The Power of Subtraction: A Lesson in Innovation

A note to young leaders.

Legend has it that, in the 1960’s, an entrepreneur approached Swan Vesta – then Britain’s largest matchbox manufacturer – with a bold idea.

“I’ve found a way to cut your manufacturing costs by 15% and speed up your production, without denting sales. I’ll share it with you – but I want a 2% royalty on all future revenues, for as long as you use my idea.”

Intrigued but sceptical, Swan Vesta’s management spent months investigating. They scrutinised every element of the production process – materials, labour, supply chains – but couldn’t find the breakthrough.

Eventually, curiosity got the better of them. They signed the deal.

“The idea”, the entrepreneur said, “is to remove one of the striking strips.”

At the time, every matchbox had two red phosphorus strips – one on each side. No one had ever questioned it. It was simply the way things were done.

Swan Vesta implemented the change immediately and the entire industry soon followed suit. To this day, almost all matchboxes carry just one strip.

Look for the second striking strip in your work – product features no one uses, internal processes no one questions.

Innovation is more often subtraction, than addition.