Innovate

Companies, as they become larger, very often lose the capacity for innovation, creativity, and growth. But they don’t have to. In fact, they should aim to keep their structures in such a way, so that they keep innovating, creating, and growing.

Disruptive innovation means, that you do not only meet the current needs of the customers, but you also anticipate their unstated and future needs. Three elements to make it in your organization.

First, make sure that the innovation team has enough resources to innovate, but not too much. Having too much money is more dangerous for a startup to have than too little.

Second, the innovation team must be independent of the rest of the company. Also, it should be cross-functional - it should be able to do all the product development and marketing things by itself.

Third, the leader must have a personal stake in the outcome. There could be some stock options or other forms of equity ownership. Although, it doesn’t have to be financial. The important part is that the leader must feel that this is his creation and he has 100% responsibility for it.

When you have an innovation team in a big organization, make sure you protect the main organization from the team. This team will experiment with many things, and those things should not influence the main organization until they are ready to do so. When the reputation of your organization is important, or your competitors are watching you, it’s easy to make a mistake, that is difficult to reverse.

Actions to take

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Principles to follow

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