Building the Bridge: Closing the Gap Between Strategy and Innovation, by Jonathan H. Westover, PhD

Abstract: This article explores the critical yet often overlooked connection between organizational strategy and innovation, drawing from fifteen years of management consulting experience across multiple industries. The author argues that while strategy and innovation are inherently interconnected concepts, they frequently operate in isolation within organizations, creating a disconnect that undermines both strategic effectiveness and innovative potential. Through analysis of academic literature and practical case studies, the article identifies the root causes of this separation—including structural silos, conflicting timeframes, and cultural differences—and offers a comprehensive framework for bridging this gap. The proposed solution involves developing shared strategic innovation mindsets, implementing specific organizational structures and processes that facilitate collaboration, and cultivating a culture that aligns innovative thinking with strategic priorities. With illustrative examples demonstrating successful integration in technology and retail sectors, the author presents a compelling case that organizations which effectively connect strategy and innovation will secure sustainable competitive advantage in today's rapidly evolving business landscape.

Episode Transcript

Building the Bridge (00:00):
Closing the Gap Between Strategy and Innovation Abstract

(00:11):
drawing from fifteen years of management consulting experience across multiple industries.
The author argues that while strategy and innovation are inherently interconnected concepts,
they frequently operate in isolation within organizations,
creating a disconnect that undermines both strategic effectiveness and innovative potential.

(00:34):
Through analysis of academic literature and practical case studies,
the article identifies the root causes of this separation—including structural silos,
conflicting timeframes,and cultural differences—and offers a comprehensive framework for bridging this gap.
The proposed solution involves developing shared strategic innovation mindsets,

(00:58):
implementing specific organizational structures and processes that facilitate collaboration,
and cultivating a culture that aligns innovative thinking with strategic priorities.
With illustrative examples demonstrating successful integration in technology and retail sectors,
the author presents a compelling case that organizations which effectively connect strategy and innovation will secure sustainable competitive advantage in today's rapidly evolving business landscape.

(01:29):
As a management consultant with over fifteen years of experience working with organizations across multiple industries,
I have seen firsthand the challenges that leaders face when trying to align their strategic priorities with innovative initiatives.
While the concepts of strategy and innovation are often discussed separately,

(01:49):
true success lies in how effectively organizations can connect the two.
Today we will explore the missing link between strategy and innovation,
drawing from both my hands-on work with clients as well as relevant academic literature,
and provide practical recommendations for building the critical bridge that closes this pervasive gap.

(02:11):
Defining the Disconnect Strategy and innovation are intrinsically intertwined—effective strategies pave the way for new opportunities,
while innovation fuels future strategies (Dumas & McLean,
2018).
However, in practice, they are too often treated as separate functions within organizations.

(02:33):
Leaders develop strategic plans focused on short-term objectives,
yet struggle to cultivate an environment conducive to long-term innovation (MacLennan,
2020).
Conversely,innovative ideas are pursued independently of the overarching direction set by strategy (Griffin et al.

(02:54):
, 2016).
This disconnect stems from various factors.
Strategy is rooted in analysis of the present environment to maximize existing strengths,
whereas innovation explores uncertainties to enable future growth (O'Connor & McDermott,
1997).

(03:15):
Strategic planning emphasizes control and predictability,
while innovation embraces uncertainty and risk-taking (Christensen,
1997).
Structurally,strategy and innovation teams operate independently rather than collaboratively (Crossan & Apaydin,
2010).

(03:36):
Culturally,conservative values associated with planning can inhibit creative thinking for new possibilities (Griffin et al.
, 2016).
The consequences of this missing link are significant.
Strategic initiatives fail to deliver long-lasting competitive advantage when disconnected from innovation (Henderson,

(03:58):
2006).
Innovations are less impactful or sustainable without alignment to strategic objectives (O'Connor & Ayers,
2005).
Resources are wasted pursuing innovations irrelevant to strategic priorities or replicating work across silos (MacLennan,

(04:19):
2020).
To build a bridge over this chasm, a systematic approach is needed.

