Hack

Hack: Change Perspective

by Ralph Oesterheld

October 1, 2011 at 4:58pm

3 Ratings:

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Contribution Summary

Summary

I believe you think tanks and consultants have developed pretty much everything in management technics for the moment. What you may need to find are some different pairs of eyes to view it, to get a fresh start. The eyes of Non Linear Synthesizing Thinkers (Non Linears). I will try to demonstrate that Change Perspective is dynamite. 

With today's fast knowledge expansion of mankind, the options of new links are growing fast. Consider for yourself, what would happen, if in addition you bring in the people, whose whole thinking process is controlled by non linear linkage.They will deliver unorthodox insights and the Linear Analytical Thinkers (Linears) will do the fine tuning. If you think tanks and consultants put your powerful force behind it, this may lead to imminent, severe and unforeseeable consequences, not only for corporations and executives in their comfort zones, but for everyone. Progress would change from linear solution based development to leaps across boundaries, because it‘s all already there. You just have to Change Perspective. 

I would like you to start with a couple of examples of Change Perspective. Go to Practical Impact first and continue with Problem.


Problem

When I started reading the book: „The Creative Brain“ by Nancy Andreasen, a neuroscientist, who has been researching creativity for more than 30 years, the first thing what drew my attention, was her definition on creativity. Here it is:

„One essential component of creativity is originality. Creativity involves perceiving new relationships, ways of observing, ways of portraying. These novel relationships might be found in nature and expressed in new natural laws, or expressed in a product such as a novel or a poem Creativity is not only limited to particular domains, such as the arts. Creativity in the science is also a fascinating topic.

A second component of creativity is utility, very broadly defined. For example, it is possible to conceive of something novel - such as a car without wheels - that has nor creative value at all. The concept of utility must be broadly defined, however, creativity in the arts is not always obviously useful. Its utility resides primarily in its ability to evoke resonant emotions in others, to inspire, or to create a sense of awe at what the human mind/brain can achieve.

A final component of creativity is that it must lead to a product of some kind. That is, creativity requires the creation of something. It may be helpful to think of creativity as comprised of 3 components. It begins with a person. That person then addresses a problem or seeks out a good question or conceives a new way of perceiving or conceptualizing, using a creative cognitive process“.

Nancy Andreasen mentions in her book (published 2005), that she has written her definition in the 1970‘s and that it still seems reasonable. She is a highly regarded scientist, who has been awarded the National Medal of Science. So it can be assumed, that everyone in neuroscience or interested in this subject would pretty much agree with her definition.

Here is what a Non Linear like me sees, when he reads this definition.

A car without wheels is not a product like a poem or a novel, its a „something“. Its not a piece of art either, because it cannot evoke resonant emotions in others, inspire, or create a sense of awe at what the human mind/brain can achieve. Perhaps I should talk to some collectors, who are spending substantial amounts of money for old, rotten and extremely rare bombs, which are missing a lot more parts than just the wheels, and ask them what they would call that „something“ sitting their garage. I can only guess, but its probably Betty. Or what about bike‘s without wheels. Every time I go to the Fitness Club I see people in group strength spinning their pedals with high velocity, without gaining an inch of ground. And they even have an instructor.

In addition, there are racecar simulators, restaurants which are seating their guests in cars, people who put old cars in their gardens and let them overgrow as a form of garden design and who knows what else. I believe it‘s obvious to everyone, that a car without wheels can be both a product and a piece of art. But what I am really wondering about is, what happened the past 35 years, since the definition was written. Is it, that Linears are always following a straight logical thought, while Non Linears don‘t, so they see things different? The best person to answer this is probably a neuroscientist like Nancy Andreasen. But just in case my assumption is right, it would mean that teams of Linears and Non Linears are able to come up with the extraordinary. So let‘s try to build a bridge of common language, so both can profit from each other.


