Change or Die

Think Like a CEO: How to Manage and Grow a Disruptive Innovation Next to the Core Business Section 3: Six Insight on How to grow Disruptive Innovations next to core
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Transcript

The only thing to consider is the context in which you're selling. When you go to your organization and tell them, Hey, we need to invest in innovation, the first question they're going to ask you is why? Why do we need to do this? The usual answer falls into one of two categories. Either we need to do this because you know, it'll be left behind will go bankrupt, and everything is bad if we miss this innovation, or, you know, we take the other approach and say, Oh, it's a fantastic opportunity and think about all the money that we will make if we invest in this. But actually, we need to look at whether these explanations actually work in generating action in an organization.

And well, what does the evidence show? Well, let's just look at one academic study undertaken by Harvard Medical School called change or die. What was the study about? Well, they looked at 500 people that have recently have undergone a heart operation, and they followed them over time after they have left the hospital. So after they left the hospital, the doctor set him down and I basically told him if you want to live longer or minimize the chance of death, there are certain things that you need to do. What kind of things?

Simple things like maybe stop smoking exercise regularly, eat wisely, don't eat unhealthy food, these type of things, basically common sense. The doctors told him what to do to minimize the chance of a heart failure in the future. But my question to you is, you know, after these 500, people heard that advice, and basically, were told what to do, how many of them actually changed for the better? And what percentage of the people on average reverted back to the bad behaviors within six months of having this major heart operation? So in other words, you know, how many people after the doctor said stop smoking, stop for good? And how many of them stopped for a little bit and then reverted back to smoking?

And if it was Q, would you revert back to the bad behavior? You would say? No, no, not me. How Of course not I wouldn't do this, this is my health. But what does the evidence say? The evidence says that 90% of the people referred back to their bad behaviors that got them into trouble to start with within six months of the operation.

But please think about this for a moment, right? So you're exiting this hospital and a doctor sits you down and tells you hands, please stop smoking. If you don't stop smoking, you will die. There's not a lot of ambiguity in this is there. It's not that you have to say, Doctor, please repeat that I didn't really understand what you really meant. And is there a credible threat of dying?

Yes, of course, you just went through a life saving operation. And despite that, despite that, 90% of the people still revert back to those bad behaviors that got him into trouble in the first place. And it just goes to show how difficult it is to change human behavior and link this back to the corporate world where we want to make people change and respond When innovation goes maybe otherwise will go bankrupt or we lose our job. And we know that scaring people doesn't work. It is ineffective, it only get a short term response. Or they may say we have to get into artificial intelligence or another innovation.

And this is a great opportunity. But it's not enough. But then we need to consider that 10% did change. What was the difference? Why did they change? There are several reasons but I'm going to simplify the study a little bit.

And it's very interesting, actually, the doctors for the 90% that didn't change that behavior or reverted back to that behavior frame the need for change is following. Basically they said, if you don't change your behavior, you will die. 40 or 10%. You know what the doctor told them. They said, I'm your doctor, I'm not good. And if you don't change your your behavior, you will die but I don't want you to think about it like this.

The way I want you to think about it is do you want to go back Being able to play with your country? Or would you like to walk with your husband or wife hours into Pat in the park without feeling pain or without having to bring an oxygen tank and an oxygen mask to breed every 20 seconds? Do you want to be able to live your remaining days? How many they may be in a high quality way, then you should change your behavior and stop smoking. And I hope you see the difference here, the 90% we try to scare to make them change. For that 10% No, we give them something positive, something personal, something emotional to aim for.

And that's how you generate action in an organization. You have to make it positive, personal and emotional. And that is exactly what you have to do for the innovation. You have to make the need positive, personal and emotional. And this is hard, actually very hard. But at least now we know how we should communicate.

Take a lot of tactics, a lot of strategies. But do companies do this? They don't. And to be honest, they don't even try. And this is the big point. In order for these disruptive innovations to be successful, they need to be sold to the people.

And this is especially the case, the more disruptive, the innovation is to the core. rational arguments are just trying to scare people. It's just not enough and equally presenting all the positive benefits in the long set of numbers of how this company is going to make money. And how's this going to work is equally not enough.

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