Allowing employees to select their incentives increases both the quantity and quality of their ideas. Photo via Getty Images

Companies can increase not only the volume but also the quality of employee suggestions and ideas by offering rewards and a choice, according to a study we published in 2022.

We conducted the study on 345 telemarketers at a call center in Taiwan, which already had a suggestion program set up to solicit creative ideas to improve the organization. The company rewarded those who suggested ideas deemed the most valuable by giving them a trophy.

We wanted to see how tweaking the reward changed the quantity and quality of suggestions. So we invited the employees to submit ideas and that if their suggestions ranked among the top 20% most creative ideas – as evaluated by a team of managers and researchers – they would receive one of four rewards: US$80 in cash for themselves, $80 to share with colleagues, $80 to give to a preferred charitable organization or priority when selecting days off. About half of the employees were offered a choice of the four rewards they would receive for submitting ideas. We then randomly assigned one of the four rewards to the remaining employees.

In total, we received and evaluated 144 ideas over a one-month period.

We found that employees who were given a choice of reward submitted 86% more ideas than those who were told what they would be getting. Moreover, the average creativity score of their ideas was 82% higher. Overall, our suggestion program elicited double the number of ideas as the company’s own program and resulted in ideas that were ranked 84% more creative.

Why it matters

Soliciting employee ideas can be a key driver of innovation in organizations.

When employees share their ideas about products, services or policies using a suggestion program, an organization can take those ideas and refine and then implement them.

These implemented ideas can enhance an organization’s ability to adapt and compete. A 2003 study of 47 organizations found that ideas submitted to employee suggestion programs saved those organizations more than $624 million in a single year.

Our own study suggests small incentives could have a significant impact on the quantity and quality of those employee suggestions.

What’s next?

Research is still needed on whether there is an optimal number of rewards that organizations should offer to get more submissions. One past study found that when employees were asked to choose from a large set of rewards, they felt overwhelmed and produced few ideas.

Future research can also test whether our results can be found in other types of organizations, with employees in other types of jobs and in other parts of the world. We plan to examine these issues in our future studies of suggestion programs.

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This article originally ran on Rice Business Wisdom and was based on research from Jing Zhou, the Mary Gibbs Jones Professor of Management and Psychology in Organizational Behavior at the Jones Graduate School of Business of Rice University.

NASA selected 12 companies to provide services to its ISS program and five hail from just down the road of the program. Photo via nasa.gov

5 Houston-area space companies score ISS contracts with NASA

ready for takeoff

NASA has tapped a dozen companies to work on services for the International Space Station Program, and five come from the greater Houston region.

Houston-based Aegis Aerospace Inc., Cimarron Software Services, JES Tech, and Oceaneering were are all admitted to the program, as was Webster-based Leidos. The companies, along with the other seven selected, will provide research, engineering, and/or mission integration services to the ISS.

The program, which is based at NASA’s Johnson Space Center in Houston, is supported by a $478 million Research, Engineering & Mission Integration Services-2 or REMIS-2 contract, according to NASA.

The other selected companies are:

  • Axient Corp, based in Huntsville, Alabama
  • Consolidated Safety Services, based in Exploration Park, Florida
  • KBR Wyle, based in Fulton, Maryland
  • Metis, based in Albuquerque, New Mexico
  • Tec-Masters, based in Huntsville
  • Teledyne Brown Engineering, based in Huntsville
  • University of Alabama at Birmingham, Alabama

"The companies will provide spaceflight, ground hardware and software, sustaining engineering functions and services, payload facility integration, and research mission integration operations services," reads a NASA news release. "The majority of the work will take place at contractor facilities across the country. Services also may be required at other NASA centers, contractor or subcontractor locations, or vendor facilities as requirements warrant."

Each of the selected companies will receive a "multiple-award, indefinite-quantity contract with firm-fixed price and cost-plus-fixed-fee task orders." The contract officially began January 12 and extends through Sept. 30, 2030, with an option to extend through Sept. 30, 2032.

Half of the selected companies — Aegis, Cimarron, Consolidated Safety Services, JES Tech, Metis, and Tec-Masters — are small businesses and were selected as a part of the contract's small business reserve.

