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Six reasons firms can't innovate

Six reasons firms can't innovate according to Bill Fischer

Recent studies show that when it comes to innovation, corporate strategists don’t walk the walk. They know that real change is required to succeed, but the vast majority of growth efforts are allocated to continuous innovation instead of disruptive risks.

In a recent Forbes article, MIT Sloan Visiting Professor Bill Fischer outlines six reasons strategists feel stymied and explains why they have it all wrong.

  1. Executives think they know their customers well, but that’s often not the case. In fact, many have never been to a customer site, so it’s hard to be customer-experience-centric.
  2. Executives tend to be more focused on short-term results, when they really should take the longer view. Because of faster innovation cycles, industry convergence, and lower entry barriers, the future is advancing more quickly. Instead, we should be focused more on workable future ideas.
  3. Many organizations lack of a sense of urgency, which can affect almost every aspect of its life. To remain vibrant and vital, an organization needs to develop growth options, which are often a result of the management team thinking differently and getting support for that kind of thinking.
  4. Many executives think their department isn’t innovative. Instead, they need to learn how to harness the innate creativity that resides within their workforce.
  5. Organizations don’t need to be wild and crazy to be innovative. In fact, often the opposite is true: innovative groups usually rely on process.
  6. Many companies think their margins are too thin to innovate, but that view is very shortsighted.

Bill Fischer teaches in the MIT Sloan Executive Education program Driving Strategic Innovation: Achieving High Performance Throughout the Value Chain.

Read the full article.

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