[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:15.41,0:00:17.02,Default,,0000,0000,0000,,I have a confession to make.
Dialogue: 0,0:00:17.02,0:00:18.43,Default,,0000,0000,0000,,I'm a business professor
Dialogue: 0,0:00:18.43,0:00:20.96,Default,,0000,0000,0000,,whose ambition has been\Nto help people learn to lead.
Dialogue: 0,0:00:20.96,0:00:22.57,Default,,0000,0000,0000,,But recently, I've discovered
Dialogue: 0,0:00:22.57,0:00:25.24,Default,,0000,0000,0000,,that what many of us\Nthink of as great leadership
Dialogue: 0,0:00:25.24,0:00:28.52,Default,,0000,0000,0000,,does not work, when it comes\Nto leading innovation.
Dialogue: 0,0:00:28.52,0:00:29.92,Default,,0000,0000,0000,,I'm an ethnographer.
Dialogue: 0,0:00:29.92,0:00:31.64,Default,,0000,0000,0000,,I use the methods of anthropology
Dialogue: 0,0:00:31.64,0:00:34.22,Default,,0000,0000,0000,,to understand the questions\Nwhich I'm interested.
Dialogue: 0,0:00:34.22,0:00:36.38,Default,,0000,0000,0000,,So along with three co-conspirators,
Dialogue: 0,0:00:36.38,0:00:40.20,Default,,0000,0000,0000,,I spent nearly a decade observing\Nup close and personal,
Dialogue: 0,0:00:40.20,0:00:42.68,Default,,0000,0000,0000,,exceptional leaders of innovation.
Dialogue: 0,0:00:42.68,0:00:44.88,Default,,0000,0000,0000,,We studied 16 men and women,
Dialogue: 0,0:00:44.88,0:00:47.44,Default,,0000,0000,0000,,located in seven countries\Nacross the globe
Dialogue: 0,0:00:47.44,0:00:49.92,Default,,0000,0000,0000,,working in 12 different industries.
Dialogue: 0,0:00:49.92,0:00:53.48,Default,,0000,0000,0000,,In total, we spent hundreds of hours\Non the ground, on-site,
Dialogue: 0,0:00:53.48,0:00:56.20,Default,,0000,0000,0000,,watching these leaders in action.
Dialogue: 0,0:00:56.20,0:00:59.56,Default,,0000,0000,0000,,We ended up with pages\Nand pages of field notes
Dialogue: 0,0:00:59.56,0:01:03.45,Default,,0000,0000,0000,,that we analyzed, and looked\Nfor patterns in what our leaders did.
Dialogue: 0,0:01:03.76,0:01:04.98,Default,,0000,0000,0000,,The bottom line?
Dialogue: 0,0:01:04.98,0:01:08.14,Default,,0000,0000,0000,,If we want to build organizations\Nthat can innovate time and again,
Dialogue: 0,0:01:08.14,0:01:11.96,Default,,0000,0000,0000,,we must unlearn our conventional\Nnotions of leadership.
Dialogue: 0,0:01:11.96,0:01:14.56,Default,,0000,0000,0000,,Leading innovation is not\Nabout creating a vision,
Dialogue: 0,0:01:14.56,0:01:17.76,Default,,0000,0000,0000,,and inspiring others to execute it.
Dialogue: 0,0:01:17.76,0:01:19.72,Default,,0000,0000,0000,,But what do we mean by innovation?
Dialogue: 0,0:01:19.72,0:01:23.08,Default,,0000,0000,0000,,An innovation is anything\Nthat is both new and useful.
Dialogue: 0,0:01:23.08,0:01:24.84,Default,,0000,0000,0000,,It can be a product or service.
Dialogue: 0,0:01:24.84,0:01:27.52,Default,,0000,0000,0000,,It can be a process\Nor a way of organizing.
Dialogue: 0,0:01:27.52,0:01:30.36,Default,,0000,0000,0000,,It can be incremental,\Nor it can be breakthrough.
Dialogue: 0,0:01:30.36,0:01:33.12,Default,,0000,0000,0000,,We have a pretty inclusive definition.
Dialogue: 0,0:01:33.14,0:01:35.24,Default,,0000,0000,0000,,How many of you recognize this man?
Dialogue: 0,0:01:35.24,0:01:37.56,Default,,0000,0000,0000,,Put your hands up.
Dialogue: 0,0:01:38.42,0:01:41.20,Default,,0000,0000,0000,,Keep your hands up,\Nif you know who this is.
Dialogue: 0,0:01:45.32,0:01:47.60,Default,,0000,0000,0000,,How about these familiar faces?
Dialogue: 0,0:01:47.60,0:01:49.68,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:01:49.68,0:01:51.22,Default,,0000,0000,0000,,From your show of hands,
Dialogue: 0,0:01:51.22,0:01:53.77,Default,,0000,0000,0000,,it looks like many of you\Nhave seen the Pixar movie.
Dialogue: 0,0:01:53.77,0:01:56.24,Default,,0000,0000,0000,,But very few of you recognized Ed Catmull,
Dialogue: 0,0:01:56.24,0:01:58.88,Default,,0000,0000,0000,,the founder and CEO of Pixar
Dialogue: 0,0:01:58.88,0:02:01.80,Default,,0000,0000,0000,,- one of the companies\NI had the privilege of studying.
Dialogue: 0,0:02:01.80,0:02:04.48,Default,,0000,0000,0000,,My first visit to Pixar was in 2005,
Dialogue: 0,0:02:04.48,0:02:06.40,Default,,0000,0000,0000,,when they were working on 'Ratatouille',
Dialogue: 0,0:02:06.40,0:02:09.52,Default,,0000,0000,0000,,that provocative movie\Nabout a rat becoming a master chef.
