3. innovation mindset

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Innovation Mindset

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Questions addressed• Why a Mindset matters?• What does it mean to have an Innovation

Mindset?• What abilities are needed to really innovate?

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Learning objectives & outcomes• Realizing and understanding what mindset is• Developing innovation mindset• Using innovation mindset in business

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Content• Part 1: Understanding the Power of

Mindset• Part 2: Defining Innovation Mindset• Part 3: Innovation Mindset and business

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Part 1: Understanding the Power of Mindset

• Part 1: Understanding the Power of Mindset• Part 2: Defining Innovation Mindset• Part 3: Innovation Mindset and business

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„Innovation and change is not a technical problem.

It’s a mindset” (Vijay Govindarayan 2009)

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Defining a MindsetMindsets are beliefs – beliefs about ourselves and our most basic qualities, like intelligence, personality or talent (Carol Dweck)

Mindsets are attitudes which manage our actions and interactions with the world

Minset is a way of thinking about the world and about our impact on that world through:• What you believe you can do• What you believe you can’t do

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• Mindset is a psychological term.

• It is all about our beliefs. What we believe in is our mindset.

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Defining a Mindset

• Do you believe that your traits are just givens?

• Do you believe that your intelligence, talent, personallity alone determines your success? And there is nothing you can do that you are not like…?

• Do you believe that your traits change throuthout your lifetime?

• Do you believe that most basic abilities can be developed through dedication and hard work? And that you can DO IT regardless of being…?

Think about your intelligence, your talents, your personality…

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Ask yourself the questions about your beliefs on the definition.

(Or for more information you can also use on-line tests on definition of type of mindset, eg. http://mindsetonline.com/testyourmindset/step1.php or eg. http://michaelgr.com/2007/04/15/fixed-mindset-vs-growth-mindset-which-one-are-you/).

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Mindset in a nutshell

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• People with a fixed mindset believe that their traits are just givens. They have a certain amount of brains and talent and nothing can change that.

• If they have a lot, they’re all set, but if they don’t... So people in this mindset worry about their traits and how adequate they are. They have something to prove to themselves and

others. • They spend their time documenting their

intelligence or talent instead of developing them. They also believe that talent alone creates success—without effort.

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• People with a growth mindset, on the other hand, see their qualities as things that can be developed through their dedication and effort. Sure they’re happy if they’re brainy or talented, but that’s just the starting point.

• They understand that no one has ever accomplished great things—not Mozart, Darwin, or Michael Jordan—without years of passionate

practice and learning. This view creates a love of learning and a resilience that is essential for great accomplishment. Virtually all great people have had these qualities.

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Mindset for Success• When you look at the world with the fixed mindset…

– it’s not enough just to succeed;– it’s not enough just to look smart and talented;

but– you have to be pretty much flawless; and you have to be flawless right away...

so…if you have it you have it, and if you don’t you don’t...

If failure means lack of your competence or potential - than you are a failure – where do you go from there?

• When you look at the world with the growth mindset…– you are encouredged to learn from failures– you are never smart and talented enough to learn something newbut– you can always adapt by making changesso… you can always have it later if not this time

If failure means you lack competence or potential – you can always learn and start over?

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Is it possible to think like an innovator with a fixed mindset?

If yes, why?

If no, why?

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Is it possible to think like an innovator with a fixed mindset?Watch some answers…

• https://www.youtube.com/watch?v=wny1PKr_nOg

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Short excercise• Compare folloving bahaviuors against the idea of

fixed and growth mind– Keep an external Focus– Learn from your mistakes– Embrace your inner Edison– Resist the pull of the core

• How you see your mind prepared for innovations?

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Ask yourself the question whether the following behaviours are examples of fixed or growth mind?

Furthermore "How you see your mind prepared for innovations?"

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Part 1 summary: Mindset for innovation

• Mindset is a way of thinking• The way you think drives your behaviors and determine

how you act!• What limits us is the what we think we are able to do

(Carol Dweck), because:– everyone has the fundamental ability to be creative and

innovativebut– not everyone has nurtured these capabilities to the same

degree

• Innovation starts inside your head!

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• The most important aspect is that "Innovation starts inside your head!"

