5 ways to establish a corporate-innovation culture at work
Executive chairman of IBM, Ginni Rometty, said it best when she stated that ‘the only way you survive is to continuously transform into something else,’ and that ‘it’s this idea of continuous transformation that makes you an innovation company.’ In 2020, no company should be resting on their laurels and failing to innovate, because as the market keeps growing, the consumer wants and needs keep changing, and disruptive technologies influence and alter the way we live, the more likely it is that they will get left behind while their more future-focussed competitors forge ahead towards market success.
It’s been well established that innovation should be of top priority to companies and corporations that want to go the distance. In fact, according to research conducted by McKinsey, 80% of executives believe that traditional business models are at risk, with 84% agreeing that innovation is an important part of any growth strategy. One of the biggest hurdles in their way, however, is corporate culture itself. Between internal politics and rigid organisational structures coupled with a lack of time and limited resources, dealing with the here-and-now often trumps thinking ahead (and often at the company’s expense when it comes to long-term growth and prosperity). Other common issues include resistance to change and not wanting to seek the help of startups, wanting to keep ideation and production in-house. A study conducted by Harvard Business Review also indicated that companies that encourage innovation have happier and more productive employees, with 36% higher rates of productivity and three times more creativity.
This is why it’s so important that business leaders cultivate and nurture a corporate-innovation culture and one that is conducive to big ideas, out-the-box problem-solving and technological advancement, in the workplace. Here are five ways to do it so that your brand stays on the pulse and remains relevant in our ever-changing world.
1. Innovation should be approached in a multi-faceted way
While many people think that innovation is just having an idea and bringing it to life, it should be seen as a long-term strategy rather than a quick-fix to a consumer problem, or a way to get ahead of the competition (until such time as they catch up). It is something that should be implemented company-wide and, as a starting point, can be broken up into the ‘four Ps’. According to the founder of New Markets Advisors, Stephen Wunker, these letters stand for-profit models, processes, products and policies, and focussing on these key areas will help to guide your innovation journey.
2. Company leaders should be on board and driving innovation efforts
Innovation isn’t something that should be a temporary or one-time venture, but rather a shift in company mindset. And shifts of this nature have to come from — or at least be enthusiastically encouraged by — those at the top. Directors and CEOs need to put innovation front and centre when it comes to their corporate strategy so that this future-focused outlook can have a trickle-down effect and influence all areas of the business and clarify its direction.
3. Employees should be empowered
No one likes to have their ideas and suggestions shut down. It has also been proven that employees who are allowed to make decisions and take action are happier and perform better because they are more invested in the work they produce. This requires that business leaders foster an idea-sharing growth-minded environment and keep criticism to a minimum. If employees are worried that their concepts will be ignored or ridiculed, they are less likely to want to bring any potentially-exciting and innovative ideas to the table, which can, ultimately, stifle workplace creativity.
4. Establish context-specific innovation metrics
It should go without saying, but new ventures cannot be held to the same level as long-standing organisations. As such, the metrics that are used to measure the success of your initiative, and the staff involved in it, shouldn’t be the same as it would be in the traditional corporate environment. Performance goals and employee compensation packages should be redefined so that they are context-specific rather than being based on conventional models, and be attainable enough to incentivise long-term innovative thinking.
5. Create a safe space for experimentation and failure
When trying to foster a culture of innovation, a fair amount of failure is going to come along with it, and this is something that everyone, from business leaders to lower-level staff needs to be okay with. Fear of trying due to the prospect of failure is the ultimate way to cripple innovation efforts, and it doesn’t bode well when it comes to nurturing an environment that encourages creative thinking. Rebrand failures as learning experiences that benefit the entire company, and remember that if you aren’t failing much, you probably aren’t doing enough innovating.
