Innovative Intelligence: The Art and Practice of Leading Sustainable Innovation in Your Organization

CHAPTER ONE

THE INNOVATION GAP

“The problem is much more complex and challenging than we thought,” the CEO declared to his executive team. “Initially, we thought our challenge was to sustain our leading position in the new competitive environment. We thought we were an innovative pharmaceutical company—but really we're only an innovative R&D company. And now our R&D pipeline has almost ground to a halt. Healthcare regulators are not approving our new products. Generic drug companies are contesting our patents through intense litigation. Doctors don't have the time to see us. We're facing unprecedented political pressure to reduce the costs of our drugs. It's obvious that we must become innovative throughout our company and not just in R&D. But how do we do that quickly?”

“We've trained our best leaders to focus on short-term problems and ‘making’ the numbers. We haven't trained them to think innovatively. Our few innovative leaders have left to join healthcare start-ups that appreciate their innovative thinking. So we don't have the skilled innovative leaders who can help lead us out of this mess.”

The CEO raised his voice and challenged his executive team, “I'm not the only leader here. Together, we must radically change our culture and champion innovative leadership throughout our business to compete in our industry. Are you with me?” The executives saw the panic in the CEO's eyes and nodded in agreement—but they didn't believe they would make any meaningful changes—not because ...