Friday, October 14, 2011

Breakthrough Thinking from Inside the Box


Imagine that we asked you to invent an idea for a new business in the next 20 minutes. The task is so broad and vague that you would probably think you couldn’t do it. We have often seen people give up without really trying when confronted with such an amorphous challenge.
Instead, let us pose a narrower question: What do Rollerblades, Häagen-Dazs ice cream, and Spider-Man movies have in common? The answer is they are all based on the same business concept. In each case, a firm has taken something children love and reproduced it in an extreme, more expensive form for adults. The same notion has led to over 25 new product categories, including gourmet jelly beans, baseball fantasy camps, $200 sneakers, 20-foot-high sand castles for corporate parties, paintball, space tourism, and Disney collectibles. Now that you see this, we are confident you could think of how to reproduce something that was emotionally powerful to you as a child in an expensive form for adults. That’s because we have conducted this exercise as a warm-up to our workshops with hundreds of managers, and they have always generated interesting ideas.
What did we just do, and why did it work? In our quest for breakthrough ideas, we didn’t ask you to think outside the box. Nor did we ask you to think more intently inside your usual box. We gave you a new box and asked you to think inside that.
Most managers and professionals are quite capable of thinking effectively inside a box. They live with constraints all the time and automatically explore alternatives, combinations, and permutations within their confined space. We have found that if you systematically constrain the scope of their thinking (but not too much), people are adept at fully exploring the possibilities, and they can regularly generate lots of good ideas—and occasionally some great ones. Setting the right constraints is a matter of asking the right kinds of questions: ones that create boxes that are useful, but different, from the boxes your people currently think in.
Ten years ago, as part of a larger project for McKinsey’s strategy practice, we led a team of consultants who developed such an approach to brainstorming. It involves posing concrete questions and orchestrating the process for answering those questions. Since then we have successfully used this method with more than 150 clients engaged in everything from major product innovations and industry-shaping moves to simple process improvements. Our technique helped a consumer goods company identify an opportunity for a chilled beverage that captured 20% of the market in the first six months after its launch. A print media company used it to come up with ways to triple the firm’s penetration of the Hispanic market. A plastic pipe manufacturer uncovered an immediately exploitable opportunity to reduce costs by 75%. A regional bank came up with a process that more than doubled the sales productivity of the branches involved in the pilot. Even those whose job it is to be creative have benefited from the methodology: The editors of a group of prominent magazines who had been stuck in a rut in their efforts to come up with story angles have begun using the approach to develop fresh new articles for every issue.
Now that it has been road tested, we’d like to share our approach. A good place to begin is to examine what’s wrong with conventional approaches to brainstorming.
Why Brainstorming Doesn’t Work
Many managers fail to generate a stream of solid ideas because they employ two common techniques: They encourage their people to go wild and think outside the box or they assign them the task of slicing and dicing the old boxes (in the form of existing market and financial data or specially commissioned market research) in new ways.
The problem with the first method is that most people are not very good at unstructured, abstract brainstorming. Imagine a random product you are trying to improve in a typical facilitated brainstorming session. Outside-the-box possibilities could include making the product bigger or smaller, lighter or heavier, prettier or more rugged (or changing its appearance in any of a hundred ways). Further ideas could involve making the product more expensive or less, or maybe breaking it into parts or bundling it with other products. They could involve changing the product’s functionality, durability, ease of use, or the way it fits with other products. Or its availability, affordability, or repairability. How do you know which dimensions are fruitful to explore? More often than not, the facilitator will say, “There are no bad ideas,” which only compounds the confusion. Without some guidance, people cannot judge whether they should continue in the direction of their first notion or change course altogether. They cannot handle the uncertainty, and they shut down.
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Kevin P. Coyne (kevin@kevincoynepartners.com) is the founder of Kevin Coyne Partners, an executive-counseling firm in Atlanta, and previously was a director of McKinsey & Company.
Patricia Gorman Clifford (trish_clifford@mckinsey.com) is a senior strategy expert in McKinsey’s office in Stamford, Connecticut.
Renée Dye (renee_dye@mckinsey.com) is a senior consultant in the firm’s strategy practice and is based in Atlanta.

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