Dialogue: 0,0:02:09.52,0:02:13.44,Default,,0000,0000,0000,,Computer generated movies\Nare really mainstream today,
Dialogue: 0,0:02:13.44,0:02:16.12,Default,,0000,0000,0000,,but it took Ed and his colleagues\Nnearly 20 years
Dialogue: 0,0:02:16.12,0:02:19.69,Default,,0000,0000,0000,,to create the first full length CG movie.
Dialogue: 0,0:02:19.96,0:02:23.24,Default,,0000,0000,0000,,In the 20 years hence,\Nthey've produced 14 movies.
Dialogue: 0,0:02:23.24,0:02:26.00,Default,,0000,0000,0000,,I was recently at Pixar,\Nand I'm here to tell you
Dialogue: 0,0:02:26.00,0:02:29.07,Default,,0000,0000,0000,,that number 15 is sure to be a winner.
Dialogue: 0,0:02:29.07,0:02:31.28,Default,,0000,0000,0000,,When many of us think\Nabout innovation though,
Dialogue: 0,0:02:31.28,0:02:34.92,Default,,0000,0000,0000,,we think about an Einstein\Nhaving an 'Aha!' moment.
Dialogue: 0,0:02:34.92,0:02:37.28,Default,,0000,0000,0000,,But we all know that's a myth.
Dialogue: 0,0:02:37.28,0:02:40.24,Default,,0000,0000,0000,,Innovation is not about solo genius,
Dialogue: 0,0:02:40.24,0:02:43.06,Default,,0000,0000,0000,,it's about collective genius.
Dialogue: 0,0:02:43.48,0:02:47.16,Default,,0000,0000,0000,,Let's think for a minute about\Nwhat it takes to make a Pixar movie:
Dialogue: 0,0:02:47.16,0:02:52.68,Default,,0000,0000,0000,,no solo genius, no flash of inspiration\Nproduces one of those movies.
Dialogue: 0,0:02:52.68,0:02:57.08,Default,,0000,0000,0000,,On the contrary, it takes about\N250 people four to five years,
Dialogue: 0,0:02:57.08,0:02:58.64,Default,,0000,0000,0000,,to make one of those movies.
Dialogue: 0,0:02:59.23,0:03:01.32,Default,,0000,0000,0000,,To help us understand the process,
Dialogue: 0,0:03:01.32,0:03:04.96,Default,,0000,0000,0000,,an individual in the studio\Ndrew a version of this picture.
Dialogue: 0,0:03:04.96,0:03:07.88,Default,,0000,0000,0000,,He did so reluctantly,\Nbecause it suggested
Dialogue: 0,0:03:07.88,0:03:10.84,Default,,0000,0000,0000,,that their process\Nwas a neat series of steps
Dialogue: 0,0:03:10.84,0:03:13.36,Default,,0000,0000,0000,,done by discreet groups.
Dialogue: 0,0:03:13.36,0:03:15.28,Default,,0000,0000,0000,,Even with all those arrows,
Dialogue: 0,0:03:15.28,0:03:19.68,Default,,0000,0000,0000,,he thought it failed to tell you\Njust how iterative, interrelated
Dialogue: 0,0:03:19.68,0:03:21.84,Default,,0000,0000,0000,,and, frankly, messy their process was.
Dialogue: 0,0:03:22.89,0:03:26.73,Default,,0000,0000,0000,,Throughout the making of a movie\Nat Pixar, the story evolves.
Dialogue: 0,0:03:28.28,0:03:29.52,Default,,0000,0000,0000,,So think about it.
Dialogue: 0,0:03:29.52,0:03:32.28,Default,,0000,0000,0000,,Some shots go through quickly.
Dialogue: 0,0:03:32.28,0:03:34.56,Default,,0000,0000,0000,,They don't all go through in order.
Dialogue: 0,0:03:34.56,0:03:37.20,Default,,0000,0000,0000,,It depends on how vexing\Nthe challenges are,
Dialogue: 0,0:03:37.20,0:03:41.52,Default,,0000,0000,0000,,that they come up with, when\Nthey're working on a particular scene.
Dialogue: 0,0:03:41.52,0:03:43.92,Default,,0000,0000,0000,,So if you think about that scene in 'Up'
Dialogue: 0,0:03:43.92,0:03:47.12,Default,,0000,0000,0000,,where the boy hands the piece\Nof chocolate to the bird,
Dialogue: 0,0:03:47.12,0:03:52.26,Default,,0000,0000,0000,,that 10 seconds took one animator\Nalmost six months to perfect.
Dialogue: 0,0:03:53.26,0:03:55.00,Default,,0000,0000,0000,,The other thing about a Pixar movie
Dialogue: 0,0:03:55.00,0:03:57.40,Default,,0000,0000,0000,,is that no part of the movie\Nis considered finished
Dialogue: 0,0:03:57.40,0:03:59.32,Default,,0000,0000,0000,,until the entire movie wraps.
Dialogue: 0,0:03:59.32,0:04:03.76,Default,,0000,0000,0000,,Partway through one production,\Nan animator drew a character
Dialogue: 0,0:04:03.76,0:04:07.96,Default,,0000,0000,0000,,with an arched eyebrow\Nthat suggested a mischievous side.
Dialogue: 0,0:04:07.96,0:04:10.77,Default,,0000,0000,0000,,When the director saw that drawing,\Nhe thought it was great.
Dialogue: 0,0:04:10.77,0:04:12.45,Default,,0000,0000,0000,,It was beautiful, but he said,
Dialogue: 0,0:04:12.45,0:04:15.02,Default,,0000,0000,0000,,"You've got to lose it,\Nit doesn't fit the character."
Dialogue: 0,0:04:15.02,0:04:17.48,Default,,0000,0000,0000,,Two weeks later,\Nthe director came back and said,
Dialogue: 0,0:04:17.48,0:04:20.07,Default,,0000,0000,0000,,"Let's put in those few seconds of film."
