Creative Management: Lecture on Corporate Creativity

Creative Management
Lecture on Corporate Creativity
23-Sep-11 1IMT - Management Creativity
From Cursory to
Creativity-2m32

LOGO Contents
THE IDEA-DRIVEN ORGANIZATION1.
CREATIVITY & ITS MANAGEMENT2. CREATIVITY & ITS MANAGEMENT2.

THE IDEA-DRIVEN
ORGANIZATION
23-Sep-11 IMT - Management Creativity 3

LOGO THE PROBLEM
Front-line workers see a great many problems and
opportunities that their managers don’t.
Today, most leaders either don’t realize the full
power of employee ideas or have never learned
4 23-Sep-11
power of employee ideas or have never learned
how to tap them effectively.
To be truly excellent, innovative, lean or
effective at execution, you have to be able to
capture and implement large numbers of employee
ideas.
IMT - Management Creativity

LOGO EXAMPLES OF GOOD IDEA SYSTEMS
Boardroom Inc. 104 ideas per person per year
Wainwright Industries 65 ideas per person per year
90 percent implemented
5 23-Sep-11
Richer Sounds 20 ideas per employee per year
Milliken Corporation 115 ideas per employee per
year
Toyota Lexus 100 ideas per employee per
year

LOGO WHY IS CREATIVITY IMPORTANT?
The greatest source of competitive
advantage is not really cost or quality,
but creativity.
6 23-Sep-11
John Micklethwait and Adrian Wooldridge
Business editors of the Economist

LOGO YOUR GOAL
Learn how to set up and run a good idea
system, to enable everyone in your
organization to act on the problems and
opportunities they see.
7 23-Sep-11
Goal: 12 implemented ideas per person
per year by end of first year.
opportunities they see.

LOGO POINT 1: GO AFTER SMALL IDEAS
It is impossible to improve performance past a certain point
without getting the little things right.
Unlike major innovations, most small ideas stay
proprietary and create sustainable competitive
advantage.
8 23-Sep-11
Small ideas are the best source of big ideas. If you don’t go
after small ideas, you won’t get many big ones either:
• What other ideas does this one suggest?
• Where else might this idea be used?
• Are there any patterns in the ideas that have come in?

LOGO
POINT 2: MAKE IDEAS PART OF
EVERYONE’S JOB
Document ideas and track them.
Require or expect ideas from your front-line employees:
Evaluate them on the quantity and quality of their ideas.
9 23-Sep-11
Teach your supervisors the value of ideas and their own
four roles: encouraging, mentoring, championing and
looking for larger implications of ideas.
Evaluate them on how well they promote ideas.
Important principle: There is no such thing as a bad idea.

LOGO AT ONE LARGE COMPANY .
Ideas
Per
1023-Sep-11
1 2 3 4 5 6 7 8 9
Per
Person
Division

LOGO AT ANOTHER
Ideas
Per
15
1123-Sep-11
Division
Per
Person 15

LOGO SOME THINGS TO KNOW
How to handle the issue of rewards
How to overcome initial reluctance to participate
How to make ideas part of everyone’s jobs
How to hold your people accountable
What a good idea process looks like
12 23-Sep-11
What a good idea process looks like
How to focus your team’s ideas on critical issues
How to help your people come up with more and better ideas (a big
area)
What is the most effective way for top leadership to be involved
How to design and launch an idea system
And much more

CREATIVITY & ITS
MANAGEMENT
4 Steps for Creative
Visualization-2m30

LOGO
Starting End
Backward Reasoning
PROBLEMSOLVING
IMT - Management Creativity 14
Starting
point
End
Point
? ? ?
Forward Reasoning
[Edward De Bono, Lateral Thinking for Management, Penguin Books,
1990]
Need: Knowledge
23-Sep-11

LOGO
1: ?
End
? ? ?
DESIGN
Starting
Point
End
Point2: ? ? ? ?
3 ? ? ? ?
Need: Knowledge + Creativity
23-Sep-11

