Tomorrow’s leaders may need to get comfortable with being uncomfortable

Preparing for the 4th Annual Open Innovation conference coming up April 7 - 9th, our team got talking about what we could share with Intuit, General Mills, GlaxoSmithKline, Nestle, Motorola, Merck & Co., NASA at the event that would be worth their time?

We talk to businesses every day about cross-enterprise crowdsourcing. Mostly we get asked about the how to’s and ROI of open innovation for seeking research or technology breakthroughs, new product and service ideas, testing and building world-leading brands, and anticipating consumer and citizen preference and behaviour trends.

Truthfully, these business cases for crowdsourcing are pretty common sense.

What we notice is relatively uncommon though is an understanding that crowdsourcing isn’t about getting more people participating in business as usual, it’s about how we need to change what’s usual about business to get more people contributing. Shifting to open innovation means evolving how organizations identify new strategic direction, manage knowledge and input, and form real relationships with people not just as employees. We’re not the only ones observing this - Boris Pluskowski blogged a warning “Is there a lack of innovation or originality in the innovation practice itself?”

Let me come clean here. I’m a member of the “has been” generation - the over 35 crowd. I have been caught on video ranting that I’m too set in my ways to fully embrace gmail after a decade plus on Outlook. I relate to a love of mastery versus uncertainty - big time! But as so many of us have learned - we cannot change our odds of succeeding without changing anything at all.

So when we have some time to workshop on innovation with GM, Nestle and Nasa here’s what are going to talk about:

Where is all this going? - The enterprise-wide opportunities of open innovation

- Talent scouting: How will tomorrow’s bright minds want to contribute to your organization - as employees and outsiders?
- Venture financing: How can open innovation take the risk out of choosing the up and comers most worthy of investment in your space.
- Testing: Whether you need to test a mobile app globally or a new drug with select patients, how can going open take speed and cost out of your business?

Some things to brace for and embrace:
1. Key contributors need not be employees, so you won’t control them so much, nor will you own them exclusively.
2. You may receive a multi-million dollar product or venture idea from a guy you known mostly as lapdoglover - judge the invention not the userid (remember it might be his kid or grandkid that picked the ID for him)
3. It’s not having a digital suggestion box that invites the world that’s game-changing, it’s the ability to apply crowd effort and technology to filter statistically most-likely-to-succeed ideas to the top, fast, so you can have them in market first and faster.

4. Information management and governance just went warp - If privacy and IP ownership make your fists clench, sign up for some serious meditation and laughter therapy ahead (and get involved with us in the thinktank: IBM Information Governance Council)

Hope to see you at the conference in Philadelphia. Introduce yourself!

Crowdsourcing has become one of those marketing buzzwords that gets thrown around a lot on blogs and in conference rooms. It’s the shiny new toy and everyone wants to play with it. That’s great, it is an exciting and potentially dynamic way to generate breakthrough ideas that will resonate with consumers. But the term is applied rather liberally to a wide variety of activities and executions.  Want a new logo for your brand? Crowdsource it! Want to engage consumers via a contest? That’s crowdsourcing!  Looking for new product innovations? That’s right, you guessed it, that’s crowdsourcing.

Now this is to be expected and comes with the territory. Until the marketing communications industry has had a couple more years to adjust to the opportunities that technology enables, crowdsourcing is going to be wielded more like a club than a scalpel. But hopefully agencies and brands will become more sophisticated and nuanced in their approach.

When a brand invites customers to produce content and receive something - money, recognition, prizes - in return, that’s not crowdsourcing, that’s a contest. We’ve been doing that for years.

When a brand puts out a call to action to the freelance creative community (amateurs and pros) to create a new 30 second TV spot, that’s not  crowdsourcing, that’s a cattle call.

We have the ability to harness the skills, experiences and intellect of virtually anyone on the planet and the best brands can come up with is, “Hey everybody, what should the new flavor of our fizzy sugar water be?”?  Ok, I guess, but this seems like a missed opportunity, and that’s why I advocate expertsourcing rather than crowdsourcing.

What is expertsourcing? Expertsourcing is a sub-category of crowdsourcing where the goal is to aggregate a wide range of individuals who are experts in their fields, rather than just a ‘come one, come all’ herd of people who have come to the party perhaps with nothing really worthwhile to contribute. Is there really much value in the 35^th, 70^th or 100^th extra logo concept that was just slapped together by someone with no training?

