Resisting Change and Discouraging Innovation: #6 of the Six Mistakes Smart Leaders Make

By Mike DuBose and Blake DuBose

Change is a natural part of life—and of business. All over the world, brilliant minds are at work cooking up new concepts, and technology is rapidly advancing. Sometimes, once-successful ideas, products, and trends naturally become obsolete over time as new offerings enter the marketplace. Companies who aren’t ready to promptly pivot and reinvent themselves will end up in the graveyard like others who have failed!

It’s an extremely important component of a leader’s job to guide their organizations safely through today’s constantly changing landscape toward the future. As we were told by Jack Welch, former CEO of General Electric and co-author of the bestselling book Winning, “Leaders need to be flexible to turn on a dime when opportunities present themselves.” Leaders should regularly study their competitors and business sector, staying vigilant for any danger signs or changes that can spell trouble for their company. They must also keep track of their organizations’ strengths and weaknesses and how they play into the “big picture” (set out in their comprehensive strategic plan, as mentioned earlier).

A company may be able to “tread water” for a time doing the things that it’s always done, in the way it’s always done them, but eventually the waters of change will rise over its head. In an interconnected world that is constantly evolving, this sort of complacency can be deadly to businesses—and leaders’ careers. As Glen Llopis noted in a 2015 Forbes article, “companies that fail to grow and compete are led by operations-driven leaders that rarely change and believe that they are not vulnerable to new marketplace conditions. They lack the vision to see beyond the obvious and easily grow complacent.” Leaders that focus solely on continuing the status quo, rather than seeking out new avenues for growth, will eventually find themselves—and their companies—left behind.

Leaders must be looking out years into the future—not just at the day-to-day operations—to ensure the security of their organizations as they move forward. One of the most valuable tools in the leader’s toolbox is a solid strategic plan. When the plan, which contains both short-term objectives and long-term goals, has been developed with the input of staff and shared with everyone, the entire organization should know the steps it must take to succeed. As old products and services become outdated and new ones are developed, they must be held up to the strategic plan to ensure that they work with the principles laid out therein. Then, the entire organization must move together as one unit to incorporate the new offerings while staying true to its purpose and values.

Another way to promote future success is to foster a culture of innovation, where new ideas are rewarded and employees (and customers) are given avenues to share their thoughts and ideas. Companies that actively promote this type of environment tend to be on the “cutting edge” of their industries! A great example is 3M, a company that has been awarded the National Medal of Technology, America’s highest award recognizing innovation. According to Harvard Business Review, “One of 3M’s strengths is how it treats promising employees: give them opportunities, support them, and watch them learn and thrive.” 3M practices what is called the “15% Rule,” where employees “can spend up to 15% of their time pursuing projects of their own choice, free to look for unexpected, unscripted opportunities, for breakthrough innovations that have the potential to expand the pie.” The Post-It note, one of the brand’s iconic products, was invented during an employee’s “15%” time! By encouraging innovation so heartily, 3M’s leaders have ensured that the company has many new avenues in which it can grow and thrive, regardless of the changes that come to its industry.

It’s not enough just to discover the need for change, however. There must be a culture of execution in place that allows the business to quickly and thoroughly adapt. In Execution, Larry Bossidy and Ram Charan explain that, “unless you translate big thoughts into concrete steps for action, they’re pointless. Without execution, the breakthrough thinking breaks down, learning adds no value, people don’t meet their stretch goals, and the revolution stops dead in its tracks. What you get is change for the worse, because failure drains the energy from your organization. Repeated failure destroys it.” Great leaders not only recognize when their organization needs to pivot, but also have the ability to motivate and guide their staff to execute those changes!

Unfortunately, no matter how intelligent some leaders may be, when it becomes apparent that changes are needed, they may refuse to accept the new reality. Often, they’re holding on to pet projects or outdated ideas that were brilliant in the beginning, but have since lost their ingenuity. They may be afraid of what the future may hold and irrationally trying to bury their heads in the sand. Or they may have failed to foster a company culture of innovation by encouraging reasonable risks and experimentation. As Sydney Finkelstein wrote in Why Smart Executives Fail, “Innovation is not a ‘thing’ that just happens. It’s a natural outgrowth of a culture of open-mindedness, and a CEO who is not a central player in that game will find the innovation challenge much more difficult.” Whatever the case, leaders who are unable or unwilling to provide the outstanding products and services customers want will soon find “Closed for Business” signs on their front doors! 

The bottom line: Today more than ever, the world is changing at a rapid pace. It’s easy for unprepared companies—and their leaders—to get left behind! Don’t make the mistake of avoiding change to your organization: embrace it, and move confidently toward the future!

For an extended document containing all six parts of this series on the mistakes that even smart leaders make, please visit www.mikedubose.com/leadershipfailures.

About the Authors: Our corporate and personal purpose is to “create opportunities to improve lives” by sharing our knowledge, research, experiences, successes, and mistakes. You can e-mail us at [email protected].

Mike DuBose received his graduate degree from the University of South Carolina and is the author of The Art of Building a Great Business. He has been in business since 1981 and is the owner of Research Associates, The Evaluation Group, Columbia Conference Center, and DuBose Fitness Center. Visit his nonprofit website www.mikedubose.com for a free copy of his book and additional business, travel, and personal articles, as well as health articles written with Dr. Surb Guram, MD.

Blake DuBose graduated from Newberry College’s Schools of Business and Psychology and is president of DuBose Web Group (www.duboseweb.com).

Katie Beck serves as Director of Communications for the DuBose family of companies. She graduated from the USC School of Journalism and Honors College.

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