LOGO
1: ? 1:?
INNOVATION
Starting
Point
2:?
End
Point
2: ?
3 ?
4:?
3:?
Need: Knowledge + Creativity
23-Sep-11

LOGO
• Provocation• Analysis
ARRANGEMENT OF INFORMATION
• Provocation
• Liberation
• Intermediate Impossible
• Analysis
• Description
• Proof
23-Sep-11

LOGO Basic Lateral Thinking Processes
ESCAPE from cliches and patterns
CHALLENGE assumptions
GENERATE alternatives
JUMP to new ideas and then see what happens (?)
JUMP to new ideas and then see what happens (?)
FIND new entry points from which to move forward (?)
23-Sep-11

LOGO
PO “Provocative Operation”:
A new functional word
Logical thinking: YES/NO
Lateral thinking: PO
PO is an escape from
YES/NO.
HYPOTHESIS
SUPPOSE
PO introduces a
discontinuity function.
PO is a fantasy device
PO is an insight tool.
Po is a repatterning tool.
PO is a-rational, not
antirational.
SUPPOSE
POSSIBLE
POTENTIAL
POETRY
23-Sep-11

LOGO
POPO
POPO
Information
Creativity
23-Sep-11

LOGO
Number of ideas
5 min 10 min 20 min
PO
23-Sep-11

LOGO
Problem: Find the size of in the tube without pulling othe constriction ut the tube.
23-Sep-11

LOGO PO Spaghetti
Spaghettifilaments push filaments down the hole
one by one until no more will pass through the
constriction diameter is then given by the number of
filaments used.
Spaghettifilaments use fiber optics with a camera at
the end to actually photograph the constriction.
the end to actually photograph the constriction.
Spaghettimacaroni tube attach a small balloon to
the tube and push through constriction in deflated state,
then blow up balloon and try to withdraw tube
determine degree of inflation which will just allow
withdrawal, then measure the diameter of the tube.
23-Sep-11

LOGO Creativity
• The term ‘creativity’ comes from Sanskrit kar,
meaning “to make, originate, to bring into
existence.
• Creativity is about exploring as an end in
itself, being interested in the unassuming,
itself, being interested in the unassuming,
paying attention to the strange and the weird,
not intending to produce any particular result,
but delighting in the process of exploration
[Moore and Gillette].
23-Sep-11

LOGO
Technological Thinking
Creative Thinking A
Systematic
Empiricism Omphaloskepsis
Intuitive
Flash of
Genius/
Hunch
23-Sep-11

LOGO
“Chase, Chance and Creativity:
The Lucky Art of Novelty”
According to the book with the above title written in 1978 by
J.H. Austin (a neurological scientist), creativity involves
chance and there are four types of chances:
Chance I: Pure accident through ‘blind luck’. No purposive
effort. We do not know how to motivate or encourage it.
Chance II: Results from action even when there is no clear
Chance II: Results from action even when there is no clear
goal. Kettering, the famous automotive inventor said
“Keep going and the chances are you will stumble on
something, perhaps when you are least expecting it. I
have never heard of anyone stumbling on something
sitting down.” May be applicable in certain purely empirical
applied research. Lesson: Success may improve with
more people employed.
23-Sep-11

LOGO Some other ‘serendipitous’ products
Microwave oven, Bendix brake
linings,
Gore-Tex, Dynamite, Puffed wheat,
Dextrose-Maltose, LSD, Penicillin,
Dextrose-Maltose, LSD, Penicillin,
Dramamine, X rays, Pulsars.
23-Sep-11

LOGO
Present day
knowledge and
Experience
Problems
Exploratory Creativity Normative Creativity
Flow of ideas
[Majaro 88]
23-Sep-11

