>> Amy Draves: Thank you for coming. My name is Amy Draves, and I'm pleased to welcome Rajiv Narang to the Microsoft Research Visiting Speaker Series. Rajiv is here to discuss his book -- I should say well-received book, Orbit-Shifting Innovation. "If an idea is to be orbit shifting, it must go beyond the boundaries of conventional thinking and be among the most constructive and revolutionary. The planetary metaphor of gravity and orbits frames the exploration of hidden forces and surprising allies to innovation." He is the founder of the consulting firm Erehwon and is recognized as India's innovation thought leader. He has inspired people and organizations across cultures and across the world to shift their thought orbits. >> Rajiv Narang: Grateful for being here. And I am hoping that over the next hour or so I'll take you into a hyper speed walk into what does it take to make an orbit shift happen and through the -- littered with our experiences and insights over the last 20 odd years. So I was lucky enough to have married a very passionate profession very early in life and literally have invested the whole life. And this book is really is nothing but a synthesis of the learnings. So I'm going to share some of those with you very quickly, and, of course, I'm sure your questions and challenges will make it much more innovating. So for those of you who are curious, I'm sure you have decoded Erehwon by now. Have some of you decoded it, or are there still some questions? I do keep -- this question does come up occasionally. Erehwon. Well, sounds German, or to some people it sounds Korean sometimes. The word won in the end can be very confusing. But I'm sure some of you have decoded it. Have you? You have. Well, a couple of hands at least. Well, if you read it backwards, you'll find it gives itself away. It's really the word nowhere spelled backwards. And then when were starting out our journey some 20 years ago, in one word it spelled out the mission, actually. When you look at the world and split it up, you notice nowhere becomes now here? it's very fascinating. One word speared the mission, nowhere to now here, impossible to possible, hopelessness to hope. That's essentially the mission of Erehwon. And we were lucky really to have found it right in the beginning. And so I'm going to share with you what has been our journey. We work with organizations, obviously. But our work is not limited there. We also work with social enterprises and business and public services, essentially, wherever a leap is needed in the role of innovation. Now, the challenge is really how to make it happen. So I'm going to share you with the insights that have come to us through these 20 years of trying to find answers to the unanswered questions around innovation. You know, everybody would love to do it, but very few actually manage it. But some is also caught in this not so good viewpoint that only 10 percent of innovations succeed. You know, to my mind, I would like to junk that right in the beginning. When organizations are in a spray and pray mode, obviously only 10 percent will succeed. It's fascinating how when you throw a hundred ideas that something will come true, and maybe even 10 percent is actually lucky then if it stands that onslaught. So, really, what we have found that if it is done deliberately and by design, why 10 percent? 70 percent can succeed. So I urge you to junk that right at the beginning. And then let's start exploring what does it take to make it happen. I'll share with some of you our learnings and insights. And interestingly enough, all the learnings and insights I share with you have drawn from these three roles that we play, the role of a consultant, a facilitator and a coach. So as a consultant, really the challenge is how do you get an organization to think and act innovatively. But as a facilitator, a huge part of our work has been in facilitating breakthrough journeys from concept up to in-market success, so over 250 over these years. So, really, having seen through the pains of making it happen is really where a lot of our insights come from and as a coach, coaching leaders and taking their teams through those leaps. And it's fascinating that the world of consultancy is also split up. Like everything is siloed, even that is siloed, our strategy consultant, organization development consultants and leadership consultants. And we find in our world all three have to combine seamlessly, because you never know where the real innovation is. It could be a strategic blind spot in organization design, or it could be simply a leadership mindset. Maybe the fear of one guy is seeming like a strategic issue. Well, if it isn't, it could very well just be the fear of one person. And it has to be, therefore, dealt with at the interpersonal level. issue at all. It can't be dealt with as a strategic And so we work across -- we work in India, Asia Pacific, Europe, also in the U.S. now. So it is -- it's a very fascinating cross-mix of countries and cultures. And we very often say, we are not the main expert for innovation experts, and magic happens when innovation expertise combine with domain expertise. But at all points of time, we work with the organization. It's not -- it's never outside of it. So this is a fascinating mix of sunrise, sunset industries and literally across domains and, as I mentioned to you, across public services, business and social enterprises, too. First reactions to this map? Quick reactions? [indiscernible]. >>: If you had -- if you had a piece of paper in front of you, what would have been your first reaction? A lot of people are showing it to me, actually. It's inevitable. We're used to seeing the map in one way. It fascinating that maps were designed to be information, but when you seen a map for a long period of time, it becomes a mindset. There's really one way of looking at the map; there can't be another. By now, we even have statements built around it. And over the years, it just happened to get drawn this way, right? After all, the world is round. And we found this map in Australia with this -- with this bold statement below it, "No apologies are called for in presenting the map of the south at the top." After hundreds of years of development, southern lands have no reason to be under the Northern Hemisphere. Very classic Aussie way of rebelling against life, right? Maybe they don't like being called Down Under. But really, why am I showing this to a work connected with me? When I saw it for the first time, what this truly represents the start of an innovation drive or a quest. There's a positive lesson as to questioning the world order and not merely staying with it, as the world orders can be very implicit, almost invisible sometimes. Some are far our more visible. And if you look at it across industries, you'll find a very pattern emerging. One or two market leaders in most sectors many, many followers, and sometimes there emerges a challenge. Sometimes. I have my perspective on challenges. I'm sure you have yours. So very quickly what are the names of organizations that come to your mind? Who would you consider challengers and not followers? Thinking outside of our industry and deliberately taking you outside of our industry? So who would you consider challengers as organizations and not followers? [indiscernible]. >> Rajiv Narang: Okay. Any other names? >>: [indiscernible]. >>: Rajiv Narang: Who do you consider challengers as organizations? >>: [indiscernible]. >> Rajiv Narang: Please? Please? >>: [indiscernible]. >> Rajiv Narang: Any other names come to mind? Who else? Across industries, across the world? >>: It would be [indiscernible]. >> Rajiv Narang: As an individual, yes. I'm more asking organizations right now [indiscernible]. >>: Well. >> Rajiv Narang: Yes; okay. Please, organizations. Which organizations would you consider are not leaders? Don't tell me you can't think of any. >>: [indiscernible]. >> Rajiv Narang: Actually, the original one was [indiscernible]. That's where the whole model, really, began. Any others? >>: [indiscernible]. >> Rajiv Narang: I take your word for it right now. Any others? Is it fascinating that in this room you must know the names of thousands of organizations that we are not thinking about. It's fascinating, isn't it, how quickly history forgets? And what connects with me very deeply is that challengers create history. The rest follow it. And so, really, when you think of who we remember, we remember those who created it at some point of time or the other. And I'm just going to quickly share with you the people, some organizations, that come to my mind and just to expand thinking across the world. What we also try to do is deliberately work across sectors, across cultures to see, therefore, what are the new reference points. You know, we all know Steve Jobs is a major. Bill Gates may be a very sure to you, but this is other innovators. Any guesses? Tough one. This is, also, an innovation which had a global impact. But in the world of cataract eye surgery, in the -- you know, in south of India in a sleepy town called Madurai. This man took on a mission to eliminate needless blindness. Really, what he found was in large part of rural India when people lose their eyesight due to cataracts, they actually don't know it's curable. And what's worse, the person at the edge of the poverty line really loses his eyesight he could lose his life. So now his response was not charity but a business model solution. So the challenge was how do I make my surgeon who's the most expensive asset, the most productive, classic productivity question which we're all concerned with all the time. He found a breakthrough which made this surgeon 10 times more productive than the global best at the same quality. 10, 10x. It's not merely a .1x or a .2. 10 times more productive. And they are now the global reference point. It's called Aravind Eye Care. They're literally mentioned all over the world. It is fascinating when we talk about them that we don't have to be in the Silicone Valley to do great things. You can really be everywhere. The challenge is people somehow start to believe that the place is the reason for there being rather than them. Right? The place is not boring. We are in. That's the tougher question usually. And most amazing thing, he started this mission at the age of 58 after retiring from his previous job. The next 20 years he's gone and done this. So, really, there's hope for everyone in this room. Life is not done. To take you further from India, further into the east, the mobile revolution which has been a huge part of the emerging economies, really, the core innovation, the product innovation, started in the Philippines, the prepaid card with electronic recharging. They came up with that. And then the business model innovation came from a company in India and combined with process. So, really, product, process and business model innovation together have made this amazing revolution happen. The prepaid card was a great idea, but it dropped the venues dramatically. The personal consumer usage rate dropped dramatically. To make that economically viable, needed a business model innovation. And the three have combined, and that's really the heart of it. So what appears to be amazing is a combination of three innovations. Have you heard of MPESA? Some of you must have. This happened in Africa. They converged the mobile phone into a mobile wallet into a mobile bank account and really banked the millions of Kenyans who didn't even have a bank, bank account. The first bank account was not was a bank but with what was the local retailer with whom some money was deposited, a mobile account opened, and then you could pay with an SMS. Astonishingly, today they have 70 million subscribers in Africa. And fascinating. And, also, the mobile phone which had never even attempted something like this any of the developed markets, they did it in Africa first. So the cell phone becomes a [indiscernible]. Take you even further off into the vast lands of Mongolia where innovation happens even there. You know, you can imagine the vast -- I'm sure you have images of Mongolia -- the vast end of land, nearest hospital far away, 35 to 40 kilometers for most people. So access to healthcare is a big challenge. How do you make healthcare accessible was the question. So now the government was struggling with this question. And interestingly enough, there are many countries trying to improve access to health care. What would be the most traditional solution? What would be the usual advice given to these people? What would it be? What do we need to do? >>: [indiscernible]. >> Rajiv Narang: Clinics. So really clinics, doctors. That's even tougher, hard. Software is usually tougher. I mean, especially by real people and sending them to rural even more. So you can imagine what an infrastructure heavy solution that is. A lot of emerging economies in healthcare infrastructure today is one-sixth that of a developed nation in terms of the number of hospitals, nurses, doctors. Now, however, the fascinating thing is that they reframed the question itself. But rather than investing in supplying healthcare, how about reducing the demand on healthcare? So invest in wellness. That's fascinating, isn't it? And they partnered with Nippon Foundation of Japan to put in action a traditional Japanese solution. And what was the solution? To put literally a first aid care center in each house. But we are all our first doctors, aren't we? By now, you know, right, if this is the problem, do this. If that doesn't work, we go to a doctor. So that first instinct is there in all of us. Now, riding on that instinct they actually put into each house into some districts a medical kit based on symptoms that if this is the symptom, this is what you take but coached in this case. It wasn't instinct any more. It was -- and, also, all the medication was based on traditional Mongolian medicine, which is herbal, and not western medicine, which is chemical. So even if they took the wrong one, there's no side effect since it is herbal. Now, these kits were placed in houses. The doctors were made in charge of some of the area. So they would go around, check. And even more fascinating, the payment, the business model was post paid, not prepaid. It's like a hotel mini bar. You pay -you pay based upon how much you use. Now, when the doctor went around based upon how much they had used, they would pay. The outcome has been most amazing. In some districts, the number of people coming to hospitals reduced by as much as 60 percent. Now, what could be a more glorious outcome than that? Think about it. This is cost of this solution versus the cost of healthcare infrastructure. What does it take to create this? Are we solving the wrong problem? But that's really what our innovation is about, right, about questioning the problem in itself and how we are attempting it, how are we thinking about it. Sometimes the answer may not lie in modern technology,. It may lie in ancient wisdom. In this case, it was literally ancient wisdom which came into play. You know, all these examples, some of those that you shared with me and that I've shared with you, are what stand out about them is that literally they made a quantum leap. It's an orbit shift as we call it. And, you know, on the other hand, you notice a lot of organizations that you haven't heard about traditionalists get stuck in an orbit. It happens to the best of us. You know, no matter how good a good team you put together, it's so easy to get stuck into a formula which we all know, which is predictable. It's -- while we all would love to be orbit shifters, but the reality is most of us get into stuck into maintaining the orbit. And the biggest challenge I'm sure that you all recognize for any organization of the kind that we are in a part of shifting the orbit and maintaining it at the same time is by far the toughest question. And I'm sure you live it every