In Praise of Process Innovation, the Idea Economy's

By Stephanie Mehta, CEO and chief content officer of Mansueto Ventures, parent of Inc. and Fast Company @stephaniemehta

Hello and welcome to Modern CEO! I'm Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning.

Members of the media -- myself included -- love a great product innovation story. We gush over new platforms that transform the way we, say, listen to music (Spotify) or design presentations (Canva).

We love gadgets that defy expectations. Give us technology that makes our lives easier, such as Google's latest Pixel phones, which are chock full of artificial intelligence (AI)-powered photo editing features. We're wowed by new ways to conserve resources, such as Moen's "smart" faucets, fixtures, and networks, which promise to reduce wastewater.

Change the playbook

But process innovation -- dramatically rethinking and improving the way a company makes products or delivers services -- can be just as powerful. Every year Fast Company recognizes hundreds of the world's most innovative companies. Tucked in among the shiny new devices and cool services are dozens of examples of organizations that have applied breakthrough thinking to systems and strategy.

"We understand that what happens behind the scenes at companies can be groundbreaking," says Amy Farley, Fast Company's executive editor, who directs the Most Innovative Companies franchise. "That's why we also use the program to recognize innovation in process and strategy -- those crucial shifts that allow companies to dramatically improve their operations, reach new customers, and extend their missions." Farley cited a few standouts on the 2024 Most Innovative Companies list:

The J.M. Smucker Company, No. 12 on the list, was recognized for rethinking its manufacturing process and restructuring its business to meet growing demand for its Uncrustables frozen peanut butter and jelly sandwiches.

Chipotle earned its No. 28 spot on the list for evolving its processes to add menu options faster and for leaning into its website and app to launch new items with minimal disruptions to restaurant staff.

Vanta, ranked No. 35, caught the editors' attention for improving its trust management platform, making it easier for customers to monitor security and privacy procedures, assess risks, and produce the reports they need to ensure compliance. "Fast Company recognized Vanta in 2024 not for a single hero product or feature, but for its ability to continuously iterate to meet the moment," Farley says.

Companies are deploying some of the most exciting tech advancements of our time -- including AI, augmented reality, and the Internet of Things -- to improve production and workflows. Earlier this year, Fast Company highlighted The Smart Factory, a collaboration between Deloitte and Wichita State University, where manufacturers can learn how to apply emerging technologies to their processes.

Improving impact

Process innovation needn't just be about improving internal outcomes. The Bill and Melinda Gates Foundation, for example, often shares process innovations with partners, who in turn can expand or accelerate healthcare or aid. The foundation recently partnered with UNICEF and others to address challenges faced by makers of ready-to-use therapeutic food (RUTF), an energy-dense paste that treats child malnutrition.

According to the foundation, UNICEF buys much of the world's RUTF but has lacked a process to help producers expand capacity, leading to inconsistent supply. The foundation launched a financing facility that helped manufacturers get the capital they needed to expand production; last year UNICEF provided 9.3 million children with treatment, up 27 percent from 2022.

At a time when rising costs and labor shortages may be constraining the products and services innovation engines at some companies, process innovation may be the key that unlocks solutions and growth.

Has your company become better, faster, stronger?

Has your company engaged in process innovation this year? Consider telling your story to Fast Company by applying for the Most Innovative Companies awards. (An editor reads every application!) The early-rate deadline is August 23.

Read more: process innovation

• Inside the process changes that led to fresh burgers at McDonald's
• Steve Jobs on content versus process
• How Snap's Evan Spiegel learned to love process

Photos: afe207/Adobe Stock; Unsplash (belt, wireframe, marker)