Former Apple CEO Steve Jobs once said, “Innovation is the ability to see change as an opportunity – not a threat.” Going by how much he managed to accomplish in a short while, it is fair to admit the wisdom in his words. One of his hallmarks was building a culture of innovation as he relentlessly pushed those around him to reimagine Apple products and what the consumer needs.
According to a recent survey, 63% of 1,000 C-suite executives agreed that building a culture of innovation is a growth driver. Sadly, out of the 1000 C-suite executives, only 20% believe that their company today has the kind of culture it takes to support the ongoing innovation needed to thrive in the marketplace.
How To Create An Innovative Culture In An Organization?
It would not be an exaggeration to say that most C-executives are constantly trying to figure out how to create an innovative culture in an organization. Encouraging employees to trying new things, putting new metrics in place, and rewarding top performers are crucial to building a innovation-focused culture. CEOs need to keep the ball rolling to have an innovative culture in business. Companies that are market leaders in their field are known for their organizational culture and innovation practices that lets people play to their strengths. A study found that companies with the greatest culture-of-innovation scores also had the highest earnings per share, the biggest dividends, and higher cash-flow multiples.
1. Hire for Cultural Fit
One of the most important factors in building a culture of innovation, is to hire the right people. Research has found that diversity is a key driver of innovation, and it is imperative that a company doesn’t like a group of clones. While focusing on diversity, one must look for the right cultural fit as people who share the same values will find a way to work things out. Diverse experiences, backgrounds, and perspectives help stimulate interesting conversations which eventually results in systemic improvements. Further, in a survey by Glassdoor, 77% of respondents said they would consider an organization’s culture before applying for a job.
2. Create a Safe Space for Change
Big tech company Google promotes innovation by encouraging managers to let employees pursue pet projects. This includes allowing them to set aside certain hours over a week to work on projects other than usual BAUs to encouraging cross-team interaction via Google Cafes. Innovation is inherently risky, but nothing great comes without risks. Google also solicits feedback on various issues and enlists volunteer employee teams to solve problems. A healthy level of autonomy equips people with the ability to shape their environment. Pfizer’s Dare to Try initiative is a good example of how to create an innovative culture in an organization. The program encouraged workers to aim for better practices and take thoughtful risks through experimentation.
3. Revamp Reward Systems
Human beings crave appreciation. An essential factor of ideation and innovation is how employees are recognized and rewarded for their efforts. Building a culture of innovation means keeping budgets aside for employees going the extra mile. Whenever a new idea is implemented, or even just after testing, it is a good idea to share its progress with the team, including the person who proposed the change. An innovative culture in business requires a fair amount of give and take. While all ideas cannot be implemented, substantial ones must be recognized publicly, as this will encourage the employees to continue coming up with ideas. One survey found that 47% of employees want to receive a reward spontaneously while a resounding 85% said that management must reward employees for work well done.
For a good employee recognition and building a culture of innovation, top performers must be rewarded for going against the grain and being harbingers of change. Although leaders have different approaches towards fostering innovation, there is no denying the fact that innovative culture companies manage to find a place at the top. An innovative culture in business can be built only when one is aware of current problems and can foresee the changes the future will bring.
