Goals Gone Wild

My book, “Goal-Free Living,” provides counter-cultural perspectives on goal-setting.  I suggest that we are a nation of goalaholics, and that this is reducing creativity, productivity, and happiness.   Harvard Business School recently published an interesting paper, “Goals Gone Wild,” that supports my perspective.

The authors say…

In this article, we argue that the beneficial effects of goal setting have been overstated and that systematic harm caused by goal setting has been largely ignored. We identify specific side effects associated with goal setting, including a narrow focus that neglects non-goal areas, a rise in unethical behavior, distorted risk preferences, corrosion of organizational culture, and reduced intrinsic motivation.

Rather than dispensing goal setting as a benign, over-the-counter treatment for motivation, managers and scholars need to conceptualize goal setting as a prescription-strength medication that requires careful dosing, consideration of harmful side effects, and close supervision. We offer a warning label to accompany the practice of setting goals.

I couldn’t have said it better myself.

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Starbucks and the Bell Curve

It was just announced that Starbucks is now selling a coffee and breakfast for under $4. It’s true.  According to CNN You can get a 12-ounce coffee with a breakfast sandwich or roll or a 12-ounce latte with either oatmeal or a coffee cake.

According to CNN, “the move may be…targeted to drawing back business lost to more cost efficient retailers like McDonald’s and Dunkin’ Donuts.”

This is another examples of the “squeeze” of the players in the middle of the bell curve.  If you are not familiar with it, read  my articles on the bell curve of innovation.  Dunkin’ Donuts (DD) is a great example of a coffee shop budget brand.  As they expanded their offerings, they started to compete (at least in terms of coffee quality) with Starbucks.  Although some think of Starbucks as a premium coffee, most real coffee snobs (and I know quite a few of them) turn their noses up at Starbucks.  It has always been in the middle of the bell curve.   In the past, the middle of the bell curve was a great place to be.  No longer.

Last week I did a speech for the beverage division of a large food company.  This division is largely comprised of “make at home” coffee products, including instant coffee.  Business is booming.  They now have easy to use coffee, espresso, and latte machines.  These products represent an emerging “budget” entry.  For a relatively low cost, these machines produce a high quality, single hot drink with little effort.  There are no messy powders (uses simple capsules), no grinding, no cleanup.  Accessibility at its best.

I realize that Starbucks is more than coffee, it is an experience.  Unfortunately, today, people are less likely to pay for these experiences if other alternatives exist.

Are your products/services getting “squished?”  Can you make them more affordable?  More accessible? This may be the key to survival in this market.

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Mark Your Calendars

This summer, I will be giving speeches around Europe.  Some will be private events and others will be open to the public.  Regardless, I will be taking time to meet up with people during my travels.

On May 26th, I will be speaking in Copenhagen at a “Happiness at Work Conference.”  On June 1st, I am speaking in Athens, Greece.  Other countries are quickly being added to the list.

If you are a European corporate executive or conference organizer who is interested in bringing innovation to your organization during my visit there, please write for availability using our contact form.

Hope to see you this summer in Europe.

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Squished Like Grape

In a previous blog entry, I discussed why the middle of the innovation bell curve is a dangerous place.  I even quoted The Karate Kid’s Mr. Miyagi who said, “Walk on road. Walk right side, safe. Walk left side, safe. Walk middle, sooner or later [makes squish gesture] get the squish, just like grape.”

This prompted a question from Gareth Garvey, a great English innovator based in Copenhagen.  He asked, “What happens as the products in the middle get squashed? Are we talking about a narrower road where we need to walk even closer to the edge to survive/succeed or is the middle ground recreated by new entrants?”

Great question.  From my perspective, the middle ground is constantly shifting and getting recreated by new entrants.

Although using computers as an example is hackneyed, it does allow us to see the shifting dynamics in a short period of time.  Regardless, these concepts apply to all innovations.  Here are the dynamics…

The right-hand side of the bell curve is constantly shifting further to the right. That is, investments in innovation help premium product become better, faster, and higher quality. PCs now have the computing power of computers that once took up an entire room.  There will always be a need for high end computers, whether it is for business, science, or gaming.

The left-hand side of the bell curve constantly moves too. I wrote before about netbooks that cost about $300. These computers will continue to increase in power squeezing out current mainstream computers.

Here’s the wrinkle…It was just announced that India has developed a computer that costs $20. Of course these have significantly reduced processing power, but will serve the needs of a larger audience. As these $20 computers increase in power over time, they will squeeze out the netbooks.

Mobile phones also need to be taken into consideration.

Right now, mobile phones have their own bell curve. Low cost simple function phones on the left (which have greater capabilities than the high-end phones just a few years ago). And the iPhones and Blackberrys of the world on the right.

What’s interesting is to see how these high-end phones can leap from the right-side of the mobile technology curve to the left-side of the computer curve.

iPhones and Blackberrys have basic computing functions now. But soon they too will become more powerful. I assume that in the near future they will also have the ability to display on larger screens – either through projection capabilities, expandable screens (like on the Jetsons), plug in monitors, or low cost wearable goggles. The data entry abilities will also improve. When this happens, and as costs drop, mobile phones will move formally into the left-hand side of the bell curve for computer innovations.

The curves are always shifting in many directions. What is a premium product today will become old quite quickly. What is considered budget will improve over time and become mainstream, eventually to be squeezed out by a new low-end entrant. What was on one curve (e.g., mobile phones) can shift to another curve (e.g., computers).

The key is to choose which side of the fence you are on.  Premium or Budget.  High-end or mass-market.  Sophisticated or up-and-coming.  Just try to avoid getting squished…

I will continue to address the “bell curve of innovation” in future entries.

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