Here’s why networking isn’t just about landing your dream job — Hal Gregersen

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Fortune

At a dinner party a few years ago, Salesforce CRM 2.16% Founder Marc Benioff and Dropbox co-founder Drew Houston got to talking. Their conversation led to a new idea, and that idea led to Salesforce’s Chatter, an enterprise social network, Benioff recalled during an interview I had with him two years ago (for an upcoming book about what causes senior leaders, especially CEOs, to ask the right questions before someone else does it for them).

Their conversation led to a new idea, and that idea led to Salesforce’s Chatter, an enterprise social network. Chatter was not just a result of a chance encounter. At the age of 50, Benioff regularly invites 20- and 30-something year-old entrepreneurs to his house for dinner. It’s in this pursuit of perspectives different than his own that he is able to constantly bring new services and ideas to market. Benioff, who is known to buy smaller firms for people (not products), once told me, “I don’t have all the ideas. That isn’t my job. My job is to build a culture of innovation.”

Our research shows that innovators like Benioff have mastered the art of networking ideas. By purposefully growing their networks to include people from diverse industries and backgrounds, they are quicker to act on observations that spur innovation.

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MBAs can front a revolution in collaborative leadership – Deborah Ancona and Hal Gregersen

MIT Sloan Prof. Deborah Ancona

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From The Financial Times

There seems to be growing unease with the value we place on leadership. Susan Cain, author of Quiet, a best-selling book about the power of introverts, offers an example in a New York Times piece “Not Leadership Material? Good”. In it, she is specifically focusing on how college admissions favour applicants with leadership credentials.

She worries that too many slots are being offered to high-school seniors who are status and power-seekers. She bristles at the implication that students do not deserve merit scholarships or places at elite schools if they do great work as team players or solo artists.

Ms Cain deplores the fact that people who fall into the latter categories feel pressured to pretend they were born to run things. “If college admissions offices show us whom and what we value,” Cain says, “then we seem to think that the ideal society is composed of Type As.”

Good points, but let us not fall too far into the trap of saying that some people are leadership “types” and others are not. The really damaging thing for a society is to signal to people that “leaders” are different from those who are contributors and team members — rather than the same people at different moments and in different modes.

To understand the point, consider this example. A couple of years ago, a large, diverse group of people on MIT’s campus rallied round a project they all agreed deserved their best efforts: creating a memorial sculpture to honour the life of Sean Collier, a campus police officer who was murdered by terrorists in 2013.

Who led this project?

It is impossible to name one person. Professor J Meejin Yoon, head of MIT’s architecture department, designed the sculpture knowing that to make its massive interlocking granite pieces stand would require a technical feat of engineering.

As Prof Yoon commented, “developing and constructing the memorial requires a coming-together of like-minded, like-spirited people from many different disciplines to create something singular in the world”. She called it a “very MIT project”.

Throughout 2015, different contributors led efforts at key moments when their expertise was most relevant to making progress. Just as readily, they stepped aside when some new aspect of the project came to the fore. Combining those minds and hands did not bog the project down: an effort that should have taken three years was accomplished in one. Read More »

How to Cultivate Leadership That Is Honed to Solve Problems – Deborah Ancona and Hal Gregersen

MIT Sloan Prof. Deborah Ancona

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From strategy+business

In the aftermath of the Boston Marathon bombing in 2013, the terrorists responsible for that act took the life of a police officer, Sean Collier, who worked at the Massachusetts Institute of Technology (MIT). Those who knew and loved him at MIT resolved to commemorate his memory. J. Meejin Yoon, head of MIT’s department of architecture, designed a memorial to honor Collier’s love of the outdoors and spirit of service, while reflecting the university community he served. The memorial is composed of massive interlocking granite blocks. Making them stand up required a feat of engineering that pushed the technical limits of the material. A multidisciplinary group assembled to figure out how to complete the project. The group included faculty, students, and staff with expertise in architecture, construction, engineering, and masonry, as well as consulting experts in structural and civil engineering, landscape architecture, and lighting design. No one person directed the project from start to finish; instead, teams stepped up and stepped out, forming for just as long as their expertise was needed. The Collier Memorial was unveiled on April 29, 2015, just a few days after the second anniversary of the officer’s death. It stands today on MIT’s campus as a tribute to a life given in service to a community that rises to meet challenges.

