Rajesh Chandy, Professor of Marketing at the London School of Economics, discusses his research on what makes a company innovative. Here are the traits shared by most innovative companies:
"The Son of Man"
(one of my favorite innovative painters)
- Management is more future focused. This is the most important factor in driving innovation. Chandy and colleagues measured this by simply asking managers questions such as what percent of the time they tend to focus on the future vs. current customers and competitors. In other research, Chandy and colleagues used a different metric: proportion of future-oriented words such as "will", "shall", "may", etc in annual reports, board meeting notes, and related materials. These metrics agree with each other. Being focused on the future may sound simple, but it is not easy. CEOs on average spend only 5% of the time focused on the future needs of the company, with the rest of the time spent on putting out current fires, ribbon cutting, etc.