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Innovation and Technology

Ways to Grow a Company

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Ways to Grow a Company

Innovation Without Luck: A Framework for Growth

The term “innovation” is often associated with geniuses turning startups into gold mines, but the reality is that most companies struggle to identify the right opportunities. Every company aspires to be as innovative as these startups, but many invest in or buy them without a clear understanding of what they’ll yield. According to a series of three surveys conducted over six years, while 80% of executives know that their companies’ success depends on introducing new products and services, more than half agreed that their companies dedicate insufficient resources to support innovation.

The Simple Categories of Innovation

Innovation is often made unnecessarily complicated, but it can be boiled down to six simple categories with corresponding examples from Apple:

  • New processes. Sell the same stuff at higher margins: Cut production and delivery costs, automate for efficiencies, cut fat in the supply chain or manufacturing, and utilize robots.
  • New experiences. Sell more of the same stuff to the same people: Increase retention and share by powerfully connecting with customers. An example is the Apple Store experience, which many would argue is as compelling as the company’s products.
  • New features. Sell enhanced stuff to the same people: Add improvements that drive incremental purchases. An example of this is every new phone Apple releases, with better cameras and so on.
  • New customers. Sell more of the same stuff to new people: Introduce the product to new markets with needs similar to your core, or to markets where it might address a different need. For Apple, this goes back to reaching the mainstream rather than the design community.
  • New offerings. Make new stuff to sell: Develop a new product — not just enhancements. Find new needs to solve within existing markets, or invest in a new category. Think HomePod or the iPod.
  • New models. Sell stuff in a new way: Reimagine how to go to market by creating new revenue streams, channels, and ways of creating value. This can be as simple as moving to a subscription model, or as transformative as Apple’s creating iTunes.

An Intentional Approach to Innovation

Deciding which ways to grow needs to be intentional — not driven by luck. Innovation budgets are finite, so allocations of your scarce resources should reduce risk and focus on the best bets. A balanced approach is key, just like a retirement fund needs to be balanced among high and low risks and rewards.

The following innovation budget allocation model shows the relationship among these six simple ways to grow, in the context of the four quadrants of the portfolio (evolutionary, differentiation, fast fail, and revolutionary), each of which gets a percentage allocation of the innovation budget:

  • New processes fall outside the innovation portfolio (no budget allocation).
  • New experiences and new features are in the evolutionary quadrant (about 40%–60% of the budget).
  • New customers are in the fast fail quadrant (about 10%–20% of the budget).
  • New offerings are in the differentiation quadrant (about 10%–20% of the budget).
  • The combination of both new customers and new offerings are in the revolutionary quadrant (about 5%–10% of the budget).
  • New models can fall anywhere in the portfolio.

The Easiest Goal in Innovation

The easiest goal in the innovation pie is to maintain relevance to your core market through enhancements — with new features for your current offerings or the experiences that deliver them. It’s easy because it focuses on a market you already know and on products you already know how to deliver.

Focused Bets on Revolution

A smaller portion (5%–10%) for focused bets on revolutionary, high-risk opportunities with new offerings to new customers. In this quadrant, you focus on a big idea, using agile approaches to break it apart to see which elements drive value through continuous assessments of desirability, since you don’t know for sure what the market values (even the idea itself). If you continue to clear hurdles, you stand a chance to launch a game-changer that fills an unmet need.

Conclusion

FAQs

Q: Why is innovation often made unnecessarily complicated?

A: Innovation is often overcomplicated because companies try to tackle too many ideas at once, without focusing on the most promising opportunities.

Q: What is the easiest goal in innovation?

A: The easiest goal in innovation is to maintain relevance to your core market through enhancements — with new features for your current offerings or the experiences that deliver them.

Q: What is the key to success in innovation?

A: The key to success in innovation is to focus on the most promising opportunities, allocating resources intentionally and balancing risk and reward.

Innovation and Technology

5 Essential ChatGPT Prompts

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5 Essential ChatGPT Prompts

As Artificial Intelligence Reshapes the Workplace, HR Professionals and Recruiters Discover Powerful Ways to Leverage ChatGPT

The Secret to Effective Prompt Writing

From creating enticing job descriptions to quickly sifting and assessing candidates, there are many ways that ChatGPT and similar generative AI tools can help HR and recruiters work smarter. The secret lies in creating killer prompts – the instructions that tell chatbots and language models what we expect them to do. Just like when we’re asking humans to help us, the more precise we are, the more likely it is that the AI will know exactly what we want to do.

Prompt Writing: A Valuable Skill in HR and Recruitment

Prompt writing – sometimes called prompt engineering – is increasingly becoming a valuable skill in many areas of business. So, if you’re involved in HR or recruitment, here are some examples of prompts that can be used to help save time and cut repetitive work.

