Innovation projects mostly fail – here is the why!

by Finn Majlergaard | 9. Feb, 2025 | Blog

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 In most surveys covering strategic priorities, innovation usually comes in among the top three priorities. Yet, most innovation projects fail to succeed. In this article, I will explain why that is and what we can do to make innovation more successful.

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Why is innovation crucial for an organisation's long-term survival?

There is an American saying that goes: "If it ain't broken, don't fix it". The idea is that we should only spend resources on things that don't work. In today's world, that is a very dangerous strategy to pursue. How do you remain relevant for your customers in a world where your product or services can be copied in no time? Innovation will be an obvious answer and that is why organisations are forced to innovate despite the risks. And therefore, most companies are spending a lot of resources on developing their products and services in fierce competition with their closest competitors.

Innovation is risky but necessary

It is a constant, risky and expensive race for staying ahead of the game. It is also a necessary game to participate in if you want to survive. Unfortunately, a lot of organisations don't have the culture that enables them to innovate in a way that makes it difficult for competition to catch up.

But it can be learned, and that is what Gugin teaches companies to do. We combine our cultural intelligence expertise with state of the art innovation training. This way we develop teams and managers who can facilitate and lead innovation projects across the organisation's value chain. 

Innovate along your entire value chain instead of focusing only on the product or service

What is the point in having a state of the art product if your brand is bad or the service around your product is poor? Or if your product is great but it takes forever getting to the customers?

There are 10 areas where you can innovate + the glue the ties everything together, namely your corporate culture

The 10 areas where you can innovate along your value chain

Below are 10 areas you can innovate on to create a competitive advantage and leverage over your competitors

  1. The profit model - How do you make money?
  2. How do you connect with others to create value for your customers?
  3. How do you organise your talents and assets?
  4. What are your core competences and methods?
  5. What are the unique features and functionality of your product or service?
  6. Which addidional products can you develop around your core product or service?
  7. Which services can you develop to increase the value of your product?
  8. How do you sell and distribute your product?
  9. What is your brand value?
  10. How do you engage with customers through out the lifecycle of the relationship?

For an innovation project to make a significant difference, it should contain at least 3 of the 1o elements mentioned above. The more elements you include the more you gain and the more difficult it is for your competitors to copy. Just look at Amazon. No matter what you think of the company you must admit that they have been good at disrupting and innovating along their entire value chain. and even beyond it.
As innovating across different parts of the value chain might seem like the obvious thing to do it is also very difficult.
It is difficult because you have to innovate across different subcultures within the same company. Think about your own company. How good are you at communicating and developing ideas between product development, sales, IT, HR and legal departments? Chances are that you are not that good. Often, the reality is that internal positioning is more important than winning new customers or create something unique.

Innovastion across cultures - Gugin

Cultural Intelligence is necessary for a succerssful innovation culture

So if you want to become successful at innovating across your value chain you need to have a high level of cultural intelligence in your organisation, that enables you to successfully create bridges between the different subcultures within your company. otherwise your innovation will die. A common, high level of cultural intelligence is crucial for so many activities in the organisation, not just innovation. That is why we usually start an engagement with an assessment of the current level of cultural intelligence. When assessed we train the organisation so that everybody is on the same level and with a common understanding of what cultural intelligence is and how to use it in daily life, independently of where you are in the organisation.
When that is in place we can start teaching how to innovate successfully by leveraging cultural diversity.

You innovation initiatives will on become successful if you can innovate across cultural boundaries

You cannot innovate across different subcultures within your organisation if you don't know how to bridge between the different subcultures within your organisation.

Gugin can help you develop these necessary skills and our innovation workshops integrate cultural intelligence training and innovation training.

Learn more about the innovation workshop It is delivdered anywhere in the world and we customise it your needs. We also have dedicated training programs for aviation and healthcare. Learn more about innovation in the healthcare sector

 

 

 

 

Dr Finn Majlergaard
Dr Finn Majlergaard

CEO Gugin, Professor, Author, Keynote Speaker, Author

  • We align your corporate culture with your strategy.
  • We take you safely through major changes in your organisation.
  • We develop the crucial cultural intelligence in your organisation by training your employees and leaders
  • We help you develop a competitive advantage with a unique corporate culture

Gugin has helped more than 600 companies around the world creating a winning corporate culture.

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What separates a good leader from one who truly moves people? Research — and decades of cultural intelligence practice — point to one word: charisma. And unlike talent, charisma can be learned.

In 1979, Warner Records refused to send Prince on tour. Not because of his music — they knew he was exceptional — but because he lacked charisma. He couldn't yet move an audience. Fast forward one year, and Prince had transformed himself into one of the most commanding performers in the history of popular music. He didn't wait for charisma to arrive. He worked at it, systematically, studying and adopting the techniques of the performers he admired.

That story is not just about rock and roll. It is a precise metaphor for leadership. At Gugin, we have spent over two decades helping leaders across cultures and industries make exactly this kind of transformation — not by telling them to "be more confident," but by equipping them with concrete, learnable strategies rooted in emotional intelligence, cultural intelligence, and communication science.

 

Why Most Charisma Advice Fails

The most common advice leaders receive about charisma is frustratingly vague: project confidence, be warm, be present. These qualities do matter. But they are nearly impossible to "just do" on command, especially under pressure, across cultures, or in unfamiliar organisational contexts.

Research by Professor John Antonakis and his colleagues at the University of Lausanne Business School has shown that charisma is not a personality trait reserved for the few — it is a set of communicative behaviours that can be identified, taught, and practised. In their studies, randomly selected middle managers who underwent structured charisma training were subsequently rated by peers and subordinates as more charismatic, more competent, and more trustworthy. The training worked.

