Welcome to the Paint and Pipet Podcast

Introduction of Guests

• Jeremy Utley welcomes listeners to the podcast and introduces Professor Linda Hill from Harvard Business School.

• The scheduling of this episode has been in progress since May, highlighting both guests' busy schedules.

Discussion Topics Overview

• Jeremy outlines three main topics for discussion:

• Linda's past work, particularly on "Collective Genius."

• Her current research.

• Insights into her personal research process and creative practices.

The Role of Leaders in Innovation

Redefining Leadership

• Linda emphasizes that a leader's role in innovation is not about setting a vision but creating a community capable of generating new ideas.

• This perspective challenges conventional definitions of leadership focused on vision and motivation.

Insights from Research

• Linda references John Kotter’s distinction between leadership and management, where traditional leadership involves communicating a clear vision.

• Exceptional leaders in innovation are often visionaries but do not rely solely on having a predetermined vision when leading change.

Understanding Innovation

• In innovative contexts, leaders may not have a clear answer or direction; they focus instead on identifying problems that need solving.

• The emphasis shifts from followership to co-creation among team members during the innovation process.

Building Community for Innovation

Key Components of Leading Innovation

• Leaders must foster collaboration, experimentation, and learning within diverse teams to drive innovation effectively.

• A sense of purpose or understanding the 'why' behind an initiative is crucial for engaging team members rather than simply dictating 'what' needs to be done.

Example from Google

Understanding Leadership in Innovation at Google

The Challenge of Data Storage

• A leader at Google faced the challenge of storing vast amounts of data for Gmail and YouTube, which required a different approach than traditional search data storage.

• The SVP of Technology acknowledged the complexity of the problem and emphasized the need to create an environment conducive to tackling it, highlighting the importance of understanding "why" this issue mattered.

Creating a Sense of Purpose

• The leader aimed to instill a shared purpose among team members, connecting their work to Google's mission of providing access to information.

• Establishing community values and rules was crucial for fostering trust and encouraging risk-taking necessary for solving complex problems.

Collaborative Problem Solving

• The leader openly communicated the problem to everyone, inviting ideas and solutions from his team, which led to various coalitions forming around potential solutions.

• Two main groups emerged with distinct approaches; he empowered them to organize themselves and tackle the problem collaboratively over nearly two years.

Learning Through Experimentation

• As teams collaborated, they learned through experimentation, gradually moving closer to viable solutions while ensuring that insights from both groups were preserved.

• It was essential not only to select one solution but also to retain learnings from all efforts without creating a competitive loss mentality among teams.

Fostering Autonomy in Teams

• Despite pressure from engineers for direct answers or leadership direction, the SVP insisted on allowing teams autonomy in exploring solutions rather than dictating outcomes.

• He encouraged asking critical questions during experiments while promoting healthy competition between groups as part of their learning process.

Resource Allocation Challenges

• Leaders grappled with resource allocation as employees had existing responsibilities while engaging in new experimental streams; finding balance was key.

• Many engineers preferred clear directives but risked losing talent if they felt stifled; thus, maintaining autonomy became vital for retention and innovation.

Utilizing 20% Time Effectively

• At Google, there was a policy allowing employees 20% time for personal projects; however, most used this time on issues directly related to their primary work challenges.

Innovation as a Voluntary Act

The Nature of Innovation

• Ed Catmull, former president of Pixar, emphasizes that innovation is voluntary; leaders cannot force it but must create an environment where team members feel invited to innovate.

• Most individuals in innovative teams spend only about 5% of their time on projects not directly related to immediate business needs, highlighting the challenge of fostering creativity within structured environments.

Leadership Dynamics in Innovation

• Leaders often face a paradox when balancing visionary leadership with the need for steady operations; they must oscillate between these roles effectively.

• The speaker notes that traditional views on leadership tied closely to vision may overlook other essential aspects necessary for managing innovation.

Managing Leadership Tensions

Key Imperatives of Leadership

• The discussion introduces two books authored by the speaker, one focusing on leadership imperatives: managing oneself, one's network, and one's team.

• In "Collective Genius," six paradoxes or tensions are identified that leaders must navigate to foster innovation while maintaining operational stability.

Versatility in Leadership Styles

• Effective leaders demonstrate versatility by knowing when to adopt a top-down approach versus a bottom-up strategy depending on the context and needs of innovation.

• Vision remains important; however, successful organizations often require both visionary thinking and practical management strategies.

Navigating Present and Future Challenges

Balancing Urgency and Patience

• Leaders must balance urgency with patience; while innovation takes time, there are pressing business needs that require immediate attention.

• An example is given regarding YouTube's launch at Google—leaders had to prioritize urgent tasks while being patient with the development process.

Strategic Problem Solving

• Leaders should focus on identifying future market trends and customer needs while solving present problems efficiently.

• This involves prioritizing tasks correctly so solutions can be delivered timely without compromising quality or thoroughness.

Organizing for Action vs. Planning

Acting Your Way Forward

• The distinction between planning forward versus acting forward is crucial; effective organization for action leads to better outcomes than merely relying on plans.

Innovative Leadership and Organizational Structure

The Role of Innovation in Organizations

• Discussion on the innovative nature of a company led by talented individuals, specifically mentioning Ed Catmull's approach to experimentation and iteration as essential for innovation.

• Insights into how the movie-making process at this organization exemplifies cutting-edge leadership that fosters understanding and action among team members.

Organizing for Innovation

• Inquiry into how organizations structure themselves to support innovation, focusing on decision-making rights and accountability mechanisms.

• Introduction of key paradoxes in organizational structure: top-down vs. bottom-up approaches, patience vs. urgency, and improvisation vs. structure.

Balancing Structure and Flexibility

• Emphasis on maintaining minimal structures necessary for collaboration, experimentation, and learning while avoiding unnecessary bureaucracy.

• Importance of clear decision-making frameworks to eliminate ambiguity about who is responsible for decisions within the organization.

Cultivating an Innovative Mindset Across All Levels

• Explanation that all employees are viewed as potential innovators rather than separating roles into innovators versus executors; fostering a democratic mindset throughout the organization.

• Encouragement for every employee to consider their impact on customer service or stakeholder engagement, regardless of their position within the company.

Incentivizing Broad-Minded Thinking

• Challenge of incentivizing innovation across various roles; discussion on how traditional job descriptions may limit innovative thinking.

• Strategies for enabling customer-centered thinking from frontline staff to executives through transparency about organizational purpose and values.

Setting Goals and Accountability

• Shift towards using OKRs (Objectives and Key Results) instead of KPIs (Key Performance Indicators), promoting ambitious goal-setting even if not fully achieved.

• Example from Procter & Gamble where business unit heads were consulted on measuring innovation success based on their unique contexts along the S curve.

Leadership Beyond Formal Authority

• Recognition that effective leaders must operate beyond formal authority by understanding local conditions; emphasis on co-created solutions with teams.

Understanding the Role of Expertise in Innovation

The Dangers of Expertise in Innovation

• The speaker discusses the inherent danger of expertise within organizations, particularly regarding innovation. While expertise is often valued, it can hinder creative thinking and adaptability.

• A case study from Cleveland Clinic Abu Dhabi illustrates how leaders navigated the COVID-19 pandemic by treating their strategies as "working hypotheses," emphasizing the need for rapid learning and adaptation.

• The CEO highlighted that traditional expert knowledge may not apply to new situations like COVID-19, necessitating a fresh perspective from novices who could ask fundamental questions.

• To foster innovation, teams included novices who were encouraged to voice their thoughts without fear of dismissal by experts. This approach aimed to challenge existing assumptions.

Creating an Inclusive Culture for Innovation

• An example from Lockheed Martin's Skunk Works demonstrates how established experts initially dismissed innovative ideas from less experienced individuals, showcasing a common bias against novice contributions.

• Dr. Sui at Cleveland Clinic leveraged his authority to support novice ideas, creating an environment where all voices were heard and valued despite hierarchical norms.

• Communication channels were established allowing frontline staff (e.g., kitchen workers) to report critical information directly to leadership, ensuring vital insights reached decision-makers quickly.

• Daily cross-functional huddles facilitated updates across various organizational levels, promoting transparency and collaboration while empowering lower-level employees to escalate important issues effectively.

