ORIS Intelligence released the following update in mid-March, providing strategic information for Houseware manufacturers. Pricing Violations Heating Up in Housewares Industry: ORIS Intelligence Reveals New Insights […]
The Columbia Business School Executive Education program is, once again, partnering with SIT to bring Design Your Innovation Blueprint: Leveraging Systematic Inventive Thinking. Registration is now […]
When you try on a new piece of clothing, like a shirt or a new jacket, what do you see when you look in the mirror? If you’re like most consumers, you’re not looking at the clothing. Rather, you’re looking at yourself and thinking about how that new clothing fits the image of the person you are or want to become.
So what happened here? You were guilty of a bias that we all have called The Hindsight Bias. Hindsight bias, also known as the “knew-it-all-along effect”, is the inclination to see events that have already occurred as being more predictable than they were before they took place. Hindsight bias causes you to view events as more predictable than they really are. After an event, people often believe that they knew the outcome of the event before it actually happened.
I want you to imagine that you’ve been working on a string of projects, and they’ve all gone very well. You’re talented, hardworking, and ambitious, and you’re on a roll.
Then, your next assignment comes along. It’s a big challenge like the ones before. You’ve got a tight deadline, a limited budget, and lots of pressure to make it a big success. Then, something bad happens. You were faced with a critical decision. You knew ahead of time that you didn’t have all the information, but you made a decision anyway...and it was dead wrong.
So what happened? Well, you may have been guilty of a cognitive bias called overconfidence.
Do you remember a time when you were just about to buy something, but at the last minute, you stopped and said, “No, I don’t think I’ll buy this.” So what stopped you? It was most likely because you were worried about something. There was too much risk around the purchase, so you walked away. Guess what? You’re just like every other consumer out there. Being a consumer is risky business.
As an innovator, you have to understand the risks and uncertainties faced by your customers, and figure out ways to lower that risk. The lower the risk to consumers, the more likely they are to buy the product and less likely they are to complain about it afterwards.
Nielson released its 2015 BREAKTHROUGH INNOVATION REPORT that features best practices from winning brands – with 7 specific case studies from brands like Pepsico, Kraft, MillerCoors, Kellogg’s, Nestle Purina, Atkins and L’Oreal Paris.
The report is based on a two year study examining over 3000 products that were launched to consumers in the US. It debunks conventional wisdom that new product success is random. Instead, it shows that success in new product innovation is repeatable and scalable when the science of innovation is applied.
When describing the SIT method, I sometimes say it’s like using the voice of the product. That’s because SIT is based on patterns that are embedded into the products and services you see around you. If products could talk to you, they would describe the five patterns of SIT. But there’s another important voice in business innovation: the voice of the customer. After all, that’s why you do innovation - to create new value, directly or indirectly, for your customers. A good innovator understands their needs and wants.
Think about how often you push buttons during the normal course of a day; at home, in our car, and elsewhere - elevators, crosswalks, and so on.
Did you ever stop to wonder how many of those buttons you push don't actually work? It's called a placebo button - it seems to have functionality, but actually has no effect when pressed.
Training programs, by design, are meant to provoke and cause changes. Changes can be in the skills, attitudes, behaviors, or knowledge of the participants. For leadership training programs, the ability to "think differently" seems to be at the top of many companies' list of priorities.
So how do you think differently and creatively? By using cognitive thinking tools that re-pattern how you see situations and potential opportunities. It is the Holy Grail, the magic elixir that can transform a talented leader into a great one.