Introduction
Innovation is one of the most overused words in business, and one of the most misunderstood. Over the past decade, I’ve seen industry leaders champion it as the key to long-term growth while also watching countless innovation efforts fail to deliver.
The data is sobering: McKinsey points to innovation as an engine for industry momentum, yet other studies highlight that nearly 9 out of 10 business transformations fail to achieve their goals. Articles like “Why Corporate Innovation (very often) Fails: The Complete Picture” and “88% of business transformations fail to achieve their original ambitions; those that succeed avoid overloading top talent” are all too common.
So where does that leave large enterprises? Should they give up?
Absolutely not. The problem isn’t that enterprises can’t innovate, it’s that they often swing too big and try to scale too fast. The path to real impact comes from micro-wins: small, contained demonstrations of value that build confidence, alignment, and momentum over time.
Learning from the euphoria and heartbreak of innovation efforts
You may be thinking that this is yet another post claiming to have the recipe for easy innovation. There are plenty of “cookbooks” that make success sound inevitable.
Real-world efforts, however, reveal the difference between embracing a micro-win mindset and ignoring key principles of the mindset. For example, in 2019, early in the maturation of AI feature store capabilities, we partnered with a venture capital firm to identify Techton as a leading feature store startup. A small, empowered team from the enterprise innovation group collaborated transparently with business experts. Through a series of small, manageable outcomes, the solution gained adoption and transitioned successfully into the enterprise IT department.
By contrast, another initiative created an embedded startup focused on helping seniors and their caregivers. While the mission was worthy, the approach became a costly learning experience. The initial bet was too big and came inorganically, limited understanding of the effort impacted broader organizational alignment, and market complexities compounded the challenge. Ultimately, the effort failed.
These two stories highlight the stark difference between innovation efforts that succeed and those that fall short.
Micro-wins Mindset
- Avoid the “grand idea” trap. Senior leaders may push for big, all-in bets, but true breakthroughs often emerge from unexpected places.
- Leverage company “superpowers”. Innovation rooted in the core capabilities of an organization is far more likely to stick.
- Plant 100 small ideas. Most will fail, but a few will scale. Small bets build resilience, discipline, and the muscle to walk away.
- Push for clear support. Every idea needs backing. Silence from leaders is usually an implicit “no”, don’t mistake it for approval.
- Collaborate broadly. In and outside the organization, collaboration sharpens ideas, builds trust, and is vital for teams apart from core product groups.
- Make transparency a habit. Innovation crosses boundaries, and without regular updates and open sharing, leaders may assume the worst.
Let’s win together
I believe innovation and reinvention is essential for healthy organizations. I have offered a few ideas to consider. There is no absolute playbook. If there was, everyone would be using it. Let’s win together! Please add your thoughts to the discussion.