Why culture change is the key to innovation

Culture is the consistent, observable patterns of behavior in an organization

It used to be that innovation was something addressing only start-ups - small, usually tech-focused companies, in markets defined by rapid change. But no more: now established brands are turning their attention and resources toward innovating as never before. Maintaining the status quo is no longer sufficient to effectively compete. Neither is it enough to simply develop new products.

True innovation is systematic. It creates value for both customers and organizations in a number of different dimensions: processes or methods that are innovative; creating something new; changing how you do things; looking at an issue in a fresh way with new ideas. Innovation can happen anywhere throughout a company's entire business system, including finding ways to serve under-serviced customer segments that may not have been yet tapped.

In order to stay ahead of the game, organizations have to constantly be coming up with new strategies and solutions. They're under constant pressure from other companies who are trying to get a share of the pie. The only way they can succeed is to innovate.

Gartner reports:

“Internal politics and an organizational culture that does not welcome ideas from third parties, or cannot embrace new ideas, are detrimental to innovation”.

Company culture is essential in business growth.

In this article, I will share 5 ways to cultivate an environment that embraces new ideas and solutions:

Embrace Diversity

In order to drive innovation, it is essential that organizations embrace diversity. Diversity in a workforce not only drives creativity and problem-solving but also leads to better decision-making for the company. The rise of inclusion and diversity has been a universal trend in recent years. Organizations are striving to create an environment that embraces difference, resists discrimination, and appreciates the value of each individual.

In order for organizations to succeed with this mission, they need not only their employees but also their customers on board. Customer-centric companies focus on how they can best serve their customer needs by taking into account all aspects from product offerings, customer experience, and service delivery.

A key component of creating a diverse workforce is ensuring that your company's culture reflects it as well. Inclusivity starts at the top and filters down so make sure you set the tone for your organization with a diverse leadership team as well as embracing diversity in hiring practices such as recruiting. 

In the article entitled "Embrace Diversity" by Scott Clark, he states that a company's performance will be enhanced when it embraces diversity. He also argues for more women to rise up into leadership positions because they are better at managing conflict than men and they have a greater sense of empathy which could lead to improved customer relations.

Set a clear definition of what innovation is for your business

Innovation is an integral part of your company's success and innovation needs to start with a clear definition.

Achieving corporate goals means you have to be ready for change. Innovation can often help companies stay on top of the latest trends and ensure they are meeting customer needs. To define what innovation means for your business, you will need to deeply understand what innovation is, where it comes from, how it manifests itself in your organization and why it matters so much.

You will be better than prepared to take control of the changes ahead.

Create a space for conversations

Every great innovation starts with a spark of innovation. And every person who has taken that spark and turned it into a flame, an idea, or even just the start of something big – they all need space to do this work. 

In the new "Share Economy" we live in, companies have a need for space, where conversations and fresh ideas will be shared.  These discussions are aimed at finding new and more effective ways for organizations to handle their current culture, talent issues, organizational design problems, and more. By setting the stage for dialogue and making them feel that their ideas matter, they will be more likely to be proactive and collaborative, reinforcing a behavior towards innovation. It may not be easy to change things that you’re used to, but challenging them will help you discover the true potential of your business.

It's a difficult task to stay afloat in the ever-changing world of business. And if you're not willing to adapt, you will be left behind. As such, the disruptive innovation of the 21st century can't be handled by “business as usual”. 

Along with any Transformation efforts, Cultural Change is paramount to competing in today's environment.

Revisit existing company policies

If you're a CHRO, chances are that your company's policies are outdated. To stay relevant in today's business world, it is important to revisit existing company policies and make sure they align with the values of your organization.

For example, if one of your core values is diversity and inclusion but you don't have any family-friendly or pregnancy-related leave available for employees, then you need to go back and update this policy.

About Me

“Being the Managing Partner at CCM Consultancy, I have worked with the Senior Leadership of companies like Coca-Cola, Microsoft, Vodafone, Sanofi, and others, to investigate their way of doing business, how their staff feels and what they represent within their organizations and ultimately help them define and change their Organizational Culture to adapt in a fast-changing world to achieve sustainable results. 

To ensure that our clients’ DNA is fully aligned with their objectives we apply our unique I.D.E.A.S Methodology, to deliver exceptional experiences and provide measurable and sustainable results”.