PUBLICLY TRADED COMPANIES CAN'T INNOVATE

Here's the beginning of my theory about innovation: publicly traded companies cannot successfully innovate because of quarter by quarter pressure from wall street investors to be consistient and efficient. This is based on the premise that innovation requires a company culture that allows for both failures and successes.

Acceptance of failures is important implies that the company is comfortable trying new things. It also means that individuals within the organization will not be punished for suggesting or championing different ideas. Too often I meet with middle-managers who do not to make decisions, or support any idea, unless it comes with deep political backing from their senior managers.

Comfort with success means they can identify and execute on good ideas (no matter from what level within the organization they come from). Many of the companies I work with have an old-school corporate culture that kills off new ideas, product improvements, and competitive advantages early in their gestation unless the idea comes from the top-down. Check out this summary of excuses I regularly hear to justify dismissing new ideas.