LOGO Serendipity
“‘Serendip’ was the ancient name of Ceylon
or Sri Lanka used by Horace Walpole in his
fairy-tale ‘The Three Princes of Serendip’.
The heroes of this book ‘were always making
The heroes of this book ‘were always making
discoveries of things they were not in quest
of’. They simply floated over the waves of
destiny and allowed chance to ordain the
events that directed their lives.” [Majaro 88]
23-Sep-11

LOGO
Brain Jogging:
Using a different approach each time,
divide each of the following squares into four equal pieces
Time: 2 minutes
IMT - Management Creativity 3023-Sep-11

LOGO
Cover the nine dots
with four straight
and continuous lines.
In other words the
lines must be drawn
without lifting the
pencil off the paper.
pencil off the paper.
[Majaro 88]
23-Sep-11

LOGO
A B
Which of these four pictures differs from the rest?
C D
23-Sep-11

LOGO
What was
special
about 1961
that has notthat has not
happened that
has not
happened
since 1881?

LOGO
Solution to first nine
dots puzzle.
If you can do this one
you are a lateral
thinker and have an
thinker and have an
original and flexible
mind.
[Majaro 88]
23-Sep-11

LOGO Solution to Historical Dates Puzzle
Both 1961 and 1881 read the same if turned upside-
down and are read back to front. No other dates
between these two years manifest this
characteristic. After 1961 the next one is in 6009, a
long time to wait!
long time to wait!
If you have solved this, you seem to have good
lateral thinking.
23-Sep-11

LOGO Ideas, like eggs, need time to hatch.
IMT - Management Creativity 3623-Sep-11

LOGO The Creative Process: 5 Stages
First Insight
Incubation
Preparation
Recognizing that a problem
exists and determining to tackle it
Attempts to understand the
problem and to produce
solutions
Periods of relaxation allowing
Illumination
Verification
Incubation
Periods of relaxation allowing
subconscious though
Sudden emergence of the idea
(the ’act of insight’ or ‘creative
leap’)
Conscious development and
testing of the idea into a workable
solution
23-Sep-11

LOGO What is intelligence?
Theories about general intelligence, have been
discussed since the early 20th century. Psychologist
Charles Spearman defined general intelligence in 1904
as the kind of intelligence that is used to an extent in all
intellectual tasks. This type of general intelligence is
supposedly what is measured by standardized tests,
supposedly what is measured by standardized tests,
such as IQ tests and the SATs.
Gardner defines intelligence as the “ability to solve
problems or fashion products that are of consequence in
a particular setting or community.”
23-Sep-11

LOGO Howard Gardner's Multiple Intelligence
Theory
Proposed in 1983 that there is no single quotient of
intelligence," but rather there are seven:
Visual / Spatial Intelligence: The ability to perceive the
world accurately and to perform transformations upon one's
perceptions. Highly developed in guides, interior designers,
architects, artists, and inventors,
architects, artists, and inventors,
Musical Intelligence: The capacity to perceive, discriminate,
transform, and express musical forms. Highly developed in
musical performers, aficionados, and critics.
Verbal/Linguistic Intelligence: The capacity to use words
effectively, either orally or in writing. Highly developed in
story-tellers, orators, politicians, poets, playwrights, editors,
and journalists.
23-Sep-11

LOGO All thinking involves of logic.
There are two kinds of logic.
Crisp
Yes/No
Black/White
Polar
Fuzzy
Depends
Shades of Gray
Distributed Membership
0 1
0 1
YIN
YANG
ARISTOTLE BUDDHA
OCCIDENTAL
ORIENTAL
23-Sep-11

LOGO
Left Right
Logic
Reasoning
Language
Rhythm
Music
Imagination
Sees things in parts
Sequential
Sees things as a whole
Holistic
Language
Numeracy
Analysis
Linearity
Abstract
Imagination
Images, Color
Shape
recognition
Day dreaming
General
creativity
[Majaro 88]
23-Sep-11

