A Systems Approach — Changing Our Innovation Game and Mindsets

My innovation journey started decades ago. Two pivotal events influenced my view of the world and how important innovation could be for a better one: (1) a course on designing systemic change about the Why, the What and the How of making change happen, and (2) participating in a Rensselaer Polytechnic Institute (RPI)-led academic research project. Notably, this research started in 1995, spanned two decades and resulted in important findings about how to build a capability for adjacent and breakthrough innovation.

As the RPI researchers studied one of our venture investments, it also observed how our New Venture Development team at Nortel Networks (and Dupont) was organized and structured for innovation to select and govern our venture portfolio. These insights became the impetus to move the research from a project to system level. Almost 30 years ago, we built an innovation management system without knowing it.

Since 2001, we have worked with organizations to guide them in designing and implementing their innovation management systems. Our experiences, RPI’s pioneering research, and learning how to design for systemic change have been integral to helping organizations change their innovation game and mindsets by moving from a process-centric view to a more holistic, systems approach.

1. Understanding Innovation

"I was skeptical about developing standards for innovation management."

While a systems approach for innovation management was intuitive for me, I was skeptical about developing standards for innovation management. With many still skeptical today about standardizing 'innovation’, here’s how I embraced the value of innovation management standards.

The defining moment was distinguishing between innovation, innovation management and an innovation management system through the lens of ISO definitions as follows:

• Innovation: It is a “new or changed entity, realizing or redistributing value”. Innovation is an outcome, not the process of innovating.
• Innovation Management: This is how we go about managing innovations, considering innovation intent, strategies, structures, processes, etc. to make the innovations successful. It is also the reference term used for our profession.
• Innovation Management System: It is a “set of interrelated or interacting elements” that enable an organization to build and mature innovation capabilities.

The ISO definition of 'innovation' clarified that standards focus on the management systems enabling success, not the innovations themselves. It certainly made sense to apply standards at the system level.

2. Shared Perspectives

Magnus Karlsson and I have been drafting ISO standards together since 2018. However, our discussions started at least 5 years prior. These discussions sparked my interest in how an innovation management system standard could legitimize the discipline. Could we achieve the same success with innovation management as ISO standards did to elevate the quality and project management professions?

In Magnus’ feature, “Innovating Is Not Only an Option; It Is a Responsibility”, he has expertly described insights, challenges and the value of ISO 56001 for diverse stakeholders. My shared perspective is as follows:

1. Innovation Capability: The mindset shift to innovation as a capability is critical for innovation success.
   
   
   1. This requires moving beyond process to a system level thinking as well as patience, time and the right resources for a successful journey.
   2. Leadership commitment and engagement are essential to set direction and create a supportive environment by considering:
      
      
      1. The Why: Clarifying innovation intent and capacity to innovate.
      2. The What: Developing a purpose-driven innovation strategy and aligning objectives.
      3. The How: Building structures, resources, processes, etc. for the realization of value.
         
         
2. Common Language & Framework: A shared understanding of innovation can only be realized through a common language and framework so we can develop a global body of knowledge and legitimize the profession of innovation management.
3. Managing Uncertainty: This innovation management principle is key to differentiating our discipline from others. Mindsets and processes vary from incremental to breakthrough innovations. The innovation management system needs to adapt for these differences.
4. Integrating Management Systems: The jury is still out. Integrating an emergent innovation management system with mature operational systems poses significant challenges, especially in operations-dominated organizations. While auditors are skilled in areas such as quality and project management, innovation management is uncharted territory. Learning how to expertly audit practices specific to innovation management is now a priority.

3. The Role of ISO 56001 in Corporate Innovation

As organizations explore the potential of ISO 56001, the findings of the 2025 State of Corporate Innovation report reveal critical trends in innovation management. Over 75% of respondents plan to align with the standard within 36 months or are interested, signaling its growing recognition as a valuable framework. However, the report also reveals a pressing challenge: many organizations prioritize execution over building robust innovation capabilities—a trade-off that often undermines long-term success. This underscores the need for a systemic approach, as outlined in the principles of ISO 56001.

Efforts often lean toward “executing innovation through concrete actions” rather than addressing the strategic elements that enable sustainable success. Missing from many organizations are clear innovation intents, actionable strategies, defined roles and mandates, adequate resources, and the right processes and metrics. To overcome these gaps, organizations must embrace a strategic, forward-looking mindset—one that prioritizes capability building over a narrow focus on execution and shifts away from the process-centric views of today.

"Efforts often lean toward executing innovation through concrete actions rather than addressing the strategic elements that enable sustainable success."

4. The Game Changing Mindset

Changing the game begins with leadership’s commitment of ensuring the right elements of the innovation management system are in place for building innovation capabilities. The first step is a call-to-action to make this a strategic priority. Here are ten key questions to guide this discussion:

Context of the Organization: Why and What

1. Why would building an innovation capability be important for our organization and what are the external and internal conditions that influence this?
2. Who are our key stakeholders and what do they expect?
3. What is our organizational capacity and appetite for innovation, especially our ability to embrace uncertainty?
4. What is our innovation intent or ambition for contributing to the purpose and strategic direction of the organization?
5. What could be our areas of opportunity in which to invest?
6. What is the scope of our innovation management system, considering the boundaries of what is included or not in terms of innovation types, processes, functions, structures, locations, etc.?
   
   

"Innovation success hinges on leadership’s ability to shift from a process-centric view to a systems approach."

Leadership: What and How

1. What is the commitment of top management to be accountable for the governance and success of the innovation management system?
2. What is our innovation strategy and how do we make it actionable to provide direction for our innovation initiatives, including allocating the right resources at the right time?
3. How do we look beyond traditional key performance indicators (KPIs) to set the right decision-making criteria and measures of success for different levels of innovation uncertainty and maturity?
4.  How do we develop a common language to align our understanding of innovation and create the right culture for innovations to flourish?