Houston-based Eden Grow Systems hopes to disrupt the agtech industry and revolutionize — and localize — produce. Photo via edengrowsystems.com

Houston startup with next-gen farming tech calls for crowdfunding as it plans to grow

seeing green

Whether it’s on Mars or at the kitchen table, entrepreneur Bart Womack wants to change what and how you eat.

But the CEO and founder of next-generation farming startup Eden Grow Systems is seeking crowdfunders to help feed the venture.

The company evokes images of a garden paradise on earth. But the idea behind the Houston-based NASA spinoff came from a more pragmatic view of the world. Womack’s company sells indoor food towers, self-contained, modular plant growth systems built on years of research by NASA scientists looking for the best way to feed astronauts in space.

The company has launched a $1.24 million regulated crowdfunding campaign to raise the money it needs to scale and expand manufacturing outside the current location in Washington state.

Additionally, the U.S. Air Force recently chose Eden as a food source for the U.S. Space Force base on remote Ascension Island, in the Atlantic Ocean, Womack tells InnovationMap. Another project with Space Center Houston is also in the works.

“We want to be the government and DOD contractor for these kind of next-generation farming systems,” he says.

The Houston-based company includes former NASA scientists, like recent hire Dr. L. Marshall Porterfield, of Purdue University, as an innovation advisor.

Womack, a former digital marketer, Houston public channel show host, night club owner and entertainment entrepreneur, left those ventures in 2012, after the birth of his first child. While taking a year to study trends research, in 2014, what he read intrigued and alarmed him.

“I’ll never forget, I came across a report from Chase Manhattan Bank….of the top 10 disruptive investment sectors, over the next decade,” he says. “At the very top of the list was food.”

Bart Womack founded Eden Grow Systems in 2017. Photo courtesy

His conclusions on the fragility of the world’s food supply system, due to overpopulation, and scarcer land, led him to launch Eden in 2017, funded by venture capital firm SpaceFund, Womack, his family, friends and angel investors.

Womack believes “black swan” events will only increase, disrupting the food supply system and further jeopardizing food supplies.

“We’re going to enter a period of hyper novelty in history,” Womack says.. "The system we’ve built for the last 100 years, the super optimized system, is going to begin to break apart."

To avert a centralized food production outcome, operated by corporate giants like Amazon or Walmart, Womack’s vision offers a decentralized alternative, leaving it in local hands.

With $2 million put into the company so far and a half million-dollars in sales last year, Womack argues that Eden has achieved much and can make food independence within reach for everyday families.

The company commercialized NASA technology to fill what it viewed as “a huge gap within the controlled…agricultural space.”

The tower is the building block of a modular, automated and vertical indoor plant growth system, with calibrated misting, fans, and LED lighting, controlled by an app.

The company website touts the towers as an easy way to grow plants like lettuce, carrots, tomatoes, and potatoes, with little water, no soil, and lots of air, without the expense and work of cultivating an earth-based garden.

For those who want to eat more than greens, the towers provide a way to breed fish and shrimp in an aquaponic version, recycling fish waste as plant fertilizer.

However, big plans come with big costs. The towers range in price from $5,000 to $7,000, although payment plans for those who qualify make it affordable.

Eden has sold around 100 of their towers so far, to a variety of customers. But rising costs and shipping delays have led to a a three-month backlog.

The manufacturing and shipping associated with larger installations means that even if the company made a million-dollar sale, delivery of the product would take a year.

“One of the hardest things…as a start-up, the last couple of years, is trying to narrow down exactly where the biggest payback is,” Womack says. “There is the lower hanging fruit, of small sales to individual buyers, but there’s the larger fruit of institutional buyers. But they can take months and years to convert into an actual buyer.”

Customers include several universities, including Texas A&M University and Prairie View A&M University, and talks are underway with other large academic institutions.

For now, attracting investors so the company can reach its funding goal poses the biggest challenge.

“Texas investors are very, very hard-nosed, and they’re not like West Coast investors. They want to understand exactly how they’re going to get their money back, and exactly how quickly,” he says.