day, that dilemma and that challenge. And, really, today -- I'm sure you experienced it. But today I find that no CEO will be dare caught not talking innovation. You cannot not talk, but only less than 5 percent actually manage to do it. Where is this gap, really? Power is not a question of malintent; not at all. They genuinely want it. So, really, where is the -- so what drags down? And this sticking, with the physics metaphor it also happens to all of us individually, too, where the college students are leaving a college, you know, and about to leave college, step out into life, and you meet these people and ask them, what do you want to do? You'll hear a lot of them talk big stuff, wouldn't you? I want to change the world. And you meet these same people 10 years later, what has usually happened? What has happened more often than not? >>: [indiscernible] the world changed them. >> Rajiv Narang: Unfortunately, more often than not, the world has changed them. They've become hopelessly practical by now. And their dreams are not dead but dormant. Actually, what I have shared with you are some examples of the way people reclaim those dreams. How and what really happens. What it is that happened over 10 years is really what we call gravity. Gravity catches up. And you throw it up, and no matter how hard you throw it up, it comes down. You know, it could be any community, any organization that gathers gravity over a period no matter what. And that gravity has its power to block change, to prevent it. And there was a very interesting study conducted across organizations once as to what -- how do people, a majority of the people, react to these amazing revision and mission statements that come out and these slogans which come out in organizations. What do you think most people -- what is their reaction, the large masses? >>: [indiscernible]. >> Rajiv Narang: You know, they're -- it's -- in one word, the reaction of the masses usually is, This too shall pass, these guys must have come from an off-site somewhere. And their grand slogan is wait it out long enough, and it will go away. Life will continue to be what it is. As comfortable as always was. The trouble is more often -- more often than not it's right. They did learn to find out survival by now I'll do nothing, and hopefully it will go away. But that is gravity. You know, you notice the inertia which comes with gravity. Well, that's the heart of it. And gravity in itself it gathers over time. And so when we talk thinking out of the box, I'd like you to think about that carefully, because we will explore this beautiful word that is used so easily and thrown around. The challenge is which box, and the boxes are not available. That is the bigger question. At one level, you have organization gravity. Organization gathers a real working conditioning, but over a period, industry develops gravity. It's not just one organization, the whole industry. One most interesting story about this brings to life beautifully, really, is one of Walt Disney's early experiences. You know, around the first films animation that they tried out was Three Little Pigs. Some of you must have seen it. It was very successful. So when Walt Disney came back and he was talking to his studio and asked them to what film shall we make next, what do you think was the response? What will happen when one genre of film began -- begins to succeed? You know, pigs work. Pigs sell. Pigs Two. That was the very natural response. And good people for a minute doubt their capacity or ability. But that's what conditioning does. You know, Walt Disney thought about it a lot, and he came back. And he was saying, you know, it struck me now, you can't beat pigs with pigs. You have to do something else. That is when they went on to make Snow White and the Seven Dwarfs. If you know film history, it was, perhaps, the first full-length feature film in animation. It started virtually as the feature of films, animated feature films. It took a Snow White to beat pigs. Over a period, what happens to any industry? You notice over a period everything starts to look the same across an industry. Everybody is making pigs. In fact, the whole industry becomes a massive pig making factory. And people will tell you, well, I have a blue pig, I have a slimmer pig, I have a faster pig, I have a cheaper pig, but it's a pig nevertheless. There's no Snow White on the agenda even by now. And, of course, we then say this has commoditized this industry. Completely commoditized, you can't do anything at a reduced price. And very naturally, right? And everybody's doing the same thing. I'd like you to just think about this question. Banks, the idea for mutual funds did not come from a bank. Over 75 years across the world, the same blind spot. And what was the blind spot? That they thought of their customers as people who save and don't invest. Now, think about this. Very well cultivated businesses. And you can't fault the bank with hiring talent. They hired the best talent money can buy and gave them the fanciest designation. I'm sure you know that. They are masters of this art. But that hardly has insured them of this conditioning. 75 years around the world, the same blind spot. In fact, the biggest changers in banking have not come from a bank. This one micro finance did not come from a bank. Mobile banking also didn't come from a bank either. In fact, really this industry began in Kenya, feeling that their domain was getting upset, or these folks would have formed new banking. It doesn't even sound like this. How it worked. These are -- do you think this idea would have emerged internally and would have been dismissed? Very likely. In fact, some new guy must have said, you know, why not try this. And if a new guy says this, what is he likely to be told? >>: [indiscernible]. >> Rajiv Narang: Yeah. How long have you been here? Two months? Come on. After you've been here two years, then I'll ask you. I mean, after two years he won't ask these silly questions, right? You know, work conditioning teaches people the questions not to ask. The best conditioning is really about that. The fine art of survival is what not to ask. It's not about what to risk. But this is implicit in folklore, industry gravity. Even deeper, the deeper boxes are country and culture invariably. I'd like you to think about this. These are even deeper. Industry we all think about. These are actually even deeper. And to -- when you dig in deeper and these boundaries really come alive when you see different levels of markets meeting, say, develop a company from a developing industry trying to enter an emerging market. These boundaries really come alive there. UPS, uninterrupted power supply companies, multinationals enter emerging markets. Now, the UPS industry had a legacy of their own in their minds. UPS was associated with a computer, right? So that's how it had worked in developed markets. When they entered the emerging markets, they extended their thinking. You know, you're attacking a new market with the old market's mindset. That happens to the best of us. In this case, they did it. So what is the size of the market equal to the computer penetration? How do you penetrate this market through electronic stores? Extension of the paradigm. And what it missed actually was the biggest opportunity possible. The biggest opportunity in emerging markets was the home loop invertor, because power supply in itself gets disrupted. People need it for their livelihood day to day. And they completely missed that. It was just simply a blind spot for 40 years. And until the local entrepreneurs did a big thing there, and actually they reversed it. From creating inverters for the house, they also made them -- enabled them to use it for the lap tops, too. You can imagine what happened then, how power capability was there. The opportunity was missed. It was not an issue of capability. They could have dealt with it if they knew it. But trouble was the capacity to see it and seeing