Don’t f*ck up your innovation teams

Just provide the perfect stage for them to shine.

Different type of innovation efforts really need different type of teams. Getting this wrong devastes your innovation efforts. In this article I will share how to map different type of innovation teams to the right efforts by using a model that is increasingly used within corporations; The Three Horizons Framework designed by Bill Sharpe. It’s a very intuitive framework to think and express yourself about innovation. It adds nuance to innovation efforts. As Bill says it: “The three horizons are about much, much more than simply stretching our thinking to embrace the short, medium and long term. They offer a co-ordinated way of managing innovation, a way of creating transformational change that has a chance of succeeding, a way of dealing with uncertainty and a way of seeing the future in the present.”

First Horizon(H1) — current context and conditions; the focus is managing the current results, and the mindset is that of the operator. H1 projects can be overseen in within a year, solutions are fairly known and the main act is replacement.

Second Horizon(H2) — actions taken in the present to resist change, to adapt to change, or to build on change; the focus is on creating and managing(uhm.. controling) change, and the mindset is that of the entrepreneur. H2 projects run one or two years, solutions need to emerge and the main act is creation.

Third Horizon(H3) — transformative emerging changes, ideas about possible futures, and visions of preferred futures; the focus is on transformation and disruption, and the mindset is that of the visionary. H3 projects are 5 years out. solutions are now known and the main act is resourcing.

So we have the operator, the entrepreneur and the visionary. Three completely different mindsets that have their own belief system on how to deal with the world around them. All with their own game to play. Be it replacing, creating or resourcing.

Every regenerative organisation should acknowledge that there needs work to be done on every of three horizons. For example:

• H1 projects: apply new tools to better manage customers and/or employees.
• H2 projects: build new digital platforms that have multiple usecases
• H3 projects: host events like hackathons around disruptive technology

You probably have an idea now how these three horizons differ and can imagine projects in your own organization that now fit on one of these three horizons.

Rarely do I see organizations that apply different team dynamics depending on the horizon level of a certain project. Most of the time what I see is that H1 projects define the way of working with the organization. For H3 projects there is an occasional hackathon or network event yet for H2 projects nothing structurally is organized. This means that often organizations expect H2 output from teams that work in a H1 kind of way. I believe that this is probably the hardest inhibitor for disruptive innovation within corporations.

This means that often organizations expect H2 output from teams that work in a H1 kind of way. I believe that this is probably the hardest inhibitor for disruptive innovation within corporations.

Let’s have an in depth look at the three different type of teams. Below I will share a description of the type of team and provide a set of do’s and don’ts.

Horizon 3 Teams(H3T)

So Horizon 3 teams can only be formed based on willingness. Transformation in general can only achieved through willingness. A willingness to participate, to imagine, to invest time and resources. This willingness can be found when old “labels” start to fail and erode with people. With labels I mean words that have meaning or value. Words associated to certain beliefs, business units, technologies, function titles, tools or jobs. So you can say that behind the willingness to transform is sadness and loss. It is about letting go of these old labels. These teams are about developing new potential. Other emotional themes in these teams include uncertainty about identity, loyalty and support to the system(previous generation), values and purpose. As an organization H3 projects are not so much about building the vision about a future but about relabeling resources that identify themselves with this new future. So opening a process of relabeling and letting go of labels is crucial to really effectuate the projects that people work on. Hosting this relabeling process of employees happens in “cocoons”. As an organization you need to provide these type of spaces where it is safe to shed and be reborn. These new “future proof” resources are the new foundation on which you will slowly and gradually build a new house. These people will also be the most loyal to the organization.

Do’s:

• Work with scenarios and multiple roles
• Host events
• Treat everybody equal
• See the potential
• Imagine and generate hope and belief
• Accept all opinions and viewpoints
• Stakeholder management and partnerships
• Show vulnerability and weaknesses
• Focus on values, lineage, heritage and relation.
• Open a generational narrative

Don’t:

• Build anything scaleable or secure
• Fund plans (fund teams!)
• Create anything for an external customer (it’s all internal practice)
• Touch too many themes or topics (3 to 5 max)

Horizon 2 Teams(H2T)

Lets get real right away. These teams can make or break you. If you facilitate H2 teams in the right way, they can truely do maginificent work for you and deliver relevant platforms and IP assets that can grow exponentially. Where with H3 teams it is about relabeling, in H2 teams it is all about the roles. It is about structure and tactics. It is about developing emerging opportunities. It is about expansion and increase in strength. It is about the love for the problem and solution. Teams that want to control the future and the outcome(which is an illusion but don’t tell them :)). These teams are like teenagers moving into the attic. Fighting for independence and freedom from the previous generation. As these teams have not landed yet on earth and have not a lot of proof to show, it is a lot about representation and abstraction. It is roleplaying, enacting. For example team members represent certain viewpoints. Or in a lab context you have rebuilt a tiny universe in which you can act out. Where in H3 we accept everybody’s feelings and opinons, with H2 teams you are alligning the team’s point of view. Not by comprimise but elimination of the weakest(survival of the strongest). Working towards a shared truth and consciouness.

Representation goes much further than imagination(which is more for H3 teams). Imagination is media, it’s an image in front of you. Representation it is more embodied. You experience it, you become part of it. You live through it. You need to have a little bubble(universe) in which you can really go deep down the rabbit hole to understand both the problem and the strength of the solution.

Do’s:

• Create time for Deep Work
• Work with roles
• Have an “architect”
• Open up for of new resources
• Work with team coaches and offer independence
• Kill your darlings
• Limit amount of projects and tasks
• Emphasize diversity
• Open a “finite game”

Don’ts:

• Listen to customers (but use them in your experiments)
• Create processes to manage the chaos
• Work with fake deadlines (just have the resources run out = DEADline)
• Spend too much time on customer journeys

Horizon 1 Teams (H1T)

Where H2 teams can deliver disruptive assets H1 can drive results by the application of solutions and by for example shuffling the actors in the business model canvas. They are the masters of making things go frictionless. Busy with changing the messaging, reframing solutions and building trojan horses just to make it all work together. Supply meets demand and the “mess” it creates is solved by H1 teams. Here we move from being just right to also being succesful. The sacrifice that needs to be made is the purity of new solutions. In a sense the solution finally gets a role to play. The solution needs to adapt. Where in H2 teams it is all about generating input with H1 teams it is all output. It helps a lot to be pragmatic, data driven and a bit opportunistic in nature.

Do’s:

• Value based pricing
• Speak the language of the customer
• Work with Specialists
• Transactional deals
• Have a leader in the team
• Focus on verbs(instead of nouns)
• Map Customer Journeys
• Play with the Business Model Canvas
• Work with short cycles (agile)

Don’ts:

• Make or build products.
• Create strategic partnerships
• spend time on stakeholder management
• Don’t discuss and have meetings

We have now a general understanding of the type of team that is associated with each horizon. Below is a matrix that acts a bit of a summary on how the three teams differ.

So in conclusion

Really be honest about what type of innovation you are going for in which part of your organisation. By not aligning the teams to the efforts you are directly undermining the corporation’s ability to regenerate.

I urge everyone that is involved with innovation to start adopting the Three Horizons Model and start mapping teams to these horizons. Also start adapting your management style, culture, workspace and values to each of the different type of teams. Understand that you have enormous control over your innovation efforts by designing the right rituals and context for your teams.

Just provide the perfect stage for each team to become the hero of their own journey

If you would like to continue the discussion or like to know more please feel free to contact me at raimovanderklein@gmail.com