When a collaborative project like the Collier Memorial comes to fruition, it might seem to happen without leaders. But in reality, the many leaders involved were following a model of leadership that is hard to spot until you know how to look for it. We call this approach challenge-driven leadership. These leaders are propelled by the intrinsic desire to solve problems and meet challenges creatively. They are not motivated by the trappings of authority, status, or showmanship. They don’t particularly want to lead, and they certainly don’t want to be led. But they excel at choreographing and directing the work of others, because their expert knowledge enables them to spot opportunities to innovate in a way that cannot be done by working alone.

Challenge-driven leadership is not right for every situation. But where innovation and entrepreneurship are required — and in particular where developing a solution requires drawing together diverse talents and perspectives to discover novel approaches — it tends to work well. No wonder we find it in many places where people are dealing with “wicked problems,” a term coined in 1967 by design theorist Horst Rittel that refers to broad challenges with no obvious solutions. This is the kind of leadership that many companies, government agencies, and nonprofits would do well to recognize and cultivate.

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The surprising way to come up with your next business idea — Hal Gregersen

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Fortune

Scott Cook, founder and CEO of Intuit INTU -0.43% , didn’t come up with his concept for the popular Quicken money management software sitting behind the desk or spit-balling ideas in a brainstorming session. He first conceived of it while watching his wife grow increasingly frustrated preparing the family’s finances. From a single observation, combined with Cook’s understanding of computers, one of the world’s most successful financial software companies was born.

Consider all of the times you’ve asked yourself: “Why didn’t I think of that?” Indeed, the world’s next pioneering innovation could be sitting in plain view for anyone to discover. But what is it that inspires some people to take the next step on something overlooked by others?

Our research of high-impact leaders shows about one-third of them fall into the camp of observers –carefully observing the world around them with all of their senses, and identifying common threads across often unconnected data to provoke unique business ideas. Observation has transformative power. Yet, in today’s 24/7 culture, many of us operate on autopilot, starving our brain’s creative capacity. Here are three ways to tune this critical discovery skill and increase the odds that your next observation adds up to great innovation.

Schedule It

The most obvious way to become a great observer is to actively observe. Take a page from Cook’s book and watch your spouse or child perform a task. Schedule observation excursions; pick a company to follow, or set aside 10 minutes to observe something intensely. Following observation periods, think about how that might lead to a new strategy, product service or production process.

Read the full post at Fortune.

Hal Gregersen is Executive Director of the MIT Leadership Center and a Senior Lecturer in Leadership and Innovation at the MIT Sloan School of Management.

How We Rank The Most Innovative Companies 2017 – Jeff Dyer and Hal Gregersen

Jeff Dyer, Horace Beesley Professor of Strategy at the Marriott School of Management at Brigham Young University

Hal Gregersen, Executive Director of the MIT Leadership Center

Hal Gregersen, Executive Director of the MIT Leadership Center

From Forbes

Most innovation rankings are popularity contests based on past performance or editorial whims. We set out to create something very different with the World’s Most Innovative Companies list, using the wisdom of the crowd. Our method relies on investors’ ability to identify firms they expect to be innovative now and in the future. You can learn more about our research on innovation at The Innovator’s DNA website.

Companies are ranked by their innovation premium: the difference between their market capitalization and the net present value of cash flows from existing businesses (based on a proprietary algorithm from Credit Suisse HOLT). The difference between them is the bonus given by equity investors on the educated hunch that the company will continue to come up with profitable new growth.

To be included, firms need seven years of public financial data and $10 billion in market cap. (Facebook, for example, would rank high on the list if we used only the data since they went public.) We include only industries that are known to invest in innovation, excluding industries that have no measurable investment in R&D, so banks and other financial services don’t make the list. Nor do energy and mining firms, whose market value is tied more to commodity prices than innovation. Big caveat: Our picks do not correlate with subsequent investor returns. To the extent that today’s share price embeds high-growth expectations, one might even anticipate low returns to investors, as these expectations may be difficult to meet.

We use something called the Innovation Premium to compile our list. It is calculated first by projecting the cash flows a company produces from its existing businesses without any growth and look at the net present value (NPV) of those cash flows. We compare this base value of the existing business with the company’s current total Enterprise Value (EV): Companies with an EV above their base value have an innovation premium built into their stock price. You can read a more detailed explanation of our work around innovative companies and leaders in our book The Innovator’s DNA (Harvard Business Press, 2011), written with Harvard Business School professor Clayton Christensen. The following steps outline this approach in greater detail:

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