Building the Foundation (04:25):
Shared Understanding and Strategic Innovation Frameworks The first step is developing a shared understanding of how strategy and innovation intersect.
Leaders must clearly communicate how innovation both enables strategic objectives in existing markets as well as explores new strategic opportunities through market creation (Christensen,

(04:48):
1997).
Setting this foundation requires executive-level sponsorship to shift mindsets across the organization.
Frameworks also help translate high-level concepts into action.
For example,open strategy involves broadly sharing strategic insights and direction to spark innovative thinking enterprise-wide (Chesbrough & Appleyard,

(05:12):
2007).
Strategic roadmapping coordinates innovation projects to achieve strategic milestones over set time horizons (Phaal et al,
2004).
The blue ocean strategy framework informs how to pursue unattained market spaces for disruptive innovation (Kim & Mauborgne,

(05:34):
2005).
I have seen firsthand how applying frameworks to specific industry contexts builds alignment.
In healthcare,using roadmaps coordinated pharmaceutical and medical device innovation to strategic population health goals.
For automotive,a blue ocean approach identified new mobility solutions beyond traditional manufacturing.

(05:58):
Establishing conceptual clarity through shared mental models and frameworks creates a foundation on which to build deeper integration.

Bridging the Divide (06:06):
Structures,Processes and Culture With a unified strategic innovation perspective established,
organizations can develop the structural,process and cultural elements that bind strategy and innovation efforts together.

Below are some recommendations informed by both research and practical experience (06:22):
Structural Integration Colocate strategy and innovation teams to spark spontaneous collaboration (Griffin et al.
,2016) Create cross-functional innovation councils that include strategy leaders (De Luca & Atuahene-Gima,

(06:43):
2007) Designate Chief Innovation Officers to spearhead strategic innovation initiatives (Crossan & Apaydin,
2010) Strategic Innovation Processes Incorporate innovation scoping at start of strategic planning to identify new opportunities (O'Connor & Ayers,
2005) Embed strategic foresight techniques into roadmapping to predict future markets (Rohrbeck & Schwarz,

(07:10):
2013) Use stage-gate processes to iteratively link innovative concepts to strategic objectives (Cooper,
1990) Culture of Strategic Innovation Instill questioning mindsets that challenge existing strategies and markets (Christensen,
1997) Incentivize cross-team collaboration over siloed work (MacLennan,

(07:34):
2020) Celebrate innovation successes tied to long-term strategic impact over short-term gains (Griffin et al.
,2016) The most effective organizations treat strategy and innovation as two sides of the same coin—you cannot have one without the other.
Structural integration,strategic processes,and an overarching culture are all required to meaningfully close this pervasive gap.

Illustrative Examples Let me provide two brief examples from client engagements where a focus on building strategic innovation bridges yielded tangible results (08:01):
Technology Manufacturer A legacy tech company lacked innovation despite large R&D budgets.
We helped integrate strategic planning and product development via joint roadmapping workshops,

(08:23):
modeling market disruption scenarios.
This identified opportunities in IoT and edge computing.
A new innovation structure pilot-tested concepts tied to strategic initiatives.
In 18 months, two startups were formed, contributing over 30% of projected 2025 revenues.

(08:45):
Global Retailer Struggling with declining store traffic,
the retailer’s strategic plans poorly linked to digital innovation.
We applied an open strategy process to share plans broadly and solicit ideas.
A new Innovation Council sponsored ideas filtered through a “strategic lens.

(09:05):
” Two ideas emerged—a conversational AI platform and same-day fulfillment network.
Strategic models predicted $1B in new annual revenues within 5 years of deployment.
In both cases,developing a shared strategic innovation perspective and applying structural/process best practices yielded impactful results by closing long-standing gaps between strategy and the innovations that advance strategic goals.

(09:33):
Conclusion As competition intensifies globally and industries are disrupted at unprecedented rates,
the ability to strategically innovate will determine which organizations thrive in the future.
However,simply discussing strategy and innovation separately will not deliver competitive advantage—what is needed is the actual bridge that meaningfully connects the two.

(09:56):
Building this bridge requires developing shared strategic innovation mindsets,
employing conceptual frameworks,and implementing structural,
process and cultural elements proven to bind strategy and innovation initiatives together.
With a unified strategic innovation perspective,companies can more effectively pursue innovations that advance strategic objectives while exploring new growth opportunities.

(10:23):
Those with the discipline to close this gap will be best positioned to shape their industries’ futures.
While no silver bullet,the systemic and applied recommendations provided serve as a starting point for any organization seeking to maximize value from both strategy and innovation—the twin engines that together drive sustainable competitive advantage.

(10:45):
As a strategic innovation consultant,I remain committed to helping clients build sturdier bridges over this critical organizational divide.
Doing so is key to surviving,and thriving,in today’s VUCA business environment defined by volatility,
uncertainty,complexity and ambiguity.