Dialogue: 0,0:04:20.37,0:04:23.05,Default,,0000,0000,0000,,Because that animator\Nwas allowed to share
Dialogue: 0,0:04:23.05,0:04:25.80,Default,,0000,0000,0000,,what we refer to as his slice of genius,
Dialogue: 0,0:04:25.80,0:04:29.12,Default,,0000,0000,0000,,he was able to help that director\Nre-conceive the character
Dialogue: 0,0:04:29.12,0:04:33.76,Default,,0000,0000,0000,,in a subtle but important way\Nthat improved the story.
Dialogue: 0,0:04:33.76,0:04:38.40,Default,,0000,0000,0000,,What we know is at the heart\Nof innovation is a paradox.
Dialogue: 0,0:04:38.40,0:04:42.08,Default,,0000,0000,0000,,You have to unleash the talents\Nand passions of many people
Dialogue: 0,0:04:42.08,0:04:46.74,Default,,0000,0000,0000,,and you have to harness them\Ninto a work that is actually useful.
Dialogue: 0,0:04:47.32,0:04:49.20,Default,,0000,0000,0000,,Innovation is a journey.
Dialogue: 0,0:04:49.20,0:04:51.88,Default,,0000,0000,0000,,It's a type of collaborative\Nproblem solving,
Dialogue: 0,0:04:51.88,0:04:54.64,Default,,0000,0000,0000,,usually among people\Nwho have different expertise
Dialogue: 0,0:04:54.64,0:04:56.88,Default,,0000,0000,0000,,and different points of view.
Dialogue: 0,0:04:56.88,0:05:00.36,Default,,0000,0000,0000,,Innovations rarely get created full blown.
Dialogue: 0,0:05:00.36,0:05:04.20,Default,,0000,0000,0000,,As many of you know, they are usually\Nthe result of trial and error.
Dialogue: 0,0:05:04.20,0:05:08.40,Default,,0000,0000,0000,,Lots of false starts,\Nmissteps, and mistakes.
Dialogue: 0,0:05:08.40,0:05:11.20,Default,,0000,0000,0000,,Innovative work can be very exhilarating,
Dialogue: 0,0:05:11.60,0:05:15.34,Default,,0000,0000,0000,,but it also can be really downright scary.
Dialogue: 0,0:05:17.12,0:05:22.08,Default,,0000,0000,0000,,So when we look at why it is\Nthat Pixar is able to do what it does,
Dialogue: 0,0:05:22.08,0:05:26.30,Default,,0000,0000,0000,,we have to ask ourselves,\Nwhat's going on here?
Dialogue: 0,0:05:26.84,0:05:29.80,Default,,0000,0000,0000,,For sure, history\Nand certainly Hollywood
Dialogue: 0,0:05:29.80,0:05:33.24,Default,,0000,0000,0000,,is full of star-studded teams\Nthat have failed.
Dialogue: 0,0:05:33.24,0:05:35.56,Default,,0000,0000,0000,,Most of those failures are attributed
Dialogue: 0,0:05:35.56,0:05:39.88,Default,,0000,0000,0000,,to too many stars or too many\Ncooks, if you will, in the kitchen.
Dialogue: 0,0:05:39.88,0:05:43.22,Default,,0000,0000,0000,,Why is it that Pixar,\Nwith all of its cooks,
Dialogue: 0,0:05:43.52,0:05:47.02,Default,,0000,0000,0000,,is able to be so successful\Ntime and time again?
Dialogue: 0,0:05:48.36,0:05:51.44,Default,,0000,0000,0000,,When we studied\Nan Islamic Bank in Dubai,
Dialogue: 0,0:05:51.44,0:05:55.59,Default,,0000,0000,0000,,or a luxury brand in Korea,\Nor a social enterprise in Africa,
Dialogue: 0,0:05:56.00,0:05:58.08,Default,,0000,0000,0000,,we found that innovative organizations
Dialogue: 0,0:05:58.08,0:06:00.88,Default,,0000,0000,0000,,are communities\Nthat have three capabilities
Dialogue: 0,0:06:01.26,0:06:05.96,Default,,0000,0000,0000,,- creative abrasion, creative agility,\Nand creative resolution.
Dialogue: 0,0:06:07.10,0:06:09.72,Default,,0000,0000,0000,,Creative abrasion is about being able
Dialogue: 0,0:06:09.72,0:06:13.16,Default,,0000,0000,0000,,to create a marketplace of ideas\Nthrough debate and discourse.
Dialogue: 0,0:06:13.16,0:06:16.08,Default,,0000,0000,0000,,In innovative organizations,\Nthey amplify differences,
Dialogue: 0,0:06:16.08,0:06:17.69,Default,,0000,0000,0000,,they don't minimize them.
Dialogue: 0,0:06:17.69,0:06:20.36,Default,,0000,0000,0000,,Creative abrasion\Nis not about brainstorming
Dialogue: 0,0:06:20.36,0:06:22.48,Default,,0000,0000,0000,,where people suspend their judgment.
Dialogue: 0,0:06:22.48,0:06:26.44,Default,,0000,0000,0000,,No, they know how to have very heated\Nbut constructive arguments
Dialogue: 0,0:06:26.44,0:06:29.44,Default,,0000,0000,0000,,to create a portfolio of alternatives.
Dialogue: 0,0:06:29.60,0:06:31.88,Default,,0000,0000,0000,,Individuals in innovative organizations
Dialogue: 0,0:06:31.88,0:06:35.33,Default,,0000,0000,0000,,learn how to inquire,\Nthey learn how to actively listen
Dialogue: 0,0:06:35.34,0:06:36.60,Default,,0000,0000,0000,,but - guess what?
Dialogue: 0,0:06:36.60,0:06:39.25,Default,,0000,0000,0000,,They also learn how to advocate\Nfor their point of view.
Dialogue: 0,0:06:39.25,0:06:42.88,Default,,0000,0000,0000,,They understand\Nthat innovation rarely happens
Dialogue: 0,0:06:42.88,0:06:45.68,Default,,0000,0000,0000,,unless you have both\Ndiversity and conflict.