them attempting a next market with the old market's mindset. And the biggest -- so this is one level. What happened to developed markets, companies, which are doing brilliantly in one market as they try and replicate it? I've heard this very frequently. And when that application does not succeed in an emerging market, the reaction is this market is not ready yet. Have you heard that one? You know, what could be a more imperialistic statement than that? Now, think about it. The markets are ready but for something else. The markets are always ready for something else. The trouble is they are not ready for what we want to give them. And if only we would just step back a little bit and see what they really thought, there is so much great opportunity waiting out there. It's so fascinating how frequently this happens. The market is not ready yet. And on the other hand, the finest example of this arrogance, really, is also French wines. Lost market share for 30 years earning. And it's so difficult to change, because the French just don't drink any other wine. They don't believe anybody else can do it better. All French wines are labeled in French, because you're not supposed to understand. If it's French, it must be good. It's so amazing, the degree of it that the height to which it has taken. But 30 years of they were the market leaders. Challengers appeared all around them, California wines, New Zealand wines, South African wines, you name it and the challengers, and the French market share has dropped amazingly. Very sad how it took them 30 years to even start changing their business model. 30 years since. The really interesting story which we'll talk about some that I call the baddest judgment even. French food chefs compared French wines with Californians wines, and Californian wines scored on a blind test. You think the French believed it? No. No. No way. This was in 1975. And 30 years later, the same test, the same results. Very difficult. You notice arrogance reaches the point where you're denied reality even. It is not easy. It's very painful, actually. The other side in emerging markets, we have a different kind of a country and culture of gravity subservience. It takes a different form altogether. The belief that how could we have been the first ones to have come up with it. In fact, the belief in a lot of these economies they get a big idea, come on, how could we have been the first ones to have gotten it? I mean, if we've got it, those guys must have actually thought of it long time ago and not done it. It can't be that we've come up with it. In fact, one organization which was into watches, their R & D team was thrown this challenge, to create the slimmest water resistant watch in the world, slimmest and water resistant. Now, this was in India, again. Can you imagine what the reaction of this team was to this challenge? Have the Swiss done it? Now, the Swiss are the guards of precision engineering, right? And the Swiss had not done it and believed it could not be done. You can imagine what their reaction was. My God, the Swiss said it can't be done. It can't be done, right? Now, that's gravity. But, fortunately, they got through this gravity in their mind and said if the Swiss can't do it, we will. It took them six years, and they did. The same team did it. But that was the box. You don't need the enemy outside. The enemy inside is far bigger. There's now industries, country and culture gravity now playing out which makes people do reverse engineering rather than innovation. I'm sure you seen those engineering, right, pick up something, modify it a little and call it ours rather than believe that they can -- we can live with it. Tremendous break through happens at that point. That unleashes the new thought. So no matter how much ideation you teach these people, it will get used to create even more reverse engineering faster. I hope you connected me to the value. It doesn't matter how many ideation techniques they learn. Ideations will be used to do reverse engineering faster and better rather than go to the heart of it as to where is the real boundary. And if you notice, all that I've been sharing with you is gravity. Where does it stem from? Just to unscramble it in our little minds, ideas emerge from frames. The change is how do we do it now, how do we break through it, right, as people? The one thing is to know how to do it. Ideas in our minds emerge from frames. Imagine frames are like windows to your mind. When you're attacking a question or a problem, you open a window, and it reveals some ideas. When we run out of ideas, the answers are not finished. The frame is saturated. Shift the frame, and a new burst of thinking will start. Frames are like windows. Even people invent mental model, the mindset that we're talking about, that's like the lens. It doesn't matter what window you open, the lens doesn't change. The lens is me. It's deeper. That's actually the precise mindset that you start with. That's the most invisible as you go deeper. So this gravity, gravity is involved in this mental model. And really all our work is about how do you make it nice and then start breaking through those. Even recognizing them can be a challenge. This is a big method around the iteration world. Create a structure and a process, and innovation will happen, right? So we create a department about innovation and create a stage-geared process and then hope innovation will happen. I've never seen a breakthrough come through a process like that. I don't know if you have. You know, what are we trying to do? We are trying to use the -- a standard principle which -- that's how we handle quality. So we create a department around quality. And it was done, but that was all right, because it was maintaining the orbit. But orbit shifting is like creating another department. The most helpless people I've seen our chief innovation officers. What do they actually do? So they end up actually creating this central idea management and hope something will happen. How would something happen if it is not on the leadership agenda at all? It would be easy to keep the -- let's start with this thought. Orbit shifting is the purpose. Innovation is the means. Managing innovation will not let innovation happen. If there is no appetite for it, appetite comes from orbit shifting. You want to transform something and aren't really improving it now, doing more of the same can't do it. Now this is a need for innovation. Innovation can't be managed. It has to be unleashed. Our learning over these years is orbit shifting is the purpose. Innovation will be deployed. It will happen. But if the purpose is merely to maintain the orbit, then all the discussion around innovation really will end up nowhere. There's no need for it, actually. Nobody actually wants it. It's just a nice thing to talk about? And this is another bit. So you have to hire cowboys. And the hope is again something will happen, but these cowboys become part of the gravity in no time. The gravity's far bigger than individuals. I mean, the expectation to have four guys will change something that will only be temporary at best unless we -- so really the start point is not about structures, processes or hiring new people. We're breaking through that mindset gravity at the core. And when that unleashes, we've seen the same people do it. It does not take a change of teams. In fact, more often than not in our experiences, it will not take a change of teams. The same guys did the impossible once the mindset gravity was unleashed. So the other method is this one, right? It starts with an out-of-the-box idea. I'm sure you've seen these romance discussed a lot in some way or they say this is a great idea. All these stories are based on hindsight. The trouble is these are accidents usually. You can't wait and hope for accident. For an organization, you're designed for it. What you're really learning is that is not an out-of-the-box idea. But an out-of-the-box challenge is where it