Leading The Greatest Innovation Generation

A number of people have asked for the text of the keynote address I gave at the UNR Engineering School Innovation Day last week. I hope in some small way it helps you as an innovator and/or leader. Here goes...

I am very grateful to be here at UNR to celebrate the innovation of senior Engineering School students and their capstone projects. When I led the hiring efforts for Panasonic at the Tesla Gigafactory, I shared with Dr. Gautum that the best engineers we hired came out of UNR. I would stack them up against the Stanford, MIT, and Berkeley engineers I met at the Gigafactory. While all the engineers I associated with were extremely talented, there was an intangible “it” factor about the Nevada students that made them special. They not only knew their stuff from an Engineering standpoint, but they were down to earth, not afraid to get their hands dirty, knew how to take theory and put it into practice in the real World of manufacturing, and also were exceptional in working in diverse teams. 

Through participating in today’s event, my positive impression of UNR’s engineering school has been more than affirmed. I truly believe that many of the World’s future innovators are right here among us today and that you will have an epic impact not only right here in Nevada, but also on the Global stage.

During my time at the Gigafactory, I had the opportunity to be on the forefront of some pretty epic innovation and have some larger-than-life opportunities that I will always treasure:

•  The hard work of building the world’s largest battery plant in the middle of the desert.
• The challenge of meshing cultures that were about as diverse as I’ve ever seen – Tesla and Panasonic, US and Japan, Northern Nevada and Silicon Valley
•  The adrenaline rush of taking candidates on high speed test drives in Panasonic’s Model S around the Reno police department test track
• The celebration of the end of a particularly grueling work week by watching Star Wars, Rogue One, IMAX style, on the side of the Gigafactory with my family and coworkers during the Tesla/Panasonic drive-in movie night
• The honor of personally presenting Panasonic’s first batteries off the production line to Elon Musk and Panasonic Chairman Kasuhiro Tsuga. 
• The privilege of helping build the advanced manufacturing economy of the state where I grew up.

However, my first experience with Panasonic came in much more humble way, on Christmas Day 1976 when my parents gave me a Panasonic clock radio, the first radio I ever owned. 

That radio meant the World to me. On Sunday night, two days after Christmas I turned on the radio and first discovered American Top 40 – a show hosted by DJ Casey Kasem, who every week counted down the top hits in America from 40 to number 1. By the time Kasey revealed the number 1 song – Captain and Tennille’s Love Will Keep Us Together – I was hooked. Every Sunday night for the next 10 years I would tune in my beloved Panasonic clock radio to AT40 to hear Casey’s countdown, interspersed with the long distance dedications and special artist insights, all the while my anticipation growing as the countdown approached the number 1 record in America. Who would it - be Michael Jackson, Elton John, David Bowie?     

Before Carson Daly and Ryan Seacrest and after Wolfman Jack, there was Casey Kasem. For many kids growing up in the 70’s and 80’s Casey Kasem was a reassuring voice every Sunday night during times of great tumult – pimples and proms, disco and rock and roll, the Cold War and Cola Wars. And once he’d announced the top tune in the US, Casey would always sign off with the same statement – “Keep your feet on the ground and keep on reaching for the stars.” Surprisingly useful Words of wisdom from one whose vocal talents were also famously employed as the voice of Shaggy from the Scooby Doo series. Maybe I made more of Casey’s words than I should have, but they have stuck with me all these years. 

And so what I would like to share with all of you current and future innovators is that same message – “to keep your feet on the ground and keep on reaching for the stars.”

How does this simple phrase apply to innovation?  

Success is a funny thing. When an innovator starts tasting success it can be intoxicating and if one is not careful it can distort their World view and sense of self-importance. He or she starts reading the press clippings and believes that somehow the rules that apply to the rest of society don’t apply to them. It’s a tricky balance to achieve, because innovators by definition disrupt the status quo and rewrite the rules. At the same time, epic leadership fails at Uber, sexist Google employee manifestos, Amazon’s bruising work culture, and the notoriously poor treatment of women, minorities, and LGBT workers in Silicon Valley’s Tech World has led to a mass exodus of the some of the most promising talent in tech.

