Get out of the innovation dead end: More courage - less risk aversion and perfection
Do you know that feeling? A team is sitting together. The atmosphere is tense, the budget is gone, people are missing, and deadlines are looming. Everyone's talking about what can't be done. The list of limitations grows longer and longer. You're stuck in an innovation dead end. In the end, the frustration is greater than before, and you schedule a follow-up meeting because you haven't made any progress.
I experience this so often, and of course, the same starting point exists in Japanese teams as well. The difference often lies in a single moment: the point at which someone shifts their perspective. In Japan, I learned something very early on that has stayed with me to this day: Frustration isn't allowed to take over. But it is given space, and anyone who wants to can say what's currently limiting them. The statements are objective and describe observations, feelings, or facts. You don't get lost in emotions. That's important. And then the switch is flipped: "Okay, so this is how it is. And what exactly can we do now within this scope of action?" If you can't change the situation, you have to look for alternative paths, ideas, even if they are very small and incomplete.
I call this shift the "creator's perspective ." It's both calming and empowering. Because you suddenly realize:
In a project context, you always have an option. Always! Even if it´s a small one .
The innovation dead end as a real problem for SMEs?
I observe the same pattern quite often. Many people invest an enormous amount of time and energy to present the most perfect solution possible on the first attempt. A detailed PowerPoint presentation. A meticulously crafted document. They want to make a good impression, are afraid of criticism, and overlook how important feedback is in this early phase – and how unimportant perfection is.
At T-Systems MMS, we called this the "curse of the big A." A pitch follows the logic of N-Need, A-Approach, B-Benefits, C-Competition. And yet, many pitchers immediately focus on the approach. They should start with the need and the benefits.
Perfectionism is a huge obstacle. Then there's that phrase I hear so often: "If only we had the budget... if only we had the people... if only we had the time..." Behind this lies the expectation: "Have – Do – Be." First, we want everything sorted and ready, then we get started, and then we'll succeed. And this exact sequence leads to a dead end.
It would be better to think: "We plan as if we have all the options. Often you have nothing to lose. And if you wait for the perfect conditions, it usually never works out."
The KfW figures show just how tight the competition really is: Only 41 percent of medium-sized companies produced at least one innovation between 2022 and 2024. For very small businesses with fewer than five employees, the figure was even lower at just 37 percent. Among larger medium-sized companies with more than 50 employees, the proportion was 73 percent.
And the fascinating thing is: the vast majority of these innovations don't even originate in in-house research departments. Only three percent of medium-sized companies conduct their own continuous R&D.
(Source: KfW Research, Innovation Report SMEs 2025 / Press release dated March 4, 2026).
Text: Title "Innovation rate in German middle sized companies, 2022-24, at least one innovation in the past3 years", left 37% small companies, less than 5 employees, middle 41% all SMe, right73% bigger companies, more than 50 employees
However, the broader OECD definition of innovation was used here: Relevant innovations include product, process, organizational, or marketing innovations that are new to the company. This means that if something was new to the company itself, it was already considered an innovation.
In addition, there are the “organizational problems” which 24% of the companies surveyed in the ZEW/Mannheim Innovation Panel cite as an obstacle.
The CEO`s perspective
Day-to-day business is eating up the future.
Owners and managing directors are deeply involved in operational tasks. Time for new ideas doesn't just appear "sometime"; it gets pushed aside. Studies on SMEs describe this as a classic bottleneck: strong involvement in day-to-day business, a lack of freedom, and a lack of methodological knowledge for idea development and project management.
The leader is often the bottleneck.
In small businesses, innovation is driven by people, not processes. Only 3% of German SMEs have their own continuous R&D. If the owner lacks the right mindset or the time, innovation remains a matter of chance. And I'll add: a 41% innovation rate, but only 3% with continuous R&D? This means that innovation usually arises in everyday work, not in a laboratory.
Playing it safe beats trying things out.
Perfection appears to be meticulousness, but is often simply a way of avoiding decisions. Another round of revisions, another presentation, another co-signature. As long as unfinished ideas are seen as a risk, nothing gets put forward.
Innovation is not the target.
