Innovation imprisoned

They take every opportunity to escape and make their warnings heard, but to no avail: the organization is less interested in red flags from thwarted innovators than red ink on the company ledger.

One look at the KPIs in any organization reveals an ocean of quantifiable measures: revenue growth, profit margin, customer acquisition, customer satisfaction, staff turnover… The constant pressure to meet these KPIs and deliver “quick wins” is what powers the never-ending and utterly exhausting game of corporate whack-a-mole in which quantifiable measures (the known) are always prioritized over new or hidden opportunities (the unknown). The goal is to maintain the status quo, not produce a new one.

Yet, survey after survey tells us most executives believe that innovation is vital to the success of their organization. Here are just a few:

• 82% of leaders believe a company will become extinct within five years if it fails to innovate (Miro).

• 86% of executives say innovation is a top three priority, yet fewer than 10% say they are satisfied with their organizations’ innovation performance (McKinsey).

So, where’s the disconnect? Why do so many organizations fail to innovate effectively? From my experience, it comes down to two things: 1) a misunderstanding of what innovation actually is, and 2) a focus on short-term metrics above all else. 

Let's take a deeper look at both.

1. TRUE INNOVATION IS HARD TO QUANTIFY AND EASY TO DISCOUNT

When they hear the word “innovation,” most people think of a groundbreaking product, service or idea. It's common for clients to assume that, as an innovation leader, my job is to show up with a bag of solutions ready-made to be plugged straight into their projects. I say "plugged" because they’re typically thinking of technological solutions, shiny silver bullets for all their problems. If only it were that simple.

Innovation is a practice and a process, and its purpose is to facilitate the successful adoption of change. To catalyze that change, organizations ought to foster open dialogue, strengthen stakeholder relationships, gain fresh perspectives, and illuminate new insights that inspire novel solutions to real human problems. Shifting mindsets drive the innovation that leads to solving problems—not the other way around.

How important is an organization's ability to adapt to the unexpected, make high-quality decisions, and cultivate a culture that encourage exploration? These values are qualifiable, not quantifiable: hard to count and easy to discount. But they’re essential for innovation and crucial for companies that hope to stay ahead of the competition and maintain long-term relevance. 

It's important for organizations, especially well-established ones, to understand that true innovation doesn't happen overnight. It's an iterative process that defines success not as an outcome that emerges at a fixed moment in time but a kind of understanding that gradually unfolds itself as obstacles are overcome. There are no defined end points, no shortcuts, and no silver bullets. But, with patience, the gradual implementation of pragmatic changes will lead to visible progress in the form of new momentum, organizational resiliency, and a bolstered confidence in the power (and necessity) of innovation.

2. BREAKING THE PARADOX OF CHECKBOX CULTURE

It’s the job of most middle managers to quite literally maintain the status quo: how can we make sure that tomorrow's operations look just like today's? Or, better yet: just like today’s, plus a 2% improvement in revenue? The result is a corporate culture riddled with spreadsheet-induced anxiety and hamstrung by leaders who are too cautious to try anything that might risk a number not landing squarely where it's expected.

This is how innovation dies: unsuspecting business unit leaders are handed from on high a new, probably digitally enabled, solution that’s meant to solve all their problems. But regardless of how shiny and impressive that solution may be, they can’t effectively implement it without shifting focus from the short-term metrics they’re responsible for meeting. Even if the solution has the potential to solve major organizational problems or dramatically improve workflows, the risk of failure is more frightening than the potential for gains. KPI tunnel vision sets in, consistency is prioritized over experimentation, and creative change is nipped in the bud.

The remedy for this kind of checkbox culture is simple: permission. When organizational leaders expand their definition of success to one that permits and encourages new ways of thinking, they unshackle their workers from the status quo, freeing them to pursue innovative solutions that solve deeper problems and provide long-term value. 

Throw out the duct tape and band-aids. They never truly stick.

EMBRACING THE UNKNOWN

Over my decades helping organizations think differently and uncover hidden potential, I’ve found no method more powerful than the creation of space where people can think and exchange ideas without fear or judgment. It can feel immensely gratifying to watch people surprise themselves with creative abilities they never knew they had, but which were waiting latent within them all along. It's not magic—but it can feel that way. 

Freed from the shackles of old ways of thinking, every organization has the capacity to create a culture of resilience and innovation. Start small, create little wins, and pay with patience. In a few years, you'll glance over your shoulder and find yourself pleasantly surprised at just how far you've come—and how small your competition looks in the distance as it rattles slowly along.