Womack says the crowdfunding round would allow the company to expand manufacturing operations into Houston, deliver product faster, and invest in advertising.

“When we complete this round, and become completely self sufficient, we’re planning on moving to a $25 million valuation,” Womack says. “We can show, given money, we can scale the company.”

The city of Nassau Bay, next to NASA’s Johnson Space Center, has purchased towers and plans to purchase more, not for the production of food, but to grow ornamental flowers.

Womack says that city officials there found that it’s cheaper to grow the decorative plants themselves, rather than buying them.

The towers are adaptable, and can grow not only food but cannabis and other plants, and if buyers want to use them other purposes, that adds to the product’s appeal, Womack says.

Eden has also sold some towers to Harris County Precinct 2 and the city of Houston, as part of a project he says will turn food deserts throughout the area into “food prosperity zones.”

“Our goal is to be the farming equivalent of Boeing,” Womack says.

For the third year, Rice University has tapped 10 Rice Innovation Fellows working in engineering and materials science fields to support. Photo via rice.edu

10 Houston scientists named to fellowship for turning research into businesses

top of class

Rice University has announced its latest cohort of fellows who aim to translate research into real-world startups.

The 2024 cohort of Rice Innovation Fellows is the third of its kind since the university's Office of Innovation and The Liu Idea Lab for Innovation and Entrepreneurship (or Lilie) launched the program in 2022. The group includes 10 Ph.D. and postdoctoral students working in engineering and materials science fields.

The program provides personalized mentorship and up to $20,000 equity-free funding.

According to Lilie, the 10 members of the 2024 cohort are:

  • Barclay Jumet, a Ph.D. candidate in the department of mechanical engineering, working under Dan Preston and specializing in mechanics, thermal systems and wearable technologies. InnovationMap covered his recent technology here.
  • Tianshu Zhai, a Ph.D. student studying materials science specializing in hexagonal boron nitride-based thermal interface materials
  • Zachary Kingston, a postdoctoral research associate and lab manager for the Kavraki Lab in the Computer Science department at Rice, working under the direction of Dr. Lydia Kavraki, a pioneer in the field of robot motion planning. Kingston is developing a novel approach to high-performance, low-cost robot motion planning with Wil Thomason.
  • Soobin Cho, a Ph.D. student and co-founder of Duromem, which created the Dual-Role Electrically Conductive Membrane to improve existing water treatment systems
  • Sara Abouelniaj, a Ph.D. candidate in Material Science and Nanoengineering and founder of Graphene Grids LLC, which is exploring opportunities to diversify its range of grid types services offered
  • Alisha Menon, is founding a medical device startup that's developing wireless, AI-enabled patient monitoring devices for babies in the NICU. Her work is being done in collaboration with the Texas Medical Center and Rice, with support from NSF and the Southwest Pediatric Device Consortium.
  • Wil Thomason, a CRA Computing Innovation postdoctoral fellow in the Kavraki Lab at Rice University who is developing low-cost robot motion planning with Kingston
  • Jeremy Daum, a Ph.D. candidate at Rice in the Materials Science department working on a a novel production method to create photocatalysts
  • Jonathan Montes, a Ph.D. candidate in Bioengineering focused on combating neurodegenerative diseases with highly selective neuromodulation
  • Andrew (AJ) Walters, a Ph.D. student in Bioengineering working in the labs of Dr. Caleb Bashor (Rice) and Dr. Scott Olson (UTHealth Houston McGovern Medical School) who's building an accessible allogeneic cell therapy to treat inflammation disorders and potentially cancer. He was awarded a three-year NSF Graduate Research Fellowship in 2022.

Over the last three years, Innovation Fellows have brought in more than $6 million in funding for their ventures, according to Rice.

Last year, the cohort of 10 included doctoral and postdoctoral students working in fields from bioengineering and chemistry to civil and environmental engineering.

Late last year, Lilie also announced its new entrepreneurship council known as Lilie’s Leadership Council. The group is made up of 11 successful business leaders with ties to Houston from the likes of co-founder Frank Liu to former Houston Mayor Annise Parker and several other CEOs and board members of successful companies. The council members agreed to donate time and money to the university’s entrepreneurship programs.