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Part 2: Defining Innovation Mindset

• Part 1: Understanding the Power of Mindset• Part 2: Defining Innovation Mindset• Part 3: Innovation Mindset and business

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What is Innovation Mindset?• Innovation Mindset: specific state of mind which

orientates human towards innovation activities

• Since mindsets are beliefs, people with innovation mindsets share belief that: – innovation is needed and beneficial– they can make a difference through innovation– they have or can have abilities to innovate

• Innovators share growth mindset

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Drivers of Innovation Mindsets• Individuals with innovation mindsets:

– are driven by willingness to create, – want to make a difference, – share resillience in achieving goals, – love change,– are open for failure and learning

• The creative and innovative Mindset is enhanced through four behaviors:– Changing one’s perspective– Taking risks– Finding one’s passion– Challenging assumptions and embracing ambiguity

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What drives innovation mindsets? The typical attitudes of individuals with innovation mindsets:– are driven by willingness to create, – want to make a difference, – share resilience in achieving goals, – love change,– are open for failure and learning of innovation

And the creative and innovative Mindset is enhanced through four behaviors:– Changing one’s perspective– Taking risks– Finding one’s passion– Challenging assumptions and embracing ambiguity

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Reinforcing domains of Innovation Mindset“I think of the Innovator’s Mindset as being

comprised of following six reinforcing domains” - Bradley (Woody) Bendle– Alertness– Curiousness– Willingness– Joy– Desire– Drive

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Six reinforcing domains of innovation mindset • Case study: write how you understand the

following:

• Alertness……………….• Curiousness……………• Willingness…………….• Joy………………………• Desire…………………..• Drive…………………….

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• Consider the below:• Innovators are Alert -• ✓ They are acutely aware of their environment – and

purposefully so• ✓ They are highly observant, and take note of things

that inspire, delight, thrill, confuse, frustrate, calm, intrigue, and move them in subtle or extreme ways

• Innovators are Curious -• ✓ They want and need to know• ✓ They naturally focus on questions first:• Why, Why Not, How, How Else, How Might, What if…• ✓ The actively encourage the mind to Wonder and

Wander, and Process• ✓ They continually challenge existing beliefs

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• Innovators are Willing -• ✓ They have egos but they readily check them at the door• ✓ They believe they can, and are Willing to learn something from

everyone• ✓ Innovators are among the first to admit they don’t have all the answers• ✓ They are absolutely Willing and prepared to be wrong• ✓ They are Willing to experience failure – they embrace it, try to

understand it, and learn from it.• ✓ They are Willing to suspend existing beliefs and judgement• ✓ They are Willing to forget what they know• ✓ They are Willing for things unfold in due course• ✓ They are comfortable in their own skin and are Willing to feel and look

silly• ✓ They are always ready and Willing to dive in• ✓ They are Willing to deal with ambiguity and uncertainty

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Innovators covet experiencing Joy -• ✓ Their overarching mindset positive and they seek

Joy in everything.• ✓ They find Joy in playing• ✓ There is Joy in trying• ✓ They find Joy in discovering and learning• ✓ They experience Joy from anything or anyone that

is “different”• ✓ There is Joy in being surprised• ✓ There is Joy in experiencing the unexpected• ✓ They experience Joy in finding the beauty in

everything• ✓ There is Joy from seeing brilliance in everyone• ✓ The is so much Joy from “new”

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• Innovators Desire -• ✓ They Desire change – change with a purpose• ✓ They Desire personal and organizational growth in forward reaching

ways• ✓ They Desire to be WOWed! And experience Joy when they are!• ✓ The Desire to be moved and to move others• ✓ The have a Desire to experience different things and to experience

things differently• ✓ They Desire to see different things and see things differently• ✓ They have a Desire find additional options – and then find even more• Innovators are Driven -• ✓ Innovators are driven by growth and growing things• ✓ They are Driven to create value for as many people as they can• ✓ They are Driven to make a difference in the world• - See more at:

http://www.innovationexcellence.com/blog/2012/03/05/the-innovators-mindset/#sthash.acu31cDm.dpuf

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Summary of case studies

• „So while innovation can be fed by external stimuli, energized by data, prodded by recognizing trends in the outside world, true  innovation - the ability to create new ideas that add value - needs to be developed primarily as an internal thinking process and mindset that can be learned by all.” Bill Hortz

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Docherty's Innovation Mindset Model

Is it easy to think like an innovator and face innovation challenge?

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Docherty's Innovation Mindset Model

• At the beginning of any strategic innovation initiative, everyone's excited and optimistic. They believe they've got a great idea and they're going to rule the world (Dreaming).

Depth of knowledge (time)

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Dreaming

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• At the beginning of any strategic innovation initiative, everyone's excited and optimistic. They believe they've got a great idea and they're going to rule the world (Dreaming).

Docherty's Innovation Mindset Model

• Then $%^& happens as it always does and we face failure (Doubting). It's never as easy as we thought it would be. Failure is a natural and useful element of innovation... it's how we learn and adapt our solutions. Or determine it's time to try another challenge. Depth of knowledge (time)

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DreamingDoubting

Docherty's Innovation Mindset Model

• As we develop innovative concepts into real-world practical solutions, we're learning more, the problem isn't as simple and we begin to truly understand the complexity of the challenge. It's this 3rd stage (Quitting or Persevering) that truly separates innovators from dreamers.Depth of knowledge (time)

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DreamingDoubting

Quitting or Persevering

Docherty's Innovation Mindset Model

• Those that persevere and don't quit often experience a transformational experience of having worked through the challenges.

