Why innovation needs leadership

... and doesn´t just strike like a bolt of inspiration

Dear readers,

A study by the Boston Consulting Group shows that 83% of executives rank innovation among the top three priorities for their company. Yet in practice, it often remains a challenge. Why? Because innovation is not a product of chance, it doesn’t spontaneously appear in meetings or through sudden flashes of inspiration. It requires a systematic approach, clear structures, and above all: leadership.

Companies that successfully drive innovation don’t treat it as a “nice-to-have.” They embed it as a core part of their strategy. The goal isn’t to constantly reinvent the wheel, but to evolve continuously for customers, employees, and the organization itself.

Two time horizons: Keeping today and tomorrow in view

One of the biggest challenges is this: How do you succeed today while setting the stage for the future?

The key is to approach innovation with two time horizons in mind:

1. Optimizing the existing: Streamline processes, improve products, elevate the customer experience – essentially improving day-to-day operations
2. Creating the new: Identify trends, develop new business models, and prepare for what your customers might need tomorrow or the day after.

It’s like driving a car while keeping both the road ahead and the navigation system in view, not easy, but doable.

Corporate culture as an innovation engine

Innovation thrives where people have the space to ask questions, rethink processes, and explore unconventional paths. It requires an environment that fosters creative thinking, welcomes new perspectives, and sees collaboration as key to success.

What does this look like in practice?

• Be open to new ideas

Those who always say, “We’ve always done it this way,” won’t win any innovation awards. Be ready to let go of old thought patterns and welcome unconventional ideas.

Companies with strong innovation cultures question the status quo and leave well-trodden paths. They foster interdisciplinary collaboration because the best ideas often emerge at intersections. Cisco, for example, organized the global “I-Prize” innovation competition, inviting teams from over 100 countries to submit ideas, one of which became a billion-dollar business unit.

• View mistakes as learning opportunitoes

Yes, you read that correctly – mistakes are allowed. In fact, they’re essential. Innovation involves risk, and fear of failure prevents experimentation.

Companies like Tata and Spotify embrace failures deliberately: Tata hosts a “Failure Festival” to learn from unsuccessful projects, while Spotify installed a “Fail Wall” in its offices where teams share mistakes and insights.

• Encourage interdisciplinarity

The most exciting ideas often arise where different perspectives meet. Mix your teams, encourage exchange, and provide space to experiment.

An innovation-friendly culture is fertile ground for new ideas. Google, for example, implemented the 20% rule, allowing employees to dedicate part of their work time to personal projects, leading to breakthroughs like Gmail. Adobe encourages experimentation with its “Kickbox” toolkit, including a budget for testing new ideas.

Creativity: The driver of innovation

When discussing innovation, we cannot ignore creativity. It is the origin of every great idea – yet in corporate life, it is often underestimated. Creativity is more than a spontaneous insight; it is hard work that must be actively nurtured. Without creative freedom and the courage to explore unconventional paths, innovation often remains a buzzword.

Caution: creativity alone is not enough. It must be embedded in structured processes to deliver real value.

Customer focus: The true innovation accelerator

At the heart of every innovation should always be the customer. And I don’t mean simply asking what they want today (the answer is often “faster and cheaper”).

Truly innovative companies think ahead, anticipating what customers will need in the future even before the customers themselves realize it.

For example, many companies have invested in digital solutions that not only simplify life for their customers but also create a “wow experience.” That’s the difference between “nice” and “genius – I want more of this.”

Innovation needs leadership

Now we reach the core: Innovation doesn’t happen by itself. It needs people to guide the way – it needs leadership. As a leader, you are the pivot that enables, supports, and drives innovation.

What does that mean in practice?

• Create visions

Innovation needs direction. Give your team a clear picture of where the innovation journey is heading. An inspiring vision acts as a North Star, ensuring everyone works toward the same goal instead of scattering efforts across isolated initiatives. Without it, innovation is like rowing without oars – lots of movement, little progress.

• Provide necessary resources

Creativity can’t be switched on at will, it needs time, space, and support. Ensure your team isn’t consumed by daily tasks but has capacity for new ideas, including financial resources, expertise, and the courage to experiment. Breakthrough ideas rarely arise while employees sort spreadsheets until midnight; they happen when there’s room for genuine innovation work.

• Inspire change

Innovation always involves change and change can be intimidating. Your job is to replace fear with enthusiasm. Show that new paths are not just necessary, but full of opportunity. Foster a culture where failure is not a stigma but part of the learning process. And remember: your attitude matters. Leaders who demonstrate curiosity and openness inspire the same in others. Sometimes a motivating word or a sincere smile is enough.

Innovation in business is not an end in itself. It is a strategic necessity to remain successful in the long term. But it doesn’t happen on its own, it requires your active leadership. Leaders who treat innovation not as a short sprint but as a continuous process lay the foundation for sustainable growth. They nurture culture, provide direction, and create the space where creativity and progress can thrive.

Yours,
Daniel Keller

Image source: Photo by Freepik