Written by 11:00 Project management

Theory U: how to create an innovative product

Theory U: the principle of managing

What stages of project work Theory U assumes

In the 1990s, an MIT faculty member surveyed Silicon Valley business people and innovators. Scientist Otto Scharmer was interested in how a product is developed in the technology sector and what principles guide the professionals. As a result of his research, he formulated Theory U, a concept describing developing unique ideas capable of turning the world upside down. It formed the basis of an approach to planning that helps managers make the best possible decisions when working on a product.

According to this concept, a leader must have three basic qualities:

  1. Curiosity and openness to everything new. To create an innovative solution, you need to be able to move away from the usual mechanisms of interaction that limit imagination.
  2. Empathy and openness to new feelings. It is important to be able to look at a problem or idea from the perspective of others and try to understand what they need and how they feel. Getting feedback from others helps to see the big picture and find the right solution. In this case, it is also about the manager’s openness to his staff, building a productive dialogue.
  3. Courage to create innovation. A leader should be bold in voicing his opinion or developing products that do not fit into the worldview of others. He must be prepared for the fact that everyone does not perceive revolutionary things. A true innovator should not be stopped by prejudice.
Theory U

Steps of Theory U

Theory U consists of seven steps that help create innovative solutions. The work starts with a list of tasks to solve in the product creation process. Establishing a team of specialists, a typical budget, and an overall action plan are essential.

The second step is to gather information on the issue of interest. It is necessary to analyse the market and study competitors to understand the feasibility of working on the idea. The next step is to change your perception, to move away from standard work schemes. This will allow you to look at the task from different sides and the project development perspective.

The fourth step involves some slowing down of the work, which will help find new ways to implement the idea. There is no need to rush; going deeper into yourself and listening to your intuition is better. 

Next, it is vital to communicate to the team the ideas that emerged during the reset process. In doing so, employees should feel the change as clearly and distinctly as the leader. Then they will be able to engage in the process thoroughly and fully appreciate the revolutionary nature of the project.

You can move into action when all the basic steps have been completed. At this stage, practical developments and prototypes emerge. And the final stage is the implementation of the product. Here, it is necessary to analyse the relevance of the initial idea to the result obtained.

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