This returns us again to the central point of this section; the primary challenge you face is not in increasing creativity per se, but in making your company receptive to the vast amounts of creativity that already exist. The point is not to build a company that depends on you for its innovation, but to continually work towards an organization that is as receptive to new ideas as if those ideas had come from you.

Recognize, localize, depolarize—these are the secrets to building an organization that can walk and chew gum at the same time.

So where do you start in helping your organization become a master of paradox? Here are some suggestions:

1. Be honest about the implicit biases in your organization that skew important trade-offs. Go out of your way to include individuals with countervailing views in important conversations.

1. Challenge yourself and others to get better data on the hidden costs of default trade-offs. Don’t assume that no data equals no downside.

1. If you’re a manager, resist the urge to standardize trade-offs across the organization. Be willing to sacrifice a bit of uniformity for more locally appropriate decisions.

1. Never accept an either/or. Think creatively about how you could achieve your goals without sacrificing other equally vital goals.

1. Work systematically to equip people with the information and skills they need to make smart trade-offs, and then push those trade-offs down.

1. Give frontline teams a genuine P&L, radically reduce the number of KPIs, and hold people accountable for results.

1. Even if you’re not the CEO, search for ways to “stop the train.” Question every click of the ratchet that moves power and decision making toward the center.

UNCOMMON TAKEAWAYS

• To achieve service excellence, you must underperform in strategic ways. This means delivering on the service dimensions your customers value most, and then making it possible — profitable and sustainable —by performing poorly on the dimensions they value least. In other words, you must be bad in the service of good.

• The primary obstacle to service excellence is not the ambition to be great, but the stomach to be bad. This is an emotional obstacle.

• It's difficult to compete without understanding your customers' needs and how well your competitors are meeting those needs. Fortunately, customers are typically very willing to give you that information. And it's cheap and easy to ask them for it.

• There is an important distinction between marketing and operating segments. Marketing segments tell us how to identify and communicate with different kinds of customers. Operating segments tell us how to serve customers differently.There is rarely a one-to-one mapping between these segments.

• There are two key ways to improve service: (1) meet your customers' existing needs more effectively, or (2) convince your customers that they need something you already do well.

• There is a difference between financial models and service models. Service companies need to be "bi-lingual" to excel.

UNCOMMON TAKEAWAYS

• To achieve service excellence, you must underperform in strategic ways. This means delivering on the service dimensions your customers value most, and then making it possible — profitable and sustainable —by performing poorly on the dimensions they value least. In other words, you must be bad in the service of good.

• The primary obstacle to service excellence is not the ambition to be great, but the stomach to be bad. This is an emotional obstacle.

• It's difficult to compete without understanding your customers' needs and how well your competitors are meeting those needs. Fortunately, customers are typically very willing to give you that information. And it's cheap and easy to ask them for it.

• There is an important distinction between marketing and operating segments. Marketing segments tell us how to identify and communicate with different kinds of customers. Operating segments tell us how to serve customers differently.There is rarely a one-to-one mapping between these segments.

• There are two key ways to improve service: (1) meet your customers' existing needs more effectively, or (2) convince your customers that they need something you already do well.

• There is a difference between financial models and service models. Service companies need to be "bi-lingual" to excel.

Step 2: MonetizeYour Strengths

In addition to looking at your largest cost drivers, ask yourselves, "What can we do better than anyone else?" That is, beyond the rhetoric of annual reports and marketing collateral, what makes you really and truly superior? Start here, and think about a value-added service that allows you to benefit operationally from your excellence — bonus if you can make your competition uncomfortable along the way…

Interestingly, the obstacle to innovation at this company was its confidence that it was already capitalizing on its strengths. As soon as its managers had the courage to acknowledge the gap between chatter and truth — between what they were vaguely promising and what they were explicitly delivering — we were able to make progress in relatively short order. The security company is not alone in this. We often find the obstacle to innovation is an unwillingness to acknowledge reality, including the hard truth that you're not creating the value you claim to be creating. Once we establish that there's more to be done, the brainstorming is often fast and furious. Without that acknowledgment, however, organizations can retreat to a defensive and reluctant crouch.