To be a great innovator, learn to embrace and thrive in uncertainty
Innovators don't ignore risk; they are just better able to analyze it in uncertain situations.
19 September, 2020
David McNew/Getty Images
Madam C.J. Walker, born Sarah Breedlove, was America's first female self-made millionaire.
<p> She pioneered a line of hair care and beauty products for people of color early in the 20th century, and the recent Netflix series "Self Made" details the story of this talented innovator and the challenges she overcame on the way to her success.</p><p>To accomplish her goals, she had to face overwhelming uncertainties. How would she finance her business? Would her partnerships fail? Would her products sell? Would ruthless competition and racism get in her way? Madame Walker's future was far from certain when she began her journey, but that did not dissuade her.</p><p>It is tempting to think that innovators are a breed apart or perhaps lucky to be in the right place and time. But research shows this is not the case. So what characteristics do innovators like Madam Walker have that lead them to the seemingly serendipitous moment? What makes for a successful innovator or entrepreneur?</p><p>I am a <a href="https://scholar.google.com/citations?hl=en&user=qxpLL24AAAAJ" rel="noopener noreferrer" target="_blank">researcher and professor</a> who studies strategy and entrepreneurship. I am also myself an entrepreneur, angel investor and board member for startups and innovative firms. Pop culture might have you believe it is a tolerance for or even an obsession with risk that makes great innovators. But in fact, research has for decades demonstrated that innovators and entrepreneurs are <a href="https://hbr.org/2009/12/the-innovators-dna" rel="noopener noreferrer" target="_blank">no more risk-taking than the average person</a>.</p><p>Generally, innovators are much more comfortable making decisions under conditions of uncertainty than the average person. Additionally, innovators tend to have a set of skills that allows them to better navigate this uncertainty. My experience and research has shown that not only are these abilities effective, but they can also be learned and practiced and anyone can improve their innovation skills.</p>
<h2>What is risk? What is uncertainty?</h2><p>Risk is when the factors determining success or failure are out of your control but the odds of success are known – a game of dice, for example. You can't control whether a 2 or a 12 is rolled, but you know the odds.</p><p>Uncertainty is when the factors determining success or failure are not necessarily out of your control, but are simply unknown. It is accepting a challenge to play a game that you do not completely know the rules of. Innovators tend to be more willing to venture into the unknown, and therefore are more likely to engage in ambitious projects even when <a href="https://doi.org/10.1177%2F0149206305279486" target="_blank" rel="noopener noreferrer">outcomes and probabilities</a> are a mystery.</p><p>Interestingly, risk and uncertainty appear to trigger <a href="https://doi.org/10.3389/fnhum.2013.00927" target="_blank" rel="noopener noreferrer">activity in different parts of the brain</a>. Functional magnetic resonance imaging has allowed researchers to discover that risk analysis is a largely rational and calculation-driven process, but uncertainty triggers the ancient fight-or-flight part of the brain. This research would suggest that experienced innovators are better able to maintain their analytical capabilities in spite of the adrenaline and instinctual response that arises when confronting uncertainty.</p><p>Innovators don't ignore risk; they are just better able to analyze it in uncertain situations.</p>
<h2>Skills of innovation can be learned</h2><p>The chemical response to risk and uncertainty may be hardwired in our brains, but that doesn't mean you are either born an innovator or not. Innovative capacity can be learned.</p><p>Jeff Dyer, Hal Gregersen and the late Clay Christensen spent years investigating the characteristics of successful innovators and broadly divide the skills of innovation into two categories: <a href="https://hbr.org/2009/12/the-innovators-dna" target="_blank" rel="noopener noreferrer">delivery skills and discovery skills</a>.</p><p>Delivery skills include quantitative analysis, planning, detail-oriented implementation and disciplined execution. These are certainly essential characteristics for success in many occupations, but for innovation, discovery must come before delivery.</p><p>Discovery skills are the ones more involved in developing ideas and managing uncertain situations. The most notable are:</p><ul><li>The ability to draw connections between seemingly disparate ideas and contexts.