Afeyan advises against making breakthrough innovation everyone's responsibility, as it's unsustainable and disruptive to daily jobs. Instead, companies should create a separate group with different motivations, composition, and rewards, focused solely on discontinuous leaps.
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Innovation requires stepping away from the tools and standards everyone else uses, as Nike co-founder Bill Bowerman did with an early movie camera. This path is often lonely, as you may operate on your own before others understand your vision. You must be comfortable with this isolation to create breakthroughs.
While adjacent, incremental innovation feels safer and is easier to get approved, Nubar Afeyan warns that everyone else is doing the same thing. This approach inevitably leads to commoditization and erodes sustainable advantage. Leaping to new possibilities is the only way to truly own a new space.
Conventional innovation starts with a well-defined problem. Afeyan argues this is limiting. A more powerful approach is to search for new value pools by exploring problems and potential solutions in parallel, allowing for unexpected discoveries that problem-first thinking would miss.
To avoid chaos in AI exploration, assign roles. Designate one person as the "pilot" to actively drive new tools for a set period. Others act as "passengers"—they are engaged and informed but follow the pilot's lead. This focuses team energy and prevents conflicting efforts.
Inspired by James Dyson, Koenigsegg embraces a radical commitment to differentiation: "it has to be different, even if it's worse." This principle forces teams to abandon incremental improvements and explore entirely new paths. While counterintuitive, this approach is a powerful tool for escaping local maxima and achieving genuine breakthroughs.
Forcing innovations to "scale" via top-down mandates often fails by robbing local teams of ownership. A better approach is to let good ideas "spread." If a solution is truly valuable, other teams will naturally adopt it. This pull-based model ensures change sticks and evolves.
The common practice of hiring for "culture fit" creates homogenous teams that stifle creativity and produce the same results. To innovate, actively recruit people who challenge the status quo and think differently. A "culture mismatch" introduces the friction necessary for breakthrough ideas.
Afeyan distinguishes risk (known probabilities) from uncertainty (unknown probabilities). Since breakthrough innovation deals with the unknown, traditional risk/reward models fail. The correct strategy is not to mitigate risk but to pursue multiple, diverse options to navigate uncertainty.
Nubar Afeyan argues that companies should pursue two innovation tracks. Continuous innovation should build from the present forward. Breakthroughs, however, require envisioning a future state without a clear path and working backward to identify the necessary enabling steps.
Spreading excellence should not be like applying a thin coat of peanut butter across the whole organization. Instead, create a deep "pocket" of excellence in one team or region, perfecting it there first. That expert group then leads the charge to replicate their success in the next pocket, creating a cascading and more robust rollout.