Canon PowerShot G9
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…about ¼ of the mural flow, scribed in real-time…

In preparation for the MLab Management 2.0 conference, Gary Hamel paraphrased a brainstorming interview we did in advance about how large organizations could become more innovative, adaptive and engaging [to clarify, what follows was my input to the brain spa]:

Flaws

Large group sizes working on any project and/or involved in most important decisions, and all sustaining the same business model (vs. competing to develop alternative concepts).

Work organization patterns that systematically eliminate options more than a standard deviation away from the mean.

Promotion and reward mechanisms that favor convergence to the mean and “playing well with others” over bold moves.

Fixes

Many (competing) small teams of 3-5, then reorient decision making to support selection of “winning” project ideas.

Four tenets jump to mind if we consider the Wisdom of Crowds as an emergent phenomenon, operating at a higher level of abstraction:

1) team (thinking style) diversity is more important than individual ability

2) disagreement is more important than consensus

3) and the voting policies and selection mechanisms that you put in place are more important than the coherence or even the comprehensibility about what you do.

4) The role of upper management is to tune the parameters of communication

Hire and build organizations to sustain group (hive) learning over individual learning, by consciously assembling teams of MIN 3 and MAX 7 with very diverse approaches. Number of teams you assign depends on the range of probability that you’ll get a very different, compelling answer out of one of them.

Structure the organization for more failure and greater selection of non-normative choices through difference-seeking voting policies and more observation of – and experimentation with – “perturbations” (vs. predictive extrapolation).

Other

DFJ uses voting methods that allow a vocal minority to overrule a wishy-washy majority, if the goal is to advance a very different concept. (“Passion-weighted vote”; “Silver bullets”).

You might improve a corporation’s ability to allocate resources across a more diverse portfolio of ideas if you can put those decisions in the hands of executives not vested in day-to-day execution of the initiatives (as the venture model – or Richard Branson – does).

Firms need to cross the threshold of accepting that they’ll be wrong more than 50% of the time when pursuing disruptive innovation, and therefore need to swing for the fences more often to make up for more losers.

16 responses to “Stream of Consciousness”

  1. convergence to the mean
    as in math statistics
    or just mean?

  2. What are the mechanics of your passion-weighted voting system? How does it work? Or is that that a trade secret?

  3. bellísimo retrato, bien hecho, te felicito

  4. Passion-weighted, might have two "tokens" per year to use in votes when you really want to tilt the scales.

  5. It’s fascinating to see smart people think big and different.

  6. I think his fixes are good ideas but not sufficient (Christensen tries to get at similar ideas in his Innovator’s Solution but likewise falls short.). There is no invisible and enlightened hand to get upper management to play along. In reality they are real and imperfect people, and getting more than a few of them aligned is like the proverbial herding of cats. In my experience this can only happen in isolated groups within the BigCo, and almost never across the whole company.

    But you may not be talking as large as I am (100K+ employees).

  7. I just read this. All the text made me remember continually our discussion " neural plasticy vs. synapse pruning, what is best". The same pattern thought here: plasticity (open possibilities for emergence, opposition, different paths, voice of minority, etc etc) is in your exposition better of preferred over synapse pruning (convergence of ideas, tendency to fuse to winning ideas, seek of consensus)…

    It’s nice to see how you support that concept ("Long live to the childlike mind!" if you will) by transposing it (consciously or not?) to other arenas, like this, too.

    Which highlights another interesting concept: How social-networks reflect on macroscale the behaviour of the neural networks…

    oh… the fractal world live we live in… 😀

    (as for me no-one is better than the other per se, it is just a question of stagesor timing. A mind in 24hs creative mode can’t accomplish anything… you can’t keep diverging and diverging your thoughts (plasticity). You simply burn out, most of the time. You have to stop and clean the table and keep just the essential concepts after the brainstorm in order to start working on something (pruning) concretely. The catastrophe is to invert the process or over emphasize or prolonge one stage over another. The key is in the dynamic balance between the two methods or approaches, isn’t it?)

