Bob Morris on How Breakthroughs Happen: A Book Review
How Breakthroughs Happen: The Surprising Truth About How Companies Innovate
Andrew Hargadon
Harvard Business Press (2003)
For many who read this book, it may well be a “surprising truth” that innovation succeeds “not by breaking free from constraints of the past but instead by harnessing the past in powerful new ways.” I am among those who agree with the prophet Ecclesiastes that there is nothing new under the sun; also with the Greek philosopher Heraclitus who asserted that everything changes…but nothing changes. I also agree with Hargadon’s emphasis on the importance of an innovation strategy that seeks to take full advantage of what can be learned from the past in order to create the future. His core concept is “technology brokering” which he introduces and then rigorously examines in Part I; next, in Part II, he describes the “networked perspective” of innovation, explaining how this strategy influences the innovative process within organizations, regardless of their size and nature; finally, in Part III, Hargadon provides specific and practical examples of how various organizations have designed and then implemented technology brokering strategies. Throughout the narrative, Hargadon explores in depth with rigor and eloquence his core premise: “that breakthrough innovation comes by recombining the people, ideas, and objects of past technologies.”
In this context, I am reminded of what Carla O’Dell asserts in If We Only Knew What We Know when discussing what she calls “beds of knowledge” which are “hidden resources of intelligence that exist in almost every organization, relatively untapped and unmined.” She suggests all manner of effective strategies to “tap into “this hidden asset, capturing it, organizing it, transferring it, and using it to create customer value, operational excellence, and product innovation — all the while increasing profits and effectiveness.” Almost all organizations claim that their “most valuable assets walk out the door at the end of each business day.” That is correct. Almost all intellectual “capital” is stored between two ears and much (too much) of it is, for whatever reasons, inaccessible to others except in “small change….there is no conclusion to managing knowledge and transferring best practices. It is a race without a finishing line.”
I think this is precisely what Hargadon has in mind when insisting that the future is already here, that the “raw materials for the next breakthrough technology may [also] be already here [but probably] without assembly instructions,” that decision-makers must find their “discomfort zones” rather than remain hostage to what Jim O’Toole calls “the ideology of comfort and the tyranny of custom,” and that they should build a “bridge” to their own strengths but also to their weaknesses because, as they perform, so will their organization. I agree with Hargadon that innovation must unfold at the ground level, “in the minds and hearts of the engineers and entrepreneurs who are doing the work.” Also, that — meanwhile — they and their associates must be guided and informed, not only by their own organization’s “beds of knowledge” but also by external sources of information concerning prior successes and failures of the innovation process elsewhere. In the final analysis, there is good news and bad news. First the bad news: “New ideas are built from the pieces of old ones, and nobody works alone.” Now the good news: “New ideas are built from the pieces of old ones, and nobody works alone.”
Habit #4: Think Win-Win
Think Win-Win.
I don’t know any advice any better than this. This, of course, is one of Stephen Covey’s Seven Habits of Highly Successful People – #4 to be precise.
And if you think about “think win-win,” it reinforces a lot of “advice and counsel” from books we read nearly every day. For example, today I presented my synopsis of the terrific book, Never Eat Alone by Keith Ferrazzi. These quotes jumped out at me, and reminded me of Covey’s “think win-win” counsel:
Success in any field, but especially in business, is about working with people, not against them.
I learned that real networking was about finding ways to make other people more successful.
A network functions precisely because there’s recognition of mutual need… first you have to stop keeping score.
Or, consider the concept of “generalized reciprocity” from the modern classic, Bowling Alone: The Collapse and Revival of American Community by Robert D. Putnam. In it, he writes about the appeal of generalized reciprocity: “I’ll do this for you without expecting anything specific back from you, in the confident expectation that someone else will do something for me down the road.”
I think we need to trumpet this concept loudly and clearly in these tense days. There seems to be such fierce competition with others; so many people who are so quick to find fault, to even question the motives of others. It is as though there are people out there rooting for the failure of others.
And we forget that any one failure spells trouble for others – maybe for all.
I was recently re-reading part of Collapse: How Societies Choose to Fail or Succeed by Jared Diamond. (One of those, “I really encourage you to read this book” books). Here are a couple of quotes from near the end of the book:
Our own society opted long ago to become interlocked with the rest of the world…
In the Netherlands, we have another expression, ‘You have to be able to get along with your enemy, because he may be the person operating the neighboring pump in your polder.’
In one sense, there is no such thing as an enemy, but only fellow planet users. If your economy is weak, my economy is threatened. If your city is polluted, my clean air is at risk. “If the dikes and pumps fail, we’ll all drown together.’’ (Diamond).
Let’s put it another way: to think and act “win-lose” is really to think and act “lose-lose.” We really are in this together, and “win-win” may be the only path to “win” at all.
