How to promote continuous improvement in the Age of AI

Move beyond the “innovation theater” with a proven, cyclical approach.

I once ran a set of brainstorming sessions, the team were excited, there was energy in the room, ideas were flowing at an increasing pace. Many got noted, roadmap and exciting path to success was drafted. And then nothing happened. Not one thing made it to execution. Not one.

Today, 95% of innovation initiatives still fail (McKinsey, 2023)

It’s time to break free from this cycle of “innovation theater” and embrace a more effective approach.

I’ve spent the last decade wrestling with this problem, and past year researching it much deeper, it was my 4h/day reading and asking questions — over 100h of interviews with top execs and innovation champions.

Now I can conclude: there is a better way. It’s not sexy, it’s not easy, but it works. I call it the Innovation Supercycle.

This system, developed through years of trial and error, offers a practical roadmap for organizations looking to stay ahead in the age of AI.

The Innovation Supercycle is a powerful mechanism for driving continuous improvement and adaptation within your organization. At its core, the Supercycle is about creating a self-propagating system that turns innovation from a one-time event into an ongoing process.

But let’s be real, implementing such a system isn’t a walk in the park. It requires a fundamental shift in how we approach problem-solving, creativity, and organizational culture.

So, how do we kickstart this engine of perpetual innovation?

1. Start small, think big

The journey of a thousand miles begins with a single step, and the same holds true for innovation. Begin by assembling a small team — ideally around five people — dedicated to exploring new ideas. This “LEAP team” (Locate, Evaluate, Action Plan, Progress) becomes your innovation vanguard.

Remember when you tried to overhaul your entire product line in one go, and it ended up being a spectacular failure? Yeah, me too. That’s why we’re going to start small. Begin by assembling a small team — I recommend around five people — dedicated to exploring new ideas. This “LEAP team” becomes your innovation vanguard.

When I first implemented this at my startup, we chose five people from different departments. We had Sarah from marketing, Tom from engineering, Lisa from customer support, Raj from product, and myself. This diversity was key to our success.

2. Embrace the cycle

The Innovation Supercycle isn’t about reinventing the wheel every quarter. Instead, it’s about establishing a rhythm of continuous improvement. Set up regular cycles — we found that three months worked well — where your team identifies opportunities, evaluates their potential, creates action plans, and implements prototypes.

3. Document everything

In the Age of AI, data is king. I learned this the hard way when we lost months of work because someone (okay, it was me) forgot to back up our brainstorming sessions. Now, we meticulously document our innovation process — from initial brainstorming to final implementation. This creates a valuable knowledge base that becomes fodder for AI systems, enabling smarter decision-making and pattern recognition over time.

4. Leverage AI as a catalyst

AI is the most powerful tool in your innovation arsenal. Use AI to augment your team’s capabilities, from generating initial ideas to analyzing vast datasets for insights. But remember, AI is a tool, not a replacement for human creativity and intuition.

In our case, we used an AI system to help us analyze customer feedback data. It uncovered patterns we had missed and led to a product feature that increased user engagement by 37%.

5. Scale strategically

As your first innovation cycle bears fruit, don’t rest on your laurels. Use this momentum to scale your efforts. For each completed cycle, aim to start two new ones. This exponential growth can lead to hundreds of innovative projects within a few years.

When we first started, we had one LEAP team. By year two, we had four teams running concurrently. By year three, we had ten. The compound effect was mind-blowing.

6. Promote a culture of experimentation

Innovation thrives in environments where failure is seen as a learning opportunity, not a career-ending mistake. Encourage your team to take calculated risks and celebrate both successes and instructive failures.

I’ll never forget when our team spent three months developing a feature that utterly flopped. Instead of pointing fingers, we analyzed what went wrong, shared our learnings, and used that knowledge to inform our next project — which ended up being our most successful launch to date.

7. Communicate and celebrate

Regular communication about your innovation efforts — both successes and learnings from setbacks — helps build buy-in across the organization. Consider implementing quarterly “demo days” where teams can showcase their progress and inspire others.

Our demo days quickly became the most anticipated events in the company calendar. They were part show-and-tell, part celebration, and part spark for new ideas.

8. Lead by example

As a leader, your role in promoting the Innovation Supercycle is crucial. Embrace a coaching mindset, nurturing your team’s potential rather than micromanaging their efforts. Show your commitment to innovation through your actions, not just your words.

I made it a point to participate in at least one LEAP team project each quarter. It kept me connected to the process and sent a clear message about the importance of innovation.

Now, I won’t sugarcoat it — implementing the Innovation Supercycle isn’t a walk in the park. It requires a fundamental shift in how we approach problem-solving, creativity, and organizational culture. There will be resistance. There will be setbacks. There will be moments when you question if it’s worth the effort.

But here’s the truth: in the Age of AI, the question isn’t whether you’ll innovate, but how effectively you can make innovation a core part of your organizational DNA.

The companies that thrive will be those that can consistently generate, evaluate, and implement new ideas.

The Innovation Supercycle isn’t a magic bullet, but a powerful framework for sustained growth and adaptation. By implementing these principles, you’re not just preparing your organization for the future — you’re actively shaping it.

So, are you ready to take the LEAP and unlock your organization’s Innovation Supercycle? Trust me, the view from the cutting edge is worth the climb.

P.S. I’d love to connect with you on LinkedIn! I share daily bite-sized insights designed to empower you and your teams to thrive in the Age of AI.