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Does Innovation Remain at Risk

Each year I look forward to getting the results of the Edelman Trust Barometer.  The 2025 results should be published soon. Looking back to the 2024 Edelman Trust Barometer it revealed a paradox at the heart of society: while rapid innovation promises a new era of prosperity, it also poses significant risks. This duality is reshaping public perception and trust in technology and institutions.

Innovation has always been a double-edged sword. On one hand, it drives economic growth, improves quality of life, and solves complex problems. On the other hand, it can lead to job displacement, privacy concerns, and ethical dilemmas. The 2024 Edelman Trust Barometer highlighted that while people appreciate the benefits of innovation, they are increasingly wary of its potential downsides.

One of the key findings was the growing concern over data privacy. As technology advances, the amount of personal data collected and analyzed skyrocketed. This led to fears about data breaches, surveillance, and misuse of information.

Another significant issue was the impact of automation and artificial intelligence on employment. While these technologies increase efficiency and productivity, they also threaten to displace millions of jobs. The barometer indicated that people were anxious about their future job security and called for policies ensuring a fair transition for workers.

Moreover, the ethical implications of innovation are under scrutiny. From genetic engineering to AI decision-making, the potential for misuse and unintended consequences is a major concern. The public is urging for robust ethical guidelines and regulations to govern the development and deployment of new technologies.

The 2024 Edelman Trust Barometer underscored the need for a balanced approach to innovation. While embracing technological advancements, it indicated the criticality in addressing the associated risks and building trust through transparency, accountability, and ethical practices.

I’m interested to know how leaders in business and government have done since this barometer was released last year. Has trust in innovation made a comeback? What are you as a leader doing to advance innovation in an ethical manner?

  1. Are you managing innovation implementation effectively?
    1. Mismanaged innovations are as likely to ignite backlash as advancing progress. Explain the science and manage impacts aggressively
  2. Have you actively partnered with stakeholders?
    1. Business is most trusted to introduce innovation. Take the effort to partner with employees and government to manage the impact of innovation ethically.
  3. Are you engaging in active discussions with stakeholders about innovation implementation?
    1. When people are engaged in having control of how innovations affect their lives, they are more likely to embrace and advocate for the innovation, not resist them. Listen to concerns, openly

January 14, 2025 Posted by | Uncategorized | , , , , | Leave a comment

Paranoia: The Foundation of Business Agility

North American Aircraft (NAA)produced around 42,000 aircraft during World War II that included the iconic P-51 Mustang and B-25 Mitchell bomber. employing over 90,000. At the conclusion of the war effort then company president James “Dutch” Kindelberger had a business problem.  What do we do now? The P-51 and B-25 lines were shut down. He put his executives to work to build a new, innovative business.  The results were astonishing with NAA developing the F-86 Sabre, the first military jet as well as other jet aircraft based off the Sabre technology.

I tell this story only to illustrate how quickly a business model can experience dramatic change overnight. I had the honor to work at NAA for several years following the end of the Cold War when a similar dramatic transition occurred. We would often raise Dutch as the model for embarking on a new, innovative era following the B-1 Lancer and Space Shuttle contracts expiration.

Are you prepared to adapt at a moment’s notice?  Do you have agility built into your business model and organization?  Can you adapt or will you die?

Business agility is crucial for organizations to respond to market changes and emerging opportunities quickly and effectively. Dutch Kindelberger was a leader that made change happen at NAA through his hands-on style and a strong focus on innovation and efficiency.

Here are the key components that make up business agility:

  1. Leadership: Agile leadership focuses on communication, collaboration, and commitment. Leaders develop others as leaders and work towards a shared purpose1.
  2. Governance: Effective governance ensures that decision-making processes are flexible and responsive to change. It involves setting clear guidelines and frameworks that allow for quick adaptation1.
  3. People: The workforce must be skilled, adaptable, and empowered to make decisions. Continuous learning and development are essential to maintain agility1.
  4. Culture: An agile culture promotes innovation, risk-taking, and a willingness to adapt. It encourages a mindset that embraces change and values continuous improvement1.
  5. Strategy: Agile strategies are dynamic and flexible, allowing organizations to pivot quickly in response to new opportunities or threats. This involves regular reassessment and adjustment of strategic goals1.

It’s easy to lay out the pieces required for business agility and the challenges to pull it off are numerous. Everything from our old friend resistance to change to the mechanics of having flexible processes.

In my experience, agile organizations are always in a state of change. Every planning cycle promotes investment in innovation. Andy Grove, the former president, and CEO of Intel, was famously known for the mantra, “only the paranoid survive.” Being paranoid isn’t a bad thing, it keeps us looking forward, not accepting the status quo as lasting forever.

A couple of tips to think about:

1. Always have an eye beyond the next 24 months. Look beyond the end of your desk calendar for possible disruptions and innovations.

2. Take succession planning seriously. Succession planning is not just for the most senior leaders in the business, it’s a process that should evaluate talent at all levels of the organization for either new opportunities or skill building.

3. Be honest and accountable. Be honest with yourself about the state of your business model and accountable for goal achievement. Don’t allow yourself to get comfortable or complacent.

4. Make changes in the business part of the business. Change is the only constant in life, make it part of doing business every day. Changes may be small but making it a norm in the culture will pay dividends.

Be paranoid…in a good way!  

July 10, 2024 Posted by | Uncategorized | , , , , | Leave a comment