Solution

When I started writing my Hack 2 weeks ago, I had no idea where to start. All I knew was, I wanted to write about creativity in Economics. I have completely rewritten my Hack twice. At first it was called Vision Management and it was the attempt to demystify the term „Visionary“ and define, what I think it is. During this transformation process I have hardly done any research at all, except getting out the books by Nancy Andreasen and Daniel Pink „ A Whole New Mind“,which I read years ago and went through some parts again. I have never worked in consulting, nor do I know anyone who does. My Hack is purely the result of a hundred or more flashes of inspiration, which seemingly came from nowhere.

Some people collect objects of all kinds. I have an affinity to rethink business models. I would like to demonstrate that everyone, who is a Non Linear can Change Perspective with ease, show how Non Linears can be identified and why we should develop additional BBA and MBA courses for Non Linears

The process of rethinking a business model is always the same. 

Something is catching my attention. That can be input by other people, or reading about Management Exchange. 

Instead of a linear problem to solution process, I am having flashes of inspiration sometimes hundreds per case and it comes in irregular on-and off times. I believe an author would describe a similar process. When it starts, I write as fast as I can, because these flashes disappear as quick as they come. This is because they are often outside an obvious context.

Next, clusters are forming. I have developed 2 little technics for myself, which are working well to support cluster building. One is to think in modules. I just „cut“ the thought into it‘s smallest parts, so I focus on what‘s useful and sort out the rest. Today, as with all things you practice, it‘s a subconscious automated process. The second little technic is to repeat ( in my mind ) the phrasing of flashes and clusters over and over again, which keeps the process „cooking“ and leads to fresh flashes. For some  reason reading my notes does not have the same effect, but that might be an individual effect. If you have a hundred flashes of broad and large content, with many outside an obvious linear co-relation, you can‘t sort it out logically. Luckily all you have to do, if you are a Non Linear, is wait.

Eventually your flashes are falling into form, or better, I use the definition by Daniel Pink, he calls symphony: „Symphony as I call this aptitude, is the ability to put together the pieces. It is the capacity to synthesize rather than analyze; to see relationships between seemingly unrelated fields; to detect broad patterns rather than to deliver specific answers; and to invent something new by combining elements nobody thought to pair“  

Are you puzzled by the above? Well, I am puzzled by all these semicolons in Daniel Pinks definition. Normal is, what we can grasp. To me the above is as simple as a few basic bookkeeping technics to a CFO.   

Daniel Pink quotes Nicholas Negroponte of the MIT saying: „Many engineering deadlocks have been broken by people who are not engineers at all. This is because perspective is more important than IQ. The ability of making big leaps of thought is a common denominator among the originators of breakthrough ideas. Usually this ability resides in people with very wide backgrounds, multidisciplinary minds, and a broad spectrum of experiences.“ It works for me, my inspirations, when putting my mind to a topic, usually derive from surfing in the net, reading or watching TV, outside a linear logical line and without a specific target. It‘s surely not about specific research into an industry I don‘t understand in detail anyway. 

Trust me, anyone who is a Non Linear can perform or learn the above with a bit of practice, subject-based on individual life experiences and probably much faster than becoming a bookkeeper.

 

So let‘s discover first patterns to identify Non Linears.

To me the role model of Change Perspective is Richard Branson. He couldn‘t manage school, but that didn‘t stop him to found over 400 companies. He‘s made himself a name, seeing things a little different, which he himself credits to his dyslexia. Daniel Pink tells his readers about a survey conducted, that self-made millionaires  are four times more likely than the rest of the population to be dyslexic (Charlotte Gill. „Dyslexics Bank of Disability“).

Who wonders? I have my doubts, that HR departments have the tools to see the quality in these people. So dyslexic‘s best option is to run their own companies. No matter if they have the intention or not.

Take a look at a little (part-)interview made with Richard Branson. I found it on Youtube. It‘s only 2:09 min. and it‘s quite funny as well. ( go to video )

Daniel Pink quotes Sally Shaywitz a Yale Neuroscientist and specialist in dyslexia saying: „Dyslexics think differently. They are intuitive and excel at problem-solving, seeing the big picture, and simplifying.......They are poor rote reciters ( who needs it, if you have a linear team partner / my comment ), but inspired visionaries.“ I had a look. According to an Internet source about 5% of the population is dyslexic. They should be easy to find. If that‘s all it takes, to get a Change Perspective, what are you guys waiting for? 

