Posted by Let us talk about innovation. It is one of those buzzwords everyone loves to throw around in boardrooms, but when it comes to actually doing it, most companies stumble. I have seen it happen time and time again. Leaders nod enthusiastically at the idea of innovation, but when faced with the messy, unpredictable reality of it, they freeze. Why is that? Why do we love the *idea* of innovation so much but struggle to embrace the process?
The Innovation Paradox: Why Companies Get Stuck
Here is the thing about innovation: it is inherently unpredictable. Yet, most companies approach it with the same rigid mindset they use for their day-to-day operations. I remember working with a Fortune 500 company where an executive shut down a promising project because the team could not provide a detailed revenue forecast three years out. Meanwhile, they were pouring millions into outdated products with equally shaky futures. It is this kind of cognitive dissonance that kills innovation before it even has a chance to breathe.
Building a System for Innovation, Not Just Random Acts
So, how do successful companies like Amazon do it? They do not just talk about innovation—they build systems for it. Amazon’s leadership principles, for example, explicitly encourage risk-taking and long-term thinking. They use tools like their famous six-page memos to force teams to think deeply about new ideas. And their leaders consistently prioritize innovation, not just in words but in actions.
Compare that to companies that host the occasional hackathon or innovation competition. Sure, those events can spark creativity, but without a system to sustain it, those ideas often fizzle out. Innovation is not a one-time event; it is a mindset that needs to be woven into the fabric of an organization.
The Measurement Trap: Are You Killing Innovation with Metrics?
Here is another common pitfall: measurement. Traditional metrics like ROI and NPV are great for evaluating incremental improvements, but they can strangle truly transformative ideas. Google, on the other hand, takes a portfolio approach. They expect failures from lots of them because they know that is how breakthroughs happen. Their innovation accounting framework acknowledges that not every idea will be a home run, and that is okay.
Psychological Safety: The Secret Sauce for Innovation
One of the most overlooked aspects of innovation is psychological safety. Teams need to feel safe to take risks, share wild ideas, and even fail. Research from Harvard Business School shows that teams with high psychological safety are far more innovative. I saw this firsthand with a healthcare organization I worked with. After they implemented practices to boost psychological safety like celebrating productive failures their innovation output increased by 37%.
Beyond Technology: The Power of Business Model Innovation
Finally, let us not forget that innovation is not just about technology. Some of the most impactful innovations come from reimagining business models. Take Netflix, for example. They did not just improve streaming technology; they completely changed how we consume and pay for content. Companies that focus solely on product or technology innovation are missing out on these structural opportunities.
Innovation Is Not a Buzzword It Is a Mindset
At the end of the day, innovation is not about flashy gadgets or trendy initiatives. It is about creating a culture where new ideas can thrive, even when they are messy or uncertain. So, the next time you hear someone say, “We need to innovate,” ask yourself: Are we ready to embrace the messy, unpredictable reality of it? Because true innovation is not just about breaking boundaries it is about building the foundation to sustain them.
References
Christensen, C. M., & Raynor, M. E. (2023). “The Innovator’s Solution: Creating and Sustaining Successful Growth.” Harvard Business School Press. https://hbsp.harvard.edu/product/5534-PDF-ENG
Edmondson, A. C. (2022). “The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth.” Wiley. https://www.wiley.com/en-us/The+Fearless+Organization%3A+Creating+Psychological+Safety+in+the+Workplace+for+Learning%2C+Innovation%2C+and+Growth-p-9781119477242
U.S. Bureau of Economic Analysis. (2023). “Innovation and National Economic Growth.” Department of Commerce. https://www.bea.gov/data/special-topics/innovation