The 250,000-square-foot building is the new home for four key research areas at Rice: advanced materials, quantum science and computing, urban research and innovation, and the energy transition. Photo courtesy of Rice

University opens its newest, largest campus research facility in Houston

research @ rice

As the academic year officially kicks off, professors have started moving in and Rice University has opened its largest core campus research facility, The Ralph S. O’Connor Building for Engineering and Science.

The 250,000-square-foot building is the new home for four key research areas at Rice: advanced materials, quantum science and computing, urban research and innovation, and the energy transition. The university aims for the space to foster collaboration and innovation between the disciplines.

"To me it really speaks to where Rice wants to go as we grow our research endeavors on campus," Michael Wong, Chair of the Department of Chemical and Biomolecular Engineering, whose lab is located in the new facility, said in a video from Rice. "It has to be a mix of engineering and science to do great things. We don’t want to do good things, we want to do great things. And this building will allow us to do that."

At $152 million, the state-of-the-art facility features five floors of labs, classrooms and seminar rooms. Common spaces and a cafe encourage communication between departments, and the top level is home to a reception suite and outdoor terrace with views of the Houston skyline.

It replaces 1940s-era Abercrombie Engineering Laboratory on campus, which was demolished in 2021 to make way for the new facilities. The iconic sculpture "Energy" by Rice alumnus William McVey that was part of the original building was preserved with plans to incorporate it into the new space.

The new building will be dedicated to its namesake Ralph O'Connor on Sept. 14 in Rice's engineering quad at 3 p.m. O'Connor, a Johns Hopkins University grad, became a fan Rice when he moved to Houston to work in the energy industry in the 1950s.

The former president and CEO of the Highland Oil Company and founder of Ralph S. O’Connor & Associates left the university $57 million from his estate after he died in 2018. The gift was the largest donation from an estate in Rice's history and brought his donations to the university, including those to many buildings on campus and endowments and scholarships, to a total of $85 million.

“How fitting that this building will be named after Ralph O’Connor,” Rice President Reginald DesRoches said in a statement last summer. “He was a man who always looked to the future, and the future is what this new engineering and science building is all about. Discoveries made within those walls could transform the world. Anybody who knew Ralph O’Connor knows he would have loved that.”

The dedication event will be open to the public. It will feature remarks from DesRoches, as well as Rice Provost Amy Dittmar, Dean of the Wiess School of Natural Sciences Thomas Killian, Chair of the Rice Board of Trustees Robert Ladd and Dean of the George R. Brown School of Engineering Luay Nakhleh. A reception and tours of the new building will follow.

A team of researchers out of the Texas Center for Superconductivity at the University of Houston has discovered a faster way of transportation. Photo via UH.edu

Houston researchers identify new tech for unprecedented transportation speeds

zoom, zoom

Researchers at the University of Houston and in Germany released a proof-of-concept paper this month that uncovers a new, fuel efficient means of transportation that they say could one day make air travel and traditional freight transport obsolete.

"I call it a world-changing technology,” Zhifeng Ren, director of the Texas Center for Superconductivity at UH and author of the paper, said in a statement.

Published in the journal APL Energy, the paper demonstrates a new way of using superconductors to move vehicles along existing highways while transporting liquified hydrogen at the same time. Until now, the costs of using superconductivity for transportation has held back innovation in the field. This model also reduces the need for a separate specialized pipeline system to transport liquified hydrogen that's able to keep the fuel source at minus 424 degrees Fahrenheit.

The model uses a similar concept to what's behind already existing magnetically levitating trains that operate on a magnetized rail, with superconductors embedded in the train's undercarriage. In Ren's model, superconductors would be embedded into existing highway infrastructure and magnets added to the undercarriages of vehicles. Liquified hydrogen would be used to cool the superconductor highway as vehicles move across it.

The idea could apply to trains, cargo trucks, and even personal cars, according to the paper. Better yet, the vehicles could travel up to 400 mph while on the highway. Drivers would then use the vehicle's traditional or electric motor once they exit.

