Why executives and leadership teams don’t get innovation!

Here are five reasons why I believe executives and leadership teams don’t support innovation, even though the business climate of our time demands it. And yes, this is of course a bit simplified as we all know that the daily life of these people is super demanding and challenging. However, this discussion on the support for innovation - or lack thereof - is worth having in mind.

# Focus on short-term gains

The demand for short-term gains nearly always wins the day. Top executives at public companies are under enormous pressure to produce strong financial results each and every quarter. They are rewarded based on their performance in this area, and their job security increasingly depends on it. Thus, their balance between managing the day-to-day activities and shaping the future is off. See images below.

# Lack of innovation education and understanding

Many of today’s top executives got their business education before innovation was a significant part of the curriculum of many MBA programs. Some executives could compensate for their lack of education with experience. However, many missed out on on-the-job training as well because innovation training usually happens from the top down and not vice versa. In other words, they were trained to be problem solvers, not innovators.

# Aversion to risk

Innovation is intimidating on many levels. People who make it to the top because of their knowledge of the existing businesses typically aren’t all that interested in considering a new business model or pursuing a high-risk/high-return breakthrough that could ultimately undermine their own expertise. And who wants to risk having a major innovation effort fail on their watch? It’s often better to play it safe although this is becoming increasing difficult in this era of fast change and constant transformation.?

# Too little focus on collaboration and networking

Many executives don’t see why a networking culture - that leads to better collaboration internally as well as externally - is crucial to successful innovation. Innovation requires you to be strong at onnetworking and building relationships. This holds true at both the corporate level and the personal level. I ask leaders and managers: Where is the strategy, commitment, and structure you need to create a networking culture??

Many of them have not bothered to give this important subject any thought. Thus, there is a lack of the proper mindset and training on these elements.

# Too far away from the action

It is easy to preach innovation when you’re not responsible for making it happen. I have seen several innovation leaders in a struggle with middle managers who prefer to focus on their day-to-day business rather than support innovation efforts that might contribute significantly to overall growth in the future.?

In some cases it’s fair to argue that the leadership teams don’t understand the dynamics of the organization (culture, structures and behaviors) in the context of innovation and thus executives will stop innovation without even knowing it.

Some solutions in simple sentences:

• Challenge and stretch the mindset of the top executives
• Link the innovation strategy to the overall strategy (right mix of ambition)
• Understand what really matters to the team (work the “what’s in it for me?” question)
• Work the full team, not just the CEO (also key lieutenants)
• Don’t waste a good crisis (that makes the need for transformation easier to understand, implement)
• Get small wins, build credibility
• Make them have hard conversations
• Educate through, with their peers - but educate yourself first

If this resonates and/or raises reflection points and questions, get in touch and let’s share perspectives and ideas.