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It seems to be more or less a fact that the more mature a company is, the harder it is to produce something totally new that deviates substantially to what has been done earlier. In order to understand this phenomenon better Bengt Järrehult makes a comparison between human and industrial life, trying to elucidate the similarities and differences between the 2 worlds.
How come that upper middle managers and entrepreneurs look at things in different ways? The answer lies partly in their personality types. It is known that certain personality types work better in certain situations than other. This is also valid for the innovation area, as Bengt Järrehult describes below.
Summer is for relaxing, but also for reading books in more depth. During his vacation Bengt Järrehult read Daniel Kahneman’s book Thinking Fast and Slow for the second time and more thoroughly. Here are Bengt’s thoughts on how Prospect Theory applies to innovation related decisions – the decisions that may seem stupid and irrational – but are they really?
“Everything has changed, even change has changed” is a proverb that is increasingly true. In this article Bengt Järrehult will describe the good old top-down or cascading approach compared to a more bottom-up or viral way.
Mar 12, 2013 | In: Innovation Psychology
The basics of Prospect Theory by Daniel Kahneman tell us that we hate to lose 3 times more than we love to win. This mindset, probably deeply engraved in our DNA, has implications on the way we develop and brand our products as we are more prone to reduce the drawbacks we have relative to our competitors rather than to improve our advantages. According to Bengt Järrehult this leads to commoditization.
Feb 26, 2013 | In: Innovation Psychology
Has your product lost competitive advantage? If your customers cannot differentiate your product from those of your competitors, most likely you have fallen into the “commodity trap”. The following article explores how this harmful phenomenon can be better understood and ultimately avoided by studying the dynamics within flocks of birds.
Jan 15, 2013 | In: Innovation Psychology
When faced with the question “Are you creative?” I have found that only the half of the audiences I speak to consider themselves creative. This is true even when you talk to people that are supposed to be creative in developing products or market plans. As innovation is partly depending on guts to dare, something that comes from self-confidence, I think it is time that we stretch our old opinion on what creativity is all about – here are 7 different ways to be creative. I am sure you can find yourself described at least in a couple of them.
Nov 06, 2012 | In: Innovation Psychology
An important topic in Innovation Management is that of motivation. What kind of incentives can an organization provide to stimulate innovation? Bengt Järrehult argues that there is no such thing as extrinsic motivation and we should really concern ourselves with working in Flow.
Oct 09, 2012 | In: Innovation Psychology
Inspired by Susanna Bill’s post regarding the importance of vulnerability for innovation, I was reminded of an eye-opening story from the book Sway by the Brafman brothers. This story may explain why we retrospectively look at what we have done and ask ourselves “how could I be trapped like that?” It also applies to companies that have an ambidextrous innovation strategy that incorporates both the “play-to-win” approach and the far more common “play-not-to-lose” approach.
Sep 11, 2012 | In: Innovation Psychology
Why is your boss neglecting the fantastic idea you came up with even though it looks promising (in your eyes at least)? And why is your boss so intent on avoiding negative situations? This is an irritating behavior many of us have experienced and one that Bengt Järrehult examines more closely in today’s blog.
Aug 14, 2012 | In: Innovation Psychology
You want to be perceived as a good innovation project member, to be appreciated for your achievements – and just to safeguard that notion some of what you do leads to a success in time – you do multiple projects in parallel. But is this really efficient and effective? Check out Bengt Järrehult’s somewhat mathematical look at multi-tasking, where the exercise of putting numbers in leads to a result that may surprise you.
Jul 17, 2012 | In: Innovation Psychology
There are different approaches to facilitating cultural change within an organization in order to promote innovation. Bengt Järrehult argues that the viral change, whereby successful changes are achieved through experimentation and then spread by different groups copying or adopting the change leads to faster and more long-lasting culture change.
Jun 22, 2012 | In: Innovation Psychology
In trying to understand why we act in a predictably irrational ways, for example choosing short-term instead of long-term rewards, Bengt Järrehult uses the metaphor of the mahout and elephant to depict the different parts of the human brain and it’s processes. In an innovation effort, how can you direct the mahout and motivate the elephant?
Apr 25, 2012 | In: Innovation Psychology
Do you often find yourself procrastinating on important, yet non-urgent matters in order to take care of the stuff that needs immediate attention? This all-too-common circumstance also takes place on a larger scale. Bengt Järrehult walks us though how to deal with the incremental and breakthrough projects at the same time
Mar 27, 2012 | In: Innovation Psychology
If you scrutinize the theories on innovation they seem to conclude for example, that ambidextrous organizations are best at handling incremental innovations rather than radical, and if we would focus more on learning, experimental organizations we would be better off… So why don’t we act accordingly? Bengt Järrehult takes a closer look at the reasons why we act against better knowing regarding innovation.