Dialogue: 0,0:06:46.96,0:06:49.16,Default,,0000,0000,0000,,Creative agility is about being able
Dialogue: 0,0:06:49.16,0:06:51.76,Default,,0000,0000,0000,,to test and refine that portfolio of ideas
Dialogue: 0,0:06:51.76,0:06:55.12,Default,,0000,0000,0000,,through quick pursuit,\Nreflection, and adjustment.
Dialogue: 0,0:06:55.12,0:06:56.96,Default,,0000,0000,0000,,It's about discovery driven learning
Dialogue: 0,0:06:56.96,0:07:00.20,Default,,0000,0000,0000,,where you act as opposed to plan\Nyour way to the future.
Dialogue: 0,0:07:00.20,0:07:02.03,Default,,0000,0000,0000,,It's about design thinking
Dialogue: 0,0:07:02.03,0:07:04.12,Default,,0000,0000,0000,,where you have\Nthat interesting combination
Dialogue: 0,0:07:04.12,0:07:07.20,Default,,0000,0000,0000,,of the scientific method\Nand the artistic process.
Dialogue: 0,0:07:07.40,0:07:09.54,Default,,0000,0000,0000,,It's about running\Na series of experiments,
Dialogue: 0,0:07:09.54,0:07:11.67,Default,,0000,0000,0000,,and not a series of pilots.
Dialogue: 0,0:07:11.67,0:07:13.81,Default,,0000,0000,0000,,Experiments are usually about learning.
Dialogue: 0,0:07:13.81,0:07:15.36,Default,,0000,0000,0000,,When you get a negative outcome,
Dialogue: 0,0:07:15.36,0:07:18.40,Default,,0000,0000,0000,,you are still learning something\Nthat you need to know.
Dialogue: 0,0:07:18.40,0:07:20.96,Default,,0000,0000,0000,,Pilots are often about being right.
Dialogue: 0,0:07:20.96,0:07:25.32,Default,,0000,0000,0000,,When they don't work,\Nsomeone or something is to blame.
Dialogue: 0,0:07:25.32,0:07:28.28,Default,,0000,0000,0000,,The final capability\Nis creative resolution.
Dialogue: 0,0:07:28.28,0:07:30.56,Default,,0000,0000,0000,,This is about doing\Ndecision making in a way
Dialogue: 0,0:07:30.56,0:07:33.52,Default,,0000,0000,0000,,that you can combine\Neven opposable ideas
Dialogue: 0,0:07:33.52,0:07:36.04,Default,,0000,0000,0000,,to reconfigure them in new combinations
Dialogue: 0,0:07:36.04,0:07:39.32,Default,,0000,0000,0000,,to produce a solution\Nthat is new and useful.
Dialogue: 0,0:07:39.32,0:07:43.52,Default,,0000,0000,0000,,When you look at innovative organizations,\Nthey never go along to get along.
Dialogue: 0,0:07:43.52,0:07:45.20,Default,,0000,0000,0000,,They don't compromise.
Dialogue: 0,0:07:45.20,0:07:48.64,Default,,0000,0000,0000,,They don't let one group\Nor one individual dominate,
Dialogue: 0,0:07:48.64,0:07:52.53,Default,,0000,0000,0000,,even if it's the boss,\Neven if it's the expert.
Dialogue: 0,0:07:53.00,0:07:54.84,Default,,0000,0000,0000,,Instead, they have developed
Dialogue: 0,0:07:54.84,0:07:58.40,Default,,0000,0000,0000,,a rather patient and more inclusive\Ndecision-making process
Dialogue: 0,0:07:58.40,0:08:02.08,Default,,0000,0000,0000,,that allows for both end solutions\Nto arise
Dialogue: 0,0:08:02.08,0:08:04.20,Default,,0000,0000,0000,,and not simply either/or solutions.
Dialogue: 0,0:08:05.87,0:08:08.88,Default,,0000,0000,0000,,These three capabilities are why we see
Dialogue: 0,0:08:08.88,0:08:12.49,Default,,0000,0000,0000,,that Pixar is able to do what it does.
Dialogue: 0,0:08:13.07,0:08:15.32,Default,,0000,0000,0000,,Let me give you another example.
Dialogue: 0,0:08:15.32,0:08:18.10,Default,,0000,0000,0000,,And that example\Nis the infrastructure group of Google.
Dialogue: 0,0:08:18.97,0:08:21.22,Default,,0000,0000,0000,,The infrastructure group\Nof Google is the group
Dialogue: 0,0:08:21.22,0:08:25.20,Default,,0000,0000,0000,,that has to keep the website\Nup and running 24x7.
Dialogue: 0,0:08:25.20,0:08:28.44,Default,,0000,0000,0000,,When Google was about to introduce\NGmail and YouTube,
Dialogue: 0,0:08:28.44,0:08:31.76,Default,,0000,0000,0000,,they knew that their\Ndata storage system wasn't adequate.
Dialogue: 0,0:08:31.76,0:08:35.92,Default,,0000,0000,0000,,The head of the engineering group\Nand the infrastructure group at that time
Dialogue: 0,0:08:35.92,0:08:38.48,Default,,0000,0000,0000,,was a man named Bill Coughran.
Dialogue: 0,0:08:38.48,0:08:42.24,Default,,0000,0000,0000,,Bill and his leadership team,\Nwho he referred to as his brain trust,
Dialogue: 0,0:08:42.24,0:08:45.85,Default,,0000,0000,0000,,had to figure out what to do\Nabout this situation.
Dialogue: 0,0:08:46.12,0:08:47.96,Default,,0000,0000,0000,,They thought about it for a while.
