If/Then - So Crazy, It Might Just Work: How to Foster Innovation That Will Change an Organization, with Bill Barnett

So Crazy, It Might Just Work: How to Foster Innovation That Will Change an Organization, with Bill Barnett

02/21/24 • 24 min

If we want to seriously address the climate crisis, then we need to encourage foolish business ideas.

When it comes to seemingly impossible problems like the climate crisis, Professor William Barnett says we need to reach for equally impossible solutions — ideas so crazy, they just might work. “Foolishness,” he says, “is the price of genius.”

A professor of organizational behavior at Stanford Graduate School of Business and a professor at the Stanford Doerr School of Sustainability, Barnett is equally interested in how organizations produce innovation. According to him, organizations need to embrace failure as a stepping stone to big breakthroughs and create cultures that encourage unconventional and even "foolish" ideas. “Ideas might well be foolish, but if they're right, they're going to be genius. Organizations that create lots of foolishness also create a lot of genius.”

In this episode of If/Then: Business, Leadership, Society, Barnett unpacks how farfetched thinking could be the key to addressing climate change, and how organizations can foster the cultures necessary to fail forward and find innovative solutions.

Key Takeaways:

Failure is a stepping stone to innovation: Each unsuccessful attempt provides an opportunity to learn, grow, and redirect.
Foolishness is the price of genius: Organizations need to promote non-consensus thinking and risk-taking, even if that means pursuing ideas that initially seem "foolish."
Minimize the effects of failure: Give crazy ideas a shot, but do so at a small scale to keep failures quick and inexpensive.

More Resources:

William P. Barnett, The Thomas M. Siebel Professor of Business Leadership, Strategy, and Organizations at Stanford Graduate School of Business and professor at the Stanford Doerr School of Sustainability.

The Red Queen Among Organizations: How Competitiveness Evolves, by William P. Barnett
Voices of Stanford GSB faculty, William P. Barnett

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

If we want to seriously address the climate crisis, then we need to encourage foolish business ideas.

Key Takeaways:

Failure is a stepping stone to innovation: Each unsuccessful attempt provides an opportunity to learn, grow, and redirect.
Foolishness is the price of genius: Organizations need to promote non-consensus thinking and risk-taking, even if that means pursuing ideas that initially seem "foolish."
Minimize the effects of failure: Give crazy ideas a shot, but do so at a small scale to keep failures quick and inexpensive.

More Resources:

The Red Queen Among Organizations: How Competitiveness Evolves, by William P. Barnett
Voices of Stanford GSB faculty, William P. Barnett

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Previous Episode

You're In Control: How and When AI Can Be a Powerful Decision-Making Tool, with Kuang Xu

If we can manage our emotions about AI, then it can be a powerful decision-making tool.

Artificial intelligence’s surge in power and accessibility has inspired polarized reactions. Some people are flocking to the technology with feverish excitement. Others can’t stay far enough away. Yet according to Kuang Xu, both of these responses might be the wrong ones.

"When people hear ‘AI,’ their brain kind of shuts down,” says Kuang, an associate professor of operations, information, and technology at Stanford Graduate School of Business. Whether someone feels exhilarated by the possibilities of AI or terrified by its uncertain impact, Kuang says these emotionally charged reactions are like “a fight or flight response,” inhibiting our ability to make good decisions.

Yet when implemented in strategic ways, AI can enable leaders to make decisions that are driven by data. With just a few simple lines of code, data becomes a powerful tool for businesses to leverage. “What decision can you change if you had the information?” Kuang asks. “Remember, at the moment, AI or data science is all about information. At the end of the day, even in the best case, you have to take that information and do something about it.”

It’s clear that artificial intelligence will integrate into every industry. Yet to harness its power, leaders need to make an emotional shift. They must, as this episode of If/Then: Business, Leadership, Society explores, move away from the fear of the change AI will bring, and instead see AI for the job it can do: provide data so leaders can make more informed decisions.

Key Takeaways:

Effects of emotional stress: Emotional stress clouds our decision making about how we can best implement this tool.
AI is a Tool, not a god: Organizations need to rise above the narrative that AI is an all-knowing oracle and reframe it as a tool for targeted decision-making.
Think of AI as an intern: The tool can carry out tasks, but we still want to double check its work.

More Resources:

Kuang Xu, Associate Professor of Operations, Information & Technology

Stanford GSB stories featuring Kuang Xu:

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society. Each episode features an interview with a Stanford GSB faculty member.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Next Episode

The Brain Gain: The Impact of Immigration on American Innovation, with Rebecca Diamond

Immigrants’ contributions to America include culture, cuisine — and groundbreaking ideas. “No one is that surprised that immigrants play a disproportionate role in innovation,” says Rebecca Diamond, a professor of economics at Stanford Graduate School of Business. But, she notes, “Innovation in itself is an elusive thing to measure.” By studying patents, Diamond has revealed new insights into the important role immigrants play in fueling innovation. Diamond explains more in this episode of If/Then: Business, Leadership, Society.

Today, foreign-born Americans make up around 10% of the population of the United States. Yet, as Diamond found in her research, immigrants are responsible for 24% of recent U.S. patents. What’s more, she explains, these immigrant inventors serve as catalysts for their native-born collaborators, pushing them to be more creative. Altogether, Diamond says, “You find that 36% of all innovation can be attributed to immigrants.”

“That’s a big number,” Diamond says. This finding not only highlights immigrants’ outsize contribution to the U.S. economy but also provides a glimpse into the teamwork that generates new ideas. “The way to have successful innovation is not to just put smart people in a room by themselves and tell ’em to think hard,” she says. “It’s to collaborate and work together and create new ideas through the synergies of their knowledge.”

Immigration is a contentious political issue. Diamond notes that “any policies that would limit or lower the number of immigrants coming to the U.S. for these super high-skill innovative jobs would have a large effect on future innovation.” As this episode of If/Then explores, for America to remain a source of new ideas that contribute to economic growth and technological progress, we’ve got to understand the vital link between immigration and innovation.

Key Takeaways:

Outsize impact: Immigrant inventors register more patents than native-born Americans. While only 10% of U.S. citizens are immigrants, immigrants are responsible for 24% of recent patents.
The collaboration connection: Immigrants positively influence the productivity of their American collaborators.
The global knowledge network: Immigrants are more likely to cite foreign patents and are more likely to be cited by patents produced abroad.

More Resources:

Rebecca Diamond is the Class of 1988 Professor of Economics at Stanford Graduate School of Business.

If/Then is a podcast from Stanford Graduate School of Business that examines research findings that can help us navigate the complex issues we face in business, leadership, and society.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.