Clockwork sprouting flowers: Innovation from control.

Unlocking Innovation: How Management 'Failures' Can Spark Creativity

Mira Elwood in Business & Economy August 2025 • 4 min read.

"A counterintuitive look at how management control, when imperfect, can drive unexpected innovation and why embracing 'desired deviance' might be the key to progress."

In today's fast-paced business world, innovation is king. Companies are constantly searching for that next big idea, that game-changing product, or a more efficient process. Management control, traditionally seen as a way to keep things on track and ensure employees toe the line, plays a crucial role. But what if the very systems designed to maintain order could inadvertently stifle the creativity they aim to foster? What if, instead, imperfections in these systems could be the unlikely catalyst for groundbreaking innovation?

Conventional wisdom suggests that tight control leads to predictable outcomes. However, a growing body of research hints at a more complex relationship. Excessive control, rigid processes, and a fear of failure can actually crush the innovative spirit. On the other hand, a balanced approach that embraces a degree of 'desired deviance' – a willingness to step outside the norm – can unlock untapped potential within an organization.

This article delves into the fascinating intersection of management control and innovation, exploring how seemingly dysfunctional control mechanisms can, paradoxically, pave the way for creative breakthroughs. We'll examine the concept of 'desired deviance,' drawing upon sociological theories to understand how companies can navigate the delicate balance between maintaining order and fostering a culture where innovation thrives.

Can 'Bad' Management Actually Be Good for Innovation?

Clockwork sprouting flowers: Innovation from control.

The traditional view of management control emphasizes adherence to rules, processes, and established norms. It's about minimizing deviations and ensuring predictable outcomes. However, this perspective can be limiting. Innovation, by its very nature, requires a degree of experimentation, risk-taking, and a willingness to challenge the status quo. It requires what some might consider 'deviant' behavior – a departure from the well-trodden path.

Think of it this way: if everyone is following the rules to the letter, who is looking for better ways to do things? Who is questioning the assumptions underlying those rules? It's often the individuals who dare to deviate, who see opportunities where others see constraints, who ultimately drive innovation. This is not to say that chaos should reign supreme. Instead, it advocates for a more nuanced understanding of how control mechanisms can be designed to encourage calculated risks and foster a culture of experimentation.

Here are some ways a looser system can help innovation:

Less fear of failure, which allows innovation to blossom.
More room to test new ideas.
A feeling of empowerment that causes employees to take initiative.

However, it's important to acknowledge the potential downsides. 'Deviant' behavior, if not carefully managed, can also lead to undesirable outcomes – inefficiency, errors, or even unethical conduct. The key is to create an environment where 'desired deviance' is encouraged, while establishing clear boundaries to prevent truly detrimental actions. This requires a delicate balancing act and a deep understanding of the organization's culture and values.

Finding the Sweet Spot: Balancing Control and Creativity

The relationship between management control and innovation is not a simple one. It's a dynamic interplay of forces, where 'failures' in control can sometimes spark unexpected breakthroughs. By embracing 'desired deviance,' organizations can tap into the creative potential of their employees and drive innovation. The challenge lies in finding the sweet spot – the balance between maintaining order and fostering a culture where experimentation, risk-taking, and a willingness to challenge the status quo are not only tolerated but actively encouraged. This requires a nuanced approach, a deep understanding of organizational culture, and a commitment to creating an environment where innovation can truly flourish.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1007/s00187-018-00271-8, Alternate LINK

Title: Linking Deviation With Innovation: Behavioral Effects Of Management Control Through The Lens Of A Theory Of Deviance

Subject: Management of Technology and Innovation

Journal: Journal of Management Control

Publisher: Springer Science and Business Media LLC

Authors: Gabriele Faßauer

Published: 2018-10-26

Everything You Need To Know

What is the central argument regarding management control and innovation?

The central argument is that 'failures' in management control can unexpectedly fuel innovation. While traditional management control aims for order and predictable outcomes, a balanced approach that embraces 'desired deviance' can unlock creative potential. The article explores how imperfections in control systems can act as catalysts for groundbreaking ideas, challenging the conventional view that tight control always fosters efficiency and stability.

What is 'desired deviance' and how does it relate to innovation in a business context?

'Desired deviance' refers to the willingness to step outside of established norms and processes within an organization. In the context of innovation, it means encouraging employees to experiment, take calculated risks, and challenge the status quo. This departure from the norm can lead to new ideas, improved processes, and ultimately, creative breakthroughs. It's crucial to differentiate 'desired deviance' from undesirable behavior by establishing clear boundaries to prevent detrimental actions. The key is to balance freedom with control.

How can 'failures' in management control lead to positive outcomes?

'Failures' in management control, such as loosened processes or imperfect adherence to rules, can create an environment where innovation thrives. A less rigid system can reduce the fear of failure, allowing individuals to test new ideas without the risk of severe consequences. This can empower employees to take initiative and explore alternative approaches, ultimately leading to breakthroughs. However, it is important to note that these 'failures' must be carefully managed to prevent them from becoming detrimental to the organization.

What are the potential downsides of embracing 'desired deviance' and how can these be mitigated?

While 'desired deviance' fosters innovation, it carries potential risks. Unmanaged 'deviant' behavior can lead to inefficiency, errors, or even unethical conduct. To mitigate these downsides, organizations must establish clear boundaries and a deep understanding of the organization's culture and values. The key is to strike a balance between encouraging experimentation and maintaining control. This balance ensures that employees feel empowered to innovate without compromising the overall goals and integrity of the organization.

How can organizations find the 'sweet spot' between management control and fostering innovation?

Finding the 'sweet spot' involves a nuanced approach to management control. It requires a deep understanding of the organizational culture, and a commitment to creating an environment where experimentation and risk-taking are encouraged. Organizations must embrace 'desired deviance' while setting clear boundaries to prevent detrimental outcomes. The balance includes designing control mechanisms to encourage calculated risks and a culture where innovation thrives, allowing for unexpected breakthroughs while maintaining order. This approach acknowledges that 'failures' in control can be opportunities for innovation if managed effectively.