When Laura Baldwin arrived at O’Reilly Media in 2001 as Chief Financial Officer, she was well equipped for the job. She had previously held the same position at Chronicle books and then spent a few years as a consultant for BMR & Associates, a firm that specializes in helping media companies.
The challenges at O’Reilly, however, were somewhat unique. Over the years the company had become something akin to the official publisher of Silicon Valley and had ridden the dotcom boom to prominence. Now that the boom had turned to bust, O’Reilly was in dire straits and banks were calling in loans.
So Baldwin did what a good CFO does, she instilled better financial management and within a few years the company had returned to profitability. Yet she and the firm’s founder, Tim O’Reilly, began to see an opportunity to truly transform the business. Today, as President, she focuses not just on publishing books, but on everything that comes after.
Market watchers like to follow trends because they are often a good indicator of what will happen next. The near future usually does look like the recent past, but not always. Sometimes we hit an inflection point. That can make things veer sharply from the trend and that change things in a way that can be truly transformational.
For example, for the first two decades of the 20th century, electricity and the internal combustion engine had limited impact, but around 1920 they became transformative and drove a 50-year productivity boom unlike anything before or since. Something similar happened with digital technology around 1995.
Today, we are likely on the cusp of three major inflection points in energy, synthetic biology and computation that will have that kind of transformative power. The impact of any one of these is hard to foresee, but when you take all three in tandem it raises the possibility of entering a completely new era. The future may be unlike anything we’ve ever seen before.
By the mid 90s, Microsoft ruled over the technology world. Through its Windows operating system, which ran roughly 95% of the world’s computers, it was able to leverage control over much of what other companies did and built commanding positions in productivity software and other facets of the industry.
Yet even as the tech giant was at its peak, a danger loomed. Like barbarians at the gate, hordes of developers banded together in online communities to collaborate on their own software. Unlike Microsoft’s proprietary products, nobody owned these and anybody was able to alter or customized them as they pleased.
Steve Ballmer would come to regard open source software as a cancer. Yet where Microsoft’s CEO saw danger, two entrepreneurs saw an opportunity. They created a company called Red Hat that was focused wholly on the Linux open source software, a seemingly crazy idea at the time. Today, however, it has grown into a major global enterprise. Here’s how they did it.
When Mohandas Gandhi was a young lawyer he was so shy that he couldn’t even bring himself to speak in an open courtroom. He was also impulsive and had a nasty temper. Nelson Mandela started out as an angry nationalist, who argued vigorously about joining forces with other racial groups in a coalition to fight against Apartheid.
Yet as I explain in my book Cascades, both men learned to conquer themselves and evolved into inspirational leaders that achieved transformational change. Movements, as the name implies, must be kinetic to be successful. They need to start in one place and end up somewhere else, evolving and changing along the way.
The same is true for an organization. To create a real impact on the world, you first must drive change internally. That’s not easy and it doesn’t happen all at once, which is why most transformations fail. However, successful leaders understand that to bring true change about it is not enough to simply plan and direct action, you have to inspire and empower belief.
One of the most damaging myths about creativity is that there is a specific “creative personality” that some people have and others don’t. Yet in decades of creativity research, no such trait has ever been identified. The truth is that anybody can be creative, given the right opportunities and context.
If you don’t believe me, take the least creative person in your office out for lunch — someone who doesn’t seem to have a creative bone in their body. Chances are, you’ll find some secret passion, pursued outside of office hours, into which they pour their creative energies. They just aren’t applying those energies to their day jobs.
The secret to unlocking creativity is not to look for more creative people, but to unlock more creativity from the people who already work for you. The same body of creativity research that finds no distinct “creative personality” is incredibly consistent about what leads to creative work, and they are all things you can implement within your team.
On April 3rd, 1921, a handful of journalists went to interview a relatively unknown scientist named Albert Einstein. When they arrived to meet his ship they found a crowd of thousands waiting for him, screaming with adulation. Surprised at his popularity, and charmed by his genial personality, the story of Einstein’s arrival made the front page in major newspapers.
It was all a bit of a mistake. The people in the crowd weren’t there to see Einstein, but Chaim Weizmann, the popular Zionist leader that Einstein was traveling with. Nevertheless, that’s how Einstein gained his iconic status. In a way, Einstein didn’t get famous because of relativity, relativity got famous because of Einstein.
This, of course, in no way lessens Einstein’s accomplishments, which were considerable. Yet as Albert-László Barabási, another highly accomplished scientist, explains in The Formula, there is a big difference between success and accomplishment. The truth is that success isn’t what you think it is but, with talent, persistence and some luck, anyone can achieve it.
In 1965, Intel co-founder Gordon Moore published a remarkably prescient paper, which predicted that the number of transistors on a computer chip would double about every two years. For a half century, this process of doubling has proved to be so remarkably consistent that today it is commonly known as Moore’s Law and has driven the digital revolution.
For most of the past 50 years, Intel has led the industry by doubling transistors faster than its rivals, investing billions into massive fabs to produce the next generation of chips before anyone else. More recently, however, the giant has stumbled, losing ground to firms such as AMD, Qualcomm and Nvidia.
Yet the company recently announced a breakthrough with its Foveros technology that has the potential to put it back on top. No longer just cramming more transistors onto a silicon wafer, it has solved a decades old physics problem to stack chips on top of each other. This has the potential to not only change Intel’s fortunes, but to reshape the industry for years to come.
When H.G. Wells was born in 1866, there was no electricity or cars or even indoor plumbing. Still, his active imagination conjured up a world of time machines, space travel and genetic engineering. This was all completely fantasy, but his books foresaw many modern inventions, such as email, lasers and nuclear energy.
It’s no accident that people who invent the future are often fans of science fiction. In fact, in Leading Transformation, the former head of Lowe’s innovation lab explains how he hired science fiction writers to help inspire the company to leverage virtual reality and build a new future for the company.
To create anything truly new and different, you often need to discard the constraints of the present. Yet that comes with a problem. How do you transform fantasy into something real and useful? What makes great innovators truly different is how they combine imagination with practical problem solving in order to bring even the wildest pipe dreams into reality.
Ever since IBM’s Watson system defeated the best human champions at the game show Jeopardy!, artificial intelligence (AI) has been the buzzword of choice. More than just hype, intelligent systems are revolutionizing fields from medicine and manufacturing to changing fundamental assumptions about how science is done.
Yet for all the progress, it appears that we are closer to the beginning of the AI revolution than the end. Intelligent systems are still limited in many ways. They depend on massive amounts of data to learn accurately, have trouble understanding context and their susceptibility to bias makes them ripe targets for sabotage.
IBM, which has been working on AI since the 1950s, is not only keenly aware of these shortcomings, it is working hard to improve the basic technology. As Dario Gil, Chief Operating Officer of IBM Research recently wrote in a blog post, the company published over 100 papers in just the past year. Here are the highlights of what is being developed now.
Go to just about any business conference and you will see a pundit on stage. He or she will show some company that failed and explain the silly mistakes that they made, then follow-up with a few basic rules to help you avoid those pitfalls and become super successful. You leave feeling confident, because it all seems so simple and easy.
Yet look a little closer and the illusion falls away. Very few of these pundits have ever run a successful business. At the same time, many of the executives that are shown to be so silly today, were hailed as visionaries of their time, often by the same pundits that ridicule them now. Some went on to great success later on.
The truth is that managing a successful enterprise is a very hard and complex thing to do well. It can’t be boiled down to a few simple rules. For every great enterprise that does things one way, you will find one that’s equally successful that goes about things very differently. So to succeed in the long term, we often need to ignore the myths pundits love to repeat.
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