starts, deliberate out of the box challenge, which cannot be done through doing more of the same. To give you a very interesting example of this. Korea. Telecom into mobiles. Now, 3G's being introduced there as a network. Now, the data coming out of the box challenge will monetize the nonmonetized part of the network. It was not grow our business say 30 percent. The minute you do that people do more of the same even better. But this was an out-of-the-box monetized and nonmonetized part of the network. And it's very interesting the. More that they said that, one team -- one of the partners was looking at this and recognized that the ring tone is not monetized. Actually, when you call me and my phone rings 10 times and I don't pick up my phone, I don't respond, you actually use my network and not paid me for it. How would monetizing that have led to ring tones and all the missed call services which erupted from there, but where did it start? Out-of-the-box idea didn't come first. The challenge came first. Starting with an out-of-the-box challenge leads to an out-of-the-box idea, not the other way around, and that -- and I'm mentioning that where it is done despite design and deliberately when you want to really provoke thinking to another level. And to give you another example of this, a company in Europe Alra Foods was dairy products. They wanted to create a Big leap. And they also started an out-of-the-box challenge space food for the dairy products. I mean, imagine they took on a challenge of space food. Business guys said the only clients you have two, but the question was when you take your mind there we clear back through which can then be commercialized. So they actually did send it up to NASA, and it got commercialized in various formats. But it started there. With the correction of all this talk, you might say I deem it very fanciful, but who will actually do it? I mean, in business, in organizations, who are the heros? Heros are people who are great at overthinking and overachieving, right? Most organizations build this culture very beautifully. So the beginning of the year when event planning is happening for next year, who are the heros? The guys who know how to promise, just get a goal which is just below where they can achieve. That's supposed to be the hallmark of negotiation skills. There is a question of an out-of-the-box challenge. People have to be nuts to be taking that on and calling it a KPI. Absolutely not. Now, think about it. There's no question. So really the biggest idea is not the fear of. This is a myth that it's a fear of commercial risk. The bigger, badder fear is the fear of personal risk. Who will put his credibility on the line for an out-of-the-box challenge, and how do we cultivate and perform a system which distinguishing the tools of managers, leaders don't manage an innovation the way they manage performance. Now, that's the trouble with this world of ours, right? That we try and manage innovation the way we manage performance. The reviews, the metrics are not very different. Very often the engaging is absolutely similar. For us, the crucial difference had been an orbit-shifting challenge is not a number to be achieved. It's a direction, not a destination. In the chance of it, we wind up miles beyond where we are today even if we never get there. It doesn't matter if you don't get there, because in the challenge of it, we, in any case, have gone miles from where we are today. What's more important, transforming the status quo or achieving some numbers for the sake of them? Because in this case, the organization movement is far more than it would be otherwise. A lot of the examples that I shared with you, those people never actually achieved those numbers, but in the change of it, they shifted the industry reference points forever. So this is about how does one -- so innovation needs ideation is the other bit. Not really. I urge you if there is one thing I'd like you to keep in your mind at the end of the day is when you set on a big innovation journey, the start point is not brainstorming innovating ideas. If you want to break through, the start point is mapping the mental models of the current ways of thinking in that place. In fact, when we start on any of our missions, the first point is map mental model boundaries. That's it. Believe me. Seeing those mental models will make us see the blind spots in no time. It will stop this urge of rushing into ideation. Take on a big challenge. Just map boundaries and how many blind spots will come through. And each blind spot is an orbit that the team will see in no time. >>: [indiscernible]. >> Rajiv Narang: I will. In fact, I'm just coming to that. Let's illustrate that for you. So for just to give you an example, we started out with union leaders. Some years ago, their challenge was create the next game changing in laundry, for example. Now, they say, you know, around the world actually we've done hats lots of ideation. We have more than 4,000 ideas. I doubt there could be anything new, but let's try. So we invite you to share your ideas with us, and we want them. Essentially, what we started to see was those ideas, what are the underlying frames and what are the underlying mental models. Once the mental models started to emerge, the blind spots were very visible. Think about it. Laundry equals removing, right? In your mind, laundry is a process equal to really moving the bag of it. So all of the ideas -- most of the ideas are how to remove faster, better, with less water, more efficient, et cetera, et cetera. But the fascinating thing was the mental model boundary was removed. But that is post dirt, right? The moment it is post dirt imaging, you think of an alternative. How about predirt? How about renting dirt? How about living with it? And making the process of removal a lot more intricate. Those questions started coming up, and we started questioning the -- once they started questioning the mental model, we were to do it. Once they see the mental model, the blind spots are very visible, but that was -- that was one. The other thing was about removing. What about adding? You might think we're going to add dirt for sure; of course, not. But that -- those are the points where unusual things begin to happen. And the question really was adding -- what about adding health. But that's not laundry. Think about that. But that's not laundry, right? That's the immediate reaction. The trouble is that metaphor of laundry is a mental model by now. It is stuck. So the -- so there is the mental model. I'll give you a couple of more examples around this to get to the underlying why, how and what of mental models. There are mental models surrounding the why, the what and the how at all points of time. We start with invisible usually. In the water industry, the hope by the first one was you notice the whole industry here had gotten trapped into a process, a sequence. First -- so purification is about what? Filter at the source, then package, then drink. So filter at the source where the water comes into a house. It has to be filtered at that point. Then packaged, then drunk. Now, the whole industry's busy in the same mental model. So, therefore, everybody is making it faster, better, cheaper with more features. You notice now what's happened. The mental model is stuck. The one company in Switzerland they did challenge it very beautifully. Why purify at the source? How about purifying it as you drink? So the life straw. You can drink from anywhere, and it purifies it. You notice the photographs of people drinking from a lake there. It's cost effective, can free doable thousand milliliters in a year. Can you imagine how many lives this will save of people who could never possibly ever afforded that and also how liberating it can be? And this company is not in water purification. They were into fabric. So, really, didn't take a new technology. It take -it took the application of existing technologies in new ways. That's another bit. The