Our innovation era: creative destruction or destructive creation- which?

I keep coming back to the dilemma often faced in innovation- do we practice “creative destruction” or “destructive creation?

We are entering some perilous times in climate change and what this will mean in destruction in what we know, what we value and what we are used to.

I can’t imagine when Joseph Schumpeter outlined his groundbreaking efforts for explaining “creative destruction” he or anyone else could imagine this being flipped around to what we are facing more of today, that of “destructive creation”. We live in a throwaway society, and simply this is not sustainable.

Schumpeter saw “creative destruction” as the renewing, through innovation, society’s dynamics that would lead to higher economic development and welfare levels. At the same time, recognizing that this destroyed a few of the incumbents to benefit many more newcomers and increase value creation for broader society.

Today we are in a destructive creations world.

Sustainability is central to innovation’s future progress

Sustainability is central to innovation’s future progress

Building a sustainable competitive advantage

Today’s challenge for me is not only to be building the innovation capacity but also to be establishing clear ways on how we should set about sustaining it. Increasingly, organizations must have the capability and capacity to sustain innovation to provide the stimulus for lasting growth and resolve the complex challenges we face today and in the future.

To get there, though, it does seem this must be through continued learning. Hence, your capabilities become stronger, evolving and more unique, thus making them more difficult for competitors to understand and imitate.

Let me outline an innovation framework that builds capability through a sustained approach.

When you set out to build capability to be sustaining, you need to consider there are two types of capabilities, distinctive, which are the characteristics of the organization which others cannot replicate and reproductive, which can be bought in by the competition but always need to need to be appropriate to any objectives you are trying to achieve.

Learning to collaborate in a rapidly changing world

visual from www.amle.org collaboration-the-missing-standard/

We clearly need to find ways to navigate ourselves back into some (new) order, to stabilize the chaos we are in, or beginning to feel we are finally moving out of the crisis and chaos of the last 18 months..
What we first need to do is make sense of what is going on around us.
Then, we need to determine what actions to take and the level of action, resource and support each part needs.
For this we need help, we need collaborators wanting to not just navigate back but more to navigate forward.
We are in a period of (great) change. How are we thinking about adjusting, not just to the immediate challenges but the greater ones that are certainly heading our way?
Within business, the present crisis offers a chance to make significant changes to how we operate in the future. However, I am not sure many of you feel the same; it seems disruption is in everything we need to undertake in what is coming towards us in change.

Thinking sustainability needs a mix of future scenarios.

The accelerating need to build a sustainability pathway

Sustainability is rising to be top or close to the top of a boards agenda. The growing concerns of several intertwined issues need addressing as they will initiate a significant change to the Business and how it operates and presents itself to the world.
Boards are asking where our business fits within and alongside society, both in who we serve and society in general, coupled with realising that the planet is heading towards a critical crisis and what we can do to reduce these pressures?
Not just sustainability forces a sharper need for strategic choices but the ability to undertake the product reinvention. A reinvention that concerns itself with reducing waste, minimizing carbon emissions, valuing the full life cycle and the ability to show the increasingly important end-of-life part of the lifecycle model. To extract precious, rare earth minerals and recycle parts reduces the demand for future mining or heat intensive materials.
Any products need to have a clear understanding of all their stages for the clarity of sustainability.

