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Hidden Asset

By: Bill BreenWed Dec 19, 2007 at 12:46 AM
Thomas Davenport has helped midwife some of the biggest trends to have shaped business over the past 25 years--among them, reengineering and knowledge management. Now he's asking: Where do ideas come from? And how do they get traction? Here's his eight-point plan for winning with ideas.

There are no truly new ideas out there.

Every big idea owes a considerable debt to related ideas that came before it. Reengineering's key components already existed--they had just never been pulled together into one package. Of course, idea practitioners should avoid pointing out that the next big thing amounts to a reshuffling of other ideas. One of the tensions that idea sellers have to manage very carefully is, on the one hand, the need to get people's attention. The innovation has to be new and exciting. But they also have to talk about the idea in a responsible way so people understand how difficult it really is.

I wrote the first article on reengineering and the first book, but not the best-selling article or the best-selling book. What happened? I like to say that I bore the burden of academic respectability. Both the article and the book were less romantic, less revolutionary in tone than those that followed. Michael Hammer introduced his version with an article titled "Reengineering Work: Don't Automate, Obliterate." The headline for my piece: "The New Industrial Engineering" (which tells you something about the writing). Hammer and later James Champy were very successful in taking their ideas into the marketplace; they were not as successful in creating versions of their ideas that people could use. And that's what led to reengineering's decline. It became the innovation that forgot people.

Innovation comes from the front lines, but the top sets the tone.

The leadership at Hewlett-Packard used to encourage the notion that innovation should bubble up from below. HP was an early adopter of quality, which grew out of the company's Japanese unit. Change management, reengineering, logistics--HP was a laboratory for new innovations. Back when HP was pursuing knowledge management, I asked whether the CEO, Lew Platt, was interested in the idea. The general reaction was that the two words had probably never passed his lips--and nobody cared. They didn't need his buy-in. Instead, they pursued an idea at the business-unit level; then they developed some approach to sharing the idea across units. The real test of an idea was whether people throughout the organization--not just the CEO--were attracted to it.

Nowadays, I gather that HP has become much more hierarchical. If the idea doesn't have Carly Fiorina's sign-off, it won't get very far. In that environment, the idea practitioner really needs to understand the incentive for change--that is, where the demand lies--and ensure that the idea lines up with the leadership's focus.

Every new initiative needs a champion.

All ideas must have passionate advocates behind them--people who understand that business-improvement initiatives are vital to a company's success. These idea practitioners are the critical links between ideas and action. Their most noble attribute is their lack of cynicism. They certainly recognize the Dilbertian aspects of the contemporary workplace, and yet they have the ability to see through the problems of new business ideas to their true potential. They hold out a belief that people and organizations can change. At the same time, they are almost always business veterans whose decades of experience have taught them how difficult it is to bring about a new business idea.

Dan Holtshouse, who has helped lead Xerox's change from a copier company to "The Document Company," typifies a successful idea practitioner. First off, he minimizes his own role by giving the credit to his team. Second, he's been with Xerox since the 1970s, and he has the personal network inside the company to know whom to enlist in a change effort. He's a middle manager in the corporate strategy office, and yet he's well connected at the senior management level. Because he has pretty close ties to CEO Ann Mulcahy, his ideas manage to get some traction.

Idea practitioners have the seasoning to understand the company's culture and how to communicate their idea. My favorite example of this is Vince Barabba, who heads up marketing research at General Motors. GM executives spend a lot of time looking at new car models; they're accustomed to seeing things in three dimensions. So Barabba built a giant Lego model of a market-research study--people could literally walk among the bar graphs. That's a great demonstration of someone translating information and communicating it in a way that fits the company culture.

From Issue 80 | March 2004

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October 6, 2009 at 11:38pm by Anthony Burton

I have actually heard of Thomas. He is a very inspirational person.
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