Frank Mattes

Senior managers, One-third of your strategic growth initiatives may be ticking time bombs.

Let that sink in.
You green-light initiatives. Assign budgets. Expect results.
But behind the slide decks and optimistic roadmaps... something’s off.

Recently, I sat down with 15+ CxOs. We ran a deep dive into their active growth portfolios. The exercise? Classify initiatives and test for hidden risk.
Using the “Growth At The Edge Of Core” lens, built on the proven Lean Scaleup framework.

Here’s what we found:
33% of their so-called “core” initiatives weren’t really “core.”

They looked executable.
But underneath? Major strategic uncertainty.
Uncertainty about customer behavior.
Uncertainty about capabilities.
Uncertainty about the changes to the business and operating model itself.

Let me put that differently:
You may be treating innovation bets as operational projects.
And that, respectfully, is where your growth initiatives will flame out.

Why it matters?
Your revenue targets depend on these bets.
Budget waste at this level compounds fast.
Your credibility is tied to execution success.

If the logic is wrong — execution logic for an innovation-type problem — then the race is already lost at the start.

So here’s your move:
Before you invest more resources...
Before your Board starts asking questions...
Check your growth initiative portfolio for hidden risk.

Get our free Growth Risk Checklist (Corporate practitioners only). Simply DM me.
It’s short. Sharp.
And built for you.
See what’s hiding in plain sight — before it costs you.

Here are six "watch-outs" that senior managers should keep in mind to ensure the success of out-of-the-box innovation:

Recognize that "out-of-the-box" innovation is a distinct discipline that requires different approaches than incremental innovation.

Specifically, new businesses need to be supported through the "white space" between validation and becoming a substantial business line. This requires different metrics for judging progress, funding mechanisms that acknowledge a high degree of uncertainty, and a different organizational paradigm than the rest of the company.

Establish a clear innovation mandate and communicate it consistently.

Senior managers should not only talk about the importance of innovation, they should actively invest in it, even at the expense of their own short-term performance and readily available metrics. Otherwise, middle managers and staff will likely prioritize the day-to-day business.

Define and communicate "meaningful search fields," which are areas where out-of-the-box innovation is desired and areas where it is not.

This will provide direction and guardrails for teams tasked with coming up with new business ideas. Without such direction, there is a danger of generating ideas that are not aligned with the overall business and/or overlooking promising opportunities.

Understand and accept the inherent uncertainty of out-of-the-box innovation.

Not all innovative ideas will be successful, but failures should be viewed as learning opportunities, not black marks against the people involved. Senior managers should actively work to protect those involved in innovation from negative repercussions within the company arising from these inevitable failures.

Put your skin in the game, provide dedicated funding and resources for out-of-the-box innovation and protect them.

Just as importantly, senior managers should recognize that people are watching closely if Senior Management walks the talk and people are a key resource and not assume that Core teams will naturally prioritize innovation over their day-to-day responsibilities.

Recognize that success in out-of-the-box innovation likely means changing the company's identity and that this can be psychologically difficult for those who have had long careers in the existing business.

Building a new business is not a side project: it may eventually become the main thing. Different types of people are needed for different stages of innovation, from coming up with ideas to validating them to scaling them up into successful businesses. A "one-company" mindset that bridges the gap between the existing business and the NEW is crucial. This requires an understanding of the different operating models and metrics used by each and clear communication of the overall goals and vision for the company.

(More details and ideas on how to operationalize thes itesm are in my new book, https://www.leanscaleup.com/book)