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Corporate Sophistication Stunts Innovation

  • Writer: Deborah (Ellen) Wildish
    Deborah (Ellen) Wildish
  • May 31, 2022
  • 3 min read

Updated: Apr 6


Corporate Sophistication Stunts Innovation

Corporate sophistication encompasses structure, systems, processes, methodology, data analytics, key performance indicators and technology. While business sophistication serves a useful purpose, it is diametrically opposed to the early phases of major innovation. Both the problem and solution lie with corporate culture. The goal is a healthy balance between sophistication and latitude for innovation.


Rigorous, continuous quality (process) improvement that utilizes formal quality improvement methodology is steeped in sophisticated metrics, emphasizing data to standardize processes, maximize utilization of resources and eliminate waste. A corporate case study reported a stark decline in major innovation at 3M when the CEO W. James McNerney Jr. aggressively focused on becoming a Lean Corporation, operating at peak efficiency. When George W. Buckley, the subsequent CEO took the helm, he recognized that fixation on continuous quality (process) improvement will never lead to major innovation. Eradicating variability extinguishes the opportunity for experimentation – the life force for major innovation. He corrected 3M’s unbalanced emphasis on formal quality improvement methodology and invested in opportunities for disorder, creativity and experimentation (research and development).


A critical research finding is that when Corporations are focused on data and apply convergent thinking, it only results in minor innovation and renders the same or a very similar service, product or solution. Studies have shown that major innovation requires space for departure from corporate sophistication. This entails abandoning reliance on data because it limits possibilities to past trends, the current situation and anticipated future results based upon predictive modeling. Data cannot predict what might happen in the future when a paradigm shift and transformational change occurs, characteristics associated with successful major innovation.


Ideas and creative thinking are described as cyclical and messy, it draws upon intuition, insight and fuzzy thinking that may even defy logic. It imagines possibilities that do not currently exist and may start from scratch with a blank page. Studies of paradigm breaking innovations describe leaders who exercise discernment and skepticism with respect to data. In fact, data may be completely ignored to maximize divergent thinking, forge new paths, explore extraordinary ideas and transform products or services.


Early phases of major innovation necessitate patience to wait and see the patterns emerge. It entails experimentation that employs small-scale tests of change and the goal is learning to increase variance. This is contradictory to continuous quality and process improvement’s focus on performance to reduce variance. Studies indicate that competencies and success with continuous quality (process) improvement can result in corporate rigidity and obstruct major innovation.


Cinder to Flame helps Corporations solve complex challenges with strategic services that energize people, fuel a healthy corporate culture and ignite major innovation.


A healthy corporate culture has multiple facets, such as willingness to invite and entertain variance, and develop a high tolerance for creative tension (deviation from data findings). Sophisticated, data-driven Corporations are presented with an opportunity to strengthen their corporate culture and align for major innovation.


Three questions for your Corporation:

  1. To what extent is creative tension tolerated?

  2. How often are you granted autonomy to experiment?

  3. Are you encouraged to increase variance as a learning pathway?


Ironically, aligning for major innovation involves sophistication and the inherent complexity is centred on people and corporate culture. Cinder to Flame offers a specialized operational review to identify the current state of corporate health and capacity for major innovation. The results are captured in a culture metrics report describing individuals, teams and leadership within the context of their work environment.


Explore Cinder to Flame's services, that are flexible and customized for your Corporation: https://www.cindertoflame.ca/services


© Deborah (Ellen) Wildish, Cinder to Flame 2022-Present. All Rights Reserved.

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