A common problem in the business world is when organizations become too risk averse. Fear of significant financial losses (particularly during periods of economic uncertainty) can cause leaders to stick with what they've done before and what seems like the "safest" option.
In reality, however, businesses that fail to push boundaries often end up getting left behind by their competitors. The best leaders aren't afraid to challenge the status quo in a strategic manner, whether optimizing their internal operations or striving to lead an industry-level change in thinking.
With this in mind, I recently spoke with Dr. Maksim Sonin, who has been leading an innovative and first-of-its-kind industrial facilities development, about his own experiences in pushing boundaries and his insights in how other leaders can successfully open up new horizons in their own fields.
Why Pushing Boundaries Is Essential
"Many industries, such as the energy industry that I specialize in, are incredibly risk-averse," Sonin notes. "For example, I led projects that helped industrial plants for fertilizer production scale by nearly a third and ammonia production scale to twice the size of the biggest plants that had previously been built. At the time, this level of scaling was considered too great a risk. But by being proactive, decisive and innovative, our team was able to develop an effective solution that ultimately pushed the entire industry forward. After the initial success, we've seen others try to replicate what we've done."
Of course, while those who push boundaries take on greater risks than those who follow or choose to remain stagnant, the potential rewards also exist at a much greater scale. These efforts can create a new status quo and new ways to create value. It can enable organizations to better respond to other technology changes and business methods.
In reality, pushing boundaries isn't just about trying new ideas. It's about creating an environment that will help your organization thrive in the long run.
1. Commit to a Long-Term Strategic Vision
The first key to successfully pushing boundaries, Sonin argues, is committing to a long-term strategic vision. "Our efforts to scale industrial plants is guided by our goal to drive a sustainable energy transition and bolster food security," Sonin explains.
"This vision is crucial because it plays a key role in all of our decision-making. Most notably, it encourages us to innovate and take risks because it helps us readily identify areas where current practices aren't serving that long-term goal. Focusing on our desired long-term outcomes rather than potential short-term risks allows us to do more."
Sonin's sentiments echo research from the Harvard Business Review that found that hierarchal organizations often become risk-averse because lower level managers were held overly accountable for short-term outcomes, particularly when projects failed.
This creates cultures where managers rarely push boundaries because they don't want to risk their careers. A shift to the long-term view in terms of strategy and consequences can help alleviate such concerns.
2. Build a Positive, Collaborative Team Culture
Developing a long-term vision plays a key role in building a team culture that supports — rather than resists — the idea of pushing boundaries. "A positive, collaborative team culture is essential if you want to maximize your potential for innovation," Sonin says.
"Leaders can set the example by creating an environment where everyone is open to learning from each other, and by consistently inviting feedback from all within the organization. Some organizations can even benefit from training or coaching programs that encourage team members to overcome fear of change and to whole-heartedly embrace the idea of becoming innovators."
By bringing together the input of individuals with different industry backgrounds, areas of study, career status and other traits, organizations gain access to a broader range of perspectives. This helps limit homogenous thinking that would be more resistant to change.
3. Identify Processes and Tools to Reduce Risk
While leaders can never fully eliminate risk when pushing boundaries, Sonin notes that they can reduce their own fear — and increase the likelihood for success — when they identify processes and tools that help reduce risk.
"While no two organizations are exactly alike, leaders in any industry should regularly evaluate their processes and technology to determine what will help them reduce risk associated with innovation efforts," Sonin advises.
"For example, a shift to agile development or using tools that help you quantify the risk associated with different actions can make all the difference in helping an organization pivot as part of its efforts to innovate or respond to other industry changes. As you optimize your processes and technology, you can reduce the potential negative outcomes of failure and as a result become more inclined to experiment in meaningful ways."
Go Beyond Existing Boundaries
As Sonin's insights reveal, pushing boundaries is an essential driver of innovation — but such efforts are often met with a fair amount of resistance. However, when leaders begin their efforts with a well thought-out strategic vision, enhance it with a team culture that promotes collaboration and innovative thinking and also develop processes to reduce risk, they can push boundaries and innovate in a sustainable manner that gains organizational buy-in.
As leaders go beyond the status quo, they can build a legacy for themselves and move their entire industry forward.
