Leith’s Guide to Co-creation

By Jack Martin LeithDirector, Leith Co-creationLondon | United Kingdomwww.leithcocreation.com

Version 11

Why did I create this guide?Having already spent 22 years fostering co-creation in organisations ranging from National Association of Street Artists to Royal Dutch Shell, where I was involved in the acclaimed GameChanger programme, I founded Leith Co-creation in April 2010 to foster holistic co-creation in organisations and society.Contrary to popular belief, co-creation is not just a way of creating new products in partnership with customers.It’s also a way of solving a complex or intractable problem, or unlocking the potential of the assets you own or steward, or accomplishing systemic change. Some global corporates have gone all the way and created an organisational culture in which every employee is a co-creator.

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Co-creation is nothing new. It has been around since the birth of humanity. Forming a relationship is a process of co-creation. Making a home is a process of co-creation. Breeding children is a process of co-creation.The scope of co-creation is vast – much bigger than most people realise, including the pundits. The discipline of co-creation is evolving rapidly, and it’s important that we all keep up to speed.I have created this guide to share what I have learned about co-creation over more than two decades. I hope you will find it useful. Your comments, suggestions and questions are welcome.

What is co-creation?

A working definitionCo-creation brings together an organisation’s internal and external stakeholders to jointly solve a complex or intractable problem, accomplish systemic change, unlock potential, or bring forth the new.Co-creation is not just about creating new products, and not just about innovation:

Innovation Bringing into being something new that generates stakeholder value

Change Bringing about a shift from the existing state of affairs to the desired state of affairs

Problem solving Eliminating a malfunction so that things are restored to full working order

Development Unlocking potential by leveraging existing assets, or by acquiring new assetsTh

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Basic vs. holistic co-creationBASIC CO-CREATION HOLISTIC CO-CREATION

Co-creation is limited to product innovation

Co-creative practice is employed not only to create products, services, experiences and other value generators, but also to solve complex or intractable problems, unlock potential, and accomplish organisational or social change

The co-creators are focused on fulfilling the value requirements of customers

The co-creators are focused on fulfilling the value requirements of all stakeholder groups

Within the enterprise, cross-functional co-creation is limited or non-existent

Within the enterprise, co-creation is undertaken by cross-functional teams who see their co-creation projects through to completion

The co-creation capability of the enterprise resides in a limited range of functions

Co-creation is an enterprise-wide capability, and co-creative principles and practice are woven into the organisational culture

Engagement paradigm True co-creation paradigm

Co-creation: the big pictureThe organisationFunctional areas: operations, marketing, finance, talent development etc.Other stakeholder groupsCustomers, suppliers, partners, investors, local communities etc.Four broad types of co-creative practiceCo-creation 1: SimpleCo-creation 2: RelationalCo-creation 3: SystemicCo-creation 4: TranscendentValue generatorExamples include products, services, experiences, work practices, and organisational cultures.Generated valueValue generated by the value generator.Other valueOther value received by the co-creators, such as financial reward, social interaction, the feeling of being part of something of significance.

The co-creative processPrepare, Conceive, Develop, Realise are the four stages of the problem solving, development, innovation or change process.Co-creation can be used to solve a complex or intractable problem, accomplish systemic change, unlock the potential of existing value generators, or create a new value generator.

Holistic co-creation:some strategic questions

• THE CO-CREATORS– Co-creation team Who needs to be a member of the co-creation

team? (A principle of Co-creation 3: Include upstream all those whose contribution, co-operation and consent will be required downstream.) 

• The organisationFunctional areas: operations, marketing, finance, talent development etc.

• Other stakeholder groupsCustomers, suppliers, partners, investors, local communities etc.

– Required contribution What contribution is required from each individual co-creator or group of co-creators?

– Co-creator inclusion Will every co-creator remain part of the creative process all the way through to completion? If not, what are the implications?

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– Power dynamics Will the co-creators work together as equals, or will one party call the shots? If the latter, what are the implications?

– Communication How will communication between the co-creators, and between the co-creators and other interested parties, be enabled?

