Systems & Organizations
Stop Rewarding Linear Progress
Most companies unknowingly incentivize teams to prioritize predictability over innovation, resulting in stagnant growth.
2026-07-091 min read
The notion that linear progress is the ultimate goal for teams has been deeply ingrained in the way companies measure success. However, this approach can have unintended consequences. By rewarding teams for meeting predictable milestones, companies inadvertently encourage a culture of risk aversion and complacency. This is because linear progress is often associated with a fixed plan, where deviations are seen as failures rather than opportunities for growth. In reality, innovation and progress are rarely linear, and teams that are incentivized to follow a predetermined plan may miss out on unexpected breakthroughs.
A striking example of this can be seen in the story of 3M, which allowed employees to dedicate 15% of their work hours to side projects. This led to the creation of Post-it Notes, a product that has become synonymous with the company. By giving employees the freedom to explore unconventional ideas, 3M was able to foster a culture of innovation and creativity. In contrast, companies that prioritize linear progress may find themselves stuck in a rut, unable to adapt to changing circumstances or capitalize on unexpected opportunities.
The mechanism behind this phenomenon is rooted in the way companies measure and reward progress. By focusing on predictable milestones, companies create an incentive structure that prioritizes short-term gains over long-term innovation. This can lead to a culture of risk aversion, where teams are reluctant to deviate from the plan, even if it means missing out on potential breakthroughs. To break this cycle, companies need to rethink their approach to measuring and rewarding progress, prioritizing innovation and creativity over linear predictability.
Key insights
Prioritizing linear progress can lead to a culture of risk aversion and complacency.
Companies that incentivize innovation and creativity are more likely to experience breakthroughs and long-term success.
Introducing flexibility and autonomy into the work environment can help foster a culture of innovation.
A fixed plan can be limiting, and teams should be encouraged to deviate from the plan if it means capitalizing on unexpected opportunities.
Why it matters
If companies continue to reward linear progress, they risk stifling innovation and missing out on potential breakthroughs.
Furthermore, a culture of risk aversion can lead to a brain drain, as talented employees seek out companies that offer more freedom to explore unconventional ideas.
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Use this tomorrow
1Review your current incentive structure and identify areas where you can introduce more flexibility and autonomy for teams to explore unconventional ideas.
2Implement a "20% time" policy, where employees are allowed to dedicate a portion of their work hours to side projects, and track the resulting innovations and breakthroughs.
Go deeper
The concept of prioritizing innovation over linear progress is rooted in the idea that progress is rarely linear, and that teams should be incentivized to explore unconventional ideas. This approach requires a fundamental shift in the way companies measure and reward progress, from a focus on predictable milestones to a focus on innovation and creativity.
One of the key challenges in implementing this approach is creating an incentive structure that prioritizes innovation and creativity without sacrificing accountability and discipline. This requires a delicate balance between giving teams the freedom to explore unconventional ideas and ensuring that they remain focused on the company's overall goals and objectives.
