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The Genius of Bad Ideas

13 min

The Only Business Metric That Matters

Golden Hook & Introduction

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Joe: Most companies think innovation comes from one brilliant idea. But what if the data shows it actually comes from 2,000 bad ones? The path to a single successful product, like Taco Bell's Doritos Locos Tacos, involved a product manager eating thousands of failed shells first. Success isn't a lightning strike; it's a numbers game. Lewis: Wait, two thousand? That sounds less like innovation and more like an endurance sport. I'm picturing a guy in a lab coat just weeping over a pile of nacho cheese dust. Joe: Exactly! And that's the core idea in Ideaflow: The Only Business Metric That Matters by Jeremy Utley and Perry Klebahn. These guys aren't just theorists; they're practitioners from Stanford's renowned d.school. And Klebahn, one of the authors, was actually the CEO of Timbuk2 and the COO of Patagonia. Lewis: Oh, Patagonia? Now I'm listening. That's a company that seems to get everything right. Don't tell me this involves a story about ethically sourced, artisanal fleece vests. Joe: Close, but it's actually a story about a massive failure. It’s about a time when Patagonia got it spectacularly wrong, and it perfectly illustrates why this concept of 'ideaflow' is so critical.

The Ideaflow Mindset: Why Quantity is the New Quality

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Lewis: A Patagonia failure story? This feels rare, like spotting a unicorn. I’m all ears. Joe: Okay, so picture this. It’s late 2001, right after the 9/11 attacks. The world is full of uncertainty, and businesses are terrified. Perry Klebahn, our author, is a leader at Patagonia, responsible for sales and operations. Like every other executive at the time, his instinct is to play it safe. Lewis: Of course. Batten down the hatches, cut costs, focus only on what you know will sell. That’s Business 101 in a crisis. Joe: Precisely. So he tells his merchandisers to focus only on the 'winners'—the proven, best-selling products and colors. He cuts orders for new, experimental materials and tells the team to double down on the safe bets. Fast forward a few months to April 2002. He walks in to review the upcoming spring clothing line. Lewis: And it’s just a sea of beige and navy blue? Joe: Worse. It was black, gray, and more black. A senior merchandiser, Adrienne, is there, and Perry is looking at this drab, colorless collection meant for spring and asks, "Where are the new colors? Where's the vibrancy?" And she just looks at him and says, "Perry, we did exactly what you told us to do. We focused on the winners." Lewis: Ouch. That’s a tough mirror to have held up to you. Joe: It gets worse. He realizes his mistake immediately, but here’s the kicker: in the apparel industry, the lead time from ordering raw materials to getting clothes in stores is about 18 months. Lewis: Eighteen months? Oh, that’s brutal. So the decision he made in a moment of fear had locked them into a bleak, colorless future for a year and a half. There was no undo button. Joe: None. He had completely painted them into a corner, a very grey corner. And the only thing that saved Patagonia was that their competitors had made the exact same fear-based decision. The whole market was drab that year. But the lesson was seared into his mind. Lewis: Wow. So by trying to eliminate risk, he actually eliminated all his options. He took what he thought was the safest path, and it turned out to be the most dangerous. Joe: That is the absolute core of the book's argument. The authors say that in moments of uncertainty, our instinct is to stop generating new ideas and retreat to what's familiar. But that's when you need possibilities the most. They argue that every problem, at its heart, is an idea problem. When your 'ideaflow'—the rate of new idea generation—dries up, you become fragile. The riskiest move you can make is to stand still. Lewis: That's so counter-intuitive. In a crisis, my brain screams "Don't try anything new! Just survive!" But you're saying that's the very instinct that can kill you. Joe: It's the instinct that limits your future. The book argues that you can't know what a 'winner' is ahead of time. You can't just pick the right idea from a list. World-class creators understand that picking is just guessing. The only way to find out what works is to have a reliable process for testing ideas in the real world. Lewis: So it's not about having better judgment, it's about having a better system for experimentation. Joe: Exactly. And that system starts with a flood of ideas. The book cites what they call the "Idea Ratio," which suggests it takes something like 2,000 raw ideas to get to one commercially successful new solution. Lewis: Two thousand to one. That really reframes the goal, doesn't it? It’s not about being a genius who comes up with the one perfect idea. It's about being a machine that can generate enough raw material to find the diamond. Joe: You've got it. It’s about quantity driving quality. You have to separate the act of generating ideas from the act of judging them. Most of us do both at the same time, and we strangle our best thoughts before they can even breathe.

