5 Reasons Innovation Stalls in Crisis (And How to Ensure Yours Doesn’t)
Disruption doesn’t just affect your operations—it can paralyze innovation. While many leaders know they need to innovate during times of change, the reality is that innovation often stalls when organizations face unexpected challenges. Why does this happen? Let’s break it down.
When disruption hits, the brain goes into a state of heightened alert, triggering the "fight or flight" response. This natural survival mechanism can cause leaders and teams to become risk-averse, prioritizing safety and security over creativity and innovation.
According to a study by MIT Sloan, 63% of executives report that organizational resilience and agility are hindered by fear-based responses during crises, preventing them from seizing innovation opportunities. If your team is caught in survival mode, innovation becomes a secondary priority, even though it’s precisely in times of crisis that new ideas and solutions can be the key to thriving.
Neuroscience shows that embracing uncertainty with a growth mindset can actually stimulate innovation by engaging the brain's problem-solving networks, enabling leaders to think beyond the immediate disruption and see new possibilities.
Why does this happen? Let’s break it down.
1. Fear of the Unknown
When disruption strikes, it’s natural to feel uncertain about the future. This fear can lead organizations to play it safe, sticking with what they know rather than embracing new, untested ideas. However, this resistance to risk limits innovation and leaves you vulnerable to competitors who are more willing to explore bold new directions. Innovation requires courage, especially when the path ahead isn’t clear.
2. Lack of Leadership Alignment
During times of disruption, leaders often struggle to maintain alignment within their teams. Without a unified vision and strategy, innovation efforts get lost in a sea of conflicting priorities. Leaders must work together to ensure that innovation remains a top priority, with clear goals and aligned efforts across the organization. Innovation thrives in environments where leadership is united and focused on the same mission.
3. Resource Strain and Prioritization
Disruptions often stretch resources thin. Companies may divert time, talent, and budget toward immediate survival, leaving less room for long-term innovation. When resources are stretched, innovation initiatives are often sidelined in favor of urgent operational demands. However, by failing to innovate, you risk falling behind your competitors and missing out on future growth opportunities. Finding ways to balance short-term survival with long-term innovation is crucial for sustainable success.
4. Overcoming the Status Quo
When organizations face uncertainty, they often cling to the familiar—business as usual becomes a coping mechanism. The status quo can feel like a safe haven, but in reality, it stifles innovation. Leaders must actively create an environment where challenging the status quo is encouraged, even during turbulent times. Only by embracing discomfort and change can organizations unlock the new solutions and opportunities that come with disruption.
5. Internal Resistance to Change
Innovation often stalls when there is resistance within the organization—whether from employees, managers, or even senior leaders. This resistance can stem from fear, lack of understanding, or simply a lack of urgency. Overcoming internal resistance requires a cultural shift that encourages experimentation, learning from failure, and embracing new ways of thinking. Leaders must create a culture where innovation is not just a buzzword, but a fundamental part of the organization’s DNA.
The key to thriving during disruption is not just reacting, but leading with innovation. Companies that continue to innovate during times of change position themselves to emerge stronger and more competitive. Innovation shouldn’t stop when disruption begins—it should accelerate.
Innovation isn’t just a nice-to-have during disruption—it’s a must. The companies that thrive in times of change are those that stay committed to innovation, even when the road ahead seems unclear. By addressing the reasons why innovation stalls and taking action to overcome them, you ensure that your organization remains agile, creative, and competitive. Now is the time to foster an environment where innovation can flourish, no matter the challenges.
Leadership Practice
3 Ways to Keep Innovation Moving Forward During Disruption
To keep innovation alive in the face of disruption, ask yourself these questions and take action:
How can I create a culture of experimentation within my team?
Encourage small, low-risk experiments that allow teams to test new ideas and learn quickly. By creating a safe space for experimentation, you empower your team to innovate, even when the stakes are high.
What processes can we put in place to keep innovation aligned with the overall mission?
Establish clear processes for aligning innovation with organizational goals. Regular check-ins, cross-department collaboration, and a unified innovation framework can ensure your efforts are strategic and purposeful.
How do we balance short-term survival with long-term innovation?
It’s easy to focus entirely on short-term survival when disruption occurs, but maintaining a balance between immediate priorities and long-term innovation is essential. Prioritize innovation initiatives that align with both current needs and future goals to maintain a competitive edge.
Author
Athena Williams, Founder and CEO of Tenacious Leadership Institute, has been supporting leaders worldwide to become more tenacious for over 20 years. She has found that tenacity is the key to sustained leadership success in today’s ever-changing world. Through her coaching and leadership development programs, she helps leaders expertly handle change, complexity and other challenges so they can quickly get better results for themselves, their teams and their organizations.
Take the first step to becoming a tenacious leader by scheduling a call with us.
