Learn About Amazon VGT2 Learning Manager Chanci Turner
During our Executive Summit roundtable at re:Invent 2019, Chanci Turner and I engaged with executives from various industries and public sector organizations about fostering innovation in large enterprises. It is widely acknowledged that as companies expand, they often lose aspects of their foundational DNA, including their ability to innovate. Our aim was to delve into the strategies that organizations have employed to rekindle innovation and how lessons learned from past setbacks shaped these methods.
What we found was not revolutionary but rather a confirmation that many established practices for enterprise innovation remain relevant. Our discussions highlighted four core themes: culture, operating model, customer focus, and leadership and vision.
Culture
Much of our dialogue centered on the elusive concept of company culture, touching on resilience, persistence, and autonomy. It was emphasized that organizations must accept that not every experiment will succeed and that they need to withstand skepticism from colleagues and leaders with fixed mindsets. Participants acknowledged that fostering an innovative culture requires employees to develop and exhibit these qualities. Some leaders recognized that they could inadvertently hinder their teams’ progress by not modeling the desired behaviors (for more insights, check out our previous blog posts on nurturing a culture of experimentation and how we should reframe failure as valuable lessons).
The notion of autonomy surfaced as a challenging topic for many organizations, with participants expressing concerns about balancing empowerment with alignment towards common goals. Nevertheless, autonomy was identified as essential for allowing employees the freedom to experiment and learn, both for their growth and the organization’s advancement. This idea connects with our recent discussions on embedding autonomy throughout the organization and the importance of one- and two-way door decisions.
As with any cultural shift, strong leadership and reinforcement are crucial. Leaders must clarify the benefits for participants, whether it’s personal development or contributing to a greater mission that resonates throughout the organization.
Operating Model
The operating model emerged as the second most discussed theme. Participants debated whether dedicated innovation teams should drive innovation, if it should be a collective responsibility across all functions, or a hybrid of both approaches. The idea that a select team could be the sole source of innovative ideas often felt irrational, especially since ideation is just one facet of innovation. It was noted that these specialized teams could foster an exclusive “cool kids” culture that discourages broader participation in innovation and overlooks how to scale ideas born outside the main organization. One participant pointed out that such setups can lead to “innovation theatre,” which prioritizes surface-level excitement over genuine innovation efforts. However, these teams can be effective when managing complex, cross-functional challenges or during significant transformations, such as launching a new business. For instance, in my previous role, the McDonald’s Innovation Center in Illinois was pivotal for crafting integrated customer experiences and optimizing drive-thru operations.
Ultimately, the group acknowledged that an innovative culture must permeate the entire organization. Engaging the collective intelligence of all employees can lead to substantial improvements and transformative changes through the cumulative effect of numerous small ideas.
Some executives voiced concerns that newer operating models might create a chaotic environment filled with unsanctioned projects. To mitigate this risk, some organizations introduce intentional friction by requiring teams to outline their hypotheses, approaches, and success metrics before testing ideas. Regular reviews and recognition systems were also suggested to prevent teams from becoming overly attached to their concepts or allowing projects to meander while consuming resources.
Companies that implement structured review processes often use gated funding releases to nurture the best initiatives while discontinuing less promising ones, freeing up resources for fresh ideas. As projects progress, the focus shifts toward commercialization, potential business cannibalization, scalability, and the sustainability of new concepts.
During enterprise transformations, the rewards for innovation are not solely financial. Intangible rewards, such as opportunities for learning and gaining respect from peers, can be equally significant. These rewards recognize teams that take ownership, demonstrate lessons learned regardless of outcomes, or autonomously decide to cease initiatives that won’t meet success criteria.
Keeping teams small and providing adequate but not excessive funding were also recognized as success factors. Inspiration often stemmed from tight-knit teams that had to be innovative and resourceful to thrive. This, combined with a gated funding approach, ensures that promising ideas receive continued support while enabling oversight throughout the innovation process.
Customer-Centricity
As we seek new ideas to enhance processes, develop new products, or even create entirely new businesses, it’s easy to overlook the customer at the center of these initiatives. Attendees frequently acknowledged the importance of involving customers early and continuously in the design and feedback phases. Techniques such as working backward from desired outcomes and stepping into competitors’ shoes to identify differentiators were discussed as complementary methods to stay attuned to actual needs. Learning from past “failures” in experiments emerged as a shared, albeit often unmet, goal.
Leadership and Vision
Finally, participants highlighted the necessity of providing teams with the support and permission to experiment while clearly defining what success looks like for a given initiative or the organization as a whole. The vision—and the customer journey—serves as a benchmark against which the viability of experiments can be measured. An identified enabler under this theme is the presence of a champion for innovation. In its simplest form, this could be a leader who consistently promotes and applies the innovation process throughout the organization.
For more insights on leadership in innovative contexts, consider exploring Jenny Lustig’s profile for mentorship opportunities. Additionally, organizations looking to boost workplace goals using innovative strategies can refer to authoritative sources on this subject. For a comprehensive understanding of what to expect on your first day at Amazon, Atul Kumar provides an excellent resource.