What Santa Claus Can Teach Us About Innovation That Actually Lasts
Think about the last time you saw a "traditional" Santa. Whether he’s on a Coke bottle, a holiday card, or sitting in a mall, he’s instantly recognizable: the red suit, the white beard, the twinkle in his eye. We take this image for granted, but as a student of innovation, I see something much more complex. Santa isn't just a holiday figure; he is a centuries-old masterclass in RCM—Reuse, Commonality, and Modularity.
It sounds like a mouthful of "geeky" engineering jargon, doesn't it? But these principles are actually the secret ingredients behind the world’s most enduring icons.
RCM: The "Secret Sauce" of Staying Power
In my work with innovators, I’m always looking for the "how" behind the "why." RCM is a brilliant framework for understanding how an idea transforms from a local story into a global phenomenon:
- Reuse: Taking an existing idea or system and giving it a new life in a different context.
- Commonality: The "heart" of the design. These are the standardized, non-negotiable pieces that make a brand instantly recognizable.
- Modularity: Breaking a system into smaller, interchangeable parts. This is what allows you to add "extras" (like Rudolph or the North Pole) without changing the core essence of who Santa is.
Why I Study Innovators (Even the Ones in Red Suits)
As you know, I love to interview entrepreneurs to uncover the "backstory" of their success. My first "interview" with Santa happened decades ago—the year he brought me a puppy! He had such presence, such intuition. But as I grew up, I began to view him more as a legend than a leader.
However, a recent look at his "business model" gave me a bit of a shock. Spoiler alert: Santa Claus is real. He is real because he embodies a desired reality. He has survived and thrived by creatively reusing the world’s most powerful elements: human needs, ancient stories, history, theology, and even commercial incentives.
The Ultimate Value Proposition
All successful innovations need a value proposition that resonates with a critical mass of people. Think of the smartphone; it meets a basic need for connection.
Santa’s value proposition is even more fundamental: The chance to participate in goodness, wisdom, and a power beyond our ordinary existence. He knows us, he loves us, and he likes to surprise us. For centuries, we’ve been looking for a way to package that feeling. Santa’s "brand" does it in a single image.
But he didn't appear out of thin air. He was built through a beautiful lineage of reuse.
A Legacy of Fusing and Refusing
Santa’s "prototype" started in the 4th century with St. Nicholas, a Turkish bishop who secretly provided dowries for poor families. As his story spread, the Dutch called him Sinter Klass.
When the Protestant Reformation arrived, many stopped venerating saints, but they didn't want to lose the tradition of generosity. Martin Luther advocated for moving the gift-giving to December 25th, suggesting the name Christ Kind (which eventually evolved into the nickname Kris Kringle).
Then, Northern Europe added a touch of the supernatural. The Norse god Odin—a wise, bearded man who rode an eight-legged horse across the sky—contributed the "supernatural transportation" module to the brand.
Codifying the Brand: From Poems to Platforms
By the 1800s, the "Commonality" of Santa was being locked in. Clement Moore’s famous poem gave us the reindeer and the chimney. Thomas Nast’s illustrations gave us the North Pole workshop. By the 1930s, Coca-Cola used these elements to solidify the image we know today: the red coat, the plump face, and the jolly disposition.
Once that "Core Platform" was stable, the Modules began to pop up:
- Rudolph was a later addition that fit perfectly into the existing sleigh "system."
- The "Naughty or Nice" List became a behavioral module during the Victorian Era.
- Elf on the Shelf is a modern extension of that same modular attribute.
Even accidents can become part of the innovation! In 1955, a Sears ad typo accidentally gave kids the number to the Continental Air Defense Command (now NORAD) instead of Santa. Rather than shutting it down, Colonel Harry Shoop leaned into the "mistake," creating the Santa Tracker that we still use today.
5 Lessons for Your Next Big Idea
Santa’s growth offers us a few "gifts" for our own innovative journeys:
- Meet the Deep Needs: No matter how technical your product is, it scales better if it touches a core human desire.
- Borrow the Seeds: Combining ideas from different industries or cultures is one of the most efficient ways to innovate.
- Adapt, Don't Abandon: Negative feedback or changing times don’t always mean you need to start over; sometimes you just need a new "module."
- Repurpose the Accidents: Mistakes can become your most beloved features if you have the vision to reframe them.
- Stick to the Core: Protect the elements that deliver your primary value, and let the "spin-offs" grow naturally around them.
As we step into this brand-new year, I hope these lessons inspire you to look at your own projects through a lens of reuse and creativity. May your January be the start of a peaceful, prosperous, and brilliantly innovative year!
