A lot of studies have pointed out to how managers consider compliance regulations or similar restriction with resources as the main hurdles to properly developing business innovations. Common wisdom would have it that all constraints be removed. This belief though is fraught with inconsistencies. A lot of inventions and innovations have in fact prospered, when there were certain limitations. GE for example got successful with several of their developments, not in spite, but because of the limitations. Thus, managers must make use of constraints to the best of their abilities. They could limit inputs such as human capital, cash, time, material and funds. They could even enforce specific processes. Output requirements may also be set in stone. Overdoing of these too wouldn’t be beneficial as that would curb individual freedom to experiment. Thus, flexible constraints could help in creating the ideal innovation climate.

Source:https://hbr.org/2019/11/why-constraints-are-good-for-innovation

Uploaded Date:21 December 2019