Have you heard yourself say “It’s May already!” Wait what day is it? What quarter are we in?
Every year we feel like the business environment (as well as life in general) gets faster! So, what should companies do to adapt quickly and stay ahead of the competition? I am sure we all know the days of relying just on traditional business models and strategies are gone. Instead, companies must embrace disruption and innovation to not only succeed but accelerate and future proof their business.
Disruption: The Key to Competitive Advantage
Disruptive companies often challenge traditional business models and strategies by offering innovative solutions that meet the needs of consumers in a new and unique way. This disruption can lead to a competitive advantage, as it allows companies to differentiate themselves from their competitors and offer something new and valuable to their customers.
I am sometimes hesitant to admit it, but I am slightly addicted to TikTok. When TikTok first entered the market, it disrupted the traditional social media landscape by offering a short-form video platform with a unique algorithm-driven content discovery system. This allowed users to create and consume engaging, bite-sized videos with ease while being exposed to a diverse range of content tailored to their interests. This disruption has completely transformed the social media industry and has challenged established platforms like Facebook and Instagram to adapt to the rising popularity of short-form video content.
Innovation: The Key to Growth
Companies that can innovate are able to differentiate themselves from their competitors and offer something new and valuable to their customers. Innovation can also help companies to increase their efficiency, reduce costs, and improve their bottom line. Not to mention, wouldn’t you rather be part of a company that innovates rather than do the same thing over, and over again?
One of my favourite examples of an innovative company is SpaceX. It is a favourite because of the complexity and scale of it all. SpaceX was able to grow from nothing, from just an idea, using concepts that had never been achieved before. Can you imagine that conversation in the company you are in now? “Hey, I want to build a rocket to take on NASA and I want to make it land back on Earth when it’s finished!”. SpaceX disrupted an industry that you would not typically think of as an industry that needed disruption, Space transport. Creating a reusable rocket to compete against the likes of NASA and many other companies around the world, launching satellites and replenishing supplies at the international space station. A level of innovation and new thinking that had not been seen before, significantly reducing the cost of transport to space.
Fostering a Culture of Innovation
Of course, this all comes down to people and culture. Companies must foster a culture of innovation to drive growth and stay ahead of the competition. This means creating an environment where employees are encouraged to think outside the box, take risks, and come up with new and innovative ideas. So, what are some ways to achieve that?
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Encourage creativity:
To foster a culture of innovation, companies must encourage creativity. This means giving employees the freedom to think outside the box and come up with new and innovative ideas. Companies can encourage creativity by providing employees with resources like brainstorming sessions, hackathons, and innovation labs as well as ensuring that there is an appropriate approval process that allows for individuals to be able to take a level of risk to do things differently. In previous roles, I discovered the freedom one word brings to some people’s worlds. The word is “approved”. Simply backing people in writing that you believed in them enough to give them the go-ahead meant a lot, and realistically it’s a tool that does not need to be used for long because people gain trust in you that they will be supported for doing the right thing.
Reward innovation:
To encourage innovation, companies must reward it. This means recognizing and rewarding employees who come up with new and innovative ideas. Rewards can come in many forms, such as bonuses, promotions, and public recognition. It can mean a lot to simply know that the hard work that has been put in to challenge the status quo has been recognised. Don’t underestimate what a quick call or face-to-face chat can mean to someone just to tell them they did a great job.
Embrace failure:
Failure is a natural part of the innovation process. Companies must embrace failure and view it as an opportunity to learn and grow. This means creating an environment where employees feel comfortable taking risks and trying new things, even if they might not succeed. In the case of SpaceX, there were many rockets that exploded on launch or soon after. Referred to as a “rapid unscheduled disassembly”, that cost millions of dollars. Yet it’s often said that you learn more from failure than success. Like learning how to use “approved”, you also must be there when the learning from failure begins. Both in terms of leadership and standing side by side, as well as learning as a team to be better next time.
Invest in diversity:
While there are many benefits to diversity, to have more diverse thinking, ideas, and awareness. It is often a reality that with the best of intentions, diverse teams are created and then over time all taught/coached/disciplined to think and act the same. There is no point to seek out diversity within a company only to then create a “bubble” that requires everyone to think and act the same, to “conform”. The investment in diversity must come with an openness and willingness to embrace it. I always enjoyed having people around that disagree, challenge, and provide constructive feedback is invaluable and significantly reduced the chance of “group think” taking over. But beyond that, I always felt that if a person was willing to challenge, it also meant that they cared enough to do so. (Even if I sometimes did not enjoy it so much in the moment)
There is no doubt that disruption and innovation are key to success in today's business environment and even more so tomorrow. The challenge really comes from how. Be it the latest in artificial intelligence impacting how your business operates, or how your internal governance and process allows people to be creative, thinking of new ideas and then implementing them. The “how” might also be as simple as adopting the above yourself. Leading by example. While throughout my career I have tried to challenge and disrupt, there have also been times where it has simply not gone my way. Owning that and sharing it with folks also creates an environment for people to be able to embrace disruption and innovation as well as the risk of failure, and that’s an exciting culture to be part of.
