#2: Speak the Same Language -- Innovation Definitions

One of the biggest barriers to successful innovation in any organization is the lack of a shared language.

Create your organization's Innovation Lexicon

Innovation is a team effort, but without shared definitions, true collaboration becomes impossible. In this blog, I'll share the what, why and a few examples of terms that should be in your corporate lexicon.

You don’t need to adopt a consultant’s or author’s definition of key terms—what matters is that your organization agrees on a common language. Document it, share it, and refine it as your organization evolves and explores new frontiers. Ensure new team members understand it so everyone stays aligned.

Here’s a simple test: ask three people in your organization to define “Innovation” or “Breakthrough Innovation.” Then, write down your own definition. What about terms like “Horizon 1” or “Horizon 2”? Chances are, while some definitions may overlap, no two will be exactly the same—and these subtle differences can lead to significant challenges. Misalignment in understanding causes frustration, wastes time and resources, and often leads to failure. When employees across levels define key terms differently, success becomes nearly impossible.

A Real-World Example

One of our clients, a high-energy CEO and an accomplished Divisional President were having some real issues over innovation. The CEO wasn't getting the innovation he kept asking for. Meanwhile, the Divisional President was feeling that he was proposing and planning lots of innovation, but that every proposal he presented was dismissed by the CEO. Through an “Innovation Diagnostic,” we discovered the root cause: inconsistent definitions. Leaders were using the same terms differently, creating misaligned expectations.

To resolve this, we helped the organization create a shared “Innovation Glossary.” Within a year, the company launched a new innovation portfolio. The CEO proudly presented it to the board, securing significant funding for four transformative projects that redefined the business. These innovations delivered double-digit growth and attracted a global buyer who is still benefiting from those initiatives today.

Define What Works for You

It’s not critical to adopt definitions from outside “experts,” though they can provide a good starting point. What matters is creating and documenting definitions tailored to your organization—and ensuring everyone involved understands and uses them consistently.

Here’s how we define innovation, based on our years of experience:

    “Innovation is the process of envisioning and successfully implementing new ways of doing anything that creates new value for an enterprise and the people it serves.”

Innovation isn’t just about products; it includes business models, value chains, internal processes, and external strategies.

Key Definitions to Include in Your Glossary

Here are some starter examples for defining innovation types, levels, and time horizons:

·  Incremental or Sustaining Innovation: Improves existing offerings to remain competitive by enhancing benefits or differentiators.

·  Breakthrough Innovation: Creates new sources of consumption (e.g., new users, markets, or usage occasions) or redefines categories.

·  Transformational Innovation: Introduces paradigm-shifting ideas that create entirely new markets or habits (e.g., the internet, smartphones).

·  Platform Innovation: Innovation that represents a BIG opportunity, furthers long-term strategy; leverages investments in development and implementation; and has fertility enabling a series of revenue opportunities and refreshments over time.  Platforms can be defined at any point in the value chain from technology to logistics, brand equities, and more.  Because of this, innovators must be very clear what types of platforms they are seeking.

·  Innovation Horizons

H1: Horizon 1 – Near-term (0–2 years): Incremental innovations using existing skills or knowledge.

H2: Horizon 2 – Mid-term (3–5 years): Breakthrough innovations requiring new skills to create new users, markets, or occasions.

H3: Horizon 3 – Long-term (5+ years): Strategic, step-change innovations requiring vision, evolving value propositions, and new capabilities.

Additional Terms to Consider

Tailor your glossary to your needs. Terms like Vision, Mission, Opportunity Space, Pathway, Enabler, or Driving Force may also be critical for alignment.

Why It Matters

Clear, consistent language ensures alignment, saves resources, and reduces frustration. If you’re a leader, make expectations clear. If you’re an innovator, ensure alignment across all levels.

Innovation has many potential pitfalls, but confusion about goals and direction shouldn’t be one of them.