The Most Commonly Cited Barriers to Innovation in Large Companies? Internal Politics

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A survey of 270 corporate leaders shows what stunts innovative initiatives.

It turns out that the word “innovation” is not a Harry Potter-esque magical incantation that, once spoken, renders companies more inventive, creative, and entrepreneurial. The word can be uttered by a CEO speaking to employees or Wall Street analysts. It can be emblazoned on the door to a new innovation center in Silicon Valley. It can be inserted into people’s job titles.

, from 270 corporate leaders in strategy, innovation, and research and development roles, were illuminating.We invited survey respondents to cite as many factors as they wanted from a list. The top five obstacles were each cited by at least one-third of respondents. They were:Some business units or functions believe they’re already doing innovation on their own, and that any sort of new initiative is edging into their terrain — and potentially competing for resources.

And big companies, like elephants, have long memories. Many long-timers can remember — and will happily detail in meetings — all of the “historical attempts [at innovation] that didn’t pan out – and it may just not have been the right time,” says Stacey Butler, director of innovation at NRG Energy. “With a budget of less than $1 million, it seems like the job is to build a case for innovation investment, versus [doing the work of] innovation itself,” says Rick Waldron, a former Nike executive who ran the apparel company’s innovation accelerator until last year.

 

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