I have no doubt, if you talk to neuroscientists, you will find they have discovered further patterns, characterizing Non Linears.

A couple of days ago I was sitting in my favourite restaurant. They have a lunch special until 3:00 p.m. A guy walks in and says to the waitress: „ It‘s already 2:57 p.m., is the lunch special still on?“ Waitress: „ Sure, it‘s not 3:00 p.m. yet.“ Trust me when I say, that‘s the kind of person, you want to meet if you are looking for an unorthodox thinker. No matter who he is or what education level ( in the classical sense ) he has.

„Get me some poets as managers“ quotes Daniel Pink, referring to Sidney Harman of Harman Inc.

There is a growing trend to recruit arts graduates. You also get these interdisciplinary symposiums linking artistic thinking processes with economics. I am not questioning some positive impact, but is it really the arts what does it? I don‘t think so. I believe it‘s about the kind of people, Non Linears who are rather drawn to arts than to business administration? And it‘s partially about training methods in art. Another trend is to give Linears some „rightbrain training“. It can‘t hurt, but would you train an athlete with the perfect physiognomy for shot put, to run the marathon? 

I believe it‘s time for business schools to develop additional BBA and MBA courses, designed to suit the thinking and learning process of dyslexics or other Non Linears. I think the course structure for Non Linears have to be the exact opposite of Classic BBA and MBA courses, if you want to attract Non Linears to business administration. Reduce the lessons to broad input, because they learn in context, which they develop by themselves. The best way to learn is by very broad case studies with on-demand tuition. Remember what Richard Branson said in the interview? He can only learn, what he is interested in. I would understand this as saying, leave the direction of learning to me. Instead of „forcing“ input upon these people outside of total context, let them learn the basics of management technics, whenever they get there, with their case study. The professor would be, what an editor is in creative writing.  

Here is a simple example for a case study. Tell your students to develop a restaurant concept (or something else everybody understands) and let them develop it virtually step by step into a worldwide franchise. Get them coached in addition to your professors by bringing in a few managers from successful franchise outlet‘s or cooperate with the Burger University. Assign students of classic BBA / MBA courses to them, to do the fine tuning of management disciplines. This way your Non Linear doesn‘t have to go too deep into all of these subjects ( he can‘t anyway ) and it will help both to find a common language and understanding, which they will need later for good results at the workplace where they meet again. I would base the admission to this course entirely on a test and the know how of neuroscience. Ask applicants about topics they find interesting and what they have been reading. But this is not about summary, it‘s about conclusion. Non Linears are interested in a multitude of subjects, without going into depth. These are all reasons to assume, that a lot of them don‘t have a very high classical education. So don‘t ask for a CV and in case your qualifier turns out to be the driver of a garbage truck, then it shall be so. Remember the movie „Good Will Hunting“ with Matt Damon? It‘s the same thing, just different. It doesn‘t have to be that extreme, but it could be and you wouldn‘t want to miss out on a few dyslexic „Branson juniors“, without a school certificate, who didn‘t get a chance to start their own business. 

Practical Impact

Venture Capital Companies

You may or not agree with my conclusions ( below ), but that‘s not the point. So don‘t judge it. Instead focus on the patterns and how easy it is to add a fresh core competence to a business model and even gain a shift of control in an industry just by changing the perspective. You should ask yourself, what Linears could make out of it, when a Non Linear shows them a different perspective. I am not the specialist, so my conclusions cannot always be of value, or it may have to go back and forth between Linears and Non Linears a few times. But I and all other Non Linears can do this all day, change the perspective towards pretty much all business models, perhaps everything . 