LOGO
Load the mind with
pertinent information
and identify
the value problems
Divert the mind
to permit the
to permit the
unconscious mind
to solve the problem
Create an
environment that
stimulates the
unconscious mind
to deliver
its solutions
Later we will study
a technique called
VALUE ANALYSIS
that helps implement
the ideas we have learnt
concerning creativity.
23-Sep-11

LOGO Three levels at which we use our mind
1. Conscious level:
communication of literal ideas and reality.
2. Preconscious level:
Data processes at an extraordinarily rapid rate with
great freedom, assembling and disassembling many
great freedom, assembling and disassembling many
diverse patterns (as in a dream).
3. Unconscious level:
a. Use of special competence and knowledge
b. Express the needs dictated by the innermost
concerns and emotions.
Kostler: “No problem was ever solved in the conscious
mind.”
23-Sep-11

LOGO
“ O n e o f th e s c ie n tis ts w o rk in g o n n e w p rin tin g te c h n o lo g ie s
a t H e w le tt P a c k a rd L a b o ra to rie s in 1 9 7 8 w a s J o h n V a u g h t,
a n d h e d ra n k a lo t o f c o f f e e . J o h n d ra n k s o m u c h c o f f e e th a t
h e h a d to h a v e h is o w n c o f f e e m a k e r o n h is d e s k . N o w , a
p e rc o la to r is a th e r m a l p u m p w ith n o m o v in g p a rts b u t th e
c o ff e e its e lf . T h e re is a h e a te r a t th e b o tto m o f th e p o t, a
f u n n e l c o v e rin g th e h e a te r th a t h a s a tu b e to c a rr y liq u id u p
f u n n e l c o v e rin g th e h e a te r th a t h a s a tu b e to c a rr y liq u id u p
a n d o u t th e to p to a b a s k e t o f c o f f e e g ro u n d s . H e a tin g th e
w a te r in th e b o tto m o f th e p o t f o rm s b ig b u b b le s o f s te a m
th a t p u s h w a te r (c o f f e e ) u p th e tu b e a n d o u t o v e r th e c o f f e e
g ro u n d s . O n e d a y , a s J o h n w a s w a itin g f o r a f re s h c u p o f
c o ff e e , h e re c o g n iz e d th a t h e c o u ld u s e th is p rin c ip le to
m a k e a n in k je t p rin te r w h e re h e a t, ra th e r th a n a m e c h a n ic a l
p u m p , e je c ts th e in k .”
23-Sep-11

LOGO
The Right Way:
Stage 1: Assembling Knowledge
Initial Feasibility Study
Market data including
competition
Store Checks and
Assess company strengths
and weaknesses
Agreed screening criteria
Store Checks and
Exhibitions
Group discussions with
top market experts and
opinion formers
Creative Briefing
Agreed screening criteria
Screens
23-Sep-11

LOGO
The Right Way:
Stage 2: Idea Generation
Idea Making
Creative Briefing
From enthusiasts
and discussion
groups
From existing
products
From other
Idea MakingFrom
individuals
From
brainstorming
First ideas list
From other
sources
From unexploited
patents
23-Sep-11

LOGO
Idea generation
(60 ideas)
Ideas
recycled
The
Idea
screening
Feasibility
Implementation
(innovation)
(1)
The
idea funneling
process
23-Sep-11

LOGO
The Right Way:
Stage 3: Screening and Presentation
Screen First Ideas List
Short Ideas List
Product Concepts
Visual
Appearance
Business
rationale
Draft technical
description
Test concepts with users
23-Sep-11

LOGO
The Right Way: Stage 4
Development and Implementation
Presentation
Product brief and budget for each product
R & D Product Design
Model Prototypes
Brand names and package designs
23-Sep-11

