Beyond incremental and disruptive: Discovering the 3rd way of innovation
What becomes possible when you step beyond traditional innovation approaches and discover a path that creates breakthrough results with less risk?
Most organisations know two main innovation strategies: incremental innovation that gradually improves existing offerings, and disruptive innovation that fundamentally changes markets. But there's a third approach—one that's both powerful and practical for service organisations ready to create meaningful impact.
The Hidden Innovation Strategy That Changes Everything
We call it the '3rd Way of Innovation', which builds on David Robertson’s research. He studied companies like LEGO, Gatorade, and GoPro, which achieved strong results using similar approaches. Rather than overhauling their core products, they innovated around them—making their offerings more accessible, engaging, and valuable for customers.
The beauty of this approach is that it builds on what already works and creates new possibilities for connection and impact.
A Real Example: From Insurance Provider to Strategic Partner
We witnessed this transformation when a midcorp insurance company faced a critical challenge. Their largest customer—moving from government to private sector—demanded more than traditional insurance services: "We need you to anticipate fundamental changes in how we operate, not just handle claims and adjust premiums."
Competitors circled with lower rates. The customer is prepared to increase deductibles dramatically to reduce costs. What had been a comfortable, predictable relationship now faced a serious threat.
Rather than competing on price or overhauling their insurance products, our client chose the 3rd Way approach. They innovated around their core expertise by:
Expanding stakeholder conversations beyond the usual key contacts
Initiating experimental collaborative projects to explore new ways of working together
Leveraging their networks to connect the customer with additional resources
The result? They evolved from service provider to strategic partner, gaining access to board-level conversations about operational risk—a level of partnership that had been unimaginable just months before.
Why This Matters
This example illustrates what we're noticing across service markets: organisations with strong core capabilities often struggle to demonstrate their full value to clients in today's complex environment.
Instead of completely reimagining your service delivery, you innovate around it. You create touchpoints, experiences, and support systems that make your expertise more accessible and its impact more visible. This transforms how clients experience and value your partnership.
From Service Delivery to Meaningful Impact
We learn alongside leaders that the most sustainable innovations emerge from understanding what already works within your organisation. The 3rd Way of Innovation honours this principle perfectly.
Consider these possibilities that emerged from our client experience:
What if your expertise became the foundation for expanded strategic conversations with clients?
How might experimental collaboration reveal new value propositions you hadn't considered?
What becomes possible when you leverage your professional networks as part of your service offering?
Like our insurance client, you don't need to change what you do—you need to enhance how clients experience and engage with your expertise.
The MCH Approach: Exploring Innovation Through Collaboration
We integrate David Robertson's 3rd Way of Innovation concepts with our change leadership expertise. Using LEGO® Serious Play® facilitation, we create safe spaces for your team to explore how these innovation principles apply to your context.
This approach doesn't impose external frameworks. We discover alongside you how to unlock potential within your organisation, creating conditions for breakthrough thinking that feels both ambitious and achievable.
What We're Curious About
As we continue exploring this methodology with mid-sized service organisations, we ask: What patterns do you notice in how your clients experience and value your expertise? How might the 3rd Way of Innovation help you strengthen those connections while building new possibilities for impact?
We discover that organisations ready to experiment with this approach often innovate their offerings while evolving their entire relationship with clients—from service delivery to true partnership.
Ready to discover what becomes possible when you innovate around your core strengths? Explore how we can create conditions for the meaningful change your organisation is capable of achieving.