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DreamingDoubting

Quitting or Persevering Transforming

Docherty's Innovation Mindset Model

• Having worked through the challenges and acquiring a new confidence built upon deep knowledge and experience result in championing.

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DreamingDoubting

Quitting or Persevering Transforming

Championing

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Innovation Mindset and success• Having positive, innovator’s mindset actually

CREATES success and luck

• Luck (or success) comes to those who embrace and embody four essential principles (Richard Wiseman):– Creating luck by noticing and acting on opportunities– Expecting that one can create luck through perseverance– Making decisions which are informed by the well honed

intuition– Resisting the negative by finding and even creating the

bright side of every situation

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• There is a direct link between our mindset and our achievements. Having positive, innovator’s mindset actually CREATES success and luck.

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How to broaden a mindset for innovation?• Short exercise: work on your innovation mindset

– (from the University of Virginia's Darden School of Business Design Thinking in Business Innovation program)

• As human’s brain is designed to develop new circuitry, rewire itself based on new thoughts and behaviors, here is how to get started: 1. Find quiet time every day for reflecting on what you are thinking and why? 2. When you find yourself in a fixed mindset, ask if it is coming from discomfort with change or fear of making a mistake. 3. Make it a priority to learn or try something new every day. 4. Ask questions more often than you give answers. 5. Do something that stretches you beyond your current capabilities at least one time per week.

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Broadening the mindset for innovation can be achieved by working on following 5 aspects:

1. Find quiet time every day for reflecting on what you are thinking and why? 2. When you find yourself in a fixed mindset, ask if it is coming from discomfort with change or fear of making a mistake. 3. Make it a priority to learn or try something new every day. 4. Ask questions more often than you give answers. 5. Do something that stretches you beyond your current capabilities at least one time per week.

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Part 2 summary: Defining Innovation Mindset• “Genius is 1 percent inspiration, 99 percent

perspiration.” (Thomas Edison)

• The real innovation challenge lies beyond the idea, in a long, hard journey from idea to impact

• Innovators are consumer centric – they want to deliver them value through

• creating solutions for things consumers need• providing useful things consumers didn’t even know they wanted

• Innovators go beyond the idea to entrepreneurial thinking

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Part 3: Innovation Mindset and business

• Part 1: Understanding the Power of Mindset• Part 2: Defining Innovation Mindset• Part 3: Innovation Mindset and business

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“Entrepreneurship is first and foremost a mindset.” (European Comission 2003)

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What is necessary to become an innovator?• To become an innovator it is necessary to:

– acknowledge that the world is changing– be ready for change– be able to lead changeand– start dealing with change and using it a source of power– take conscious responsibilities for actions taken and

learn lessons

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Entrepreneurial Orientation

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Three Dimensions of Entrepreneurial Orientation

– Innovativeness • is the predisposition to engage in creativity and experimentation

through the introduction of new products/services as well as technological leadership via R&D in new processes.

– Pro-activeness • is an opportunity-seeking, forward-looking perspective characterized

by the introduction of new products and services ahead of the competition and acting in anticipation of future demand.

– Risk taking • involves taking bold actions by venturing into the unknown,

borrowing heavily, and/or committing significant resources to ventures in uncertain environments.

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Three Dimensions of Entrepreneurial Orientation:

– Innovativeness

– Pro-activeness

– Risk taking

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Dimention #1: Innovativeness• openess for new ideas• willingness to engage resources in development

of new ideas (time, money, facilities…)• active explotraion of new posibilities,

opportunities• futuring and creating• experimentation• patience (ideas need time to mature: 2,3,10

years…)• allowing collesions of smaller hunches (for the big

ideas to be created)

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Critical Mindset vs Creative Mindset Part 1 of 4

Critical Mindset• Certain• Closed to new

information• Demanding respect• Isolating and analysing

ideas

Creative Mindset• Flexible• Open to learning• Respecting others• Connecting ideas

Critical Mindset vs Creative Mindset Part 2 of 4

Critical Mindset• Avoiding change• Embracing correctness• Going through the

motion• Using tries and true

methods

Creative Mindset• Adapting to the

unexpected• Embraicing ambiguity• Having fun• Discovering new ways

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Critical Mindset vs Creative Mindset Part 3 of 4

Critical Mindset• Assesing and judging ideas

• Seeing unrelated events• Seeing gaps and

inconsistences as failures• Spotting wrong answers

Creative Mindset• Developing unique and

useful ideas• Seeing connection• Seeing gaps and

inconsistences and clues• Spotting wrong questions

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Critical Mindset vs Creative Mindset Part 4 of 4

Critical Mindset• Criticising the offbeat• Reacting • Seeing failure as failure• Describing what is

Creative Mindset• Embracing the

different• Anticipating• Seeing failure as

learning• Embracing possiblity

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How to use innovativeness (#1) to create something new

Watch the video• https://www.youtube.com/watch?v=FSxSinVVRLw

Three Dimensions of Entrepreneurial Orientation:

– Innovativeness

– Pro-activeness

– Risk taking

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Dimention #2: Pro-activeness• Courage and ability to act and make things done!