Dialogue: 0,0:08:47.96,0:08:51.23,Default,,0000,0000,0000,,Instead of creating a group\Nto tackle this task,
Dialogue: 0,0:08:51.44,0:08:55.57,Default,,0000,0000,0000,,they decided to allow groups\Nto emerge spontaneously
Dialogue: 0,0:08:55.72,0:08:57.66,Default,,0000,0000,0000,,around different alternatives.
Dialogue: 0,0:08:57.76,0:09:00.00,Default,,0000,0000,0000,,Two groups coalesced.
Dialogue: 0,0:09:00.00,0:09:03.16,Default,,0000,0000,0000,,One became known as Big Table,
Dialogue: 0,0:09:03.16,0:09:06.68,Default,,0000,0000,0000,,the other became known\Nas Build it From Scratch.
Dialogue: 0,0:09:06.68,0:09:09.60,Default,,0000,0000,0000,,Big Table proposed\Nthat they build on the current system.
Dialogue: 0,0:09:09.60,0:09:13.96,Default,,0000,0000,0000,,Build it From Scratch proposed\Nthat it was time for a whole new system.
Dialogue: 0,0:09:13.96,0:09:17.76,Default,,0000,0000,0000,,Separately, these two teams\Nwere allowed to work full time
Dialogue: 0,0:09:17.76,0:09:19.80,Default,,0000,0000,0000,,on their particular approach.
Dialogue: 0,0:09:19.80,0:09:22.92,Default,,0000,0000,0000,,In Engineering Reviews,\NBill described his role
Dialogue: 0,0:09:22.92,0:09:27.70,Default,,0000,0000,0000,,as injecting honesty into the process\Nby driving debate.
Dialogue: 0,0:09:27.88,0:09:31.88,Default,,0000,0000,0000,,Early on, the teams were encouraged\Nto build prototypes so that they could
Dialogue: 0,0:09:31.88,0:09:35.44,Default,,0000,0000,0000,,"Bump them up against reality\Nand discover for themselves
Dialogue: 0,0:09:35.44,0:09:38.46,Default,,0000,0000,0000,,the strengths and weaknesses\Nof their particular approach."
Dialogue: 0,0:09:38.46,0:09:41.60,Default,,0000,0000,0000,,When Build it From Scratch shared\Ntheir prototype with the group
Dialogue: 0,0:09:41.60,0:09:44.49,Default,,0000,0000,0000,,whose beepers would have to go off\Nin the middle of the night
Dialogue: 0,0:09:44.49,0:09:46.51,Default,,0000,0000,0000,,if something went wrong with the website,
Dialogue: 0,0:09:46.51,0:09:51.12,Default,,0000,0000,0000,,they heard loud and clear about\Nthe limits of their particular design.
Dialogue: 0,0:09:51.12,0:09:54.04,Default,,0000,0000,0000,,As the need for a solution\Nbecame more urgent
Dialogue: 0,0:09:54.04,0:09:57.32,Default,,0000,0000,0000,,and as the data\Nor the evidence began to come in,
Dialogue: 0,0:09:57.32,0:10:00.60,Default,,0000,0000,0000,,it became pretty clear\Nthat the Big Table solution
Dialogue: 0,0:10:00.60,0:10:03.11,Default,,0000,0000,0000,,was the right one for the moment.
Dialogue: 0,0:10:03.11,0:10:05.20,Default,,0000,0000,0000,,So they selected that one.
Dialogue: 0,0:10:05.20,0:10:07.96,Default,,0000,0000,0000,,But to make sure\Nthat they did not lose the learning
Dialogue: 0,0:10:07.96,0:10:09.84,Default,,0000,0000,0000,,of the Build it From Scratch team,
Dialogue: 0,0:10:09.84,0:10:11.53,Default,,0000,0000,0000,,Bill asked two members of that team
Dialogue: 0,0:10:11.53,0:10:13.25,Default,,0000,0000,0000,,to join a new team that was emerging
Dialogue: 0,0:10:13.25,0:10:16.24,Default,,0000,0000,0000,,to work on the next generation system.
Dialogue: 0,0:10:16.24,0:10:19.83,Default,,0000,0000,0000,,This whole process took nearly two years,
Dialogue: 0,0:10:20.00,0:10:24.20,Default,,0000,0000,0000,,but I was told that they were\Nall working at breakneck speed.
Dialogue: 0,0:10:24.40,0:10:25.77,Default,,0000,0000,0000,,Early in that process,
Dialogue: 0,0:10:25.77,0:10:28.04,Default,,0000,0000,0000,,one of the engineers\Nhad gone to Bill and said,
Dialogue: 0,0:10:28.04,0:10:30.76,Default,,0000,0000,0000,,"We're all too busy\Nfor this inefficient system
Dialogue: 0,0:10:30.76,0:10:33.24,Default,,0000,0000,0000,,of running parallel experiments."
Dialogue: 0,0:10:33.24,0:10:36.32,Default,,0000,0000,0000,,But as the process unfolded,\Nhe began to understand
Dialogue: 0,0:10:36.32,0:10:40.24,Default,,0000,0000,0000,,the wisdom of allowing talented\Npeople to play out their passions.
Dialogue: 0,0:10:40.24,0:10:44.04,Default,,0000,0000,0000,,He admitted, "If you had forced us\Nto all be on one team,
Dialogue: 0,0:10:44.04,0:10:47.48,Default,,0000,0000,0000,,we might have focused on proving\Nwho was right, and winning,
Dialogue: 0,0:10:47.48,0:10:49.72,Default,,0000,0000,0000,,and not on learning and discovering
Dialogue: 0,0:10:49.72,0:10:53.00,Default,,0000,0000,0000,,what was the best answer for Google."
Dialogue: 0,0:10:53.00,0:10:56.56,Default,,0000,0000,0000,,Why is it that Pixar and Google\Nare able to innovate time and again?
Dialogue: 0,0:10:56.56,0:11:00.23,Default,,0000,0000,0000,,It's because they have mastered\Nthe capabilities required for that.
