Collaboration inspires innovation. It fuels growth and accelerates transformation. Yet with so many eyes focused on the turbulent economy, companies are losing sight of innovation’s value. As fear infuses corporate conversations, many are already using the uncertainty to justify putting innovation efforts on hold. They shift from finding new sources of growth to focusing on ways to shrink–what projects to mothball? Which budgets to cut? Which workers to eliminate? 

That short-sightedness is a mistake. History has shown us, again and again, that companies that move into head-down defensiveness miss out on the rich opportunities that downturns create. Competitors change course. Customer behavior shifts. Old needs fade, and new ones arise.  

Unless companies actively seek ways to boost innovation, collaborating throughout the organization to enrich new and better experiences, they’re missing out on transformative possibilities. Past recessions have given us innovative new companies and operating models, from the sharing economy to the crypto craze. And companies that look for new ways to grow, expand and transform consistently outperform the batten-down-the-hatches crowd. 

It takes collaborative muscle. Our recent research shows that companies can systematically build that strength. And those that do are more productive, finding relevant solutions that aren’t just novel but also high-impact and potentially transformative. 

Three places to begin right now are: 

1. Prioritize Customer Journeys, Not Functions or Departments 

Getting teams to work well beyond their silos isn’t a new problem. But it’s taken on outsized urgency as companies see themselves constantly out–flanked by category disruptors. Departmental boundaries serve a role but also thwart flexibility, speed and innovative potential. They slow transformation. And the bad news is that our research shows hybrid workplaces are even worse at collaborative efforts. 

In most companies, people are still primarily evaluated and compensated on functional and departmental key performance indicators. Their work is often not even in alignment with organizational goals. Because there’s no formal or systematic recognition for interdepartmental teams, efforts fizzle out. In addition, customers continue to face disjointed products and services. They feel like they’re dealing with one brand in customer service or marketing but a completely different one in operations or sales. 

Solving this problem doesn’t necessarily require sweeping organizational changes. Companies can move toward this type of change starting with small pods, giving them a clear focus and the agency to test and prove new collaborative models.  

The more touchpoints and complexity a product or service contains, the more critical this step becomes. Prophet recently worked with a large purpose-driven financial services company, which wanted to provide better tools, programs and support for its financial advisors. It also wanted to ensure that each new offer and channel conveyed its purpose, whether it was a young family looking for a first insurance policy or older consumers focused on estate planning. Using a “pods and squads” model, we helped the company build small cross-functional teams focused on core customer needs. Viewing that work within the context of the company helped create a model that it could scale throughout the organization and overcome internal friction by finding a more seamless approach for advisors and end customers. 

Where to Start:  

Think small, with concrete and specific projects. While the ultimate goal might be to organize cross-functional teams for each segment of the company’s audience, individual pilots are more practical than ripping out all the plumbing. Create goals and objectives, restructuring KPIs around jobs to be done. This works by creating small wins, fueling the collaborative mindset. 

2. Maximize Principles, Minimize Process 

Truly collaborative organizations–not surprisingly, the most innovative–are powered by principles. It’s not that they don’t have rules and decision matrices to govern how work is done–they do. It’s just that they have overriding principles and values that are more important. These principles provide clarity and direction in ways process guidelines can’t. 

Google’s 20% Project is one of the most famous examples and has led the company to such innovations as Gmail and Google Maps. Others have turned similar side-project principles into ventures like Slack and Twitter.  

When principles guide companies, they become social norms–more potent than rule-based ways to make decisions. But there’s an art to settling on the correct principles. Too often, they’re vague, benign and become something tacked up on the office wall, like “Be nice” or “Listen to others.” 

Fluffy platitudes aren’t enough – principles must provide enough depth and structure to feel relevant and contextual. They should inform people as they consider, “What’s right for this company? This brand? In this moment?” And they further a company’s purpose, emphasizing simplicity, adaptability and sustainability. 

When there are rules, people cooperate. When there are principles, they collaborate–but they must find common ground between themselves, their colleagues and the company. Prophet’s Collaboration Flywheel Model™️ helps leaders and organizations move toward an environment that is sustainable and delivers more impactful outcomes faster over time 

For example, our recent work with CVS Kidney Care focused on translating its “culture of courage” into innovations to help millions of people suffering from kidney disease. We established principles for how the group wanted to work as a team, how to communicate, and how to share information.  

Our teams supported CVS Kidney Care in translating those goals into principles required to completely disrupt the kidney-care universe. Using two-week agile sprints to break down silos, we helped it focus on patient, caregiver and provider priorities. The result? A truly transformed experience for kidney patients, delivering personalized, seamless care with less time away from home and work–and improved health outcomes. 

