Let’s do a thought experiment. Imagine that you are the founder of a startup. You found product-market fit and started leading the market by being agile and innovative.
Out of nowhere, the processes that helped you grow are holding you back. Why?
These once-effective strategies have solidified into core rigidities – rigid ways of thinking and working that resist change. You’ve stuck to old assumptions about customer needs, clung to outdated product roadmaps, and used the same development methods.
How often do you say, “We’ve always done it this way”?
It’s easy to fall into routines, especially those that once brought success. But in the dynamic world of product development, it’s crucial to remember that yesterday’s best practices can quickly become today’s bottlenecks. We need to learn and adapt constantly.
Core rigidities can slow your response to new market trends and disrupt creativity and the flow of fresh ideas needed to stay competitive.
So, how do you ensure your company stays agile and open to innovation?
Exploring How Creativity Fosters Innovation
Organizational creativity is not just about generating new ideas but also about implementing these ideas to create value.
In her 2005 article “Organizational Creativity: Breaking Equilibrium and Order to Innovate,” Borghini explains that creativity involves “breaking equilibrium and order” to foster innovation. This process means challenging existing rules, processes, and mental models that can inhibit fresh thinking.
Borghini outlines that creativity within a business context happens at multiple levels: individual, group, and organizational.
- At the individual level, creativity involves leveraging personal knowledge, skills, and cognitive styles to generate new ideas.
- For groups, creativity is facilitated by interacting and integrating diverse perspectives, often requiring the alignment of different organizational sub-cultures.
- Organizational creativity goes beyond mere ideation. It requires a supportive environment where divergent thinking is encouraged and innovative solutions are created and implemented.
How Can We Challenge the Status Quo in an Organization?
Borghini highlights an important process called sensemaking. This process involves companies reinterpreting existing knowledge and adapting to new contexts. It consists of unlearning outdated and new practices, essential for adapting to market changes and technological advancements.
Innovation emerges from a dynamic process of continuously developing and refining ideas fueled by creativity.
But we are often stopped by core rigidities.
Understanding Core Rigidities
As Stefania Borghini explained, core rigidities refer to ingrained practices and routines within a company that once contributed to success but have now become obstacles to innovation.
These rigidities arise when a company’s strengths become so ingrained that they resist change. They can include outdated processes, inflexible mental models, and established rules that limit the ability to adapt to new market conditions or technologies.
Kodak is an interesting case study for core rigidities. It was once a dominant player in the photography industry, known for its film cameras and photo development services. However, despite inventing the first digital camera in 1975, the company was slow to embrace digital photography.
Kodak’s success was deeply tied to film sales, creating a reluctance to shift away from this profitable area. They had an inflexible business model.
They had an established mindset. The company focused heavily on protecting its existing business model and hesitated to disrupt its profitable film business.
What was the result?
Kodak’s failure to pivot and fully invest in digital photography led to its decline as competitors who embraced digital technologies took the lead.
Another example? Blackberry and the evolution of the smartphone
Due to its secure email services, Blackberry was a leader in mobile communications, especially in the business sector. However, it struggled to compete with the rise of iPhones and Android devices.
Core rigidities also played into the company’s demise.
Blackberry was known for its physical keyboard, which it believed was superior to the touchscreen. This belief delayed its shift to full touchscreen devices.
The company also prioritized business users over the mass consumer market, missing out on the growing demand for versatile, user-friendly smartphones.
Blackberry’s market share plummeted as other manufacturers provided more appealing and adaptable smartphones to a broader audience.
How Does Core Rigidities Impact Company Performance?
The examples show that they can significantly impact a company’s ability to innovate, adapt, and stay competitive. Core rigidities impact companies in four main areas:
1. A Culture of Stagnation and Inflexibility
Core rigidities often lead to a culture of stagnation, where teams stick to what has always worked instead of exploring new possibilities. This inflexibility can manifest in several ways:
- Reluctance to Experiment: When a company is deeply committed to existing processes, there is little room for experimentation. This hesitation can stifle the exploration of new ideas and prevent the organization from discovering innovative solutions.
- Resistance to Change: Employees and management may resist adopting new technologies or methodologies, fearing the risks associated with change. This resistance can slow down the organization’s response to technological advancements or shifts in consumer preferences.
2. Disruption of Creative Processes
They can also stop the flow of creativity within an organization by:
- Limiting Diverse Perspectives: When an organization sticks strictly to established ways of thinking, it may fail to incorporate diverse viewpoints. This lack of diversity can hinder the generation of innovative ideas as teams become echo chambers that reinforce existing values and beliefs.
- Inhibiting Collaboration: Rigid organizational structures and hierarchies can create silos, preventing effective collaboration between departments. This lack of cross-functional collaboration can limit the cross-pollination of ideas necessary for creative innovation.
3. Missed Opportunities and Market Misalignment
Companies with strong core rigidities may be out of sync with market trends and customer needs. This misalignment can result in:
- Delayed Product Development: An inflexible approach can lead to lengthy product development cycles, causing the company to miss critical market windows. More agile competitors can launch products faster, capturing market share.
- Failure to Address Emerging Trends: As seen with Kodak and Blackberry, companies with rigid mindsets often fail to recognize and capitalize on emerging trends. This failure can lead to lost market opportunities and a decline in relevance.