Bob Morris on Return on Learning: A Book Review
Return on Learning: Training for High Performance at Accenture
Donald Vanthournout, Tad Waddington, and Accenture’s Capability Development team
Agate B2; First Trade Paper Edition (2008)
To the best of my knowledge, this book offers the single best source for information and counsel on how to design a high-impact learning program that can be implemented and then sustained (with continuous improvement) at all levels and within all areas of the given organization. Better yet, as the contributors to this book (members of Accenture’s Capability Development team) explain, the ROI of such a program can be both quantified and verified.
In 2001, Accenture faced a number of major challenges that are best revealed and discussed within the narrative, in context. The fact remains that, led by Donald Vanthournout, Accenture’s Capability Development team began a “journey” that had to take those challenges into full account. What they learned provides the most valuable material in this book. The story of their journey is a business story: about how one company – Accenture – advanced toward high performance through learning, knowledge management and the transformation of its workforce. By extension, however, it is about how other organizations can do the same.”
In recent years, senior-level executives have been much more interested in knowing how to increase and improve the nature and extent of employee engagement: “how can they best tap into the collective intelligence of their people and engage them in their work, for their benefit and the benefit of he entire enterprise?” Vanthournout and the members of his team shared a business-centric perspective. They were determined to link human capital investments to business benefits, both for Accenture and for each of its clients; to put in place the governance and leadership structures that increase a learning program’s chances of success; to ensure that the actual classroom and electronic training create what the team characterized as “phenomenal” learning experiences; and to maximize the operational efficiency of learning. According to Vanthournout, he selected members to comprise a team that “was more of a team focused more on corporate education than it was an education team trying to have a business impact.”
Here are some of the key lessons that members of the Accenture team learned during their “journey,” each of which is supported by hard data rather than by firm (albeit sincere) convictions:
1. Enterprise learning must be driven with the end in mind: the business results to be achieved.
2. An enterprise should build a learning strategy founded on the core values of the organization, as well as its primary leadership values.
3. Through metrics and ROI analysis, learning investments can be linked to business performance outcomes.
4. When conducting an ROI analysis, organizations should focus on how learning improved a person’s performance on the job.
5. According to Kurt Olson, a team member, “Although it may be an overused phrase now, phenomenal earning was truly the `secret sauce’ for many of the outcomes we have accomplished with the learning transformation initiative at Accenture. Phenomenal learning was how all good planning and design came to life. It’s how the `thinking’ and the `doing’ all came together to produce phenomenal results.”
6. To address the increasing emphasis on business outcomes, today’s learning professionals must have strong business skills.
7. Because the lifespan of learning content is shrinking as the marketplace changes more rapidly, Accenture must develop the means for faster, continuous, and more efficient content production or revision.
8. A global learning infrastructure can integrate vital decision-support functionalities that help increase the impact of learning and keep it aligned with the most important business needs.
9. Companies should focus on differentiating their workforces, creating deep skills in people that can be brought to bear anywhere around the organization.
10. Increasing the engagement of employees is important not only to retaining them and improving productivity. It is important to growth and innovation by tapping into the collective intelligence of value workers.
It is worth noting that, as a result of the efforts of the Capability Development team, working closely with senior management and countless other associates throughout the firm, “for every dollar Accenture invests in learning, the company receives that dollar back plus an additional $3.25 in measurable value to its bottom line. – In other words, a 353 percent return on learning.” Literally, ROL = ROI. To repeat, Return on Learning is also about “how other organizations can do the same.” Or how they can at least “use learning programs for major business impact, and can run learning as a business.”
Who is Tad Waddington?
Here are a few of the awards he has received thus far: International Business Award Best Human Resources Executive of the Year, 2008. World Human Resources Development Award for Human Resources Leadership, 2009.
His formal education: Chicago Management Institute, Graduate School of Business, University of Chicago, 2005; PhD, Measurement, Evaluation & Statistical Analysis; Education; University of Chicago, 1995; MA, History of Chinese Religions, University of Chicago, 1990; BA, Psychology, Honors College, Arizona State University, Phi Beta Kappa, Moeur Award (for 4.0 GPA), 1986.
Also: Global Senior Advisor, Asia-Pacific CEO Association; Worldwide Director, Performance Measurement, Accenture; Public Speaker (in English and Chinese) recently in Beijing, Cairo, Changchun, Kuala Lumpur, London, Mumbai, Nanjing, Nice & Singapore.
Q: What was your inspiration/motivation for writing this book, Lasting Contribution?
Nothing frustrates me more than wasted potential. I see many well-intentioned people in the world who are trying to do good work, but because they don’t understand economics, game theory, or statistics, they are not as effective as they could be. Since not everybody has the time or inclination to study all of these fields, I took an idea from the ancient Chinese philosopher Zhuangzi who said, “The fish trap exists because of the fish. Once you’ve gotten the fish you can forget the trap.” My goal was to bring the insights from various fields of study to more people so they could be more effective in their well-intentioned pursuits.
Q: Given the thinking in your book, if you could solve just one of the world’s problems, what would it be?
