Innovation Management, Brainstorming Management – Why People Hate To Brainstorm!

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.

There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.

One common method in the problem identification and idea generation phase is the use of brainstorming. In fact, it is not unfair to say that whenever managers have a problem to solve, they are likely to herd people into a room with a flip chart and conduct (usually an ineffective) brainstorming session.

There are a number of reasons why people hate brainstorming sessions. Further, there are a number of reasons why proper brainstorming management yields superior results.

a) Brainstorming dilutes ideas. Many individuals who think that they may be onto the something find that their ideas become diluted as a result of compromise.

b) The sum of ideas produced by individuals acting alone is greater than the sum of ideas produced by those individuals acting in groups. Thus proper brainstorming management includes asking participants to address the problem and generate ideas before the actual brainstorming session.

c) Large groups produce negatives such as groupthink, evaluation apprehension and status deference which causes people to shut down.

d) Idea generation is a cognitive process and relies on the team leader having the skills to elicit that cognitive activity from individuals. Often team leaders are assigned that role for other reasons.

e) Large groups are often dominated by higher status and more forceful personalities, thus lessening the impact of other participants. Often team leaders do not have the skills to manage all people.

Kal Bishop, MBA

4 Crucial Steps To Make Sure Your Business Survives The Recession

A few short months ago people in my town were speculating that the economic boom would last another 20 years. There was no conceivable way that the resources boom, fuelled by the unprecedented and seemingly unstoppable growth of the Chinese economy, could slow anytime soon.

With unemployment at historical lows, the place was awash with money. Everybody was earning and everybody was spending. Big! Every man-jack who owned a business was making money.

Then it went belly up. Now as a barometer of the changed times, there are luxury cars and boats for sale everywhere you look. House prices are falling. It’s a buyers market but the buyers are hiding away. Unemployment is rising.

In a matter of months the worldwide financial crisis has ended the dream run.

Now, only the fittest businesses will survive! Will your business make it through the rough times?

At the very least, you must take action now, and whatever else you might do, you must take the following 4 crucial steps:

1. Get a Handle On Expenses. Expenses often run way too high in times of plenty. Who cares when there’s lots to go round hey? Well you know that the quickest way to improve your bottom line is to reign in those expenses.

So, have a long, hard look at where your dollars are going. Trim and cut the unnecessary outgoings. You might have to be brutal but remember the survival of your business depends on it.

2. Where Are The Profits Made? Once you have made the necessary adjustments to expenses determine where you are making money. Some products or services may be marginal, some may be losers. Make sure your efforts are concentrated on the things that make money. Remember the 80-20 Rule. 20% of your products and 20% of your customers are making 80% of your profits.Watch it though and don’t confuse turnover and profit. Go after the profitable items only. They need your focus.

3. Watch the cashflow. Many a good business has gone to the wall because of lack of funds. More so today in tight financial markets where money has become hard to borrow – you must ensure that you protect your cashflow.

4. Narrow your vision. Think back to what made you successful to start with. Go back to basics and remember that ‘service’ is king. The most important person in your business is your customer. Think about him and provide the quality of product and service that he wants.

Lots of businesses think that the quickest way to lift sagging turnover is to lower prices. You may have to resort to that as a strategy later on but not before you have paid full attention to the 4 steps outlined above. Lowering prices does nothing to improve your business management. The quickest and surest way to “weathershield” your business is to ensure that your management practices are sound. Apply the 4 Crucial Steps first.

Tough times require a tougher mind-set. Focus on what you do well and what makes money for you. Don’t waste energy on negative emotions like panic or worry. Act positively. Consult experts, like your Chartered Accountant. Most businesses can survive.