Is brainstorming killing your innovation? Ideation-first innovation produces pilots nobody budgeted for and roadmaps nobody asked for. Inside corporates, the better sequence starts at the end: the revenue line the venture must reach, worked backwards to what must be proven first.
Let's be clear—brainstorming might be the worst way to kick off your innovation efforts.
I know, it sounds counterintuitive. Isn't brainstorming where all the brilliant ideas are born?
But here's the hard truth: if you start with brainstorming, you're setting yourself up for failure.
Without a clear end goal, all those ideas are just noise.
What's the Better Approach?Start with the End in Mind.
Why "Just Start Ideating" is Terrible Advice
Imagine this: You're a chef.
Do you start by tossing random ingredients into a pot, hoping they'll magically turn into a gourmet dish?
Of course not.
You begin with the end goal—a vision of the final dish. Then, you select ingredients and cooking methods that will help you achieve that vision.
The same logic applies to strategic projects.
Consider Intel. They poured billions into Intel Labs, trying to build new products and enter new markets. However, they were just experimenting without a clear end goal.
The Result?
Their market cap more than halved, losing about $80 billion in value. But more importantly, they lost their market-leading position. Competition piled up, and customers like Apple and Microsoft started creating their own processors. Now, Intel faces an uphill battle to regain its decade-long dominance.
The Genius of Reverse Engineering Your Strategy
Let's be honest: I don't have inside knowledge of Intel's strategies. But we can learn from their public reports. The financial data suggests that their efforts to innovate, develop new businesses, and acquire companies lacked a clear end goal.
So, How Do You Avoid the Intel Drama?
It's simple (but not easy): reverse engineer your strategy.
As Charlie Munger puts it: "Invert, always invert."
You have to understand what success looks like by answering four critical questions:
1. Why Do You Want to Start New Business Initiatives?
Let's cut through the noise—why are you really pushing for new business initiatives?
Is it because you're caught up in the hype of the latest trend, or is there a strategic gap that absolutely needs to be filled? Chasing the next big thing is tempting, but is it driven by a real, pressing need?
If you're not responding to a critical business challenge or seizing a strategic opportunity, you're just chasing shadows.
Be radically candid about your motivations—because the stakes are high, and your time and resources are limited.
2. Which Areas Will You Focus On?
Now, let's talk strategy. Where's your battlefield?
What specific ecosystems will you target to get the highest returns on your efforts? This isn't about spreading your bets—it's about doubling down where it matters most.
The truth is, you can't win everywhere, and if you try, you'll end up nowhere. Identify a maximum of three ecosystems that are ripe for change or growth and focus your energy there.
These are the ecosystems where you can make the biggest impact—don't dilute your focus by trying to be everywhere at once.
3. What Is Your End Goal?
Here's the question that can make or break your success: What's the ultimate prize you're after?
If you're not crystal clear on this, you're setting yourself up for failure.
Are you aiming to dominate your market, open up a new revenue stream, or future-proof your business?
You can't pursue everything at the same time. Pick one end goal per ecosystem. This is your North Star, the guiding light that aligns every action you take. Without this, your initiatives are just wandering in the dark. Know where you're going, or don't start the journey at all.
4. How Will You Get There?
Finally, what's the system to get to your goals?
You've defined the end goal and chosen your battlefield—now it's time to lay out your processes, methodologies, and governance.
How will you navigate the complexities and challenges ahead?
This isn't about winging it; you need a clear, actionable roadmap that includes everything from market validation to go-to-market strategies and potential M&A moves. An inclusive and end-to-end innovation system.
Each step should be laser-focused on bringing you closer to your ultimate goal. And remember, flexibility is key—markets change, and so should your strategies.
Read more about orchestrating an innovation system here: www.bw.ventures/pdf/12-steps-to-a-great-innovation-strategy
TL;DR Action Plan
- Interrogate Your Motives: Be brutally honest. Are you launching new initiatives to fill a genuine strategic gap, or are you just chasing the latest trend? If it's not addressing a real business need, it's a distraction.
- Select Your Battlefields: Zero in on no more than three ecosystems where your innovation efforts can make the biggest impact. Spread too thin, and you risk achieving nothing substantial.
- Clarify Your End Goal: For each ecosystem, identify one clear, overarching goal. This is your North Star, the guiding principle that ensures every move you make is aligned and purposeful.
- Craft a Strategic Roadmap: Develop a comprehensive, actionable plan that covers everything from market validation to go-to-market strategies and potential M&A activities. Your plan should be both focused and flexible, adapting to changes while keeping your end goal in sight.
Closing Thoughts
The difference between companies that thrive and those that falter boils down to one thing: clarity. Clarity of purpose, clarity of goals, and clarity of execution. So, before you take your next step, ask yourself: Do you know exactly where you're headed? If you do, every decision from this point forward becomes a deliberate move toward that vision. If not, it's time to stop and rethink your strategy. Because without a clear destination, every action, no matter how bold, is just a gamble. In today's hyper-competitive market, the future of your business depends on whether you have the guts to pause, reflect, and ensure your course is truly aligned with your ultimate objectives. Success isn't about speed—it's about direction.
Don't Create Unicorns,Breed Blue Whales
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P.S. In our next edition, we'll explore how ecosystems can help you effectively identify high-potential niches. Don't miss it!
Related reading: Innovation Fails Because Teams (Still) Skip This One Crucial Step
Starting with the end in mind is why every PreXLR begins with the business case the board must eventually approve. If that sounds like your situation, book a discovery call.