Programming your organization for loonshots

Here’s an an idea for a formula for figuring out how much innovation an organization will do. I never know how good math is for this kind of thing, but it adds structure to programming an organization to be innovative, rather than career advancement seeking:

In organizations, the competing forces can be described as “stake in outcome” versus “perks of rank.” When employees feel they have more to gain from the group’s collective output, that’s where they invest their energy. When they feel their greatest rewards come from moving up the corporate ladder, they stop taking chances on risky new ideas whose failure could harm their careers.

Also, getting people to do new things by manipulating their desire to try new “tricks”:

Companies usually invest in training employees with the goal of better products or higher sales. Send a device designer to a technical workshop, and you’ll probably get better pacemakers. Send a salesperson to a speaking coach, and his pitch delivery might improve. But there’s another benefit: A designer who has learned new techniques will want to practice them. Training encourages employees to spend more time on projects, which reduces time spent on lobbying and networking.

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