How To Build Innovation Teams (My Playbook From HP and CableLabs)

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How To Build Innovation Teams (My Playbook From HP and CableLabs)

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Why do people believe you can build an innovation team by hiring a few smart people and giving them a creative space? In my experience, teams built on this false premise die within eighteen months. How do organizations get it so wrong? Innovation consultants have told them, or innovation books have taught them, that this is how you build an innovation team. Those experts have rarely built and led innovation teams that delivered. So why is this episode any different? I built and ran HP's Innovation Program Office (IPO), and the teams I led there were named to Fast Company's Most Innovative list three years running. For the last fourteen years, I've run CableLabs, the research and innovation lab for the global broadband industry, where our teams build technology that half a billion people use every day. This episode is about what it takes to build innovation teams, based on my experience doing it at scale—multiple times. By the end, you'll have the six steps I use, in the order they have to happen, what goes wrong when a team skips one, and a way to score your team today. I'll start with a decision I almost got wrong. In 2007, I was about to approve a 20 percent time policy at HP. Under what is called "20 percent time", employees spend about one day a week, a fifth of their working hours, on projects of their own choosing. Google had made it famous; everyone was talking about it, and it looked like the answer. Chuck House stopped me. Chuck had spent decades at HP working for Dave Packard, who founded the company with Bill Hewlett. "Before you do anything," he said, "you need to talk to Art." Art Fong was HP employee number nine. When I sat down with him, he told me something I didn't know. HP had already tried 20 percent time. In the 1950s. The company had watched Art work on his own ideas on Friday afternoons, so it gave everyone Friday afternoons. Most people sat around not knowing what to do with the time, and HP dropped it. "The ones who were going to innovate, like me, were already doing it," Art told me. "The mandate didn't change behavior." That was the lesson. You can't order people to innovate. The people who will innovate are already trying, and your job is to find them and clear the way. I never approved the policy. Google killed its "20% time" policy in 2013. What Art told me next shaped every innovation team I built after that, and we'll keep coming back to Art and his story. Let's get into it. The Innovation Team Fallacy The innovation team fallacy is the belief that if you hire smart people and give them a creative space, innovation will follow. It's easy to believe, because every successful innovation team you've read about had smart people and a place to work. That's the part you can see from the outside. What you can't see is what had to be in place before the work began. There's a second version of it, and it's the mistake I almost made with 20 percent time: copying what worked at another company and expecting it to work at yours. I'll come back to that later, with the story of a company that learned it the hard way. Teams also fail when you build the pieces in the wrong order. Get the order wrong, and it doesn't matter how talented the people are. Here are the six steps, in the order they have to happen: Build the culture before you hire anyone Recruit for specific roles, not just talent Adapt the process, don't adopt someone else's Fund it like innovation, not like operations Measure what keeps leadership bought in Lead it day to day Step 1: Build the Culture Before You Hire Anyone Culture is how people behave when nobody is telling them what to do, especially when something goes wrong. New hires don't learn it from what you say, or from the employee handbook. They learn it from what they see. Art Fong didn't describe HP's culture with a policy. He taught me through stories. One weekend, Bill Hewlett found a manager had locked the tool room with a padlock. Bill came back with bolt cutters, cut the lock off, and left a signed note on the door: "Never lock this again." He wanted his engineers to get to parts and equipment whenever an idea hit them. The note told every engineer at HP that the founders would remove anything that stood between them and their next idea. When Art tried to buy a house in Palo Alto, and discrimination stood in the way, Bill and Dave bought it from the seller themselves and sold it to him. No memo or values poster builds that kind of trust. It's built by what leaders do. Three things have to be in place before you hire your first person. Permission to fail without penalty. Innovation means working on ideas that are too early, too unusual, or too risky for the company's normal processes. Most of them won't work, and nobody brings you ideas like that if failure costs them. People watch what happens to the first person whose project gets stopped. If that person's next performance review takes a hit, your team stops proposing anything that might fail. ...

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