The risk of innovation: A practical approach to moving forward
Most companies are thirsty for innovation—with good reason. Innovation can help organizations remain vibrant, competitive, and relevant.
By its nature, meaningful innovation comes with some degree of risk. The greater the departure from what has been done before, the greater that risk may be.
But risk isn’t necessarily a reason to stop. It is something to understand, evaluate, mitigate where possible, and then deliberately accept or reject.
Start with what already works
One way to innovate while limiting unnecessary risk is to identify what is already working and preserve the principles behind it.
Innovation doesn’t require creating something no one has ever considered before. Sometimes the better solution is to modify an existing approach that is almost right.
For example, engineers developing electric vehicles didn’t begin by reinventing transportation from the ground up. They started with something that already worked: the automobile. They then changed a fundamental part of how it was powered.
That didn’t eliminate risk, but it provided a proven foundation on which to build.
When approaching a problem, ask: What principles or approaches already work for some portion of what we’re trying to accomplish?
Define the goal
Effective innovation also needs a purpose. There should be a specific problem, opportunity, or performance gap to address.
A defined goal focuses creativity and provides something against which the innovation can ultimately be evaluated.
Innovation for its own sake can produce something new. Purposeful innovation should produce something better.
Consider downstream impacts
Changes rarely affect only the thing being changed.
Before implementing an innovation, consider what it could affect downstream: people, processes, technology, customers, costs, capacity, or other parts of the organization.
Some consequences can be anticipated and mitigated. Others may simply need to be accepted. Still others may reveal that the proposed innovation isn’t worth pursuing.
The important thing is to look beyond the immediate solution before making the decision.
Commit or reject
Once the benefits, risks, and downstream impacts are understood, make a deliberate decision.
- Some risks aren’t worth taking.
- Some warrant a limited pilot that allows the organization to validate the benefits and identify problems before broader implementation.
- Others are reasonable enough to accept and move forward.
Whatever the decision, make it intentionally.
Build from what works
When you’re trying to solve a difficult problem, innovation doesn’t have to begin with a blank sheet of paper.
A better first question may be:
What do we already know works that we could adapt to solve this problem?
Preserve the principles that work. Change what needs to change. Understand the risks. Then move forward deliberately.