Key Moments

Safi Bahcall: How to Nurture the Crazy Ideas that Transform Industries | SXSW 2019

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SXSW
Entertainment5 min read57 min video
May 15, 2019|10,591 views|135|3
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TL;DR

Radical innovations are 'loonshots,' not 'moonshots.' They emerge from separate 'artist' and 'soldier' groups that dynamically exchange ideas, but nurture these loonshots like a gardener, not a Moses, ensures their survival.

Key Insights

1

Just as water transitions from liquid to solid at a critical temperature, groups can exist in either a fluid, innovative phase or a rigid, execution-focused phase.

2

Vannevar Bush's strategy for winning WWII involved creating separate 'artist' groups (scientists developing new tech) and 'soldier' groups (military using it), enabling dynamic exchange, which was crucial for technologies like microwave radar.

3

The Bell Telephone Company's transformation under Theodore Vail, with the creation of Bell Labs, demonstrates how a quarantined group of 'artists' working on fundamental technologies could solve huge operational challenges.

4

The US's post-WWII scientific and technological leadership, including advances in biotechnology, GPS, and the internet, stemmed from the system established by Vannevar Bush, emphasizing both innovation and disciplined execution.

5

Loonshots, the truly transformative ideas, are often dismissed or neglected for years, unlike 'moonshots' which are announced with fanfare, requiring persistence through multiple failures rather than quick pivots.

6

Western Europe's rise to scientific dominance was due to its fragmented political landscape, allowing 'loonshot nurseries' to thrive by moving rejected ideas between different patrons, unlike centralized powers like China or India which excelled at 'franchise' innovations.

Phase transitions explain group behavior and innovation.

The behavior of matter, like water freezing into ice, provides a metaphor for how groups function. Water molecules are either sloshing freely (liquid phase) or locked rigidly in place (solid phase) due to competing forces: entropy (freedom) and binding energy (structure). This transition isn't about a 'CEO molecule' dictating behavior, but an emergent property of the system. Similarly, teams and companies can be in a fluid, innovative state ('artists') or a rigid, execution-focused state ('soldiers'). Vannevar Bush understood that these phase transitions are critical and can be influenced by small structural changes, akin to how adding salt lowers water's freezing point or adding carbon to iron creates steel.

Vannevar Bush's strategy separated artists and soldiers during WWII.

During WWII, the US military was at risk of losing to Nazi Germany despite a love for new gadgets. Vannevar Bush recognized that a team cannot be both wildly innovative and operationally excellent simultaneously. To overcome this, he proposed to FDR the creation of a separate group, reporting directly to the president, to focus solely on developing radical new weapons. This 'phase separation' created a space for 'artists' (scientists) to develop groundbreaking technologies like microwave radar, which was instrumental in winning the Battle of the Atlantic. This was a departure from popular narratives, like the movie 'The Imitation Game,' which overstated the role of code-breaking compared to radar.

Dynamic exchange between artists and soldiers is crucial for innovation transfer.

Simply separating 'artists' and 'soldiers' is insufficient; innovation labs often fail because they miss the crucial step of transfer. Bush understood that this transfer must be dynamic and bidirectional. Initially, the scientists developing microwave radar in Boston faced challenges because the pilots using it didn't have a good user interface. Bush facilitated the 'transfer' in the other direction by having the scientists get into the cockpits with the pilots. This direct feedback loop led the scientists back to the lab to refine the technology, specifically creating an improved oscilloscope interface. This dual exchange—the artists providing new tech and the soldiers providing essential feedback—transformed radar from a promising concept into a war-winning tool within weeks in early 1943.

Bell Labs exemplified the power of quarantined artist groups.

The Bell Telephone Company faced a crisis in the early 20th century after Alexander Graham Bell's patent expired, leading to declining service and competition. Under Theodore Vail, the company committed to a single, nationwide system, a seemingly impossible feat given the nascent understanding of electricity. Vail created a quarantined 'artist' group, Bell Labs, which developed fundamental technologies like the amplifier. This allowed for long-distance calls and laid the groundwork for revolutionary inventions such as the transistor, earning eight Nobel Prizes and influencing key figures like Vannevar Bush.

Loonshots are dismissed, persistent ideas that transform industries.

Unlike 'moonshots' like JFK's goal of reaching the moon, which are announced with fanfare, 'loonshots' are radical, often ridiculed ideas that take decades to prove their worth. Robert Goddard's pioneering work on liquid-fueled rockets, for example, was met with disbelief and critical editorials from The New York Times. However, these loonshots challenge accepted beliefs and require persistence through numerous failures. The real breakthroughs are found not in quick pivots, but in continuing to pursue ideas long after initial setbacks, which is why Bahcall calls them 'loonshots'—a term reflecting their initial perceived irrationality.

