7 Leadership Behaviors Blocking Innovation—and How to Fix Them for Customer-Centric Success

Recently, while helping a team on their journey to becoming more agile and resilient, the topic of innovation came up. One leader asked, “How do we ensure our innovations are valuable to customers?” That question struck a chord and led to a deep conversation.

Innovation is critical in today’s fast-changing world, but it’s only meaningful if it creates real value for customers—and, by extension, the business. Too often, leaders unintentionally hold onto behaviors that block meaningful innovation.

Here’s a closer look at the behaviors leaders need to stop and practical examples of how making these changes can unlock impactful, customer-focused innovation.

1. Stop Focusing on Ideas Instead of Impact

What Happens:

Many leaders think more ideas equal better innovation. But without understanding customer needs, even the best ideas can fall flat.

Example:

A tech company launched a “smart kitchen gadget” packed with features but skipped market research. Customers found it too complicated, and the product failed spectacularly, costing millions.

What to Do Instead:

Co-create solutions with customers. Dyson, for example, designs its products with extensive user feedback, ensuring their innovations solve real problems.

2. Stop Micromanaging

What Happens:

When leaders control every detail, they stifle creativity and slow down innovation. Teams lose the confidence to experiment or take risks.

Example:

A healthcare startup’s CEO micromanaged a patient app project, delaying it until competitors had already dominated the market.

What to Do Instead:

Give your teams the freedom to innovate. Atlassian, the company behind Jira, trusts its teams to run innovation sprints, giving them autonomy to experiment and deliver without interference.

3. Stop Ignoring Customer Feedback

What Happens:

Assuming you know what customers want can lead to irrelevant or unhelpful products.

Example:

A car manufacturer launched a luxury electric vehicle, convinced customers wanted premium features. It turned out that affordability and charging convenience mattered most, and sales tanked.

What to Do Instead:

Follow Tesla’s lead by continuously gathering customer feedback. Their real-time insights inform product updates, ensuring their innovations align with what customers truly need.

4. Stop Rewarding Busyness Over Results

What Happens:

Praising effort instead of outcomes encourages teams to stay busy but not necessarily productive.

Example:

A software company celebrated a team for completing 20 “innovative” projects in a year—even though none of them reached customers. It wasted time and demotivated employees.

What to Do Instead:

Recognize impact, not just effort. Google’s famous “20% Time” policy encourages employees to focus on passion projects that solve real problems. This has led to game-changers like Gmail and Google Maps.

5. Stop Avoiding Risks

What Happens:

Fear of failure leads to playing it safe, which can mean missed opportunities for true innovation.

Example:

A retail brand stuck to its traditional stores while competitors embraced e-commerce. Their refusal to take risks cost them relevance and customers.

What to Do Instead:

Embrace calculated risks. Nike launched the Nike Training Club app, boldly diving into digital fitness. The risk paid off, boosting customer engagement and brand loyalty during the pandemic.

6. Stop Treating Innovation as a Solo Act

What Happens:

Relying on one team or department for innovation creates silos and limits the potential for meaningful collaboration.

Example:

A pharmaceutical company gave its R&D team full responsibility for innovation. Without input from marketing or sales, they developed a product that healthcare providers didn’t want to use.

What to Do Instead:

Foster collaboration across departments. Procter & Gamble’s “Connect + Develop” program integrates ideas from both internal teams and external partners, resulting in customer-loved products like the Swiffer mop.

7. Stop Measuring Success with Outdated Metrics

What Happens:

Focusing only on short-term revenue or traditional metrics can undermine long-term innovation efforts.

Example:

A financial services firm scrapped an app because it didn’t immediately boost profits, missing its long-term potential to attract younger customers.

What to Do Instead:

Look at broader metrics. Spotify measures success using Monthly Active Users (MAU) and retention rates, ensuring innovations align with customer satisfaction and long-term goals.

Key Takeaways

Innovation is about solving real problems and creating value—not just making something new. By stopping behaviors that block progress, leaders can create a culture where impactful, customer-focused innovation thrives.

What’s Next for Leaders?

Pick one of these behaviors to stop. Replace it with a customer-centric approach that empowers your team to innovate and deliver real results.

Ready to rethink your leadership approach? Start small and watch your team—and your innovations—thrive. Want to Go Deeper? If this article resonates with you, let’s continue the conversation. Reach out to explore how you can unlock your full potential as a leader boosting innovation in its team or organisatin. Contact us!