Seek a wide range of opinions
In unprecedented times, no one person, regardless of experience, has the answer to every problem. Successful innovation can only be delivered via new combinations of people who bring to bear diverse expertise. CEOs need to talk to colleagues from the C-suite to the “factory floor.” They need to get out of the building, too, to see what ideas are floating around outside their organizations and how these could feed into their own business models.
Collaborate continuously
The need to draw on a wide range of expertise makes collaboration and team-working critical. That requires empathy, social listening, and even a touch of humility. The capacity to be resilient and receptive is vital, too; when colleagues criticize your ideas, recognize that challenge and debate are healthy – essential, even – for the best outcomes.
Follow the logic of experimentation
I once heard a senior executive remark, “If you torture the data long enough, it will confess.” Running experiments purely to find evidence that supports your thinking is a huge error. As I put it in my book, Alien Thinking: don’t test to prove, test to improve. You need a scientific mindset based on a genuinely experimental approach, with a willingness to test ideas and refresh your thinking based on the results. Avoid picking your innovation winners early. Nobody wants to disappoint the CEO, and new ideas and concepts may be harmfully underplayed if people perceive you as having a preferred solution.
Demonstrate strong support
As my friend and IMD colleague Alex Osterwalder has identified, one of the “showstoppers” for innovation is a lack of top–level support. If your organization’s leadership has not set a clear innovation strategy, it is near impossible to develop a systematic approach to innovation. If you are serious about innovation, aim to spend 30‒40% of your time on it.
Provide legitimacy and power to innovation teams
Another showstopper is poor organizational design. When innovation executives sit two or three levels below the C-suite, they struggle to secure resources. Innovation must be instilled from the top down, with real influence on the company’s strategic destiny. Steve Jobs believed this: he asked Jony Ive, his Chief Design Officer, to sit next to him at most executive meetings.
Promote psychological safety and celebrate learning
CEOs’ top priority should be creating psychological safety. Google’s Project Aristotle found this was the number one dynamic for top-performing teams. Ensuring employees feel they can take risks and expose their thinking to criticism without negative repercussions is vital. The most innovative companies make it safe for individuals and teams to take small, calculated risks as they explore new ways of thinking.
Taking this approach a step further, don’t just celebrate innovative projects that work out – celebrate those that don’t. Remove the word “failure” from the corporate vocabulary and instead frame experiments that do not go to scale as part of the learning process that leads to eventual success.
Garry Ridge, CEO of the WD-40 Company, even put in place a “Maniac Pledge” requiring employees to document and share their experiences of learning if something doesn’t work, recognizing that these were critical opportunities to improve. Tata created a “Dare to Try” award to highlight bold (but failed) experiments that yielded valuable learning. Such initiatives convey a powerful message: it is okay to experiment and take risks. Reinforce that message through “fireside chats” in which teams reflect on experiments that didn’t work out as hoped, showing a shared creative vulnerability and willingness to learn.
The clouds gathering over the global economy are real, and many CEOs are battening down the hatches to ensure they survive the storm. But, when we emerge on the other side, the companies that outperform their peers will be those that refused to let their innovation efforts be blown off course. CEOs may need to steady the ship during 2023, but they should keep it resolutely pointed towards an innovative vision of the future.