How does a CEO enable innovation? More specifically, how do you create the conditions for innovation in a mid-sized business?
We tackled this topic in our recent CEO masterclass: growth and innovation in practice. In addition to our own IT leaders, we were delighted to have the expert investor, Aaron Baker from BGF, on the panel.
BGF provides growth funding for ambitious businesses across the UK and Ireland, so Aaron has wide experience in the connection between innovation and growth. He’s learned to sort innovation into what he refers to as ‘three buckets’:
- Information: It is critical to have the right information to make informed decisions. That might be internal information like profitability or cycle times, but leaders also need to personally stay in touch with our customers and our market and to understand a changing world.
- Decision-making: Aaron counsels an approach based on moderation. A business needs checks and balances, and decision-making should be ‘quick but not reckless.’ For example, innovation spending can be split into tranches, each matched to specific outcomes. When broken down like this, stakeholders can make decisions quickly but not recklessly.
- Culture: As is often the case in our panel discussions, the conversation returns to culture. A CEO needs to foster a culture of curiosity, collaboration, and experimentation. Which means that if CEOs really want innovation, they need to be willing to listen to ideas, and to forgive failure.
As ever, we invite you to contact us for a no-pressure conversation about fostering innovation and growth in your own business. Even in the quietest days of August, we’re always up for a chat.