4. Diminished Organizational Agility
Organizational agility is essential for responding to unexpected challenges and opportunities. Core rigidities can:
- Slow Decision-Making: Decision-making processes can become bogged down in bureaucracy and adherence to outdated policies. This slow response can be detrimental in fast-moving industries where quick pivots are necessary.
- Limit Scalability: Rigid structures can restrict the ability to scale operations effectively, as they may not be flexible enough to accommodate rapid growth or changing business models.
How Can You Overcome Core Rigidities at an Organizational Level?
It requires a holistic approach that involves strategic shifts. Here are some broad strategies to consider:
Cultivate a Culture of Innovation
Foster a culture that values open-mindedness and flexibility. This includes encouraging employees to question existing processes and suggest new ideas without fear of criticism.
Implement incentive systems that reward innovative thinking and risk-taking. Recognize and celebrate successful initiatives and valuable lessons learned from failures.
Restructure Organizational Processes
Shift from a top-down decision-making structure to a more decentralized model. Empower teams to make decisions quickly and independently, allowing them to respond swiftly to changes.
Simplify communication channels to facilitate faster information flow across departments. Clear and efficient communication helps align teams and speeds up the innovation process.
Implement Cross-Functional Collaboration
Encourage collaboration across different departments and disciplines. Create cross-functional teams that combine diverse skills and perspectives to tackle complex problems.
Launch initiatives that require input and cooperation from multiple departments. These projects help break down barriers and foster a more integrated approach to innovation.
Embrace Agile and Lean Methodologies
Adopt Agile methodologies to enable iterative development and quick adjustments. Agile frameworks like Scrum or Kanban can help teams stay focused, adapt to feedback, and deliver value faster.
Implement Lean principles to reduce waste, streamline operations, and focus on delivering customer value. Lean thinking encourages continuous improvement and efficiency.
Invest in Continuous Learning and Development
Equip leaders with the skills and knowledge needed to drive innovation. Offer leadership training programs focusing on change management, creative thinking, and digital transformation.
Provide employees with opportunities for skill enhancement. Regular training sessions, workshops, and access to online courses can keep the workforce up-to-date with the latest industry trends and technologies.
Foster a Safe Environment for Experimentation
Develop dedicated spaces where teams can experiment with new ideas without the pressure of immediate results. These environments should encourage creativity and exploration.
Cultivate an organizational mindset that views failure as a valuable learning experience. Analyze unsuccessful projects to understand what went wrong and how to improve in the future.
What Can You Do if You Are an Individual Contributor or Leading a Small Team?
Even if you’re not in a position to make organizational changes, there are still impactful steps you can take as an individual contributor or a small team leader to combat core rigidities and foster innovation:
Start with Self-Reflection and Continuous Learning
Reflect on your work habits and attitudes. Are there areas where you’ve become resistant to change? Identifying personal rigidities is the first step in overcoming them.
Stay curious and continuously seek new knowledge. Attend workshops, read industry blogs, or take online courses to expand your skill set and stay updated on emerging trends.
Foster a Culture of Openness and Experimentation
Create an environment where team members feel comfortable sharing new ideas and challenging the status quo.
Regularly hold brainstorming sessions where all ideas are welcomed and valued. Don’t be afraid to try new tools, methods, or processes. Even small experiments can lead to valuable insights and improvements.
Leverage Cross-Functional Collaboration
Reach out to colleagues from different departments. Collaborating with others outside your immediate team can bring fresh perspectives and create innovative solutions.
Volunteer for projects that involve multiple departments. These opportunities can provide a broader understanding of the organization and foster a more collaborative approach to problem-solving.
Focus on Customer Feedback and Market Trends
Make it a habit to gather and analyze customer feedback. Understanding customer needs and pain points can help you identify areas where existing processes or products may fall short.
Keep an eye on industry trends and competitors. Knowing the broader market landscape can help you anticipate changes and adapt quickly.
Champion Agile and Lean Practices
Even within a small team, you can adopt Agile practices such as daily stand-ups, sprint planning, and retrospectives. These techniques can help your team stay aligned, prioritize tasks, and quickly adapt to changes.
Focus on delivering value and minimizing waste. Encourage your team to identify inefficiencies and seek ways to streamline workflows.
Advocate for Change and Innovation
You can influence change by advocating for new ideas and improvements even if you’re not in a formal leadership role. Share your insights with leaders and colleagues, and suggest innovative solutions proactively.
Demonstrate a willingness to adapt and innovate. When others see you embracing change and experimenting with new approaches, they may be more inclined to follow suit.
Wrap Up
Core rigidities are a silent threat to any organization. They subtly transform past successes into barriers that inhibit growth and innovation.
As we’ve explored, these rigidities can stifle creativity, slow decision-making, and lead to missed opportunities. However, recognizing and addressing them is critical to fostering a more agile and innovative company.
Whether you’re leading an organization or a small team, the path to overcoming core rigidities involves a blend of strategic initiatives and personal actions.
Remember, even small changes can make a significant impact. By staying curious, challenging the status quo, and embracing new perspectives, you can help break down the walls of rigid thinking and open up a world of possibilities for innovation.
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