Understanding Variants and Innovation in Healthcare

The Challenge of Identifying Variants

• Acknowledgment of the complexity in understanding different variants of a virus, with at least seven or eight variants identified early on.

• Some variants exhibit varying levels of severity, affecting demographics differently; some are more contagious than others.

• Emphasis on the importance of data and digital technology in informing healthcare decisions.

Evidence-Based Decision Making

• Innovative companies prioritize sharing evidence behind their decisions, encouraging transparency over mere opinions.

• Discussion pivots to personal experiences with innovation, highlighting the speaker's dual role as a researcher and practitioner.

Personal Journey with Innovation

• Introduction to the concept of "ET" (Emerging Talent), illustrated through an octopus metaphor representing intelligence and adaptability in learning.

• The octopus symbolizes collaboration and experimentation essential for innovation within organizations.

Collaborating with Emerging Talent

• Recognition that continuous learning is vital; younger collaborators bring fresh perspectives to research projects.

• Mention of Emily True Love, a young co-author who contributed significantly to a seminal work despite her non-traditional background.

The Value of Diverse Perspectives

• Importance of diverse viewpoints in fostering innovative thinking; Emily’s unique background as an English major enriched the collaborative process.

Understanding Leadership Dynamics

The Importance of Openness in Leadership

• Leaders often wonder if their team members believe they genuinely want to hear their opinions.

• To reinforce this openness, leaders can ask team members for feedback and clarity on tasks, fostering a proactive environment.

• Team members create structures to help the leader understand how to work effectively with them, indicating a collaborative approach.

• Leaders should encourage reflection by asking team members what they need from them to perform at their best.

Encouraging Passion and Innovation

• Engaging with team members about their interests can lead to innovative projects that may not seem directly relevant initially.

• A notable example includes working with a passionate individual who wanted to learn about America's Cup Syndicates, showcasing the value of pursuing diverse interests.

• Leaders must assess the relevance of such pursuits based on the team's research and passion rather than dismissing them outright.

Building Connections Through Shared Interests

• Understanding what drives team members allows leaders to support initiatives that align with both personal passions and organizational goals.

• Exploring seemingly unrelated fields (like sports innovation in New Zealand) can yield valuable insights applicable across various domains.

Insights on Working with Startups and Design Thinking

Shifting Focus to Startups

• Linda Hill expresses admiration for the principles embodied by her colleague, indicating a discussion about practices in leadership and innovation.

• The conversation shifts towards Linda's recent focus on working with startups, highlighting her mindset regarding client engagement and external interactions.

• She describes herself as opportunistic yet attentive, emphasizing the importance of being aware of emerging trends in the startup ecosystem.

Learning from Design

• Linda recounts her initiative to learn about design by approaching the Dean at Harvard Business School, recognizing its growing significance in business.

• She joined the board of Art Center College of Design to immerse herself in design thinking and practices, aiming for a deeper understanding through direct involvement.

• Her association with designers led to opportunities such as equity participation in a design firm known for creating iconic spaces like Apple Stores.

Collaborations and New Ventures

• Through networking within the design community, she began collaborating with Pixar to adapt collective insights into practical applications for executives.

• Former students approached her to leverage her expertise, leading to the establishment of Paradox Strategies—a firm focused on innovative solutions.

• They are developing an AI-driven dashboard aimed at helping utilities meet sustainability goals through data analysis.

Navigating Competing Interests

• Linda discusses how she prioritizes projects amidst competing interests, reflecting on what deserves her attention during uncertain early stages.

• She shares experiences from joining an Israeli high-tech Foundry board, gaining insights into venture capital and technology sectors that inform her other ventures.

Embracing Novice Perspectives

• Highlighting collaboration dynamics, she notes that while she contributes intellectual capital, others bring entrepreneurial experience essential for scaling businesses.

• Linda emphasizes the value of being a novice in certain arenas despite her extensive expertise—encouraging listeners to seek out areas where they can learn anew.

How CEOs Can Embrace Growth Mindset in the Age of Generative AI

The Importance of Expertise and Community

• Emphasizes that individuals should lean into their own expertise rather than becoming novices, highlighting the value of personal growth.