"Instead of 75 mph, you could go 400 mph, from Houston to Los Angeles, or Houston to New York in just a few hours," Ren said in a statement.

Ren adds that this method would also require drivers to consume less fuel or power, cutting down on cost and environmental impact.

Technical and economic details still need to be addressed. But Ren believes "the project’s potential long-term economic and environmental benefits, would outweigh the upfront costs," according to a statement.

The paper joins a number of other innovative concepts coming out of UH in recent months. Recently, a research team at the university upgraded at-home rapid COVID-19 testing to make results more detectable via glow-in-the-dark materials.

Late last year the university also opened its

new tech transfer facility, and early this year it signed an agreement with India to bring a data center focused on energy to campus.


cropfilter_vintageloyaltyshopping_cartlocal_librarydeleteThe illustration shows the theorized superconducting highway for energy transport and storage and superconductor levitation. Image via UH.edu

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10+ can't-miss Houston business and innovation events for March

WHERE TO BE

From networking meetups to speaker expert speaker summits, March is filled with opportunities for Houston innovators.

Here's a roundup of events you won't want to miss out on so mark your calendars and register accordingly.

Note: This post may be updated to add more events.

 March 6 — Women's History Month Mixer

Bag Talk and Jem are collaborating to produce a dynamic Rooftop Mixer, designed to bring together entrepreneurs, startups, founders, tech professionals, health experts, and investors.

In honor of Women's History Month, the speaker panel will feature trailblazing women entrepreneurs who have redefined success in their respective fields. Gain invaluable insights, strategies, and inspiration as they share their journeys in business, innovation, and leadership.

This event is Wednesday, March 6, from 6 to 9 pm at Reset. Click here to register.

 March 7 — Energy Workforce of the Future Career Fair & Summit

A variety of Gen-Z speakers will be unpacking the future of working in the energy industry. Take advantage of this unique occasion to showcase your skills, exchange ideas, and build valuable connections. Denise Hamilton will be the keynote speaker followed by a host of other energy innovators.

This event is Thursday, March 7, from 7:30 am to 4 pm at the Briar Club. Click here to register.

 March 7 — GB Spring Mixer 2024

Meet community members, network, and develop relationships with local businesses at this event for Pearland's small business community. This mixer is sponsored by Pearland Innovation Hub, a home for innovation, entrepreneurship and small business growth, custom built for Pearland's business community.

This event is March 7, from 6:30 to 8:30 pm at The Cannon. Click here to register.

 March 14 — Pi Day With Portal Innovations

TMC Helix Park will host a Pi Day celebration at TMC3. All scientists, researchers, math experts, and innovators are invited to come and recognize the significant impact Pi (3.14) has had in shaping our world today and continuously in the future. Enjoy networking opportunities with Pi bites, games, and prizes.

This event is Thursday, March 14, from 12 to 1:30 pm at TMC Helix Park. Click here to register.

 March 14 — FanTechstic Mixer

This event is a mixer for tech professionals and tech enthusiasts. Connect with potential employers, collaborators, and mentors who can shape the trajectory of your career.

This event is Thursday, March 14, from 5:30 to 9:30 at Luxtrium Event Venue. Click here to register.

March 16 — Generative AI: Understanding and Fine Tuning LLM

This webinar dives deep into Generative AI, the game-changer that creates images from text, crafts personalized campaigns, and writes reports in seconds. Attendees will learn the innerworkings of Large Language Models (LLMs), the engines behind this revolution. Learn practical skills, explore real-world use cases, and future-proof your career.

This event is Saturday, March 16, from 10 am to 12 pm at Houston Translations. Click here to register.

March 18-22 — CERAWeek by S&P Global

For the 42nd time, CERAWeek is convening energy leaders from around the world for a conference, this year with its theme of "Multidimensional Energy Transition: Markets, climate, technology and geopolitics" that will zero in on the world's journey to zero-carbon.

The event is Monday, March 18, to Friday, March 22, in Downtown Houston. Click here to register.