next big technology will make the big leap happen. I urge you to think that's an escape route. The new ways of using and visiting even older technologies have so much power waiting there for them. It's really not the next big leap will come from the next big technology. Applications of new -- new applications of existing technologies and combination will create leaps, creative combinations as they did in this case. So this is the how. Let's talk about the why, right? With all these people that are into diabetes, all these companies over a period of time found that one company was questioning, what are we pill pushers, are we selling pills. How about helping the patient manage the disease? And diabetes happened to start ruling your life. So reframe it, how about helping manage the disease. And that led to the NovoPen, a pen-like device with one click which can deliver a dosage. Now, for people who get to a high level of diabetes, social life becomes tough, becomes embarrassing. Life's rhythms get disrupted. And so something which can be carried almost like a lifestyle statement, open it one click delivers. Now, what happened was people first time thought now I control diabetes, doesn't control me. But can you imagine this organization breaking through this boundary with all their life they're thinking about developing the next drug. It's not about a drug-delivery device. That was actually part of some marketing gimmick. They didn't even patent it. How would this have been a game changer in that world? But what is the mental model boundary, the why? Well, what are they into? And is there a completely different way of thinking? Giving the low cost airline also started like this. What is the purpose of the airline? Is it the comfort, or is it getting from point to point at the lowest cost? You notice somebody questioned it fundamentally, because over a period of time, everybody's adding value without asking value for what? People become creative at adding value and overachieving anything. Anything gets engineered out of shape over a period. Everybody's contribution is a value add and not -- and not a transform. So what I've tried to illustrate to you is what does it make to happen. And I'm just going to jump a few slides, because we have a time issue to deal with. The other is innovation equals insulated invention, getting the blind spot for the mental model boundary, but if you want to do it deliberately, it is not sitting in a room and generating ideas and experimenting. The challenge is to join dots across domains and across industries. In fact, do it deliberately; that we found always works. It opens up. Searching for a mental model boundary is a search for the next question; is not a search for the answer. For the new question, you find the new question, you'll find the answer. The trouble is finding the question in its itself. So it's not really the search for ideas but the search for new questions. How do you do that? By joining new dots deliberately. In fact, what -- well, what we get teams to look at is for any business they are in is fascinating. There are six horizons to join dots. First, look at the edgy customers in our field, not the usual ones, the edgy ones and what can be learned from them. The Novi pen can't from that, the insight. One girl -- one of the customers they found had done something very unusual. She actually developed a syringe, gotten a local clinic to develop it and prepackage it for the day. So, well, you know, that's interesting. How can we develop it into a product now, a pen shaped thing that is preloaded for a day or for a week actually. But that's -- where did it start from? One edgy customer, that one edgy insight. And so the challenge is not the usual, though. Edgy customers will challenge the mental model boundaries. The boundaries will get challenged when you engage with them. The searching for them, engaging with them is one horizon. Second, not just edgy customers equals. They work with the team which is creating a breakthrough in security, data security. So they meet the edgy customers first, then ecosystem. Well, who's in the ecosystem? Of course, the edgy customers were the usual securities applies in companies, et cetera, et cetera. Ecosystem. It also had hackers. Lots of insight came from talking, talking to hackers. You don't know how do you engage with security. Perhaps, there would be more insights there. But the most fascinating equals was going even further, marketing intersections, tying them, knowledge intersections. Who else deals with the security but is not a part of data security, in a different world altogether? There are a doctor deals with body security. Talking to a doctor about body security opened up new questions. And they found very fascinatingly that for them security with -- the mental model of security was like a fort, to prevent something from coming in versus the body which is about self-immunizing. That broke one of the mental models for them. Could be a different way of thinking here. And to talk to a entomologist how ants deal with security. You notice each of these is joining new dots. But those dots don't join together. You can't go around shopping for ideas. You do them deliberately. And this team on laundry, they joined new dots with the -- with the scientist who was involved in studying barnacles, if you like. Why did they meet him? Because the moving is not restricted to the laws of biological dirt. So let's meet somebody who deals with bacteria. So sometimes you're talking all bacteria is bad, all bacteria is bad, kill it, kill it. No. Some bacteria is good. For example, barnacles. You know, they sit on the body of the animal inside the sea. Actually, it's food. Help them take in nourishment. That led to a idea of what about doing the same thing to clothes, take in health? Could something prevent accidents? Now, that opened a new question, right? Now, certainly new dots joined. That's where it opened up, what about adding health. There could be a different way of thinking. But where do they start talking to these people, engage at least. Conversations don't happen over a piece of paper and report. These are live engagement dialogs. These are what we call insight dialogs. When you open up insight dialogs, it's fascinating how many new dots start to join. And all these will then become possible. These are six horizons. And taking a team actually to engage with these, it's fascinating how many new dots join and very quickly. It takes a matter of weeks, actually, not even months. Well, what happened accidentally over years can happen in a week or two weeks by deliberately setting up these joining dot conversations, of course, deciding them first. You know, another company settled on this challenge, and they were talking to us about reducing water usage in all the personal care products, personal care products, your bathing, et cetera, all water intensive. And water is becoming a challenge worldwide. How do we reduce it, was there their question. So let's say you know how to optimize it, reduce in the shampoo, et cetera. A lot of conversation happened like this. And what I was telling them, well, you know, if you start like this how to reduce water we'll end up an optimizing answer. It's not an orbit-shifting challenge. What would be an orbit-shifting challenge? How about change in personal care with zero water. That is orbit shifting as a challenge, right, to substitute it 100 percent? Now, we have no answer. You only have the question now. Then we settled on this journey. And who did we meet here, the edgy customers. Army officers who had been on glaciers, they have no access. People who have no access to water, what do they do? So new insights started from there. We even met a prisoner in a cell. They have very little access to water. What do they do? Somebody was keeping himself up with a pale. So it was meeting exceptional edgy customers. Nurses who handle bedridden patients. You notice each conversation was a new