Where to Start:  

Focus on team autonomy and team charters. Positioning these as the first steps in building team dynamics often makes a natural step to developing or redefining the Employee Value Proposition. The EVP can –and should –distill these ideas, connecting principles to brand promise. This kind of collaboration leads to EVPs that intersect beautifully with an organization’s overall purpose and each part of the company, from experience and innovation teams to brand and culture specialists. 

3. Play with Prototypes, Not Presentations 

If pictures are worth a thousand words, prototypes are worth a thousand user stories. People learn best by doing, so involving people throughout the organization in play sessions that let them roll up their sleeves will lead to more innovative and effective solutions than yet another 90-page PowerPoint. Embedding a maker mentality stimulates constructive conversation about new ideas, which are often hard to share and explain. 

Put simply, doing uncovers more wisdom than thinking. 

And yes, we get that it’s challenging to convince a C-suite focused on cutbacks and retrenching to step up their commitment to play. But it’s a crucial ingredient. Play opens people’s minds, facilitating new ways of thinking and doing. We often use Lego’s Serious Play in workshops to help people better connect their brains’ right and left sides. This co-creation opens collaborators’ minds, giving them a better sense of what is and isn’t possible. 

Iteratively building–testing and playing in this way–gets organizations to more efficient learning and definition. 

Adults aren’t good at it. The famous Spaghetti Marshmallow Tower is one of our favorite examples. When given a marshmallow, some dry spaghetti, tape and the instructions to build the tallest tower in 18 minutes, those with MBAs perform miserably. They assume there is a single best approach. They over-analyze. They jockey for power. As they run out of time, they realize their towers can’t support a marshmallow. 

Those that do best? Kindergartners. Their sturdy towers are taller and more varied–precisely because they prototype every step of the way.  

This playfulness solves another problem: Not all people in organizations perceive collaboration in the same way. Enthusiasm, and the perception of effectiveness and value of collaboration, vary by department and across regions. Why not make it more enjoyable? 

We recently did a project for a healthcare company that wanted to extend its reach among small and mid-sized medical practices. These providers offer excellent care but often lack the marketing resources of large practices. 

Before we started building things, we developed a series of interactive prototypes. Many people from departments as diverse as risk, compliance, finance and operations had the chance to play with the different options. They poked and prodded, turning solutions upside down. 

When a roomful of people hears remarks like, “This approach is more engaging, but it would mean we’d have to change X or Y to implement it,” there’s less friction between departments–everyone can see why collaboration is better. It highlights what is most valuable to the end user and why. 

Where to Start:  

Rapid prototyping doesn’t have to be elaborate. It should begin with sketching on paper. It should be dirty, ugly and fun. Exercises like mash-up innovation, how-now-wow and bad-idea brainstorms can be light exercises to generate initial concepts. Service storyboards and mood boards help and so does writing a make-believe press release for a hypothetical launch. Anything that involves the team in different ways to communicate ideas is helpful. 

Check out our most recent research – Building Business Resilience Through Innovation

Launching successful digital products is extremely difficult. In fact, 95% of products that are introduced each year fail. The digital product landscape has become much more complex and specialized – from grocery delivery apps to customer service chatbots – digital products shape the way we live, connect and do business.

However, it takes more than a killer novel idea to make it rich and successful. The process of bringing the digital product to life, from an idea on paper to practical reality, with development, testing and refinement is daunting and where many fail. While you can never guarantee success (who knows when a once-in-a-lifetime pandemic will dramatically change the world and markets), you can greatly reduce the risk of product failure by taking a methodical and intentional approach to how you build digital products.

While each product is different, successful digital product creation requires an intentional chain of steps to validate. Through our tried, tested and validated iterative approach, we collaborate with clients across industries and verticals to define, launch and scale successful digital products in-market at pace. A digital product is not simply a mobile application or a website. We think of a digital product as having these four components:

(1) A clear user value proposition, that is (2) delivered through a value-generating business model and is (3) supported by an operational model that optimizes consistent delivery of services, which (4) customers and/or employees interact with through digital interface(s).

As you can see there is a lot necessary to get right in building digital products. So, where do you start?

The Six Stages of Digital Product Creation

At Prophet, we take an agile, insights-driven approach to helping our clients develop valuable and successful new products. As quickly as possible we move from assumptions to concrete knowledge fueled by market evidence around every element of the potential product. Our approach breaks the process into six specific stages:

1. Opportunity Definition
2. Rapid Experience Design
3. Alpha
4. Beta
5. Core
6. Retirement

Let’s dig into how these phases work in sequence to reduce risk and increase chances of success.

Stage One: Opportunity Definition

The opportunity stage is one of the most critical phases of digital product creation. Before even beginning to sketch a design or write a line of code, it all starts with defining a valuable opportunity asking, ‘what is the problem that needs to be solved, is it worth solving and does it match the strategic goals for the company?’  Often, businesses think they already understand the problem, and this is precisely why many new products fail.

