This is an imaginative story of an imaginative engineer and
businessman, Rob. He read Alf Rehn’s book “Dangerous Ideas: When Provocative
Thinking Becomes Your Most Valuable Asset” and wanted to turn himself and his
colleagues into more dangerous thinkers.
Another Wednesday
morning, and Rob was stuck in traffic, on his way to his office – the
headquarters of a mid-sized industrial crusher manufacturer, which he’d lead as
a Managing Director for less than six months. A long-time Chief Engineer of the
company’s jaw crusher division, Rob had experienced a rapid development late in
his career.
Only three years
earlier, the head of the jaw crusher division suffered a sudden heart attack
and died on a business trip. The company had no succession plan for this key
role, and had to start a search for suitable candidates. As the most
experienced manager in the division, Rob was assigned to temporarily lead the
division. “Only for a few months”, had the Managing director calmed Rob, who
wasn’t particularly charmed by the highly visible and stressful position,
further away from his beloved engineering discipline.
But it wasn’t
particularly easy to find the candidate that would both fill the high
expectations, and also be interested in a position in a mid-sized, traditional
industrial enterprise, when the big city had so many appealing opportunities
for acclaimed executives. In fact, Rob did a decent job in taking care of his
temporary duties, and his modest, down-to-earth management style became more widely
appreciated in the company. After the second unsuccessful round of interviews
the Managing Director decided to call off the recruitment process, and
persuaded Rob to take the position permanently. He did, and when it became time
for the MD to retire, Rob was the obvious choice to become his successor.
The coming day
wasn’t going to be the easiest for the newly appointed Managing Director.
Although the company had done reasonably well over the years and was in a
stable financial position, the competitive pressures in the global marketplace
were growing. For the last two years, the profits had been declining, and the
trend didn’t seem to be changing. The board had urged Rob to come up with a
new, more innovative strategy that would change the course before it was too
late. Today the management team would gather to decide, how to begin the
process for developing the new strategy.
Innovation and
creativity wasn’t exactly what Rob considered as his comfort zone, and the
organization didn’t perceive him that way, either. Rather, his success as a
leader had been based on an in-depth knowledge of the company and its business,
ability to develop efficient, predictable processes and good people skills. In
fact, his appointment as an MD had created dissatisfaction among some of the
newer employees of the company, many with MBA degrees from distinguished
universities and heads full of new ideas. They claimed him to be too set in the
old ways, when the company clearly needed to become more creative and dynamic.
Rob had approached
this professional shortcoming like most engineers – educated himself. Over the
preceding weekend, he’d read a book on creative thinking by a Finnish
professor, Alf Rehn, whose speech he'd once heard in a business seminar. The
book, called “Dangerous Ideas: When Provocative Thinking Becomes Your Most
Valuable Asset”, was particularly interesting to Rob, because it promised to
shake the conventional thinking about creativity. Indeed, Rob had had enough of
the creativity consultants, who the company every now and then hired to tell
the employees, how good and fun and all-embracing creativity actually is.
The book delivered
to its promise. Whereas, on one hand, Alf Rehn wiped away the romanticized
picture of creativity, he also gave an insight into how to search for more
profoundly creative ideas. Although Rob wasn’t quite sure what to make of it
yet, he was determined to approach this management team meeting, and the
creation of the new strategy, somehow differently.
The meeting begun
with the usual formalities, with Nancy, the firm’s CFO presenting a financial
forecast showing that at the current run rate, the year would end in the red.
Rob set the agenda for the day and called for an open discussion on what the
new strategic direction could be.
“The fixed costs
simply aren’t in line with the projected revenues,” said Nancy, still standing
in the front of the room, fiddling with her laser pointer. “We have to lay off
at least 25% of the personnel.”
The Production
Manager, George, cut her mid-sentence: “That would be a very short-sighted
decision. The demand is expected to rise significantly next year; we couldn’t
react quickly enough, if we now reduced the workforce”.
“By next year,
none of us will be here to deal with that, if the profits keep sinking like
this”, Nancy snapped back at him.
“What if we gave
up production completely”, ventured Rick, the youngest of the business division
leaders, Rob’s successor in the jaw crusher division. “We can’t avoid changing
volumes in this cyclical industry, but we could make them irrelevant”.
Nancy and George
gave Rick a condescending smile. “The core competency of this company is the
manufacturing of crushers”, George started to lecture, “Over the decades, we’ve
adopted new materials, acquired the fastest and most accurate machining
centers, and refined the heat treatment process so that we can harden the
largest components without distortion. We also apply all the engineering
techniques to optimize the crusher designs. What’s more, the company has developed
the tools and processes in a way that we can efficiently make a large variation
of crushers, to have the best fit for every user application. Now you’re
suggesting that we throw all that away – and do what instead?”