Energy. Besides addressing global warming, clean and cheap energy would allow you to desalinate and move water, which would go a long way toward solving problems with food and population.
Q: You have expertise in China, hermeneutics, education, and statistics. How does all of this fit together?
My knowledge of China is focused on language, culture, and philosophy, which inevitably lead to Confucius. He asked: How do you make the world a better place? By making people better, and you do that through education. That’s two topics. The other two are variations on the theme of, “How do you know?” One is qualitative and the other quantitative, but we live not in a multi- or poly-verse, but rather a universe. This means that the qualitative and quantitative approaches must converge. If they don’t, then you haven’t done enough work.
To put all of this differently, if I were interested in making money—good old capital—then I’d invest, which would involve a qualitative assessment of the management team and a quantitative assessment of the fundamentals. I’m interested in human capital, so I conduct qualitative and quantitative assessments of how to improve it.
Q: What is your lasting contribution?
Confucius said that to leave a legacy, you should have kids (I have a son) or write, but Socrates said that to leave a legacy you should have kids, write, or (what does this tell you about the difference between China and the West?) do something that has an enduring impact on the world. According to Accenture’s Chief Learning Officer, my contribution has been “to fundamentally change the equation for how companies think about investing in their people.” I proved that the return on investment in training is very high. Gary Becker, Nobel laureate and Presidential Medal of Freedom winner said, “In terms of human capital, [Tad’s work] is exactly what American businesses most need to be doing.”
Q: How did you do that?
I analyzed 261,000 employee records of per-person margin (how much people brought in minus how much we paid them), controlled for experience, inflation, and business cycles, to show that for every dollar Accenture spent on training, it received $4.53 in return, which is a return on investment (ROI) of 353 percent.
There are several features of this work that I think are worth pointing out:
Since the analysis focused not on soft data (Did you enjoy your hospital stay?), but on hard data (Did you survive your hospital stay?) and since it used rigorous statistical techniques (multiple regression that accounted for various confounds), the results had a high degree of credibility, so high that the work won half a dozen awards and was turned into the book Return on Learning: Training for High Performance at Accenture.
The approach forces people to focus not on training activities—hours of training delivered, percentage of workforce trained, and so on—but on results, a focus that forces you to speak the language of the organization’s leaders—the language of results.
The analysis took into consideration all of the training that everybody experienced as well as all of the costs associated with the training, including opportunity costs. One point is that this makes for a conservative estimate of ROI. But the more important point is that the analysis looked at the big picture of how all of the courses interacted with each other to add value, thus avoiding the common mistake of trying to explain how a particular course increased a particular skill, which has a particular ROI. The analysis showed that, because individual courses interact with each other, the whole effect of training is greater than the sum of its parts.
Daniel J. Isenberg on how to start an entrepreneurial revolution in six months
Here is an excerpt from an article written by Daniel J. Isenberg for the Harvard Business Review blog. To read the complete article, check out other articles and resources, subscribe to HBR at a deep discount, and/or sign up for a free subscription to Harvard Business Review’s Daily Alerts, please click here.
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In the weeks since the Entrepreneurial Revolution article appeared in HBR [click here], government leaders, business executives, entrepreneurs, NGO directors, heads of institutes, university professors, and foundations have been asking me to help them instigate a revolution. Here is my advice to all of you on how to get started in just six months.
[Isenberg offers seven specific recommendations. Here are the first three.]
• Revolutions start local. Start the revolution in one locale and spread it from there. Every ecosystem has its own idiosyncrasies, and skepticism is prevalent, so start with quick wins that make sense in that specific location. And make quick correctable mistakes. Once you get on the right track in one locale, you can spread the revolution quickly. You don’t have years to wait for measurable results before scaling up, just know you are on the right track.
• Revolutions need participants. The “shot heard round the world” will be a town-meeting-style, entrepreneurship stakeholder workshop to create excitement and commitment, and to learn. Convene representatives of banks, churches, universities, public schools, unions, cooperatives, entrepreneurs, the municipal and federal government, trade and industry associations, economic development organizations, some “foreign” Diaspora resources, and the media. Meet with them individually to prepare them, and learn about the assets and liabilities of the local entrepreneurship ecosystem.
• Engage the Private Sector from the Start. Government cannot build ecosystems alone. Only the private sector has the motivation and perspective to develop self-sustaining, profit-driven markets. Foe this reason, government must involve the private sector early and let it keep or acquire a significant stake in the ecosystem’s success.
The most important deliverable in these first six months is to engage, excite, and empower the entrepreneurship stakeholders, demonstrate commitment, and show your constituents that you mean business. This will set the stage for the next phase of new policies and programs to help hardwire the change into the fabric of the society.
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To read the complete article, check out other articles and resources, and/or sign up for a free subscription to Harvard Business Review’s Daily Alerts, please click here.
Daniel J. Isenberg is a Professor of Management Practice at Babson College







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