How can you tell if you should just go after improvements, or if you should go after true innovation when transforming your business?
Susan M. Grotevant of the University of Minnesota says, “Old organizations, like old people can become set in their ways.” We tiptoe around innovation because it means getting rid of sacred cows, those projects, tasks, products and services we’ve been doing a long time but are no longer profitable, effective or efficient. Instead we settle for improvements, small tweaks that seem like we’re moving forward but really are a smokescreen to real transformation and business reinvention.
Improvement can be defined as small levels of change that have low risk, and typically start with an existing problem or process. There’s nothing wrong with gradual, consistent improvements, and the Kaizen philosophy of change is being embraced all over the world.
But gradual improvements don’t allow for the type of creative thinking that starts with a clean slate, breakthrough thinking which helps innovate new ways of serving your customer and leapfrogging over your competitors.
Yes, innovation is riskier, but the rewards often outweigh those risks: greater revenue and profitability, thought leadership, and a bottom-up overhaul of how you serve your customers so you can serve them even better than ever.
Which strategy is better for your business reinvention? Both have their place in your strategic thinking, and your long-term goals will help you determine whether innovation or improvement is right for you. Don’t push away innovation because it feels to overwhelming or risky, though. You could be pushing away the future of your business.
I totally agree with your statement:
“Yes, innovation is riskier, but the rewards often outweigh those risks: greater revenue and profitability, thought leadership, and a bottom-up overhaul of how you serve your customers so you can serve them even better than ever.”
I think that we very often get stuck in doing the business the same old way just because we know it and it is familiar.
Trying something new and taking a bit of risk can very often lead to a more lucrative business. And if it doesn’t work, well we can always go back to the same old way again …
I agree, Marie, we can’t keep doing business “the same old way” if that way doesn’t serve us and/or doesn’t serve our customers. I talk to many of my consulting clients who say, “I want to earn more revenue” or “I want to feel more challenged in my business,” but they keep wanting to do the same thing over and over again. If you want change, YOU have to change. 🙂