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the innovative LEDGER
An e-Newsletter from The Innovative Edge™ Inc.

  Vol. 10, No. 6 - June 2010

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Better Never Than Late

By Jeff Govendo

Periodically I teach a class to graduate students on the subject of collaboration among professionals. One of the slides I show highlights the distinction between reactive vs. proactive problem-solving. It reads:

Reactive – occurs when you are faced with a crisis or dilemma requiring attention. Some kind of action must take place within a relatively short time period.

Proactive – occurs when an anticipated situation focuses your attention and triggers a problem-solving process before it becomes a crisis.

Proactive problem-solving might, in some cases, head off the need for reactive problem-solving.

Several days ago while teaching the course, I came to this slide and commented, "It's probably fair to say that if BP had done a little proactive problem-solving, they might well have headed off what is now the biggest attempt at reactive problem-solving the world has ever seen!"

Heads nodded in agreement.

It is almost too easy and too obvious to draw upon the oil spill in the Gulf for lessons relating to the timeliness and effectiveness of problem-solving. But here we are, at 50+ days, and the promise of many more days of gushing to come. With reports coming out of the region of livelihoods lost (not to mention actual lives lost; 11 of them), a great city threatened (again); of fishing grounds decimated and wildlife smothered in the viscous stuff, one has to marvel at the lack of foresight it took to allow this to happen. Not only by the companies who built and operated the Deepwater Horizon, but by so-called government regulators too.

No one enjoys contemplating worst case scenarios. They're depressing. People who bring them up are accused of being pessimistic, morose. Worse, they require outlays of cash, while their chance of actually happening remains statistically remote. They are counted as a needless expense rather than an enhancement to the bottom line. To those who pay homage to the almighty quarterly report, this is anathema.

Yet right about now, it's probably safe to say that someone at BP is wishing they had done a little more proactive problem-solving when this rig was being built.

In a previous edition of this newsletter, I wrote about the impact of time pressures on the innovation capacity of teams in organizations. Studies have shown that up to a point, the pressure of imposed deadlines or outside forces on the ability of a group of individuals to do creative problem-solving can actually enhance the process. Thus the well-known adage, "Necessity is the mother of invention."

But whoever coined that phrase didn't have anything like this in mind! Over the past 6 weeks BP has attempted to come up with inventive solutions under the most extreme time pressures imaginable. At this writing the results have been marginal at best.

Somewhere in the gap between irresponsible recklessness and total paralysis, there is an area of balance in decision-making that allows for prudent risk-taking and innovative action. Where that is depends on a host of factors, unique to each company and each situation. Insurers have developed the science of risk analysis around this. (Part of what enabled BP's recklessness, in fact, is that they're self-insured; they had no standards but their own to adhere to.)

The oil spill is a disaster that absolutely didn't have to happen. As we helplessly watch this tragedy unfold, our hearts go out to those inhabitants of the region -- human and otherwise -- whose lives are being irrevocably altered.

And hope we as a nation can take a valuable lesson from this.

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Names We Like

We're always on the lookout for creative product or business names!.

  • William the Concreter (building contractor) - this guy's reputation is rock solid!
  • FanZanimals (sports themed stuffed animals) - featuring da Bears!
  • Strike a Cord (corduroy shirt) - a catchy name is like a catchy tune!
  • Chipsy King (fish 'n chips restaurant) - not a place for the small fry!


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    Innovation Quotation

    "Great minds think alike…and that’s the problem."
    - Ad line for Harvard Business Review Executive Education Series



Copyright © 2010 The Innovative Edge, Inc.