In the recent blog post for the Harvard Business Review, Tim Kastelle wrote about how companies often incorrectly react to business challenges. In his post, “Is Your Innovation Problem Really a Strategy Problem?” Kastelle argues that the problem companies are trying to solve isn’t always the real problem.
Is a lack of innovation your real problem?
When faced with increasing competition or declining sales, businesses frequently assume that innovation is the solution. So they put more energy and resources towards coming up with lots of new ideas.
Yet, according to Kastelle, most large firms are actually strong at generating ideas. Where companies fall down is in selecting the best ideas and implementing them.
So a company’s declining fortunes may, in fact, point to a larger issue. He suggests that the real problem isn’t too little innovation, but rather, a bad business strategy.
Devising a better business strategy.
To find the best business strategy for a company, Kastelle lays out three key points to consider:
- Avoid top-down strategy making. Don’t let one group create the strategy and expect another group to implement it — expand the number of people creating the strategy to avoid execution problems.
- Involve more people in strategy development.