Anything not included in goals, KPIs, and weekly planning loses out to revenue, delivery dates, and staffing shortages. For management, this is rational: the quarter counts now, the experiment later.
The employee´s perspective
No space for unfinished ideas.
Anyone who voices an idea and immediately hears "But..." and a list of objections quickly learns: I can't achieve anything here anyway. Without interest and a culture of feedback, creativity remains just an idea.
Fear of making mistakes and being exposed.
Fear of making mistakes leads people to choose tried-and-tested tasks, avoid risks, or cover up errors. In such an environment, one quickly learns: better to keep quiet. A constructive approach to mistakes is a key success factor in innovative SMEs.
Lack of time and the feeling that innovation is "extra".
In a survey of skilled workers (Avantgarde Experts, 2024, link below), employees cited the following as obstacles to innovation: rigid structures (39%), lack of budget (33%), and lack of time in daily business (31%). Only 27% of skilled workers felt well-informed about innovations within their own company, compared to 40% of managers. The message often doesn't get through to lower management.
No permission to contribute to someone else's ideas.
When ideas remain the "propriety" of someone ("this is my solution"), others don't identify with them. Then no one invests time, but it always takes a team with diverse perspectives to successfully advance an idea. See the "apartment analogy" below.
In summary, the main reasons for the innovation dead end are:
💡Tip: Rephrase the obstacles into positive actions that fit your organization!
level | A typical dead end in everyday life |
Time | Operational business always takes priority. |
attitude | Perfection before feedback; "Have it, then do it" |
guide | GF controls everything itself, does not delegate experiments. |
culture | Mistakes = weakness; unfinished ideas = unprofessional |
organization | No fixed, easily accessible place for ideas |
communication | Employees don't know where innovation is desired. |
Incentives | Those who deliver finished products are rewarded – those who test bear the risk. |
True innovation comes from everyday life. Precisely where the pressure is greatest.
For me, innovative strength therefore means something different than large budgets or spare capacity. It means the ability to act as if a willingness to experiment were a given, even with limited resources and a shortage of skilled workers. And it means constantly seeking new paths. That is precisely what constitutes future viability.
Innovation begins with being – not with having.
Here's a thought that has greatly influenced me personally and that many know from the Law of Attraction:
The effective sequence is Being – Doing – Having (and not Having – Doing – Being).
This means: you already act as if creativity and openness were natural and normal throughout the company. Then you take small steps. And gradually, the desired conditions are created.
Those who wait for perfect conditions usually wait forever. Developing a can-do attitude doesn't cost much money or significant resources. It primarily requires the courage to start imperfectly.
Innovation cannot be mandated. It begins where people behave as if creativity and a spirit of experimentation were a matter of course.
How you can implement this in the everyday life of a small business
Innovation doesn't begin with big projects. It begins with an attitude and a few simple, repeatable things.
First, you need a shared understanding...
Before teams get creative, clarify two questions:
What do we mean by innovation here ? (Don't set the bar too high in order to remain realistic and motivated: Not a groundbreaking world first, but anything that is new or improved for us.)
Where do we need to work in a legally compliant and precise manner? And where exactly do we have deliberate creative freedom?
This clarity takes a huge amount of pressure off. Otherwise, many people don't dare to express their ideas because they're afraid of saying something "wrong".
See also my blog post: What is innovation and why is a clear definition important?
...then: Have the courage to leave gaps and apply the Pareto rule - 80% is enough
Perfection is not only unnecessary in the idea phase, it is harmful!
With 20 percent of the effort, you can often achieve 80 percent of the impact. An unfinished idea that gets shared is more valuable than a meticulously crafted idea that no one needs. And this includes benevolent tolerance. If someone says something half-baked, the reaction should be interest rather than immediate criticism. This signals: Imperfection is allowed here. We learn from mistakes, and we must be able and allowed to correct them quickly.
Leadership must be courageous and able to share
Overly cautious leaders stifle dynamism and damage company culture. Risk avoidance through endless rounds of approvals is a sign of insecurity. It stifles any spirit of innovation and slows progress.
Being able to deal with uncertainty , i.e., to make responsible yet dynamic decisions under uncertainty, is a key skill for successful innovation. Leaders who have the courage to do so own the future!
