Innovation Lesson from The Apprentice

I’ll admit it. I, unlike most people in the United States, did not watch Donald Trump’s “Celebrity Apprentice” the other night. But in a conversation with some people who did tune in, it sounds like the winners applied an important innovation concept.

As I understand it, the task for the week was to see which team could sell the most hot dogs to raise money for charity.

The first challenge for each team was to set the price of the hot dogs: low enough to sell large volumes yet high enough to maximize margins. This is a challenge that all companies face when pricing their products or services.

Each team started selling their dogs for about $5. Then they started to ask their customers for more money using a variety of creative gimmicks. Their plan worked so they continually increased the selling price by bundling in extras (e.g., pictures with the celebs).

One team continued to focus on these “traditional” business techniques, selling as many high priced hot dogs as possible. In the end, they sold about $17K. Not bad for a day’s work.

But the winning team figured out something quickly. The hot dogs were not the end game; they were a means of getting to the objective: raise the most money for charity.

Instead of selling $200 hot dogs on street corners, they called their high-roller friends and asked them to buy hot dogs for $5,000 or more. The result? Over $52K in sales. Over three times the profit of the other team.

Can you imagine how many hot dogs you would have to sell to make a $50K?

This highlights one of the mistakes that organizations make when thinking about innovation.

Although top executives typically keep their eyes on the end game (usually some variation of short- and long-term stock price), as you move down through the organization this changes. The focus shifts to measuring and managing tasks and products (such as selling hot dogs). The reality is, these are only a means to an end.

The solution? Stop micro-managing activities and make sure that every employee understands – and keeps their eyes on – business fundamentals and what matters most. This will enhance both creativity and overall business performance.

Is your organization measuring how many hot dogs it sells? Or are you looking at creative ways to make as much money as possible?

Turning the Extraordinary into Ordinary

As many of you know, my sister (Deborah) and her husband (Gary) sold their house and are now traveling the country in an RV for the next year. Gary sells cancer insurance door to door as they make their way across the states (yes, he knocks on people’s doors) . The idea is to integrate his work with their desire to be on “vacation” every day. They have now been on the road for four months, traveling from Chicago, across to Maine, down the coast to Georgia and Florida.

I bet you think this sounds like an incredible opportunity. It is. But opportunities are not necessarily reality.

Although they created this once in a lifetime trip, they have not capitalized on what is possible.

Old habits have surfaced. Instead of exploring, they have settled into their old habits. Each day in their RV looks pretty much the same as it did when they lived at home: work, dinner, wine, TV, sleep.

In her blog entry on “Turning the Extraordinary into Ordinary,” Deborah describes her daily routine and makes a brilliant observation:

“As exciting as cross-country travel could be, has consistency and predictability become more of a priority? Although Gary and I are in the 4th month of our trip, over 1/3 complete, we are still waiting for the trip to begin.”

This is our natural tendency. We seek out the familiar. We play it safe to protect what we have and know.

We are waiting for life to begin. The five most dangerous words are: “I will be happy when…”

We convince ourselves that our happiness lies in the future. That life will be great when we lose 10 pounds, when we get married, when we have more money, or when we have a high-status job.

It’s not true. Happiness lies in the present. Now.

Every day we are presented with opportunities. Most of them are not as obvious as a 365 day vacation. Many are subtle; somewhat hidden from view. Find these opportunities. Take advantage of them. Play full out…today.

Do not wait for your trip to begin.

See Stephen Speak About Innovation

Are you ready to start the New Year with some creative thinking?

If so, join me when I speak at the International Special Events Society’s January meeting.

What: Get ready for a fast paced, value-packed 60 minutes. First, you will play “Innovation Personality Poker.” In this highly interactive game, you trade specially designed poker cards with other participants. The objective is to get a perfect hand that reveals your preferred innovation style. You may be surprised at what you discover. Next on the agenda is “Speed Ideating,” a rapid fire creativity session where you will learn radical, and pragmatic, techniques for solving your most pressing business problems. Finally, your mind will be stretched even further with some unconventional, yet proven, approaches for increasing sales and team motivation. You will never look at your business the same way again.

When: Tuesday, January 15, 2008 6:00 PM – 9:00 PM

Where: The Liberty Hotel Boston,215 Charles Street,Boston, MA

How: Register for this innovation event

See Stephen on Television

Tomorrow, Friday January 4th, I will be on Fox 25′s Morning News in Boston. I am scheduled to be on at 8:20AM.

I will talk about my story that appeared in the recent “Chicken Soup for the Soul” book.

In particular I will address my life as a recovered “Goalaholic.” As part of the conversation, I hope to give some tips for how to set goals for success in the New Year without losing yourself (and your family).

My New Year’s Theme

By know you know that I am a believer in setting theme-based resolutions. Every year at this time I announce my theme. After considerable contemplation, I have decided on my theme for 2008:

“PLAY LIKE THE PATRIOTS”

I have been inspired by the New England Patriots this year. They just completed the first 16-0 season in the history of American football. Their success is not by luck or chance. It is due to discipline and teamwork. They live by 7 powerful lessons. This year, I will take take these lessons to heart and play my best game, each and every day. Head Coach, Bill Belichick, once said after achieving a 20 game win streak, “We did not have a 20 game win streak. We had 20 one-game win streaks.” This year I am striving for 366 one-day win streaks.

Please share your New Year’s Theme.

Happy New Year.

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