When times get bad the conventional wisdom is to hunker down and wait things out. Reduce the risk and cost today and get back out there fishing after the tide turns. This kind of thinking is natural and has some merit. Why risk precious limited capital on something new?
The most innovative companies, though, realize these tough times actually offer the best opportunities to create new products, tap into new markets and find new ways to reduce costs. Tough times don’t prohibit innovation; they demand it.
Innovating now offers some clear benefits:
•The new products and services take a bit of time to develop. Do it now and you’ll be poised to capitalize when the market rebounds. Get in front of that wave so you can surf it to the shore, step off the board and get a pina colada from the beach bar
•You’ll develop a competitive advantage. While other companies are hunkering down you can improve your cost position or develop killer new products. These advantages will be real and sustainable
•You can energize your workforce by focusing on the future and exploring new ideas rather than experience the doom loop spiral of fear/retrenchment/lower productivity/slipping revenues/fear/retrenchment, etc.
Innovation doesn’t have to be huge or risky. You can make more runs by hitting a bunch of singles rather than have everyone swing for the fences and miss. Lower your innovation costs by making lots of small investments in projects, finding out what’s working and putting more resources behind the winners.
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