The Daily Practice: How to Amplify Your Personal Ideaflow

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Lewis: Okay, I'm sold on the 'why.' Generating a ton of ideas is like building an immune system against uncertainty. But let's get practical. How do you actually do that when your calendar is a nightmare and your inbox is a dumpster fire? Joe: Well, that's the book's next big idea: you have to build the habit of idea generation. It's not something you do in a two-hour brainstorming session when a crisis hits. It's a daily practice. Lewis: A habit. Like brushing your teeth, but for your brain. Joe: A perfect analogy. The authors paint this brilliant, and frankly, very relatable picture of two leaders: 'Jim' and 'Jen'. Jim is the classic reactive manager. He wakes up, immediately checks his phone, and his whole day is dictated by other people's agendas. He's constantly putting out fires, rushing from meeting to meeting, feeling 'busy' but never actually moving the needle on important work. Lewis: I think we all know a 'Jim.' Most days, I am Jim. It feels productive because you're constantly doing something, but at 5 PM you look back and have no idea what you actually accomplished. Joe: Right? Then there's 'Jen'. Jen is proactive. She protects the first hour of her day. No email, no notifications. She uses that time for deep thinking, for planning. She batches her tasks and delegates. She's not just fighting today's fires; she's fire-proofing for tomorrow. She prioritizes effect over affect—actual accomplishment over the feeling of being busy. Lewis: So what's Jen's secret? What is she doing in that first hour? Joe: This is the most practical tool in the book. It's called the 'Idea Quota.' It's incredibly simple. Every morning, you take a problem you're wrestling with, and you write down ten ideas to solve it. Lewis: Ten ideas? Every single day? That sounds... exhausting. And what if they're all terrible? Joe: That's the entire point! They probably will be terrible at first. The goal isn't to generate ten brilliant, fully-formed solutions. The goal is to build the muscle. It's like creative weightlifting. The first few reps are ugly, but you're training your brain to look for possibilities everywhere. You're intentionally silencing that inner critic that says, "That's a dumb idea." Joe: The book references this fascinating research by Dr. Charles Limb, who put jazz musicians and rappers into an fMRI machine to see what their brains were doing during improvisation. He found that the part of the brain associated with self-monitoring and inhibition—the prefrontal cortex—actually quiets down. To be creative, you have to stop judging yourself so harshly. The Idea Quota is a forced way to do that. Lewis: I like that. It's giving yourself permission to suck. Because if the goal is just ten, you can't afford to be a perfectionist. Idea number seven can be "what if we used trained squirrels?" and it still counts. Joe: Exactly! And you have to write them down. The book quotes an old saying: "The faintest ink is better than the sharpest memory." If you don't capture it, it didn't happen. You create this repository of thought that you can come back to. An idea that seems silly today might connect with a different problem a month from now and suddenly become brilliant. Lewis: So the daily practice isn't really about solving the problem that day. It's about stocking your mental pantry with ingredients you can cook with later. Joe: That's a great way to put it. You're seeding your mind. You're turning creativity from a sporadic event you hope for into a daily, reliable practice. You're choosing to be Jen instead of Jim.

