There’s a well-known parable about a frog placed in a pot of cool water. At first, the frog is comfortable, unaware as the heat is slowly turned up. By the time the water reaches a boil, the frog doesn’t realize the danger until it’s too late.
In this context, we use this parable as a thought experiment, with no frogs being harmed in the process. Using it this way allows us to focus on the metaphorical lessons about gradual change and its unnoticed dangers, rather than the literal details, which might detract from its broader relevance.
This story mirrors what happens to many companies as they grow. Early on, they thrive in an environment that demands constant innovation and bold decision-making. But as they expand, they often hire managers and establish systems that prioritize maintaining the status quo. The culture shifts slowly, almost imperceptibly, until the organization finds itself stagnating—its innovative spark extinguished.
In the beginning, companies thrive in an environment akin to the frog’s initial comfort in cool water. Challenges are urgent, resources are scarce, and every decision feels make-or-break. This creates the perfect conditions for innovation: teams must think creatively, move quickly, and embrace risk.
Consider a startup launching its first product. There is no established playbook—just a shared drive to succeed. For instance, think about a small team of developers building a revolutionary app with limited resources. Every team member wears multiple hats—one day coding, the next pitching investors—and they are united by a shared mission to deliver a functional product. Their willingness to take bold risks and embrace constant change often leads to groundbreaking innovation.
As companies grow, the temperature of their environment starts to change. Processes become formalized, additional layers of management are added, and the focus shifts from bold experimentation to predictable outcomes. For example, decision-making authority may become concentrated at higher levels, creating bottlenecks that slow down innovation. Similarly, rigid approval processes or excessive reliance on standardized workflows can discourage employees from proposing novel ideas. These changes, while intended to bring stability, often unintentionally limit the agility and creativity that drive breakthroughs. The gradual shift in priorities can go unnoticed, much like the frog in the slowly warming water.
New managers are often hired for their ability to maintain stability rather than drive innovation. This can lead to challenges when managing high performers or workloads that are not easily reduced to simple metrics. High performers often thrive on autonomy, creative problem-solving, and unconventional approaches, which can be difficult for some managers to handle. Similarly, tasks that involve qualitative outcomes, long-term projects, or innovative thinking may not align with metrics-focused management styles. Over time, this misalignment can discourage high-performing employees and stifle the kind of creativity and initiative that drive innovation. Managers’ focus on meeting quarterly targets, avoiding risks, and preserving what works trickles down through the organization, creating a culture of risk aversion and incremental thinking. The company’s ability to innovate—once its greatest strength—is dulled by a growing preference for the status quo.
The slow-boiled frog parable reflects how gradual changes in priorities can go unnoticed until they’ve fully taken hold. Here are some reasons why companies experience this shift:
By the time the water is boiling, it’s often too late to reverse course.
To avoid becoming the proverbial slow-boiled frog, companies must consciously work to maintain their innovative edge as they grow. Here are some strategies to keep the heat from rising unnoticed:
By making innovation a core part of the organization’s DNA, companies can avoid falling into the trap of complacency.
The parable of the slow-boiled frog serves as a cautionary tale for companies. Growth, while exciting, can bring with it a gradual shift toward risk aversion and stagnation. Leaders must remain vigilant, ensuring that the heat of bureaucracy doesn’t rise to the point where the company’s innovative spirit is extinguished. For example, leaders can implement regular innovation reviews, where teams present bold ideas for feedback and potential funding. Additionally, creating innovation task forces or skunkworks teams allows for experimentation without being bogged down by standard processes.
By recognizing the danger early and taking proactive steps to foster a culture of creativity and bold thinking, companies can thrive in any environment. The challenge isn’t just to grow—it’s to grow while staying dynamic, adaptable, and committed to innovation.