INNOVATION IN THE TIME OF UNCERTAINTY
Ours is a time of uncertainty and anxiety. Many of us are worried about an impending recession and understandably tightening our purse strings. Although it’s not yet clear whether and when these worries may come to be, we’re seeing many business leaders follow suit and preemptively cut budgets wherever they see fit. Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.
As usual, innovation is one of the first casualties of this collective crisis management mode. And while the average business cuts down on innovation as “a luxury they can’t afford,” forward-thinking leaders are using this moment as an opportunity to create new sources of income and growth.
Contrary to conservative practices, companies that focus on innovation even in tough economic times stand to leapfrog their competitors when the storm is over.
Research by McKinsey & Co. shows that companies that sustained their innovation impetus during the 2008 financial crisis not only outperformed the market average by over 30 percent but also continued to grow fast over the following several years.
Innovation is exciting but inherently risky. The more novel your product is, the higher the likelihood of getting some negative feedback from your customers. But while incremental innovations are less likely to hurt in the short term, they also can’t generate the types of long-term returns your company needs. For that, you need radical innovation, risk and all.
So how do you balance responsible spending and innovation? Conventional thinking, as well as probably your experience and instincts, will likely push you towards incremental progress over radical headway. And though this may seem like the best way to keep your CFO happy, it’s not necessarily the best approach.
Take Uber or Netflix, for example. These now giants introduced revolutionary products during the worst recession many of us have seen. It is possible to come up with highly impactful innovations that both delight your company’s pocketbook and bring joy to your customers.
In my next posts, I’ll share specific methods for how to get there. Follow along for insights on how to identify new and effective growth opportunities and, of course, innovate!