March 21 — Global Energy: Qatar's LNG Expansion

At this event, expert panelists will delve into issues of investment partnerships, destination markets for gas supply, and the practicalities of expanding fossil fuel exports amid global decarbonization goals. Qatar is in the midst of expanding its LNG export capacity, increasing from 77 million tons per annum to 126 million by 2027.

This event is Thursday, March 21, from 11:30 am to 1:30 pm at Rice University's Baker Institute for Public Policy. Click here to register.

March 21 — Energy Underground - Early Design Partnerships

Meet up with renewable energy product developers, service providers, energy transition thought leaders, and more at this networking event. Make industry contacts, secure financing, share deals, or recommend talent looking to enter the energy workforce. This month meeting is open to everyone, but focused on connecting energy software founders with VP's of Operations and Projects at energy companies.

This event is Thursday, March 21, from 11:30 am to 2 pm at The Cannon. Click here to register.

March 26 — Bots & Brews

This is the spring meetup of the Energy Drone / Robotics / Data crowd, with over 200 leaders attending. Enjoy beer, bites and bots. Check out the latest robotics and data / AI tech, while hearing new case studies and connecting with some of the biggest leaders in energy and autonomous systems.

This event is Tuesday, March 26, from 5:30 to 7:45 pm at the Ion. Click here to register.

March 27 — Energy Industry Young Professionals Gumbo Cook-Off & Technology Showcase

Explore cutting-edge products, network with industry professionals, and savor delicious creations in the Gumbo Cook-Off. Make it a night to remember with live music, a beverage garden, and fundraising efforts to support the energy industry and first responders.

This event is Wednesday, March 27, from 5 to 9 pm at Bad Astronaut Brewing Co. Click here to register.

March 27 — 2024 CultureMap Houston Tastemaker Awards

The CultureMap Tastemaker Awards is an annual celebration of Houston's top restaurant and bar talent, as selected by their peers. Check out this signature in-person tasting event and awards ceremony. Celebrate all of the nominees and the winners, while sampling bites and sipping specialty drinks along the way.

This event is Wednesday, March 27, from 7 to 10 pm at Silver Street Studios. Click here to register.



Houston AI femtech startup raises $2M round to expand platform to B2B opportunities

fresh funding

A Houston-based startup that's improving health and wellness for women with its artificial intelligence-backed platform has raised a bridge round of funding.

Ema closed its latest bridge round, bringing its total funding to nearly $2 million. The company received investment from Kubera's Venture Capital and Victorum Capital, which joined existing investors Hearst Labs, Wormhole Capital, Acumen America, and Techstars.

Ema strives to deliver "personalized, empathetic, and evidence-based support" to its users through its generative AI technology. The platform has more than 100,000 users, and has expanded into the B2B sector with $100,000 in contracts within just 30 days after pivoting to this model, according to the company.

"Ema was born from a deep-seated belief in the transformative power of AI to make women's health care more accessible and effective," Amanda Ducach, CEO of Ema, says in a news release. "Our recent funding and rapid B2B growth validate our approach and enable us to further our mission."

The company, originally founded as SocialMama looking to connect mothers digitally to each other and, later, physicians and experts, rebranded a year ago. The platform aims to be comprehensive and holistic to positively affect women's health and wellness journeys across life stages and categories.

"Our vision extends beyond immediate health concerns; we see Ema as a companion that can support women throughout their lives, offering guidance, support, and understanding whenever they need it," Ducach explains. "This latest round of funding will help us expand into new areas, including employee benefits, where we believe we can make a substantial difference."

Amanda Ducach founded the company in 2019. Photo via Twitter

Why founders need to be prioritizing problem-solution fit, according to this Houston innovator

guest column

Over the past 10 years I have been so incredibly fortunate to work for and with dozens of startup ecosystems, startup development organizations, competitions and accelerators.

Through these interactions I have mentored, advised and coached over 500 startups and as I've reflected back on these interactions and relationships I have observed some crucial insights that I am humbled to be able to share here with you — starting with the importance of problem-solution fit.

