Week after week when I talk to people they continually ask, "Why do I need to Innovate?"
Business leaders often tell me they don't need to innovate. They explain that -- if we just ______ it will all go back to the way it was and all will be good again.
You can fill in the blank with what ever you wish...if we just had workers who were more engaged...if we just had workers who worked harder...if we just got government out of our business...if we just had a government who cared about business and who did something about China...
The truth is no one can go back.
THE REASON YOU NEED TO INNOVATE IS YOUR DON'T WANT TO GO OUT OF BUSINESS
Sadly, most leaders don't see the urgency. Leaders of 75% of the S&P 500 over the past 20 years didn't see it either - that is why their companies are gone - bankrupt, acquired, and merged out of existence.
As the chart above shows when the market changes faster than you do your company gets smaller. The data shows that of the 10 most valuable companies on planet earth in the year 2000 only one is actually worth more than it was in 2000.
The declining companies have gone down in value a little over 4% a year...they often say this is nothing to be concerned about...however over the years that decline adds up. The decline over 14 years will be 61%.