There’s a common lament about the lack of innovation coming out of large corporations. I don’t know why anyone is surprised. I can think of at least three non-trivial issues staring us in the face and they have to do with incentive and motivation.
It’s common sense, not socialism to be angry at the lopsided way people are compensated in big companies. Why in the world would anyone in their right mind do something new when the only people benefiting are those who are already making 10-20 times as much as me? Money is a powerful motivator for innovating. But if you look at many publicly traded companies, innovation isn’t rewarded. When it comes to money in big companies, them that got is them that gets. People in the C-Suite are outrageously compensated even when the overall company underperforms. If you were to do something innovative in a big company, there’s a good chance only a select few will reap the rewards, not including yourself of course.
A way to fix this problem would be for companies to put their money where their mouth is. If you actually want innovation, you need to reward the innovators within your organization the way you reward your managers. The other option would be to reward innovation, not cost cutting, at the highest level. Innovative leaders can inspire and motivate those beneath them to do the same.
In large companies, “the process” is the culture. And yet, process is the antithesis of innovation. It’s about standardizing and normalizing, i.e. ensuring consistent results. Process is meant to drive out uncertainty, ambiguity, and serendipity, all key innovation ingredients. Most large companies reward you for how well you follow a process paying little attention to the outcomes.
Entrepreneurial people within organizations find ways around the processes to get things done. This understandably makes some people nervous. Therefore, outsiders and deviators of the process are pariahs even if their intentions are good.
A way to fix this is to let those who want to be entrepreneurial have their say. Don’t immediately tell someone to drop their suggestion in the box. They know that’s meaningless. Instead of putting more process in place, allow for more conversations. Don’t just have meetings to check the status of projects. Meet to actually talk about ideas. Yes, those meetings may last more than an hour, but they could pay off later in less work.
Innovation within large organizations is something only a few people get to do. At cutting edge companies like Apple, only a select few are in a position to do something innovative. In fact, for the majority of people that work there, it’s preferred they keep their opinions on products to themselves. Having worked there, I found it very frustrating. Meanwhile, I can’t say it was always a bad thing. There was no shortage of armchair quarterbacks who thought they had the one great idea everyone should listen to.
Unfortunately, confining creativity and innovation to certain roles, people, or groups breeds contempt. After all, who wouldn’t want to be labeled innovative when you see how much the press fawns over them. The only difference between an innovative person, and everyone else is they have lots of ideas – good and bad – not just one silver bullet.
A potential fix is to make sure there is some cross pollination of people from different groups within your organization. When people who think they have a great idea get to interact with people who actually have lots of ideas, they see how much work it is to being innovative. They also see it’s not all that it’s cracked up to be. There’s a lot to be said for people who can be effective operationally. Not everyone needs to be the mad genius.