How to Embrace Change and Drive Innovation

I've scaled AI and cloud across industries. Yet the real lever? Shaping a culture where innovation is instinctive, not an initiative. Here’s how I do it Tech alone doesn't drive change. It's the human element that sparks true innovation. Here's what I've learned about fostering a culture of innovation: 1. Embrace curiosity at all levels Encourage questions, exploration, and continuous learning 2. Reframe failure as feedback Create safe spaces for experimentation and iteration 3. Cultivate diverse perspectives Innovation thrives when different viewpoints collide 4. Empower decision-making Trust your team to take calculated risks 5. Celebrate small wins Recognize progress to maintain momentum 6. Connect tech to purpose Help everyone see how innovation impacts the bigger picture 7. Foster cross-functional collaboration Break down silos to spark unexpected ideas 8. Lead by Pizza Model the innovative mindset you want to see and award teams with Pizza parties. Remember: The most powerful tool in your tech stack is the collective mindset of your team. Shift your focus from just implementing new tech to nurturing the innovative spirit of your people.

In “The Venture Mindset”, we explore how successful companies foster innovation by prioritizing people over rigid processes. However, placing people over process does not mean that there is no process at all.     Chaos doesn't necessarily translate into innovation; moreover, it can easily destroy ideas. The design should facilitate cutting through quite a bit of the internal bureaucracy and keeping the development team small, independent, fluid, and protected from internal politics. Let's examine two examples of this principle in action: Case Study 1: Gmail at Google Google's approach to Gmail is a textbook example of the power of trusting talented individuals: 1. The project started with a single engineer, Paul Buchheit.  2. Leaders provided a vague directive: "Build some type of email or personalization product."  3. There were no strict feature lists or rigid processes.  4. Google executives supported the project and bet on its potential. Result: Gmail revolutionized email services and became one of Google's most successful products.    Case Study 2: The Happy Meal at McDonald's The Happy Meal's success shows how intrapreneurship can thrive even in traditional corporate environments: 1. Yolanda Fernández de Cofiño, a McDonald's franchisee in Guatemala, developed the concept.  2. She created a children's menu without approval from headquarters.  3. McDonald's world conventions allowed for idea exchange.  4. Executives recognized the potential and scaled the idea globally.  Result: The Happy Meal became a worldwide success and a staple of McDonald's offerings.    Here is what you can do to support the employees in your company:  1. Trust your talent: Give motivated individuals the freedom to pursue their ideas.  2. Provide resources: Offer support and necessary tools without micromanagement.  3. Create "racetracks": Design systems that allow for rapid development and testing of new ideas, with clear funding mechanisms, simple rules, guardrails, and milestones.  4. Embrace calculated risks: Be willing to bet on promising projects, even if they're unconventional.  5. Scale successes: When local innovations show promise, be ready to implement them more broadly.    How does your organization balance structure and freedom to foster innovation? Share your thoughts and experiences in the comments! #stanford #stanfordgsb #venturecapital #startups #innovation #technology #founders #venturemindset 

This stat really struck me: most breakthrough innovations come from executing existing ideas in new ways. Our first instinct when seeking change is often to look outward for something entirely new. New habits, new tech, complete overhauls, etc. But especially when we need to be cost-conscious, we need to embrace a different mindset. Look inward first. Scale what's working. Rigorously analyze what isn't – can you extract value or apply it differently? Innovation isn't always about the never-before-seen. It's often about leaning into what works, exploring all its uses, and sparking small wins into something transformational.   I saw this firsthand at HSN when we launched HSN Arcade. The idea was innovative, but simple: combine casual online gaming with ecommerce to create a fun “Watch, Shop, and Play” experience. It all started when I saw someone totally hooked on Candy Crush. That got me thinking, how can we integrate gamification into our platform using our brands and talent as personalities? In the process, we brought that same addictive, engaging experience into HSN’s digital platform. Not only was it highly engaging, but it also had a drastic impact on business performance. Players visited 3x more often, spent 3x more time on the platform, and spent 3x more money with us. And remember HSN Shop by Remote? It was groundbreaking, but at its core, it was about understanding our audience's growing desire for more convenient, accessible ways to shop. These weren’t just innovative projects, they were bold moves powered by a willingness to ask, “What if?” instead of panicking over “What now?”   So, let's not fall into the trap of believing that innovation demands a complete overhaul. Embrace the nuances within your existing frameworks. Cultivate a culture that thrives on smart experimentation. And most importantly, empower your teams to see the current ideas as the critical starting points for your next big breakthrough. They just might need to be explored and connected in a whole new way.