Dialogue: 0,0:11:00.23,0:11:02.62,Default,,0000,0000,0000,,They know how to do\Ncollaborative problem solving,
Dialogue: 0,0:11:02.62,0:11:04.76,Default,,0000,0000,0000,,they know how to do\Ndiscovery driven learning,
Dialogue: 0,0:11:04.76,0:11:07.46,Default,,0000,0000,0000,,and they know how to do\Nintegrated decision making.
Dialogue: 0,0:11:07.46,0:11:10.68,Default,,0000,0000,0000,,Some of you may be sitting there\Nand saying to yourselves right now,
Dialogue: 0,0:11:10.68,0:11:13.52,Default,,0000,0000,0000,,"We don't know how to do\Nthose things in my organization."
Dialogue: 0,0:11:13.52,0:11:16.12,Default,,0000,0000,0000,,So why do they know how to\Ndo those things at Pixar,
Dialogue: 0,0:11:16.12,0:11:19.56,Default,,0000,0000,0000,,and why do they know how to\Ndo those things at Google?
Dialogue: 0,0:11:19.56,0:11:22.08,Default,,0000,0000,0000,,When many of the people\Nthat worked for Bill told us,
Dialogue: 0,0:11:22.08,0:11:27.75,Default,,0000,0000,0000,,on their opinion, Bill was one\Nof the finest leaders in Silicon Valley.
Dialogue: 0,0:11:28.48,0:11:31.79,Default,,0000,0000,0000,,We completely agreed,\Nthe man is a genius.
Dialogue: 0,0:11:32.65,0:11:35.56,Default,,0000,0000,0000,,Leadership is the secret sauce.
Dialogue: 0,0:11:35.56,0:11:37.96,Default,,0000,0000,0000,,But it's a different kind of leadership,
Dialogue: 0,0:11:37.96,0:11:39.96,Default,,0000,0000,0000,,not the kind many of us think about
Dialogue: 0,0:11:39.96,0:11:43.05,Default,,0000,0000,0000,,when we think about great leadership.
Dialogue: 0,0:11:43.28,0:11:45.96,Default,,0000,0000,0000,,One of the leaders I met with\Nearly on, said to me,
Dialogue: 0,0:11:45.96,0:11:49.12,Default,,0000,0000,0000,,"Linda, I don't read books on leadership.
Dialogue: 0,0:11:49.12,0:11:51.77,Default,,0000,0000,0000,,All they do is make me feel bad.
Dialogue: 0,0:11:52.04,0:11:55.00,Default,,0000,0000,0000,,In the first chapter they say\NI'm supposed to create a vision.
Dialogue: 0,0:11:55.00,0:11:59.24,Default,,0000,0000,0000,,But if I'm trying to do something\Nthat's truly new, I have no answers.
Dialogue: 0,0:11:59.24,0:12:01.24,Default,,0000,0000,0000,,I don't know what direction we're going in
Dialogue: 0,0:12:01.24,0:12:05.04,Default,,0000,0000,0000,,and I'm not even sure I know\Nhow to figure out how to get there."
Dialogue: 0,0:12:05.04,0:12:07.44,Default,,0000,0000,0000,,For sure, there are times\Nwhen visionary leadership
Dialogue: 0,0:12:07.44,0:12:09.48,Default,,0000,0000,0000,,is exactly what is needed.
Dialogue: 0,0:12:09.48,0:12:12.88,Default,,0000,0000,0000,,But if we want to build organizations\Nthat can innovate time and again,
Dialogue: 0,0:12:12.88,0:12:17.00,Default,,0000,0000,0000,,we must recast our understanding\Nof what leadership is about.
Dialogue: 0,0:12:17.00,0:12:20.72,Default,,0000,0000,0000,,Leading innovation\Nis about creating the space
Dialogue: 0,0:12:20.72,0:12:23.92,Default,,0000,0000,0000,,where people are willing and able\Nto do the hard work
Dialogue: 0,0:12:23.92,0:12:26.40,Default,,0000,0000,0000,,of innovative problem solving.
Dialogue: 0,0:12:27.92,0:12:30.24,Default,,0000,0000,0000,,At this point, some of you\Nmay be wondering,
Dialogue: 0,0:12:30.24,0:12:32.56,Default,,0000,0000,0000,,what does that leadership\Nreally look like?
Dialogue: 0,0:12:32.56,0:12:37.02,Default,,0000,0000,0000,,At Pixar, they understand\Nthat innovation takes a village.
Dialogue: 0,0:12:37.48,0:12:40.92,Default,,0000,0000,0000,,The leaders focus on building\Na sense of community
Dialogue: 0,0:12:40.92,0:12:43.20,Default,,0000,0000,0000,,and building those three capabilities.
Dialogue: 0,0:12:43.20,0:12:45.48,Default,,0000,0000,0000,,How do they define leadership?
Dialogue: 0,0:12:45.48,0:12:47.76,Default,,0000,0000,0000,,They say leadership\Nis about creating a world
Dialogue: 0,0:12:47.76,0:12:49.72,Default,,0000,0000,0000,,to which people want to belong.
Dialogue: 0,0:12:49.72,0:12:52.36,Default,,0000,0000,0000,,What kind of world do people\Nwant to belong in at Pixar?
Dialogue: 0,0:12:52.36,0:12:54.44,Default,,0000,0000,0000,,A world where you're living\Nat the frontier.
Dialogue: 0,0:12:54.44,0:12:56.76,Default,,0000,0000,0000,,What do they focus their time on?
Dialogue: 0,0:12:56.76,0:12:58.23,Default,,0000,0000,0000,,Not on creating a vision.
Dialogue: 0,0:12:58.23,0:13:00.36,Default,,0000,0000,0000,,Instead they spend\Ntheir time thinking about,
Dialogue: 0,0:13:00.36,0:13:05.20,Default,,0000,0000,0000,,how do we design a studio that has\Na sensibility of a public square
Dialogue: 0,0:13:05.20,0:13:07.36,Default,,0000,0000,0000,,so that people will interact?
