How to Innovate During Challenging Times

Here’s a new, highly-timely way to classify innovations: FLEXIBLE vs. INFLEXIBLE. When chaos abounds, prioritize the FLEXIBLE. Yet companies usually spend most money and time on what’s INFLEXIBLE. Six ways to change the balance are: 1️⃣ Map your innovation portfolio How have you spread your bets along axes such as time horizon, type of risk taken, and ability to change course? Know where your portfolio is currently at, and what profile you wish to move toward. 2️⃣ Create options What are inexpensive bets you can place on ways your world might shift? Consider, for instance, low-cost products that might be embraced by customers feeling acute economic pressures. Perhaps these bets have a relatively large probability of not paying off – that’s OK if they’re taken inexpensively, keeping your financial risk small. 3️⃣ Think platforms, not products Platforms create flexibility to change what you offer customers, while retaining a sticky customer relationship. They often have a software component, even in the world of physical goods. 4️⃣ Stay focused on your customers’ constants We can be certain that today’s chaotic environment won’t settle down soon. But your customers’ Jobs to be Done stay fairly constant. Know those very well and concentrate on them. 5️⃣ Prioritize business model and service innovations Product innovation often takes time and multi-year planning. Business model and service innovations are much more flexible (and cheaper), yet oftentimes companies lack clear mechanisms to pursue these. Fix that. 6️⃣ Pursue Costovation You can concentrate some of the less flexible portions of your portfolio on cost innovation (Costovation), because your costs are often more controllable than your revenues. Use the tools of innovation to radically re-think your costs. The innovation literature has many classifications: disruptive vs. sustaining, existing vs. new market, etc. But it’s been rare to classify flexible vs. inflexible. Now’s the time to change that. When everything seems to be swirling, focus on what’s FLEXIBLE.

Most companies claim they embrace failure. But walk into their Monday meetings, and watch people scramble to hide their missteps. I've seen it countless times. The same leaders who preach 'fail fast' are the first to demand explanations for every setback. Here's the uncomfortable truth:  Innovation dies in environments where people feel safer playing it safe. But there's a difference between reckless failure and strategic experimentation. Let me show you exactly how to build a culture that genuinely embraces productive failure: 𝐂𝐡𝐚𝐧𝐠𝐞 𝐲𝐨𝐮𝐫 𝐩𝐨𝐬𝐭-𝐦𝐨𝐫𝐭𝐞𝐦 𝐦𝐞𝐞𝐭𝐢𝐧𝐠𝐬 Stop asking "Who's fault was this?" and start asking: "𝘞𝘩𝘢𝘵 𝘩𝘺𝘱𝘰𝘵𝘩𝘦𝘴𝘪𝘴 𝘸𝘦𝘳𝘦 𝘸𝘦 𝘵𝘦𝘴𝘵𝘪𝘯𝘨?" "𝘞𝘩𝘢𝘵 𝘴𝘱𝘦𝘤𝘪𝘧𝘪𝘤 𝘥𝘢𝘵𝘢 𝘥𝘪𝘥 𝘵𝘩𝘪𝘴 𝘧𝘢𝘪𝘭𝘶𝘳𝘦 𝘨𝘪𝘷𝘦 𝘶𝘴?" "𝘏𝘰𝘸 𝘤𝘢𝘯 𝘸𝘦 𝘶𝘴𝘦 𝘵𝘩𝘪𝘴 𝘪𝘯𝘧𝘰𝘳𝘮𝘢𝘵𝘪𝘰𝘯 𝘧𝘰𝘳 𝘰𝘶𝘳 𝘯𝘦𝘹𝘵 𝘪𝘵𝘦𝘳𝘢𝘵𝘪𝘰𝘯?" 𝐂𝐫𝐞𝐚𝐭𝐞 '𝐞𝐱𝐩𝐞𝐫𝐢𝐦𝐞𝐧𝐭 𝐬𝐡𝐨𝐰𝐜𝐚𝐬𝐞𝐬' Monthly meetings where teams present their failed experiments and the insights gained. The key? Leaders must go first. Share your own failures openly, specifically, and without sugar-coating. 𝐈𝐦𝐩𝐥𝐞𝐦𝐞𝐧𝐭 𝐭𝐡𝐞 "24-𝐡𝐨𝐮𝐫 𝐫𝐮𝐥𝐞" After any setback, give teams 24 hours to vent/process. Then require them to present three specific learnings and two potential next steps. This transforms failure from a dead end into a data point. Most "innovative" teams are just risk-averse businesses in disguise. They've mastered innovation theater, not actual innovation. Don't let your people think they need permission to innovate. Instead, start building systems and a culture that make innovation inevitable.

