When your organization is under pressure, experiences rapid change, or there is an air of uncertainty, teams often default to maintaining the status quo. It feels safe. Familiar. Predictable. However, where disruption is constant and competitive advantage is fleeting, protecting the status quo is often the most dangerous move a team can make.
Innovation is no longer a nice-to-have, it’s essential. The most effective leaders, what we call 3rd leaders, don’t wait for ideal conditions to spark innovation. They intentionally build teams that are capable of adapting, experimenting, and moving forward, even when the path isn’t clear. The good news is that fostering innovation doesn’t require a huge budget or a formal lab. What it does require is the right mindset and consistent leadership behavior to make that mindset real.
Redefining Innovation for Your Team
When many people hear the word “innovation,” they think of cutting-edge technology or groundbreaking ideas. However, that narrow definition can actually hold teams back. Innovation can be defined more broadly as the ongoing practice of questioning how things are done and actively looking for better ways.
That means innovation can show up in small, meaningful ways, whether it's refining a process, testing a new meeting format, or piloting a different approach with a client. The leaders who drive innovation don’t wait for perfect ideas. Instead, they make continuous improvement part of the team’s DNA by normalizing curiosity and experimentation. One simple but powerful question to ask your team is:
“What’s one process or habit we’ve kept just because we’ve always done it that way?”
This kind of inquiry opens the door for fresh thinking and makes innovation more approachable for everyone.
Escaping the “Best Practices” Trap
Many organizations fall into the trap of relying too heavily on “best practices”, a term that, over time, can become synonymous with “don’t question this.” In fast-moving environments, what worked yesterday may not be what works today.
Leaders who foster innovation create space for challenge and reinvention. This can look like inviting the team to conduct a “reverse brainstorm” where they try to break a process to expose its weaknesses, or assigning a rotating team member to take on the role of constructive skeptic during strategy sessions. Asking questions like, “If we started this process today from scratch, what would we do differently?” helps surface blind spots and unlock better solutions. Creating a culture where even good systems are open to scrutiny ensures your team doesn’t just adapt to change, they anticipate it.
Lowering the Cost of Failure
Innovation often stalls not because teams lack ideas, but because they fear the consequences of failure. High-performing leaders understand that to foster real innovation, they must create a climate where testing, learning, and iteration are encouraged—even if results don’t materialize right away.
This doesn’t mean abandoning accountability. It means setting up experiments with clear boundaries and learning goals, so teams can take smart risks without fear of lasting damage. Consider time-boxed pilots, low-stakes test runs, or “learning logs” that help capture insight regardless of outcome. When teams know they won’t be punished for failed attempts, but will be rewarded for thoughtful experimentation, they’re more willing to bring bold, creative thinking to the table.
Connecting Innovation to Purpose
Innovation has the greatest impact when it's tied to meaningful objectives. If team members don’t see how new ideas link to their goals or to the company’s broader mission, they’re less likely to invest time and energy into trying something new.
That’s why 3rd leaders always bring their team back to purpose. They link innovation efforts directly to Team Key Results (TKRs) and clearly articulate how fresh approaches can move the needle on shared priorities.
Questions like:
- “Where might innovation help us move faster on our top priority?”
- “What unmet customer needs should we be solving?”
- “What roadblocks have we accepted as normal, but don’t have to?”
These types of prompts align creativity with execution, helping the team see innovation not as a side project but as a direct driver of progress.
Building a Rhythm of Reflection
Innovation isn’t just about idea generation, it’s about disciplined follow-through. High-performing teams build reflection into their regular rhythm, using it as a tool to assess what’s working, what’s not, and what to try next.
By closing the loop on experiments with questions like, “What did we try, what did we learn, and what should we do differently moving forward?” leaders help their teams internalize innovation as a continuous cycle of learning. Over time, this rhythm becomes part of the team’s muscle memory, enabling faster pivots and smarter decisions.
Make Innovation Part of Your Operating System
Innovation isn’t the job of a department, it’s a mindset and it’s one of the most important behaviors leaders can model and reinforce. When leaders lower the cost of failure, challenge default thinking, and keep innovation tied to purpose, they lay the groundwork for a truly adaptive culture. The key is consistency. Innovation doesn’t have to be big to be meaningful. It just has to be practiced and expected. If you're ready to help your team innovate with purpose, start by creating the conditions that make change possible. You don’t need to predict the future. You just need to help your team be ready to meet it.