• Discusses a group of CEOs called "junto," inspired by Ben Franklin's Leather Aprons Club, focusing on exploration and innovation across various sectors including hospitality, real estate, and tech.

Navigating Tech Innovations as a CEO

• Introduces Sanjay Poonen, a former student now CEO of Cohesity, who raises questions about how growth mindset CEOs should operate amidst technological advancements like generative AI.

• Reflects on discussions with digital natives regarding senior executives' openness to adopting new technologies such as generative AI.

Balancing Innovation with Risk Management

• Highlights the tension between digital natives wanting to utilize cutting-edge technology and executives managing associated risks.

• Stresses the importance for CEOs to engage in dialogue with different constituencies within their organizations to understand varying perspectives on technology use.

Understanding Generative AI's Complexities

• Points out that transparency from leadership is crucial; employees may leave if they feel uninformed about executive concerns regarding technology adoption.

• Notes ongoing research into generative AI's unpredictable behaviors (e.g., hallucinations), emphasizing the need for understanding before implementation.

Engaging Diverse Perspectives for Effective Leadership

• Encourages leaders to communicate with various groups—those using technology daily, researchers cautioning against hasty adoption, and other executives developing policies around it.

• Warns that while exploring generative AI’s potential benefits, ethical dilemmas must also be addressed due to its complexities.

Conclusion: The Role of Dialogue in Embracing Change

• Advocates for diverse conversations among stakeholders to explore both possibilities and risks associated with generative AI.

How AI Impacts Team Collaboration and Problem Solving

The Role of AI in Organizations

• Leaders are exploring how AI affects their teams' problem-solving abilities and collaboration.

• A conversation with a leader from a multinational organization revealed she does not use ChatGPT, highlighting a disconnect between awareness of AI's importance and its practical application.

• Many individuals feel overwhelmed by immediate tasks, leading them to postpone engaging with innovative tools like AI until they have more time.

Engaging with AI Effectively

• People often seek definitive answers from AI rather than fostering meaningful conversations, resulting in mediocre responses.

• Emphasizing the importance of dialogue over mere information retrieval can enhance the quality of interactions with AI.

• Suggesting personal emotional questions for discussion with AI can lead to richer insights due to the user's context and care about the topic.

Experimentation and Growth Mindset

• Encouraging individuals to experiment personally with AI can foster better understanding and integration into workflows.

• A CEO shared experiences where team members creatively used ChatGPT for tasks, demonstrating innovative applications of generative AI in everyday work.

The Art of Prompting vs. Conversational Engineering

• New careers will emerge around effective prompting techniques; however, focusing on conversational skills may be more beneficial than just prompt engineering.

• Kevin Kelly's approach involves extensive back-and-forth interactions with AI to refine outputs, emphasizing that successful engagement requires ongoing dialogue rather than one-off prompts.

Scaling Innovation within Organizations

Leadership Roles in Innovation

The ABCs of Great Leadership

• The discussion begins with the importance of three key roles in leadership: Architect, Bridger, and Catalyst. These roles are essential for creating an environment conducive to innovation.

• Emphasizes the need for collaboration and experimentation with partners, such as vendors. A case study is presented about a group that successfully conducted Pfizer trials in just 266 days due to strong partnerships.

The Catalyst Role

• Highlights the significance of identifying other parties within an ecosystem that require support for innovation. For example, MasterCard collaborates with strategic clients to enhance their cybersecurity capabilities.

• Discusses a compelling story about a company called Avatar, where engineers proposed teleportation without mass by collaborating across various sectors to build necessary infrastructure.

Facilitating Collaboration

• The role of the Catalyst involves facilitating collaborations across ecosystems to drive innovation. This requires understanding what others can produce that will aid your own innovative efforts.

• Stresses that leaders must embody the roles of Architects, Bridgers, and Catalysts while operating beyond their formal authority to foster innovation effectively.

Challenges in Innovation Structures

• Introduces the concept of ambidexterity in organizations—balancing present operations with future innovations. However, many structures fail because innovations do not integrate back into current practices.

• Shares insights from research on ten leaders who successfully scaled innovations by effectively bridging and catalyzing collaboration between different organizational parts.

Future Discussions