“It’s an environment the likes of which managers have never seen—a Great Disruption in which the old rules for success become recipes for failure, and ‘doing more with less’ will not be nearly enough to survive.”—Scott D. Anthony, The Silver Lining: An Innovation Playbook for Uncertain Times, Harvard Business Press, 2009
The inevitable constraints this tough economy imposes on companies provide fertile ground for innovation because necessity truly is the mother of invention. Companies that learn to innovate more quickly, cheaply and with less risk will emerge from the downturn stronger than ever.
To succeed, smart executives will need to adopt a different mindset and effective frameworks to determine what to start doing, stop doing and do differently. Consultant and author Scott D. Anthony, who earned his MBA at Harvard Business School, prescribes a disruptive-innovation mindset. His book is well-worth the read for historical perspectives and inspiration.
Over the last decade, technological improvements have made starting and scaling businesses easier than ever. Brazil, Russia, China, India and other emerging markets prove U.S. leaders have more competitors at home and abroad. Industries are frantically converging and colliding.
These changes make it more difficult for great companies to maintain success—a problem that has caused leaders to lose sleep for some time (even before the 2008 financial market collapse).
Tough business environments force companies to take a hard look at innovation. While output may shrink and unemployment is sure to rise, companies that master these challenges have a chance to thrive. Those that don’t are sure to struggle.
A Historical Perspective
While no one can predict with certainty how the global economic crisis will play out, many companies face serious challenges:
- Should they cut costs and streamline innovation projects until business picks up?
- Should they play it safe until the current storm passes?
If history is a guide, the answer is a definitive “no.” We can restore hope and gain a better perspective by taking a step back and considering how past downturns were resolved.
Many successful companies have been launched during recessions. Grim economic times can highlight previously hidden problems or cause old problems to intensify. When a deep-seated customer problem emerges, search for novel ways to address it.
A number of game-changing products, services and business-model innovations were developed or launched in daunting economic climates.
Thirteen of the 25 companies on the Dow Jones Industrial Average, as of December 2008, were formed during an economic downturn, including 3M, General Electric, Microsoft and Walt Disney.
Disruptive Innovations
Instead of trying to best their competitors, disruptors change the game. They typically transform existing markets or create new ones by focusing on convenience, simplicity, accessibility or affordability.
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- Disruptive Innovations
- Bad Times, Good Times
- The Transformation Imperative
- Disruptive Guidelines
- The Executive Challenge
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“Human communication has its own set of very unusual and counterintuitive rules.” — Malcolm Gladwell
What does it take to transmit bold new ideas to people who don’t want to hear them? How can the language you use facilitate enthusiastic, energetic implementation?
Transformational leaders:
- Generate enduring enthusiasm for a common cause
- Present innovative solutions to solve significant problems
- Catalyze shifts in people’s values and ideologies
- Demonstrate a willingness to sacrifice personal interests for the greater good
- Help others get through crisis moments
- Inspire people to want to change, creating a positive energy that sustains the change
- Generate followers who will ultimately become leaders
The what of transformational leadership is reasonably clear. It’s the how that’s usually obscure.
=>How do leaders communicate complex ideas and spark others into enduringly enthusiastic action?
=>What words do they use to inspire others to become new leaders?
=>Why are some leaders able to accomplish the feat while others fail miserably?
Stephen Denning, a senior scholar at the University of Maryland’s Burns Academy of Leadership, makes the case for transformational communications in his book The Secret Language of Leadership (Jossey-Bass, 2007). More than anything, it’s what leaders say — and the way they say it — that generates sustained energy and exponential results.
How to Lead Change
If leaders’ own inner commitment to change is to have any effect at all, they must communicate it to those they aspire to lead. Leaders’ actions speak louder than their words, but in the short run, it’s what leaders say — or don’t say — that has an impact.
The right words can create:
- A galvanizing effect
- Enthusiasm
- Energy
- Momentum
- Sustainable motivation
The wrong words, or even words said in the wrong sequence, can undermine your best intentions and plans, killing an initiative on the spot.
Confirmation Biases
A significant body of research shows that asking people to change often drives them more deeply into opposition. In study after study, people display a phenomenon called confirmation bias.
Confirmation bias is a tendency to search for or interpret new information in a way that confirms one’s preconceptions and to irrationally avoid information and interpretations that contradict existing beliefs.
Successful leaders follow a unique, almost hidden communication pattern:
Grab the audience’s attention ► Stimulate desire ► Reinforce with reasons
Unfortunately, this approach often eludes aspiring leaders. If you want listeners to own the change idea, your stories must help them discover the truth for themselves, thereby creating a new story.
What the leader says is the scaffolding — a catalyst for a creative process inside listeners’ heads.
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This is a brief synopsis of a 2000 & 1000-word article suitable for consultants’ newsletters for executives and leaders in organizations. It is available for purchase with full reprint rights, which means you may put your name on it and use it in your newsletters, blogs or other marketing materials. You may also modify it and add your personal experiences and perspectives.
The complete 2,000 word article includes these important concepts:
- How to Lead Change
- Old-School Communication
- Confirmation Biases
- The Devil in the Details: Words Matter
- 3 Steps for Inspiring Change
- Step 1: Getting the Audience’s Attention
- Step 2: Creating Desire
- Step 3: Reinforcing with Reasons
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