Innovation and Leadership
by Steve Epner, CSP Innovator in Residence, St. Louis University

Two key concepts in the world of business today are Innovation and Leadership. Both are very important, both are touted by gurus around the world, and both are often misunderstood. As stand-alone concepts, they do not have as much definition and impact as they do when they are integrated as part of a holistic approach to guiding organizations of people.. How they work together can be the difference between success and failure in a business. So, what do they mean in the real world of business?

Innovation is more than just a good idea. It is not just a different way to answer a need. An innovation in the real world happens for one of two primary reasons (of course there are many others than can be identified, but these are the ones we most often see in real business applications).

The first kind of innovation most of us think of is the introduction of something new, even if it is based on an existing idea, service or product. Think of the Geek Squad (service) as an innovative approach to helping people use their personal technology better and provide on-demand solutions to problems. There have always been people willing to help you out, but someone decided to make a national brand out of a service that more and more people wanted and needed. Another example is the iPhone (product), one of the most recent innovations. It is not a new product. Cell phones have existed for many years, but it is an innovative approach to what a hand-held device can provide and how it can interface with its human owner and the outer world of information and people.

Not all innovations are based on technology. Think of the Pet Rock (if you are old enough). You’re tempted to dismiss this little fad but how smart was it that this little innovation made some entrepreneurs a bunch of money.

Innovation in the context of introducing something new can change the way we do things and the competitive structure of any industry.

The second reason for innovation—and the one that is probably the most frequently used—is the need to overcome an obstacle. Everyday businesses find roadblocks they have to conquer in order to survive. Many of the battles are fought and won without much fanfare. But, without these “innovative wins” many businesses would lose marketshare, productivity, human resources and perhaps ultimately fail.

In a manufacturing plant, for example, equipment fails all of the time. Often the perfect fix is not available or cannot be completed without a major disruption. In these cases, the “guys on the line” innovate or improvise. They find a way to solve the problem. It may not be elegant or sophisticated, but if it works, it is a great innovation. Sometimes, innovative advances are very quiet but have a powerful impact on a company’s performance.

Leadership is the second concept that is often misunderstood. Management and leadership are often used interchangeably. This is incorrect. They require two vastly different skills and do not frequently occur in a single human being with the same level of competency.

Leaders provide direction. They are responsible for strategy and the overall culture of an organization. Managers get things done through managing processes and tasks and engaging other people to “get it done.” Given a strategy, they execute it.

When there is a problem that requires innovation, it is up to the leaders of the organization to make sure the culture supports and encourages new ideas, fresh approaches, and a willingness to find unusual answers for unusual situations. If the environment is inflexible, innovation cannot take place.

Managers must also be in the loop. They have to be encouraged to innovate and to work with their teams to innovate. If a manager is risk averse, has been beat up in the past for taking a chance, and has never been applauded for trying something new, it will be hard for him or her to allow, let alone encourage, team members to try anything innovative.

So consider your business. What are you doing to establish an innovative spirit? Do you reward risk taking? Do you celebrate small innovations that save the day? Are you willing to accept a failure in order to encourage a larger success? Do your people feel they are empowered to think differently to find new answers to old questions?

The leaders of industry who set the right expectations, build the right culture, hire the right talent and encourage their people to look for new and better ways to do everything, seem to always be among the winners. The rest are always playing catch up or are caught flat-footed when the market takes off in a new direction.

How are you thinking about leadership and innovation?

Steve works with motivated business owners and executives to find new answers to old questions. He can be reached at 314-983-1214 or innovator@slu.edu.

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