The Secret Sauce of Innovation

Lean years can be good for young companies as challenges build character, bond teams, enhance innovation and instill operational efficiency. Great companies, including IBM, Microsoft and Apple, emerged during times of economic difficulties. Recent studies have found that the adult brain is not static but constantly reshaped by experiences and moderatley high levels of difficulty and challenge actually facilitate learning. Stress can also be a powerful driver of change. One of the examples provided is Southwest Airlines who had to figure out how to fly exactly the same schedule with just three aircraft instead of four as there was a cash crunch due to the recession. This meant planes had to be unloaded, reloaded and depart all within 10 minutes instead of the industry standard of 1 hour. This innovation contributed significantly to the dynamic, innovative culture that pervaded the company. In sum, companies should use challenging times to create transformational value and surge ahead of the competition.