• CO-CREATIVE PROCESSAt which stage of the co-creative process (Leith Co-creation defines these as preparation, conception, development, realisation) is the required contribution to be made?– See Open Innovation Goes All the Way, by Stefan Lindegaard

• APPLICATIONSCo-creative practice can be applied to solving a complex or intractable problem, accomplishing systemic change, unlocking the potential of existing value generators, or creating a new value generator

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– Application: change If co-creative practice is being deployed to create organisational change, what has already been decided (e.g. vision, strategy), and what is open for co-creation (e.g. implementation plans)? 

• VALUE GENERATORWhat is being co-created? For example: a product, a service, an experience, a work practice, an organisational culture.

• GENERATED VALUEWhat are the value requirements of each stakeholder group, including the co-creators? What value can be created for each group? What existing value must be preserved? How can any destroyed value be replaced?

• OTHER VALUEOther value received by the co-creators, such as financial reward, social interaction, the feeling of being part of something of significance.

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• ADDITIONAL QUESTIONS– Co-creation, consultation or collaboration? Is this true co-

creation, or are people being invited to help shape or implement a scheme that has already been devised? If the latter, you are probably talking about consultation or collaboration rather than co-creation.

– Management and leadership How will the co-creative endeavour be managed and led? How will decisions and agreements be made?

– Invisible forces Do you acknowledge the existence of  the creative energy that Ted Matchett describes? If so, how can each person co-create in partnership with this energy?

What do I mean by ‘stakeholder’?1. An individual or organisation that derives value from the activities of a particular organisation, and therefore has an interest, or stake, in the ongoing existence and prosperity of that organisation. (Jack Martin Leith).2. Any group or individual who can affect or is affected by organisational purpose. (R Edward Freeman) An organisation’s stakeholder system is generally made up of the following stakeholder groups: employees, investors, customers, suppliers, strategic partners, trades unions, bankers, the media, and local communities.If we accept the definition offered by R Edward Freeman, the father of stakeholder theory, then Exxon’s stakeholder system includes Exxon protestors, and the stakeholder system of a police force includes criminals.

What do the co-creators co-create?They co-create value generators.

A value generator is value in latent form.Products, services and customer experiences are value generators. So are business strategies, marketing plans, corporate cultures, websites, and public facilities.A product does not generate value until it is consumed. A service does not generate value until it is used. An experience does not generate value until it is experienced.When businesses say they create value, they usually mean they create value generators.

CONCEPT

VALUE GENERATOR

MAXIMUM STAKEHOLDER VALUE

Why co-create?These are the main advantages of co-creation over conventional approaches to problem solving, development, innovation and change:• Co-creation harnesses the knowledge, wisdom and creativity of

a large number of people with diverse perspectives• A richer mix of ideas and views is generated• Insights are revealed that might otherwise remain

undiscovered• People are more committed to implementing the plan• ‘Resistance to change’ is treated as valuable feedback• Productive relationships with customers and other

stakeholders are engendered• There is greater likelihood of delivering breakthrough results• Results are much more likely to be sustainable• More value is generated for more people• Co-creating is a more fulfilling way of working

Bringing the new into being:five broad approachesAPPROACH > TELL SELL TEST CONSULT CO-CREATEWhat the leaders do Demand compliance Seek buy-in Invite response Request input Create with others

on an equal footing

What the leaders say

“This is the plan. Everyone must

adhere to it without deviation, or there

will be trouble.”

“This is the plan, the benefits of which

are asfollows … ”

“This is the plan. Tell us what you

think about it and we will consider

incorporating your ideas.”

“We are developing a plan and would like to solicit your ideas and opinions before putting pen

to paper.”

“We’ve got a blank sheet of paper. Let’s sit down and create the plan together.”

Does vision, strategy or plan already exist?

Yes(in final form)

Yes(in final form)

Yes(in draft form) No No

Who makes the final decision? Leaders Leaders Leaders Leaders Everyone

Communication method Top-down messages Top-down messages

Top-down and bottom-up messages

Top-down and bottom-up messages

Conversations

Level of ownership and commitment

Low High

Ability to respond to complexity Low High

Corresponding worldview

Newtonian-Cartesian

Newtonian-Cartesian

Newtonian-Cartesian Pre-systemic Systemic

TranscendentEngagement or co-creation? ENGAGEMENT CO-CREATION

The basic Tell–Sell–Test–Consult–Co-create model was originated by Bryan Smith and published in The Fifth Discipline Fieldbook, based on Robert Tannenbaum and Warren Schmidt’s groundbreaking 1957 Harvard Business Review article, How to Chose a Leadership Pattern. The model was elaborated by Jack Martin Leith.

