The Hidden Costs of Incrementalism: Why Small Improvements Aren’t Always Enough

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Most organizations are good at making small improvements—optimizing workflows, refining processes, and making iterative updates to their products. After all, continuous improvement is a core principle of modern business. But what if this focus on incremental gains is keeping you from solving the bigger problem?

Incrementalism can be a trap—one that reinforces existing assumptions, limits creativity, and blinds teams to transformative opportunities. While fine-tuning what already exists can be valuable, true innovation happens when organizations step back, challenge their mental models, and ask: Are we optimizing the wrong thing?

When Small Fixes Reinforce Outdated Thinking

History is full of examples where companies focused on making something slightly better, only to be disrupted by someone who asked a bigger question.

?? Blockbuster vs. Netflix – Blockbuster made small optimizations to its late fee structure, while Netflix eliminated late fees entirely and shifted to streaming.

?? Taxi Industry vs. Uber – Taxi services focused on improving their dispatch systems. Uber reimagined transportation itself.

?? Kodak vs. Digital Photography – Kodak improved film technology while digital cameras eliminated the need for film altogether.

In each case, the established players were so focused on incremental improvements that they failed to see the fundamental shift happening around them.

The Kodak Example: A Case of Optimizing the Wrong Thing

Kodak actually invented the digital camera in 1975 but buried the technology because they were too invested in film sales. Instead of asking, How will people capture and share memories in the future?, they focused on improving film quality. Meanwhile, others embraced digital photography—and Kodak went from market leader to bankruptcy.

This is the hidden cost of incrementalism. When teams are stuck optimizing what they already have, they risk missing what comes next.

How Incremental Thinking Limits Innovation

Small improvements aren’t inherently bad. But when incrementalism becomes the default, it creates blind spots that prevent real breakthroughs. Here’s how:

1. It Solves Symptoms Instead of Root Problems

Many process improvements are just bandaids. They reduce friction but don’t address the real underlying issue.

Example: A hospital improves patient check-in efficiency by digitizing forms. But the real problem is that patients wait too long for care. A better solution might be rethinking triage, staffing models, or remote pre-check-in options.

? Breakthrough Mindset: Instead of asking “How can we make this faster?”, ask “What would eliminate the need for this step altogether?”

2. It Strengthens Existing Assumptions

Teams that focus on minor improvements rarely question whether they’re working on the right problem.

Example: Early car manufacturers tried to make faster horses (literal horsepower increases) before realizing they needed a completely different mode of transportation.

? Breakthrough Mindset: Instead of asking “How do we make this better?”, ask “What would we build if we started from scratch?”

3. It Ignores Emerging Trends

A focus on small optimizations keeps organizations looking inward instead of paying attention to shifts happening outside their industry.

Example: Traditional banks have spent years improving branch experiences, while fintech startups eliminated the need for physical branches altogether.

? Breakthrough Mindset: Instead of asking “How do we improve the branch experience?”, ask “How do people want to interact with money in the future?”

Breaking Out of the Incrementalism Trap

If your team is stuck in an optimization loop, here are ways to break free:

?? Expand Your Perspective

Innovation rarely happens in a vacuum. Bring in people from different disciplines, industries, and backgrounds to challenge assumptions.

? Try This: Design Sprints help teams reframe challenges, prototype big ideas, and test solutions quickly.

?? Map the Bigger Problem

Instead of just optimizing what already exists, map out the entire problem space. What does the full customer journey look like? Where are the biggest pain points?

? Try This: Use jobs-to-be-done thinking to identify what customers actually want—not just what they say they want.

?? Experiment with Radical Ideas

Small changes feel safe, but real innovation comes from testing bold ideas. Create space for structured experimentation.

? Try This: Instead of debating what might work, run small, fast experiments to test big ideas.

?? Ask Bigger Questions

Instead of focusing on optimizing the drill, ask whether people need to make a hole at all.

? Try This: Challenge your team to shift their perspective:

Instead of “How do we make this process more efficient?”, ask “How do we eliminate the need for this process?”

Instead of “How do we improve our product?”, ask “What is the job the customer is trying to get done?”

Are You Optimizing the Wrong Thing?

If your organization is focused on small improvements, it might be time to step back and ask: Are we solving the right problem?The companies that lead markets don’t just optimize existing systems. They rethink them entirely.

So the next time your team starts working on a small fix, take a moment to ask: Are we improving the drill, or are we finding a new way to hang pictures altogether?

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About Preston Chandler

Preston Chandler is a transformation leader, speaker, and author who specializes in helping organizations unlock innovation by building adaptive teams and driving operational excellence. With 20 years of experience across industries, Preston has led major brands like Pfizer, T-Mobile, Colgate-Palmolive, and Ford through significant change and improvement.

·???????? Co-author of The Agile Code (retitled Breakthrough Innovation)

·???????? Expert in Agile leadership, operating models, and innovation strategies

·???????? 20 years of experience driving operational excellence

·???????? Extensive experience facilitating workshops, including Design Sprints

Preston has a proven track record of cutting time to market and improving productivity while developing teams that thrive on experimentation and creativity. His passion is creating environments where innovation flourishes and teams deliver long-term, sustainable results.