
Best Practices Are Stupid
40 Ways to Out-Innovate the Competition
By Stephen Shapiro
Published 09/2011
About the Author
Stephen M. Shapiro is a renowned expert in the field of innovation, known for his unconventional and highly effective approaches. His extensive experience includes leading a 20,000-person process and innovation practice during his 15 years at Accenture. He is also the author of several influential books, including Personality Poker. Shapiro’s innovative methodologies have aided organizations such as Staples, General Electric, Telefonica, NASA, the U.S. Air Force, and USAA. His unique perspective on continuous innovation challenges conventional wisdom and encourages companies to consistently stay ahead of the competition.
Main Idea
In Best Practices Are Stupid, Stephen M. Shapiro argues that the conventional methods of fostering innovation are often counterproductive. Instead of treating innovation as a sporadic event, Shapiro advocates for an ongoing, systematic approach embedded in the organizational culture. He challenges the reliance on traditional best practices, suggesting that they often lead to mediocrity and stifle true innovation. Through 40 counterintuitive strategies, Shapiro provides a roadmap for organizations to innovate more effectively and sustainably, ensuring they remain competitive in an ever-changing market.
Table of Contents
- Introduction
- Innovation as a Continuous Process
- The Myth of Best Practices
- Engaging the Right People
- Defining Challenges Clearly
- Increasing Creative Output
- Innovating Through Processes and Strategies
- Harnessing Technology for Innovation
- Conclusion
Introduction
The premise of Shapiro’s book is that much of what organizations believe about innovation is fundamentally flawed. He opens by debunking the myth that innovation is best driven by asking employees for their ideas, as this often results in a flood of impractical suggestions and organizational noise. Instead, Shapiro introduces the concept of continuous, structured innovation as a means to stay ahead of the competition. This approach involves embedding innovation into the very fabric of an organization, making it a constant and integral part of the business strategy.
Innovation as a Continuous Process
Shapiro emphasizes that innovation should not be seen as a one-time event but as a continuous process that permeates the organization. He outlines three levels of innovation:
- Innovation as an Event: This is where most companies start, holding brainstorming sessions or contests to generate ideas. However, the gap between idea generation and implementation often leads to inefficiencies and missed opportunities.
- Innovation as a Capability: Here, companies put in place structures and processes to define problems, generate solutions, and implement them effectively. This approach makes innovation more systematic and repeatable.
- Innovation as a System: The ultimate goal is to create an environment where innovation is embedded in every aspect of the business. Employees continuously seek to improve and innovate, leading to ongoing value creation.
Shapiro argues that achieving the third level, where innovation is systemic, is crucial for long-term success. He draws parallels with Charles Darwin's theory of natural selection, suggesting that it is not the strongest or wealthiest companies that survive, but those that can adapt and evolve.
The Myth of Best Practices
Shapiro takes a bold stance against the reliance on best practices, which he argues can lead to mediocrity. He cites the example of Progressive Insurance, which chose to innovate by creating the Immediate Response Vehicles, a unique industry offering, instead of copying competitors' best practices. Shapiro points out that blindly following best practices is a game of catch-up, not a strategy for leading the market.
He identifies areas where best practices can be useful, such as core and support functions that should run efficiently. However, he stresses that for differentiating capabilities, innovation must be unique and not based on what others are doing. Cross-industry best practices can sometimes be revolutionary, as illustrated by Southwest Airlines benchmarking an Indianapolis 500 pit crew to improve plane turnaround times.
Engaging the Right People
Shapiro highlights the importance of engaging the right mix of people to unleash a team’s full potential. He argues that expertise can sometimes hinder breakthrough thinking, as experts tend to have fixed ideas. For instance, Unilever developed a novel toothpaste by drawing on knowledge from its laundry detergent division, demonstrating the power of cross-disciplinary collaboration.
"The more you know about a particular topic, the more difficult it is for you to think about it in a different way." - Stephen M. Shapiro
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