Written by Karen D. Swim
It took a near collapse of the global economy for organizations to admit that something was not working. The new big idea became innovation. Long touted in mission and value statements and the top bullet point in job seeker resumes. Organizations caught the wave chanting a new mantra of creativity. Some companies had been living the talk for years and yawned at the converts. But the newbies pressed on even coining a new job title, Chief Innovation Officer.
Yet, with all their talk of innovation, creativity and becoming an inspired work place they will not accomplish their mission. You see, innovation does not come without risk and organizations are not structured to cultivate failure. They want the gain but without the pain. We kill the very thing we crave because we want guarantees that innovation will always be a success. Heads roll and jobs are lost when the “big idea” fails to deliver.
Big business is not fond of failure. It is the reason we have formulaic television shows, warmed over movie remakes and color by the number novels. Innovation comes from the fringe, the entrepreneurial willing to take the risk. The brave souls who embrace failure in themselves and their people. Big business very often does not lead the way but follows. Those averse to risk emulate the new ideas. . They champion innovation from others and rush to create their own “unique version. In the sincerest form of flattery, the new idea is imitated until the public wants to hurl at the mere mention of it.
Yet, we have the opportunity to reverse this trend. We the people, the employees, middle managers and consuming public can begin a groundswell movement where failure is not only accepted but encouraged. Rather than painting a scarlet letter on those who try and fail we can champion them for having the courage to try. When given the freedom to fail it is amazing what people will do.
What say you, play it safe or take the risk?
Andrew says
Karen,
When we say that innovation is good but then go and punish those whose innovations don’t work out, we are completely contradicting ourselves.
As you say, the innovation process by necessity entails a certain amount of risk, and if we, as a society, are intolerant of risk, then we simply cannot expect to reach our full potential with respect to ground breaking innovation.
Andrew´s last blog post..Four rants about AIG’s ‘poor performance’ bonus
Roland Hesz says
I do agree, I was more thinking along this part of the post
“Big business is not fond of failure. It is the reason we have formulaic television shows, warmed over movie remakes and color by the number novels. Innovation comes from the fringe, the entrepreneurial willing to take the risk. The brave souls who embrace failure in themselves and their people. Big business very often does not lead the way but follows. Those averse to risk emulate the new ideas. ”
Innovation is coming either from small companies – which are then usually bought up by big companies if in the technical field – or from “ninja” departments, where there is a group of young – at least in heart – and fiery people with an equal manager.
As for the steel industry resurrection – when your business is down the gutters, it is usually easier to initiate new ideas and take risks. When you are almost dead, then it is not a big loss to risk another failure.
Another thing beside the short term profit, is the “if it ain’t broke don’t fix it” mentality at companies up and running. That usually comes before the fall, when everyone is getting cozy and comfortable knowing for sure that there can’t be problems.
You can say that it is like the (very simplified) hot-cold fluid dynamics. Big companies on the top cool down and start to sink, while the small people on the bottom are all heated up from the pressure and they rise up.
Brad Shorr says
Hi again,
Brett – Innovate or die is absolutely true. Especially now because the pace of change is so rapid. I see plenty of companies big and small who are dead men walking because of exactly what Karen says – an atmosphere hostile to creativity. That’s what I love about my friend, collaborator and sometimes client Bill Welter. He spends his time working with large companies to combat that stifling atmosphere. If only we could clone him!
Brad Shorr´s last blog post..Spiritual Renewal Monday
Karen Swim says
@Roland and @Brett it is sad that many corps manage the bottom line, and manage risk but leave no room for breakthrough ideas. I worked in the pharma/lab industry for years and the R&D pipeline was the metric for a healthy company. Yes, of course it costs money but I believe there is a way to balance fiscal responsibility and profitability with innovation, when companies are willing.
@Brad, interestingly enough those companies that rebounded did so by a bit of reinvention. I also wonder IF we would have ended up in this horrendous mess if our corporate structures allowed more challenge to status quo thinking. I have often worked with companies who had a problem(s) and the solutions were within but they were not being heard. Employees of companies very often have the innovative ideas and solutions to move forward but there is no process to listen and act upon their ideas.
@Robert, I agree! Years ago when I was a new manager, I had a great boss who said to me “I don’t care if you fail, I just want you to make decisions. If you make a bad decision we’ll manage it together.” Her words gave me courage to try new things and to take action. Unfortunately that attitude does not exist in every organization but we should absolutely champion it!
Brett Legree says
Robert, you and Brad are right of course – there is innovation going on around us. Most of what I see tends to be the smaller companies, but that’s really just because that’s where I’m looking.
Certainly it is not impossible for a larger company to reinvigorate itself.
I’ll still stand by my point though – innovate or cease to be relevant.
Robert Hruzek says
Definitely go for the innovation!
Roland and Brett make some good points, and unfortunately that’s how most people think about innovation in the US. Thank goodness Brad came along and pointed out the fact that all is not lost!
We need to keep our eye on the innovation that IS going on around us. Celebrate it – take part in it – champion it wherever possible!
All we need is the vision – and the will.
Robert Hruzek´s last blog post..When Your Words MUST Count
Brad Shorr says
We’ve had some horrendous examples of bad corporate management/stewardship/leadership in the U.S. recently, no doubt about it. But I think American business is a lot more resilient and competent than we’re giving it credit for. China, India, or another country may someday prove to be a more powerful economic engine than the U.S., but they haven’t proved it yet. When I entered the business world in the 1970’s, the U.S. steel industry was dead. Now it is the world leader. In the 1980’s, I remember calling on companies like John Deere and Caterpillar. Their factories were enormous ghost towns. The global resurgence of both these corporations has astounded me. Shortsighted corporations are getting deservedly hammered in the markets and in public opinion, and the majority of companies that are well run are being brutalized along with them. But I think the good companies will come back stronger than ever.
Brad Shorr´s last blog post..Spiritual Renewal Monday
Brett Legree says
What Roland says is true for some companies – and sadly, for what I see as the majority of the companies in my country (Canada) and yours Karen (USA).
They long ago lost sight of why they started in the first place. They lost the fire when they started caring more about “the shareholders”.
That’s why our auto industries are failing and those in other countries are growing (did you know that Tata Motors in India has announced a $2000 US car?) – if they looked after the customers instead of the shareholders, they’d be making cars people wanted to buy.
That’s why the next people on the moon will be from China, not the USA.
That’s why small upstart companies (eventually) come along and displace larger companies. Microsoft once had the fire, and they were small nobodies. They displaced those before them, as they too will one day be displaced.
That’s why my company is not a world leader anymore. We used to believe in research and development, we used to ask the question, “I wonder what would happen if I tried this?” – then the bean counters moved in, and we were finished.
That’s why the up and coming generations displace the ones before them. As we grow old, we sometimes become conservative.
When you lose your fire and become conservative, you’re finished eventually, one way or another.
If “the system” only cares about the short term, then the system is broken.
Roland Hesz says
What I see is that the goal of the company and innovation/creativity are dead opposites.
Why?
Because the goal of a company is to maximize profit and minimize loss.
Taking risk increases loss, not minimize it, at least in the sort run. And the short term IS the most important thing and what the system wants.
Why?
Because shareholders buy and sell stocks, and they need profit now, not a year or even a month from now – when they are not shareholders anymore.
So how can anyone think that a short term loss is acceptable, when there are short term owners with short term interest involved?