{"id":1442,"date":"2017-04-05T09:00:11","date_gmt":"2017-04-05T13:00:11","guid":{"rendered":"https:\/\/www.innovators.org\/?p=1442"},"modified":"2018-10-05T05:58:04","modified_gmt":"2018-10-05T09:58:04","slug":"hackathon-can-encourage-employees-innovate","status":"publish","type":"post","link":"https:\/\/www.innovators.org\/stage\/blog\/hackathon-can-encourage-employees-innovate\/","title":{"rendered":"How a hackathon can encourage your employees to innovate"},"content":{"rendered":"<p><em>*Originally published as a Guest Column in The Globe and Mail on March 16, 2017: <\/em><a href=\"http:\/\/www.theglobeandmail.com\/report-on-business\/small-business\/sb-managing\/hackathons-arent-just-for-hackers-any-more\/article34146640\/\"><em>click here to access.<\/em><\/a><\/p>\n<p>Everyone in business has heard the expression that if you\u2019re not disrupting your market, someone else will <a href=\"https:\/\/www.innovators.org\/blog\/digital-disruption-demands-innovative-business-models\/\">soon be disrupting you<\/a>. But this raw challenge doesn\u2019t help most leaders understand how they\u2019re supposed to get started in the creative-destruction business.<\/p>\n<p>But Steven Stein has figured it out. The chief executive officer of Toronto-based <a href=\"https:\/\/www.mhs.com\/\">Multi-Health Systems Inc.<\/a> has created an in-house \u201chackathon\u201d to encourage innovative thinking and transform ideas into new products.<\/p>\n<p>Stein is a true believer in creative destruction. He founded MHS 33 years ago to disrupt the psychological-testing industry by automating conventional paper-based tests for the personal computer. Today, MHS is a global industry leader, with 160 employees and clients in more than 75 countries. But Stein knows his company remains vulnerable to new entrepreneurs with better ideas \u2013 so he\u2019s shaking up his team to ensure they develop those bold new products first.<\/p>\n<p>It was an off-site strategy session for senior leaders that launched MHS\u2019s innovation project. <strong><em>\u201cTwo years back, we had a presentation on disruption,\u201d<\/em><\/strong> Stein said. <strong><em>\u201cWe went home and had nightmares about how new people could kick us out of the market.\u201d<\/em><\/strong><\/p>\n<p>Stein and his team knew hackathons were popular, if sometimes messy, events that help small teams turn new ideas into working prototypes fast. Even when they don\u2019t produce new products, hackathons can be powerful problem-solving exercises that can build positive attributes such as agility, risk tolerance and trust. So Stein appointed a team, led by president Hazel Wheldon, in the summer of 2015 to put MHS on the hackathon circuit \u2013 and make it fun and engaging.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1446\" src=\"https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/new-ideas-1024x573.jpg\" alt=\" new ideas into working prototypes\" width=\"800\" height=\"448\" srcset=\"https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/new-ideas.jpg 1024w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/new-ideas-300x168.jpg 300w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/new-ideas-768x430.jpg 768w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/new-ideas-610x341.jpg 610w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>Since then, MHS has held two hackathons at its Toronto headquarters, and created a five-person \u201cinnovation hub\u201d to select the best ideas and turn them into customer-ready products. Innovation is a long game, and the first market tests are still in the field. But Stein believes the process has already been successful. <strong><em>\u201cThe biggest benefit is the excitement it created,\u201d<\/em><\/strong> he said. <strong><em>\u201cPeople loved working with new people. It\u2019s been worth it just for the engagement, not just the products we got out of it.\u201d<\/em><\/strong><\/p>\n<p><a href=\"https:\/\/www.innovators.org\/why-innovate\/\">Could your company pull off a similar innovation coup?<\/a> Here\u2019s how MHS did it.<\/p>\n<ul>\n<li>After researching how other companies managed innovation events, MHS\u2019s hackathon planners developed guidelines and rules. They decided on a one-day hackathon on a January Monday \u2013 with the 15 teams competing in a \u201cDemo Day\u201d the following Friday, in conjunction with MHS\u2019s annual awards dinner.<\/li>\n<\/ul>\n<ul>\n<li>Teams formed in groups of five to eight in early fall, so they would have lots of time to develop ideas and research solutions prior to the big day. To help the teams focus, planners identified four sectors as most likely to be disrupted: big data; mobile apps; gamification; and process improvement.<\/li>\n<\/ul>\n<ul>\n<li>As the employee teams took shape (each one restricted to one programmer and one employee from user experience), the planners scheduled a series of \u201clunch and learns\u201d through the fall. Topics included creating prototypes, writing business plans and making killer presentations.<\/li>\n<\/ul>\n<ul>\n<li>The incentives? The team with the most promising idea (as judged by Stein and a panel of internal and external judges) would win $5,000. There would also be a $2,000 second prize, and a third prize of $1,000.