November 2021 Volume 3

OPERATIONS & MANAGEMENT

Innovating Leader 101 – The Five Requirements to Becoming an Innovating Leader By Joel Strom and Gary Covert

Sears used to be known as an innovative company. Their name used to be an integral part of the Chicago skyline. You couldn’t miss their tower. But they lost their edge, and they lost their tower. Their experience has become a cautionary tale. Unfortunately, they are not alone among once-innovative companies that lost their relevance. Kodak, Blockbuster, Blackberry, and many others are members of that infamous club. Whatmight havemade a difference in these former icons of business? The answer is always the same, Innovating leaders. Innovating leaders could have made a difference in those that lost relevance in the market. Then, if you look at the current stand-out companies, the current winners, you realize that they are or have been all led by innovating leaders. Amazon, SpaceX, Carvana, to name just a few, have revolutionized their industry under innovating leadership. But what really makes an innovating leader? What qualifies a leader to claim to be an innovating leader? Ask any leader if they are innovative, and their likely response will be “yes”. Or perhaps if they are a little more honest, their answer may be “I think so” or “I hope so.” But today it’s way too competitive to not be sure. Leaders today must be positive they are being the kind of leader that will keep their companies both healthy and relevant. They need to be focused on taking full advantage of the opportunities presented by the changes occurring in their industries and stay ahead of the curve. So how can leaders move from “I hope so” to “I am definitely an innovating leader”? Here are five keys to moving toward innovating leadership. 1. Own it. 2. Create a culture of innovation. 3. Think bigger about innovation. 4. Be proactive and not just reactive. 5. Use innovation capacity to make relevant changes. Own It This is number 1 for a reason. Believing in innovation and living it every day in every way is the most basic and maybe the most important requirement for becoming a successful innovating leader. If you don’t own the attitude, if you don’t live it every day, it will be nearly impossible for you to create the necessary innovation environment and culture (see number 2) in your organization. Your people will feel it if you live it. They will know that you are

100% behind their innovative ideas and 100% against their being comfortable with “the way we have always done it”.

Create A Culture of Innovation Once you own it, it will be much easier to meet the second requirement, creating an organizational culture that supports and encourages innovation in everything the organization does. A culture of innovation continually promotes innovation not simply in new products and services but in every activity, process, or procedure in the company. A culture of innovation creates a place where it is not only ok to fail but where failure is encouraged. To innovate at a level that satisfies an innovating leader, means people will try new things and they will often fail. This will enable them to feel comfortable reaching for difficult but important innovations without fear of failure. Think Bigger About Innovation Innovating leaders think big about innovation. Many times, leaders think they are being innovative, but they are thinking too small to be a true innovating leader. You can spot a leader thinking too small about innovation if they think innovation is limited to products that innovation is something only select groups need to be working on. Innovating leaders do not limit themselves to products. Peloton has been successful because it not only has great products, but it also established an innovative community that people love to be part of. Investment companies are always creating new products, but they also invest heavily in high-speed trading platforms that allow them to make more transactions faster, an advantage that can be worth millions and millions of dollars. Innovating leaders look for opportunity everywhere. This includes supply chain, customer experience, sales methodologies, process enhancements, and anything else in the company that can be improved.

FIA MAGAZINE | NOVEMBER 2021 48