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Businesses, like individuals, either grow or decline - there's rarely a middle ground of comfortable stagnation. This reality explains why many business owners lose their enthusiasm; when growth stalls, motivation plummets.
Creating a culture of continuous innovation is the antidote to this stagnation. When Sir David Brailsford took over the underperforming British Cycling team, he applied a "marginal gains" philosophy that transformed them into world champions, winning 7 out of 10 available gold medals at the 2012 Olympics.
His secret wasn't a radical breakthrough but rather dozens of tiny 1% improvements: spraying alcohol on tires for better grip, using inflatable leg warmers between races, designing custom aerodynamic helmets, creating sweat-resistant clothing, and ensuring athletes slept on the same mattress at every location. No single change made a dramatic difference, but together, they created an overwhelming competitive advantage.
The same principle applies to your business. As businesses evolve through their lifecycle - from survival mode to growth phase to maturity - the need for continuous innovation remains constant. Even mature businesses that appear to have "made it" can quickly slide into decline without regular rejuvenation through innovation.
Apple exemplifies this concept. When Steve Jobs returned to a struggling Apple, he didn't make incremental improvements to existing products. He focused on dramatic innovation - introducing the iPod, iPhone, iPad, and iTunes - which transformed Apple from a computer company on life support into the world's most valuable corporation.
To implement the Game of Gains in your business:
Create a Learning Library: Encourage team members to read business and personal development books by offering incentives like pay increases for every five books read (capped at one raise per year). Require brief reports on how concepts from each book could benefit your business.
Implement "Work on the Business" Time: Set aside dedicated time (e.g., one hour monthly) for team members to develop improvement ideas, similar to Google's approach that produced innovations like Gmail and Google Maps.
Hold Monthly "Energy Meetings": Conduct focused sessions on improving specific areas of your business. Rotate through 12 different themes annually.
Apply the 10% Improvement Framework: In your annual planning, ask how you can improve each part of your process by just 10% in terms of:
1. Impact (effectiveness)
2. Profit (revenue)
3. Efficiency (speed)
When you make 10% improvements across multiple stages of your business process, the results compound dramatically. A 10% improvement at each stage of a six-step process doesn't yield just 60% better results - it can produce an 80% or greater overall improvement due to compounding effects.
By creating systems that encourage everyone in your organization to contribute improvement ideas, you'll build a team of entrepreneurial thinkers who feel valued and engaged. You'll satisfy the fundamental human need for growth while continuously revitalizing your business.
Remember that innovation doesn't have to mean dramatic reinvention. Often, it's the accumulation of small, thoughtful changes that transforms ordinary businesses into extraordinary ones.
