Tag Archives: innovation

"They make the point we have been making at The Human Company for some time now: only companies that make sustainability a goal will achieve competitive advantage. "

Intuitive Intelligence: The New Mindset for Sustainability

Posted on September 19, 2009 by Francis

In their recent article Why Sustainability Is Now the Key Driver of Innovation [Harvard Business Review September 2009], Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami argue that sustainability isn’t a burden on the bottom line; instead, they make the case that going green can lower costs and increase revenues.

They make the point we have been making at The Human Company for some time now: only companies that make sustainability a goal will achieve competitive advantage. Corporate sustainability does not bloom without effort, however, and the authors describe a 4-phase maturity model for the process:

In our experience, we find most that far too many companies view sustainability as a “corporate social responsibility” and not as an engine for growth.

Let’s call this STAGE 0: GreenWashing – paying lip-service to sustainability. In this phase,companies view sustainability as a PR exercise, as a community building initiative, but they let it fall far of its true potential. For them, this is corporate citizenship, not competitive advantage.

At this phase, we also see that there is no accountability for sustainability. Often, it is the CEO’s job. This is a cop-out of course, but the data is clear:

To add insult to injury, the next step often ends up with the “coronation” of a corporate “sustainability officer” – which again is simply the wrong approach.

Fortunately there are examples of companies that are using intuitive intelligence to challenge their traditional assumptions and create real solutions for lowering costs, eliminating waste, creating new products and services, and even changing their global business models.

Wal-Mart, for example has taken the greening of its supply chain very seriously. The release of data on its scorecard for the environmental
friendliness of its vendors’ product packaging, is a clear, measurable initiative which is already impacting over 2000 suppliers.

The Wal-Mart scorecard evaluates the “green quotient” of product packaging based a number of attributes, such as:

Greenhouse gas emissions related to production
Materials used
Product to packaging ratio
Cube utilization
Recycled content usage
Innovation
The amount of renewable energy used to manufacture the packaging
The recovery value of the raw materials and emissions related to transportation of the packaging materials.

Wal-Mart also announced plans for an
similar scorecard for their electronics suppliers in 2008. Criteria for the electronics scorecard includes:

Energy efficiency
Durability
Upgradability
End-of- life solutions
Size of the package containing the product
Ability
to use innovative materials that reduce the amount of hazardous
substances, such as lead and cadmium, contained in the product

View a Wal-Mart green supplier scorecard here>>

Then there’s GE. Of course, we’ve all seen their “ecomagination” campaigns on TV and print, but they have have taken that all important real step to transforming their product innovation process in ways that can only be described as radical.

Instead of appointing a GE Tsar of sustainability, Jeffrey Immelt brought in Professor Vijay Govindaran as their Chief Innovation Consultant. His job, to work with specific divisions to identify real opportunities for global products and services.

The approach they created “reverse innovation,” is outlined in How GE is Disrupting Itself (Harvard Business Review, October 2009). VG describes their thinking as follows:

More information on the process here >>

Why does intuitive intelligence help you think in sustainable terms?

The answer is very simple.

Our instinct is responsible for the survival of our species. We can reasonably say that human instinct is pretty reliable because it’s helped us survive successfully for thousands of years.

Our modern thinking, however, relies on our analytical intelligence. It’s brought along the prowess of the scientific mind. The problem with this approach is that without genius scientific thinking can be very linear and very exclusive – to the point that it excludes our instinct not complying with reason.

Intuitive Intelligence blends our analytical mind with our instinctual aptitudes. Necessarily, it brings balance to our thinking. The Intuitive Compass™ facilitates sustainable business thinking and helps us design sustainable business models.

Intuitive Intelligence can be learned and developed, provided we accept that today most of us are not thinking but simply being logical, we can open up to this new mindset.

Why is it necessary to use intuitive intelligence?

Because we will not be able to solve current problems with the outdated way of analytical thinking that created these exact problems.

We face a sustainability imperative. We have to develop and use an intelligence that can think in sync with our ecosystems – in other words an intelligence that understands and respects the creative process of life.

All great scientists recognize that the history of our universe is the consequence of a number of fundamentals laws explained by science as well as a long series of unexplained accidents. Logic alone cannot explain everything. The same goes for business.

In order to help you engage the creativity of your teams, in order to inspire long lasting respectful relationship with consumers, in order to design innovative, sustainable and profitable business models, in order to lead organizations into a successful and sustainable future we developed an original model: The Intuitive Compass™.

How does the Intuitive Compass™ help companies achieve breakthroughs in sustainable innovation?

We use the The Intuitive Compass™ as a tool to assess and
chart progress as companies (and executives) learn to harness intuitive
intelligence in four key areas:

Strategy: how to employ
intuitive intelligence to create sustainable, innovative business
models which deliver real value to customers in their local environment.

