Wednesday, July 25, 2012

The Struggle with Innovation


A couple of weeks ago, I was in a meeting with an acquaintance who leads an innovation team for his company.  He had just come from a meeting with corporate and had heard the news that corporate is re-organizing his innovation team to be part of the “in-line” or baseline business instead of a standalone group as they were currently structured.  Apparently, every few years or so, corporate moves the innovation team in and out of the in-line businesses, unclear on where innovation really should lie.

This is not a new scenario.  I am sure all of us, either directly or indirectly, throughout our careers experienced a shift in an innovation organization structure.  Should it be broken out separately?  Should it be integrated?  Like all options, there are pros and cons of each. So I’m not going to discuss a case for one way or the other.  Personally, I’ve worked in both types of structures and I’ve seen both be successful …and I’ve seen both have its struggles.

What I do want to discuss is that the organizational structure of an innovation team should matter LESS, and the motivational structure of it should matter way more than it currently does.  What do I mean by motivational structure?  I believe that the best innovative ideas, thoughts, connections, etc.  happen because of  people and the motivational wiring of these people.  Just as we have “left brain” and “right brain” people, we have people who are inspired and truly energized by the non-linear, a lack of concrete direction, blank pages, white spaces, wide possibilities.   The key to success in innovation is in staffing the team with people and partners who thrive in such spaces.  Whether they live within the brand team or outside of it matters less than if they are the right people empowered, supported and encouraged to forge new thinking, new grounds, and new directions. 

So the next time your company starts to talk about a re-org to re-energize its innovation capabilities and output, steer the conversation instead to one about the people who make up the innovation team and the partners who help them.  Don’t be fooled into thinking that a change in organizational structure will yield dramatically different results.  Instead, focus on what can truly affect results – the people – and put your energy into building the best motivational structure possible.

--Barbara Hagen,
Managing Director

Wednesday, July 18, 2012

Lessons From the Original San Francisco Treat


Why do some innovations live unnaturally long lives? None last forever. Even the wheel will someday meet its maker. Most ideas die as unfertilized ova. The lucky ones are born, grow up, and reproduce. Some get squeezed out by siblings, others are ruthlessly assassinated by the new kids on the block. Some do, of course, go gray and die of natural causes. Therefore, it’s truly exceptional for a thing to survive in its original form for more than a century.

It’s been estimated that 1 out of 5,000 inventions have successful product launches. Our success rate at SRG is considerably better than that, but still, a lot changes after an idea is born.

Product lifecycles have gotten shorter for most. If new inventions are less than differentiated or easily copied, they won’t last. The success of Apple’s iPod is largely attributed to the integrated iTunes model. The combined experience was so compelling that it took competitors years to emerge with even marginally distinctive offerings of their own. 

What insulates successful inventions from obsolescence? Branding, of course. When an idea develops a powerful following, it’s much harder to replace or kill. Assuming an idea is worthy in the first place and is nurtured and supported over time, value can transcend the original utility. The emotional, often lifelong bond between people and the brands that ideas become is the ultimate goal of our kind.

As much as innovators analyze the present with an eye to the future, it’s often helpful to look to the lessons of the past. It’s also refreshing to investigate categories far from those we’re most familiar with.

I’d been to San Francisco many times, but only on a recent trip did I develop a true appreciation for the mechanical mastery of the cable car. Perfectly suited for its intended purpose, the cable car was invented for these steep hills in particular. Twenty-five U.S. cities and several in Europe once featured them. Those remaining in San Francisco are the last mechanically driven trolleys anywhere.

In 1873 San Franciscan Andrew Smith Hallidie’s creation made its maiden voyage. By 1888, the cable car system was described as the most distinctive and progressive feature of California. A vast network of lines crisscrossed the city, allowing riders to casually and efficiently navigate the steepest streets. They were billed as the sophisticated choice for intercity travel.

