HBR IdeaCast A Theoretical Physicist (and Entrepreneur) on Why Companies Stop Innovating
Mar 19, 2019
Safi Bahcall, a former biotech CEO and theoretical physicist, discusses the chilling transition from innovation to stagnation in companies. He compares this shift to water freezing into ice, where the elements remain but the structure changes. Bahcall shares insights on how to foster a creative environment despite workplace politics. He also emphasizes the importance of a nurturing culture for ideas to thrive, advocating for tailored incentive systems to keep motivation high and innovation alive.
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Nokia's Missed Opportunity
- Nokia, once a leader in mobile phones, exemplified innovation by building the first cellular network.
- However, they later rejected the idea of a touchscreen phone with an app store, which Apple successfully launched.
The Phase Transition of Companies
- Companies, like water freezing into ice, can shift from innovative to complacent despite having the same elements.
- This sudden shift is comparable to a phase transition in chemistry, where a change in structure, not elements, causes a change in behavior.
Structure over Culture
- Companies experience shifts similar to phase transitions in chemistry, like water freezing.
- The change is due to the dynamics of interaction, not a conscious decision from leadership.
