PALM DESERT, Calif.–What are the “five obsessions of innovators?” They are the keys to credit unions using creativity to drive growth and success and avoid the fate of the mapmakers of the world, according to one person.
Josh Linkner, who has started five companies and raised more than $250-million in venture capital, while authoring three best-selling books along the way, shared those five obsessions with credit unions at the California and Nevada leagues’ REACH Conference here.
Saying he was seeking to demystify the creative process, Linkner said, “Innovation isn’t for an elite few, it can apply to all of us to drive growth, creativity and transformation.”
Linkner said in any business wins and losses often come in tiebreaker situations. “And in tiebreaker situations, a little layer of creativity can make all the difference in the world. Creativity is our natural state; it’s how we’re hardwired. The problem is through schools and parents we have lost touch with that, we have left it to atrophy.”
No Longer on the Map
Linkner asked his audience to name the number one map company just 20 years ago, and the REACH attendees successfully responded Rand McNally, Linkner noted that same company was also number-one 120 years ago.
“And then what happened? The same thing that has happened to so many organizations--they became intoxicated by their own success. They failed to innovate.”
Linkner cautioned credit unions they cannot rely on models of the past and expect the same results.
“Here’s my suggestion: No matter the title on your business card, we need to adopt a second title: disruptor,” he said. “Unfortunately, there is a myth that some of us are creative and others just aren’t. You as a human being are a creative person. But they are skills that need to be harnessed and put to use.”
The Five Obsessions
Linkner said he has been in business for 27 years, has sat through 3,100 entrepreneurial pitches, has invested in 110 start-ups (both winners and failures), and has served on 83 corporate boards. Out of all that, he said he has seen trends and lesson that he calls the “five obsessions of innovators.”
According to Linkner, the five obsessions are:
Curiousity. “Most of us make decisions on a daily basis based on what worked or didn’t work in the past. Before instinctively making a decision, pause to ask more questions, and ideally questions that start with why, what if and why not. It forces you to challenge conventional wisdom.”
Defy Tradition. “I say this with great respect; there are many traditions in life that should be upheld. But traditions in our professional lives can be deadly. Let’s examine traditions and put them under the microscope and ask if they are still valid, or whether we would be better off if we got rid of them, instead.”
He pointed to one bicycle company that wrote down all the “rules” on a page, and then asked itself what was the opposite of every rule. “One by one, they systematically defied every tradition and as a result achieved a better outcome,” he said. “What would happen if you did that? Don’t just change for the sake of it, but you might find with some better outcomes.”
Crave What’s Next. “It’s leaning into technology and what’s new, but at the same time a willingness to let go. Too often we overestimate something new and underestimate the risk of standing still.”
He urged CUs to start with a blank page each year. “What if we brought that blank page to our credit unions? It might be the way we greet a member in the morning or the way we conduct a team meeting.”
Linkner recommended a strategy he called “the Borrowed Idea.”
“If you are looking to drive real progress, what happens if you look outside banking? Maybe a challenge you are facing is being solved outside your field. Maybe you can borrow it and bring it back to your credit union.”
Get scrappy. “Too often we think we can only be innovative if we have an unlimited set of resources. The real DNA of innovation is internal: grit, determination, tenacity. I think this is a big winner for credit unions in taking on big mega-banks. We can be scrappy and nimble.”
Adapt Fast. “The myth of innovation is it incurs as a single lightning bolt of innovation, followed by flawless execution. Only through a series of mistakes and micro-innovations does the idea really gain merit. So, take the weight off your shoulders. You don’t have to reinvent the credit union industry. Speed is what matters. It’s more important to respond with speed with little creative acts.”