Large steam engines provided the power for the original 23 lines. The cable remains a thick continuous steel rope—over four miles long for the California line. A network of self-adjusting pulleys and gears keeps it moving smoothly below the city streets. The cable cars themselves are equipped with hand-operated, vise-like devices that grip the cable to go and release to stop.

Rival electric streetcars began operation in San Francisco in 1892. At that time, it was estimated that it cost twice as much to build and six times as much to operate a line with cable cars.

Cable cars would barely survive the earthquake of 1906 and the competitive onslaught of newer alternatives, especially automobiles. The system fell into disrepair and was considered unsafe. It was shut down during the 70s.


In the 1980s, the voice of the San Franciscans, channeled through politicians, would prevail and federal funding was secured—the surviving cable car system was completely rebuilt. A few improvements were implemented, but the design intent, mechanical workings, and aesthetics were preserved.

Cable cars are now expensive to maintain—and ride. The wait for even short trips can be excruciatingly long. Usage is down and half the riders are reportedly riding for free. So why keep cable cars on life support? Hasn’t their time come and gone?

They have survived 140 years, partly because the original invention was an elegant solution to a critical need. It was consistent with the city’s progressive, “Paris of the West” reputation. San Francisco continues to be one of the world’s most innovative cities—Apple is just down the road after all. Shouldn’t cable cars be replaced with some kind of sleek, hovering, climate-controlled futuristic experience?

Never. The cables will continue whirring below the streets and the bells will ring indefinitely. The people insisted the cable car had become a unique symbol of the city. They were right. Brand love had intervened. Apple would certainly not want to get in the way of that.

The cable car had become a brand unto itself—a sub-brand of San Francisco. 


Coincidentally, Rice-A-Roni was one of SRG’s early clients. We did both new product development and positioning work for this 54-year-old brand. One project was designed to evaluate the relevance and equity of the cable car with a national audience. The cable car, we were told, was the soul of San Francisco—a spirited representation of exploration and discovery.

The reason cable cars have endured has everything to do with their status upgrade from mode of transportation to brand icon. Right up there with the Golden Gate Bridge and Alcatraz, the cable car has become an integral part of the San Francisco brand. Of course, that took time and the continued love and loyalty of the city.

The link between successful innovation and long-term in-market viability clearly has a lot to do with the work that happens on the brand front, not to mention the extra effort required to cultivate a relationship with the consumer.

With our industry’s emphasis on future-forward thinking, it’s helpful to occasionally look back. History is full of great lessons where companies gambled to signal change. Some won big. Some, well, those often make for the more interesting stories. Fresh and exciting are rarely substitutes for authentic and lasting. “If it ain’t broke, don’t fix it” does not apply to innovators and designers, but in our quest for the next thing, we need to be respectful and careful to cultivate loyalty and transfer every drop of brand love possible. This applies equally for the zygotes and gray-bearded.

--Jeff Curry,
Creative Director / Partner

Tuesday, July 10, 2012

Art and Positioning


“To make the stone, stony, again,” is a surviving line from a long, heady essay, "Art as Technique," by Victor Shklovsky—a Russian Literary Critic, artist, cynic and inquisitive man. 

A Cynical and Inquisitive Man
The essay, was, perhaps surprisingly, not about marketing. It was about art …and more specifically, about poetry. 

But among many other reasons, one that makes it worthwhile read for marketers is its relevance to positioning. Shklovsky argues that the purpose of art is to give something familiar meaning, to take what we know to be inherent truths, and revisit them. In so doing, a writer can capture what it is that makes what we call a stone, stony
 


Mind Exploding from Circular Logic


It strikes me that in positioning the task is often the same as Shklovsky’s, that is, urging people to look at a product or brand closer to respond to its essential qualities.

This might take some of the pressure off of striving for something new. Rather this essay presents a world of opportunity for marketers, because it suggests that everything is inherently differentiated; stones are stony, water is wet.  A marketer’s challenge can be to discover, or rediscover inherent qualities, as opposed to inventing them. 

--JC Longbottom,
Associate Consultant