• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
C-SuiteNext to Lead

What big companies get wrong about innovation, according to an IBM insider

By
Ruth Umoh
Ruth Umoh
Editor, Next to Lead
Down Arrow Button Icon
By
Ruth Umoh
Ruth Umoh
Editor, Next to Lead
Down Arrow Button Icon
October 31, 2025, 11:05 AM ET
Rob Thomas, chief commercial officer at IBM
Rob Thomas, chief commercial officer at IBMCourtesy of IBM

When Rob Thomas took on the dual role of senior vice president of software and chief commercial officer at IBM, he inherited one of the toughest balancing acts in business: aligning long-term product innovation with short-term commercial performance. Few leaders are tasked with overseeing both the engineering pipeline and the global sales organization of a century-old technology giant.

Recommended Video

Thomas says that combination has sharpened his understanding of why many large companies fail to innovate. “It comes down to one word,” he says. “Iteration.”

Thomas explains that most large organizations are wired for scale, not speed. Their instinct is to map out multiyear road maps and place bold, high-stakes bets—an approach that runs counter to the quick experimentation and continuous feedback loops that true iteration requires. In most big companies, he says, that kind of flexible, trial-and-error mindset simply isn’t part of the culture.

Thomas says IBM is trying to break that pattern by embracing a “build a little, test a little, learn a lot” mentality, which prioritizes feedback loops over grand plans. It’s a shift inspired in part by Jit Saxena, the founder of Netezza, a data-warehousing company IBM acquired in 2010. Thomas recalls that when Saxena began investing in startups, he made a point of meeting with founders every month to ask a single question: What are customers telling you? Over time, those regular feedback loops often led companies to pivot dramatically from their original plans, which Thomas says is precisely how great products are built. Hearing that story, Thomas realized IBM wasn’t operating that way. The company’s approach was too linear, too rigid. “That’s when I realized we had to change how we innovate.”

Changing a century-old culture

Transforming culture inside a global enterprise is no small feat. Thomas says the key lies in identifying and elevating the right internal voices—often those who challenge convention.

At large organizations like IBM, Thomas believes the people who know how to drive real progress are often already inside the company. The challenge for leadership, he says, is to identify them, elevate their ideas, and give them the freedom to act. “They tend to be people that break a lot of glass, meaning they have a strong view of what we should be doing,” says Thomas. “They don’t want to follow all the normal processes. They tend to be louder. Maybe they’re slightly more disagreeable than others, but I think part of our job is to encourage that.”

Encouragement, he says, doesn’t mean chaos, disrespect, or dysfunction, but rather, allowing constructive friction. Thomas believes that giving those employees room to “stick their neck out a little” is the most effective way to drive lasting cultural change.

He points to this year’s Nobel Prize in economics, which emphasized that growth isn’t a company’s birthright. It must be earned through innovation. “You can only innovate if you’re willing to constantly change who you are as a company without sacrificing your principles,” he says. “That’s what every company has to learn.”

Thomas is also obsessed with execution, a trait that he says separates good leaders from great ones. He credits his habit of writing as a key part of that discipline.

Execution as a superpower

Each Monday, he sends a short note to colleagues across IBM to share what’s on his mind and reinforce priorities. Once or twice a year, he writes a longer, white-paper-style memo—typically four to seven pages—to distill his thinking more fully and help align his teams around focus areas and goals.

His approach is modeled in part on what he calls “the Rockefeller habits,” drawn from John D. Rockefeller’s playbook for running Standard Oil. “You only need three things to drive execution: priorities, data, and rhythm,” Thomas says. Priorities keep everyone focused, data shows progress, and rhythm ensures consistent follow-through. Teams lose momentum when goals constantly shift or meetings are reactive, but steady rhythm, he says, is what keeps execution strong.

Thomas believes one of the most valuable yet overlooked habits professionals can develop early in their careers is making time to read. He argues that sustained, focused reading—setting aside space to study, explore ideas, and follow curiosity—is increasingly rare in a world where most people rush from task to task. He often reads for two or three hours before his workday begins.

