In this episode of Innovation Insider, Adam Novak cuts through the jargon that so often surrounds innovation and brings it back to something simple. As he puts it, “innovation in its simplest form is just making something better.” That clarity sets the tone for a conversation that is deeply practical, grounded in real stories and refreshingly honest about both the wins and the mistakes.
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Start with the problem, not the tech
Adam’s strongest message is that innovation goes wrong when organisations start with assumptions. He shares the familiar example of a major IBM Watson chatbot project that was celebrated on stage before it had proven anything in the real world. When the results finally came in, Adam recalls discovering that “the cost to serve was about four grand an interaction and it failed miserably.”
The issue wasn’t the technology. It was the thinking. As Adam says, “start small, have a crack, and be really clear on the problem you are trying to solve.” When teams build from actual customer intent rather than internal opinion, everything becomes easier, faster and more effective.
“Start small, have a crack, and be really clear on the problem you are trying to solve.”
Listen, learn and iterate
Adam’s background in customer insight makes him a natural advocate for feedback. One of the standout stories comes from his early days analysing survey results for a dental clinic.
Multiple members complained that “the walls were paper thin and you could hear the patients next door screaming.” When that feedback was presented to the clinic, they moved the entire operation. That one moment triggered a series of innovations, from simple provider search tools to solutions helping members choose specialists with no out of pockets.
It is a perfect illustration of his view that “successful innovation always starts with the voice of customer and what they need.”
Failure is part of the work
While failure is often avoided, Adam argues that the opposite is needed. He points to leaders like Jeff Bezos who wanted Amazon to be “the number one organisation in the world at failing.” That mindset is not about recklessness. It is about learning fast, testing assumptions and cutting wasted time.
Adam also calls out a common trap. “The biggest risk is the time taken to make the decision,” he says. Organisations can spend months polishing ideas instead of testing them in days. By the time they reach a launch point, sunk cost thinking takes over and teams push ahead even when early signs of failure are obvious.
Smaller funds have real advantages
Although smaller member health funds face heavy regulatory loads, Adam believes they also have significant strengths. “There are less layers and you can almost wrap your arms around the organisation,” he explains. Decisions are faster, collaboration is stronger and teams can pivot quickly without bureaucracy getting in the way.
That agility becomes a genuine advantage when paired with a strong cultural anchor.
“There are less layers and you can almost wrap your arms around the organisation,” Adam Novak on the unique advantages of innovating inside smaller organisations.
A North Star that shifts culture
At CBHS, the organisation has rallied around a bold goal, to become number one for member satisfaction. Adam says this has “galvanised the entire organisation” and sparked a cultural shift. Teams are challenging the status quo, questioning their purpose and aligning day to day work with a clear, shared direction.
That focus is now reshaping how CBHS tests ideas, prioritises initiatives and embeds innovation within each department.
Innovation is deeply human
Despite the rapid rise in digital tools and AI, Adam believes human connection will remain a powerful differentiator. “If you bet on things that never change, human connection is the one,” he says. As more organisations lean into automation, the ones that combine technology with genuine empathy will stand out.
This episode is full of insights for leaders wanting to make innovation real rather than theoretical. Start with the customer. Understand the problem. Test early. Learn quickly. And keep your focus on the people you serve.
“If you bet on things that never change, human connection is the one,”
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