The Value Flywheel Effect

Chapter 18

Sustainability and Space for Innovation

Mariana Mazzucato puts forward an interesting question in the book Mission Economy: Is capitalism in crisis? Mazzucato presents an argument that short-term thinking by businesses—e.g., running from quarter to quarter—results in a lack of leadership and strategic thinking.1 This type of short-term thinking means we’re only tinkering around the edges of our potential instead of creating sustainable, long-term value.

Businesses need a robust mission or north star to make any real change and to innovate. To truly innovate, the mission must be more than just “hitting our goals this quarter” or “increasing our stock price by one point.” Consider: Are we at an inflection point? Will more employees demand ...