Class 17: Sustaining Growth and Innovation - Keeping the Fire Alive

Welcome back to Thinkk's course on enjoying your company. You've built a thriving business, but now comes one of the greatest challenges: keeping that momentum going. Let's dive into the art of sustaining growth and fostering innovation – because in business, if you're not moving forward, you're falling behind.

The Innovation Paradox

Here's a truth that might sting a little: the very things that made your company successful can become your biggest hurdles to future growth. It's what I call the "Innovation Paradox." You've found a formula that works, and it's tempting to stick with it. But in today's fast-paced business world, that's a recipe for obsolescence.

At Thinkk, we've seen countless companies fall into this trap. They become victims of their own success, resting on their laurels while hungry competitors nip at their heels. So, how do we avoid this fate? Let's dive in.

Continuous Improvement: The Art of Never Being Satisfied

First things first: adopt a mindset of continuous improvement. This isn't about being negative or constantly finding fault. It's about always asking, "How can we do this better?"

Here's a strategy I love: The "Five Whys" Technique. When you encounter a problem or a process that's not as efficient as it could be, ask "Why?" five times. Each answer forms the basis of the next question. It's like peeling an onion – you get to the root cause of issues and identify opportunities for innovation.

For example, let's say customer complaints are increasing:

1. Why are customer complaints increasing? Because orders are being delivered late.

2. Why are orders being delivered late? Because we're running out of stock.

3. Why are we running out of stock? Because we're not ordering supplies in time.

4. Why aren't we ordering supplies in time? Because our inventory system isn't accurate.

5. Why isn't our inventory system accurate? Because we're still using an outdated manual process.

Now we've identified a real issue to tackle – updating our inventory management system. This simple technique can uncover profound insights and drive meaningful improvements.

Staying Ahead of Industry Trends: The Crystal Ball Strategy

Staying ahead of trends isn't about having a crystal ball. It's about creating one. At Thinkk, we use what I call the "Crystal Ball Strategy." Here's how it works:

1. Trend Triangulation: Instead of just looking at your industry, look at three: your industry, an adjacent industry, and a completely unrelated industry. Innovations often come from unexpected places.

2. Customer Future-Casting: Don't just ask customers what they want now. Ask them to imagine their lives five years from now. What problems will they have? What solutions will they need?

3. The "What If" Game: Regularly gather your team and play the "What If" game. What if our biggest competitor went out of business? What if our main product became obsolete overnight? What if we had unlimited resources? These thought experiments can lead to breakthrough ideas.

4. Reverse Mentoring: Pair senior executives with junior employees. The young often have their finger on the pulse of emerging trends. This also helps break down hierarchical barriers and fosters a culture of open communication.

Fostering a Culture of Innovation: The Greenhouse Effect

Creating a culture of innovation is like tending a greenhouse. You need to create the right environment for ideas to germinate and grow. Here's how we do it at Thinkk:

1. The "No Idea is Too Crazy" Rule: We have a policy that no idea, no matter how outlandish, can be dismissed without discussion. This encourages people to think big and outside the box.

2. The 20% Time Policy: Inspired by Google, we allow employees to spend 20% of their time on projects of their choosing. Across our portfolio companies, this has led to some of our most innovative product and service offerings.

3. The Failure Celebration: Once a month, we have a "Failure Celebration" where team members share their biggest failures and what they learned. This destigmatizes failure and encourages risk-taking.

4. The Innovation Lottery: Every quarter, we hold an "Innovation Lottery." Employees submit ideas, and one is randomly selected to be fully funded and developed. This gives everyone a chance to see their ideas come to life.

5. The Cross-Pollination Program: We regularly rotate employees between departments for short stints. This cross-pollination of ideas and perspectives often leads to innovative solutions.

The Power of Constraints: Innovation's Best Friend

Here's a counterintuitive truth: constraints breed creativity. When resources are unlimited, innovation often stagnates. But when you're forced to think within limitations, that's when true creativity emerges.

At Thinkk, we sometimes artificially impose constraints on projects to spur innovation. We might say, "Develop this new product as if we only had half the budget," or "Redesign this process as if we had to do it in half the time." The results are often surprising and lead to more efficient, innovative solutions.

The Final Word

Sustaining growth and fostering innovation isn't about grand gestures or breakthrough moments. It's about creating an environment where improvement and creativity are part of the daily fabric of your company.

Remember, at Thinkk, we believe that innovation isn't a department or a special project – it's a mindset. It's about constantly questioning, exploring, and pushing boundaries. It's about being willing to take risks, embrace failure, and learn from every experience.

In our next class, we'll be diving into exit strategies and preparing your company for the next phase. Until then, take a hard look at your company culture. Are you fostering an environment where innovation can thrive? Are you challenging yourself and your team to constantly improve and adapt? Your answers could be the key to ensuring your company doesn't just survive, but thrives in the years to come.

Now go forth and innovate. The future of your company depends on it.