I Read McKinsey on Innovation—Here’s the 4-Step Pattern I See in SMBs
- Brandon Alsup
- 2 days ago
- 4 min read
New Products & Services Strategy
I recently read McKinsey’s article on revolutionary innovation. It’s full of bold examples—electric vehicles, CRISPR, blockchain, business model overhauls. These are the kinds of stories that fill keynote stages and shareholder letters.
But as someone who works inside the infrastructure of over 100 organizations—insurance agencies, municipalities, dental clinics, nonprofits—I had a different reaction: That’s not what most innovation looks like.
It’s not that McKinsey is wrong. It’s that their framework describes a specific kind of innovation: capital-intensive, high-risk, industry-shaping innovation. That’s the world of Fortune 500s and startups chasing unicorn status.
But what about the rest of us? What about the companies with 25 to 250 employees—serving their communities, growing steadily, building something durable?
Those companies are innovating too—just in quieter, more grounded ways.
What Innovation Actually Looks Like in SMBs
Let’s be honest: most SMBs aren’t chasing disruption. They’re evolving.
A new offering from a Kosh Solutions client might look like:
An insurance firm in Santa Fe adding cyber liability coverage
A dental clinic in Las Cruces expanding into cosmetic dentistry
A manufacturing shop in El Paso rolling out custom-configured parts
These aren’t market revolutions but rather evolutions in products and services.
Sometimes there’s a soft launch: an email to clients, a new workflow, a promotion. More often, innovation and development are a leadership decision backed by shared documents, operational tweaks, and team alignment.
Just because you didn't come out with a product that saves the planet (or destroys it!) doesn't mean a failure to innovate. It’s a more sustainable, repeatable form of it.
The 4-Step Innovation Pattern I See in SMBs
Over the years, I’ve noticed that successful innovation—at least in organizations that want to grow without chaos—tends to follow this pattern:
Leadership Sees an Opportunity
Whether it’s a new customer need or an emerging industry trend, the spark of an idea percolates to the owners or executives who then confirm that they have identified something they want to offer or improve.
Teams Align Around Delivery
No big launches. No rebrands. But thoughtful coordination. Operations, billing, and front-line staff understand the what, why, and how of the new service or product.
Systems Adjust Quietly in the Background
Because technology is virtually inseparable from business operations, this is the IT moment. Infrastructure is updated, permissions managed, workflows rerouted, and new tools secured. This step often goes unnoticed—and that’s a sign it’s working.
Feedback Loops Reinforce or Refine the Change
A few weeks or months in, the best teams look at what’s working, what needs refinement, and what’s ready to scale. Innovation becomes iterative, not episodic.
Technology the Critical Partner in Innovation Whether you’re adding new services in Santa Fe, updating workflows in Las Cruces, or scaling operations in Albuquerque—the success of any new product or service almost always depends on IT. Behind every form, quote, customer interaction, or data process is a digital system that needs to adapt without breaking. That’s where a managed service provider in New Mexico makes the difference. We’re not just fixing things—we’re helping teams evolve without disruption.
What SMBs Can Take from the Big Players
McKinsey’s article isn’t wrong—it’s just optimized for companies with entire departments dedicated to innovation.
Still, small and midsized businesses can absolutely learn from how bigger organizations execute change - let's be honest these organization became behemoths because they are great at innovation.
Align Teams – Miscommunication is where innovation fails.
Document Changes – Even a shared checklist can save hours of troubleshooting.
Budget for Rollout – Even small services need time and resources.
Think in Systems – Ideas are easy. Execution is where they break.
What Can Small Orgs Safely Ignore?
You don’t need to chase what doesn’t serve you:
You don’t need a dedicated innovation lab.
You don’t need a press release.
You don’t need disruption.
You need infrastructure, people, and consistency. That’s how real businesses innovate.
A Real-World Example: Quiet Innovation in Santa Fe
A long-standing insurance firm wanted to offer cyber liability insurance. No fanfare. No campaign. Just a smart expansion based on customer needs.
Behind the scenes?
A new secure intake process
Workflow updates
Staff training on compliance
Remote access set up for hybrid quoting
Not flashy. But foundational.
And that’s what made the innovation stick.
Final Thought: Innovation That Stays Quiet—And Works
McKinsey celebrates the companies that change the world. I work with the ones that serve it—day after day, just a little better than before.
And what I’ve learned is this:
Innovation at SMB scale isn’t about spotlights. It’s about having the infrastructure, habits, and mindset to roll out new ideas with clarity and confidence.
That’s not revolutionary.
That’s just really, really good business.
Disclaimer
The information contained in this communication is intended for limited use for informational purposes only. It is not considered professional advice, and instead, is general information that may or may not apply to specific situations. Each case is unique and should be evaluated on its own by a professional qualified to provide advice specifically intended to protect your individual situation. Kosh is not liable for improper use of this information.