WHAT IS IT AND HOW WAS IT CREATED
The Compass is an innovation tool designed to guide organizations through an iterative process of tackling complex challenges. Similar to how a physical compass aids in navigating unfamiliar terrain, Innovation North’s Compass is intended to help organizations navigate the growing complexity and disruptions they face using a systems approach. The Compass was developed over five years in collaboration with leaders from 30 top Canadian companies and experts from Ivey Business School.
WHY USE IT
We are living in an era of unprecedented disruption. As people, products, and data become increasingly interconnected, the challenges we face are becoming more systemic and complex.
Traditional approaches to innovation often overlook the ripple effects of actions within complex systems. At Innovation North, we believe organizations must take a systems approach to innovation, going beyond profits to consider their broader roles within interconnected systems. That is why we developed the Compass, an innovation tool designed to help organizations address complex challenges while keeping the system in view.

The Compass is unique from other innovation or problem-solving tools because:
- It keeps the end in view throughout the process, guided by a North Star and a Near Star that represent the organization’s long-term purpose and near-term goals.
- It is highly iterative, allowing movement among its four spaces: Problem, Awareness, Ideas, and Actions.
- It encourages collaboration, particularly in the Ideas and Actions spaces, where innovators are prompted to work with others beyond their organization to tackle challenges together.
There is no single action that can solve complex problems. Instead, these challenges often require multiple, interacting solutions, which we call an ecology of actions. These are typically small nudges, tests, or pilots that together can catalyze new products and services.
The Compass also supports educators and students in exploring innovation, systems thinking, and sustainability.
HOW TO USE IT
1. Start with the North Star
If you’re just embarking on an innovation project, start by defining your organization’s North Star. This sets a clear strategic direction and keeps your efforts aligned, ensuring you don’t veer off course. Each action should move the organization toward this long-term goal that extends beyond profits.
2. Iterate through Each Space of the Compass
Once you’ve defined your North Star, begin working through the Compass. Where you start is flexible, though our team typically begins by framing the problem. On your first pass, move steadily through each space: Problem, Awareness, Ideas, and Actions. After that initial round, navigate back and forth among the spaces, spending the most time deepening awareness
As you explore the system landscape, you’ll gather insights that guide your next steps.
3. End with the North Star
Once you have identified the actions you want to take, revisit your North Star to ensure that your efforts remain aligned and you haven’t lost your way.
Watch the video below to see the Compass applied to the challenge of product returns: