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Writer's pictureYetvart Artinyan

Innovation theater is dead: How leadership destroys explorative culture and fuels entrepreneurial brain drain


Wichtigkeit des Innovationsmanagement

In modern executive boards and management, exploratory innovation and ambidexterity are often regarded as essential for a company's long-term success. But what happens when leadership, in response to poor financial results, decides to focus solely on innovation projects that seem to promise short-term returns, sacrificing all exploratory approaches? The answer is alarming: not only does a company's innovative power die, but it also loses the people who embody an entrepreneurial culture of exploratory thinking—the entrepreneurs themselves.


The loss of an exploratory culture: A slow decline

Exploratory approaches and an entrepreneurial culture go hand in hand. They encourage thinking differently, taking well-framed risks, and being willing to pursue unconventional paths. However, when the diversity of these approaches is stifled, the company not only loses its ability to innovate but also the intrapreneurs who sustain this culture.


Employees who are marked by curiosity, creativity, and entrepreneurial thinking are the backbone of any vibrant innovation culture. They are the ones constantly challenging the company to redefine the boundaries of what is possible. But when these exploratory individuals and the spaces they need vanish, only the "old" business models with their expiration dates remain. Entrepreneurship is no longer valued, and the energy to create something new evaporates. Consequently, many of these talents leave the company to find environments that recognize and nurture their strengths.


Every company began with a visionary founder who transformed their idea into what it is today. If this culture is not maintained, the company turns into a mere administrative apparatus with an expiration date.

The consequences for the company: A dangerous brain drain

The loss of these employees has severe consequences. Without these entrepreneurial minds, who have the courage to challenge established thinking and explore new paths, the company not only loses its innovative power but also its ability to adapt to changing market conditions. The organization falls back into a familiar execution mode, where the focus is solely on optimizing existing products and processes instead of developing new solutions for current or even new markets.


This brain drain is especially dangerous because, in the long term, it erodes the foundation of the company’s culture. A company that loses its innovative strength also loses its appeal to talented employees. It becomes increasingly difficult to attract new, ambitious talents who are ready to bring in innovative ideas. This creates a vicious cycle that seriously threatens the company's future viability.


The solution: Preserve diversity and a spirit of experimentation

To counteract this downward trend, companies must recognize and nurture the importance of an exploratory culture and the value of entrepreneurial employees—regardless of whether economic conditions are favorable or challenging. Innovation should not be reduced to a single, seemingly promising project with a high probability of return on investment. A good innovation strategy is characterized by a broad risk distribution, where many small bets and projects are part of the company’s DNA. Instead, companies should create an environment where different approaches and ideas can coexist and be quickly and affordably tested.


The goal is to foster a culture where experiments are understood as part of the learning process to shape the future, and where creative, exploratory thinking is encouraged. Employees must be encouraged to contribute their ideas and take risks without fear of negative consequences or even job loss. Only then can a company preserve its ability to innovate and ensure that the talents who shape this culture remain within the company.


Conclusion: No innovation theater – Long live innovation!

Reducing innovation to a top-down waterfall approach is a dangerous step that not only threatens a company’s innovative strength but also drives away the people who embody an entrepreneurial culture of exploratory thinking. Companies must preserve this exploratory culture to remain successful in the long term. Innovation thrives on diversity, courage, and the willingness to take risks—qualities that must be protected and nurtured.


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Yetvart Artinyan

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