Source: http://www.cflf.org/sites/cflf/files/persistence-and-proactive.jpg

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Pro-activeness and entrepreneurship• How to spot an entrepreneur (Mazzarol 2011)

– An agent of change: person who brings new ideas or products to market with the ability to create wealth and employment

– Motivation: person who has individual motivation and the capacity to identify an opportunity and pursue it to economic success regardless of the resources that are under control

– Converting opportunity: person who converts opportunities into marketable ideas, often assuming risk, implementing the idea and realizing any rewards

– Creating new ventures: a person who starts a company (entrepreneur) or works in an organization on a new project (entrepreneur)

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How to be pro-active and how to make a difference

Watch the video• https://www.youtube.com/watch?v=i35BpZIXBJU

Three Dimensions of Entrepreneurial Orientation:

– Innovativeness

– Pro-activeness

– Risk taking

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Dimention #3: Risk-taking• taking actions into the unknown• committing resources to actions in uncertain

environments

• Is innovation possible without risk?

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Reflect on this idea " Is innovation possible without risk?“

• The answer should be no!

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Failing and rising:learning from failures• 34-35% of people across all types of economies

(factor-driven, efficiency-driven, innovation-driven) holds a fear of failure as a potential barrier to new ventures creation (Bosma & Levie 2010)

• „Fail often and early”

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• So, what should we do about risk? Since we cannot get rid of it?

• Well we should accept the fact that there will always be some risk in what we are doing and start learning from our failures!

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Effectuation theory (part 1 of 3)

• Effectuation theory: an individual seeking to launch a new venture will need to apply – an causation processrather than – an effectuation processs

Effectuation theory (part 2 of 3)

• An causation process– a clear sense of variables

that need to be controlled in order to achieve a given outcome or end result

– cause-effect logic in which investment of time and resources in a project will lead to relatively predictable outcomes

– is well suited to the exploitation of known markets and established knowledge

• An effectuation process– the Focus is on control of things that

might assist in articulating through the process into an uncertain future

– assumes that the environment is dynamic, non-linear, ecological in nature

– suitable where variables and even the end state are unknown or unpredictable thus can be useful in the creation of new markets and products in which strategic alliances and collaborative strategies are important for success

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Two approaches to processes

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Effectuation theory (part 3 of 3)

• Four principles of effectuation theory (Sarasvathy 2001):– Affordable loss, rather than expected returns– Strategic alliances, rather than competitive analyses– Exploitation of contingencies, rather than pre-existing

knowledge– Control of an unpredictable future, rather than prediction

of an uncertain one

Effectuation theory example:A chef cooking a meal.

causation process• A client chooses a menu

in advance • Then the chef prepares

this menu by looking for the right ingredients and following the recipes to make the dishes

effectuation proces• A client doesn’t ask for a

specific menu, but he asks the chef to make something with the ingredients available.

• The chef chooses one of the many different meals he is able to make with the available ingredients.

68Source: S. Sarasvathy; et al. (2001). "EFFECTUAL ENTREPRENEURIAL EXPERTISE: EXISTENCE AND BOUNDS".

Effectuation theory – an example

Watch the video

• http://library.fora.tv/2011/09/16/Collective_Entrepreneurship/Venture_Fest_Innovation_Through_Competition

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Part 3 summary: Innovation Mindset and business• It is crucial to have an innovarion midnset for

succesful business operations

• Innovativeness, Pro-activeness and Risk taking are key features of innovation midnset in business

• An individual seeking to launch a new venture will need to apply an causation process rather than an effectuation process

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A kind of summary at the end• Traits of key billionaires – Innovation Mindset

– Have a big passion / purpose in life– Do a lot of experimentation– Practice long term thinking– Are optimistic– Accept risk & mitigation– Practice Customer Centricity Thinking

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And some more useful links• Creating innovation minset of an organisation

– http://blogg.nhh.no/tjenesteinnovasjon/?p=1239

• Changing employee mindset– http://www.slideshare.net/anis_bedda/klaschka-20141212-

intrapreneurship-conference

• Designing innovation culture– http://www.bic.sg/innovation-culture-canvas-gallery/

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• What does it mean to be proactive?– http://www.entrepreneur.com/article/243054