It’s a tricky balance to achieve, because innovators by definition disrupt the status quo and rewrite the rules. At the same time, epic leadership fails at Uber, sexist Google employee manifestos, Amazon’s bruising work culture, and the notoriously poor treatment of women, minorities, and LGBT workers in Silicon Valley’s Tech World has led to a mass exodus of the some of the most promising talent in tech.

Some seem to believe that the same disregard for convention employed so successfully in disruptive product development, is equally necessary when applied to leadership and human interaction. The unnecessary human wreckage and $16 billion price tag - the cost of the exodus from Tech - attached to this “ends justify the means” philosophy of progress, clearly demonstrates that is not the case.

With UNR Engineering grads’ technical skills and collective high level of character, I believe you have the opportunity to avoid these pitfalls and make yours the Greatest Innovation Generation. Here are 6 foundations to help you make your mark while taking others along with you for the satisfying ride.

(1)  Stay humble. In his white paper The Way of The Innovative Leader, innovation thought leader Bob Eckert has identified the quality of Humility as the “foundational quality that drives the other attributes of innovative leaders”:

• Integrity
• Tenacity
• Courage
• Curiosity

According to Eckert’s definition “humility is the ability to recognize that ideas can come from other people, a willingness to change your mind, being able to admit mistakes when you make them, and being willing to learn from the mistakes of others, rather than punishing them.”

(2)  Engage the creativity of EVERYONE on your team. I must admit I was duly impressed when I met Elon Musk and got to bask in his genius firsthand. However, the older I get I find that I am equally impressed with the janitor who infuses innovation into their daily work. And perhaps I most impressed when I see talented leaders who understand and value people at all levels and harness their creativity, because when you have a few geniuses running the show, your reach is limited. 

When you have everyone – from the CEO to the Custodian - innovating every day, that’s when an organization becomes unstoppable. Culture becomes a distinct competitive advantage because others won’t be able to duplicate the innovation overflowing from every nook and cranny of your company. Technology can be reverse-engineered, machinery can be duplicated, but culture is the “secret sauce” that distinguishes great companies from the pretenders. Degree or no degree, Ivy League or Mountain West, Male or Female, Black or White, Straight or Gay, CEO or Mail Clerk - everyone has something to contribute. 

So, if you start believing in the press clippings and lose perspective on who and what is most important, ask yourself who would be missed more if they did not show up to work for a week – You or the Custodian…

(3)  Seek Out A Diverse Group of Positive Role Models. Be careful not to surround yourself with “yes people” or people just like you. You need diverse points of view to keep you grounded. 

Growing up I had two grandmas who had a deep effect on me. My Grandma Anderson was all about unconditional love. I could have robbed a bank and she would have complimented me on my choice of ski mask, tipped the getaway driver, and praised my “mad skillz” as a career criminal. On the other hand, my Grandma Gardner was all about tough love. When I was 8 years old, she offered to give me $10 so I could go to the carnival. I hesitated for a minute before giving my affirmative answer, to which she told me “Too late. The opportunity is gone.” Her lesson may have seemed harsh, but it taught me a very important lesson at an early age – when opportunity presents itself, don’t hesitate. Grab the brass ring and go for it. Over the years, I have found that lesson to pay exponential dividends far beyond the $10 I missed out on that day. 

We all need the equivalent of a Grandma Anderson and Grandma Gardner in our professional lives. Those who will build you up and those who will tell you what you really need to hear so you can succeed in the real world. 

My grandmas have long since passed to that big carnival in the sky, but during my career I have had a lot of mentors who have made a profound impact on how I think, act, and treat others. Some of them had a great deal of education, but some of the most impactful were those leaders who had risen to the top of their fields, despite possessing no more than a high school education. I am not advocating skipping one’s education, but I also believe a great deal can be learned from those who possess street smarts, common sense, and tenacity. So keep an open mind when it comes to mentors.

(4)  Put more effort into what you actually contribute than you do into building/branding your online image. Smoke and mirrors last for a while, but in the long run the truth always comes out. And if the truth and perception you’ve built are wildly different (for example, over-promising but under-delivering), you will pay a heavy price.

