The level of innovation capability within organizations is connected to the ability of making the right sense of collective experiences, especially in uncertain or ambiguous times. In this post Susanna Bill delves deeper on the importance of sense making and the effects it has on the level of innovation capabilities. And addresses a personal dilemma.
The most innovative leaders have a mindset like that of a venture capitalist. They take a portfolio view of innovation projects. The venture capitalist will invest in a basket of different start-up companies, fully knowing that most will fail. A few might break even and one or two might be successes. But one big success can pay back the costs of all the failures. Even though he is smart, the VC does not know at the outset which ventures will succeed and which will fail so initially he backs them all. As time goes on he cuts funding for the failures and gives more to the winners.