LEVEL OF OWNERSHIP, AND COMMITMENT TO SEEING THINGS THROUGH TO COMPLETION

When to use each of the five approaches

TELL SELL TEST CONSULT CO-CREATE

CIRCUMSTANCES

TYPICAL ISSUE

HighLow

We want everyone to know what the company’s vision is

We want to hear employees’ problems, and their suggestions for tackling them

We want to foster a sense of community and belonging

We want people to be aware of the need to cut costs by 25%

We want people to adopt the new process or work practice that has been developed

We want breakthrough ideas

We want to inform everyone of the year-end results

We want people to recognise the need for change

We want to enable strategic conversations with diverse stakeholder groups

We want to show the new advertising campaign to the sales force

We want employees to implement the corporate strategy at local level

We want to co-create a vision of the future

We want to make an announcement to the media

We want to integrate the company we recently acquired

We want to solve an intractable problem

Issue / desired results / way forward are clear Issue / desired results / way forward are unclear

Low complexity High complexity

Low uncertainty High uncertainty

Pre-determined outcome Open outcome

Single stakeholder group / single agenda Multiple stakeholder groups / multiple agendas

What is a worldview?1. The overall perspective from which one sees and interprets the world. 2. A collection of beliefs about life and the universe held by an individual or a group. (Source: Dictionary.com) 3. An individual’s unquestioned assumptions about the nature of reality. A worldview is like the operating system in a computer, controlling operations behind the scenes but mostly outside the user’s awareness.When someone upgrades his or her worldview, certain things that were previously impossible become possible, a much wider range of options is available, and personal effectiveness is greatly enhanced.Learn about the Four Worldviews and their relationship with the Spiral Dynamics® development stages (PowerPoint document).

Some principles of holistic co-creation• Actions are determined by purpose• A shared vision of realised potential creates cohesion• By seeking to maximise value for the entire stakeholder

system, breakthrough results can be delivered and resistance to change eliminated

• People aren’t resisting change – they are signalling that their value requirements are not being fulfilled

• To sustain the organisation, sustain the entire stakeholder system

• In a complex adaptive system, behaviour is emergent• Only take action when the outcome of your last action is

known (Stafford Beer)• Create then adjust (Robert Fritz)• All sub-systems (e.g. stakeholder groups) have equal value

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• Include upstream all those whose contribution, cooperation and consent will be required downstream

• Systems are self-organising• Creating the new is more effective than solving problems

(Ron Lippitt)• Systemic change cannot be effected through non-systemic

thinking• Co-creation is a triple-loop learning process (being before

thinking, thinking before doing)• Project breakdown is to be welcomed as an opportunity for

breakthrough• Co-creation projects are learning laboratories for the wider

organisation, and lessons learnt need to be spread across the organisation

Note: many of the listed principles are based on systems thinking

Some co-creation toolsSELF AS TOOL• Seven Creative Powers• Nowhere Academy’s inspiring-innovation™ programmeTOOLS FOR CO-CREATING IN SMALL AND LARGE GROUPS• Co-creative workshops• Large-scale co-creative events using methods such as

Expeditions, Future Search, Open Space Technology, Real Time Strategic Change, SimuReal, and The World Café

• Grove-style templates, Celemi-style workmats, and other visual collaboration tools

• Collaborative workspaces• Customised social networking sites, such as those located on

the Ning and Groupsite.com platforms• Web conferencing, such as that provided by WebExTOOLS FOR TEAM AND ORGANISATIONAL LEARNING• Action learning• After action reviews

Some co-creation milestones1975 Edward Matchett’s book, Creative Action, is published by

Turnstone Press. Although Ted Matchett does not use the term co-creation, his book is a practical guide for those who wish to practice what Jack Martin Leith* later calls Co-creation 4, as revealed in these two passages:

”In Creative Action the intuitions continue in one unbroken stream; they are always in context with the work which the person has in hand, the human and external components linking up in the most glorious organic partnership.”“Begin to practice in earnest calling for help with ‘your’ creation. Make the ‘call’ outside and also deep within. It takes a special humility to be able to do this, for it means in effect that the act of creation is being shared.”

