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Harnessing Imagination to Drive Innovation

March 15, 2024
in Business
Harnessing Imagination to Drive Innovation
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Six steps to systematize creative thinking — and ultimately drive growth.

March 14, 2024

Stephen Simpson/Getty Images

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The decay of rules-based trade means that companies can no longer find growth as easily by expanding to new locations, or expanding demand through low-cost single point sourcing. In this context, companies seeking growth must develop innovative offerings to expand demand. These offerings are, essentially, products of imagination — conceiving of and realizing new possibilities — a challenge that companies struggle with. In this article, the authors present a six step-cycle that is at the foundation of a corporate “imagination machine.”

Growth is critical to long-term value creation: Our analysis of the total shareholder return (TSR) of over 2,000 large companies reveals that over a five-year period more than half of it can be attributed to sales growth — with investor expectations, cost reductions, and changes in operating margin making up the rest. Over a 10-year horizon, nearly three-quarters of TSR are driven by sales growth.

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Martin Reeves is the chairman of Boston Consulting Group’s BCG Henderson Institute in San Francisco and a coauthor of The Imagination Machine (Harvard Business Review Press, 2021).

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Adam Job is the director of the Strategy Lab at the BCG Henderson Institute.

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HBR Learning

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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Innovation and Creativity. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.

Unlock your team’s curiosity and willingness to take smart risks.

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Copyright for syndicated content belongs to the linked Source : Harvard Business – https://hbr.org/2024/03/harnessing-imagination-to-drive-innovation

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