In an organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations. These shared values have a strong influence on the people in the organization and dictate how they act, and perform their jobs. Organizations today have high focus on innovation & innovative offerings and it is imperative that organization adopts innovation as part of the organization culture.
Innovation
culture can be defined as the
work environment that organizations cultivate in order to nurture unorthodox
thinking and its application. Organizations that foster a culture of innovation
subscribe to the belief that innovation is not the province of top
leadership but can come from anyone in the organization.
Many
organizations claim to that they support innovation. Plan are made on how to go
about investing in INNOVATION & providing resources towards the innovation
work. But when look at the program over months organization's support seems to
be lacking in terms of fostering innovation. Their Reward &
Recognition systems do not support innovation or they just stifle it. Usually
the problem is that companies have review systems designed to ensure only
Completed & Successful projects and programs are recognized. True to the service
culture organizations only look at today’s results and not towards the
future.
The CTO directive says “go innovate,” but the organization usually
supports taking 'Only Those Risks That Will Ensure Success' and that seems to
defeat the Innovation Culture. GE would not be GE if they had no invested a
huge amount of talented resources in research & promoting innovation but
most organization defer from allocating the most experienced resources to
innovation teams.
So what needs to change? The answer is Possibility
Thinking – starting with a clear definition of where you want Solve with your
innovation and then spending time trying to figure out what is required to make
it happen. Not focusing on the next single improvement, but rather the final
picture first. This frees us from the constraints of the current system and
processes and allows for a more open field of possible routes to get to a
solution.
A 5
point approach for building Innovation Culture
1. Innovation
Strategy:
Company's Innovation Strategy should be a combination of Top-Down & Bottom-Up
collaboration of ideas. A lot of organizations want to innovate but the
leadership team has no clear strategy around innovation. Instead, employees are
given a broad and general remit to come up with great new ideas. This can lead
companies to work on a number of unconnected products and services. In addition
to this, innovation teams can find that some of the great ideas they come up
with have no internal support from managers because they were never on anyone’s
agenda to begin with. What companies need is a clear Innovation Vision
that outlines the key trends impacting their business and how the company plans
to use innovation to get ahead of those trends. This Innovation Vision should
provide a simple guide of the types of innovative ideas the company will invest
in. Innovation starts with the strategic decision to pursue specific types of
ideas. Innovation tools can then be deployed as best practice to deliver on the
chosen innovation strategy.
2. Innovation Funding:
Corporate leaders can stifle innovation by how they make decisions to invest in
ideas. Whether it is investment of money or resources, investment decisions making is perhaps the most powerful lever
managers have in transforming a company's culture. If employees are
required to write long business plans before they get any money, the company
will end up rewarding the kinds of people who are happy to write such plans.
Such practices tend to exclude the creatives and leave them out of the process.
Furthermore, innovation succeeds through making several small bets and seeing
what works. If the Business planning involves five-year projections, detailed
delivery plans and an ask for a large amount of investment money then after a
large investment is made, innovation teams are then managed by whether their
project is on time and on budget. Such large investments based on detailed
plans limit the number of bets a company can make. Since most innovative ideas
fail, increasing the number of bets is a good method for discovering ideas that
work. As such, what companies need is an investment process that allows
managers to make Small Investments on
a number of strategically aligned ideas, support employees as
they test their ideas and then double-down investment on those ideas that
demonstrate traction.
3. Collaboration: Innovation is a team sport. It requires
excellent collaboration among siloed business and functional units, across
geographies. Finding the best resources in your organization and combining them
is a hallmark of successful innovation. To find the best solutions, you need to
leverage the full range of expertise across your organization. This requires
one to pull capabilities from across the company; this doesn’t happen when
people are working separately instead of collaboratively. Another important
aspect of innovation is involving the customers to create a breakthrough
product.
4. Motivators - Intrapreneurs are the employees who couple an entrepreneurial mind-set with the ability to
leverage company assets such as expertise, channels, brand, market and customer base.to innovate. To enable innovators to succeed, you’ll need
to measure and recognize their innovative efforts. Three metrics play special
roles. The first
are leading indicators such as the percentage of employees and the size & strength of the internal collaborative ecosystem.
The second type of metric measures the process. How many meaningful ideas are
in your pipeline? Is your portfolio balanced and robust? Are you
commercializing your ideas? Thirdly there are lagging
indicators, the metrics
focus on the revenues from new products, the impact on profit, and the effect
of innovation on brand.
5.) Rewards & Recognition : You need to
give public recognition to innovators. Bonuses are great, but they’re private —
no one in the organization sees the check. However, when you promote someone
based on their contribution to and collaboration on successful innovations, it sets a good example and motives coworkers. Public recognition displays management’s commitment to the people who
demonstrate truly innovative behavior. All innovation efforts do not succeed & in order to drive towards innovative
thinking, failure has to be an option. Understanding that the lessons that you
learn from failure leads to success is the key to any learning organization.Support of these failures is critical to their ultimate success. Leadership should recognize innovators instead of spending time looking for who was at fault and focus on the leanings from the failure and how to overcome it. How can you
avoid it in the future and strive for better results?
Finally,
the hardest part of any innovation culture is to simply Pull Back & stop
work on an innovation idea. When innovations are not panning out, not delivering
the results expected, or driving to the capability you thought, you need to
stop the work and simply move on. This is much harder for people and
organizations to do as any innovation begins with a passionate individual or
group that truly invests in the direction. While very
difficult, it is a critical step in managing those critical resources you have
directed towards innovation. An organization that has clear vision for innovation, a well thought innovation strategy and road-map, encourages collaboration will succeed in building an innovation culture that realizes its innovation goals.