Sunday, January 28, 2007

Understanding Innovation

An interesting article by Scott Page;

"To understand innovation, we must focus on diversity as well as ability. A scan of the intellectual landscape as well as of the policies of successful companies reveals a tacit understanding of diversity’s role in innovation. George Mason University professor Richard Florida’s work on the creative class, The Rise of the Creative Class and The Flight of the Creative Class, touches on the link between diversity and innovation, as do Yale University's Barry Nalebuff and Ian Ayres in their book and accompanying website Why Not? and whynot.net. Some of the innovation policies of Toyota Motor Corp. and Google Inc. illustrate a similar understanding that differences in the composition of their work forces boosts their bottom lines.

To appreciate the full potential of the power of difference, however, requires opening up the pumpkins. What we find inside people's heads is that people possess ways of seeing problems and solutions—oftentimes different perspectives depending on the kinds of people viewing particular problems and solutions. People's perspectives are accompanied by ways of searching for solutions to problems, something scientists call heuristics. When confronted with a problem, people encode their (often quite different) perspectives and then apply their particular heuristics to locate new, possibly better, solutions.

A person whom we think of as smart is generally someone who has lots of interesting perspectives and many effective heuristics. A smart person performs well, and often innovates, because of the many tools she possesses. Yet most of these tools won’t work on a given problem, which is why innovation is 99 percent perspiration. That's why Edison once claimed that he knew “a thousand ways not to make a light bulb.”

But how would several dozen Edisons, or several dozen Edisons from different social, racial and educational backgrounds, approach the making of a light bulb? To answer that question requires a fuller grasp of the pitfalls and idiosyncrasies of innovation and the power of diversity, which in turn requires a slight detour into theory.

First, for any problem there exists a perspective that makes it easy to grasp a solution, though that may mean waiting for a person as unique as Edison to come along. Second, across all problems no perspective or no heuristic is any better than any other. In plain English, any approach may be just as good as any other until it is tested.

Third, teams of problem solvers—viewed as bundles of perspectives and heuristics brought together to solve a particular problem—do better when the diversity of perspectives and heuristics is greater than the overall ability or talent of the team’s members. In other words, diverse teams outperform teams composed of the very best individuals. Diversity trumps ability.

This last result requires further explanation. A team, a group, or even an entire society innovates through iterative application of perspectives and heuristics. Individuals who perform best obviously possess good perspectives and heuristics (think Edison), yet 30 Edisons each may have 20 useful heuristics while collectively possessing a mere 25. In contrast, the diverse team’s individual members may on average only know 15 heuristics apiece but collectively know 40."

Related;
Creative Class blog
The Curse of the Creative Class
In Boardrooms and in Courtrooms, Diversity Makes a Difference
Cheating the Bagel Guy, Part II
Baby Einstein in the SOTU

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