Thought piece: 8 steps to future-proof your business

Hey there, welcome to another edition of Lighthouse! This edition cuts through the noise to deliver practical strategies for driving real innovation in your organization. In this issue, we're tackling the Innovation Supercycle - a system I've developed to help businesses thrive in the age of AI.

Let's dive in!

I once ran a set of brainstorming sessions. The team was excited, there was energy in the room, and ideas were flowing at an increasing pace. Many ideas were noted, and a roadmap to success was drafted. And then nothing happened. Not one thing made it to execution. Not one.

Today, 95% of innovation initiatives still fail (McKinsey, 2023).

It's time to break free from this cycle of "innovation theater" and embrace a more effective approach.

I've spent the last decade wrestling with this problem, and the past year researching it much deeper, dedicating 4 hours a day to reading and asking questions—over 100 hours of interviews with top execs and innovation champions.

Now I can conclude: there is a better way. It's not sexy, it's not easy, but it works. I call it the Innovation Supercycle.

This system, developed through years of trial and error, offers a practical roadmap for organizations looking to stay ahead in the age of AI.

Here are the key components of the Innovation Supercycle:

1. Start small, think big

Begin with a diverse "LEAP team" (Locate, Evaluate, Action Plan, Progress) of about five people from different departments. This small group becomes your innovation vanguard, tackling challenges with fresh perspectives.

2. Embrace the cycle

Establish a rhythm of continuous improvement with regular three-month cycles. In each cycle, identify opportunities, evaluate potential, create action plans, and implement prototypes.

3. Document everything

In the data-driven world of AI, thorough documentation is crucial. Create a valuable knowledge base that can inform future decision-making and enable pattern recognition.

4. Leverage AI as a catalyst

Use AI to augment your team's capabilities, from idea generation to data analysis. Remember, AI is a powerful tool, not a replacement for human creativity and intuition.

5. Scale strategically

As your first innovation cycle succeeds, use the momentum to scale your efforts. Aim to start two new cycles for each completed one, potentially leading to hundreds of innovative projects within a few years.

6. Build a culture of experimentation

Create an environment where calculated risks are encouraged and failures are seen as learning opportunities. This mindset shift is crucial for true innovation to flourish. The cycles help.

7. Communicate and celebrate

Regular communication about innovation efforts builds buy-in across the organization. Consider implementing quarterly "demo days" to showcase progress and inspire others.

8. Lead by example

As a leader, your role in fostering the Innovation Supercycle is crucial. Embrace a coaching mindset and actively participate in the innovation process to demonstrate its importance.

Implementing the Innovation Supercycle isn't without challenges. It requires a fundamental shift in how organizations approach problem-solving, creativity, and culture.

By implementing these principles, you're not just preparing your organization for the future—you're actively shaping it.

There will be resistance and setbacks. However, in the age of AI, the ability to consistently generate, evaluate, and implement new ideas will separate thriving companies from those left behind.

The Innovation Supercycle isn't an unattainable, nebulous goal; it’s a state that can be brought about with a rigorous framework for sustained growth and adaptation that scales exponentially.

My research resulted in a book which I’ll be sharing with you all soon, and for our community, it will be free or as close to free as I can make it! Simply keep an eye on this newsletter for updates and more 3-minute insights.

Meanwhile, let's keep the conversation flowing, and follow me on LinkedIn!

Join our Innovation Champions on LinkedIn or simply DM me there. If you have any thoughts, I’d love to hear back!

P.S. This marks the first of many thought pieces I'll share with you here in Lighthouse.

Much love,
Matt