Innovation is possibly the biggest buzzword since we started thinking “outside the box” all the time.
But when it really comes down to it, what separates “innovation winners” from companies that “simply muddle along”?
Management consulting powerhouse McKinsey has some ideas based on research they’ve been conducting for years.
First of all, more innovative companies have the ability to set a “bold yet plausible aspiration for innovation” — meaning that they’re ambitious and think different, but they always have a strong idea of what economic value their innovation will deliver.
And along with that, leaders of these companies are capable of making tough resource-allocation choices about the people and funds they need to make innovation work.
And incidentally, if you’re still asking, why all the fuss about innovation?
Notably, the research also shows that innovative companies are better financial performers. There’s a direct correlation between thinking, well, outside the box and actually making more money.
For the leaders I work with at Newcastle Associates, staying grounded in financial reality while thinking big and bold is the key to success.