</li><li>A tendency to question assumptions and the status quo.</li><li>A habit of looking at what is contributing to a problem before rushing to a solution.</li><li>The frequent use of systematic experimentation to prove hypotheses about cause and effect.</li><li>The ability to network and broaden a set of relationships, even without an intentional purpose.</li></ul><p>Like any skills, these can be learned and cultivated through a combination of guidance, practice and experience. By asking the right questions, being observant or mindful, experimenting and networking with the right supporters, innovators will be more likely to identify opportunity and succeed.</p><p>My colleagues' and my own research and experience are summed up in our book "<a href="https://www.titaniceffect.com/" target="_blank" rel="noopener noreferrer">The Titanic Effect</a>." We describe the PEP model of successful entrepreneurs and innovators. It stands for passion, experience and persistence.</p><p>Successful innovators are passionate about the problem they are solving and <a href="https://doi.org/10.1002/sej.1212" target="_blank" rel="noopener noreferrer">share this passion</a> with friends and family, potential customers, supporters and other stakeholders.</p><p>Innovators also tend to have personal experience with the problem they are solving, and this yields valuable insight and firsthand knowledge.</p><p>Finally, innovation takes persistence. As Walker experienced, growing a business – even with proven products – does not happen overnight. It takes someone willing to push the boulder uphill to make it happen, and often, the more disruptive the innovation, the longer society may take to embrace it. Madam Walker amply <a href="https://www.titaniceffect.com/blog/2020/7/17/self-madewhat-can-startups-learn-from-madam-cj-walker" target="_blank" rel="noopener noreferrer">personifies the PEP model</a>.</p>
<h2>Innovation now and in the future</h2><p>
During this pandemic, many people might be inclined to batten down the hatches, tighten their belts and ride things out by sticking to what they already know.
</p><p>
But uncertainty and change create opportunity and a <a href="https://store.hbr.org/product/the-innovator-s-solution-creating-and-sustaining-successful-growth/16444" target="_blank" rel="noopener noreferrer">need for innovation</a>. The pandemic has created or exacerbated many problems that are ripe for innovative solutions.
</p><p>
Practices that were until recently on the fringe of acceptance – such as <a href="https://theconversation.com/coronavirus-telemedicine-is-great-when-you-want-to-stay-distant-from-your-doctor-but-older-laws-are-standing-in-the-way-134885" target="_blank" rel="noopener noreferrer">telehealth</a>, food or grocery delivery, <a href="https://theconversation.com/chess-is-taking-over-the-online-video-game-world-and-both-are-changing-from-this-unlikely-pairing-143790" target="_blank" rel="noopener noreferrer">e-sports</a> and online education – are now being accepted by mainstream society. As with anything relatively new, there is lots of room for radical improvement.
</p><p>Now is not the time to put blinders on and close your eyes to uncertainty. If you build your discovery skills, you are more likely to create opportunity and persist through uncertainty. Like Walker, anyone can cultivate the abilities to navigate uncertainty and create positive change. Innovators are not a breed apart.<img src="https://counter.theconversation.com/content/143876/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1"></p><p><a href="https://theconversation.com/profiles/todd-saxton-301452" target="_blank">Todd Saxton</a>, Associate Professor of Strategy and Entrepreneurship, <em><a href="https://theconversation.com/institutions/iupui-2368" target="_blank">IUPUI</a></em></p><p>This article is republished from <a href="https://theconversation.com" target="_blank">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/to-be-a-great-innovator-learn-to-embrace-and-thrive-in-uncertainty-143876" target="_blank">original article</a>.</p>
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Venture investors need to invest in Black-owned businesses
Less than 1% of all venture capital funding in the US is given to Black entrepreneurs. Now is the time for that to change.
08 September, 2020
Credit: Big Think
- Abner Mason, CEO and founder of health care startup ConsejoSano, is calling for all venture capital firms in the United States to pledge to invest 13% of their funds in African American businesses.
- Currently, Black entrepreneurs receive less than 1% of all venture capital funding.
- The 13% target reflects the percentage of Black Americans and is a nod to the 13th Amendment.
