Is innovation about complexity or simplicity?

This blog first appeared on the 6-heads.com website.

There is a desperate need and, I would say, a desperate desire in our society today for innovation. We complain about rigid rules and same-old techniques in business and hold up companies like Google, with its 20% rule that enables engineers to spend one day a week working on projects outside their job descriptions, as the holy grail of workplaces. We embrace new technologies such as Twitter and iPads and shun ‘outdated’ objects such as CD players and notepads. We want something new, something exciting, something big – and we want to feel part of it.

Our way of life is changing, and there are numerous complex issues facing our generation. The global population is ageing and becoming more urban; diseases which have been eradicated in the western world continue to blight developing countries; countries once shrouded in secrecy have opened their borders; technology has enabled instant communication across social classes and nations; energy security has been shaken and alternative sources are being championed by many; and the recent financial crisis has shattered our trust in companies and institutions.

It is easy to look at the challenges we face and feel overwhelmed. We cannot conceive of a way to solve them, given the extraordinary complexity of the modern world. Every part of society must respond, from education systems to the business world and political structures to retail environments. But are we in danger of making the process of finding a solution too complicated?

Perhaps in our desire for something new, something big, we are overlooking the simplicity of innovation. An innovative idea doesn’t have to be the most complex one, something that only a few can understand. The solutions to the challenges facing our world will need to cross borders and social classes, so they cannot be dependent on culture, income or social structure.

Innovation isn’t about invention. It isn’t focused on finding the new, rather it seeks to find the better and strive for the best. Many of the most innovative ideas we have seen in recent times have been the result of combining existing ideas in simple ways. For example:

 - The iPod wasn’t the first product of its kind, but it was innovative because of the way it combined existing technologies into one easy-to-use, accessible and transportable product and has led to a series of spin-offs.

 - Mobile banking, which has transformed the way millions of people in countries such as Kenya and India do business and manage their money, simply combined services that already existed and made them relevant to new situations.

 - Loyalty programmes, such as frequent flier reward miles, were introduced a few years ago as an innovative expansion of existing marketing strategies but are now standard practice for many businesses.

 - And the social network Twitter isn’t really that different to previous platforms and websites, but when combined with video phones and mobile access around the world it has radically changed the global media landscape.

Perhaps the key to addressing the challenges the world is facing isn’t in trying to think of totally new ideas, but finding ways that existing concepts, behaviours and technologies can be combined and improved to do something truly innovative.


Jo Nussbaum
Consultant (jo@linstockcommunications.com)

The final run – London to Paris Bike Ride Part 4

Yesterday was the last day of the ride from London to Paris. Aching legs pedalled from Beauvais as the rain came down. An early vicious climb brought the recently eaten breakfast uncomfortably high up the oesophagus.

Day 4 was more leisurely than the previous rides, with the trip's organisers encouraging stops at the tabacs to slow progress. Some riders made extended stops and had to be rounded up by our van drivers before lunch.

The people on the ride have been great and you get many snippets of conversation with those you pass and who pass you. As you might have seen from previous blogs, my ride has raised money for Help for Heroes as part of Honister Capital's pledge to donate £100k. It is an excellent cause but there are many others. Talking to riders, what's clear is that for some the ride into Paris is an emotional one. They represent charities which have helped support and cure friends or family, and those where a cure has sadly not been possible.

The last few miles into Paris is a fantastic experience. The peloton of 138 cyclists (only one didn't finish) make an inspiring site as they cut through the city dressed in the same blue shirts. The Paris traffic, notoriously impatient and often plain aggressive, give way to the group and beep horns in support. As we ascend a short climb up to L'arc de Triomphe locals enjoying coffee in the ubiquitous cafe bars that line the pavements shout and clap applause. And then the Eiffel Tower stretches up above us as we cross the Seine to finish the 300 mile journey.

Thanks to all the friends, family and colleagues who sponsored me. If you've not then there's still time. Please click here.

Miles 300. Bananas 17. Cereal bars - I will probably never eat again! Flies 3.

Comfortably Numb – London to Paris Bike Ride Part 3

Egalite! Fraternite! Pharmacie! In the true tradition of the other cycle tour through France, when the going gets tough, riders reach for the medicine cabinet.

