Innovation is the No. 1 priority of today’s CEOs. They correctly perceive that the fast-turning treadmill of disruption topples organizations that stand still. The only sure-fire way to stay on top is to consistently introduce products and services that provide unique, superior value and defy expectations.

So why are there so few consistently innovative organizations? And when the innovative spark does appear, why does it so often fail to ignite and sustain itself?

Innovation is like an iceberg. Most companies concentrate on what’s above the surface—the money-making products and service—rather than on the less tangible culture and processes that underlie, support, and enable them. They want innovative results, without realizing that innovation starts from the inside out, i.e., with culture. Without a strong cultural component, attempts at innovation are akin to putting the cart in front of the horse.

 …