Maximize the Wisdom of the Crowd for Complex Problems

For crowdsourcing to be effective, participants need guidance matched to the type of problem theyre trying to solve.

- By Michael Zaggl, Arvind Malhotra, Oliver Alexy, and Ann Majchrzak

Crowdsourcing is a powerful tool for innovation. All kinds of industries have embraced this approach to collaborative problem-solving to tap into a much wider pool of experiences and perspectives than a few experts could provide.

However, despite its many advantages, crowdsourcing can have disappointing results if not managed properly. A notable example is BP’s crowdsourcing initiative to find solutions that would alleviate the damage caused by the Deepwater Horizon oil rig disaster, one of the largest oil spills in history. Despite receiving 43,000 ideas, BP could not identify a single groundbreaking suggestion that would help mitigate the situation. Proposed solutions were either unworkable or mere modifications of existing solutions.

Crowdsourcing requires careful design, robust quality control mechanisms, and consideration of solutions’ potential pitfalls to deliver on its potential and ensure successful outcomes. Most important, our research has found that the optimal approach to guiding crowds depends on the type of problem a company is trying to solve. Specifically, our results show that crowds can be guided to solve complex problems more successfully and generate more innovative ideas when participants are encouraged to share their knowledge about the problem with others and to build on knowledge others have shared.

Two Instruction Approaches for Guiding the Crowd