??3 Game Changing Practices Every Leader Should Adopt to Foster Innovation

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‘Innovation’ in today’s era is considered the signature of a futuristic organization. As per BCG’s Most Innovative Companies Ranking report, ??Apple, Tesla, Amazon, Alphabet, Microsoft, Moderna, Samsung, Huawei, BYD Company and Siemens were among the top ten innovative companies globally. The global innovation management market size is estimated to grow from USD 2.02 billion in 2023 to USD 7.92 billion in 2032. Thus, companies harnessing the power of ??innovation and technology are considered to have a substantial ??performance edge that separates the best companies from the rest.

The evolution of the term innovation has a fascinating journey. Back in seventeenth-century Europe, religious authorities viewed innovation ?negatively. Canadian historian Beno?t Godin cites an extreme case: In 1636, Henry Burton, an English Puritan, was accused of being an innovator, leading to severe punishment: imprisonment and mutilation (loss of his ears). Until the 19th century, the focus was on invention rather than innovation.?

Godin attributes the shift of focus from invention to innovation somewhere in the 20th century.

An Austrian economist, Joseph Schumpeter, defined “Invention as an act of intellectual creativity undertaken without any thought given to its possible economic import, while innovation happens when firms figure out how to craft inventions into constructive changes in their business model.”

Over time, a new element got woven into the definition of innovation, shifting its common understanding to "bringing to market a new technology." As per Google's Ngram database of word usage, not only has "innovation" suddenly become a ??bigger deal than "invention," but its total mentions have also hit a record high.

Economist Tyler Cowen from George Mason University, points out an irony at play: over the past few years, the term "innovation" has become the new buzzword, yet actual innovation might be on the decline. The word itself has morphed into shorthand for “anything new and good. In her article, **Emma Green points out that while measurable innovation may be dwindling, we can’t stop talking about it.

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As leaders, the challenge before is clear:?

↗?How can you ensure that genuine innovation thrives within your organization and doesn't just become another empty catchphrase?

↗?What strategies will you implement to cultivate true creativity and progress?

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3 Game Changing Practices Every Leader Should Adopt to Foster Innovation

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1??Creating a Definition of Innovation for Your Organization –

In a survey of executives, over 80 percent said that innovation is among their ??top three priorities. Yet, less than ??10 percent reported being satisfied with their organizations’ innovation performance. In today’s digital age, where the pace of change is supersonic, as an organizational leader, you may feel a rushed need to innovate and jump onto the bandwagon.

As innovation efforts require significant investment, manpower, and carries high risk, it is crucial to:?

• Define what innovation means to your organization – Solve for the three elements that are:

1. Who – Whose problem are you solving?
2. What – What solution can be executed, and is it compelling enough?
3. How – How will the solution create value? Value needs to be created for both customers and the business.?

According to McKinsey's definition in "What is Innovation?" innovation is "the systematic practice of developing and marketing breakthrough products and services for adoption by customers."?

• Assess your organization's ability to generate and implement new ideas, and dedication to innovation - Plot your organization on the Competence and Commitment Innovation Matrix to assess the current importance of innovation within your organization and its integration into the company’s core competencies.

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2??Embrace Eight Essentials of Innovation –

McKinsey has shared *eight critical attributes and behaviours that separate the best innovators from the rest. The below elements can help organizations become better innovators:?

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3??Cultivate a culture of innovation -

85 percent of executives’ report that ??fear hinders their organization’s innovation efforts. As you and your team embark on the path of innovation, the journey can feel daunting and overwhelming due to the inherent uncertainty, potential for failure, and risk of criticism.

The three biggest fears in corporate innovation are fear of criticism, fear of uncertainty, and fear of a negative impact on one’s career, with the latter being the most prominent.

To overcome the fear-based barriers, the leadership team must cultivate a culture where ??experimentation, inquiry, and ?? risk-taking are celebrated rather than punished. Organizations can foster a dynamic and forward-thinking environment by embracing innovation as a core organizational value, creating a psychologically safe space, establishing routines and rituals, and aligning ??rewards and ??recognition with innovation efforts.

As highlighted by two legendary trailblazers in the tech world, Bill Gates and Steve Jobs:

Bill Gates once said, “I believe innovation is the most powerful force for change in the world.” Meanwhile, Steve Jobs inspired us with his insight, “Stay hungry. Stay foolish. Never let go of your appetite to go after new ideas, new experiences, and new adventures.”

These profound statements emphasize that embracing innovation is about driving transformative progress and seizing the ??future. Believe in yourself and the potential of innovation to create new possibilities and shape a remarkable future.

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Power of ‘Innovation’ to you!??

Keep smiling and Keep shining…??

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Source:

*What is innovation? | McKinsey

**Innovation: The History of a Buzzword - The Atlantic