#19 - Why Innovation Fails: The Hidden Identity Cost of Change w/ Federico Malatesta

In this episode, I’m joined by Federico Malatesta, executive transformational coach and author, who works at the intersection of leadership, identity, and organizational change. Federico helps senior leaders navigate moments when the old story no longer works — and a new one is trying to emerge.

This is not an episode about CVC, venture building frameworks, or innovation toolkits.

It’s about the uncomfortable reason why innovation and transformation fail even when the strategy is sound: leaders underestimate the identity cost of change.

We explore innovation not as a portfolio problem, but as a psychological, political, and narrative one — and why new ventures often trigger resistance deep inside the organization long before they fail in the market.

Together, we strip innovation down to its human core: how the brain resists novelty, how companies operate on implicit stories, and why middle management becomes the immune system that attacks anything that threatens the status quo.

In this episode, Federico shares insights on:

🧠 Why the brain is wired to resist innovation

🧩 Innovation as identity transformation, not an additive initiative

🧬 “Narrative antibodies” and how organizations kill new ventures

🏛️ The hidden political and reputation risks leaders face when sponsoring innovation

📉 Why innovation doesn’t fail on ideas or execution — but on identity

🧭 Coaching leaders through identity transition, not just strategy change

We close the episode by reframing innovation leadership as contextual intelligence — the ability to read shifting power, incentives, and stories — and why storytelling without operational clarity is one of the fastest ways to lose credibility inside a large organization.

Resources:

• Open Road Ventures Newsletter

• Federico Malatesta Website

🎧 Follow the podcast for grounded conversations on what actually shapes innovation and corporate venturing — beyond the frameworks, beyond the hype.