Financial Tools that kill Innovation

For years we’ve been puzzling about why so many smart, hardworking managers in well-run companies find it impossible to innovate successfully. Investigations have uncovered a number of culprits. These include paying too much attention to the company’s most profitable customers (thereby leaving less-demanding customers at risk) and creating new products that don’t help customers do the jobs they want to do.
Welcome to this edition of Models 2 Ace, where we call out the misguided application of financial-analysis tools, frameworks and processes that sabotage innovation.