Conduct A Skills Gap Analysis

Identify areas where your organization may have to make new hires or upskill existing employees to meet its future needs:

I need your help to identify where there are skills gaps in our workforce that are preventing us from meeting our business goals. I will provide an overview of our strategic business priorities, as well as a skills assessment of our workforce and leadership teams. When you have enough data, use the information to generate a report highlighting areas where we should focus on recruitment or reskilling in order to achieve our objectives.

Write Great Job Descriptions

This prompt will take you through the steps of creating a job description that will attract candidates for any vacancy:

Act as a recruitment copywriter and help me write a job description optimized for generating applications. Start by asking me all the necessary details one question at a time (e.g., title, summary, location, responsibilities, skills, organization fit, growth opportunities, compensation, and benefits). Once you have enough information, craft a clear, professional, and engaging description using active language, bullet points, relevant keywords, and a strong call to action to improve search visibility.

Review Applicant’s CVs And Prepare Interview Questions

This prompt compares CVs against a job description, highlights how well they fit the role requirements and suggests questions to ask them at the interview. Be careful to comply with any data protection laws that apply to your business, for example, by removing personal data where necessary:

Please help me screen the CVs of job applicants. The job we are screening for is [insert job title], and this is the job description [paste job description]. I will upload CV files, and you will provide a summary of how each applicant matches up to the skills, experiences, and qualifications required for the role. Based on those insights, please also provide three questions I can ask the candidate in an interview to further assess their suitability.

Communicate A Company’s Enterprise Value Proposition

An Enterprise Value Proposition (EVP) outlines the benefits and opportunities that your company offers its employees. This prompt helps create material to let potential applicants know why it’s a great place to work:

Please help me create engaging EVP content for my company, [insert company name], which effectively and concisely communicates why it is a great place to work and is designed to help us be attractive to top talent. Ask questions, one at a time, to gather the information you need, and when you have enough, generate copy that can be used on our website, recruitment portals and social media channels.

Review Recruitment Processes To Identify And Remove Bias

This prompt helps identify and eliminate potential sources of bias in your hiring processes, ensuring your recruitment practices are fair and inclusive for all candidates:

Please act as a recruitment specialist and review our recruitment processes to ensure they are inclusive and free of bias. Ask me questions, one at a time, or ask me to provide information about any element of our recruitment processes that you need to know about in order to identify opportunities for bias to affect our recruitment outcomes. If you identify areas of concern in relation to the potential for bias, you can ask follow-up questions to clarify or ensure you have a full overview of the existing process. When you have enough information please provide an evaluation as well as advice on how we can further remove bias and achieve more inclusive outcomes.

Conclusion

As organizations continue to embrace AI tools in their HR and recruitment processes, the key to success lies in crafting effective prompts that align with your specific needs and objectives. By adapting and building upon these prompts, you can create a more efficient, inclusive, and strategic approach to talent acquisition and management. Remember that while AI is a powerful tool, it works best when combined with human insight and expertise.

FAQs

Q: What is prompt writing, and why is it important in HR and recruitment?
A: Prompt writing is the process of creating clear and specific instructions for AI tools to follow. It is important because it enables HR and recruitment professionals to get the most out of AI tools and achieve their goals more efficiently.

Q: How can I use ChatGPT to write great job descriptions?
A: You can use ChatGPT to write great job descriptions by providing it with the necessary details, such as job title, summary, location, responsibilities, skills, organization fit, growth opportunities, compensation, and benefits. The AI tool will then craft a clear, professional, and engaging description using active language, bullet points, relevant keywords, and a strong call to action.

Q: Can I use ChatGPT to review applicant’s CVs and prepare interview questions?
A: Yes, you can use ChatGPT to review applicant’s CVs and prepare interview questions. Simply provide the AI tool with the job description and CV files, and it will provide a summary of how each applicant matches up to the skills, experiences, and qualifications required for the role. It will also suggest questions to ask the candidate in an interview to further assess their suitability.

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Innovation and Technology

Teams Get Locked Into Behavior Patterns

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Like Siblings, Teams Get Locked Into Behavior Patterns

The Power of Habit

When we think about habits, we often think about individual behaviors, like brushing our teeth or checking our phones first thing in the morning. But what about team habits? Just like individuals, teams can develop patterns of behavior that become automatic and hard to break. These patterns can be both positive and negative, and they can have a significant impact on a team’s performance and success.