Prophet’s Experience and Innovation experts bring a human-centered design approach to the process of defining and designing these opportunities. It will often start by uncovering and designing a compelling experience strategy for how a company can distinguish and deliver value for its customers in desirable ways across the entire customer journey. This perspective, along with our deep expertise in service design and business design, defines initial concepts and objectives that formalize compelling product opportunities aligned to our client’s business strategies.

Questions we focus on answering in this phase are: 

• Can we find valuable opportunities that match the strategic goals?
• Who is the target audience, and do they have a large enough problem in line with the client’s aspirations?

Stage Two: Rapid Experience Design

The goal of this next stage is to iteratively validate and refine the opportunity and assumptions with target customers to gain essential evidence, deep dive into their unmet needs and embed decisive learnings. This level of fast-paced evidence-driven learning can be eye-opening for clients used to longer bureaucratic cycles of decision making and analysis paralysis.

Through this rapid process, we quickly arrive at a minimum viable concept (MVC). There are many steps to get to a fully finessed product, but we need to start with a concept from which we can get quick iterative end-user feedback so that we can best understand the opportunity and a possible solution. In this way, the MVC lets us quickly and cheaply test while we are iteratively improving our understanding of the opportunity.

Questions we focus on answering in this phase are: 

• Can we design a solution for the target audience’s needs?
• Does our evidence indicate the solution can deliver on the target audience’s unmet or underserved needs?
• Can we define the functional capabilities necessary to deliver the solution?

Stage Three: Alpha

Armed with the best probable solution to the problem, the alpha phase is focused on the design, build and testing of the components of the product offering. Technical functionality, customer support, business models, content and data requirements enabled by strategic organizational coordination all become the levers we nimbly adjust to build the product offering. This requires frequent and consistent testing with target customers to refine every element of the product offering. Ultimately, the goal of this phase is to deliver the minimum functionality necessary to achieve product/market fit.

Questions we focus on answering in this phase are: 

• Is this a sustainable product people will consistently reuse and/or pay for?
• Does the evidence indicate that this solution would deliver differentiation and is there a viable business model?
• Is there the will/skill/bandwidth to deliver this minimal viable product (MVP)?
• Have the necessary people/process/data/capabilities been identified to deliver this solution at scale?

Stage Four: Beta

At the beta stage, the mythical product/market fit has been reached and now it’s about proving active customers would use the product consistently through a valuable business model. Groups that may have lightly engaged previously across marketing, sales, corporate development, legal, compliance, operations and others, now become fundamental to the success of the product and its go-to-market strategy. This is when we actively pursue approaches to grow the audience, reduce operational and customer acquisition costs and build new functionality to attract new customers without losing existing customers. It is an artful dance requiring sizeable bets to be placed on people, process, data and technology all while taking a measurable outcome-based focus on how to grow the business.

Questions we focus on answering in this phase are: 

• Can we build scalable and profitable business value?
• Does our evidence identify a scalable business model with a route to profitability?
• What is the go-to-market strategy for scaled commercialization?

Stage Five: Core

This fifth phase is the promised land, where all the work has paid off and we have a validated product in the market, delivering customer and business value.  At this stage, we no longer need proxy metrics for product success but can move to standard business accounting and processes to support sustained growth in the enterprise – the scaling phase.

Despite the effort that has been expended up until this point, this is still a very common point of failure for products as they transition from incubating a new product to delivering through existing business metrics and accounting. This is part of why it is important to bring the company along on this incubation process to avoid organ rejection and yet keep enough distance to give novel and innovative ideas the space to grow. This product can be sustained either through an existing business unit within the company or by creating a wholly new business unit.  Either direction will require the product team to adopt a new set of goals, focus and investment to scale in a competitive market while consistently delivering value for customers.

Questions we focus on answering in this phase are: 

• How do we structure the functional and operational capabilities within the company to scale this product successfully?
• Which capabilities require partnership with outside companies, where might new capabilities need to be built or companies acquired to fuel growth?

Stage Six: Retirement

All products and services companies deliver will, at some point, outlive their value to the business and/or their customers. The ability to objectively evaluate which products and business lines to employ focus and resources is critical to the longevity and stability of the company.  In this way, we need to understand not only when it has outlived its use, but how impactful it will be to sunset the product line to the brand, the bottom line, the current customers and the larger market.  Through these lenses, we can begin to understand whether we will need to plan a migration of customers to another product offering, spinoff or sell this product to remove it from the brand and company responsibility, or simply turn off the lights.

It is very difficult to deprecate something that has been such a part of your company’s history, but being a resilient business requires tough choices about capital and resource allocation for sustained growth.