When terrible things happen to good innovation projects…

OK, we have finally realized that innovation and transformation are not optional for the long run well-being of a large enterprise. But that is a far cry from having the capability to do something with that understanding. The good news is that the things that sink innovation efforts are often easy to identify and eliminate.

An innovation tragedy (a short but true story)

In 2017, I was invited to a meeting with a huge global manufacturer. They were proudly establishing a brand-new innovation function. It would have its own budget, freedom to pursue promising projects with exponential growth potential, and would be staffed by the technically best and brightest. The company itself had a great brand, and senior leadership was behind the effort. The budget was eye-popping and their physical space was gorgeous — a purpose-built facility. But…

No clear governance structure. No clarity about what success would look like. An incentive model that guaranteed that even if the unit came up with something groundbreaking, business unit heads would reject it. Vague directives to product groups along the lines of “do something digital with these.” No clarity about the different phases of innovation and how they would be managed and staffed. Metrics drawn straight from the same…