Proximity Based Innovation

Innovation should happen top-down. Or was it bottom-up?

Innovation works best when it’s close to the source. Proximity matters.

There’s a misconception that innovation flows from the top down. In reality, the most impactful ideas often come from those closest to the work.

Innovation isn’t about hierarchy. It’s about proximity to the actual work and expertise.

Let's get specific with two examples:
- Vehicle Maintenance: Mechanics and drivers, who deal with delivery trucks daily, are best positioned to suggest improvements to oil change procedures.
- Board Governance: C-suite executives, who engage regularly with the board, are closest to the nuances of governance and reporting needs.

We often assume innovation should come from “higher-ups” and overlook insights from front-line workers. This bias can lead to dismissing valuable ideas simply because they don’t come from expected sources.

When Innovation Goes Wrong

Problems arise when innovations come from too far outside the context:

• A maintenance technician redesigning financial reports might overlook regulatory needs, investor priorities, and strategic messaging.
• A CEO mandating a “streamlined” checklist for technicians may inadvertently double their documentation time.

In both cases, well-intentioned ideas fail because of:
- Distance from context
- Missing critical details
- Unintended consequences

The Cost of Misaligned Innovation

Misaligned innovation creates hidden costs: employee disengagement, productivity loss, increased turnover, and missed opportunities for real improvement. Workers feel undervalued, motivation wanes, and expertise is lost as people mentally check out. Over time, the organization bears the burden of inefficiency and missed potential.

Breaking the Pattern

To foster meaningful innovation, organizations must empower those closest to the work to lead change, question top-down mandates that overlook local expertise, and respect context and proximity. The heart of innovation lies in engaged minds, not just doing the work but continuously thinking about how to do it better.