Save great ideas from managers' inaction
Often, the best proposals remain stuck on managers' desks.And they scare those who don't want to change. We lack the skills to evaluate them.
Vijaya Venkataramani, Professor of Leadership and Innovation in the Department of Management and Organization at the Robert H. Smith School of Business at the University of Maryland.
Kathryn M. Bartol, Research Professor and Professor Emeritus in the Department of Management and Organization at the Robert H. Smith School of Business
Published in issue 2, March/April 2025 – Mit Sloan Management Review Italy.
Managers who recognize the importance of innovation for their organization are inclined to encourage employees to propose new and creative ideas. Yet many employees complain that their best ideas are often overlooked, rejected, or misunderstood by those same managers.
Ironically, managers themselves can be a serious obstacle to innovation. Deeply rooted in their fields of expertise, managers often struggle to recognize the value of innovative ideas, especially when those ideas are unprecedented in their field.
Take the famous case of Xerox's Palo Alto Research Center, which developed revolutionary technologies, such as the graphical user interface and the computer mouse, innovations that were destined to redefine the future of personal computing. However, Xerox executives remained focused on their copying and printing expertise and failed to see the value of those discoveries. The ideas were seen as intriguing, but impractical and not connected to the company's core business. This reluctance to embrace ideas outside of its traditional scope ultimately cost Xerox its chance to dominate the technology revolution.personal computing, a market that others, such as Apple, have enthusiastically claimed.
Here lies the paradox: the same novelty that makes an idea valuable for an organization and potentially capable of generating extraordinary profits is also what makes it difficult for managers to appreciate. Organizations thrive on the ability to break norms and embrace the unknown, but managers' mental models often favor the predictable and familiar. How can this critical dilemma be resolved?
Welcoming innovative ideasThe role of manager networks
Our research points to a powerful, yet simple solution: Managers need to build diverse personal networks within their organizations and beyond. The link between having a diverse social network and being innovative is no secret: it is a cornerstone of creativity research (Perry-Smith, 2006). But our findings add a twist: Diverse connections not only help employees generate more creative ideas (Parise, Whelan, & Todd, 2015), but are critical to enabling managers to evaluate and recognize the value of employee ideas. Even the brightest ideas go nowhere if managers don't see their potential.
Although our studies have focused on diversity primarily in terms of functional diversity, that is, differences in areas of work or specialization, we have also found that other forms of diversity, such as age, gender and cultural diversity, can offer similar benefits. Interacting frequently with a broader set of people fosters openness to new perspectives and a greater appreciation of unconventional ideas.
We found that by diversifying their social networks, managers can overcome their aversion to uncertainty. By exposing themselves to different perspectives and unfamiliar industries and gaining a broader understanding of their organization's strengths, managers become better able to identify and capitalize on the potential of innovative ideas.
Anecdotal evidence also supports these findings. For example, during her tenure as CEO of PepsiCo, Indra Nooyi prioritized diversity in her management team and valued the contributions of colleagues with diverse cultural and professional backgrounds (Untitled Leader, 2023). Its various connections have helped it champion the idea of 'performance with purpose', leading to the launch of healthier snacks and drinks alongside the company's traditional products. At Toyota, managers engage in regular visitsgenchi genbutsu(“go and see”) to production facilities and research and development centers (Niedermeyer, 2019). By interacting with engineers, workers and designers, they can see firsthand how even the smallest process innovations can lead to significant cost savings or product improvements.
Wider networks have positive effectsThree studies
Three studies are the basis of our research (Venkataramaniet al., 2025). Our initial study was conducted in a leading ceramic technology company that valued and encouraged innovation. We first conducted a pilot study within this organization to identify 12 unique ideas in the field of ceramic ink/glaze products from a broad range of employees. We then asked subject matter experts to provide normative assessments of the novelty of such ideas. Next, we provided the 12 ideas to all mid-level managers in the company, who were asked to evaluate them.
Overall, while the organization emphasized the importance of creative ideas, we found that managers generally devalued and rejected the most innovative ones, often perceiving them as impractical or risky.
Using social network analysis, we then analyzed the networks of these managers. We found that managers with larger and more functionally diverse consulting networks evaluated innovative ideas more favorably than managers with more isolated networks, and were more willing to support the implementation of new ideas. From these results, we extrapolated that exposure to a greater diversity of perspectives allowed a manager to better appreciate the potential value of unconventional ideas suggested by employees.
Our second study was a laboratory experiment in which participants imagined themselves as managers overseeing new product development in a medium-sized company. Participants were given some general information about their field of work (product management) and asked to discuss its implications for managerial decision making with two other “managers” for 10 minutes.
During these discussions we manipulated the diversity of the network by varying the backgrounds and perspectives assigned to the three participants. In particular, we provided participants with materials relating to their function, inviting them to read and familiarize themselves with them before starting the discussion. In the low diversity condition, all discussion participants had general, but different, information about product management, while in the high diversity condition, participants brought distinct perspectives from different functions (such as supply chain or research and development).
After the discussion, participants watched a video in which an employee presented a highly innovative or incremental idea. They were then asked if they would approve of the idea. We found that participants tended to disfavor innovative ideas in general. However, the influence of social network dynamics emerged strongly again: managers with diverse consultancy networks demonstrated a more positive attitude towards the implementation of innovative ideas.