Keeping the proper perspective on brand recognition makes it possible for an individual or company to pivot to new paradigms of innovation when there’s a compelling business case to do so. For example, twenty years ago, Panasonic made the decision to change from a business-to-consumer (B2C) company to a business-to-business (B2B) company.  They did this because as the B2C industry became crowded with new competitors, profit margins on consumer electronics were eroding and that TV’s, DVD players were being commoditized to the point where maintaining a competitive advantage was an uphill advantage. So, instead they focused on B2B opportunities where the technology was more proprietary and the competitors fewer – like making lithium-ion batteries for Tesla! If Panasonic would have been overly occupied with their consumer electronics name recognition, they may have missed out on an opportunity that has redefined the company.

In the end, also remember that “Customers don’t form their opinions on quality from marketing. They form their own opinions on quality from their experiences with the products or services. We have to start with products and services, not our marketing department.” You might be surprised that these are the words of Steve Jobs, builder of one of the greatest brands in industrial brands in history. So, groom your brand, but base it on reality and quality of services & products. 

(5)   Use Technology As A Tool, Not The End Game. You might be surprised to hear this from someone who has spent his career in advanced manufacturing, but too often companies look to technology as the magic bullet to solve their problems, when they really need to figure out their process first and determine whether manual or automated is better at this point in their evolution. Bring in innovation, but don’t fall in love with it. Marry your innovative ideas with the constraints and feasibility. Check your ego at the door and do what works. And above all realize that the purpose of technology is not to replace humans, but to enrich the human work experience. 

(6)  Commit To “No task too big, no task too small…” With the upcoming generation, I have seen no problem with willingness to take on the big tasks. However, at times, I have seen a hesitance to take on the little stuff. I was very fortunate to be taught by “sensei” who had me clean the inside of presses, sweep floors, and learning how to make the product that brought money into the company. Much of this approach to teaching came from the Japanese concept of “fushime”. Fushime are the nodes of a bamboo tree, and a bamboo tree can’t start the growth of a new node until the previous node has completed its natural growth cycle.  So it is with people. We can’t go straight from point A to Z. There are innumerable important lessons that need to be learned before one is ready to hit the big leagues. So be patient when you are not the President of the company after 2 or 3 years.

Speaking of the big leagues, there is one local leader I would recommend you follow on LinkedIn – Eric Edelstein, President of the Reno Aces. Eric is still a young man and I wouldn’t be at all surprised if some day one of the major league teams calls him up to preside over their operations. Did Eric start out as President of the Aces? No! His first job in baseball was as the backup mascot for the Buffalo Bison, an experience he still treasures to this day. These early experiences in his career have shaped the way he works with people and his hands-on approach to leadership. He can still be seen out there grooming the bullpen mounds and shoveling snow alongside his team out on Greater Nevada Field when a snow storm hits the night before an early-season Reno 1868 FC soccer game.  It came as no surprise to me then, when today I read his LinkedIn feed to learn he had brought on Emily Jaensen as the new GM of the Aces – the only female GM in Triple-A baseball. What a great role model to follow. Remember where he started and be willing to pay your dues.

Yours Will Be The Greatest Innovation Generation

If it keeps its feet on the ground, but reaches for the stars, I am confident your generation will become the “Greatest Innovation Generation”. It will be the first generation in history that realizes radical progress does not come at the expense of human dignity, but instead through harnessing the infinite power and creativity of a radically diverse group of people. 

It will be the first generation in history that realizes radical progress does not come at the expense of human dignity, but instead through harnessing the infinite power and creativity of a radically diverse group of people.

You millennials. Oft maligned, but in my estimation, greatly misunderstood. Contrary to my generation, I have never had to counsel a millennial on sexual harassment, equality of women in the workplace, or discrimination of any type. I have never had to lobby your generation on the importance of having a mission, vision, and values. You get it. You understand that it’s not just that the ends that matter, for what have we accomplished if we don’t lift the condition of people at the same time we take technology to the next level. Your generation will be the ones who understand that the robots are not coming to take our jobs, but that technology is there to enrich, inspire, and lift the human race to new heights. The future is in good hands. And for that I am very grateful! Congratulations on your capstone projects and upcoming graduation ceremonies. GO WOLFPACK!