As someone who speaks with CEOs on a daily basis, Rafael Pastor Chairman and CEO of Vistage International understands the importance of innovation, and what it takes for companies to explore new business solutions and technologies. Pastor defines innovation as a game-changer for businesses, often coming from new or smaller companies, because they are not restricted by the many roadblocks and policies larger firms are faced with. Pastor explains these large businesses often face greater challenges to innovate, and historically have difficulty taking on high risk.
Innovation is a challenge all companies are faced with, and one they must do on a consistent basis. Pastor explains, in order to innovate you must take the risk of cannibalization, and be willing to become obsolete in order to run with upcoming trends and technologies. He looks back on his experience as former CEO of Hoyts Cinemas Corporation, when multiplexes had begun popping up all over the country, threatening his 1-2 screen Hoyts theaters. The company had a choice: build multiplexes only a few miles away from their smaller theaters and risk losing business at their older locations, or continue to promote their small theaters. They chose the latter and if they had not taken the risk to innovate, Hoyts Cinemas would have failed to compete in the market.
Pastor says for large companies to become innovative, they need not focus on buying up smaller companies to learn from, but instead make the commitment to cross-over into new markets, and bringing people who are experts in newer fields and into their organizations. Learn from Rafael by watching our latest CEO Show here!