That curiosity extends beyond his industry. “I love biographies,” Thomas says. When a once-struggling sports team turns things around, he wants to know what the coach did differently. When a chef suddenly captures attention, he’s curious about what makes their approach unique. He’s drawn to examples of people and systems that achieve success in unexpected ways and to understanding the techniques and thinking that drive those results.

That same instinct led him to launch The Mentor, his Substack newsletter. “I read that this company called Substack had raised $40 million for newsletters,” he recalls. “I was like, how is that even possible?” He signed up to see what it was about and ended up writing The Mentor, which began as an experiment and evolved into musings on strategy and culture.

Thomas estimates he spends 30% to 40% of his time reading, whether it’s industry reports, leadership studies, or sports biographies. “The combination of reading deeply and experimenting constantly—that’s what really matters,” he says. “That’s what drives learning, innovation, and leadership.”

At the invitation-only Fortune COO Summit, taking place June 1–2 in Arizona, COOs from the nation’s largest companies will come together to examine how AI and emerging technologies are reshaping operating models, strengthening resilience, and enabling faster and smarter decision-making. Register now.
About the Author
By Ruth UmohEditor, Next to Lead
LinkedIn icon

Ruth Umoh is the Next to Lead editor at Fortune, covering the next generation of C-Suite leaders. She also authors Fortune’s Next to Lead newsletter.

See full bioRight Arrow Button Icon

Latest in C-Suite

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in C-Suite

AstraZeneca CFO Aradhana Sarin
BankingCFO Daily
How AstraZeneca’s 17,000 AI-certified employees are helping it reach a ‘stretch goal’ of $80 billion in revenue
By Sheryl EstradaApril 30, 2026
3 hours ago
mark
ConferencesHospitality
Hyatt’s CEO has built a ‘family’ culture for 20 years. Now he’s leaning on it
By Nick LichtenbergApril 30, 2026
3 hours ago
Aerie built a $2 billion brand by rejecting Victoria’s Secret’s old playbook. Now it wants to win the AI backlash.
C-SuiteRetail
Aerie built a $2 billion brand by rejecting Victoria’s Secret’s old playbook. Now it wants to win the AI backlash.
By Phil WahbaApril 30, 2026
8 hours ago
Google Cloud revenue is now 18% of Alphabet’s business. Is this the beginning of the end of Google’s search identity?
Big TechGoogle
Google Cloud revenue is now 18% of Alphabet’s business. Is this the beginning of the end of Google’s search identity?
By Alexei OreskovicApril 29, 2026
14 hours ago
A man in a suit and tie
InvestingMeta
Meta just bumped its 2026 capex forecast up to as much as $145 billion for the AI boom—and investors flinched
By Amanda GerutApril 29, 2026
16 hours ago
pete hegseth
PoliticsIran
‘A strategic blunder’: Democrats confront Hegseth as the Iran war’s price tag hits $25 billion
By The Associated Press, Ben Finley, Stephen Groves, David Klepper and Konstantin ToropinApril 29, 2026
18 hours ago

Most Popular

Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
3 days ago
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
Economy
Jamie Dimon gets candid about national debt: ‘There will be a bond crisis, and then we’ll have to deal with it’
By Eleanor PringleApril 29, 2026
1 day ago
‘They left me no choice’: Powell isn’t going anywhere—blocking Trump from another Fed appointee
Banking
‘They left me no choice’: Powell isn’t going anywhere—blocking Trump from another Fed appointee
By Eva RoytburgApril 29, 2026
20 hours ago
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
AI
‘The cost of compute is far beyond the costs of the employees’: Nvidia executive says right now AI is more expensive than paying human workers
By Sasha RogelbergApril 28, 2026
2 days ago
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
Energy
‘Take the money and run’: Johns Hopkins economist Steve Hanke on why the UAE quit OPEC
By Shawn TullyApril 29, 2026
1 day ago
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
Big Tech
Google Cloud revenue is now 18% of Alphabet's business. Is this the beginning of the end of Google's search identity?
By Alexei OreskovicApril 29, 2026
14 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.