As we evolve our approach to developing our Executive Director level leaders at MSCI, we’re placing increasing emphasis on their ability to drive change and build the conditions for innovation to thrive. Why? Because it’s about how we create meaningful impact for our clients and unlock opportunities to scale and accelerate growth. It’s the difference between being a follower – or being an industry leader.
Innovation doesn’t happen by chance. It happens when we focus our attention where it matters most, when we experiment and take smart risks to accelerate progress. It happens when we are deliberate about creating the right conditions for innovation to flourish.
Focus innovation where it matters most
The most important step is often deciding where to focus – where innovating creates the most value. It isn’t always about big, bold ideas. Often, it’s about continuous improvement, and identifying where small shifts can incrementally compound into a big improvement. If it feels like we don’t have time to innovate, a good first move is to focus on how work gets done to increase the team’s capacity. Other times, it is about taking inspiration from clients to bring forward a bold, disruptive idea. A calculated risk that enables us to scale rapidly or unlocks the next must have solution or growth engine. Effective leaders set clear priorities where to focus so their teams know where to channel creative energy and why it matters.
Ask:
Could a small improvement unlock efficiency or capacity?
Is there a high-value opportunity we’re not yet acting on?
What are the biggest friction points holding us back?
Let’s be clear: taking risk is not the same as being reckless. Smart-risk taking starts with understanding the stakes – what we stand to gain, what we risk losing and what it might cost us if we do nothing. It’s easy to underweight the cost of inaction. Great leaders assess the options, prioritize the most impactful opportunities aligned to strategic goals and have the courage to act where it counts.
Ask
What’s the upside if this works?
What’s the downside if it doesn’t?
And what will it cost us if we do nothing over the next 18 months?
Too often, we wait for the perfect plan. But innovation doesn't thrive in perfection – it thrives in progress.
One of the most powerful behaviors a leader can model is the practice of prototyping and experimentation to accelerate innovation. Testing ideas and learning from what didn’t work shifts the culture towards a mindset of curiosity learning and continuous improvement. This new mindset creates faster, more deliberate progress towards impactful outcomes.
Ask yourself:
How are we making space for experimentation and prototyping?
What are we learning from what isn’t working?
Are we creating enough small wins to build momentum?
At MSCI, we encourage a disciplined innovation process: brainstorm, prioritize, prototype, test and refine. Tools like AI can also help accelerate early-stage thinking, making it easier to explore and shape ideas quickly.
Innovation is rarely a single leap – it’s built through repeated cycles of building, testing, learning and refining. It’s a discipline. And the team takes its cues from its leaders. When we share our own learnings, we give others permission to do the same.
Innovation can’t thrive in isolation. Connection fuels creativity and collaboration creates real impact.
Effective leaders create space for different ideas and invite questions, speak openly about failure, share stories of what didn’t work and what they learned. That kind of transparency builds psychological safety and empowers teams to contribute ideas and try something new without fear.
Trust is the real accelerator of innovation. The most effective leaders:
Invite challenge and curiosity
Create room for different ideas and ways of thinking
Speak openly about risks, mistakes and what they’ve learned
Celebrate progress, as well as outcomes
When people know they are safe to speak up and try something different, innovation follows.
Leadership isn’t about having all the answers. It’s about creating the conditions where great answers can emerge. You don’t need to be the most creative person in the room to lead innovation. You just need to be the one who listens, challenges, connects, and creates space for others to do their best thinking.
Innovation comes from everyone. So be the spark. Ask better questions. Focus on what matters. Share what you’re learning. And create the environment where your team can experiment, improve, and deliver real impact.
Stop waiting for innovation to happen. Start it.