link altogether in the mind happening. And in terms of the knowledge intersections, completely new people who have done away with any kind of dependencies. When they started to join, all these new possibilities opened up, and they have a range of at least three game changes in the pipeline now. And, finally, the guider won't get killed. They just get diluted. Let's have you come up with a big idea. What will happen to it now? Now you find that certainly the rest of the organization needed to execute it. Just few guys came up with it. Everybody has to be involved in executing it. What feels like a Snow White in a boardroom becomes a pig by the time it reaches the market, because everybody takes away a little bit from it. How many battles would you fight, how many cyber battles, to watch the exciting opportunity [indiscernible]? It's a headache, right? As if I don't have enough work. So you know what happens at this stage? People engage with the new with the old comfort zones. It's a triangle manager handles triangles 10 years of his life, and now you're giving him a circle. So what will he do? He'll fit the circle to the triangle and see what he can do and what he can't do. Yeah. If you want to do that, then you have to wait five years. And so forget it, man. Actually, let's compromise. Let's at least do 80 percent what you can do. First compromise. This is the very way compromises happen. I'm sure you lived through these compromises. In a lot of staged interviews, this is exactly what happens. We start fitting in the new to our existing way of working, and the compromise is one small touch at a time. It reduces over a period. And then when it doesn't work, we say the idea was bad. Actually, the execution was a problem. The idea was okay. It was taken out of shape by the time it finished. So, really top management must mandate doesn't work. Finally, the biggest challenge for innovators is to enroll cross-functional people and to make it into a shared dream now. That is by far the lowest skilled, and which is the toughest challenge usually to excite and enroll peers into contributing to it with the same excitement that they feel now. And, finally, the big idea is enough. Not really a big product. Big true product will need a big true marketing innovation, perhaps. Sometimes a new idea goes into the old pipe in the last mile. It is sold in the old way. It is taken to market in the old way. And it gets reduced to nothing. So very often the last mile go the market is an even bigger challenge, and some of the bigger like MPresa, for example, didn't start out like the way you see in the model even. It started out as way to breath. They started out a micro finance company will be our customers. For two years they start that out til they discovered the bigger opportunity was with beta scene, but they had no patience to see it through. In a year and a half of experimenting in a small way in one market, they figured out by the time it finished it was B to C. Even bigger opportunity had developed. They didn't start with that insight. They finished with it. But can we have a way of doing that by design? Is there a reason why more ideas shouldn't succeed? Because we as humans there is no shape. It will be the final shape. It won't be. In the market, the dynamics will change it, and we are open to seeing it. Not just open. Do it by design. In fact, it's in-market versioning, not product versioning. In-market versioning. Build it in-market success model. Not, See it works. Say, Let's see if it works. There is no if. There's only how to make it work. The first really idea might not work. The second might not work. The third will work. So these are the six different stages that I tried to pull out for you. You know, with all our learning, seeing it, I hope I've tried to share with you from the starting from how you initiate it to build it, to grow it, to take it to market. What does it take to make it happen? I think we've run out of time. But questions, are left to you. Yes, please. Anything you like to add, ask or share? >>: [indiscernible] question around you talking about incremental change versus innovation. Innovation seems to in that context to be this big game changer. What if you have a product in mind, how do you -- you know, how do you approach it so it's not an incremental change, it's an innovative change into something that may [indiscernible]? >> Rajiv Narang: Actually, let me see if I understood your question. At two levels. One is to -- just to demystify that orbit shifting; can happen across all the levels in an organization. Yes. The examples I've given you are larger than life kind of examples. For example, at a function level, we've even worked with companies right on the shop floor. So where the guys at the shop floor have made leaps happen have created new reference points for the industry worldwide but in their space. It's an orbit-shifting innovation in his space. It need not be a game changer at an industry level. But for -- it's a functional orbit shift, shall we say. It could be a communicational orbit shift. It could be an organization orbit shift or an industry orbit shift. The thing is there is space for every one of us. In fact, even for mental for HR, product innovation in HR, right, talent, market. The product we have is perhaps in the industrial age. There's so much opportunity sitting there. So I would -- the only thing is to shift focus to creating a quantum leap in my space. That would be an orbit shift. But to lift it so that we don't assume the process is a given. An incremental innovation assumes the process. Okay, you need to tweak it. But when we say an orbit shift, then the process in itself becomes a question. We're making change. Please. >>: So one of the things you mentioned at the end was this example where the idea is a circle and everybody knows about triangles, you know the, circling the triangle. And the solution -- if I understood correctly, the solution was being told to stay focussed early on and [indiscernible] invested into this orbit. >> Rajiv Narang: Yes. >>: Shifting. And I agree with that. But I just find that sort of -- an unsavvy mind. You know, in large organizations, there are many stakeholders. >> Rajiv Narang: Yeah. >>: Practical. We don't want to be. >> Rajiv Narang: I would think at various stages the challenge is to engage them in a cocreater manner rather than in presenting and differing manners. The presenting and differing is the real issue. And, also, I would urge to think when a stakeholder starts saying no, the challenge is how do you engage with that. What appears to be an unconditional no, could be a conditional yes. The challenge is to get to that why. And, therefore, use it as an opportunity rather than backtrack immediately, because nobody really has a malintent, or at least 95 percent people don't have it. They get misunderstood more often than not. And we found that when we are actually engaged, you'll find what started out as a no very often is a conditional yes. But, actually, discovering that actually transcends the idea. And when the person finds his thinking has gotten understood and is contributed, he starts wanting to. That is an illustration. So, really share with them in a work in progress stage. As we say, sharing with them things which are later all in a work in progress stage exclusivity. A fully disclosed deck is excluding, actually. But preparing them for that is a question. Yes? >>: The ops -- most of these -- or I was wondering I deal with a lot of organizations that pride themselves on having a narrow scope by design. How do you find is the best way to, let's say, to challenge them to see that why the scope would be better for the organization? Just because, like, they are so proud of only doing one specific piece of the picture. And wondering if you have any thoughts of. >> Rajiv Narang: Basically, how do you provoke them to think beyond it, is it? If you notice, it would really begin with first some person reaching