Failure of Creativity & Innovation in Business

On the other side of the coin, once hugely successful companies have failed due to their lack of innovation and creativity. Below are a few examples.

• Eastern Airlines was a top four major airline with beginnings in the 1920s. It ceased all operations in 1991 after it failed to adapt to the Air Transportation Deregulation Act of 1978.
• Compaq was among the earliest and largest providers of personal computers in the world. The company ended in 2002 after its forced merger with Hewlett-Packard Corporation.
• WorldCom began in 1983 as Long Distance Discount Services. Instead of innovating, it resorted to a complex accounting scheme to maintain the appearance of viability until it succumbed in 2006.
• Blockbuster Video was founded in 1985 and was at one time the most recognizable brand in the video rental space. Unable to transition to digital, it went bankrupt in 2010 and was replaced by Netflix, Amazon and Hulu.

Effective leadership focuses on shortening the distance between the present and the future. Inspired leadership calls for more than putting talent and processes in place. It requires creating a culture of innovation and creativity where insight and action are part of the company’s DNA.