James, the head of
the cone crusher division was clearly disgruntled. “We don’t have time for this
nonsense”, he said, “let’s focus on the ideas that aren’t completely
ridiculous”.
Rob straightened
his back and leaned forward. This started to sound like a story in the book
he’d just read. “If my most experienced executives are so annoyed, even
disgusted, by an idea that their younger colleague suggests, maybe it’s worth a
closer examination”. “Let’s think about it”, he interrupted the chorus mocking
Rick’s suggestion, “It is true that we are one of the best in crusher
manufacturing, but we’re not alone in that league. There are plenty of others
who can do what we do, and the overcapacity in the market ensures that the
prices remain low.”
“That’s probably
true”, said Jack, the Marketing Manager. “We shouldn’t bank our success on
something that isn’t differentiating us from the competition in any way.
There’s got to be something else to it”.
“Actually”,
started Anne, the head of the crusher systems division, “we’ve been able to win
some large contracts for complete crusher systems. The customers seem to
appreciate that someone else takes care of the complete project scope”.
“None of those
projects has turned out profitable”, Nancy responded. “It seems that we can’t
charge a decent price premium for the system integrator’s work.”
“Well, they are
still just crushers”, said George, taking a surprising angle. “There are many
other means of reducing particle size than crushing, and in some applications
they are much more efficient. But since our target is to maximize capacity
utilization of our factories, we offer some type of a crusher for every use.”
“Are you saying
that we should start selling all kinds of equipment for size reduction”, asked
James. “That’s insane; there are already other companies that are experts in
grinding, cutting, blasting or chemical dissolving. We would never match them,
let alone beat them”.
“Maybe, but no
one’s combining all these different methods”, said Rick, regaining his
confidence. “No one except the customers themselves, and they do it just
because they have to”.
“It’s worth
looking into”, Anne supported. “Although we aren’t the experts of all size
reduction, we have a sound understanding of each technology through competitor
analysis, and we surely know crushing and where it is or isn’t the best
available method.”
Rob was amazed by
how the tone of the dialogue had changed – or that there was a dialogue. It had
started by Rick throwing in an idea that was grossly against the conventional
wisdom of the company, igniting a storm of opposition. But Rob hadn’t let the
idea be discarded just like that, and it begun to get better. There were people
who started expanding the idea and others who helped test and improve it
through their suspicions. Rob stood up. “You know, this conversation reminds me
of something important I’ve just learned about creativity…”
After Rob had
summarized his learnings from Professor Rehn’s book, the team concluded that
they might have gotten outside of the box the most obvious assumptions that
constrained their thinking, but were only in the beginning of overcoming their
minds’ limitations. They also acknowledged that all the knowledge and creative
thinking wasn’t inside the boardroom, but that they’d have to get a larger
group of employees engaged in strategy creation early on.
The management
team spent the remainder of the day developing guidelines that they’d all
promote throughout the process of strategy creation. They named the guidelines
after the book they’d used to create them.
- Creativity is not
always fun. If an idea makes you and everyone
around you feel good, it probably isn’t a very special idea. Push your
brain out of its comfort zone. Look deeper into ideas that are at first
sight disgusting, inappropriate, naïve, or against common sense.
- Say what you think,
but don’t always think what you say. Promote a
culture, where people are not afraid of making fools of themselves. Express
ideas that might make someone frown, and encourage others to do it, too.
- Endorse constructive
criticism. All ideas aren’t good, and even the
good ones are rarely born perfect. Resistance makes good ideas stronger,
and helps in getting rid of the poor ones.
- Copy creatively. Original ideas aren’t always the best ones. Sometimes it’s
better to imitate the early movers – only make it a bit better and maybe
combine it with something else.
- Creativity isn’t
everything. The processes and routine tasks
are important – the company
must be able to deliver, too, not just innovate. Also not creative people
are elementary to success.
- There’s no one single recipe to being creative. Different kinds of creativity works in different situations, the creative ideas may come from anywhere, and the creative teams aren’t all similar.
- Creativity is a team sport. The best ideas are often a product of collaborative thinking, throwing ideas around, testing them and improving them together.
- Just do it. At some point it’s time to execute. Make clear decisions on
when and how to proceed and quit questioning and generating new ideas. Develop
some ideas into innovations and get them to the market first, only then
focus again on finding new ones.
It’s past six in
the evening, when Rob steers his car back to the motorway, heading home after
the strategy meeting. It sure was different from what we’ve done before, but
was it dangerous thinking? Hardly. It takes more practice. But the wheels are
rolling…
Jussi Hienonen
EMBA-opiskelija
Kirjoittaja on osallistujana Menestyksen Strategiat 2013-2014 -ohjelmassa