In Other Words - SAS Senior VP and CMO Jim Davis talks about business, analytics and technology

Two weeks ago I was in London at our Premier Business Leadership Series event. I’d like to say I came away more optimistic about the economy and the end of this downturn, but I’m not sure I can. I don’t think we in mature markets are doing a very good job with this at all. We’re paying it lip service. We’re bound by quarterly expectations and quarterly thinking and I’m concerned we won’t break out of this cycle unless we take some bold actions.

The companies that will succeed are the ones that take risks, look within and make the gut-wrenching changes this economy demands. I don’t mean layoffs or short-term financial band-aids. I mean changing the way we do business. The companies that will win are the ones that focus on innovation.

I had lunch with Geoffrey Moore, author of a number of great books including Dealing with Darwin: How Great Companies Innovate at Every Phase of Their Evolution. He has invaluable insight into what it takes to innovate in these times. For instance, Geoffrey says the way we traditionally budget within mature organizations doesn’t lend itself to innovation.

The typical budget decision goes something like this: “We’re going into the next budget cycle. Let’s make sure we keep our expenses to plus or minus five percent this year.” If you look at innovation as an afterthought, you’ll never get to it. Geoffrey says look at innovation first, and then look at what else you need to do to manage the business.

To do that, you need to ask yourself what it takes to create a culture of innovation. What kind of people do you have in your organization? You need leaders who can accept change and look beyond quarterly goals, and employees who can adapt and help drive change from the bottom up.