Why transformative change is needed for cutting edge innovation?

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Effects of Transformative Change

Transformative change often requires the organizations to rethink the way they envision the future.Innovations that are able to provide incremental growth in revenues and market share are vital to the long term success of the organizations.At the same time, to sustain the business in the longer term requires transformational thinking.
Transformative change starts with creating a valuable future for the organization and then overcoming all the barriers to implementing the vision.
Many of us resist change because we fear it.We are linear thinkers who assume that the future will be same as today and because of this we find difficulty to envision what the future will be like.If envisioning the future is hard, then it is even harder to create the change needed to influence it.

Cognitive bias and Transformative change

  • Firms need to overcome their cognitive biases that overvalue the familiar and stand in a way of innovation and transformational change.
  • There are very few innovators like Elon Musk or Jeff Bezos who dream bigger and then inspire people around them to change the world.When these people create a vision for the future, they create a story because human brains sync when we hear stories.They achieve this by building a strategic creative – A vision for the future that helps team to envision what they could do and believe in it enough to take action.
  • Creating a strategic narrative around customer needs, existing customer data and technological trends can help companies abandon the status quo.For instance, retailers can look beyond incremental changes for improving productivity by deploying fully autonomous robots for customer service and inventory.

Overcoming decision bottlenecks in transformative change

  • Creating a strategic creative is the first step.Navigating the motivations, politics and routines to convince decision makers in any large organization is extremely challenging.Decision bottlenecks have derailed many good initiatives.
  • The first step to eliminate decision bottlenecks is to understand the organization’s values and their actions.The narrative should be built around these key insights so that people can easily understand.
  • The next step is to map out the organization’s formal and informal decision making process and the primary roles the decision makers play.
  • By combining the above two steps, one can persuade the right people to support and help facilitate the transformation.

Future path for transformative change

  • In a transformation, very often companies are moving towards a uncharted territory, hence they need to develop new sign posts to help guide choices and create confidence that the organization is heading in the right direction.
  • The most valuable method that firms use to navigate an unknown is to rely on applied Neuroscience. Neuroscience experiments provide precise data driven measures of how users subconsciously react to a new product/service.Companies like IKEA leverage applied Neuroscience by using high resolution headsets and eye trackers to test customers reactions to radical new concepts such as a shift to renewable plastics.
  • By correlating customer reactions with a huge behavioral database, IKEA was able to pinpoint which business models would be accepted and rejected by customers.


Before unleashing bigger ideas, which Google refers as 10x thinking, firms need to evaluate its mindset. Creativity requires an understanding that there is no definite objective future.What is going to be created today will become the future tomorrow.

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