Good Afternoon Innovation Pioneers I just added a video clip from the Deming Video Library to the Innovation Engineering courses.
The clip features systems expert Russel Ackoff talking with Dr. W. Edwards Deming. The two worked together many years before at the Census Bureau.
In the video segment - Dr. Ackoff say's "Peter Drucker once said it very nicely. He said, we spend all our time on trying to do things right. But that's the wrong thing. We ought to be worried about doing the right things."
Ackoff goes on to explain, "There's a very fundamental difference. One is efficiency. The other is effectiveness. We should be concerned with effectiveness but we are preoccupied with efficiency."
Effectiveness versus efficiency is the primary reason WHY you need to innovate. More efficiently selling a product or service that you can't hold price on because customers don't see it as meaningfully unique will not save your company.
Effectiveness is using innovation to transform your existing offering such that customers see your services or product offerings as providing them with something they can't get anywhere else. This is a sustainable success system.
Our definition of innovation is simple - Meaningfully Unique. This means that customers see such value in our service or product that they are willing to pay more money to acquire it. The value of the offering to them is greater than the value of the money in their bank account.
By Meaningful we mean triple meaningful....1) Meaningful to Customers, 2) Meaningful to the Organization and 3) Meaningful to them personally.
When you focus on ideas that are triple meaningful - you are then doing as Drucker, Ackoff and Deming advise - you are doing the RIGHT THINGS.
Or as Innovation Engineering students irreverently say...it means...
"You are doing cool SHIT that matters!"