Accelerating Clean Energy Innovation


“Without a major acceleration in clean energy innovation, reaching net-zero emissions by 2050 will not be possible.”
A groundbreaking report, “Net-Zero by 2050: a roadmap for the global energy system“(referred to as NZE here) by the Internation Energy Agency (IEA), has been emphasising that this decade is pivotal to reaching net-zero by mid-century.
This 2050 target is in line with the 2015 Paris Agreement, the foundations of global consensus to limit the rise in global temperature to 1.5c. This requires nothing short of a total transformation of the energy systems.
The report is the world’s first comprehensive study of how to transition to a net-zero energy system by 2050 while ensuring stable and affordable energy supplies, providing universal energy access, and enabling robust economic growth.
The report sets out a cost-effective and economically productive pathway, resulting in a clean, dynamic and resilient energy economy dominated by renewables like solar and wind instead of fossil fuels. The report also examines key uncertainties, such as the roles of bioenergy, carbon capture and behavioural changes in reaching net zero.
The role of innovation has a crucial one to play.
In the near term, the report describes a net-zero pathway that requires the immediate and massive deployment of all available clean and efficient energy technologies, combined with a major global push to accelerate innovation.

One great visual paints a thousand innovating words

One great visual paints a thousand words
This visual I came across some years back, and for me, is outstanding in providing the feedback loops that go into developing the right innovation vision. To get to a definitive endpoint of having an innovation vision, you are faced with some complex challenges. These are well shown here.
Each influences the other and constantly loop back, making an improving vision success hopefully.

The critical feedback needs for constructing an innovation vision

The different challenges seen in this terrific depiction provide the sort of dialogue and efforts that needs to go into ‘crafting’ the innovation vision. It is hard, thoughtful work. Let’s look at each of these a little more.
The Time Challenge

Human-centred innovation in a digital world.

Today we are facing many current disruptions where we need to react fast and intelligently. There are many situations we are facing that are a race against time. As we continue to respond to Covid-19, technology has the power to reduce the complexity often faced, speed up and contribute to solutions that help resolve pressing issues.

We recognize that equally as important as the technology are the people using the technology. Having people at the centre of designs enables more intelligent, rapid and lasting innovation.  The Digital Twin is where data from the physical and virtual world come together and is increasingly where people and technology come together to resolve many of today’s challenges.

Applying human-centred innovation

The Critically Important Innovation Narrative

Whatever we do, we do far better when we become emotionally connected. Often understanding a good story builds this emotional connection or simply puts you off. Stories can inspire and spark even greater ideas. The art of storytelling and making connections with the listener or reader has incredible value. Yet, a story has limited value. For me, it is the more powerful narrative that drives innovation, inspiring and gaining identification in multiple ways.

A story is linked to a series of events that take a character from one state to another. In contrast, a narrative is a system of stories that links values and events to establish a broader and often new cultural meaning.

Let’s draw down on so much of John Hagel’s work on narratives. It has shaped my thinking.

Going beyond the known of today

Going beyond the known of today

There are so many places where innovation is essential within the Energy Transition due to the magnitude, size, and complexity of the change needed to achieve a decarbonized world. There is a world of innovative possibilities.

One of the most important catalysts for changing the energy system into a sustainable green one is by taking our thinking beyond the known into the possibilities we need for a sustainable future of energy based on the ability for renewables to generate all our electrification needs.

We need to build out all our renewable possibilities that include solar, wind, hydro, green hydrogen and nuclear energy.

In this combination of pursuit, nurturing, and expanding our thinking through the thoughtful construction of a vision built on knowledge, exploration and understanding, we can mobilize the changes needed.

My energy journey is being navigated across the three-time horizons.

Leadership Alignment Work Mat for making Innovation fully connected.

I believe the value of working the seven domains of this framework, named the Leadership Alignment Workmat has significant value within and across any organization. It brings innovation together, a unifying point for the activity and momentum of innovation to become central to the core of the business in its future investment and value impact.

The Leadership Alignment Workmat provides a unique examination of the executive’s role in innovation; it offers a framework that the organisation’s leadership can adopt to ensure linkages and synergies between strategy and innovation, innovation and capabilities, innovation and culture.

They often lack the communicating medium to help clarify and shape the innovation story to provide the guidance necessary for achieving that essential engagement and encouragement they would like to align organizational efforts required from innovation to the strategies envisioned.

Benefits of applying the Leadership Alignment Work Mat

From an investment in an executive work mat exercise, you receive four significant benefits.