Consider this definition: Innovation is the practical implementation of new ideas, methods, products, or processes that create value and solve problems in new and better ways. 

Innovation within existing businesses usually takes one of two forms: 

  • Improving existing processes to maximize efficiency (protecting resources), or 
  • Exploring new ideas (products, services, interactions) to create additional value. 

Although each form can accurately be categorized as innovation, these forms differ greatly. If both forms are executed simultaneously, quite a bit of tension or friction can arise.  

The first form, improving existing processes, is all about efficiency. How do we accomplish a task with less effort? How do we maximize profits with less waste? How do we construct this building with less schedule slippage? This form of innovation succeeds when resources are protected. 

The second form, exploring new ideas, is all about discovering opportunities to create more value. What new product will react well in the market? Which startups can be acquired to increase market share? If we expand overseas, can we be the first to bring our product to millions of people? This form of innovation succeeds by realizing valuable opportunities. 

Tension exists between these two forms of innovation because the first protects resources and the second needs to use resources to test and explore, likely failing quickly to learn quickly, and to validate new ideas. 

The first step in overcoming barriers to innovation comes in understanding which form you want to execute. Are you seeking to protect resources or discover opportunity?  The next step assigns ownership of the innovation effort to the right leader. If you want to protect resources, choose a leader who understands the existing processes and then direct that person to create efficiencies. If you mean to discover opportunities, choose a leader who can think unconstrained by existing systems and direct that person to work creatively.  When pursuing the discovering opportunities form of innovation, the more popular option, two distinct roles need to be filled – the Innovator and the Leader. 

Guidance to the Innovator: Just start. That’s it. Create a tiny bit of value. Right now.  Don’t begin by planning the factory floor of the future, get one machine running in your garage now. Don’t get bogged down stressing over problems you will likely encounter in the future, act now and create a tiny bit of value. This demonstration, however humble at the beginning, will inspire confidence in your efforts and likely unlock additional resources and support. 

Guidance to the Leader: Let your Innovator run quickly.  Continuously remove any obstacles.  Where your Innovator begins is not where they will finish. Let them explore. Support them by providing clear intent when possible or trusting them when a clear intent is not yet formed. You will both learn together, and the path will become clearer over time. Resource expenditure will be necessary. Remember, success here is discovering new, valuable opportunities.