How Teams Develop Habits

So, how do teams develop these habits? It’s often a combination of factors, including:

  • Shared experiences: Teams that go through similar challenges and successes together can develop a sense of camaraderie and shared understanding.
  • Leadership: A team’s leader can influence the development of habits by setting an example, providing guidance, and reinforcing positive behaviors.
  • Culture: A team’s culture can also play a role in shaping habits. For example, a team that values creativity and experimentation may develop habits that encourage innovation.

The Benefits of Positive Habits

Positive habits can have a significant impact on a team’s performance and success. For example:

  • Improved communication: Teams that develop habits of open and honest communication can work more effectively together.
  • Increased collaboration: Teams that develop habits of collaboration and teamwork can achieve more than they could alone.
  • Better problem-solving: Teams that develop habits of creative problem-solving can find innovative solutions to complex challenges.
The Challenges of Negative Habits

Negative habits, on the other hand, can have a significant impact on a team’s performance and success. For example:

  • Conflict: Teams that develop habits of conflict and competition can struggle to work together effectively.
  • Burnout: Teams that develop habits of overwork and exhaustion can experience high levels of stress and burnout.
  • Innovation stifling: Teams that develop habits of risk aversion and caution can struggle to innovate and adapt to changing circumstances.
Breaking Free from Negative Habits

So, how can teams break free from negative habits and develop positive ones? Here are a few strategies:

  • Recognize and acknowledge: Recognize when a negative habit is developing and acknowledge its impact on the team.
  • Identify the root cause: Identify the root cause of the negative habit and address it.
  • Develop a new habit: Develop a new, positive habit to replace the old one.
  • Practice and reinforce: Practice the new habit and reinforce it through positive feedback and recognition.

Conclusion

In conclusion, teams can develop habits just like individuals, and these habits can have a significant impact on a team’s performance and success. By recognizing and addressing negative habits and developing positive ones, teams can work more effectively together and achieve their goals.

FAQs

Q: How can I identify negative habits in my team?

A: Look for patterns of behavior that are causing problems or holding the team back. Ask team members to share their observations and concerns.

Q: How can I encourage positive habits in my team?

A: Lead by example, provide positive feedback and recognition, and create a culture that values collaboration and innovation.

Q: What if my team is stuck in a negative habit and can’t seem to break free?

A: Recognize that breaking a habit takes time and effort. Work with the team to identify the root cause of the habit and develop a plan to replace it with a positive one.

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Innovation and Technology

Building a Thriving Innovation Culture

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Building a Thriving Innovation Culture

Building an Ecosystem for Innovation

Introduction

To ensure their companies stay innovative, leaders need to create an ecosystem that allows winning ideas to consistently emerge. In two decades of strategy consulting and research, the authors have learned that building such an ecosystem requires developing capabilities for exploring new ideas, experimentation, accepting failure, and working with external partners.

Exploring New Ideas

The first step in building an innovative ecosystem is to encourage employees to explore new ideas. This can be achieved by:

* Providing a platform for employees to share their ideas and get feedback from others
* Offering training and development opportunities to help employees develop their creative skills
* Fostering a culture of experimentation and calculated risk-taking

Experimentation

Experimentation is a critical component of an innovative ecosystem. This involves:

* Encouraging employees to try new things and learn from both successes and failures
* Creating a culture that values experimentation and learning from failure
* Providing resources and support to help employees experiment and innovate

Accepting Failure

Accepting failure is an important part of the innovation process. It allows companies to learn from their mistakes and improve their approach. To accept failure, companies must:

* Encourage a culture of experimentation and calculated risk-taking
* Provide resources and support to help employees learn from their mistakes
* Celebrate the lessons learned from failure and use them to improve the innovation process

Working with External Partners

Working with external partners is another important aspect of building an innovative ecosystem. This can include:

* Collaborating with other companies, startups, and research institutions to access new knowledge and expertise
* Partnering with suppliers and customers to co-create products and services
* Engaging with the broader community to stay up-to-date with the latest trends and innovations

Conclusion

Building an ecosystem for innovation requires developing capabilities for exploring new ideas, experimentation, accepting failure, and working with external partners. By implementing these strategies, companies can create an environment that fosters innovation and allows winning ideas to consistently emerge.

FAQs

Q: What is the most important aspect of building an innovative ecosystem?
A: Encouraging employees to explore new ideas and experiment with new concepts is key to building an innovative ecosystem.

Q: How can companies accept failure in the innovation process?
A: Companies can accept failure by encouraging a culture of experimentation and calculated risk-taking, providing resources and support to help employees learn from their mistakes, and celebrating the lessons learned from failure.

Q: Why is working with external partners important in building an innovative ecosystem?
A: Working with external partners provides access to new knowledge and expertise, allows for co-creation of products and services, and helps stay up-to-date with the latest trends and innovations.

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