<p>The murder of George Floyd has brought America to a much-needed reckoning on the racism in American society. Young people are marching, white people are reading, and churches are preaching about ways we as people can transform the way we treat Black people. Notably, many business leaders are pledging to end racism. But once the marching ends what will be different in America?</p><p>As a Black business leader, this newfound desire to address America's original sin is a breath of fresh air in the midst of this pandemic. But I wonder how long this new zeal to change will last and, more importantly, what practical steps and sacrifices will be made to make the promise to end racism real.</p><p>Here is one practical solution that all investors can take to make their promise real. I'm calling on all venture capital firms in the United States to pledge now to invest 13% of their funds in African American businesses. I suggest 13 as a target to both reflect the percentage of Black Americans and a nod to the 13th Amendment. I'm reaching out to friends in the social impact space to help me set up the organization that will monitor this.</p>
<blockquote>Here is one practical solution that all investors can take to make their promise real. I'm calling on all venture capital firms in the United States to pledge now to invest 13% of their funds in African American businesses. </blockquote>
<p>My life reflects both America at its best in terms of ending racism and at its worst.<br></p><p>As an African American CEO of the health care startup <a href="https://consejosano.com/" target="_blank">ConsejoSano</a>, I've focused on using technology to connect low-income and multi-cultural people to care in our health care system where their needs are often overlooked. Also, I've lived a blessed life. I grew up in an integrated public school in North Carolina where my parents and church taught me never to judge a book by its cover. They taught me that not all white people were motivated by racism and to seek out white allies in my life path.</p><p>This advice paid off. I found my way out of NC to a prep school in New England where I was one of seven Black students out of three hundred. I then made my way to Harvard College where Black students were less than five percent of my freshman class of thousands. I faced a choice that most young Black men of my generation made: Will I define myself solely by my race or pretty much ignore my race, ignoring racists, and look for allies? I chose the allies path. </p><p>After a short stint in the management consulting field, I found myself working in state government in the MA Department of Transportation where I learned a powerful truth about life—good intentions are not enough. No one cared that we had good intentions to get buses to passengers, we had to get the buses out to waiting passengers. Visible results, not intentions mattered. This lesson speaks to me today when I consider America's response to racism.</p><p>I went on to advise three governors and launched a nonprofit to address the AIDS crisis in Africa, helping to created what later would be called the PEPFAR program. What I learned through this entire career path was that I could pretty much sense and ignore racists and seek good white people at every level. These were my survival techniques.</p>
<p>This strategy hit a wall when I entered the venture capital arena launching a health tech company where I was asking wealthy white men to invest in the leadership of a Black man. In the more than 40 pitches I made to create our Series A, I encountered 99% white male investors who were blunt saying they were not investing in my product or projections; they would be investing in me. I could no longer follow my life strategy of ignoring investors with racist views. I was pitching the 1% of the 1% who lived lifestyles and had social worlds completely different from my own. We both could sense the cultural and lifestyle disconnect. Following my pitches I heard comments such as, 'I'm not comfortable with you being in charge,' or 'I'd imagine you being good at sales,' or 'Let's keep you as Chief Evangelist or something like that.'</p><p>What became clear to me was that uber-wealthy white men could imagine a Black leader as a minister not as a CEO. In my conversations with other Black startup leaders, I realized I was not alone. Then I looked at the data which confirmed my experience. I found <a href="https://hbr.org/2020/06/a-vcs-guide-to-investing-in-black-founders" target="_blank">only 1%</a> of venture capital-funded startup founders are Black. Ultimately, I did find investors who believed in me and my product and I was successful in gaining my Series A through white male investors who cared.</p><p>Today, I'm no longer a young Black man navigating the corridors of white power, but even as a successful entrepreneur I'm still facing the greatest degree of discrimination I've ever encountered in my life. Corporations posting 'Black Lives Matter' is nice, but as I learned in my job in transportation, the young Black entrepreneurs can no longer praise good intentions. They need results.</p><p>If America is serious about the desire to end racism, Black Americans are going to have to follow the lead of Langston Hughes who famously said, "I will not take 'but' for an answer."</p>
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4 ways women can become strong, confident leaders—without acting like men
Big Think co-founder and CEO Victoria Brown breaks down the process of transitioning from founder to boss in her new book, Digital Goddess.
