Why an innovation culture matters

History is littered with the corpses of organisations who have spent so much time metronomically churning out the same, same, same product with heads down that when they took a moment to look up, they realised that the world had not only passed them by but was heading in a completely different direction - Blockbuster, Kodak, Nokia, BlackBerry… etc…

I am not saying that the reasons these companies failed are simple - and I do not pretend to be an expert in the dynamics of each corporation however, one thing is obvious, these companies lost contact with the market pulse. I suspect that they realised too late that they needed to innovate by which time they either went crazy, throwing everything at the wall, hoping it would stick (lipstick phone from Nokia for example), or they just did not have the culture to step up and reestablish their leadership position.

Organisations that stand the test of time are ones that constantly question why and how. Ones that create an innovation culture from top to bottom, where everyone has a voice and collectively has a shared responsibility for change.

Innovation can come from anywhere. It does not necessarily have to be a huge something, it can be a small something that makes a real difference to the way an organisation conducts its business - I see examples regularly of wonderful innovations that do make a difference… from a simple service innovation to a friend of mine who developed a small piece of analytics software to analyse the effectiveness and responsiveness of advertising based on the elements in each piece of communication.

To nurture innovation, organisations have to realise that the CEO alone does not always know best. Sure, they will see the strategic ‘big-picture’ stuff that steers the business in the direction they believe will bring the best returns to shareholders, but often they are not as connected to their customer's daily needs as you might think, nor do they see the everyday problems they face, nor do they see the every day operational problems the business faces.

Organisations that succeed are the ones that embrace ideas and innovations from all levels. A ‘no idea is a bad idea’ culture is one that rewards and values staff who question, speak openly and have the tools needed to experiment and deliver their innovations.

In many of the markets we serve, we are seeing larger organisations appreciate this more and more. The likes of McKinsey and other large consulting groups recommend that their clients develop innovation labs, places where staff can experiment and where clients can try new things. This approach is beginning to take hold in the Middle East amd Africa, where companies are breaking down the silos that existed in the past and are encouraging cross-functional groups to collaborate more and more. By building structure around the creative process, groups are challenged to innovate. I love this approach however, I am also mindful that for companies to succeed, a CULTURE of innovation is critical. Get this culture right and you will get so much more from your people.

Here are my 10 tips for creating a culture of innovation in your business:

Innovation does not have a hierarchy:

• Understand that new ideas come from everywhere, not just from the CEO

People drive innovation:

• Listen to your front-line staff, they interact with clients every day

Celebrate ideas:

• Encourage and reward your teams for innovating and celebrate their new ideas

Talk to each other:

• Develop a culture of openness across your company

Live differently:

• Celebrate diversity. Encourage collaboration between cross-functional teams, different cultures, different ages, different backgrounds and different skills

Practice disciplined creativity:

• Build structure around innovation to help you prioritise and help you develop innovations

Practice 10 into 1:

• The first idea may not be the best idea, it may take 10 ideas to find a winner. Push yourself to explore differently

Think value:

• Link innovation to your business plan… some of the time

Understand everything and then question it:

• Be aware of market dynamics but remember sometimes we don’t know we need something until we experience it

Forget politics:

• Corporate politics kill innovation

More information

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If you would like to read more insight from the team at Principle, please visit our website www.principleglobal.com and select the Perspectives and News page.

If you would like to read more of my thoughts and ideas and see more tips based on my experience of working with clients in nearly 100 countries, please visit my blog: www.passionbrand.me.

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