seriously talk about in most companies? Everyone agrees that it's important. In fact, when IBM interviewed 1,500 CEOs on what they thought the most important leadership quality was for the next 5 years, the most commonly cited trait was "Creativity", followed by "Integrity" and "Global thinking". They agree that coming up with new ideas for their business was vital for its survival and growth.
The definition of creativity is developing an idea which is both unique (new) and useful. And this is what sets the Lion Man apart. The figurine has the head of a lion, but the body of a human. This creature does not exist, and therefore it would have been impossible for an early human to simply be copying the image of something they had seen.