26 August, 2020
Credit: Francesco Carta fotografo via Getty Images / Big Think
- In her forthcoming book, Digital Goddess: The Unfiltered Lessons of a Female Entrepreneur, Big Think's founder and CEO, Victoria Montgomery Brown, discusses the challenges of transitioning from founder to boss.
- Part of the problem is that women may think they need to act like men in order to be successful.
- Brown offers four pieces of solid advice to not only survive but thrive on the way to becoming a CEO.
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<p>One of the hardest challenges in business might be transitioning from founder to CEO. This transition is especially difficult when you're a woman, writes Big Think's co-founder and CEO, Victoria Montgomery Brown, in her upcoming book, <em><a href="https://bit.ly/2B9sCDz" target="_blank" rel="dofollow">Digital Goddess: The Unfiltered Lessons of a Female Entrepreneur</a></em>.</p><p>Women are categorized differently than men in nearly every facet of business and life. In the chapter, "Boss Not B*tch," Brown calls out the stark differences in perception. Entrepreneurs are considered creative, innovative, and pioneering, while CEOs are powerful, controlling, and established. These labels are often attributed to the same person, however. How do we find a fairer representation, especially when contemplating the role of a female CEO? </p><p>Part of the problem, Brown writes, is that women think they need to act like men in order to be successful. </p><p style="margin-left: 20px;">"I think that when women are insecure about their own leadership capacities or are convinced that to lead, they need to act like men, they inadvertently become their own worst selves. I've certainly fallen into that trap."</p><p>Brown spends the rest of the chapter describing how not to fall into that trap. Below are four methods to implement on the road to success. </p>
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzU4MjM4MS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyNjE0NDU5MH0.Dz77na_LzxfPYCzAMO_bIgDAblU4c202RanY00mpnfE/img.jpg?width=980" id="9d209" class="rm-shortcode" data-rm-shortcode-id="480eb70708dabcbc27b11ba804c5b412" data-rm-shortcode-name="rebelmouse-image" alt="Spring Reflection in Water and Duckling Family Swim. Female leadership." />
Credit: Vicki Jauron, Babylon and Beyond Photography / Getty Images
<h3>Nurture your business</h3><p>As Brown writes, women tend to be nurturers—a positive attribute for growing a business. In fact, female-led private tech startups have a <a href="https://www.forbes.com/sites/allysonkapin/2019/01/28/10-stats-that-build-the-case-for-investing-in-women-led-startups/#1daa8a3959d5" target="_blank" rel="noopener noreferrer dofollow">35 percent higher return on investment</a> than male-led companies. That fact could at least in part be due to a nurturing attitude.</p><p>Not that Brown always toed that line. She originally adopted a command and control attitude—the wrong approach. She thought it was what she was <em>supposed to do</em>. Modern businesses adopt a militarized language, one quite suited to the male competitive temperament. </p><p>Rising above competition doesn't require a slaughter. Some people are better at jiu jitsu than taekwondo; both have a place. Brown believes command and control might work in the short term, but she's not convinced it's a sustainable approach. </p><p style="margin-left: 20px;">"A business is not an army, and the concept of 'controlling' them will not get the best out of people." </p><p>In nurturing Big Think, Brown hired employees who shared the values of the company. As Simon Sinek recommends, she <a href="https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action?language=en" target="_blank">started with why</a>, then found workers dedicated to that why. In the process, she found the best means for growing people's talent, not sticking them into a box and hoping they succeed.</p><h3>Communicate openly and effectively</h3><p>"Creating silos will kill you."</p><p>Companies that separate departments end up with groups of self-interested individuals. Self-interested workers inevitably follow a punishment and reward system. This is the reality experienced at many modern companies.</p><p>Brown points to research published in <em>Harvard Business Review</em> that found 95 percent of a company's employees don't understand the company's strategy. If you don't know your company's <em>why </em>(or how they're going to accomplish it), your daily workload is going to feel hollow.</p><p>Lack of communication is the nail in the coffin of startups. As Brown writes:</p><p>"If individuals are being rewarded solely on their own performance, they are motivated to take or use as much of the resources as they can, possibly to the detriment of the entire organism."</p><p>Communication is everything. Language is the coordination technology that helped humans collaborate and rise to the top of the animal kingdom. Keeping communication lines open is the key to survival on the savannah and in the conference room.</p>
