Don't chase rounding errors

Investing in innovation is a risky affair. That is why every innovation idea and initiative should offer a significant upside.

That is why leaders ought to articulate their innovation ambitions—what types of ideas are acceptable, how will they contribute to overall business, and what is the desired impact.

This trickles down through the organisation, inviting ambitious ideas to bubble up.

The following five questions can stimulate the conversation around potential impact of an idea:

• Is there a significant upside?
• Does the upside justify the risk?
• Can this make a meaningful difference to our company?
• If successful, will it be mentioned in the annual report?
• If successful, will it be noticeable in the P&L statement?

Annual recurring revenue in millions might make a start-up weep tears of joy. But for an established conglomerate it might not even register.

So, expect more from ideas and innovation, and don't settle for mere rounding errors.

Dare to be ambitious!