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One of the hardest truths about innovation is that today’s solution can create tomorrow’s problems. In other words, no single victory guarantees future achievements.
Whether corporations have achieved stunning success or are just looking for early traction, they face many of the same obstacles to progress. The more deeply entrenched they grow to be in today’s practices and products, the less likely they are to achieve latest profits.
As the leader of a company with iconic brands like TiVo, which introduced the DVR set-top box, and DTS, which found success by delivering Blood-curdling dinosaur sounds in “Jurassic Park” to movie theaters, I witnessed the thrill of developing groundbreaking advances in entertainment technology, in addition to the pressure to steer these corporations into the future. Here’s what I learned about breaking down barriers to sustain innovation.
Objectivity is a superpower
Focusing on past successes may cause us to cling to what once worked fairly than looking to the future.
There is no shortage of examples of this in business. Take Kodakwho had the resources to dominate the digital imaging market but insisted on modeling its digital business on its film business. So when digital photography, and eventually cell phones, completely transformed the market, Kodak filed for bankruptcy—a leadership failure stuck in the past.
Progress requires breaking the tight grip on our accomplishments and as an alternative striving for objectivity. This means continuously assessing the opportunities on the horizon in addition to monitoring the threats ahead. One of the most significant assets leadership can bring to the table is sober evaluation, which will help signal when it’s time to change direction.
But it is not all the time easy. My company has reached this tipping point many times. For example, we saw tremendous growth when our revolutionary theater audio system debuted in Jurassic Park. But the technology was based on film. Within a few years of the film’s release, it became clear that the future was digital. So we sold half the business—the very technology that catapulted us to prominence. It was an emotionally draining decision. It was also the right decision, allowing us to reposition ourselves in the digital world.
But it’s vital to note that one of these radical objectivity is only possible in a company culture that values constructive criticism and transparency—where leaders, managers, and teams challenge each other to overcome biases toward success.
Company culture should focus on adding value
Another obstacle to innovation? Not engaging your people in the journey.
IN global study75% of respondents said they didn’t receive input into developing a shared vision for their work. An identical percentage said their work didn’t give them purpose.
A culture without purpose — “Why” — is a recipe for stagnation. Cultivating progress requires a clear expectation that employees will engage and strive to continually add value. At the same time, it requires the company to motivate employees to develop their skills and contributions — promoting out-of-the-box considering, supporting personal and skilled development and providing opportunities for profession advancement.
But employees need greater than just a goal; they need to feel like their contributions are valued.
I’ve found that our team is more tolerant of progress when they have some context and influence over how it is going to occur. We start changes with a clear plan for who, what, and when, and we consider the implications for all stakeholders. Sometimes we start with a pilot or survey to gather vital information about the change. This effort sets the stage, enabling worker feedback and the buy-in required for larger changes in the future.
I saw it with my very own eyes big connection we did this in 2020. We developed a clear strategy for combining and then separating two parts of our business over time. We explained that up front with a ton of context, found our change champions, and then spent the next two years executing and adapting to successfully execute our strategic plan.
Interestingly, a transformational opportunity like a merger also offers powerful ways to evolve and innovate culture. I encourage leaders to integrate as early as possible to not only ensure the success of the transaction but also to challenge and reset cultural norms. Reinforcing the best points of each corporations’ cultures provides a refreshing experience.
Data is essential, but it doesn’t have the final say
Data equals power. Except when it doesn’t.
JCPenney made this costly mistake. The company used data suggesting that customers wanted lower prices to justify moving away from promotional prices to on a regular basis low prices. The effort backfired; they failed to consider that their customers were motivated not only by low prices but also by promotions themselves.
I value data greatly. And sometimes it may explain a subtle problem. But when it comes to solving the nuances of a problem, interpretation and contextualization are as vital as the numbers themselves.
For us, this looks like continuously comparing latest data with longer arcs of technology, like the concept that processing power increases over time while costs decrease. We also consider our a long time of victories and defeats.
Sometimes this packet of data points us to key insights. Years ago, when consumers first began using headphones, the technology didn’t exist to pack high-quality surround sound into them. At the time, the data showed that folks wanted convenience over quality, so the industry produced headphones to meet that demand.
We interpreted the data in another way, predicting that ultimately our research combined with these technological arcs would allow us to deliver a high-quality headphone experience, and consumers would once again demand quality. Fast forward to today: our headphones are now outstanding technology used for advanced games.
Partnerships can unlock unseen potential
Focusing solely on internal innovation can hinder one other vital way of progress: collaboration.
Most innovations don’t come from scratch, but from modifying an existing product to create a surprising latest feature. For us, progress often means building partnerships in adjoining industries. The key? Both sides need to profit from using each other’s markets and technologies to deliver something that every one their customers love.
These strong relationships have resulted in countless innovations. For example, partnership with BMW brought our immersive entertainment technology from the showroom to the vehicle. This partnership opened up a latest vertical for us, while also allowing BMW to meet the demands of drivers increasingly using their cars as third space for rest.
Sustaining innovation is never a small feat. It takes a massive and sustained effort to change the course of a large, established organization with many moving parts. On the other hand, younger corporations may not have the capital and advanced data required to shift gears, or they could have founders who are too wedded to early visions or wins. Regardless, embracing objectivity, cultivating a culture of continuous value-adding, and searching for guidance from contextualized data and external stakeholders will help a company avoid the trap of one hit and as an alternative enjoy the euphoria of many more innovations to come.