Why the Hostility Toward Creativity?

Rory Sutherland on Selling Fast and Slow

The legendary Ogilvy man, Rory Sutherland, finds a perplexing paradox in marketing and creative problem-solving: why do so many people often react with hostility towards creative solutions?

Rory argues when you apply creativity to a problem, you expand the solutions space. You now have many more ways to address the issue. You’d think this approach would be welcomed with open arms since it often leads to more effective or cheaper solutions than those derived from pure rationality and logic. Yet, as Rory points out, there is noticeable resistance to creative approaches.

Using the behavior of bees to illustrate his point, Rory notes that creativity triggers a fundamental tension in nature and decision-making. Bees have a waggle dance that directs other bees to sources of nectar, a highly efficient system in the short term. However, 20% of bees ignore these directions and go explore randomly. You might think this is wasteful, but it is essential for long-term survival. Exploration allows bees to discover new sources of nectar, and makes sure they don’t starve when current sources deplete.

This concept is known as explore-exploit trade-off. It is essential in most domains, to include business. You need a balance between optimizing current knowledge and exploring new possibilities. Without this balance, your business risks becoming over-optimized and unable to adapt to new opportunities or challenges.

In business, you often see a focus on short-term efficiency at the expense of long-term innovation. You’re tempted to cut back on exploratory initiatives to meet immediate financial targets, or you might ignore innovative suggestions from employees. The result is a failure to capitalize on new ideas and opportunities.

Our reluctance to embrace creative solutions often stems from a preference for decision-making processes that appear rational and data-driven. This “performative rationality” provides a shield against blame, even if it results in suboptimal outcomes.

If you recognize most business problems are open-ended and can benefit from creative exploration, you can move beyond the constraints of “performative rationality” and embrace a wider range of solutions.

You say, “Ok Pete. That’s a great concept, but how do I use it in acquiring and running my own small business? Well, understanding how to apply the explore-exploit trade-off can be pivotal for your ultimate success and growth. Here are a few things you might want to look at as a small business owner/operator:

Fostering a Culture of Creativity

• Encourage Experimentation: Small business owners should create an environment where employees feel comfortable experimenting with new ideas.
• Reward Creativity: You should recognize and reward employees who propose innovative or creative solutions for identifying new opportunities or solving existing problems.

Balanced Resource Allocation

• Set Aside Resources for Exploration: Allocate a portion of your budget and resources specifically for exploring new ideas and projects. Make sure that exploration is not neglected in favor of short-term goals. Think of Google’s ‘Moonshots’.
• Project Diversification: Invest in a mix of projects — some aimed at optimizing existing operations (exploitation) and others aimed at exploring new markets, products, or processes (exploration).

Leveraging Technology and Data

• Adopt New Technologies: You can stay up to date with, and adopt, new technology that can streamline operations or open up new opportunities. You might want to adopt new software, automation tools, or leverage data to gain insights.
• Data-Driven Decision Making: Use data to inform both exploitation and exploration activities. Customer data can reveal new market opportunities, while operational data can highlight areas for efficiency improvements.

If you are going to buy and operate an existing small business, balancing exploration and exploitation should be more than a theoretical concept. Make it a practical strategy for your growth and competitive advantage. Foster a culture that values both creativity and efficiency. Doing so will help your business thrive in the long term.

[Source: Rory Sutherland Masterclass]