Posted on Oct 6, 2014

Innovation vs. Ingenuity as Core Values. Is there a difference?

Why do some companies embrace Innovation as a core value while others embrace Ingenuity? Is there a difference?

Let’s first consider the meaning of these two values.

Innovation = introducing something new; invention; advanced or ahead of the times.

Ingenuity = ability to solve difficult problems; the power of creative imagination.

Innovation is more about the “new thing” while Ingenuity is more about how a problem is solved. One is about the outcome and the other about the process.

Comparing Definitions

Now let’s look at how companies in two different industries define Innovation vs. Ingenuity. ConocoPhillips and Visa both state Innovation as a core value. Comparatively, Chevron and CitiGroup both state Ingenuity as a core value.

Oil & Gas:

ConocoPhillips: Innovation – We anticipate change and respond with creative solutions. We are agile and responsive to the changing needs of stakeholders and embrace learning opportunities from our experience around the world.

Chevron: Ingenuity – We seek new opportunities and out-of-the-ordinary solutions. We use our creativity to find unexpected and practical ways to solve problems. Our experience, technology and perseverance enable us to overcome challenges and deliver value.

While both companies talk about “solutions” (the outcome), Chevron makes reference to solving problems, persevering, and overcoming challenges. This is clearly more aligned to the true meaning of Ingenuity.

Financial Services:

Visa: Innovation – Pioneering with a purpose. We take intelligent, calculated risks without compromising the soundness of our systems or the strength of our reputation.

CitiGroup: Ingenuity – Enhancing our clients’ lives through innovation that harnesses the breadth and depth of our information, global network and world-class products.

In this case, CitiGroup makes no reference to the true meaning of Ingenuity. There’s no reference to solving difficult problems. And it seems strange to consider a databank of information or banking products to possess creative imagination. So it would actually make more sense to label this value as Innovation.

Do Definitions Matter?

Some might suggest that I’m splitting hairs and this is just a matter of semantics. They might argue that companies can choose either Innovation or Ingenuity and define it any way they like. It’s all the same.

I disagree.

How values are defined matter. They set the tone for how stakeholders prioritize and how decisions get made. They set the benchmark for success.

Consider the various scenarios that will inevitably unfold.

Are employees rewarded on how many new products are launched each year; or are they rewarded for solving difficult problems?
Do customers expect a stream of cool new inventions; or do they expect access to a pool of creative minds that will help solve their business problems?
Should suppliers highlight their latest inventions; or should they offer their creative expertise to help overcome current challenges?

Both Innovation and Ingenuity are relevant values. But they are not the same. It’s important to choose carefully and define carefully.

The future success of your business rests upon it.