On day three of the ride, taking us 65 miles from Abbeville to Beauvais, cocktails of paracetamol, ibuprofen and codine take the sting out of aching legs and backs. Strapping is applied to aid knee strains and Vaseline... well sometimes you can give too much detail!

The duality of French hospitality was evident on day three: in one tabac locals invite a reporter from The Times to the Discotheque, in another, upon asking for four enticing bottles of ice cold Cokes, the fridge door is slammed shut with a sharp, "these are not for you".

Riding across northern France we come across poppy fields in full vivid bloom. My Grandfather fought in the 'Great War' in the Somme region, so some time to lower the cadence, pause and think.
The painkiller of choice has to be pastis. A sharp liquid aniseed snap adds some much needed steel in the legs and we push on through to Beauvais. Bananas 2. Cereal bars 5. Flies 1 (inhaled).

And now to Paris!

Keith Brookbank, Linstock Comunications

Fatigue – London to Paris Bike Ride Part 2

A word that means the same in England as it does in France! It's always good when communication is made easy. Though 'fatigue' in France is taking on more meaning and is certainly more acute.

Day Two of the Help for Heroes ride to Paris took us from Calais to Abbeville. Although promised that the first day would be the hardest, that was not the truth. Headwinds and 'undulations' made for a hard day's riding. The upside is that the French roads are not as riddled with pot holes as the English and the French motorists have respect for the velo and give plenty of room. The other source of fortification comes from the tabacs.  These offer welcome opportunities to take on fluids!

I recommend the Pelforth for long climbs, the Kronenberg for flat roads and Stella Artois only for downhill, obviously.

Muesli bars (I already hate the sight of them) 4. Bananas 3. Flies 2 ( due to gapping mouth). Sore neck 1.

Keith Brookbank, Linstock Communications

Anyone wishing to donate to Help for Heroes please follow this link.

Honister Help for Heroes London to Paris Bike Ride

Tired legs over the white cliffs of Dover, tall ships at night, little boats in the morning - so the saying goes.  

Having agreed enthusiastically one night at a bar that if ever Honister Capital did a bike ride to Paris, then I was most definitely 'in'. And with good cause Help 4 Heroes I could hardly say no!

With the bluff called, and feeling very much a little boat, a group of 140 cyclists set off from London yesterday morning. After an enthusiastic start we unfortunately had two of our number requiring hospital treatment after bad falls. Aside from that the main source of pain is the road. It's around 87 miles from London to Dover, and most of them hurt. The Kent countryside helps divert the mind and ease the pain, but welcoming country pubs pass by unused as we needed to make the 5pm ferry.

That aim came under threat when I suffered back to back punctures at around 50 miles. The second of these made a huge pop and split the rear tyre. Luckily there are mechanics at hand to help. But a big thanks to Money Marketing Editors past and present, John Lappin and Paul McMillan, who waited half an hour with me for the Mechanic's Van to arrive.

After a final and very silent ride through the streets of Calais, day one is now done. Big(ish) hills 4. Bananas 3. Muesli bars 6. Tired legs 2.

Today, France!

Keith Brookbank, Linstock Communications

Anyone wishing to donate to Help for Heroes please follow this link.

Redefining failure

Last Tuesday (14 June) NESTA hosted a lunchtime discussion with the ‘Undercover Economist’ Tim Harford* to celebrate the UK launch of his latest book: Adapt. The discussion was entitled: ‘Problem solving in a complex world’, and was a chance for Tim to discuss some of the ideas he raises in his new book. Tim believes that today’s world is too complex for ready-made solutions, and that the public, as well as businesses and leaders, need to adapt and change in order to tackle issues such as climate change, poverty and the financial crisis.

One of the most interesting ideas that Tim raised in his talk was about the place of failure in society, particularly within business and politics. Tim argues that our current systems reduce innovation and experimentation because we are too afraid to fail, and this is harming society. One example of this is the difference between the contribution of East Coast banks in America, which are now deemed too-big-to-fail, and West Coast companies such as Google, where executives say that 80% of their products don’t succeed.

At the drinks following Tim’s presentation I met two Masters students from Imperial and we had a lively discussion on the role of failure within business, commenting that most company reward schemes are focused entirely on success. We agreed that if we want to increase innovation we must create an environment in which people are willing to take risks and try new things. Therefore, we must reward those who experiment, for example through a monetary bonus or with verbal feedback in a review.