My top observation is that the success of founders often hinges on their focus on a specific problem, from the perspective of the problem holder (which is not always their customer) and particularly a problem set they care deeply about. This focus is far more impactful than merely having a great idea. Founders with a laser focus on a problem, showed remarkable advantages. These founders were:

  • Quicker in Validating Assumptions: Their problem-centric approach allowed them to more rapidly test and validate their hypotheses about market needs and solutions.
  • Focused on Data-Driven Decision Making: They were more receptive to letting data guide their strategic decisions, leading to more grounded and effective strategies.
  • Agile in Pivoting: When confronted with challenges or new information, these founders could pivot more efficiently, as their commitment was to solving the problem, not just to their solution.

This problem-focused mindset proved to be a significant differentiator in their journey from ideation to success.

For these reasons, the philosophy that problem-solution fit leads development, has become a cornerstone in my approach to fostering innovation. It underscores the need for startups and organizations alike to delve deeper into understanding the real challenges they face, the first order problems, which in turn opens doors to more impactful and sustainable solutions.

Most recently, In my time at MassChallenge, my approach to problem identification diverged significantly from industry norms. The crux of my strategy was to shift the founders' focus from their innate bias towards their innovation or the allure of monetary gain to a deeper connection with the underlying problem — transforming the innovator's bias into the innovator's gift.

In my interactions, I often met two predominant types of founders:

  • Technical Founders: These individuals were deeply enamored with the technology or product they created. Often coming from the research world or a technical / engineering background within one industry. Their passion was more about the innovation itself rather than its impact or the problem it aimed to solve.
  • Profit-Oriented Founders: These founders were driven primarily by the potential for financial success. Often coming out of Business school, consulting firms or investment / banking background. Their focus was often on the market opportunity, timing, size and scale rather than the problem needing a solution.

I am not a believer that anyone fits into a box but these were broad commonalities I observed over time. While neither mindset is inherently flawed, it became evident that a third type of founder, those who developed a passion for solving a specific problem — often tied to a personal or emotional connection — tended to achieve greater success.

The challenge lay in transforming the mindset of founders who initially did not have this problem-centric focus. To do this, I employed a series of exercises and mental experiments that anyone can do aimed at uncovering the true purpose behind their ventures. Two pivotal tools in this process was Simon Sinek's Golden Circle, which helped delve into the why behind their companies and Ash Maurya’s Problem Discovery process that he details in Lean Mastery.

These exercises were transformative. Founders typically developed a stronger attachment to these newly framed problem statements than to their initial motivations. It aligned their endeavors with a purpose that was emotionally significant to them, thereby enhancing their commitment and effectiveness in addressing the problem.

This approach to problem identification was not just about finding a market fit; it was about aligning the founders' core values and motivations with the problems they aimed to solve, thereby unleashing the true potential of their innovations.

One of the most significant challenges was persuading founders to shift their mindset from their initial focus to a problem-oriented approach. This transition was often difficult, as change is inherently challenging, especially when founders have invested months or years in developing something they feel deeply connected to. The key was to reframe and redirect their passion towards understanding and solving the core problem for the problem holders that were most affected. This shift in focus wasn't always successful, but when it did take effect, it markedly increased the founders' likelihood of success.

Part of the difficulty in effecting this founder mindset shift stemmed from the overwhelming amount of content directed at startup founders, emphasizing the immediate need for customer feedback and early creation of MVP’s. While these aspects are crucial (at the right time), there is a noticeable gap in guiding founders towards the critical step of identifying problem-solution fit earlier in the process. As a result, many founders fell into the trap of building upon untested assumptions, believing that once they've created a product or identified a revenue model, the journey was set on the right path.

This challenge wasn't confined to startup founders alone, it is prolific across the innovation economy. Corporates, governments, and universities also displayed resistance in identifying their core, underlying problems. They often focused on surface-level issues or immediate technological needs without recognizing the structural problems causing these more visible issues.

As a founder, an innovator, or anyone passionate about bringing new solutions to the masses, this shift in perspective is crucial. It allows founders and organizations to understand their challenges more deeply, leading to more effective and sustainable solutions. It isn’t just about solving the problems they could articulate, but about uncovering the first principles issues that needed addressing.

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Jon Nordby is managing partner at Anthropy Partners, a Houston-based investment firm, and professor of entrepreneurship at the University of Houston.