  8. The first three tenets under "Fixes" could almost have come from the mouth of Seymour Cray – if he were still alive you could have had an interesting discussion with him. He used different words, but the essence was much along these lines. (Every time the organization got too big, he quit to go found another one so that he would have the flexibility to buck the stifling kind of group-think). On the 4th tenet, he maintained that the role of management was to run interference for the creators so that they wouldn’t have to be distracted by shareholders, budgets, politics, and other nattering nabobs of negativism.

  9. jitze – just wonderful. Some teams have echoes of that spirit today.

    chadh – trade secret. =) But I’d be happy to tell you offline.

    aefitzhugh: oops. I should have been more clear. The caption text was my brainstorming input to the discussion, not his. And I think you are right in that we were considering smaller organizations. I was interested to see IDEO and Google following the team size ‘fix" and Gore physically separates manufacturing divisions when they cross a certain size. Moving them across town is disruptive and loses certain economies of scale, but they believe the value of smaller team sizes outweighs all that.

  10. This is interesting. At some point, the next time we get together, we need to have that conversation about beavers I keep telling you about. This organism is an interesting model to examine, in consideration of social risk ability, and preparation of environments for scaling up by the larger masses of the organization. Without the beaver, many biospheres and ecosystems simple do not develop. In start-up companies and in large corporations, you can predict a lot about the success or failure of the organization based upon how the beavers within it are co-existing and what they are doing. We can learn a lot from the social behavior of other organisms in nature.

  11. I thought I’d let you know that I added this photo to my strategic planning page on my website.

    Thanks for the great photo!
    José Luis Romero

  12. Superbly done! I liked this as an example of what can come from creative brainstorming so much that I’ve used it on my blog here…
    publishingacademy.com/authors/get-book-ideas/creativity-e…
    I’ve included a credit and link back – thanks for granting a CC licence for this!

    Joe

  13. Thank you for shaing on Creative Commons. I’ve used this photo on a blog post scheduled for August 25, 2010. http://www.insidetheschool.com/articles/shutting-down-brainstorm...

    Diane Trim, editor
    InsideTheSchool.com


  14. I saw this in the 50+ Faves group and Faved it.

  15. Fabulous – thanks for posting under a CC licence. I’ve used this picture in an ‘E-tivity’ on learning design for #CDMOOC – it’s at goo.gl/bIIJTZ

  16. Here are some of my comments 10 years ago: food for thought I’d posit that diverse group performance comes not from convergence to the mean on a single parameter scale, but the factoring of diverse and orthogonal perspectives. Diversity brings more variables into the multivariate regression of teams.

    According to Scott Page, “People in diverse groups are less happy. Their views are challenged, and they feel like the outcomes were manipulated. Based on their experiences, they will self-report that it was not better than when they were on a homogenous team.”

    As you increase diversity, complexity goes up, but then it drops and you get the central limit theorem. There is a sweet spot with just the right interplay between agents. Also, there is not one dimension that perspectives lie along. Diversity captures orthogonal perspectives and more adjacencies. The better the perspective, the less rugged the landscape (in terms of finding the global optimum and not getting trapped in local optima). Consultants can hop across local peaks without being any smarter or more experienced in their client’s business. The goal is not regression to the mean.

    Page’s conclusion that diversity is as important as ability seems pretty profound.

    His argument for diversity in complex adaptive systems seems to be to be the underpinning of that popular book by Surowiecki, The Wisdom of Crowds.

    If a group of diverse people routinely beats the experts, where does the learning occur? It seems to be at the system level, and not the individual level. The decision may make no sense to the individual members, but the decision making process does. The “wisdom” of the process could be taught to others, but not the outcomes.

    This generalization about emergence seems to hold for evolution, brains & neural networks, hives, and cultural memetic drift (more on this). In interesting systems, the emergent phenomena are at a different layer of abstraction, and may only be recognized by “in-process” or nodal members by pattern or proxy.

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