In early 2009 I found an open letter from the CEO of one of Germany's largest Publishers to his staff in the Internet. He was reporting about an alarming decrease in advertising revenue not only because of the digitalisation, but now on top because of the economical downturn, due to the financial crisis. He had designed a 3 point change program to fight the problems. One was: Innovate ( translated Quote ) „The program must create the structural conditions to compensate the losses in the core business of publishing through new channels of revenue - at least partially“. 

Just for the fun of it, I designed a concept for them. I need to mention that I have neither specific knowledge of nor contacts to this industry. The basis of my concept was the idea to rethink their business model and add a new core competence without cannibalisation effects to the existing. Instead of just looking at a magazine as a vehicle of content for money, I see in it just as well a vehicle of access to consumers and it is a creator of opinion, no matter, if you as a reader or as the publisher like it, or not. 

Everyone can start an E-Commerce business today. It doesn‘t even cost a lot, because you can source out all processes from purchasing to delivery. And most service providers especially fulfilment are offering you a cost system per contract or even against a share of the turnover. The catch is to get the attention of potential buyers in the www, if you can‘t spend millions in advertising. But a large publisher with a big portfolio of product based magazines can reach millions of people in no time and at no extra cost at all. So how would it work? When their magazines are reporting about a new trend or product line, readers can order it straight away through the publishers E-Commerce platform. Off course there is nothing really new, except the shift of who is controlling an industry. So I designed it, that the magazines are the controlling center of this modular business model. I designed it without any risk for the publisher for unsold products or claims. I even invented a couple unique modules to draw a wider attention. So with all processes sourced out, all the publisher would have to do is to organize the communication between the content of their magazines and the E-Commerce platform. When I was finished I had to consider, whom I would send it to. I decided against the CEO, as I thought it would never reach his desk. I found out that they have a VC Co. in their portfolio, which already owned a couple of E-Commerce companies and since I figured out that they would need a new business unit to organize the communication with their magazines, I decided to send it to their VC Co. I didn‘t send a business or financial plan, the cost to set this up would be next to nothing anyway, due to the outsourcing processes. I didn‘t ask for funding or a cut for myself, nothing. I just send them a concept to give them some innovative input, as the CEO had asked for, with the only exception, that I did not belong to his staff. I wanted to show them an opportunity, how they could solve their problems and reverse their dependence on advertising to the position in the driver‘s seat of a large industry. 

Off it went, my concept. About a week later, I received a friendly email from the MD of the VC Co.. He thanked for my input, informed me, that they would only do growth funding, and invited me to contact him again, once I got there. 

I had the impression he didn‘t see the bred & butter business of his parent company. I was stunned!

Since then the ipad came onto the market and the future of publishing seems obvious. A publisher of product based quality magazines who would control an E-Commerce platform can give away quality content magazines for tablet pc for free very soon ( once a critical number of users bought one ), if they stop print completely and only offer e-magazines, because they save the cost for print, transportation, retail or mail and partially administration. Besides, the number of readers would shoot up, if the quality magazine would be available for free. And with it the advertising revenue + an ever increasing revenue from the E-Commerce platform. Isn‘t that a dream upward spiral? All a publisher would have to do to increase the revenue, is to convince more people to download a free copy of quality magazines. The launch of a new title wouldn‘t cost a cent. You just send the first copy to all subscibers of all your other magazines and you have a high circulation from the beginning, so your advertising revenue should at least match the cost of content. And when you look into the medium term future, you can see, that a lot more publishers would appear ( lower initiating costs means lower entry hurdle ) and compete heavily for users of free quality content. This means the quality of free magazines will be even higher than what you get today for money. I could continue talking about the likely appearence of meta-magazines or the implications of interactive TV, which is just around the corner, but I stop here. I believe it‘s obvious how much potential kick this industry has and I really can‘t understand, what all these publishers are whining about. 

One mobile Internet access provider in Germany is giving their own developed smart-pad away for free now, if you sign up their flatrate for 24 month. 

If you ask me, there is no other industry in the world, which has such a low understanding of creativity ( except VC Co‘s by Entrepreneurs ) and such a low customer focus, than Venture Capital Companies. A whole service sector has evolved around VC, just to assist people to gain customer status. 