LOGO Generating Ideas: Brainstorming
[Alex F. Osborne, ‘Applied ImaginationPrinciples &
Procedures of Creative Problem Solving’, New York,
1963, Charles Scribner’s Sons, 4th Edition.]
Osborn was a modest and unassuming person who
developed a personal passion for one subject: helping
people, froups and organizations to become more creative
people, froups and organizations to become more creative
[Majaro 88].
He said: ‘It is a little like trying to get hot and cold water
out of the dame faucet at the same time: the ideas may
not be hot enough, the evaluation of them not cold or
objective enough. The results will be tepid.”
He suggested that the idea generation phase and idea
screening phase must be de-coupled.
23-Sep-11

LOGO Creating Innovative Product Ideas
[Takahashi, 1999]
Ideas generation may be stimulated by attempts towards
• Imitation (e.g., imitating how a bird flies).
• Analogy (e.g. ‘computer- hamburger’ analogy,
different modules/layers made to order.)
• Combination
• Transformation
• Transformation
• Improvement
• Invention
These six methods of triggering ideas can be repeated
with respect to each of the fifteen design contexts factors shown
in the next slide [Takahashi, 1999].
Thus, the method enables at least 90 new product ideas
to be generated.
23-Sep-11

LOGO
1. Innovation
1. Innovation
2. Analogy
3. Combination
4. Transformation
5. Improvement
6. Invention
23-Sep-11

LOGO
Volume Place Time
Increase
Decrease
Bigger
Heavier
Smaller
Lighter
Expand
Segmented
Longer
Fast
Shorter
Slow
Decrease
Diverse
Integrated
Transform
Transfer
Lighter Segmented Slow
Split
Combine
Abstract
Rounded
Concrete
Edged
Separate
Unified
Discontinuous
Sequential
Continuous
Concurrent
Formal
Informal
All at once
Forward
Separately
Reverse
[Takahashi, 1999]
23-Sep-11

LOGO
Creative Phase: Intuitive Method
“Little by Little”
The SIL Method
[Battelle Institute, Frankfurt]
• Each member of the team writes down two or
more of her/his ideas for solving a defined problem.
more of her/his ideas for solving a defined problem.
• Two members read their proposals aloud.
• All the team members try to combine these two ideas
into a new common solution concept.
• Another member reads her or his own thoughts out
loud to the team and again they attempt to create
a new common solution.
• This process is continued until the group has found
an acceptable solution or the process is terminated
when a given time limit has been reached.
23-Sep-11

LOGO
Package Shape Package Content Package M aterial
1. Cube
2. Sphere
3. Tube
4. Cone
1. Liquid
2. Paste
3. Powder
4. Gas
1. Plastics
2. Aluminum
3. Paper
4. Board
3D-Morphological Analysis
Exploration of New Packaging Ideas
4. Cone
5. Tetrahedron
6. Hexahedron
7. Parallelepiped
8. Rhomboid
9. Cushion-shaped
4. Gas
5. Solid
6. Grain
7. Smell
4. Board
5. Steel
6. Paper/Plastic/La
minate
7. Aluminum/Plast
ic/Laminate
You may select from
9×7×7 = 441 possible combinations!
23-Sep-11

LOGO
Shape Smell Location
1. Pendant
pomainder
2. Vinaigrette
3. Pen-shaped
1. Aromatic salts
2. Deodorants
3. M enthol
4. Roses
1. Home
2. M eat & fish
markets
3. Public transport
3D-Morphological Analysis
Developing a New Concept in Air Fresheners
3. Pen-shaped
sprayer
4. Pocket sprayer
5. Standard aerosol
4. Roses
5. Spiced lemon
3. Public transport
4. Public
conveniences
5. Cinemas
You may select from
5×5×5 = 125 possible combinations!
23-Sep-11