Tempering this, there is of course a need to protect against incompetence and ensure that the risks taken are calculated and proportionate to the reward on offer. Tim offered three rules for ‘successful failure’: a willingness to try a variety of things; making sure the failures you do have are survivable; and learning to quickly recognise the difference between success and failure. The companies and organisations that succeed in the coming years will be those that establish boundaries but accept that not all new ideas will succeed and yet encourage their employees (and clients and partners) to try new things anyway.

However, I believe that we must also change the language that we use. The word ‘failure’ has almost entirely negative connotations – it is the opposite of ‘success’. Yet every great innovator will tell you that their ‘failures’ taught them crucial lessons without which they would never have achieved their successes. We are taught from an early age that we should “learn from our mistakes”, with the assumption that we will make some, but for many people this instruction changes when they enter the world of work to “don’t get this wrong”. The implication is that failure is unacceptable, and therefore almost no risk is worth taking. This dampens creativity and reduces innovation, without which society will never improve.

* For those who don’t know him, Tim Harford writes a regular column for the Financial Times, as well as being a television and radio presenter and author. He is a gifted public speaker and writer, with an ability to explain complex economic theories in language that ordinary people can understand. His blog, at www.timharford.com, is definitely worth a read.

Jo Nussbaum, Linstock Consultant (jo@linstockcommunications.com)

Minority report

Below is an extract from a recent byline by Linstock Consultant Tony Cox in Money Marketing’s Retirement Strategy. To read the article in full click here. 

Minority report

Going gaga, losing your marbles, not being able to look after yourself into old age. Things most of us would rather forget when considering our social and financial future. And as research last year by AIFA and Prudential showed, financial advisers and their clients seem reluctant to discuss these issues.

But the current and predicted demographic changes to the UK population mean we must tackle the issue of how we look after ourselves in later life.

The number of people in the UK aged 65 and over will grow to 23 per cent by 2034. The impact of these demographic changes on the long term care sector, including product providers, advisers and care home owners, will be profound.

The Dilnot Commission is expected to report in July and is likely to make wide ranging recommendations for changes to how we fund long term care.

The danger is that one significant demographic issue – ethnicity – could get lost in the desire to address the needs of all.

The UK's Black and Minority Ethnic (BME) population is growing even faster than the wider population.  BME groups totalled 8.7% of the UK’s population in 2001 and the latest census, which Linstock has helped promote, is expected to show a big rise.

Unless policy makers consider issues specific to the BME population as they explore the future of long term care, the very real danger is that the UK’s rapidly growing minority ethnic groups will be left facing a social care system that does not understand them and is ill-prepared to provide for them. Commercial opportunities will be lost and social justice will suffer. 

To explore these issues, Linstock carried out research into the views of ethnic minorities on long term care.

Our research reveals that BME groups’ attitudes to caring for family, and perceptions of social care, differ considerably from the mainstream views held by the white British population.

The research reveals that the stigma attached to placing relatives in social care amongst these BME communities is unlikely to erode at the same rate as the traditional family model. This will create a gap in the ability of BME communities across Britain to provide or access appropriate care.  This presents a challenge for social policy, a market for care home providers and an extra consideration for advisers who are working with clients from ethnic minorities.

Language is also considered a big problem, as many elderly BME citizens may have only a small grasp of English, or, quite simply, may just prefer to communicate in their mother tongue. There is both a commercial and moral imperative for the industry to engage with these communities, perhaps through their own networks, newspapers, TV and internet forums, in order to address these issues.

Three things need to happen. First, policy makers need to seek advice from BME groups and those who work with them to understand their particular needs. Second, the long term care sector needs to understand the way in which they are perceived by ethnic minority groups in order that they can improve the sensitivity of their services and product offerings. Finally the industry needs to consider how it can better communicate with BME communities in order to break down the stigma that exists about the services that it provides.

So what is the message for financial advisers and the wider finance industry? First, you should look to develop and expand your offering to ethnic minority backgrounds to take advantage of this rapidly growing sector. Second, as the AIFA/Prudential report recommended future requirements such as long term care, should be signposted as part of defining and implementing a specific at retirement proposition.

It’s an opportunity that the industry would be gaga to ignore.

Tony Cox
Consultant at Linstock Communications