People planning innovation to business

The Real Reason Innovation Stalls in Most Companies

Innovation: Everyone Wants It, Few Achieve It

Ask any CEO if innovation matters and the answer will be unanimous. PwC’s Global Innovation Benchmark survey found that 61% of executives cite innovation as a top priority—yet only a fraction believe their organizations are good at it.

Why the gap? It isn’t because employees lack ideas. In fact, most organizations are overflowing with them. The problem is that ideas get stuck—drowned by bureaucracy, suffocated by committees, or dismissed as “too risky.”

Albert Einstein famously said: “If at first the idea is not absurd, then there is no hope for it.” Innovation requires space for ideas that may sound impractical before they prove transformative. Unfortunately, most corporate environments reject absurdity in favor of safety.


The Myths That Kill Innovation

  1. The Myth of the Lone Genius
    Leaders sometimes wait for a visionary to show up with the “next big idea.” But innovation is rarely born from isolation. It’s usually the product of teams reframing challenges together.

  2. The Myth of Endless Resources
    Executives fear that innovation will drain budgets or distract from “real work.” In reality, structured innovation creates efficiency by solving problems more effectively.

  3. The Myth That People Aren’t Creative
    Too many organizations believe creativity is reserved for a select few. The truth? Everyone is creative. Adults have often just had their creativity trained out of them by rigid systems.

  4. The Myth of the Perfect Plan
    Innovation doesn’t emerge fully formed—it grows through experimentation, failure, and iteration. Waiting for perfect conditions is a recipe for stagnation.


Why Innovation Stalls in Most Companies

  • Committees Smother Momentum
    Committees often default to the safest ideas, creating “watered down” outcomes. Boldness is lost in compromise.
  • Short-Term Thinking
    Pressure for quarterly results pushes leaders to prioritize quick wins over long-term breakthroughs.
  • Fear of Failure
    Employees hesitate to pitch unconventional ideas when they fear punishment for mistakes.
  • Disconnected Strategy
    Innovation efforts die when they don’t connect to the company’s mission and customer needs.
  • No Clear Process
    Without structured methods to evaluate and test ideas, organizations waste energy chasing possibilities that never mature.


Case in Point: Kodak’s Missed Opportunity

Kodak invented the digital camera in 1975. But leadership shelved the idea, fearing it would undermine film sales. By the time they embraced digital, competitors had captured the market.

Kodak didn’t lack ideas. They lacked the clarity and courage to act.


Case in Point: The Airline’s Turnaround

A major airline faced mounting customer complaints. Committees debated endless solutions—loyalty perks, meal upgrades, new seating layouts—but change stalled.

When the leadership team reframed the challenge as, “How might we make flying less stressful for customers?” employees offered bold, simple solutions: clearer boarding processes, better signage, proactive communication during delays.

Customer satisfaction soared within a year. Innovation emerged not from technology, but from clarity and reframing.


How to Reignite Innovation

  1. Ask Better Questions
    Replace “What should we do?” with “How might we…?” This reframing opens new possibilities.

  2. Empower Cross-Functional Teams
    Break down silos by bringing diverse perspectives together.

  3. Create a Safe Space for Absurdity
    Encourage ideas that seem impractical at first—they often spark breakthroughs.

  4. Prototype Quickly
    Test ideas in small, low-cost ways before scaling. Speed matters more than perfection.

  5. Connect to Strategy
    Innovation should always tie back to customer needs and organizational goals.

  6. Celebrate Attempts, Not Just Success
    Recognize teams for experimenting, even when ideas don’t pan out. This builds a culture of courage.


The Business Benefits of Innovation

  • Growth: Companies that prioritize innovation grow revenues 2.6x faster than peers (BCG).
  • Resilience: Innovative firms pivot faster during market shifts.
  • Talent Retention: Employees stay engaged when they feel empowered to contribute ideas.
  • Customer Loyalty: Customers flock to brands that continuously improve and surprise them.


Actionable Takeaways

  • Bust the myths—innovation is not about lone geniuses or big budgets.
  • Recognize that creativity exists in everyone.
  • Structure innovation so that ideas are captured, tested, and scaled.
  • Use “How might we” questions to spark collaboration and possibility.
  • Balance long-term breakthroughs with short-term wins.


FAQs


Is innovation only about new products?

No—innovation applies to processes, customer experiences, business models, and culture.


What if my company has too many ideas and not enough resources?

That’s normal. Prioritize ideas that align with strategy and test them quickly.


How do I overcome fear of failure?

Model it at the top. When leaders admit mistakes and celebrate learning, employees feel safe to innovate.


Conclusion

Innovation isn’t stuck because people lack ideas. It’s stuck because companies fear absurdity, prioritize safety, and lack structure. The truth is, every idea is absurd at first—but those absurdities often change industries.

Leaders who create clarity, ask better questions, and empower teams don’t just avoid stalls—they unleash innovation that drives distinction.

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