The True Measure of Innovation — Inefficient Problem Solving

In the quest for innovation, the road less traveled is often the most rewarding. This notion is echoed by thought leaders like Simon Sinek: innovation is not about efficiency but effective problem-solving. This perspective shifts our understanding of productivity, particularly in product development, design, service creation, and innovation functions.

The Misconception of Efficiency in Innovation

The traditional business metric of productivity — output divided by input — misleads many into a false sense of progress when applied to innovation. In realms where innovation is critical, this metric can push teams towards cost-cutting and optimizing for speed rather than value creation. As Simon Sinek highlights in his discussions, true innovation is inherently inefficient. It does not demand a unique solution at its inception. Still, it involves a deep understanding of the problems at hand and crafting solutions that genuinely address them, regardless of their novelty.

The Nature of Problem Solving

Effective problem-solving is not a linear process. It is characterized by learning through experimentation, which often involves a series of failures and detours. These steps are crucial, not because they are efficient, but because they allow for discovering and refining solutions that truly work. This iterative process, though time-consuming and resource-intensive, is the bedrock of genuine innovation.

Measuring What Matters

So, how should productivity in innovation be measured? The key lies in focusing on the real outcomes rather than the artifacts of the process. Traditional metrics like the number of units produced or features developed can be misleading. Instead, consider these more indicative metrics:

• The increase in the number of new customers versus those lost to competitors.
• Improvement in win rates against discrete competitors.
• The ability to command profit margins above industry averages.

These metrics reflect the true essence of innovation — solving problems effectively and adaptively. They represent not just the creation of new products or services but the actual resolution of customer issues and the enhancement of user experiences.

Shifting the Paradigm

To cultivate a truly innovative environment, organizations must redefine success in product development. Success should be seen as the result of continuous learning, rigorous experimentation, and problem-solving. This redefinition will shift the focus from merely generating outputs — such as features or SKUs — to creating meaningful outcomes that enhance customer satisfaction and competitive advantage.

The Outcome of Embracing Inefficiency

By embracing the inefficiency inherent in genuine innovation, companies can foster an environment where creativity and problem-solving thrive. This approach might seem counterintuitive in a business world prioritizing efficiency and speed. However, it’s a necessary shift for those looking to lead in innovation and truly make a mark in their industries.

Innovation isn’t just about solving problems — it’s about solving them right. And often, the right way isn’t the fastest or the cheapest but the most insightful and impactful. As we continue to explore the depths of what it means to be genuinely innovative, let us remember that the best solutions often come from the willingness to explore, experiment, and, occasionally, fail.

In the words of Simon Sinek, understanding the contrast between innovation and efficiency is crucial. As leaders and innovators, we must focus on how quickly or cheaply we can create solutions rather than how well these solutions address our customers’ honest and evolving needs. It’s time to redefine productivity and embrace innovation’s messy, chaotic journey — where the real value lies.

What Now?

Could you reflect on your current measures of success and productivity? Are they aligned with the actual goals of innovation? Consider how shifting these metrics could change your approach and lead to more substantial and lasting impacts in your industry.