<h3>Location matters</h3><p>Tethered to communication is location. We might be temporarily working from home right now, but humans are social creatures. We need to share space. Office design matters. </p><p>Big Think's original office was rented in a shared space. Everyone was scattered: a desk here, a table there. This workflow created a lot of miscommunication within groups and especially between departments. </p><p>When transitioning into their current offices, Big Think cofounders Brown and Peter Hopkins claimed the conference room, which was separated by glass doors from the rest of the crew. The team was united, but this single partition created its own problems. </p><p style="margin-left: 20px;">"They were less likely to come and talk with us because it seemed more formal."</p><p>Employees also felt awkward asking to use the conference room for meetings given the fact that Brown and Hopkins were usually inside. While Brown was initially disturbed by the suggestion of joining the rest of the team, she realized it was the proper strategy.</p><p style="margin-left: 20px;">"I've found that people, whether employees or partners, clients or our experts, respect the CEO or founder when they get down in the dirt." </p><p>Brown also realized that the concept of being "in charge" is stupid. She advises making yourself available for everyone in the organization. Don't be walled off and unapproachable. Even interns have a stake in your company. Understanding that is essential for long-term success. </p><p style="margin-left: 20px;">"The better you relate, the better you will communicate, but if you are separate you cannot actually relate."</p>
<h3>Flexibility is key</h3><p>As PayPal cofounder Reid Hoffman details in <em><a href="https://www.amazon.com/dp/1524761419?tag=bigthink00-20&linkCode=ogi&th=1&psc=1" target="_blank" rel="noopener noreferrer">Blitzscaling</a></em>, the company had to change its "always free" model to "ACH always free." Credit card fees were eating up their bank account. PayPal famously iterated numerous times before finding success. If they hadn't, Hoffman admits the company wouldn't have lasted.</p><p>Brown had a similar experience with Big Think. The website originally relied on sponsorship and advertising. A few years in, they pivoted to creating products for the corporate and educational space. Then they pivoted again.</p><p>As she writes, a company's mission might not change, but the strategies for achieving it will.</p><p>"Repeating something that worked in the past will often lead to failure."</p><p>In life and business, flexibility is key. Kodak famously <a href="https://mashable.com/2012/01/20/kodak-digital-missteps/" target="_blank" rel="noopener noreferrer">lost out</a> on the digital camera market. Jeff Bezos asked Duracell to white label batteries for Amazon. When the battery giant scoffed at the notion, Bezos found another company to do it—and it now owns <a href="https://marketingland.com/amazon-owns-more-than-90-market-share-across-5-different-product-categories-report-241135" target="_blank" rel="noopener noreferrer">98 percent of the market</a>.</p><p>Thankfully, Big Think is still here. That's in large part thanks to Brown watching cultural and business trends and course correcting when necessary. She admits it's never easy. By staying involved with your team, getting dirty with them, and nurturing the talent around you, you're more likely to succeed.</p><p>Most importantly, you can do it on your own terms, not those predetermined by a male-dominated business world.</p>
Video bonus: 8 Lessons I Learned the Hard Way So Other Entrepreneurs Don't Have To
<a href="https://bit.ly/2B9sCDz" ><img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMzU4MTU5OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzODI5NTcwMX0.4j27ASQY7YJCbQvU6YP1rs2obh-Sl_qR2u6itbmSJpU/img.jpg?width=980" id="13ba9" class="rm-shortcode" data-rm-shortcode-id="9a12e19c3df8979516063f09b47fb2e2" data-rm-shortcode-name="rebelmouse-image" /></a><p>Get an exclusive online course with Big Think founder Victoria Montgomery Brown, only when you <a href="https://bit.ly/2B9sCDz" target="_blank" rel="dofollow">preorder the new book</a> <em>Digital Goddess: The Unfiltered Lessons of a Female Entrepreneur. </em><br></p>
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The entrepreneur's guide to success: Follow these tips
Starting and running a business takes more than a good idea and the desire to not have a boss.
