The cinematic masterpiece Dances with Wolves tells the compelling story of Lieutenant John Dunbar’s transformative journey as he integrates with the Lakota Sioux tribe. This narrative of cultural immersion and adaptation offers a surprisingly insightful lens through which to examine the successes and frequent failures of corporate innovation outposts. Just as Dunbar had to learn the “Dances With Wolves Dance” – understanding and embracing a new culture – corporations must learn a similar dance to make their innovation outposts thrive.
Inspired by a recent conversation with Ismail Amla about innovation hubs and his book “From Incremental to Exponential,” this exploration delves into the crucial elements that determine whether an innovation outpost becomes a valuable asset or just another costly experiment. We’ll examine what works, why it works, and, crucially, what often leads these ventures to fall short of their potential.
Beyond Mechanics: The Humanics of Innovation
“Before the year 2000, there were only 29 innovation outposts active in the Bay Area, with most of them as R&D centres. 20 years later the picture is substantially different, with corporate innovation activities booming, becoming a central element of the innovation ecosystem. Over the last 10 years, the number of corporate innovation outposts has increased more than 5 times. 80% were not present before 2010.” – Marco Marinucci, CEO and founder of Mind the Bridge
The sheer volume of corporate innovation outposts in Silicon Valley – nearing a thousand – might suggest a thriving ecosystem of groundbreaking ideas. However, the reality is far less optimistic. Studies, including one by Capgemini and Altimeter Group, indicate that a staggering 90% of corporate innovation initiatives fail to deliver on their promises. This isn’t due to a lack of financial investment. Corporations often readily allocate funds, hoping to appease stakeholders and project an image of innovative dynamism. The root causes lie deeper, often overlooked in the rush to establish a physical presence in innovation hotspots.
One critical misstep is relying on “mechanical fixes” instead of addressing “humanic problems.” Imagine a company attempting to improve cross-departmental collaboration simply by implementing a new software platform. While the technology (the mechanic) might be sound, the underlying issues of culture, trust, and incentives (the humanics) remain untouched. People might lack motivation to use the new tool, see no personal benefit in collaborating, or even be incentivized to compete internally. Such initiatives, focused solely on mechanics, are destined to falter.
Similarly, many organizations approach innovation outposts with a purely mechanical mindset. They believe that simply setting up an office in Silicon Valley and pouring in resources will automatically unlock innovation. But like the failed collaboration initiative, the success of an innovation outpost hinges on understanding and prioritizing the “humanics” – the right people, the right mindset, and the right cultural integration – much like John Dunbar learning to “dance with wolves.”
Cultivating the Right Humanics: People and Mindset
Dunbar’s acceptance by the Lakota Sioux was not a result of imposing his ways but of genuine cultural immersion. He learned their language, respected their customs, and sought to understand their perspective. This analogy is powerfully relevant to innovation outposts. An outpost staffed with individuals who fail to embrace the local innovation culture is unlikely to succeed.
Too often, outposts are populated by executives or high-potential employees from the corporate headquarters who struggle to adapt to the fast-paced, risk-tolerant, and often unconventional culture of innovation hubs like Silicon Valley. Some may view the outpost assignment as a temporary perk, a “paycation,” or even a career detour, rather than a serious opportunity for growth and innovation. Placing individuals in outposts without careful consideration of their skills, personalities, and adaptability is a recipe for failure.
The ideal outpost team comprises individuals who are comfortable operating outside the traditional corporate norms. They are often the “enfants terribles,” the eccentric thinkers who might be challenging to manage within the rigid structures of the mothership. However, these are precisely the individuals who possess the mindset and drive to thrive in an innovation-focused environment. Identifying and empowering these unconventional talents is crucial for an outpost to truly flourish.
Avoiding the “Dumping Ground” Trap
While corporations might readily allocate financial resources to innovation outposts, they are often less willing to commit the necessary time, strategic focus, and genuine support. Innovation is frequently perceived as peripheral to the core mission, a “nice-to-have” rather than a “must-have.” This perception can lead to innovation initiatives being easily sidelined or cut when priorities shift or budgets tighten.
This lack of commitment can manifest in a detrimental practice: treating innovation outposts as “dumping grounds” for employees deemed marginal, underperforming, or simply misplaced within the organization. Imagine a scenario where a manager, unsure what to do with an employee who has plateaued or doesn’t quite fit into existing roles, sees the innovation outpost as a convenient solution. “Let’s send them to the outpost,” becomes a euphemism for “Let’s put them somewhere out of sight and mind.”
This “dumping ground” mentality undermines the outpost’s potential from the outset. It populates the team with individuals who may lack the passion, skills, or motivation to drive meaningful innovation. Instead of being a hub of creativity and forward-thinking, the outpost becomes a repository for misplaced personnel, further reinforcing the perception of innovation as non-essential and ultimately contributing to its failure.
The Accountability Void in Innovation
A significant challenge plaguing many innovation efforts, including outposts, is a lack of clear accountability. Unlike other business functions with defined metrics and targets, innovation work often operates in a nebulous zone. Individuals in innovation roles are rarely held to specific, measurable goals, and even when targets exist, accountability tends to be vaguely defined and inconsistently enforced.
This accountability void has several negative consequences. It can relegate innovation outposts to a “nice-to-have” status, lacking real impact or tangible outputs. It also allows leadership to avoid taking true ownership of innovation, as there’s no clear line of responsibility or expectation for results. Delivering inspirational keynotes on innovation to middle management, for example, might be well-received, but without concrete follow-up, defined accountabilities, and tough decisions, it remains just talk.
True innovation, especially transformational innovation, demands significant organizational change, a time-consuming and often uncomfortable undertaking. Without clear accountability and commitment from leadership, innovation outposts risk becoming performative gestures rather than engines of real transformation.
“Going Native”: A Double-Edged Sword
In Dances with Wolves, John Dunbar’s ultimate integration leads him to “go native,” fully embracing the Lakota way of life. For innovation outposts, “going native” can take a different, often unintended, turn. When outpost employees perceive their venture as a “non-core asset,” vulnerable to budget cuts or leadership changes, they may begin to detach from the mothership.
The most talented and adaptable outpost members, those who truly understand the local innovation ecosystem, are often headhunted by agile startups or forward-thinking established tech companies. These external entities recognize the value of outpost talent far more readily than the mothership itself. Paradoxically, the corporation might even be relieved to shed outpost employees from their books, failing to recognize their strategic importance until market disruptions or crises expose their innovation deficit.
Frustration is a common sentiment among departing outpost employees. They may leave to launch their own ventures, pursuing the very ideas they championed within the corporation but were unable to realize. Others become consultants, sharing their hard-earned outpost experience with other organizations, or they move from one corporate outpost to another, seeking a company that is truly ready to commit to innovation at both the humanic and mechanic levels.
The story of innovation outposts is often a story of untapped potential and missed opportunities. Learning to “dance with wolves” – to understand and embrace the humanics of innovation, to cultivate the right people and mindset, and to foster genuine accountability – is the key to transforming these ventures from costly experiments into valuable assets that drive real organizational growth and competitiveness.