With expertsourcing you’re looking to get a group that ideally has little overlapping skills or knowledge. The more diverse the better, the more esoteric the better. For a brand, utilizing this sort of talent to create a new ad for beef jerky is a waste. You’ve got to think bigger. You have to challenge them with a BHAG (Big Hairy Audacious Goal).  Reinvent the education system; create a downtown with only bike traffic; create a better system of government!

Experts have a passion for causes and often have connections to experts from other fields. They are highly self-motivated the synergies created by having multiple experts often produces even greater results.  It’s time for brands to start thinking about trying to harness a school of sharks, rather than herd a flock of sheep.

Bio:

Rick Liebling is a marketing communications professional and brand consultant based in New York.  He recently published an eBook on crowdsourcing, Everyone Is Illuminated. You can follow him on Twitter @eyecube and read his blog at rickliebling.com

Readiness tips for crowdsourcing the first-time, and every time after

I spent much of the day yesterday with Carrie Maynard at PWC working out the game plan to launch and manage a community which PWC is creating to uncover how Canada can best lead in a digital economy. It’s an initiative that combines some of the things Chaordix is most passionate about - change making, technology and tapping a crowd.

As we countdown to launch, it was a chance to bravely run through some crowdsourcing worst case scenarios that are worth it….

1. Nobody comes - like the party where you have set out appetizers for 50 and 3 guests show. This is a risk when there’s no thinking on crowd recruitment and promotion. So it’s avoidable, but if it does happen the loss is really in face and time. And that’s always the risk of innovating.

2. Nobody comes and everybody notices - this is a twist on #1 where paparazzi on the front lawn merrily shoot photos of you hucking appetizers in the trash which they publish alongside scathing reviews. This one hurts a little - especially with condolences rolling in for weeks. Best response here - read the criticism, re-plan and announce improved round #2 right away.

3. Lots of people come, some have an axe to grind - The first time (expect this more than once) that a casual stranger in the community slags the host or panel will be… uh uncomfortable. Our advice there, trust that the crowd is up for open mic night. The host and panelists should comment back with their perspective. Don’t worry about getting everyone agreeing - that’s dull really - and members joined to see differing ideas and debate.

4. People crash the party for the free food - if members are eligible for participation rewards when they contribute - submit, vote or comment - even when entry is a blind draw there’s a chance that lurkers who aren’t really doing the heavy lifting will steal the loot. Just like at the airport when the most impatient guys worms his way into getting the best last seat on the plane. Online life mirrors offline. It’s not the Holodeck but trust that hackers worldwide are unlikely to organize a commando effort for a free iphone. What’s more technology lets you track gaming and collusion - you can solve and manage the anomalies. And you can always special prize an overlooked contributor.

5. There’s a power failure - this is part of what Chaordix is paid to worry about. As much as technology is based on logic and math, there’s still an element or pure chance in making it work non-stop. I say this even knowing that we perform at least quarterly audits of our system stability, security and impenetrability of our code to risk. Beyond great redundancy plans, the main thing to remember if this does occur is to not be Tiger Woods. Act fast and honestly admit something’s up, say you’re sorry, solve it quick and invite everyone warmly back after the hiccup is fixed. If you have any sense of humour at that point, look at the spike in traffic you’ll see as the critics all lend you new member leads as they heckle your site.

6. It’s a bit of a dud convention - lots of people show, but you don’t feel like they are smart or saying much interesting. Good that we rip off the Band-Aid here and tell you this is HIGHLY likely to happen. The thing about inviting in unfiltered members of the public is they will bring along widely varied ideas. Some you won’t want to spend time on. Some will have you thinking for days. The whole value of crowdsourcing versus just a suggestion box is the crowd helps to filter the quality from the quantity. And prepare for a few surprises in where that quality will come from. We’ve all had a friend’s visiting cousin turn out to be the most interesting and entertaining guy at our party.

PWC’s Canada’s Digital Compass project is sure to raise the profile of Canada’s opportunity to lead on a global stage in technology. It demonstrates that PWC is willing to take risks to bring its clients innovative thinking that will help them best compete. It will hopefully get some Canadians connected and talking that would otherwise not have met. It is also sure to demand a little courage. We salute PWC and all of our clients who take risks to catalyze new possibilities.

