Ducks in a Row: Too Much Innovation
by Miki Saxon
Increasing innovation is on every CEO’s mind these days no matter how hot their current product/service, because innovation is what’s necessary to ensure their company’s future success.
But is there such a thing as too much innovation?
Ever hear the phrase ‘too much of a good thing’?
Innovation is good, but too much can kill as quickly as too little.
For proof, consider the story of Lego, which, after 56 years of growth almost bankrupted itself by developing a total ‘culture of innovation’ based on expert thought and best practices.
Kirk Christiansen [CEO] and his leadership team adhered to nearly every one of the major principles that are widely prescribed by experts in launching its spate of innovation in 2000 (…) “LEGO followed all the advice of the experts and yet it almost went bankrupt.” –David Robertson, Wharton practice professor of operations and information management, who studied the company and has a new book documenting what happened.
In turning itself around Lego did not pull back from innovation, rather it organized and channeled it.
Management gave everyone from the sales force to the headquarters staff the capability to create and suggest new avenues for growth. But their ideas were put to the test: Any innovation had to prove to be consistent with the company goal of LEGO being recognized as the best company for family products.
Did the new approach work?
Consider the numbers over the last three years and you decide,
- sales have gone up an average of 24% annually;
- profits have grown 41%;
- third largest manufacturer of play materials; and
- is in more than 130 countries.
Lego is positive proof that best practices work only when managed and tailored for each individual situation—even though they are usually billed as “one size fits all.”
Flickr image credit: Benjamin Chun