Dialogue: 0,0:13:07.36,0:13:11.03,Default,,0000,0000,0000,,Let's put in a policy that anyone,\Nno matter what their level or role,
Dialogue: 0,0:13:11.03,0:13:12.96,Default,,0000,0000,0000,,is allowed to give notes to the director
Dialogue: 0,0:13:12.96,0:13:15.52,Default,,0000,0000,0000,,about how they feel\Nabout a particular film.
Dialogue: 0,0:13:15.52,0:13:17.52,Default,,0000,0000,0000,,You know what,\Nwhat can we do to make sure
Dialogue: 0,0:13:17.52,0:13:18.96,Default,,0000,0000,0000,,that all the disruptors,
Dialogue: 0,0:13:18.96,0:13:21.44,Default,,0000,0000,0000,,all the minority voices\Nin this organization
Dialogue: 0,0:13:21.44,0:13:23.40,Default,,0000,0000,0000,,speak up and are heard?
Dialogue: 0,0:13:23.40,0:13:27.21,Default,,0000,0000,0000,,And, finally, let's bestow credit\Nin a very generous way.
Dialogue: 0,0:13:27.21,0:13:30.32,Default,,0000,0000,0000,,I don't know if you've ever looked\Nat the credits of a Pixar movie,
Dialogue: 0,0:13:30.32,0:13:33.48,Default,,0000,0000,0000,,but the babies born during\Na production are listed there.
Dialogue: 0,0:13:33.48,0:13:34.88,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,0:13:34.88,0:13:37.88,Default,,0000,0000,0000,,How did Bill think about\Nwhat his role was?
Dialogue: 0,0:13:37.88,0:13:41.36,Default,,0000,0000,0000,,Bill said, "I lead\Na volunteer organization.
Dialogue: 0,0:13:41.36,0:13:45.12,Default,,0000,0000,0000,,Talented people\Ndon't want to follow me anywhere.
Dialogue: 0,0:13:45.12,0:13:48.68,Default,,0000,0000,0000,,They want to co-create\Nwith me the future.
Dialogue: 0,0:13:48.68,0:13:51.16,Default,,0000,0000,0000,,My job is to nurture the bottom up
Dialogue: 0,0:13:51.16,0:13:54.52,Default,,0000,0000,0000,,and not let it degenerate into chaos."
Dialogue: 0,0:13:54.52,0:13:55.84,Default,,0000,0000,0000,,How did he see his role?
Dialogue: 0,0:13:55.84,0:13:58.64,Default,,0000,0000,0000,,I'm a role model,\NI'm a human glue,
Dialogue: 0,0:13:58.64,0:14:01.28,Default,,0000,0000,0000,,I'm a connector,\NI'm an aggregator of viewpoints.
Dialogue: 0,0:14:01.28,0:14:03.52,Default,,0000,0000,0000,,I'm never a dictator of viewpoints.
Dialogue: 0,0:14:03.52,0:14:05.64,Default,,0000,0000,0000,,Advice about how you exercise the role,
Dialogue: 0,0:14:05.64,0:14:08.60,Default,,0000,0000,0000,,hire people who argue with you.
Dialogue: 0,0:14:08.60,0:14:12.59,Default,,0000,0000,0000,,Sometimes it's best to be\Ndeliberately fuzzy and vague.
Dialogue: 0,0:14:14.22,0:14:16.32,Default,,0000,0000,0000,,Some of you may be wondering now,
Dialogue: 0,0:14:16.32,0:14:17.84,Default,,0000,0000,0000,,what are these people thinking?
Dialogue: 0,0:14:17.84,0:14:19.30,Default,,0000,0000,0000,,They are thinking,
Dialogue: 0,0:14:19.30,0:14:21.84,Default,,0000,0000,0000,,I'm not the visionary,\NI'm the social architect.
Dialogue: 0,0:14:21.84,0:14:25.44,Default,,0000,0000,0000,,I'm creating the space\Nwhere people are willing and able
Dialogue: 0,0:14:25.44,0:14:28.79,Default,,0000,0000,0000,,to share and combine\Ntheir talents and passions.
Dialogue: 0,0:14:28.79,0:14:31.92,Default,,0000,0000,0000,,If some of you are worrying now\Nthat you don't work at a Pixar,
Dialogue: 0,0:14:31.92,0:14:33.56,Default,,0000,0000,0000,,or you don't work at a Google,
Dialogue: 0,0:14:33.56,0:14:36.00,Default,,0000,0000,0000,,I want to tell you there's still hope.
Dialogue: 0,0:14:36.00,0:14:38.00,Default,,0000,0000,0000,,We've studied many organizations
Dialogue: 0,0:14:38.00,0:14:40.96,Default,,0000,0000,0000,,that were not organization\Nyou'd think of as ones
Dialogue: 0,0:14:40.96,0:14:43.36,Default,,0000,0000,0000,,where a lot of innovation happens.
Dialogue: 0,0:14:43.36,0:14:46.28,Default,,0000,0000,0000,,We studied a general counsel\Nin a pharmaceutical company
Dialogue: 0,0:14:46.28,0:14:49.00,Default,,0000,0000,0000,,who had to figure out how\Nto get the outside lawyers,
Dialogue: 0,0:14:49.00,0:14:51.76,Default,,0000,0000,0000,,19 competitors,\Nto collaborate and innovate.
Dialogue: 0,0:14:51.76,0:14:55.61,Default,,0000,0000,0000,,We studied the head of marketing\Nat a German automaker
Dialogue: 0,0:14:55.61,0:14:57.32,Default,,0000,0000,0000,,where, fundamentally, they believed
Dialogue: 0,0:14:57.32,0:14:59.88,Default,,0000,0000,0000,,that it was the design\Nengineers, not the marketeers
Dialogue: 0,0:14:59.88,0:15:02.16,Default,,0000,0000,0000,,who were allowed to be innovative.