Perfection used to be considered a mark of quality. Today it is often a competitive disadvantage. (Boris Nannt)
Imagine you're moving into a new apartment. The landlord doesn't allow any changes; everything has to stay exactly as it is. How does that make you feel? Can you make this apartment your own? Or are you just a guest? Do you take care of the broken window handles? Or do you leave them to their fate? It's exactly the same with ideas. Do you want others to participate? Then let go of your ideas, even if they're not "finished" yet! Allow others to work on your ideas, to make parts of them their own! Especially if you're a leader. Otherwise, no one will be willing to invest in them, because the ideas and projects will never truly become theirs, and there's no sense of identification. (Thank you, dear Christina Flehr , for this beautiful analogy!)
Set small steps with deadlines
Working on ideas shouldn't be a bottomless pit. It shouldn't be a game.
Define small steps that can be achieved within a short timeframe, such as a few weeks to a maximum of a few months, to evaluate the ideas or move the project forward. Define hypotheses that need to be proven or disproven. The Pareto principle applies here as well. Adjustments or changes of direction must be possible at any time.
This approach, in which only the next few steps are defined in more detail at any given time, makes it easier to make structured progress with uncertain, nebulous topics.
Five low-threshold formats for daily business
Ideas need to be shared – and in an uncomplicated way. People want to find a space where their ideas are received, accepted, valued, and nurtured.
A simple digital repository (SharePoint, Confluence, or a shared folder) where ideas can be stored unsorted and unfinished. Even better if this can be done with just a few clicks or even via voice input and AI support.
And non-digital formats : an idea board in the kitchen corner, an open notebook by the coffee machine, idea notes in a box.
Or my favorite: the coffee talk: 20 minutes , standing, coffee in hand, open question, no pressure to find a solution. Simply exchanging thoughts.
Cultivate a proactive mindset : Briefly acknowledge frustration in meetings, then consciously shift focus. "What can we try now with what we have?" At the beginning of workshops and meetings, consciously reduce the pressure and clearly state: "Today, the goal is simply to exchange ideas, not yet to find solutions." I consistently observe that teams become noticeably more open and productive as a result.
Once a week, 30 minutes of mini-experiment time . Everyone can try something small, without much announcement. Mistakes and learning moments are normalized: "What did we try this week that didn't work, and what can we take away from it?"
The formats must be accessible and uncomplicated. They are most effective when leaders themselves share unfinished ideas and say aloud: "This hasn't been thought through yet, but I'm going to bring it up anyway." That's true courage to embrace imperfection.
First be , then do , then have - What exactly is your investment?
Your investment – and everyone's investment – is primarily a small amount of time on a regular basis. And that over a period of several months. Can you do that?
Impatience and pressure have no place here.
You'll see: the moment everyone starts to see 20-minute coffee chats or mini-experiments as "normal," the ideas will start flowing, gradually taking shape and becoming more concrete. And then you'll be on your innovation project faster than you ever imagined.
Your next small step
Innovation doesn't begin when the framework conditions are finally right. It begins where people already behave as if a spirit of experimentation and creativity were a given.
Try it out. Over the next seven days, start a short coffee break with your team or with two colleagues. Just take 20 minutes, ask an open-ended question, and consciously shift into a creator´s mindset.
And then please write a comment about what happened. I'm really curious.
If you want to read more on this topic:
An article by Boris Nannt, definitely worth reading! 2 rules for more speed: How to make your company faster - Business Inside
Barriers to Innovation in Medium-Sized Enterprises | KfW (with download link to the study)
EFI press release on the 2026 annual report: Bureaucracy and skills shortage hamper innovation in medium-sized businesses: https://www.e-fi.de/fileadmin/Assets/Pressemitteilungen/2026/PM_Mittelstand_2026.pdf
Dr. Babette Sonntag is an innovation manager, keynote speaker, and "The Innonaut." She helps managers in medium-sized businesses who want to initiate something new but are stuck, using Japanese spirit as a boost. 👉 dieinnonautin.de | LinkedIn
Please note: This text is translated into English by using Wix Translation and DeepL- I apologize for any mistakes in this text I may have overlooked.
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