The Innovation Pipeline: From Idea Flood to Tested Reality

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Joe: And capturing those ten ideas is just the first step. The next, and this is where it scales to the whole organization, is figuring out what to do with this potential flood of ideas. That's where the book introduces the 'Innovation Pipeline.' Lewis: Right, this is the part that sounds expensive. How do you test thousands of ideas without a Google-sized R&D budget? I can see a CFO getting hives just thinking about it. Joe: By making your tests cheap, fast, and imperfect. The goal isn't to build the perfect product; it's to get the most learning for the least amount of effort and cost. The book gives two fantastic, opposing examples of this. First, the 'Beer Garden Debacle.' Lewis: A debacle? I'm in. Joe: A global real estate company had a luxury mall where the fourth floor was dying. Low foot traffic, stores struggling. So management does a big brainstorm, and someone suggests a beer garden. They survey customers in the food court, "Hey, would you go to a fancy beer garden on the fourth floor?" 85% say yes. Lewis: Sounds like a green light to me. Joe: It did to them, too. They spent hundreds of thousands of dollars building this gorgeous, high-end beer garden. And... nobody came. It was a ghost town. A total failure. Lewis: Oh, that's painful. What went wrong? Joe: They learned a crucial lesson: behavior proves desirability, not surveys. What people say they'll do and what they actually do are two very different things. The book points out they could have tested the core assumption for a few hundred bucks. Just set up a pop-up stand with a keg and a few tables for a weekend. They would have learned it was a bad idea before spending a fortune. Lewis: That's a brutal lesson in the cost of not testing. So what's the flip side? The success story? Joe: The flip side is a startup called Man Crates, founded by a guy named Jon Beekman. He had an idea to sell curated gift boxes for men. But instead of buying a warehouse full of jerky and gadgets, he did something brilliant. He just built a simple, one-page website with pictures of three nonexistent gift boxes. Lewis: He faked it? I love that. That's gutsy. Joe: Completely. He ran a few Facebook ads to drive traffic. When an order came in for one of the fake crates, the system would just void the transaction, and he would personally call the customer. He'd say, "Hey, thanks so much for your interest! We're still finalizing things. Can I ask what you liked about that box?" He was getting priceless market feedback, and validating actual purchase intent, without spending a dime on inventory. Lewis: That is genius. He sold the idea before he ever made the product. He was testing demand, not just opinions. Joe: That's the entire philosophy of the innovation pipeline in a nutshell. Pick less, test more. Stop trying to guess what will work in a conference room and create a system to let the real world tell you what works, as quickly and cheaply as possible. You build a portfolio of small experiments, you see what gets traction, and you double down on that.

Synthesis & Takeaways

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Lewis: So when you put it all together, the book's big message is that creativity isn't this mystical gift that only a few people have. It's a process. A messy, high-volume, systematic process of generating ideas and then ruthlessly testing them against reality. Joe: It's even more than that. It's a fundamental shift in how we measure progress and health in a business, or even in our own careers. We're all trained to measure outputs—the finished product, the quarterly profit, the successful project. Ideaflow makes the bold, and I think correct, argument that the most important metric is actually an input: the health of your idea-generating engine. Lewis: That's a powerful reframe. You're saying that if the flow of new ideas is slowing down, you're already in trouble. The bad quarterly report is just a lagging indicator of a problem that started months, or even years, earlier. Joe: Precisely. The empty pipeline is the real risk. The riskiest move is standing still, like Patagonia did, thinking you're safe because you're sticking to the 'winners.' Your 'winners' will eventually become obsolete. The only thing that guarantees a future is a constant stream of new possibilities. Lewis: So for anyone listening who feels like they're 'Jim' from the story, stuck in that reactive cycle, the first step isn't to go solve some huge, audacious problem. It's just to start the Idea Quota tomorrow morning. Ten bad ideas. That's the first turn of the engine. Joe: That's it. Don't judge them, just write them down. It's a tiny act of creative defiance against the tyranny of the inbox. And we'd genuinely love to hear what happens. If you try it for a week, let us know what you discover. Does it feel different? What's the weirdest, most 'trained squirrel' idea you came up with? Lewis: I'm definitely trying it. My squirrel-based business empire starts tomorrow. Joe: This is Aibrary, signing off.

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