CB Insights surveyed 677 corporation and released a report with interesting findings on the state of innovation in these organizations.
From the report it seems that companies fear innovation and don’t walk the talk.
41% of the respondents state they fear disruption. Yet, 78% of their innovation portfolio covers continuous innovation efforts, with no intention to tackle disruptive opportunities head on.
Meantime 57% of the organizations don’t have a formal innovation process that would help shield them against disruptive threads.
Interestingly, 71% measure innovation outcomes. Most of them (85%) use revenue measures to do so. Measuring innovation outcomes in terms of revenue is known to be counterproductive when it comes to disruptive innovations, given that these efforts typically start as small and marginal offerings.
When you don’t have a formal process, focusing on outcomes is even more ineffective. How do you know what actions to take when the results are not aligned with expectations, with no process in place and nobody to be held accountable?
Walk the talk
My only explanation for the counterproductive behavior of the companies surveyed in the CB Insights report is fear. Fear of investing in innovation and committing to exploring new opportunities. That is, walking the talk about disruption and taking action effectively.
P.S. In case you are not sure how to walk the talk of innovation in your organization, check out our programs. We are looking forward to helping you become an innovator and disrupter.