A lot of executive leaders fear disruption, but one of the most effective ways to keep them at bay is by showing delicate power with innovation. Companies like Blockbuster, the king of video rental, and Kodak, the leader in photography, were feared of disruptors who might steal their ideas. Fortunately, the CEOs at Power recognized this and responded by getting close to them and sometimes taking a stake in them. In a recent interview with Harvard Business Review, Orr explains why he has chosen this approach.
The power to intensify innovation:
A company’s environment can also influence its success. In the Medico case, a new treatment for leukemia was introduced, and managers tried to foster a sense of community. They created a ‘community of practice’ focused on the disease. However, they only used the community as a rhetorical device. Eventually, they realized that they did not have the power to intensify innovation. A shift in management practices and strategies was evident in this case, as managers sought to build a ‘community of practice’ that would focus on the disease and its treatment.
Passion for the project:
Passion for the project is another crucial element. This helps innovators cope with failure, but it also buffers their emotions. Without passion for the project, they may give up quickly and fall back to safer tactics. A company’s management practices and strategies can also influence the success of an innovation. To ensure success, a founder should assess his or her own interest in the project, as it will ultimately determine whether the venture will be a success. While this may not be an ideal situation for the founder of a new product, it will increase the chances of success for the new product or service.