<\/li>\n<\/ul>\n<p>On hackathon day in January, 2016, the 15 teams had until 6 p.m. to finalize a prototype and hammer out a business plan. MHS supplied food and colour-coded team T-shirts, creating a festive atmosphere. Participants were laughing, sweating, debating and tweeting \u2013 so much so that competitors started noticing. For 2017, MHS had to say no to tweets that gave too much away.<\/p>\n<p>All teams presented to the judging panel on the following Friday. Each team was allowed a five-minute presentation, followed by five minutes for answering questions. Stein was thrilled by the winning ideas: an inexpensive \u201ccandidate competencies\u201d test for employers to help MHS hack its way into a highly lucrative market; a mobile \u201cearly warning\u201d solution that let psychologists share with patients (or their parents) preliminary test results in minutes instead of weeks; and the identification of new markets for some of the firm\u2019s underused mental-health surveys through sales to the insurance industry.<\/p>\n<p>Stein said some of these ideas might have daunted the team prior to the hackathon. <strong><em>\u201cBut now these guys have mapped them out. They said: \u2018We can do it. Here\u2019s how.\u2019 \u201d<\/em><\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1451\" src=\"https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/map-out-ideas-1024x597.jpg\" alt=\"map out ideas\" width=\"800\" height=\"466\" srcset=\"https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/map-out-ideas.jpg 1024w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/map-out-ideas-300x175.jpg 300w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/map-out-ideas-768x448.jpg 768w, https:\/\/www.innovators.org\/stage\/wp-content\/uploads\/2017\/04\/map-out-ideas-610x356.jpg 610w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p>The next step was for the implementation team to review the finalists\u2019 ideas and adopt the most promising projects. For now, MHS is funding this project through unbudgeted foreign-exchange gains; Stein hopes the group will start paying its way before the Canadian dollar turns up again.<\/p>\n<p>The innovation hub \u2013 two psychologists, two programmers and a UX person \u2013 fine-tuned initial prototypes for hand-off to sales, which arranged pilot programs with real customers. The team set itself quarterly goals to ensure it was doing its job; in innovation, knowing what to stop working on is just as important as spotting winners.<\/p>\n<p><strong><em>\u201cOver all, there are eight or nine projects we\u2019re moving ahead with,\u201d <\/em><\/strong>Stein said. With two hackathons now under his belt, a pipeline of new projects and a re-engaged work force, he said the whole process has been a winner. <strong><em>\u201cIt\u2019s turned us from a disruptee to a disruptor.\u201d<br \/>\n<\/em><\/strong><\/p>\n<hr \/>\n<p><strong>We are proud to have MHS as a member of Innovators Alliance! Innovators Alliance is a peer-to-peer networking group of CEOs committed to driving business growth through innovation. <\/strong><a href=\"https:\/\/www.innovators.org\/attend-exclusive-business-networking-event\/\"><strong>Attend one of our chapter meetings to see what we\u2019re all about.<\/strong><\/a><\/p>\n<p><strong><em>Is your company innovative? <\/em><\/strong><a href=\"https:\/\/www.innovators.org\/innovation-self-test\/\"><strong><em>Try our Innovator Self-Test.<\/em><\/strong><\/a><strong><em> It has only 10 questions and takes less than 2 minutes!<\/em><\/strong><\/p>\n<p><strong>Like this? You might also like:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.innovators.org\/blog\/top-3-reasons-business-must-innovate-yes\/\">Top 3 Reasons Your Business Must Innovate (Yes: YOU!)<\/a><\/li>\n<li><a href=\"https:\/\/www.innovators.org\/blog\/company-failing-innovate\/\">Why Your Company Is Failing to Innovate<\/a><\/li>\n<li><a href=\"https:\/\/www.innovators.org\/blog\/history-reveals-innovation-needs-play-ted-talk-video\/\">History Reveals Innovation Needs Play [TED Talk Video]<\/a><\/li>\n<\/ul>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content --><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>*Originally published as a Guest Column in The Globe and Mail on March 16, 2017: click here to access. Everyone in business has heard the expression that if you\u2019re not disrupting your market, someone else will soon be disrupting you. But this raw challenge doesn\u2019t help most leaders understand how they\u2019re supposed to get started [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":7,"featured_media":1445,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[13],"tags":[],"class_list":["post-1442","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guest-blogs"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How a hackathon can encourage your employees to innovate<\/title>\n<meta name=\"description\" content=\"Everyone in business has heard the expression that if 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