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How do you incentivize innovation in your company?

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Innovation is the lifeblood of any successful company, but how do you foster a culture of creativity and experimentation among your employees? How do you reward and recognize innovative ideas and behaviors, without creating a competitive or risk-averse environment? In this article, you will learn some practical tips and strategies to incentivize innovation in your company, based on the principles of people management.

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Lisa Friscia

I help leaders & their orgs thrive through growth and change by aligning strategy, talent & equity | Fractional Chief…

1 Define innovation

The first step to incentivize innovation is to define what it means for your company and your team. Innovation is not just about coming up with new products or services, but also about improving processes, solving problems, and adding value to customers. Innovation can be incremental or radical, depending on your goals and resources. You need to communicate your vision and expectations for innovation clearly and consistently, and align them with your company's mission and values.

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2 Encourage diversity and collaboration

The second step to incentivize innovation is to encourage diversity and collaboration among your employees. Diversity of backgrounds, perspectives, skills, and experiences can spark new ideas and insights, while collaboration can facilitate feedback, learning, and synergy. You can promote diversity and collaboration by hiring and developing a diverse talent pool, creating cross-functional teams, providing opportunities for networking and mentoring, and using tools and platforms that enable knowledge sharing and co-creation.

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Elizabeth Southerland - PMP, CSM

Technology Executive | Digital Transformation | Business Partner | Salesforce Certified 2* Ranger
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Truly embracing diversity in the application of DEI principles involves celebrating differences. While equality in the workforce passively enables equality, levering the differences can truly power innovation.

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3 Provide autonomy and support

The third step to incentivize innovation is to provide autonomy and support to your employees. Autonomy means giving your employees the freedom and flexibility to explore, experiment, and execute their ideas, without micromanaging or imposing unnecessary constraints. Support means providing your employees with the resources, tools, guidance, and feedback they need to succeed, without stifling or criticizing their creativity. You can provide autonomy and support by setting clear goals and boundaries, delegating authority and responsibility, offering coaching and training, and soliciting and giving constructive feedback.

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4 Celebrate failures and successes

The fourth step to incentivize innovation is to celebrate failures and successes. Failure is inevitable and essential for innovation, as it provides valuable lessons and opportunities for improvement. Success is rewarding and motivating for innovation, as it validates the efforts and results of your employees. You need to celebrate both failures and successes, without blaming or praising individuals, but rather focusing on the learnings and outcomes. You can celebrate failures and successes by creating a safe and positive culture, acknowledging and appreciating the efforts and results, sharing and applying the learnings and outcomes, and rewarding and recognizing the achievements and contributions.

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Lisa Friscia

I help leaders & their orgs thrive through growth and change by aligning strategy, talent & equity | Fractional Chief People Officer | Strategic Advisor | Leadership Coach | Learning & Development Nerd
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Consistently scheduling debriefs after a project or initiative sends the message that both successes and failures are opportunities to learn and grow. It also creates a culture in which problems are identified and solved as a team, which in turn builds individual capacity and decision-making.

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5 Measure and monitor innovation

The fifth step to incentivize innovation is to measure and monitor innovation. Measuring and monitoring innovation can help you track the progress and impact of your innovation initiatives, identify the strengths and weaknesses of your innovation processes and practices, and adjust and improve your innovation strategies and actions. You need to measure and monitor innovation, without relying on quantitative or qualitative indicators alone, but rather using a balanced and holistic approach. You can measure and monitor innovation by defining and using relevant and meaningful metrics and indicators, collecting and analyzing data and feedback, reporting and communicating the results and insights, and reviewing and evaluating the performance and impact.

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6 Challenge and inspire innovation

The sixth step to incentivize innovation is to challenge and inspire innovation. Challenging and inspiring innovation can help you stimulate the curiosity and passion of your employees, expose them to new and different ideas and experiences, and push them to go beyond their comfort zones and assumptions. You need to challenge and inspire innovation, without overwhelming or discouraging your employees, but rather supporting and empowering them. You can challenge and inspire innovation by setting high but realistic expectations and standards, providing diverse and relevant sources of inspiration and information, facilitating brainstorming and ideation sessions, and inviting external experts and partners to share their insights and perspectives.

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Lisa Friscia

I help leaders & their orgs thrive through growth and change by aligning strategy, talent & equity | Fractional Chief People Officer | Strategic Advisor | Leadership Coach | Learning & Development Nerd
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One way to spark innovation is to have teammates learn from other organizations, verticals and industries, in order to bring back fresh ideas. This can be done through shadowing, mentoring or professional development opportunities.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Lisa Friscia

I help leaders & their orgs thrive through growth and change by aligning strategy, talent & equity | Fractional Chief People Officer | Strategic Advisor | Leadership Coach | Learning & Development Nerd
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What gets measured gets done. Like anything, if an organization truly wants to value and incentivize innovation, it must incorporate innovation in how folks are hired, how they are trained and how they are assessed in 1:1s and in performance reviews.

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How do you incentivize innovation in your company?

1

2

3

4

5

6

7

1 Define innovation

2 Encourage diversity and collaboration

3 Provide autonomy and support

4 Celebrate failures and successes

5 Measure and monitor innovation

6 Challenge and inspire innovation

7 Here’s what else to consider

People Management

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How do you incentivize innovation in your company?

1

2

3

4

5

6

7

1 Define innovation

2 Encourage diversity and collaboration

3 Provide autonomy and support

4 Celebrate failures and successes

5 Measure and monitor innovation

6 Challenge and inspire innovation

7 Here’s what else to consider

People Management

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