Successful leadership requires nurturing both artists and soldiers.

Great leaders are not necessarily brilliant technologists but rather 'gardeners' who nurture the balance between artists and soldiers. This involves loving both groups equally, recognizing that artists (innovators) drive new ideas, while soldiers (marketers, manufacturers, product managers) ensure execution and delivery. Companies like Amazon, Google (with Google X), and Netflix are cited as examples of those succeeding by maintaining this dynamic equilibrium. Leaders must adopt different mindsets for each group: celebrating the artists' crazy ideas and valuing the soldiers' focus on excellence and discipline. This balanced approach, exemplified by Vannevar Bush's respect for military men and his management of technological transfer, is key for sustained innovation and transformation.

Western Europe's fragmentation fostered scientific loonshots.

While China and India dominated in established 'franchise' innovations for millennia, Western Europe's fragmented political landscape was uniquely suited for nurturing 'loonshot' innovations. Lacking a single dominant power, ambitious scientists with revolutionary ideas, like Copernicus or those studying gas combustion, could move between different patrons (kings or regions) when rejected. This environment allowed radical ideas, initially dismissed, to eventually gain traction and form the basis of modern science, a stark contrast to the centralized, franchise-focused models of other major civilizations, and a testament to the power of nurturing unconventional thinking.

Rules for Nurturing Innovation (Loonshots)

Practical takeaways from this episode

Do This

Create life at 32°F: separate innovative 'artists' from operational 'soldiers' but ensure dynamic exchange in both directions.
Be a gardener, not Moses: nurture the balance between these two groups, rather than dictating the 'holy idea'.
Love your artists and soldiers equally: respect and value both innovation and execution.
Challenge accepted beliefs: nurture 'loonshots' that do what everyone says can't be done.
Persist through failures: true breakthroughs often come after initial setbacks.

Avoid This

Don't expect great ideas to come only from startups or individuals; structure matters.
Don't let either the 'artist' or 'soldier' group dominate; maintain balance.
Don't dismiss ideas that seem crazy; they might be 'loonshots' that transform industries.
Don't rely solely on 'fast fail and pivot' for deep breakthroughs; persistence through failure is key.
Don't operate on a 20th-century model in the current era; embrace disruption where needed.

Common Questions

A moonshot is a big, ambitious goal that is widely applauded and understood, like putting a man on the moon. A loonshot, however, is a transformative idea that is often initially dismissed or ridiculed, such as Robert Goddard's ideas about rockets. Loonshots challenge accepted beliefs and are initially championed by those who are seen as 'crazy'.

Topics

Mentioned in this video

People
Vannevar Bush

An engineer, inventor, and organizational genius who played a crucial role in mobilizing US science and technology during World War II and later influenced national research infrastructure.

Franklin Roosevelt

President of the United States during World War II, who met with Vannevar Bush and authorized the creation of a new group to develop advanced weaponry.

Alan Turing

A mathematician who, according to popular culture, helped win World War II through code-breaking. The speaker clarifies that code-breaking played a minimal role in the Battle of the Atlantic.

Alexander Graham Bell

Inventor of the telephone, whose company faced a crisis due to milking its patent, leading to a transformation under Theodore Vail and the creation of Bell Labs.

JP Morgan

An influential financier who bought stock in the struggling Bell Telephone Company, took over, and installed Theodore Vail to lead its transformation.

Theodore Vail

Installed by J.P. Morgan to lead the Bell Telephone Company, he envisioned a national network and fostered innovation, leading to the creation of Bell Labs.

Frank Jewett

Head of Bell Labs during World War II and Vannevar Bush's mentor, he was a key figure on Bush's wartime team.

Steve Jobs

An example of a leader who initially failed by favoring 'artists' (innovators) over 'soldiers' (executionists) at Apple, but learned to appreciate both upon his return.

Tim Cook

Known for his operational expertise ('Attila the Hun of inventory') at Compaq, he represents the 'soldier' aspect needed alongside 'artists' like Johnny Ive to balance innovation and execution at Apple.

Eben Cena

An Islamic scholar and author of a key medical textbook that was widely used in Western Europe for seven hundred years, highlighting the multicultural journey of knowledge.

Robert Goddard

A pioneer of liquid-fueled rockets whose revolutionary ideas were initially ridiculed by the New York Times but later formed the basis for advancements in rocketry.

John F. Kennedy

Announced the ambitious goal of putting a man on the moon in 1961, an example of a 'moonshot' idea that was widely applauded.

Islamic astronomers

Provided crucial mathematical steps borrowed by Copernicus, highlighting the multicultural contributions to the birth of modern science.

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