1980s Three co-creative conferencing methods come into being: Future Search, Open Space Technology and Real Time Strategic Change. The term co-creation is not associated with the methods until publication of The Fifth Discipline Fieldbook in 1994.

1988 Jack Martin Leith experiences Open Space Technology for the first time and adopts it as a method for organisations to use as a co-creation tool.

* Martin Leith became Jack Martin Leith in July 2006.

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Some co-creation milestones1994 In The Fifth Discipline Fieldbook, co-author Bryan Smith introduces his

Tell–Sell–Test–Consult–Co-create model. Smith presents co-creation as an effective way of creating a shared vision. Jack Martin Leith reads the Fieldbook and adopts the term co-creation. He elaborates Smith’s model to include strategy and plans in addition to vision, and links the model to co-creative conferencing methods. In 2010 he is still using this model.

1995 Julie Beedon, Anne Brooks, Paul Cox and Martin Raff launch Vista Consulting Team to help organisations use Real Time Strategic Change and other large group methods. Vista makes Bryan Smith’s model part of its consulting toolkit.

1995 Jack Martin Leith moves to Amsterdam and establishes The Centre for Large Group Interventions. Many of his clients in the Netherlands and the United Kingdom are using co-creation to some degree.

1999 Nick Udall sets up Limited Nowhere to foster co-creative practice. The company becomes Nowhere Group in 2001.

1999 Jack Martin Leith contributes a chapter, Creating Collaborative Gatherings using Large Group Interventions, to Gower Handbook of Training and Development. The chapter is about co-creation, although the author refers to it as collaboration.

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Some co-creation milestones2000 In their Harvard Business Review article,

Co-opting Customer Competence, C K Prahalad and Venkat Ramaswamy write about co-creating with customers.

2004 Prahalad and Ramaswamy develop their arguments further in The Future of Competition: Co-Creating Unique Value with Customers, published by Harvard Business School Press.

2003 Charles Trevail, Roy Langmaid and Clare Fuller launch Promise, describing it as “the world’s leading co-creation company”.

2005 Job Muscroft establishes Face, a co-creation planning agency that “uses co creation to enable the direct and active involvement of consumers with brands to deliver a range of insight, strategy, innovation and planning objectives”.

2008 HarperCollins publishes The Way of Nowhere, written by Nick Udall and Nic Turner. On page 21 the authors state: “The Way of Nowhere is based upon the philosophy of co-creation.”

2009 Promise publishes a report, Co-creation: New Pathways to Value, based on a study conducted by LSE Enterprise.

2010 Jack Martin Leith forms Leith Co-creation to foster co-creation in groups, organisations and communities.

About Jack Martin LeithI have been helping companies take a co-creative approach to innovation and organisational change for more than 20 years. Past clients include global corporates such as Royal Dutch Shell, where I was involved in the acclaimed GameChanger programme, GlaxoSmithKline, and ABN Amro Bank, as well as government bodies, the National Health Service, charities, and community arts organisations.My first encounter with the term co-creation came in 1994, when I discovered it in The Fifth Discipline Fieldbook. I immediately made co-creation the focus of my innovation and change consulting practice.During the mid 1990s I spent three years in Amsterdam running The Centre for Large Group Interventions, which helped companies and non-profit organisations use Open Space Technology, Real Time Strategic Change, Future Search and related methods as the basis for co-creative conferences.Before becoming an independent consultant, I was director of innovation and development at Leith & Price, a London-based company that provided business development services to clients in the advertising and marketing sector.I was born and raised in an east London funeral parlour, later becoming a boarder at Earls Colne Grammar School in rural Essex.My home is currently in London, United Kingdom.

Thank you for viewing Leith’s Guide to Co-creation.

If you would like to know more about co-creation, or if you are seeking assistance with a co-creative endeavour, please contact:

Jack Martin LeithDirector, Leith Co-creationBased in London, United KingdomTel: 07831 840541International: +44 7831 840541email: jack@leithcocreation.comwww.leithcocreation.com