Start Your Prize/Challenge Design by Defining the Problem

Albert Einstein once said that if given one hour to solve a problem, he would spend 55 minutes defining it. Whether it takes more than an hour or less, when designing an outcomes-based prize/challenge, follow Einstein’s example and prioritize problem definition — It’s a lot harder than it sounds! This blog looks at why it is important and provides some points to consider if you are on the fence about doing it.

Outcomes-based prizes/challenges reward the first or best solution to a defined problem. Accordingly, these approaches are most successful when their design takes into account the nature of the problem that they are trying to solve. Having a clear and common understanding of the problem itself, as early on in the design process as possible, helps to increase the likelihood that the prize/challenge will be able to deliver the outcomes that are being sought.

How you define the problem in the context of designing a prize/challenge depends on many factors, including the complexity of the problem itself. In a federal department context, you will probably also have to consider policy and operational needs. A few things to think about when it comes to problem definition and prize/challenge design are as follows:

• Do not rush (or skip!) defining the problem. Problem definition can be a messy process but don’t trick yourself into thinking that rushing through defining the problem will save you any time in the long run. In fact, without a clear understanding of the problem, you risk designing a prize/challenge that will not deliver the results that you seek. Think about it — if you do not know what it is that you want to tackle, how can you issue an effective call to action (i.e., the challenge statement), attract the best innovators, or assess the best solutions? How will you get support from stakeholders or approval from senior public leaders? Before you invest time and resources into the design process, set yourself up for success by taking the time to clearly define the problem.
• You may need to relook at the problem through a prize/challenge lens. It’s possible that the problem is an emerging issue and will naturally require you to do some research before you start to design the challenge. It’s also possible that you are already a subject matter expert on the problem of interest and may try to skip to the design. However, in order to adopt best practices, you may need to analyze the problem through the perspective of designing a prize/challenge. For example, is it an emerging issue where solutions are inevident? Do you know the current levers and barriers to innovation within your specific area? Do you know who potential innovators could be? For prizes/challenges, knowing the conditions of innovation that exist for the problem area is key. Be open to doing further research so that you can get the most out of prize/challenge design.
• Avoid thinking about specific solutions. As you work to define your problem, it will be impossible not to think about solutions. In fact, working through possible solutions can help to deepen your understanding of the issue at hand. What you want to avoid is focusing too much on a specific solution or you may end up introducing bias into the challenge design and limiting innovation. And quite honestly, if you are already aware of an awesome solution to the problem that could be implemented, you may want to think long and hard about why you are designing a prize/challenge rather than just working to put the identified solution in place.
• You may not know when enough is enough. How well do you have to know a problem to support an effective prize/challenge? The answer to this depends on the nature of the problem and your own operational needs. Remember, the goal is not to reach a ‘perfect’ problem definition; it is to understand the problem well enough to be able to support your prize/challenge design. Some of the references listed below provide questions that can be used to assess if the problem is prize/challenge-amenable. Consider using your ability to answer them as a check to see if your understanding of the problem is good enough to move forward.

Now that you have a better understanding about problem definition in a prize/challenge context, how do you go about doing it?

Keeping the points outlined above in mind, get started by reviewing existing reports, studies and anything else that takes a comprehensive look at the problem. Don’t forget to tap into the expertise of your colleagues and reach out to other departments which may have knowledge and networks that you can leverage. Most importantly, engage with key stakeholders and individuals who have lived experience with the problem area — if what you’re doing resonates with them, it is likely that your prize/challenge will have a real impact.

Looking for practical methodologies and tools? Many online resources are available to help with problem definition. Whatever approach you use, remember: problem definition is an iterative process that is best carried out with a flexible and open mind.

And, don’t hesitate to reach out to us in the Privy Council Office’s Impact and Innovation Unit. We’re happy to share our own experiences of what has (and hasn’t) worked for other departments pursuing prizes/challenges.

References

Desouza, Kevin (2012). “Challenge.gov: Using Competitions and Awards to Spur Innovation”, IBM Center for the Business of Government.

Doblin (2014).”The craft of incentive prize design. Lessons from the public sector”, Deloitte University Press.

MacCormack, Alan, Fiona Murray and Erika Wagner (2013). “Spurring Innovation Through Competitions”, MIT Sloan Management Review.

McKinsey (2009). “And the winner is…Capturing the promise of philanthropic prizes”, McKinsey & Company.

Nesta (2014). “Challenge Prizes. A Practice Guide”, Nesta Centre for Challenge Prizes.

Tong, Raymond and Karim Lakhani (2012). “Public-Private Partnerships for Organizing and Executing Prize-Based Competitions”, The Berkman Center for Internet and Society Research at Harvard University.