The Innovation Strategy Imperative: Why "Quick Win" Projects Often Fail

The Innovation Strategy Imperative: Why "Quick Win" Projects Often Fail

By Mark Blackwell, Founder, Arkaro

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The Innovation Paradox

A record 83% of companies now rank innovation as a top-three priority according to BCG's latest report, "Innovation Systems Need a Reboot" (June 2024). Yet despite this high prioritisation, innovation readiness has plummeted, with just 3% of companies in the "ready zone" today, compared with 20% in 2022.

The disconnect is stark and troubling. Organizations invest in innovation activities but struggle to achieve meaningful results. Why? I've observed a fundamental issue: the absence of a clear innovation strategy.

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The "Quick Win" Trap

When business pressure mounts, particularly for short-term performance improvements, organisations often fall into what I call the "quick win trap" - initiating innovation projects without reference to any cohesive innovation strategy. The thinking goes: "We need results now, so let's launch some rapid innovation initiatives and show progress."

This approach seems logical on the surface. However, without the knowledge and insights developed through the hard work of creating an innovation strategy by finding the sweet spot between market needs and trends and business assets and capabilities, ideation output for new projects is often very poor. Without strategic guidance, these projects typically:

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  1. Deliver extremely poor returns on investment
  2. Create "zombie" innovation projects that consume resources without advancing business objectives defined in the innovation strategy
  3. Generate products that, if launched, produce much lower sales than expected

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BCG's research confirms this observation, with 52% of respondents citing an unclear or overly broad strategy as one of their top three innovation challenges. Yet, surprisingly, only 30% report plans to revisit their innovation strategies, while 70% focus on updating the innovation operating model.

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Like an orchestra without a conductor

Innovation without strategy is like an orchestra without a conductor - talented individuals playing without coordination! A proper innovation strategy provides:

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  1. Clear boundaries - defining where to focus innovation efforts based on market attractiveness and organisational capabilities
  2. Resource alignment - ensuring investment flows to the most relevant opportunities
  3. Decision-making framework - providing criteria for evaluating and prioritising innovation initiatives
  4. Motivation and purpose - helping teams understand the "why" behind innovation activities

The BCG report highlights that organisations with a strong link between business strategy and innovation strategy are significantly more likely to exhibit six best practices:

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  1. Senior executive ownership of innovation
  2. Clarity on innovation's role in supporting company direction
  3. Focus on areas where the company has competitive advantages
  4. Clearly specified innovation domains
  5. Target portfolio structure across timeframes
  6. Quantified objectives tied to financial goals, combined with leading KPIs

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Most importantly, companies adopting four or more of these best practices see measurably higher sales from new products.

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When Best Practices Are Absent: The Innovation Gap

What happens when organisations fail to implement these best practices? The absence of a strong link between business and innovation strategy creates significant vulnerabilities:

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  1. Without senior executive ownership, innovation becomes an isolated activity rather than a business priority
  2. Without clarity on innovation's role, teams lack direction and pursue disparate, sometimes conflicting goals
  3. Without focus on competitive advantages, resources are spent in areas where the organisation has limited ability to win
  4. Without specified domains, innovation efforts scatter across too many unrelated opportunities
  5. Without a target portfolio structure, organisations over invest in short-term initiatives at the expense of future growth
  6. Without quantified objectives & leading KPIs, there's no way to measure success or hold teams accountable

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These gaps don't just reduce innovation effectiveness—they actively create conditions for what I call the "zombie project" phenomenon where teams become emotionally attached to projects that should have been stopped. Perhaps the only worse project is the CEO’s “Pet Project” inspired on a whim without context to the strategy!

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The Arkaro Advantage Approach

So how do close the innovation gap? Unlike traditional consultants who deliver recommendations and leave, Arkaro works alongside clients to build lasting innovation capabilities. Our "do it with you" approach ensures organisations develop the internal expertise to

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1. Start with Clear Business Strategy

All innovation efforts should flow from and support the organisation's overarching business strategy. If your business strategy isn't clear, innovation efforts will inevitably be misdirected.