Leadership: the transformative power of intuitive intelligence energizes and builds movements – with clarity of vision and purpose.

Work Culture: the ecosystem health of your business culture is reflected in your bottom line results. The Intuitive Compass™ helps create the open culture you need to succeed in the intelligent economy.

Consumer Needs: map your customers needs and wants using The Intuitive Compass™ – creating a value innovation agenda for your customers.

We help companies and leaders get a “southwest” perspective, and focus on creating sustainable value. Our mantra: sustainable business is a the core of future business success.

Case Study: Creativity versus Results at L’Oréal

Posted on May 28, 2009 by Francis

According to a recent report in the Wall Street Journal, L’Oréal SA, the world’s largest cosmetics maker, reported flat sales
for the first quarter of 2009 as consumers shied away from its luxury
skin creams and shampoos in favor of its cheaper brands. The maker of products ranging from Giorgio Armani perfume to Lancôme
skin cream and Maybelline eye shadows said sales increased 0.3% to
€4.37 billion ($5.83 billion) in the first three months of 2009.
Jean-Paul Agon, L’Oréal’s chief executive, said that he would not offer
specific guidance for the year but that results would “improve” during
2009.

After accounting for the effect of currency fluctuations, sales fell
9.3% in Western Europe and 5% in North America. This shortfall was
partly offset by an increase in revenue in Asia.

Sales at L’Oréal’s luxury cosmetics division fell, while sales of its consumer drugstore lines increased slightly.

This is an unfortunate turn for L’Oréal which has always been known for its commitment to scientific research and exceptional financial results.

In fact, you might say there is an unresolved tension in its culture between creativity and business results. This tension is visible even on its website. If you read about the “profiles they are looking for” under the marketing category, here’s a description you’ll find:

Creativity, imagination, openness to new ideas – coupled with the highest professionalism.
• Project-oriented, natural team player, at ease working with others in an environment of entrepreneurial challenge.
• Global-minded, flexible, able to juggle multiple priorities.
• Strong analytical thinker, excellent communicator.

You have a keen eye on the latest fashions, a finger on the pulse of emerging consumer and cultural trends. Highly developed interpersonal skills, a passion for results. The personality to make a difference.

Diagnosis: L’Oréal – When East dominates West…

For the past few years I have been working with L’Oréal to change this dynamic.

The challenge: help marketers and managers develop a sensitivity to the creative nature of the beauty
product development process and specifically gain an understanding
for the process of research and development.

When the cosmetic group decided to develop a world wide talent appraisal process Sir Lindsay Owen Jones articulated the need to develop a competence key to the success of the group in the eye of the CEO, and that is: sensitivity to métier. What Sir Lindsay Owen Jones was aiming for was to develop a global, shared understanding for beauty products development, for L’Oréal customers, and for a number of other confidential important characteristics identified by the CEO as key factors for success in the beauty industry.

The Human Company was commissioned to research how to define this specific aptitude and how to develop it and train for it. We developed an international training track that is seen today as one of the most successful and inspiring training program available at L’Oréal.

Our approach consists in helping marketers understand how to engage and inspire creative people to contribute the best of their creativity. We used the The Intuitive Compass™ to highlight the tension between results-driven managers and creative teams.

Our analysis: L’Oréal has a product innovation driven business model whereas most of its competitors have often a market-driven model. The company believes in scientific innovation to promote growth. Its founder was a scientist. It is how L’Oréal sustained 20 years of double-digit growth and became the world leader in cosmetics. There is, as I mentioned earlier, a tension in its culture between creativity and business results.

Results: We helped L’Oréal’s teams understand the perspective of the different teams. The creative teams learned about the business aspects they had neglected, while the managers and marketers were helped to understand the creative process. The bridge is intuitive intelligence. Our training program is seen today as one of the most successful and inspiring training program available at L’Oréal. (Average rating: 19.5/20) because it is very relevant with the innovation imperative prevailing in the beauty Industry, articulated by the CEO Jean Paul Agon in his mandate.

Definition: What is Intuitive Intelligence?

Posted on May 8, 2009 by Francis

How many times do we see a business leader make a decision without a lot of data, seemingly without deliberation, and make the right call?

Not very often, in the “western” world.

But every so often we encounter that rare leader who makes impossible decisions and, time and again, gets it right. This is not an accident, we tell ourselves, as we look for clues to try to understand this phenomenon we are witnessing.

What we are experiencing is Intuitive Intelligence in action.

Intuitive Intelligence lies beyond the boundaries of science and analytics. It bridges the realms of reality and imagination, reason and instinct, material and spiritual dimensions of human existence. Intuitive Intelligence is non-linear, a key skill for success in the new economy, an economy driven by constant disruption and chaos.

