WORKING PAPER

8 Steps to Becoming an Innovation Powerhouse

By Steve Wunker and Dave Farber

Defining clear boundaries and strategic priorities that guide innovation efforts and focus energy where it matters most.

Creating a repeatable process for mapping opportunities, developing ideas, planning, and experimenting to minimize risk and accelerate learning.

Building a culture that supports bold thinking, celebrates experimentation, and equips teams with shared language, tools, and confidence to innovate every day.

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Summary

Innovating from the Inside Out: 8 Steps to Becoming an Innovation Powerhouse lays out a practical, repeatable approach for building innovation capabilities that stick. Drawing from years of work with organizations large and small, the paper breaks innovation into eight interconnected steps—four at the organizational level and four at the project level—each designed to align strategy, process, and culture. It challenges the myth of “innovation as brainstorming,” showing instead how disciplined structure, clear boundaries, and cultural reinforcement lead to sustained and scalable creativity that drives measurable business growth.

WORKING PAPER

Why Building Innovation Capabilities Matters

Innovation isn’t a side project—it’s the core skill that determines whether organizations evolve or fade. This section explains why building strong internal innovation capabilities matters more than chasing short-term wins. When companies rely solely on ad-hoc creativity, they eventually stall; when they invest in systems, processes, and culture that support innovation, they build engines for lasting growth. This working paper positions innovation as a deliberate, learnable capability that can be developed and scaled from within, helping companies adapt to constant change rather than react to it.

From that foundation, the paper highlights the essential building blocks that turn creativity into a repeatable system for growth:

Treat innovation as a structured discipline, not a one-time initiative.
Link innovation goals directly to strategic priorities and measurable results.
Develop repeatable systems and shared language to sustain progress.
Build cross-functional teams that connect insight to execution.
Follow the eight steps outlined in this paper to embed innovation into the organization’s DNA.

Step 1: Defining Your Innovation Boundaries

Step 2 Building an Innovation Plan

Step 3: Developing the Innovation Process

Step 4: Building a Culture of Innovation

Step 1: Defining Your Innovation Boundaries

Every successful innovation program starts with focus. Step 1 helps leaders draw the line between what innovation should explore and what it should avoid. Too many firms mistake open-ended creativity for opportunity, scattering effort and investment. By defining innovation boundaries early, companies can channel their energy into the right areas—aligned with strategy, resources, and market realities. Setting these limits doesn’t constrain imagination; it empowers teams to innovate where it truly matters. This clarity helps employees understand both the purpose of innovation and their role in achieving it.

Once these boundaries are clear, organizations can start focusing their creativity where it counts:

Establish a clear “why” for innovation that ties to long-term growth.
Define metrics and scope to keep projects focused and measurable.
Look beyond products—explore services, experiences, and business models.
Communicate how teams can participate to build a sense of ownership.
Use alignment as a strategic filter for which ideas move forward.

Step 1: Defining Your Innovation Boundaries

Step 2 Building an Innovation Plan

Step 3: Developing the Innovation Process

Step 4: Building a Culture of Innovation

Step 1: Defining Your Innovation Boundaries

Once these boundaries are clear, organizations can start focusing their creativity where it counts:

Establish a clear “why” for innovation that ties to long-term growth.
Define metrics and scope to keep projects focused and measurable.
Look beyond products—explore services, experiences, and business models.
Communicate how teams can participate to build a sense of ownership.
Use alignment as a strategic filter for which ideas move forward.

Step 1: Defining Your Innovation Boundaries

Step 2 Building an Innovation Plan

Step 4: Building a Culture of Innovation

Step 1: Defining Your Innovation Boundaries

Once these boundaries are clear, organizations can start focusing their creativity where it counts:

Establish a clear “why” for innovation that ties to long-term growth.
Define metrics and scope to keep projects focused and measurable.
Look beyond products—explore services, experiences, and business models.
Communicate how teams can participate to build a sense of ownership.
Use alignment as a strategic filter for which ideas move forward.

Step 1: Defining Your Innovation Boundaries

Step 2 Building an Innovation Plan

Step 3: Developing the Innovation Process

Step 4: Building a Culture of Innovation

Step 1: Defining Your Innovation Boundaries

Once these boundaries are clear, organizations can start focusing their creativity where it counts:

Establish a clear “why” for innovation that ties to long-term growth.
Define metrics and scope to keep projects focused and measurable.
Look beyond products—explore services, experiences, and business models.
Communicate how teams can participate to build a sense of ownership.
Use alignment as a strategic filter for which ideas move forward.

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About The Authors

Steve Wunker

FOUNDER & GLOBAL LEADER IN JOBS TO BE DONE

Steve pioneered JTBD alongside Clayton Christensen and has led innovation work worldwide. He authored Jobs to Be Done: A Roadmap for Customer-Centered Innovation and four other books, and his thinking appears regularly in publications such as Harvard Business Review, Forbes, and The Financial Times.

WORKING PAPER

8 Steps to Becoming an Innovation Powerhouse

By Steve Wunker and Dave Farber

Defining clear boundaries and strategic priorities that guide innovation efforts and focus energy where it matters most.

Creating a repeatable process for mapping opportunities, developing ideas, planning, and experimenting to minimize risk and accelerate learning.

Building a culture that supports bold thinking, celebrates experimentation, and equips teams with shared language, tools, and confidence to innovate every day.

Download File