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2. Define Innovation Domains

Identify specific areas where innovation efforts should be concentrated based on:

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  • Market attractiveness (size, growth, competitive intensity, needs, trends)
  • Organisational capabilities and right to win
  • Priorities and growth objectives

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3. Secure Senior Leadership Ownership

Innovation must be owned and visibly championed by senior leadership. When executives take personal responsibility for innovation outcomes and foster a culture that encourages appropriate risk-taking, organisations see significantly higher success rates. This leadership creates the foundation for a thriving innovation culture.

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4. Build Innovation Capabilities

Innovation success requires developing two distinct but equally important capability sets:

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  • Technical innovation management skills: Train teams in structured methodologies for Jobs to be Done approach to deep customer understanding, focused ideation techniques, concept development, customer validation, and portfolio management
  • Cultural and collaborative capabilities: Foster cross-functional teamwork, psychological safety, productive conflict resolution, and the ability to collaborate across organisational boundaries

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Organisations that excel at innovation build capabilities that enable diverse teams to work effectively together, breaking down silos between functions like R&D, marketing, operations, and sales. This collaborative approach ensures innovations address both technical feasibility and market desirability.

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5. Establish Innovation Governance

Create clear decision-making processes, resource allocation mechanisms, and accountability structures that ensure innovation activities remain aligned to the innovation strategy – and ensure zombie project are killed!

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Conclusion: Strategy First, Then Implementation

BCG's research confirms what we've observed for years: successful innovation begins with strategy, not activity. Organisations focusing solely on innovation process optimisation without addressing strategic clarity are likely to continue experiencing disappointing results. Both are needed – along with leadership ownership, capabilities and a collaborative culture – but it must start with a strategy!

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About Arkaro

Arkaro is a B2B consultancy specialising in Strategy, Innovation Process, Product Management, Commercial Excellence & Business Development, and Integrated Business Management. With industry expertise across Agriculture, Food, and Chemicals, Arkaro's team combines practical business experience with formal consultancy training to deliver impactful solutions.

You may have the ability to lead these change efforts with your team but time constraints can often be a challenge. Arkaro takes a collaborative 'do it with you' approach, working closely with clients to leave behind sustainable, value-generating solutions—not just a slide deck.

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Mark Blackwell

Arkaro - Making Science Profitable - Strategy, Innovation Process, Product Management, Commercial Excellence & Integrated Business Management for B2B companies & NGOs

1 天前
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Pornchai Sangrungsri

i2P innovation center manager at SCGC

1 天前

If we can win quickly, the competitors can do so. We have to differentiate ourselves and find long term competitive advantages.

Simon Redshaw

Experienced with driving business growth. Expert in Global Key Accounts, Regional Leadership, and Customer Partnering. Driving innovation and growth in ingredient technologies at all levels of the marketplace.

1 天前

?? A really well articulated perspective giving structured reasoning why only short term innovation without thorough planning gives false reward and is short lived. Truly understanding your competive advantage (SWOT) in the market place and how innovation should be structured in your company are so key. With this learning and plenty of analysis (internal & Customer-In) you can bring leadership to the table, they buy in, and approve the creation of innovation structure, process and may even support investment (Short, medium & long term). This change is hard work, but great to experience, especially when you see the growth momentum begin and the support it brings from your customers. You then have a chance to really partner, rather than just to be treated as a price competitor. This is progress.

Robert Berlin A.

Sustainability & Strategic Partnerships Expert | 25+ Years Leading Philanthropic Initiatives & Global Sustainable Development

2 天前

Great insights, Mark! In 2023, we wrote a white paper on innovating for smallholders and found that short-term projects fail without strategic alignment, early stakeholder engagement, and adaptability. Without these, “zombie projects” take over.

Mark, I agree with your assessment and route plan – well done. A couple of personal thoughts: (i) a good business strategy based on market insights will make innovation’s role clearer, but will hinder it if it is a sales gap-filling plan in disguise; (ii) the use of market data supported by, but not based on, customer anecdotes will help protect from internal bias; (iii) an understanding of the ability to win of the organization must include an outside-in view of the innovation capability of the organization and its ecosystem.

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