The Power of Innovation

Picture yourself as the CEO of a multi-billion dollar company, basking in the glory of a 90% market share for your products. Your new product launch is a spectacle, with thousands queuing up for hours to be the first to purchase. You are the epitome of success, lauded for your business acumen and seemingly invincible.

Imagine a scenario where a competitor introduces a less sophisticated but innovative solution, seemingly a pale imitation of your flagship product. What would you do? Would you restructure your team, develop new products, or dismiss the competition as insignificant? After all, your company's size, market reach, and brand recognition give you a significant edge. But remember, adaptability is critical in today's fast-paced and ever-changing business landscape. It's not about your company's size but your response's agility.

You would not be alone if you ignored, mocked, or derided the small start-up's product. Most of us would do the same. That's what Blackberry, Motorola, and Microsoft CEOs did when Steve Jobs introduced the new iPhone. (watch Microsoft's CEO openly mock the iPhone when it was first released).

At that time, Blackberry had 90% of the smartphone business. Microsoft was the only option for corporate workstations, and Motorola had roughly 60% of the non-smartphone market. Apple had never built a phone, and artists and amateurs predominantly used their computers for creative, not corporate work. They were underfunded, inexperienced, and needed to make up ground even to have a chance to compete against the large multinational companies.

Yet, we all know how it turned out for the four players. Apple goes on to become one of the most successful companies in history. Blackberry went bankrupt, and Motorola sold its cell phone business unit to Google after declaring defeat. Microsoft remains a company, but its cellphone software was a total flop, and its share of workplace users was cut by 30%. This is a powerful reminder that embracing change and innovation can lead to unprecedented success despite seemingly insurmountable competition. It's a beacon of hope in the business world, showing that even the most established companies can thrive in the face of change with the right mindset.

As much as we see their folly in hindsight, it would be hard to see it when it happened. They dominated the market at the top of their game, only to lose to a relative newcomer with an inferior product. They were making the best decisions they could then, but it was too little, too late.

As leaders, embracing innovation and the pace of change can be difficult and daunting. We sometimes struggle to get our team to perform at the current pace. Asking them to try to think about innovation may be too large of an ask. In other cases, we get stuck in the rut of doing the same thing repeatedly. We accept a 2 or 3% variance from the prior period's performance without significantly considering how to improve it. But remember, continuous improvement is key. Don't settle for mediocrity. Strive for excellence and always look for ways to do things better.

If you haven't noticed what's happening around you, you may want to observe the significant shift in how work and teams will operate soon. Innovations like AI and automation transform all aspects of work and personal life. We are living through a modern 'industrial' revolution, where the work of the future will look very different from today's work. There will be no industry, role, or location that this change will not impact. It's not a matter of if but when. So, let's prepare ourselves to lead in this new era of work. By acknowledging the inevitability of change, we can position ourselves to lead the way in this new era rather than being caught off guard.

We can be leaders of fear and worry or hope and certainty. We can lead our teams to adapt to innovation, be at the forefront of change, and embrace the incredible opportunities that await us. We learn, research, and try new ideas to determine the merit of investing time and money. We do that by welcoming new and inexperienced voices into the discussion to see how their worldview can help us see life through a different lens. By embracing diverse perspectives, we can foster a culture of open-mindedness and inclusivity, which is crucial for navigating the complexities of the modern business landscape.

Innovation should be a core attribute of a strong leader who wants to grow to serve more people in new and better ways.

How are you innovating as a team or organization? What are you doing to innovate as a leader?