Discipline must run in parallel with Innovation

High growth companies are disproportionately innovative to those that are not and whilst I believe creativity is the ultimate source of competitive advantage, I must caveat my views. The importance of embedding a culture to allow free thinking that stimulates new ideas is well documented. However, without control you end up with pet projects, loads of possibilities and hundreds of potential initiatives that absorb time, energy and resource. Large companies have processes to deal with their ideas pipeline, but in smaller high growth businesses the danger is that there is too much innovation and entrepreneurship and not enough control and discipline.

Commercial problems potentially loom when there is too much lateral thinking and lack of order. Jim Collins in Good to Great uses a very powerful phrase – “Disciplined Entrepreneurship”. This embraces the notion of balance – innovative thinking and behaviours being guided within a framework of performance measures and KPI’s.

Too much Discipline – then a disconnection with customers, markets and new possibilities takes place

Too much Entrepreneurial flair – nothing gets done because everyone is bouncing off the walls with great ideas

Successful high growth companies tend to have a disciplined approach to new idea generation and implementation – a form of commercial filter. I often wonder how much smaller high growth companies can teach large corporates about innovative thinking and entrepreneurship. The reverse is also important – how can big companies help ambitious founders gain a better handle on their organisation? Feels like a powerful learning forum!

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One Response to Discipline must run in parallel with Innovation

  1. Absolutely right. Many managers turn away from Innovation because they find it scary and ambiguous and the predictable world of KPIs seems safer.
    That’s why colleagues of mine developed the new Managing Innovation programme which gives managers a route map through the innovation process and helps them understand how to manage it to the extent that they’ll give it a go. Certainly there’s been a lot of interest worldwide and if the UK isn’t careful we’ll miss the boat….again!

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