Welcome back to the #Ramalytics LinkedIn series, where we’re exploring how to lead boldly through the lens of the Challenger Mindset. In this installment, we’ll explore 2 key strategies: focusing on consumer needs and creating time and space for true innovation. #Strategy 3: Another critical trait of a Challenger Mindset is a relentless focus on consumer needs. Challengers adopt an "outside-in" approach, looking beyond themselves to anticipate future trends and evolving preferences. Challengers aren’t just about creating novel products — they are visionaries who stay connected to their audience and continuously explore ways to meet emerging demands. Adopting this mindset requires staying attuned to consumer behavior by gathering insights, listening to feedback, and pivoting when needed. Read about Nvidia, a company whose success is a reminder to anticipate what consumers will need next, delivering solutions before the need even becomes apparent. #Strategy 4: Challengers Create Space (and Time!) to Innovate It’s no secret that the most disruptive ideas often come from the marriage of deep reflection and unexpected insight. In today’s fast-paced world, it’s easy to overlook the importance of slowing down and giving ourselves the freedom to think creatively. Yet, this very pause is often a Challenger's most potent tool. Take inspiration from Einstein, who valued imagination over knowledge! To build this kind of reflection into daily routines—whether at the individual or organizational level—requires deliberate effort. True innovation demands slowing down to nurture groundbreaking ideas. Embracing the Challenger Mindset Whether you're a start-up looking to break in or an incumbent brand looking to stay on top, embracing a Challenger Mindset means constantly questioning the status quo and daring to innovate in bold, new directions. >> One effective way to create space for innovation is by reducing internal complexity. Continuously ask how much of your organization’s resources are being allocated to managing internal processes. What’s the ROI on that investment? Often, you’ll find that overly intricate internal initiatives can be redirected to high-impact efforts that drive innovation. >> Another principle is to focus on where disruption can happen. Ask yourself and your organization: What legacy practices or mindsets need to be broken to build a stronger future? Push your teams to imagine new possibilities, whether it’s a fresh idea or a new way of tackling an enduring problem. For individuals, embracing a Challenger Mindset means adopting a growth mentality. Seek out new challenges, learn from every experience, and resist the comfort of complacency. Strive to get at least one percent better every day. Where From Here? Achieving Challenger status is a mindset to live every day. It’s worth it. By embracing it, companies and individuals can navigate today’s complexities and lead in shaping tomorrow. #leadership #management

Consider this suggestion that has helped me survive this industry for three decades at Microsoft, Google, and Amazon…during this holiday season step back from the endless cycle of activity and think, reflect, and live in the moment. Being busy every second isn’t what leads to inspired decisions or breakthroughs. Instead, it can stifle creativity, increase stress, and prevent the innovative thinking that moves the needle. Ignore work and be with your family – I guarantee that you will have better ideas and more energy when you restart next year. Here are the specifics: 1. Create Space for Innovation: The best ideas often emerge when you have room to breathe and think. Give yourself permission to slow down over the holidays. With that mental breathing room, you’ll be better equipped to imagine creative approaches, develop new strategies, and identify opportunities that may have been hidden in the day-to-day grind. 2. Prevent Burnout: Non-stop work leads to burnout—worn-down energy levels, reduced clarity, and diminished effectiveness. By intentionally setting aside time to recharge, you protect your mental and physical well-being. Returning to work refreshed means you can hit the ground running with renewed focus, making it easier to channel your energy into the projects that drive real results. 3. Refresh Your Objectives: Innovation doesn’t just appear out of thin air; it emerges when you thoughtfully consider what’s been working and where you can improve. Use the slow ramp at the start of the year to reflect on the road ahead. Coming back with a fresh perspective will help you zero in on what matters most, ensuring your efforts align with your core objectives. 4. Invest Time in Yourself: Slowing down provides time for learning and personal growth—reading, thinking, or exploring new perspectives outside your normal routine. By expanding your horizons during the break, you return to the office with heightened curiosity and sharper judgment, ready to tackle complexity. This holiday season, step away from the mindset that more activity equals more success. Instead, recharge. Let your mind wander. Immerse yourself in moments that inspire you. By doing so, you’ll return to work with greater clarity, a fresh sense of purpose, and the creative momentum.

In complex times, it’s not just creativity that wins—it’s CREATIVITY x FOCUS. I once worked with a leader who was wildly creative. Every meeting was a brainstorm. Every brainstorm… well, sometimes more of a rabbit hole than an ideation session. Their team had intermittent successes. But as the market tightened and resources thinned, their team stalled. There were simply TOO MANY ideas. And not enough action. Contrast that with an innovation leader I recently coached. She had that same spark—but she anchored it in clarity. Clarity about her strategy. Clarity about her customer. And in turn, clarity about the value her idea could deliver. The result? Speed. Traction. And a team that felt energized, not overwhelmed. Because in complex environments, creativity without focus? It’s like drinking from a firehose. But focus amplifies creativity. It filters. Sharpens. Aligns. And that’s where real magic happens. Focus x Creativity = Velocity + Value Feeling the swirl right now? Try this: —> Get clear on your north star (your customer’s need AND your org’s core strategy). —> Use it to focus your next idea sprint or team brainstorm. —> Then watch creativity turn into meaningful progress—not just motion. What’s one way you stay focused when things get noisy? #innovation #focus #creativity #leadership #jugaad #doingbetterwithless #keynote