Since the burst of the dot-com bubble, seed capital has largely been reduced, because lot‘s of them got their fingers heavily burnt. Who wonders? Today a lot of them are rubbing shoulders in growth capital investments. If you ask them why, they tell you it‘s less risky than seed capital. Is that really so? Well, I believe the exact opposite is the case. When a lot of VC Co‘s are in competition to invest in a limited no of companies, which survived the founding stage and have strong growth, the price goes up and the ROI down. That puts fund managers, who did not have a score for a while under pressure by the investors, so some of them will have to settle for crumble. Besides, in a fast changing world, with industry boundaries are broken down all time, it is getting more and more difficult to make predictions into the future, just based on balance sheets of the past. 

Why do young companies go broke? Because of a poor business idea? Rarely. It‘s mainly a lack of managerial know how and/or capitalisation, the only 2 things, which I would rate as core competences of VC Co‘s.

I believe its time to rethink the business model of VC Co‘s.

 

Let Non Linear Synthesizing Thinkers develop new or rethink business models for all kinds of industries. They don‘t have to be ground braking ideas. It‘s enough to give proven concepts like everyday services or crafts a fresh approach.

Become ( inspired by managements like Mc Donalds, who are world leaders, without an outstanding product ) a provider of management, source in business models and use your funds to get them going. To gain an advantage in cost efficiency, you can bundle all departments throughout your portfolio of companies to one department of each kind. This way you don‘t have to worry about the managerial qualities of the people, who send in concepts. Give them a share in the company and let them do, what they can do best - to stay ahead of others copying the business model - rethink their own business model every day. 

Or better: Management consulting firms are adding a new core competence by seeing themselves not only as consultants, but also as management providers, develop contacts to the finance industry and start Venture Capital Co‘s as above.

Creativity has nothing to do with education, only the execution of it does. I like the teachings of Richard Florida ( Creative Class ) on creativity. He has researched, what it takes to make a city thrive. But I think he has missed one vital aspect in his statistics: Desperation, or the creative ability to deal with it. What do you think, who is likely to be more creative? I public servant, who drives the same city bus on the same route every day through the streets of creative and cosmopolitan Seattle, or an unemployed father from Detroit, who has to feed a family of 4? 

Venture Capital Companies can be a huge tool to let creativity exell, but only if they remodel and become customer focused, instead of putting the hurdles up so high, that hardly anyone can pass it. What a waste of ingenuity. 

The other day I had a call from a friend, who is working for a Venture Capital Company in Frankfurt. He asked me to take a look at a company, which has send in a business plan, because the business model was the same as one we had talked about 10 years earlier and agreed that there was a market for it. I took a look at this company, only to find, that the basic business idea was the only thing in common. In contrast to our discussion, this company had a low core competence, low added value and their product was a service tool developed without any customer focus at all. He is an intelligent, very well educated linear thinker with a background in Finance. He can do a Due Dillegence for a billion dollar company, but he can‘t see the value  of a relatively small company outside it‘s balance sheet.  

2 simple examples of Change Perspective, but with possible major potential impact on the Publishing and Venture Capital Industries. It‘s easy, if you Change Perspective.

Challenges

Human Resource Departments

There is nothing more prejudice in the world than Human Resource Departments. I am not talking about the people, who are working in HR, but the system is. HR has defined the art to describe exactly, what they are looking for to the point, that they are very much likely to sort out any kind of behavior, which does not represent the norm. Consider for yourself, if you had to decide between 2 candidates with the same qualifications, who would your HR department recommend? A guy who is a smooth talker, or someone who stumbles like Richard Branson, because he is thinking while talking. But if you are looking for the unorthodox, you might have to find completely new search tools, perhaps deliberately not asking for a CV.

Let me remind you, what Nicholas Negroponte was saying:, „Many engineering deadlocks have been broken by people who are not engineers at all. This is because perspective is more important than IQ. The ability of making big leaps of thought is a common denominator among the originators of breakthrough ideas. Usually this ability resides in people with very wide backgrounds, multidisciplinary minds, and a broad spectrum of experiences .“ 

Is your HR Department prepared for that?


