How can software leaders help their teams innovate in orgs that are currently trimming costs? Is there a way to make room for experimentation without exceeding a tight budget?

I believe we should focus on process innovation. For example, if we are following Agile, we can consider transforming to a DevOps model to further motivate the team. Another approach is to carve out time, rather than budget, for experimentation — such as dedicating half a day on Fridays to learning sessions. During this time, team members can learn new things, do research, or innovate outside of their regular work responsibilities.

We can also use our own data and pain points as opportunities for innovation. When we solve a problem or address a pain point, it becomes a measurable achievement that benefits the team. It is important to celebrate small wins, even if the issue solved is minor. Recognizing these achievements creates a positive environment and encourages further innovation.

Experimentation does come with a cost. What I see in the industry is that companies are encouraging employees to equip themselves with cutting-edge AI products and leverage them in actual business use cases. This is an innovation update — having an AI agent assist in building code so products can be shipped sooner and faster. It also helps materialize ideas into products more quickly. With agentic software now available, there is definitely room for experimentation. We can leverage these tools to expand creativity and turn ideas into shippable products, even within cost constraints.

This is a great question. Personally, I believe fostering innovation begins with hiring practices. I aim to hire self-motivated, self-starter individuals who are constantly keeping their skills sharp and innovating on their own. If this is not already happening, I make it a point to create space for open discussions about learning and growth within the development team. This not only showcases that we value innovation, but also motivates those who may not be practicing it to adopt the habit.

My main concern is ensuring that innovation does not get squeezed into production work in a way that introduces risk. I prefer to identify side projects or low-risk initiatives that can serve as innovation incubators. This approach allows for experimentation without impacting critical production timelines or budgets.