Today Innovation is the Leading Imperative for All Businesses

“Productivity is about fixing the past, and innovation is about creating the future”. 

Cost cutting has become an art form and reducing costs to build the bottom line has become the norm. However, this is not a sustainable model.

The Top Line Is the New Bottom Line

Given the massive cost cutting businesses have already sustained, top line growth is essential to continue improving the bottom line. Without top line growth, it will be impossible to continue delivering the increased profitability that today’s shareholders demand. In short: The top line is the new bottom line.

Innovation Drives Top Line Growth

We are not suggesting that productivity will go out the window. We ARE suggesting, however, that developing sustainable top line growth will become paramount, and that innovation drives top-line growth. This puts innovation in the bulls-eye of leadership priorities because “innovation fuels growth, and leadership provides the fuel”. Innovation will become the leading business imperative. 

Without innovation, businesses won’t grow and thrive, and if a business isn’t growing, it’s dying.

Responsible Governance Will Equal Accountability for Delivering Sustainable Growth

In addition, responsible governance will equal accountability for delivering sustainable growth. For at least the past decade, boards have been focused primarily on staying out of trouble, taking a proactive role only if the business is in crisis. 

Accountability for Anticipating Business Outcomes

Shareholders have had their fill of this lax approach, and the CYA oriented board has already begun to shift toward accountability for anticipating business outcomes. Moving forward, boards will need to pro-actively evaluate leadership bench strength, success options (short and long term), innovation pipelines, strategic financial investments, and people development. 

Priorities Shifting from Cost Cutting to Value Creation

We believe business priorities will shift from cost cutting to value creation, will put the spotlight on innovation and will demand that boards step up to their accountability as pro-active financial stewards. 

Winners Will Define A Path to Growth

The winners will be the leaders who define a path to growth and then inspire their teams to create it. These are the leaders who will have it all and “Break Away”.