shelidonSeptember 4, 2024Leave a Comment

Teams that thrive under pressure, learn from mistakes, and emerge stronger from challenges are antifragile, but how do you create the right environment for these qualities to emerge?

Encourage Autonomy and Decentralization. In antifragile systems, decision-making needs to be decentralized as it happens in Scrum. Giving your team the autonomy to make decisions empowers them to respond quickly and adapt to changing situations, which makes the entire team stronger and fosters ownership towards the product.

Promote a Growth Mindset. Encourage your team to view challenges as opportunities to grow rather than obstacles through example, honesty and the creation of a safe environment. When team members feel that their failures will lead to learning and improvement, they’re more likely to experiment and push boundaries.

Build Redundancy into Teams. Just like in biology, redundancy in teams can prevent collapse when stress hits: cross-train team members so that multiple people can step into different roles if needed. This makes the team adaptable and more resistant to shocks and allows for a natural turnover whenever some team member needs rest. Antifragility thrives in stress, after all, and stress is… well, stressful.

Reward Experimentation. Create a culture where taking calculated risks is rewarded. If team members feel they can safely experiment without fear of punishment, they’re more likely to innovate, which strengthens the team over time.

Let’s focus on the last aspect, as it might be the most difficult to put into practice: the ability to experiment, adapt, and innovate is crucial for any organization’s long-term success. Teams that feel encouraged to experiment, in fact, tend to be more creative, resilient, and engaged. However, creating a culture that rewards experimentation is not easy. It requires deliberate management strategies that balance the risks of failure with the potential for breakthrough success. By recognizing and rewarding experimentation, leaders can foster an environment where teams are motivated to push boundaries and pursue new ideas.

Yes, but how?

1. Recognition and Celebration of Failures

One of the most critical steps in rewarding experimentation is redefining failure as a positive (and natural) outcome of experimentation rather than a negative one as it happens in the “business as usual” scenario where everything needs to repeat as standardised as possible. Too often, teams are discouraged from taking risks because they fear the repercussions of failure. To counter this, managers can implement a practice of recognizing and celebrating failures that arise from well-intentioned experimentation.

Some companies, such as Google and Tata, have famously implemented “Failure Awards” or “Dare to Try” awards. These awards are given to teams or individuals who took bold risks that didn’t pan out as expected but contributed valuable lessons to the organization. By celebrating these failures publicly, managers send a clear message that taking risks is encouraged, and failure is seen as part of the learning process. The key to this technique is to ensure that failures are not the result of recklessness but rather thoughtful attempts at innovation. Recognizing these efforts can help shift the team’s mindset from fearing failure to viewing it as a necessary step toward success.

2. Providing Time and Space for Experimentation

To foster a culture of experimentation, it’s essential to give teams the time and space they need to explore new ideas. When employees are constantly pressured to meet deadlines and focus on their core responsibilities, they may not have the bandwidth to experiment with new approaches. By intentionally allocating time for experimentation, managers can demonstrate that innovation is a priority.

Google’s famous “20% Time” policy allows employees to spend 20% of their work hours on passion projects or experimental ideas that may not be directly related to their job responsibilities. This initiative has led to the creation of some of Google’s most successful products, including Gmail and AdSense. By giving employees time to pursue their ideas, Google empowers them to experiment without worrying about immediate results.
While the concept of 20% Time remains a powerful symbol of Google’s innovative culture, the policy itself has undergone changes. Initially, it was a more structured program, but over time, it has become less formalized: the rigid 20% time allocation has been relaxed, allowing for more flexibility in how employees use their time, and there’s a greater emphasis on projects that have a tangible impact on the company, rather than purely experimental endeavours. Many successful projects born from 20% Time have been integrated into the company’s main products and services.

This technique can be adapted to fit different organizational structures. For example, managers can designate “innovation days” or “hackathons” where teams can step away from their regular tasks and focus entirely on experimentation. Providing this space shows employees that their creativity is valued and that the organization is committed to fostering innovation.

3. Incentivizing Experimentation with Rewards

Beyond recognition, providing tangible rewards for experimentation can be an effective way to encourage teams to take risks. These rewards can take many forms, from financial bonuses to career development opportunities. The key is to align the rewards with the organization’s innovation goals and to make sure they are meaningful to the team.

Some companies offer “innovation grants” or “seed funding” to teams or individuals who propose promising experimental projects. For example, the software development company Atlassian runs internal innovation contests where employees can pitch ideas and receive funding to bring those ideas to life. This approach incentivizes employees to think creatively and take ownership of innovative projects, knowing that their efforts could be rewarded with resources and support.

Innovation grants can be structured as a competitive process, where teams submit proposals and compete for funding, or as an ongoing initiative where managers allocate resources to experimentation on a rolling basis. This technique not only rewards experimentation but also ensures that the most promising ideas receive the support they need to succeed.

4. Building Experimentation into Performance Reviews

In many organizations, performance reviews are heavily focused on achieving specific outcomes, hitting targets, and avoiding mistakes. However, if experimentation and innovation are core values, then they should be reflected in the performance evaluation process. By incorporating experimentation into performance reviews, managers can reinforce the importance of taking risks and exploring new ideas.

Managers can develop specific innovation metrics that are included in performance evaluations. For example, employees might be assessed on the number of new ideas they’ve proposed, the experiments they’ve conducted, or their contributions to innovation initiatives. These metrics encourage employees to actively engage in experimentation as part of their performance goals.
This approach can be tailored to different roles and levels within the organization. For example, junior employees might be evaluated on their participation in experimentation, while senior leaders might be assessed on how effectively they create environments that foster innovation. By building experimentation into performance reviews, managers send a clear signal that taking risks and pursuing innovation are key aspects of an employee’s success.

Beware of metrics, however, as they modify the behaviour, and it might not be in the exact direction you want.

5. Creating Cross-Functional Experimentation Opportunities

One of the most effective ways to spark experimentation is to bring together diverse perspectives and skill sets. Cross-functional teams can approach problems from different angles and generate more creative solutions. By facilitating collaboration across departments, managers can encourage experimentation that goes beyond the boundaries of individual roles and functions.

Managers can establish cross-functional innovation teams that bring together employees from different departments to work on experimental projects. For instance, a company might form a team that includes members from marketing, engineering, and product development to brainstorm new approaches to customer engagement. These teams can work together on short-term experiments or longer-term innovation initiatives.

As we know from other techniques such as the ICE session, cross-functional teams often produce more innovative solutions because they combine expertise from various fields. Additionally, these teams can help break down silos within the organization and create a culture of collaboration and experimentation across different functions.