In 1996, ``What is innovation? The art of welcoming risk'' was published in
The Journal of Consumer Marketing. This chapter was adapted from my
book, Innovation: Leadership Strategies for the Competitive Edge
(Kuczmarski, 1995), and was written to send a clear message to CEOs across
corporate America ± a commitment to innovation is the key to successful
growth.
Wealth of rewards
The chapter illustrates how strategically pursuing growth through the
development of new products and services brings a wealth of rewards to
companies ± greater profit margins, increased earnings streams, higher stock
prices, etc. Unfortunately, a level of uncertainty accompanies innovation,
and the degree of risk is often such that CEOs talk to innovation but do not
actually adopt it as a critical component of their culture or make it a top
priority. Most CEOs deny their reluctance to tackle innovation because it is
high-risk and/or high-cost, but inevitably organizations fail to allocate
adequate resources ± human and financial ± to support innovation.
Since this chapter was published and as economic conditions have changed,
however, we have actually seen companies grow even more risk averse to the
detriment of innovation. The message of the first iteration of this chapter still
rings true ± accelerated growth can be achieved through the adoption of an
innovation mindset and dedication to breakthrough innovation ± but
companies are not heeding this message or placing enough importance on
innovation. Now more than ever innovation should be a company-wide
priority, and CEOs should be taking the lead and communicating its