“The road to new innovation is messy. Leaders need to foster a culture that rewards those that fail quickly, but builds on that failure to get to an innovation that does work.”
Over the last half-century, Peter Drucker and so many others developed a thorough and proven approach to leadership and management, one that focused on eliminating defects: Lean/Six Sigma. Command and Control.
The lesson? Variability and failure are bad. This model works great when change comes slowly to an industry.
However, technology, the digitization of everything and the vast global network are fostering new business models that render the old business models irrelevant practically overnight. Conventional wisdom says that we are in an era where the pace of change in the new century will force us to redefine the rules for how businesses operate and compete. This will require us to redefine our approach to leadership and management for business and industries to deal with rapid innovation.
Indeed, what we are seeing today is that companies in rapidly changing industries that use the old approach to leadership and management are clearly struggling. Dominating the headlines: Example after example of companies that need to innovate, but fail to.