The Paradox of Playing it Safe - Why Avoiding Risk Risks Everything

Let's get straight to the point - innovation isn't optional anymore. If you want to stay relevant, you've got to build it into your strategy as part of the engine, not the add-on. And here's where things get tricky - many companies talk about the importance of innovation, but how many are really making room for it? Too often, the day-to-day list of tasks takes over, and before you know it, months have gone by without any real progress in how you're working or what you're delivering.

At Fractal Systems, we believe in constantly pushing the boundaries. Innovation isn't just about inventing something shiny and new. It's about finding better, smarter ways to do what we already do, whether that be how we run sprints, manage teams, or deliver value to clients. We build innovation into our routine because we know that if you don't take time to experiment, someone else will, and they'll leave you in the dust.

How We Innovate: Small Steps, Big Impact

One of the biggest misconceptions about innovation is that it has to be some massive, all-hands-on-deck initiative, but that's not the case. Often, the best innovations come from small experiments. There is value in regular innovation sprints, which means stepping away from the usual routine and dedicating time to exploring new technologies, tools, and methods. Sometimes, that means trialling a new tool or piece of software and other times it's rethinking a process that feels outdated. Small, thoughtful changes can have a big impact.

Balancing Innovation with Core Values

A lot of leaders worry that by focusing too much on innovation, they'll lose sight of their company's core values. But innovation and values aren't opposites; they're actually partners. At Fractal Systems, innovation helps us strengthen what we stand for. Our core values of transparency, collaboration, and agility don't get pushed aside when we try something new. Instead, they guide us in how we approach every new idea.

For example, when we explore new tools or methodologies, we ask ourselves - does this align with our values? Will this help us work more transparently with our clients? Can this improve how teams collaborate? If the answer is yes, we know we're on the right track.

The Importance of Experimentation

Here's the thing about experimenting - it's not about getting everything perfect first time. We expect that some ideas won't work out, but that's part of the process. What's important is that we learn something valuable each time we test a new approach. That's why we encourage our teams to fail fast and adapt even faster.

Take our recent exploration into emerging AI tools. We didn't know whether these tools would make a significant difference to our workflows, but we gave it a shot. Some experiments worked, some didn't, but through it all, we learned how to make smarter, more informed decisions about the tech we use.

Why Leaders Need to Prioritise Adaptation

If there's one thing I've learned over the years, it's that you can't predict anything exactly. Markets shift, technologies evolve, and client needs change. That's why adaptability is a critical part of any innovation strategy. As leaders, we must create an environment where our teams can pivot when necessary. We need to give them the space and tools to adapt, not just to external forces but to the insights and direction they gain through their own experimentation.

At Fractal Systems, we encourage every team member to bring forward new ideas, test them out, and share their findings with the rest of the company. It's not just about creating a pipeline of fresh ideas, it's about building the flexibility to act on them.

How to Make Innovation Happen

As a leader, how do we make it happen? Here are a few practical steps we've taken that you can try implementing, too:

1. Dedicate time for innovation: You can't innovate in the cracks between meetings and deadlines. Block out time for your team to focus on new ideas, whether it's a full day every month or just a few hours a week.
2. Encourage a learning mindset: Innovation comes from learning. Create an environment where your team feels encouraged to explore, test, and share their learnings, whether they succeed or fail.
3. Start small, think big: You don't need to revolutionise your entire business overnight. Begin with small, manageable experiments. If they work, scale them up; if they don't, figure out why and try again.
4. Stay aligned with your values: Use your core values as a filter, so every new idea should align with what you stand for as a company. This way, you're not just innovating for innovation's sake, you're doing it in a way that makes sense for your business.
5. Celebrate progress: Don't wait for the big breakthrough to celebrate. Acknowledge the small wins and lessons learned along the way. It keeps momentum going and motivates the team to keep pushing forward.

What Happens When You Don’t Innovate?

The risks of ignoring innovation have been played out in some of the most dramatic failures in business history. Take Kodak, for instance. Once a giant of the photographic film industry, they invented the digital camera but hesitated to fully embrace it for fear of cannibalising their own film sales. That hesitation meant they were left behind as digital photography took over. Fujifilm, on the other hand, took the threat seriously and diversified into digital imaging, medical equipment, and even cosmetics.?

And then there’s Blockbuster, the video rental giant that everyone thought was too big to fail. They missed the shift to online streaming, even when Netflix offered to partner with them early on. Blockbuster stuck with their late fees and physical stores, and we all know how that ended. Netflix became a streaming powerhouse, dethroning Blockbuster, which is now a distant memory.

The lesson here is simple - if you don’t build innovation into your routine, someone else will, and they’ll do it better, faster, and leave you behind. Kodak and Blockbuster didn’t adapt, and the market moved on without them. Fujifilm and Netflix, however, embraced change, experimented, and stayed ahead.

Innovation isn't about chasing the next big thing, it's about building a culture of continuous improvement. To thrive, leaders must prioritise innovation, not just as a side project but as a core strategic priority, because staying the same isn't an option in today's world.