Unfortunately so many potentially game-changing ideas die in conference rooms, buried under an avalanche of "yes, but..." comments? Here's a reality check about consensus: if everyone immediately agrees with your bold idea, it might not be bold enough. Think about how evolution works in nature. The most successful adaptations often start as mutations that seem strange or risky at first. The same principle applies to innovation in business. When Netflix proposed streaming instead of mailing DVDs, when Apple removed the headphone jack, when Amazon suggested selling more than just books – these weren't consensus decisions. They were bold moves that probably made a lot of people uncomfortable. Here's what's fascinating about true innovation: it often makes perfect sense only in retrospect. The most transformative ideas usually sit in that uncomfortable space between "this could change everything" and "this could fail spectacularly." When organizations insist on watering down every idea until everyone feels comfortable, they're not actually reducing risk – they're guaranteeing mediocrity. The real magic happens when companies create spaces where bold ideas can survive early skepticism. This doesn't mean ignoring valid concerns or rushing into every wild suggestion. Instead, it means developing the wisdom to distinguish between ideas that are risky because they're bad and those that are risky because they're challenging the status quo. It's about understanding that sometimes, the highest-impact ideas will make many people nervous at first. Consider this: if Galileo had needed unanimous consensus from his peers, we might still believe the sun revolves around the Earth. Innovation, by its very nature, often challenges established thinking. The key isn't to achieve universal agreement – it's to create systems where potentially transformative ideas can be tested and proven, even if they don't have widespread support initially. What's your experience? When has pursuing a controversial idea paid off? How do you balance the need for alignment with the courage to pursue bold directions? #Innovation #Leadership #DecisionMaking #BusinessStrategy #ChangeManagement

Far too often, I see leaders and companies move on from innovation, believing it's only necessary during the startup phase. In reality, it's what keeps companies alive and thriving. As companies grow, it's easy to fall into routine and let creativity fade. But innovation must continue-even as you scale. An older HBR article I came across this morning highlights how breakthroughs in management can create lasting advantages that are hard to replicate. Companies focused only on new products or efficiency often get quickly copied. To stay ahead, businesses must become "serial management innovators," always seeking new ways to transform how they operate. This idea remains as relevant now as it was back then. The benefits of sustained innovation are undeniable: •Competitive Edge •Increased Revenue •Customer Satisfaction •Attracting Talent •Organizational Growth and Employee Retention Embrace the innovation lifecycle-adapting creativity as your organization matures. Sustaining creativity means creating an environment where people feel safe to push boundaries. Encourage your teams to think big, take risks, and use the experience of your organization. Here are three strategies that I’ve seen work firsthand: Make Experimentation a Priority: Mistakes are part of the process—they help us learn, grow, and innovate. As leaders, share your own experiences with risk-taking, talk about what you've learned, and celebrate those who take bold steps, even when things don’t go as planned. It sends a powerful message: it's okay to take risks. Promote Intrapreneurship: Many of the best ideas come from those closest to the work. Encourage your people to think like entrepreneurs. Give them ownership, the tools they need, and the freedom to explore. Whether it’s through ‘innovation sprints’ or dedicated time for passion projects, showing your team that their creativity matters sustains momentum. Address big challenges, ask tough questions, and let your people feel empowered to tackle them head-on. Break Down Silos: True innovation happens when people connect across departments. Create opportunities for cross-functional interactions-through gatherings, open forums, or spontaneous connections. Diverse perspectives lead to game-changing solutions, and breaking down silos opens the door to that kind of synergy. Innovation doesn’t happen by accident. It requires dedication, a commitment to growth, and a willingness to challenge what’s always been done. To all the leaders out there: How are you ensuring your teams remain creative and engaged? What strategies have you found that create space for bold ideas within structured environments? —-- Harvard Business Review, "The Why, What, and How of Management Innovation" #Innovation #Leadership #ContinuousImprovement #Creativity #BusinessGrowth #Intrapreneurship #CrossFunctionalCollaboration #ImpactLab