Intuitive Intelligence is defined as the combination of 4 abilities:

– The ability to think holistically

– The ability to think paradoxically

– The ability to listen and connect to oneself and others

– The ability to lead by influence rather than design

THINK HOLISTICALLY

Business is not about money. It’s not even about shareholder value (ask Jack Welch!).

Business is about servicing our communities and allowing people to express their talents and genius for the betterment of our society.

Money is one very necessary component of business and it keeps the human engine going but it is not the engine.

Business success is achieved through the power of human creativity and organization and depends on individuals – people – complex beings in relationship with an unpredictable environment called nature. No human experience can be fully represented by a mathematical equation (ask artificial intelligence experts!) and the unpredictability of nature cannot be comprehended, let alone mastered.

Yet we realized only recently that besides the financial bottom line there should be other criteria to set business goals and measure the results of human organizations. The business impact on the surrounding ecosystems and its influence on humans are factors rarely placed at the center of corporate strategy. Intuitive Intelligence™ helps us move from a conservative fragmented business approach that focuses on financial results as the ultimate goal, to a wholesome business view where people, society and natural ecosystems are all part of the picture, with money seen as only simply a resource, a means to an end. All aspects of business are inseparably taken into account as a whole for maximum efficiency and sustainability.

THINK PARADOXICALLY

As much as business can be taught, it is still a rather random process similar in this to the creative process of life. Many leaders focus on economic results believing that it is the shortest way to achieve their goals. The paradox is that empowering people and relationships are the key to better financial results. In 2004 neuroscience was finally able to establish a fact known for millennia by ancient civilizations: the human mind is more unconscious than it is conscious. For that matter, engaging the unconscious in people is more effective than focusing on the conscious part of their mind. This is the paradoxical thought process. As psychologist David G. Myer puts it: “under the surface lies a lot of intelligence above a lot of delusion.”

LISTEN FOR THE UNUSUAL

In order to be in touch with the unconscious aspect of our lives we need to pay attention to subtle details and to our emotions, which are indicative of our perceptions, whether conscious or unconscious. Our emotions fashion our thoughts, which lead to our actions; our actions turn into habits that finally shape our character. And as we know, character is essential to leadership. A charismatic leader will communicate without necessarily taking in the other person’s emotions, perceptions and environment and will attract dedicated followers; a leader who demonstrates self-awareness and manifests empathy will empower and inspire people with character who are more likely to take risk and think autonomously – two attitudes well needed to succeed in times of radical change.

This kind of sensitivity operates at a fundamental level of equality between individuals and induces trust, respect, and interdependence three necessary factors to foster creativity and lead a culture of high performance. Moreover when a leader is able to listen to others and oneself with such a sensitivity he or she takes in all sorts of creative information about consumers and their environment, about an industry and its trends.

LEAD BY INFLUENCE

Innovation is one of the most critical factors for success in today global economy. It relies on systems and processes, yet it depends even more on the creativity of people and corporate cultures. Creativity finds its inspiration beyond the motivation of financial gain or economic achievement. It stems from dreams and ideals and pertains more to utopia than pragmatism.

Organizations seeking innovation cannot rely only on a pragmatic leadership model rooted in a purely economic approach (leadership by design). Such a leadership model sets goals and objectives, covers budgets and schedules and relies on the alignment of teams to execute the corporate vision. Leadership by influence, however, is on the opposite side of the spectrum. It perceives any human organization as a living interconnected web and the relationship with consumers as a dynamic collaborative system. And for that matter it focuses on facilitating and guiding the natural emergence of creativity to reach innovative business solutions. It puts the emphasis on engaging and influencing teams and consumers rather than motivating and controlling them. It conveys a strong sense of meaning within visions and goals to reach that place in each one of us where creativity thrives and can be awakened. In practical terms, a leader guided by intuitive intelligence ensures that all systems and processes are in the service of the human factor and its ecosystem rather than an isolated attempt to rationalize business and reach financial goals. He or she inspires uniquely magnetic organizations fired up with enthusiasm and a strong sense of possibility. In this way, leading with intuitive intelligence creates virtuous circles and enables teams to believe, manifest autonomy, and succeed.

Intuitive Intelligence is a powerful leadership attribute. It is not a tool to devise the future, but an instrument that points our attention towards the invisible. Intuitive Intelligence brings us closer to understand the transformative and creative nature of our organizations as well as their interdependence with their environments. It is a means to take in unexpected information or paradoxical data and to feed our analytical and rational thinking with subtle creative perceptions. In this way intuitive intelligence bridges the rational and the irrational realms, the conscious and unconscious dimensions, the inner and the outer, the material and immaterial aspects of any business and allows for truly evolutionary leadership.

In our next post we’ll introduce a new tool to help foster Intuitive Intelligence, both in organizations and individuals: The Intuitive Compass™.