Ready, Aim, Shoot Self in Foot: 20 Ways Big Companies Undermine Innovation

Innovation is a “top priority,” but innovation team has no budget or resources.

Chief Innovation Officers brought in from elsewhere are treated as outsiders: “They don’t understand our culture, how we do things here.”

“It’s a sign that things aren’t working when there’s a lot of deferring commitment, asking for more analysis and data.”

— James Euchner,VP/Global Innovation, Goodyear

It must be instantly apparent and quantitatively demonstrable how every new idea has 18 month ROI or billion-dollar potential. Scads of spreadsheets must be generated to evaluate every aspect of cost and benefit.

The innovation team doesn’t have (or isn’t perceived to have) CEO-level or board-level support.

Conversely, the innovation team is seen as “the CEO’s thing,” disconnected from business units and their most pressing issues.

“You need to embrace lots of people, so they feel they are part of the story.”

— Rishad Tobaccowala, Chief Strategy & Innovation Officer, VivaKi

“One of the typical flaws I’ve seen in innovation programs is starting without a clear view of strategy: What is it supposed to do? What do you want out of it?”

— Moises Norena,Global Director of Innovation, Whirlpool

The innovation team is situated within the core business, and starved for resources because the core business needs them to remain competitive.

Expecting innovation & creativity to be as streamlined, efficient, and measurable as all the company’s other operations.

Fear of releasing “alpha” or test versions of new products/services to get early market feedback.

Instead, “Let 1,000 flowers bloom. Then mow.”

— David RoseEntrepreneur & MIT Media Lab instructor

Seeking more influence and power, the company’s Chief Information Officer has adopted new title: Chief Innovation Officer.

Business units are billed for the innovation team’s time. That creates a disincentive seek their involvement in projects.

“If the innovation team is not part of many conversations across the firm, it will be much less effective...”

— Phil SwisherHead of Innovation, Brown Brothers Harriman

All good ideas are expected to spring from the hermetically-sealed world of the corporation.

“A decade ago, the lab was our world. Today, we want the world to be our lab.”

— Peter EricksonEVP/Innovation,

General Mills

Company culture doesn’t tolerate failure, or understand how to learn from it.

Staffers linked to failed projects see their career prospects dim.

Innovation is expected to happen in cubicles.

“I can’t tell you how many companies I know who have innovation programs but no space to foster creativity. Large spaces with walls of whiteboards and comfy places to sit so people can brainstorm ideas are critical.”

— Julia Austin,Former VP Innovation, VMware

New ideas can’t cannibalize or compete with existing products or services, or threaten today’s business relationships.

The companies with the biggest budgets for R&D and innovation-related spending often feel the least competitive pressure to actually bring innovations to market.

New market opportunities aren’t taken seriously until a competitor makes a move, or until someone else is generating real revenues.

Before that, “It can be hard to get business leaders to make a judgment...It’s just hard to know what to do until you get information in a format that you’re used to seeing.”

— Brandon Barnett,Director of Business Innovation, Intel Corp.

The innovation leader becomes more of a cheerleader (or perennial panelist at conferences), rather than someone who helps create new businesses or enhance the company’s competitive position.

“Some of the companies that struggle with innovation, they know what needs to be done. But there’s a lack of commitment and sticking with it.”

“Innovation is not a short game. It’s the art of playing the long game.”

— Peter Erickson,EVP/Innovation, General Mills

“Innovation is typically portrayed as something you do after you finish your real work.

But innovation is your real work.”

— Thornton May, Futurist

Innovation Leader is an independent information service focused on the challenges of doing innovation, and how established companies can leverage innovation to sustain and grow their position in the market.

Find out more at http://innovationleader.com

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