The final study was conducted in a multinational company that produces batteries. Using an innovation competition format, we first solicited new ideas from employees. Next, we conducted a sociometric survey with all managers and employees to map their social networks. We then shared the ideas submitted anonymously with the creator's colleagues, who provided normative assessments of the novelty of the idea. Subsequently, the supervisors, knowing the employee who created the idea, evaluated the perceived value of each idea and indicated their level of willingness to implement it. The results confirmed once again that managers generally appreciate innovative ideas less, but having a diverse consultancy network reduced their bias towards novelty. We concluded that their diverse networks made them more open to more innovative ideas.
This study revealed an additional key insight: Employees who were themselves well connected within their peer networks were able to convince managers to see the value in their ideas. These employees were very central or had a strong position in their informal networks at work. Their high connectivity increased their visibility and access to feedback and resources, signaling to managers both the value of their contributions and the greater feasibility of their ideas.
Overall, these studies provide insight that can help reduce managers' negative bias towards innovative ideas: when managers have large and diverse networks, even within their own organizations, innovative ideas have a greater chance of being recognized, valued and implemented. Furthermore, our studies led to a further conclusion: having employees who are well connected across organizational functions is an advantage because managers tend to be more open to influence from them.
Increase people's receptivity to new ideasFive actions to take
How can these insights translate into actionable strategies that improve managers' acceptance of innovative ideas? Below are some practical steps managers and employees can take.
1. Expand and diversify consultancy networks.
For managers, the first step is to recognize the value of having a diverse consulting network. This can mean building relationships across departments, levels and demographic divisions within your organizations and even outside of them.
Consider Procter & Gamble, for example, which has adopted cross-functional communities of practice to break down silos and encourage the sharing of ideas across departments. The creation of these cross-functional groups has led to more receptive and innovative thinking at all levels (Huston and Sakkab, 2006). Managers who constantly interact with diverse groups of people are more likely to appreciate and implement innovative solutions.
2. Encourage networking among employees.
Managers should encourage employees to build their own networks within the organization. Google, for example, promotes networking through its Googler-to-Googler program (rework.withgoogle.com), in which employees connect across projects and share their insights, strengthening their internal networks and employees' reputations as trustworthy innovators.
Employees who interact frequently with diverse colleagues are not only better advocates for their own ideas, but they also get feedback that refines their proposals. More importantly, managers use such network positions as signals of the employee's legitimacy and the potential quality of his or her new ideas.
3. Recognize and address prejudices against novelty.
To counter managers' tendency to disfavor new ideas, organizations should help them become aware of this bias and provide them with structures to evaluate new ideas more objectively. Tools like structured brainstorming or idea evaluation models can help reduce people's reliance on gut feelings, which often resist novelty.
For example, 3M, known for its emphasis on innovation, encourages managers to evaluate new ideas through structured criteria that focus on potential impact, scalability and feasibility, rather than solely on novelty. This approach helps managers see beyond their initial biases and evaluate ideas for their true organizational value.
4. Create opportunities for cross-functional collaboration.
Managers can support the development of broader networks within their organizations by providing their employees with cross-functional experiences. Job rotation, collaborative projects and 'innovation days', where employees across departments work together to tackle new challenges, can help people build broader social networks and therefore be less resistant to new ideas.
For example, Synchrony Financial has adopted job exchange (Cutter, 2024) and cross-functional projects as part of its career development strategy, creating a work environment where employees' new ideas have a better chance of being implemented.
5. Support approval of ideas through social proof.
Managers tend to give more consideration to ideas that come from employees with a good reputation or who have a prominent position. When less visible employees who support an innovative idea get the support of well-connected team members, their managers may find the idea more interesting.
Forming alliances and gathering informal consensus within the team can also create positive momentum. By presenting an innovative idea as a team-supported initiative rather than a risky proposition, employees can increase the likelihood that it will be accepted.
Some warnings about creating diverse networks
Although these strategies are promising, several factors can complicate their implementation. First, building a diverse network takes time, and in fast-paced work environments, managers may feel pressured to prioritize immediate results over building long-term relationships. Additionally, organizational cultures that emphasize hierarchy or rigid structure can inadvertently discourage cross-functional networking. It is essential that leaders provide the necessary support, such as resources or structured networking opportunities, to help managers and employees diversify their networks.
There is also the risk that, even with a more open approach, some managers may still be against new ideas, particularly if they feel the territory is their authority (Venkataramaniet al., 2024) or perceive such ideas as a challenge to their experience. This aversion can be further exacerbated in organizational cultures that penalize failure. While an organizational culture that encourages people to take calculated risks can foster innovation, managers who operate in risk-averse environments or feel threatened by new ideas may still reject them, regardless of the diversity of their network or the potential value of the idea.
Organizations should align their reward systems to strengthen innovation, minimize fear of failure and address territorial behaviors, promoting a culture of shared success. Additionally, companies should encourage networking across all roles and levels, as not all employees will have equal access to networking opportunities or resources. This can be achieved through formal mentoring programs, structured cross-functional projects or dedicated networking support for newer or less visible employees, to ensure innovative ideas are brought to light and considered fairly.
Fostering an environment that supports innovative ideas is essential for organizations that want to thrive in today's competitive landscape. Broadening networks and embracing different perspectives allows managers to overcome biases against new things and ensure that breakthrough ideas receive the recognition and support they deserve. Together, these strategies can unlock the full potential of innovation, driving organizational growth and resilience.