How to move the needle on innovation

strategy+business, June 5, 2023

by Theodore Kinni


Illustration by Luis Alvarez

As CEOs continue to call employees back to the office, their rationales often include remote work’s deleterious effects on innovation. There is some basis for these claims: a recent study found that the number of email exchanges between research units at MIT dropped by 38% during the pandemic lockdown. Its authors equated email volume with the weak ties that are crucial to the diffusion of information and ideas in networks, and thus concluded from the drop in traffic that remote work hinders innovation. But no matter how much weight you assign this finding, it’s a stretch to peg the success—or failure—of a company’s innovation efforts to the number of rears in seats.

The truth is innovation in large companies is a perennial challenge for leaders, no matter where employees are working. The late Clayton Christensen and other researchers detailed the obstacles to innovation that arise when industry-leading companies confront disruptive technologies. Large companies also struggle to transform innovation investments into financial results: in 2018, consultants from Strategy&, PwC’s global consulting business, examined 15 years of data drawn from the firm’s Global Innovation 1000 research—an annual analysis of the 1,000 publicly held companies that spend the most on R&D—and concluded, “There is no long-term correlation between the amount of money a company spends on its innovation efforts and its overall financial performance.”

So how can leaders move the innovation needle in big companies? I turned to Lorraine Marchand for answers. Marchand served in a variety of executive and board positions, including a former stint as general manager of the life sciences division of IBM’s Watson Health (now Merative), before writing The Innovation Mindset: Eight Essential Steps to Transform Any Industry — a practical guide to building innovation prowess across an organization — and founding her own innovation consultancy.

Here is her list of ways to make your company more innovative. Read the rest here.