Dialogue: 0,0:15:02.16,0:15:06.12,Default,,0000,0000,0000,,We also studied Vineet Nayar\Nat HCL technologies,
Dialogue: 0,0:15:06.12,0:15:08.18,Default,,0000,0000,0000,,an Indian outsourcing company.
Dialogue: 0,0:15:08.18,0:15:09.73,Default,,0000,0000,0000,,When we met Vineet,
Dialogue: 0,0:15:09.73,0:15:13.08,Default,,0000,0000,0000,,his company was about,\Nin his words, to become irrelevant.
Dialogue: 0,0:15:13.08,0:15:15.40,Default,,0000,0000,0000,,We watched as he turned that company
Dialogue: 0,0:15:15.40,0:15:19.15,Default,,0000,0000,0000,,into a global dynamo of IT innovation.
Dialogue: 0,0:15:20.00,0:15:22.72,Default,,0000,0000,0000,,At HCL technologies,\Nlike at many companies,
Dialogue: 0,0:15:22.72,0:15:26.72,Default,,0000,0000,0000,,the leaders had learned to see\Ntheir role as setting direction
Dialogue: 0,0:15:26.72,0:15:29.31,Default,,0000,0000,0000,,and making sure\Nthat no one deviated from it.
Dialogue: 0,0:15:30.40,0:15:34.32,Default,,0000,0000,0000,,What he did is tell them\Nit was time for them
Dialogue: 0,0:15:34.32,0:15:37.74,Default,,0000,0000,0000,,to think about rethinking\Nwhat they were supposed to do.
Dialogue: 0,0:15:37.74,0:15:40.60,Default,,0000,0000,0000,,Because what was happening\Nis that everybody was looking up
Dialogue: 0,0:15:40.60,0:15:43.76,Default,,0000,0000,0000,,and you weren't seeing\Nthe bottom-up innovation
Dialogue: 0,0:15:43.76,0:15:46.12,Default,,0000,0000,0000,,we saw at Pixar or Google.
Dialogue: 0,0:15:46.12,0:15:47.68,Default,,0000,0000,0000,,So they began to work on that.
Dialogue: 0,0:15:47.68,0:15:51.84,Default,,0000,0000,0000,,They stopped giving answers,\Nthey stopped trying to provide solutions.
Dialogue: 0,0:15:51.84,0:15:54.68,Default,,0000,0000,0000,,Instead, what they did\Nis they began to see
Dialogue: 0,0:15:54.68,0:15:58.56,Default,,0000,0000,0000,,the people at the bottom\Nof the pyramid, the young sparks,
Dialogue: 0,0:15:58.56,0:16:01.03,Default,,0000,0000,0000,,the people who were closest\Nto the customers,
Dialogue: 0,0:16:01.03,0:16:03.58,Default,,0000,0000,0000,,as the source of innovation.
Dialogue: 0,0:16:03.58,0:16:06.71,Default,,0000,0000,0000,,They began to transfer\Nthe organization's growth
Dialogue: 0,0:16:06.71,0:16:08.24,Default,,0000,0000,0000,,to that level.
Dialogue: 0,0:16:10.13,0:16:13.88,Default,,0000,0000,0000,,In Vineet's language,\Nthis was about inverting the pyramid
Dialogue: 0,0:16:13.88,0:16:16.92,Default,,0000,0000,0000,,so that you could unleash\Nthe power of the many
Dialogue: 0,0:16:16.92,0:16:19.84,Default,,0000,0000,0000,,by loosening the strength\Nhold of the few
Dialogue: 0,0:16:19.84,0:16:22.96,Default,,0000,0000,0000,,and increase the quality\Nand the speed of innovation
Dialogue: 0,0:16:22.96,0:16:25.53,Default,,0000,0000,0000,,that was happening every day.
Dialogue: 0,0:16:26.60,0:16:30.56,Default,,0000,0000,0000,,For sure, Vineet\Nand all the other leaders that we studied
Dialogue: 0,0:16:30.56,0:16:33.25,Default,,0000,0000,0000,,were in fact visionaries.
Dialogue: 0,0:16:33.96,0:16:38.03,Default,,0000,0000,0000,,For sure, they understood\Nthat that was not their role.
Dialogue: 0,0:16:38.32,0:16:43.24,Default,,0000,0000,0000,,I don't think it is accidental\Nthat many of you did not recognize Ed.
Dialogue: 0,0:16:43.24,0:16:47.92,Default,,0000,0000,0000,,Because Ed, like Vineet,\Nunderstands that our role as leaders
Dialogue: 0,0:16:47.92,0:16:51.55,Default,,0000,0000,0000,,is to set the stage, not perform on it.
Dialogue: 0,0:16:52.08,0:16:54.96,Default,,0000,0000,0000,,If we want to invent a better future,
Dialogue: 0,0:16:54.96,0:16:58.24,Default,,0000,0000,0000,,and I suspect that's why\Nmany of us are here,
Dialogue: 0,0:16:58.24,0:17:01.69,Default,,0000,0000,0000,,then we need to reimagine our task.
Dialogue: 0,0:17:02.12,0:17:04.80,Default,,0000,0000,0000,,Our task is to create the space
Dialogue: 0,0:17:04.80,0:17:07.44,Default,,0000,0000,0000,,where everybody's slices of genius
Dialogue: 0,0:17:08.70,0:17:11.66,Default,,0000,0000,0000,,can be unleashed and harnessed,
Dialogue: 0,0:17:11.96,0:17:14.72,Default,,0000,0000,0000,,and turned into works\Nof collective genius.
Dialogue: 0,0:17:15.71,0:17:16.79,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,0:17:16.79,0:17:18.76,Default,,0000,0000,0000,,(Applause)