First Steps

Management Consultants

I believe Change Perspective can be kicked of best by Management Consultants. 

If you want an unorthodox Change Perspective, it is important, that the task you give your Non Linear is as broad as possible. This means, that a Non Linear might come up with input, which may not favour a particular customer or even industry. Instead it may even favour a competitor or bordering industry.             

Many Consulting Firms have hundreds if not thousands of clients from all industries. Let your consultants of all specific disciplines give the Non Linear some general input or explain problems of certain industries. What ever they come back with, can be fine-tuned and systematised by your consultants and sold to clients, who it may fit. This way it doesn‘t matter what your Non Linear comes up with. You can use it anyway.

In contrast, Corporations would have to be convinced to employ people, who do not have the management qualifications in a classical sense. That could be a little hard to communicate in the begining. But of course they could also work in some progressive companies, like Harman Inc.. 

Executive Research Co. can play an important role in communication, to convince at least some CEO‘s.

Last but not least I would like to see Non Linears in remodeled Venture Capital Companies  


Credits

Gary Hamel for setting up Management Exchange, Daniel Pink, Nancy Andreasen, Nicholas Negroponte, Richard Florida, Richard Branson and the founders of Google, as I would like to believe that they started their search engine, to give Non Linear Synthesizing Thinkers the perfect tool of inspiration.

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Comments

Ralph Oesterheld

Ellen, you convinced me. I will give it a go.

Ellen Weber

Ralph, you make an interesting case for the difficulty of change and it reminds me to appreciate a diverse community such as this one. I've found that it takes people like you with good ideas and the risk required to stand on the cutting edges until some of the ideas catch:-) Don't underestimate your own influence:-)

For years I waited for others to create the changes that I felt would help to increase innovation, and reach across diverse thinkers. It does not happen where organizations have maintained people at the top whose interest is to preserve the broken systems that "pay their bills" beyond work. Would you agree?

It may start small. For instance, I used the MITA approach to teach business leaders in courses I taught at university business departments. While the feedback was very positive for all leaders in the courses, it was one strong creative leader – who later asked me to design courses on the topic for a program he now chairs at a University. It took time, it seemed that my 2-bits went nowhere much, and then it happened:-)
That’s why I encourage you to take the lead, rally around trusted innovators and take the risks for change. It’s a win for all, when we use feedback to tweak and grow the changes we suggest – so you roll new ideas forward in traditional organizations that may later thank you for helping them out of ruts that hold them back.
There is nothing like evidence of higher productivity to convince hard liners to give change a try All the best Ralph. You have my vote and I could learn lots from you!

Ralph Oesterheld

Ellen, thanks for your good advise and support. Unfortunately there is no invention in economics in Germany. It's all about technology. I believe a development can only come from the US. There are influential people, some of whom I have quoted, who have been looking into this subject. What I believe it takes, is an institution, which will bundle what's already been found. To me the key factor is to demystify the topic and convince a few companies to give Change Perspective a try plus the development of tools to measure success.

Ellen Weber

How exciting. Do let us know the results, Ralph.

Ellen Weber

Ralph, you are headed in an interesting direction here and I enjoyed reading your notion of expanding the brainpower that goes into business communities. Your notion of non-linear is particularly interesting in that it gets at different proclivities in the human brain often ignored in traditional workplaces. http://www.brainleadersandlearners.com/general/innovation-design-and-the... I wrote about this need in a post titled Innovation, Design and the Human Brain – where I showed some of the same things you called for.

The challenge will be – to create strategies that cultivate a very new kind of thinking at work, while at the same time valuing people for what they already do well. I often think of it as riding a bus – while pushing it at the same time.

I’d like to suggest that you take these initial sparks of creative impetus that you laid out so well, call on a few strong leaders around you to collaborate, and develop strategies that will draw from these to create visible changes in a workplace. Then as you track the growth you desire – you can tweak and improve the implementation strategies. You are onto something unique – and I wish you the very best!!