In February 2010 Super Bowl XLIV became the most-watched TV program ever, pulling in an average audience of 106.5 million viewers. The big game, the fans and the ads all contributed to a huge event.

But did you know that 2 of the top 5 ads shown during the Super Bowl were crowdsourced by Doritos?

Or that the top ads before and after the Super Bowl — those with the largest viral reach and sustained engagement — were crowdsourced? *

True and true.

Advertising is just the latest industry to find remarkable ways of unlocking the value of crowdsourcing.

Through the last 2 years I’ve seen advertisers experiment with crowdsourcing, find early success and expand how they use crowds in their marketing mix.

And we’ve discovered the following guidelines to maximize the chances of advertisers finding outstanding success with crowdsourcing.

• Fit the process to the brand — How open to participation is the brand? Or, to flip the question, how much control of communications does the brand need? Many brands are consumer-focused and benefit from a totally open creative process. Other brands are business-to-business or subject to regulatory requirements and need a different approach. Match the process to the brand and you’re starting on the right foot.
• Start small and specific — You’re getting your feet wet when you’re starting, so start by dipping your toe in. Define a specific advertising campaign, objective and scope of work. The smaller and better defined, the better chance you have for success.
• Great tools + great people = win! — Once you’ve set yourself up to succeed, success is a matter of combining great tools and great people. Great tools so the process works clearly, quickly and pain-free. Great people because they are the source of ideas and the engines of creativity. And if you’re starting from scratch both tools and people are hard to create and recruit.
• Measure, listen, learn and repeat — Measure effects of your advertising. Listen to feedback from customers, employees and stakeholders. Learn how to apply your lessons to the next phase. Then repeat. It’s not always the best first shot that wins, it’s always the fastest to learn that wins.

When we worked with the team at Crispin Porter + Bogusky on the launch of Microsoft Windows 7 we needed to work to specific launch deadlines and with confidentiality requirements. They wanted a big bang and no leaks. So we fit the process to the desired outcome.

With other clients, we’ve done whole creative campaigns in public, with an open call for contributors, refined to a select group of creators and available creative work throughout the process.

The ads that resulted had feedback and market testing baked in and lived up to our tagline: People-Powered Advertising.

Next up: more.

More different ways for crowdsourcing to improve advertising.

More variations of ads so you stop seeing the same ones over and over and over, etc.

More types of creative work — iPhone apps, social games, digital billboards — to help companies communicate and engage their customers.

Today: we can see how crowdsourcing of advertising has unlocked creativity and led to new approaches, new ideas and new creators finding outlets for their work.

Tomorrow: we can only guess what we’ll see. But it’ll surely be creative and it’ll surely connect people with great creators and creative work.

* AdAge article Doritos, Google, Super Bowl Ads Storm Chart

James Sherrett is the founder and CEO of AdHack — the marketplace for ad creative. In past lives he wrote a novel entitled Up in Ontario and guided fishermen. Now he connects brands and ad agencies to the world’s top on-demand creative department: 500+ strong in 18+ countries, working in all media types: TV, web, video, print, games and more.

Located not far from Vancouver, with a live feed of the Olympic into our office (you nailed it CTV!), we’ve felt real comradery with team Canada this last week. Our team’s thighs much less muscular than bobsleighers or even female figure skaters, so why do we feel this kinship with Team Canada? It’s more than our passports (or most of them - we’re not all true north), it’s a bit of a love affair with an abnormal, competitive life.

10 Ways team Chaordix is just like team Canada:

1. Daily people tell you you’re insane and obsessed
2. You’re scored on a performance of minutes and seconds. No one asks if your product was having an off day.
3. You hope for fair judging. As if the market were a meritocracy!
4. You see people around town wearing your shirts
5. When camera’s turn on you are all driven, all dedicated, but humbly grateful too
6. Whoever picks your outfit on race day (VC pitch), you worry it makes you look like you’re trying to hard.
7. To make it to the finish line, you consider taking cash from people you’ve rallied against- competitors or uh…McDonalds
8. Some days you crash and consider quitting but you don’t. So do your team mates.
9. You care A LOT about gear and about what’s for lunch
10. When retired you’ll do one of two things - coach the next up and comers - or go “odd” maybe herding sheep on an island
11. (For bonus points - of course you go for those) You miss seeing your family more, but are profoundly motivated to make them proud.

GO CANADA GO!

We’re cheering for us.

Team Chaordix