Risks

When innovation projects fail to create double-digit growth it can create a lack of vibrancy that can affect the ability of a company to attract financing and talent. But the greatest risk is that the loss of vibrancy may actually decay into an actual decline in the company. This can take the shape of a decline in the company's ability to innovate because failure creates fear to attempt innovation. It also can harm the growth ability of the company to an extent that the company is worse off than if no innovation had been attempted in the first place.

Opportunities

Naturally, a well-executed innovation strategy creates opportunities for company growth – in this case, a return to double-digit growth for mid-cap companies. Such growth can create a form of organizational momentum that brings such opportunities as:

• Improvements to recruiting and retention because people are happy to work at the company and proud of their accomplishments.
  
• Improving the company's ability to undertake more innovation projects and acquisitions.
  
• Boosting the company's core operations by adopting improved processes from an acquired company or through an innovation project's impact on company platforms or processes.
  

Additionally, even some degrees of failure can help improve the company because applying good failure forensics can permit applying lessons learned to future projects. That can strengthen the whole core operation.