a stage of positive restlessness with the current stage. Now, the question is where is that restlessness sitting. It is to uncover that and leverage that to move them, because very often with the heart first, and the mind will follow is the principle that we found works usually. In fact, I'd urge you to think with the heart first and the mind will follow rather than the other way around it especially with -- wherever there is a positive restlessness is uncover those and leverage those points to move them. Please. >>: [indiscernible] already reached out to your organization to have you be a consultant. Whereas now -- [indiscernible]. And what advice would you give them? >> Rajiv Narang: Well, all I can say is that there is so much opportunity. I would think they at least [indiscernible] emerging especially in India is how do we leverage innovation to leap frog development and innovation and not merely catch up quite like what's happened in the mobile space. You know, it's fascinating there in a short span over a decade the way it has leap frogged; is not merely caught up. It's like following the usual model would have taken decades. What has happened in a few years? Can the same thing happen in other spaces? And there is an example which I want to share with you in literacy where the same thing is happening, what I shared with you in Mongolia. That is the part of innovation which deal with the fundamental questions differently. But not to follow, but to question. Today, just to share with you, the National Innovation Council in each state has a state innovation council, and we are now automating getting these requests for state innovation roadmap purposes. So starting there. It's at the start. But I am hopeful, but then I am a hopeless optimist >>: My company is going through a lot of changes, and what we find when we ask questions people are very receptive in listening to the question, but then one starts answering one of those questions, that's when things go awry. So my question is about people are always -- are always welcoming when you start asking questions, but when you stop the question, put the stake on the floor and start answering and doing something, that's when the devil gets loose. So what is your one key point that I can take so that when we move from the transition being questioning to answering how do you control that part? >> Rajiv Narang: You notice what happens is the moment you start answering those stakes get involved, right? Intellectual discussion is easy. It's nice to have a very fascinating discussion as long as there is nothing to be done at the end of it. But then if something is to be done which I have to do, my God. So where does it begin? Why are we questioning? If we have an out-of-the-box challenge first, then questioning is normal. It is natural. You have to question then. The first question is to have that challenge sitting up there what doing more of the same cannot do. Now people are engaged in questioning. There -- in fact, they will listen to the question now. But the starting point really is there. Somebody has to put stake on the ground there. >>: Everybody has -- I mean, the whole company likes questions, likes to listen to questions. And for that same reason our goal is to make money. So we like to make money. We like to ask questions, but we don't know -- when we start thinking of doing certain things to make money that's when things go bad. So my question is -- again, my question is, what sort of questions and what sort of mindset should we take with us so that as questions become answers we can do the orbit shifting. >> Rajiv Narang: Actually, we have often found that money is a consequence. In fact, is the question. That finally how do you want game changing. In fact, we want to create in the market. Therefore, money will come. But what is that? For example, the MPresa idea, it didn't start by an idea. They actually looked at what are the beginning development goals of the UN and how can we contribute to those. And financial access was one. You notice it started there, the big insight, the opportunity. I urge you to think where are those big opportunities sitting out there. There in fact is needed. People sign on to an in fact. They want to change it up. Then it starts being pressure. It becomes inspiration. Otherwise, seems like pressure. Targets are pressurizing, but, in fact, changing lives is inspiring. There's a reason to do things. After all you need that extraordinary motivation. Yes? >>: I was going to ask a very specific Microsoft ->> Rajiv Narang: Please do. >>: -- question. We're -- I mean, we're at a point we have a new CEO who's making a valiant effort to change culture toward innovation. And how do you -- how important is culture in all of this? And how do you do it in the company of a 100 or now 125,000 employees? >> Rajiv Narang: I would think -- I would think the start point would be uncovering that gravity and confronting it directly, but in a constructive way. The objective is not to put down people. It's to actually construct. Really put attack mindset clarity fundamentally. And question that. And openly do it in the most constructive manner possible. That is the great -- to present the current situation not as a threat but as a greatest opportunity of our lifetime. That -- when reinvention happens, very rarely do you -- are you a part of reinvention doing the same thing every day we all do. But here's an opportunity to create absolutely, to reinvent it. If you do it with that intent, we suggest that mindset gravity has to be done with a view to creating the next orbit and not with to evaluating today. When it is done with that sense, it is positive. It unleashes it. It doesn't poo-poo it down. But it has to be done directly. Deflecting it around won't make a difference. >>: [indiscernible] example. The French wine example, what other of these examples come to mind the companies longstanding, you know, very successful that made orbit shifts that were material to their growth and development and success? >> Rajiv Narang: Which actually made it? Successful companies that made the orbit shift happen? Well, let me -- one well-known example is LEG. Where the interesting thing what I have seen is they pioneered, for example, the guide in India in the emerging markets, you know, we are not here --. I don't want to be known as the best MMC in India, but the most admired Indian company. Therefore, make your difference to these people here is my real purpose, and that has led them to so many breakthroughs like the Mac 400 which is a portable ECG, a portable ECG machine at one-fifth the price, which is now a breakthrough for the world. But they started out with questioning that, and they had the space to do it. So even one company had the capacity to reinvent internally. So there are other examples there. However, I must say they're lesser in comparison to others which are far more the standing. In the sense, that is where gravity takes hold tight. But there are -- to emphasize one very successful, the same model everywhere. This is the first time they did anything, the first time. But what was I think the big learning there is to derisk it, to do it in one market. The challenge is not to award this for the out-of-the-box challenge and to try it out fully in one market and let it play out rather than putting it center stage and declaring it worldwide. Then everybody gets concerned tomorrow if it is not working. The challenge is to let it play out, give it space to play, to work, to grow in a side market. It doesn't have to be a global rollout on day one. Global rollout happens when you build it into a success model rather than being in a hurry to roll it out. So that helps building that capacity in-market versioning literally and not technically, but in-market. versioned literally. >>: So the business model gets [indiscernible] the last question. >> Rajiv Narang: Last question. guys. All the very best. Okay. Thank you. Thank you very much,