LOGO
Materials Shapes Content Where
1. Paper
2. Waxed paper
3. Polystyrene
4. Polyethylene
5. Aluminum foil
6. Rubber
7. High barrier
plastics
1. Beakers
2. Cups
3. Plates
4. Multi-
compartment
5. Grenade shape
6. Condom
7. Balloon
1. Coffee
2. Tea
3. Juices
4. Meals
5. Whisky
6. Glucose water
7. Syrup
8. Pain killers
1. Home
2. Canteens
3. Coal mines
4. Army
5. Climbing
6. Cycling
7. Golf courses
8. Space
4-D Morphological Analysis
New Products in the Disposable Container Business
plastics
8. Aluminum/
Paper
9. Laminates
10. PVC
11. PET
7. Balloon
8. Sachets
9. Hip flask
10.Inflatable belt
with straw
8. Pain killers
9. Energy
producers
10.
8. Space
9. Gliding
10.Cross-country
skiiing
Select from
11×10×10×10 = 11000
possible combinations!
23-Sep-11

LOGO
You learn the general
principles of good practice
Why is it
successful?
Apply
to your
work
Learning not Copying [Petty 97]
Example
of Good
Practice
Your
Work
Copying
23-Sep-11

LOGO
More Enjoyment
You are more
engrossed,
motivated,
Better Ideas
Enjoy the Inspiration Phase
motivated,
spontaneous,
and bold
23-Sep-11

LOGO
Competence
Practicing the
Trying the
new way
Doing the
old way
Creativity, Management of
Technological Innovation, KV Patri
60
Time
Practicing the
new way and
making it work
Learning a New Approach

www.themegallery.com
Back to Orbit
A Song About
Innovation.6m06

LOGO Problem Example
A lift in a building is usually very crowded.
You are being asked to submit a quotation for
solving the problem.
You could quote a new and larger lift. This requires
major modifications to the building. Cost =
62
major modifications to the building. Cost =
$500,000.
You are looking for a far cheaper solution:

LOGO
“Ask an impertinent question and you
are on the way to a pertinent answer”
[J. Bronowski, scientist]
“Why?” followed by “So? ”
63
“Why?” followed by “So? ”
Step-up using “Why?”
“How?”
“Unless?”
[Petty 1997]

LOGO
I need to reduce the
waiting time for lifts.
WHY?
Because the lifts are
inadequate.
WHY?
So, fit a new lift shaft.
WHY-SO REASONING [Petty 1997]
64
WHY?
Because they are old-
fashioned.
WHY?
Because they are in an
old-fashioned
building.
So, modernize them.
So, move to a new
building.

LOGO
I need to reduce
waiting time for lifts
Well, I could reduce the
use of the lift
How?
65
use of the lift
By increasing the
use of stairs
How?
Asking How?

LOGO Step-up using “Why?”
I need to reduce the waiting time for lifts.
Why?
Because people find waiting for the lift very frustrating.
Why?
66
Why?
Because they are bored.

LOGO Side-stepping using “Unless?”
I want to reduce the frustration of waiting.
No! It is a nice rest to wait.
Unless! you make waiting interesting by providing
some sort of entertainment.
67
some sort of entertainment.

LOGO
I need to reduce the waiting time for lifts.
Unless I can get people to accept the waiting time in some
way.
Either I need to reduce the waiting time for lifts.
Or .reduce the number of people using them.
68
Or .encourage alternative ways for people to get together.
Or put people who communicate with each other a lot on
the same floor.
No! the waiting time is perfectly acceptable, stop fussing!
No! let’s make use of the time for corporate communications.
What about a notice board.

LOGO
The lifts are inadequate.
Unless I can speed them up
Either the lifts are inadequate
Or too many people are using them
69
No! slow lifts are fine, they encourage informal
communication.
It is boring waiting.
Unless you make it interesting.

LOGO
Keep stepping up
until you discover
your true goal
Sidestep to another
way of achieving
this goal
Or!
Unless!
70
I’ve hit
a difficulty
Why?
Step down to find
a way of achieving
this in practice

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Creative Management: Lecture on Corporate Creativity