Balancing Innovation and Execution

Source: Missy Schmidt, Creative Commons

At some point, every leader seems to grapple with the balance between innovation and execution. Many leaders struggle with the notion that one great idea will save the day for the organization. Others spend an inordinate amount of time focusing on “getting out the laundry” and not on new ideas.

Innovation for innovations’ sake can be detrimental. Innovation is best when it helps get things done. A clear vision and strategy are not enough. Competitors have this as well. Success comes from effectively executing strategies and objectives as well as anticipating and preparing for future contingencies. Successful organizations accomplish their objectives faster than their competitors.

Innovation results from creative ideas successfully implemented. Execution and strategy result in competitive advantage.

It seems that everyone wants to innovate, but in practical, day-to-day leadership, only what is accomplished matters. A significant part of getting things done is focus.

My partner and I used to work with the leadership of an international organization. The founder was a man of tremendous vision and creativity. It seemed he had new, out-of-the-box ideas every day. Fortunately for him and the organization, his senior leadership team consisted of people who understood focus and execution. They had the ability to take his ideas and, in most cases, make them work.

One idea, however, was a complete flop. The organization lost millions of dollars. Why? Because the idea was well out of the organization’s scope. It lacked focus, was not part of the organization’s passion, and failed to be executed. The formula for this organization’s success required team focus and execution, not just the leader’s innovative ideas.

Ram Charan, in his Fortune magazine cover story “Why CEOs Fail,” points out the primary reason CEOs do not make the grade: “It’s bad execution…not getting things done, being indecisive, not delivering on commitments.” They have plenty of good ideas and strategies, but in many cases they lack the ability to execute them.

Charan has also written,

People think of execution as the tactical side of business, something leaders delegate while they focus on the perceived “bigger” issues. This idea is completely wrong. Execution is not just tactics—it is a discipline and a system. It has to be built into a company’s strategy, its goals, and its culture. And the leader of the organization must be deeply engaged in it.

Innovation is a strong gift. It helps companies find new markets, new products, and new customers. Innovation alone, however, does not matter. Innovation requires focus, and part of that focus is execution or achievement.