At Gugin, we have built on this science and gone further — weaving it together with emotional intelligence (EQ) and cultural intelligence (CQ) to create a leadership development approach that is both evidence-based and globally applicable.

The Nine Charismatic Behaviours — And What They Really Require

The Antonakis research identifies nine concrete charismatic leadership tactics: using metaphors and stories, showing moral conviction, expressing shared feelings, setting high expectations, using contrast and rhetorical questions, using lists, and animating communication with body language. These are the building blocks. But building blocks need a foundation — and that foundation is emotional and cultural intelligence.

Take metaphors, for example. A metaphor is only powerful if it resonates with the audience. In Gugin's cross-cultural leadership programmes, leaders quickly discover that a metaphor drawn from American sports culture may fall flat in a team from Northern Europe, and that a story invoking individual heroism may alienate a collectivist audience in East Asia. The charismatic tactic is the same; the cultural calibration is everything.

The same applies to moral conviction. Appealing to shared values is one of the most potent charismatic tools a leader has. But whose values? Which moral frameworks? A leader operating across multiple cultural contexts must understand that concepts like fairness, loyalty, duty, and hierarchy carry profoundly different weight in different cultures. High cultural intelligence — the ability to read, respect, and adapt to cultural difference — is what allows a leader to express genuine moral conviction that actually connects rather than alienates.

Emotional Intelligence: The Inner Architecture of Charisma

Charisma without emotional grounding is performance. It can work in the short term, but it rarely sustains trust. The leaders Gugin works with are taught to understand that emotional intelligence is not a soft supplement to charismatic leadership — it is its inner architecture.

Consider the tactic of expressing shared feelings. Antonakis identifies this as key: when a leader says "I feel the same uncertainty you do, and here is how I am holding it," they build identification and trust. But this requires real self-awareness. Leaders must be able to name and regulate their own emotional states before they can credibly reflect the emotions of others. In Gugin's programmes, we invest significant time in developing exactly this capacity — helping leaders identify their emotional triggers, understand how their inner states broadcast outward, and build the emotional vocabulary needed to communicate with authenticity.

Empathy — a core dimension of emotional intelligence — also directly underpins several charismatic behaviours. Setting high expectations while simultaneously communicating belief in others (another of the Antonakis tactics) requires a leader who genuinely sees the potential in the people around them. That kind of seeing is empathic. It cannot be faked over time. When Prince produced the band The Time for Warner Brothers, he did not simply demand excellence — he made each member believe they were capable of more than they thought. That is emotionally intelligent leadership in action.

Cultural Intelligence: Charisma That Travels

One of the most important — and most overlooked — dimensions of charismatic leadership in today's world is its cultural portability. A leader who is magnetic in one cultural context may be perceived as arrogant, shallow, or inappropriate in another. This is not a flaw in those audiences. It is a signal that charisma, like all communication, is culturally embedded.

Gugin's work in over 60 countries has shown us that the nine charismatic tactics are universal in their structure but must be culturally adapted in their expression. Rhetorical questions, for instance, invite participation and create anticipation — but their delivery must match the power-distance norms of the audience. In high-hierarchy cultures, a rhetorical question from a senior leader may silence a room rather than energise it. In low-hierarchy cultures, it may spark exactly the engagement intended. Cultural intelligence tells the leader which dynamic they are working in, and how to adjust.

Similarly, the use of storytelling — one of the most powerful charismatic tools — varies enormously across cultures in terms of what stories are appropriate, how direct or indirect they should be, and what kinds of protagonists resonate. Gugin teaches leaders to build a culturally diverse repertoire of stories and to develop the sensitivity to know which story belongs in which room.

How Gugin Trains Charismatic Leaders

Gugin's leadership development programmes integrate the science of charismatic communication with structured development in emotional and cultural intelligence. The process is iterative and experiential, not theoretical.

Leaders begin by gaining honest self-awareness: understanding how they are currently perceived, what emotional signals they project under pressure, and how their default communication style reads across cultures. This foundation phase often surfaces important blind spots — the technically brilliant executive who speaks too abstractly to inspire, the empathetic manager whose conflict-avoidance reads as a lack of conviction.

From there, leaders move into skill-building: practising charismatic communication tactics in safe, structured environments with real feedback. They learn to craft metaphors that carry cultural resonance, to tell personal stories that build connection without oversharing, to use contrast and rhetorical structure to sharpen their message. They receive coaching on non-verbal communication — the body language, vocal variety, and presence that Antonakis identifies as essential to bringing charisma alive.

Finally, leaders apply these skills in live contexts, with coaching support, and receive 360-degree feedback that tracks their progress. This mirrors the approach Antonakis found to be effective — group training combined with individual coaching — and embeds it within the broader cultural and emotional intelligence framework that makes the development durable and globally relevant.

Charisma as a Leadership Responsibility

There is a deeper point worth making. Charisma is not about making yourself more impressive. At its best, it is about making others feel seen, energised, and capable of more than they believed. It is about communicating in a way that bridges difference, builds shared purpose, and creates the conditions for people to do their best work.

In a world where leaders must navigate unprecedented complexity — technological disruption, geopolitical volatility, multi-generational and multicultural workforces — the ability to communicate with clarity, conviction, and emotional resonance is not optional. It is a strategic capability.

Prince didn't work on his charisma because he wanted to be famous. He worked on it because he knew, instinctively, that the music mattered — and that without the ability to connect, the music would never reach the people it was meant for.

The same is true of leadership. The work matters. Charisma is what carries it across.

 

About Gugin  |  Gugin is a global advisory firm specialising in cultural and emotional intelligence. We help organisations build the leadership capability to thrive in a complex, multicultural world. Learn more at www.gugin.com

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