14 August, 2020
- Anyone can start a business and be an entrepreneur, but the reality is that most businesses will fail. Building something successful from the ground up takes hard work, passion, intelligence, and a network of people who are equally as smart and passionate as you are. It also requires the ability to accept and learn from your failures.
- In this video, entrepreneurs in various industries including 3D printing, fashion, hygiene, capital investments, aerospace, and biotechnology share what they've learned over the years about relationships, setting and attaining goals, growth, and what happens when things don't go according to plan.
- "People who start businesses for the exit, most of them will fail because there's just no true passion behind it," says Miki Agrawal, co-founder of THINX and TUSHY. A key point of Agrawal's advice is that if you can't see yourself in something for 10 years, you shouldn't do it.
Break down the secrets to a lucrative project management career
This course collection can get you trained and ready for a six-figure career in this field.
12 August, 2020
- The Premium 2020 Project & Quality Management Certification Bundle explores the most popular project management methodologies.
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- Valued at $2,699, the course package is on sale for just $45.99.
<script async="true" src="https://widgets.stackcommerce.com/js-deal-feed/0.1/widget.js" type="text/javascript"></script><p>For all its intricacies and varied approaches, project management is a relatively simple pursuit. Your employer gives you a complex task and your mission is to see it through to a successful conclusion. Of course, there are many paths to success or failure, so knowing which ones lead to happy stakeholders and your best career is where great project managers are made.<br></p><p>Part of knowing how to succeed is understanding all those paths, so <a href="https://shop.bigthink.com/sales/the-premium-2020-project-quality-management-certification-bundle?utm_source=bigthink.com&utm_medium=referral&utm_campaign=the-premium-2020-project-quality-management-certification-bundle&utm_term=scsf-366460&utm_content=a0x1P000004NCCE&scsonar=1" target="_blank">The Premium 2020 Project & Quality Management Certification Bundle</a> gives you a complete look at all the most popular methodologies for running a successful project.</p><p>This collection includes 11 courses packed with more than 120 hours of instruction, each exploring the core tenets of the major project management approaches.</p><p>You’ll get a complete introduction to how project managers do what they do with the <strong>Project Management Certification Course</strong>. <strong>The Deeply Practical Project Management</strong> course goes even further, guiding first-timers through how to effectively plan a project, know its scope, craft a schedule, maintain a budget, and assess risks before you start. There’s even a focused look at cybersecurity threats to your work with <strong>Certified Information Systems Security Professional</strong> training.</p><p>Whether its <strong>Agile and Agile Scrum</strong> with its continuous testing and feedback process, <strong>PMBOK</strong> and its highly-structured set of standard project management terms and guidelines, or <strong>Six Sigma</strong> with its focus on improved efficiency through eliminating errors, you’ll explore the strengths and weaknesses of each method so you can best choose the right approach for your task.</p><p>The package also includes training geared specifically to help students pass Agile and PMBOK certification exams administered by the Project Management Institute (PMI), the premier oversight body in the project management field.</p><p>These courses are valued at $2,699, but with this limited-time discount, the entire bundle is available now at <a href="https://shop.bigthink.com/sales/the-premium-2020-project-quality-management-certification-bundle?utm_source=bigthink.com&utm_medium=referral&utm_campaign=the-premium-2020-project-quality-management-certification-bundle&utm_term=scsf-366460&utm_content=a0x1P000004NCCE&scsonar=1" rel="noopener" target="_blank">about $4 per course, just $45.99.</a></p><p><em>Prices are subject to change.</em></p><div data-react-checksum="-250585689" data-reactid="1" data-reactroot="" style="position: relative;"><a data-reactid="2" href="https://shop.bigthink.com/sales/the-premium-2020-project-quality-management-certification-bundle?utm_source=bigthink.com&utm_medium=referral-cta&utm_campaign=the-premium-2020-project-quality-management-certification-bundle&utm_term=scsf-366460&utm_content=a0x1P000004NCCE&scsonar=1" rel="noopener" target="_blank"> </a>
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