Creative Destruction And The Fast Pace Of Change
At a recent network meeting for one of my groups of innovation leaders, we got into a great discussion on the current innovation and business development activities in their respective companies.
No surprise, cost-cutting, killing bad projects and aligning remaining projects to the core were key focus areas for these innovation leaders coming from different industries.
The discussion, however, got quite interesting as one of the participants explained how they were about to make radical changes to their technology platform. They had reached the maximum output for their current setup and they had to radically change their approach in order to keep up with future demands.
As we talked about this, we learned that other companies considered making significant changes to their organizational setup. They were not aligned to the future challenges.
The key word here is the future – and how fast things are changing as we approach it. We have begun to understand that markets are changing fast and that the way we innovate changes fast and this happens on a global scale.
Could it be that many companies have to creatively destruct and then rebuild key elements of their business functions in order to deal with the fast pace of change?
One-third of the companies at our meeting had such concerns. Of course, the better the current shape of the companies the less they need to make radical changes. However, this crisis has shown us that the shape of many companies is not as good as we thought they were – either on an overall scale or in key elements of their business.
We have already seen many markets and industries undergo serious changes. I think it is fair to say this will continue and this will of course impact the companies within these industries. The big question is what this mean to the role of innovation leaders and intrapreneurs.
Change is usually a familiar friend of such people, but the intensity to come will put strains on them. Being able to operate with high degrees of uncertainty and the ability to help their organizations creatively destruct key elements of the business will become even more important. Such turmoil is also bound to force out more winners and losers – it will become increasingly difficult to stay below the radar and just play it safe.
I wonder to which extent this will impact the mindset and skills needed by those hired to make innovation happen. This shift of mindset and skills has already begun with the open innovation movement. But perhaps organizations need to make the shift towards external orientation faster – and to a greater extent – in order to make their organizations better prepared to the fast pace of change in the future?
Interesting times definitely lie ahead of us. Let me know what you think.
I could not agree more. I think that your insight about new skills required by innovation leaders is fantastic! I believe that reflecting on what are the primary skills called upon by those that lead through times of uncertainty in any life situation — work, relational, home, etc. — could help guide and concretize what innovation leaders need to possess and further develop as time marches on. Thanks for the thought!
Agree completely with your thoughts. Sadly, as an educator, I lament that education is sorely weak in this ability.
Education needs a, “shift of mindset and skills has already begun with the open innovation movement. But perhaps organizations need to make the shift towards external orientation faster – and to a greater extent – in order to make their organizations better prepared to the fast pace of change in the future?”
I fear our current model 19th Century model is not equipped to handle 21st Century change. Clearly not the same as business, but the thinking about change, especially those you have shared here are applicable.