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Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

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Page 1: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Experimenting with ‘Fun;’‘Fun’ With Experimenting

What the (Von) Hayek Do You Think You’re Doing?

Page 2: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The Content of the Audienceis more important thanThe Content of the Talk

Page 3: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

This Talk is About….

An Effective/Affective Innovation Methodology

Emphasizing Competitive Experimental Designs

- 5X5 X-Teams

Page 4: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Not ‘Publish or Perish’ but…

“Demo or Die”

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Page 5: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

‘Demo or Die’ Dynamism

- What else…?- Who else…?- How else…

- Why not…?

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Page 6: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

I research/advise/explore…

‘Behavioral Economics’ of Experimentation & Innovation in

Organizations

Via their Models, Prototypes & Simulations

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Page 7: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Games

Page 8: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Noun & Verb

Design Competition

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Bruneschelli’s Dome 1419

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X-Prize

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ARDC 6.270

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Page 14: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

DeKa’s FIRST

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Page 15: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

What kind of…

Design Competition?

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Combining Affect & Effect

Lightweight;Heavy Impact;

“Fun”

Page 17: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

My ‘Unit of Design/Competition’

From

‘Playing with Prototypes’ to

Proposing “Experiments Portfolios”

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Page 18: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Why ‘Experiments’?

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Page 19: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Customer Focus? A Failed 80/20/20

Page 20: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

You will be the

CEO

Page 21: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

You don’t have to be the CEO to be the

Chief

Experiments

Officer

Page 22: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The CEO’s Deliverable:

A Portfolio of Testable Business Hypotheses

that Matter!

Page 23: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

A Hypothesis

• Frames a Challenge• An Organizing Principle for Convening ‘Teams’• Can Identify, Incorporate & Influence Adoption

Page 24: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Experiment

A Structured, Easily Replicable Process

to ‘Test a Hypothesis’

Page 25: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Designing The X-Teams

5X5

Page 26: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

5X5 ‘X’-Teams

• 5 People/5 Days • 5 Experiments

• $5,000• 5 Weeks

•$5,000,000 [Growth or Savings]

Page 27: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

X Teams: [Liberating Constraints]

• Cross-functional/Well-Regarded Talent• Hard Deadline/Defined Deliverable/No Budget

• Self-Managing • Present to Top Management

• Peer & Executive Review

Page 28: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The X-Format

• What’s the Perceived Problem/Issue/Opportunity?• Why does It matter?

• What’s the Business Hypothesis?• What Experiment(s) conform to the 5X5 criteria?

Page 29: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Make Compelling Business Hypotheses Simple &

Simple Business Hypotheses Compelling

Page 30: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Seek to Perform Simple Experiments Fast

Page 31: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Seek to Perform Fast Experiments Cheap

Page 32: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Seek Results That Speak for Themselves

Page 33: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

“Fun-damental Value(s)”

Be “Warren Buffetts” of Experimentation

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ideology:

Do you experiment to extend your values or to challenge them?

Page 35: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The Design “Game”

Competing Hypotheses&

Competing Experiments&

Competing Portfolios&

Competing Presentations

Page 36: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

SeatMaps Contiguous Seating N>2

Page 37: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Gedankenexperiment: What text, call or site should an in-store customer make?

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Page 38: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Amazon Recommendation Engine [Greg Linden]

I hacked up a prototype. On a test site, I modified the Amazon.com shopping cart page to recommend other items you might enjoy adding to your cart. Looked pretty good

to me. I started showing it around…

At this point, I was told I was forbidden to work on this any further. I was told Amazon was not ready to launch this feature. It should have stopped there. Instead, I

prepared the feature for an online test. I believed in shopping cart recommendations. I wanted to measure the sales impact….

Page 39: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

5X5 X-teams

Lessons Learned

Page 40: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Because when we stop, it feels good…

Page 41: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Lessons Learned

Professional Development

Page 42: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The Most Influential and Product of Simple, Fast, Cheap and Compelling Experiments

Isn’t ‘The Results,’ It’s ‘The Experimenters’

Page 43: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

5X5 X-teams

Crafting a ‘Good’ Business Hypothesis is Hard

(This surprised me…!)

Page 44: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

5X5 X-teams

Articulating Their X-Portfolio Philosophy Proved Challenging

Page 45: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Lessons Learned

A Fantastic Window for Senior Leadership

Page 46: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

5X5 X-teams

Portfolio ‘Gaps’ As Revealing as Portfolio Priorities

Page 47: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

The X-Heuristic

If You Can’t Afford to Have ‘It’ Fail,‘It’ Isn’t an Experiment

Page 48: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

What Experiments Aren’t:

Validation

Page 49: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Oxymoron Alert

PassionatelyDispassionate

Page 50: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

X-Team Issues:

• ‘Single-Idea’ Zealots• Frustration Follow-up

• Top Management Challenged• ‘Put Up or Shut Up’ Upsets

• ‘Analysis’ Culture(s) Get Nervous

Page 51: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Lessons Learned/ Design vs Develop vs Deploy

50%

Page 52: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

We’re not ‘smarter’ or ‘better’ but...

The reason why we are on a higher imaginative level is not because we have finer imaginations, but because we have

better instruments. In science, the most important thing that has happened over

the last forty years is the advance in instrumental design.

A.N. Whitehead

An Enquiry Concerning the Principles of Natural Knowledge

Cambridge University Press 1925

Page 53: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

in case of contact...

[email protected]

Page 54: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

Innovation Economics

The “80/20/20 Vision”

Page 55: Experimenting with ‘Fun;’ ‘Fun’ With Experimenting What the (Von) Hayek Do You Think You’re Doing?

How can we model/capture:

•80% of the “Necessary” Information in• 20% of the Time; and with

•20% of the Resources