Innovation: the classic traps
Innovation: the classic traps
Moss Kanter R. Harvard Business Review, November 2006, Vol. 84 No. 11, Start page: 73, No. of pages: 11
Purpose – to highlight some of the problems associated with adopting innovation as a business growth enabler. Design/methodology/approach –observes that the potential gains from innovation are rediscovered with each new generation of managers. Comments that each generation has to overcome the same factors that tend to suppress innovation, with many achieving only mediocre results, after which innovation falls prey to cost-cutting exercises. Reviews successive waves of competitive challenges that have led to renewed enthusiasm for innovation since the late 1970s. Describes some of the most common “innovation traps” and suggests ways in which they can be avoided. Gives examples of strategy mistakes, where companies focus only on big projects and reject those that appear too small in terms of prospective revenues, or focus only on transformative ideas involving new products. Discusses process mistakes, where controls are too tight and structure mistakes that lead to a clash of culture or conflicting agendas at the parent company and the new enterprise. Warns against“skills mistakes” such as weak leadership or poor communication. Practical implications – presents a summary of key lessons about the effective use of innovation as a strategic driver of corporate growth. Originality/value – offers practising managers the benefit of the experience of a well-known management thinker and consultant on innovation.
Keywords: Business development, Corporate strategy, Innovation,Management techniques, Organizational behaviour
