The Innovator’s Hypothesis

Book summary

Michael Schrage is an advisor and consultant on innovative risk management. He is also a research fellow at the MIT Sloan School of Management for Digital Business as well as an in-demand speaker on innovation and business experiments.

The modern approach to innovation emphasizes collaboration and experimentation, much like a chemistry class where teams test ideas and share results. This philosophy is captured in the 5x5 model, which unites small, cross-functional teams to conduct quick, cost-effective experiments. Unlike traditional R&D, which demanded significant time, resources, and top-down planning, this method thrives on iterative, low-cost trials that scale only when successful. However, implementing the 5x5 model requires overcoming resistance, particularly from those with a "planner mindset" who favor established methods. Success hinges on fostering an "explorer mindset" that values experimentation and agility, as well as securing executive buy-in by aligning experiments with organizational priorities. By engaging all departments and demonstrating the model’s potential, businesses can drive innovation collaboratively and effectively—a concept explored further in the next section.

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