From Strategic Focus to Strategic Innovation
When I talk to leaders, most tell me the same thing: their organization is focused on efficiency and operational improvements. It’s what keeps things running smoothly, what they call their “strategic focus.” And I get it, it feels like the safe, smart thing to do.
But here’s the thing. The strategic focus, generally accepted as the idea of matching resources to external opportunities and executing as well as possible, only works when we can see those opportunities clearly. The moment we try to look further ahead, into the unknown, things get fuzzy. And when the future is unclear, this kind of strategic focus stops working.
That’s when we need to shift gears, from focusing solely on efficiency to embracing strategic innovation.
So, What Is Strategic Innovation?
Think of it this way: strategic innovation is about making big, bold changes to the business model, or even adopting a completely new one. In time, not over night. Sometimes, this happens because a company decides to take control of its future and make the leap intentionally. Other times, external forces like market disruptions or economic changes push the company into making those changes.
Here’s the tricky part: when you’re the one driving the change, you have time to think, experiment, and plan your next steps. But when change is forced on you by outside pressures, it’s often rushed and messy. That’s when companies get into trouble, and some struggle to keep up, some end up merging with others, and some, unfortunately, don’t make it at all.
Why Does This Matter?
Here’s the good news: companies that build the capacity for strategic innovation don’t just survive, they thrive. They adapt to threats that could knock others out of the game. But let’s be real, this isn’t easy.
It takes practice. It takes rethinking processes, workflows, and even the core of the business. It means letting go of “this is how we’ve always done it” and being willing to try something new, even if it feels uncomfortable.
It means creating a culture of experimentation and personal ownership (new mindset), learning to do things differently (new processes) and collaboration from vertical level to horizontal (new ways of working).
Don’t let yourselves be fooled by the workload you put into efficiency. Efficiency only optimizes what you have today, but doesn’t drive growth for tomorrow.
I’m not saying efficiency isn’t important. It absolutely is, it keeps the lights on and the wheels turning. But efficiency alone won’t prepare you for what’s next. To navigate uncertainty and stay ahead, you need to think bigger. Strategic innovation is about more than playing the current game better. It’s about changing the game entirely, and writing the rules yourself.
Growing new ideas and learning how to choose for the future in conditions of uncertainty takes practice, because this requires a new mindset, new processes and new ways of working.
Why companies should invest in growing new ideas more than making their current business more efficient:
Innovation drives growth. Efficiency maintains it.
New ideas open new markets. Efficiency only optimizes existing ones.
Investing in innovation attracts top talent. Efficiency alone does not inspire.
Innovation differentiates you from competitors. Efficiency just keeps you in the game.
New ideas can lead to breakthrough products. Efficiency tweaks what’s already there.
Innovation creates a culture of creativity. Efficiency fosters routine.
Investing in new ideas can future-proof your business. Efficiency focuses on the present.
Innovation can lead to higher profit margins. Efficiency often results in diminishing returns.
New ideas can transform industries. Efficiency fine-tunes them.
Innovation can create entirely new revenue streams. Efficiency maximizes existing ones.
Investing in innovation shows vision. Efficiency shows management.