Metal, water, wood, fire, and earth. Seemingly close to the ‘panchabhutas’ or the elements making up the universe, but these are the ‘five elements of change’ that Kaihan Krippendorff discusses in ‘The Way of Innovation’ ( >www.vivagroupindia.com ).
The first phase is of metal or ‘discontent,’ when the environment is rigid and lifeless, and the energy is frozen, the author describes. “The system is stuck in a fixed set of beliefs, assumptions, attitudes, habits, or identities so completely that an organisation can only maintain the status quo; it cannot respond to threats and opportunities with sufficient speed.”
For change to happen in such an organisation, someone there with a powerful commitment, vision, or aspiration has to realise that the vision cannot be accomplished under the current conditions, Krippendorff advises.
Entrapment is, however, the foundation out of which emerge many great organisations and products, he avers. “Nearly every company that has produced breakthrough growth in revenues and profitability over the past decade emerged out of an industry entrapped by false beliefs.”
Phase two is ‘water: imagination,’ when innovation begins to take shape like a pocket of water, fluid and spontaneous, devoid of structure. “A few people are beginning to see that what was once deemed impossible can actually be achieved. They dream of alternatives and brainstorm new strategic options and, by introducing them into their organisation’s dialogue, begin altering the immaterial world.”
But a big risk, as the author cautions, is that the leaders of the innovation may lose their energy to the mass of non-believers just as water will slide off the table without the structure of a glass to contain it. He finds a major barrier to the ‘water phase’ often arising in selection – which ideas the people with the power to select ideas (the gatekeepers) will select and which they will kill off.
“It is important to choose carefully in which context you will generate your strategic ideas. The context in which they are conceived can be more important to their success than the virtue of the idea itself.”
Third comes ‘wood,’ the formation phase, in which the effort can overshadow results with the leader gathering resources, convincing others to believe in a future, and warning against slipping back into complacency; or, in Zen-speak, growing the wood and bending it into a bow to unleash the potential energy.
Most new ideas fail this long, thankless test of turning a dream into a reality, rues Krippendorff. “The great energy being invested into the innovation yields little encouragement. Sales are not growing; customers are not buying; newspapers are not covering your innovation. Without such feedback you may want to quit, and in fact, many innovators do.”
For success in this phase, he guides innovators to: target influential users; look for ‘pull,’ or latent needs, and craft an offering and message that will resonate with them; move these influential customers over to your side; and encourage and empower them to tell their friends.
The fourth phase is one of breakout, the ‘fire,’ the tipping point at which the idea has attracted the critical mass needed to begin self-generating. “Then the innovation is ‘on fire.’ People switch sides and want to be part of this new wave of change. The competition, which once discounted the innovation, takes notice and responds.” Watch out, though: For, like fire, this phase is characterised by disorder and speed, Krippendorff notes. Unlike as in the ‘wood’ phase which needed patience, here you need speed, creativity, and a careful calculation of competitive behaviour, he instructs. “For those who have the skill to succeed through breakout, the opportunity exists to stay on top.”
And the final phase, named ‘earth’ is one of consolidation, in which the innovation eventually matures and becomes like earth – stable, consistent, and reliable – the author says.
At maturity, continued success depends on consistency rather than unpredictability, where the benefits of being small and fast do not come handy, he distinguishes. And you would need to build defensive walls, as with a piece of land, by locking in clients, locking out competition, and locking up resources.
Is that a return to the state of rigidity we’d started off with, you may wonder? “Before rigidity was an enemy to overcome, now it is a close friend. It provides predictability and enables you to sustain your innovation,” Krippendorff concludes.
Insightful read that draws on the timeless wisdom of the East.
