This means being innovative – looking for better solutions, better products and better processes that address current and emerging needs that drive the company forward. Failure to innovate means no risks are being taken, no new ideas implemented. Growth is not possible for companies who are simply maintaining the status quo. But what is innovation? Where does it come from, and whose job is it?
Most corporate leaders understand that innovation is essential for survival in today’s business world. However, the definition of “innovation” varies among business leaders. In some cases, any change in product offering can be defined as “innovation,” while other companies reserve the term for dramatic changes in product or process.
Some define innovation as creating competitive advantage in the marketplace by finding new ways to solve a customer problem or filling existing and emerging needs. Regardless of different definitions, there are a number of common practices for promoting a culture of innovation:
Embrace Failure, but Learn Quickly
When business leaders model a tolerance for risk, others become more willing to take the chances needed to realise promising ideas. It’s important to learn from failure but in addition to accepting failure, innovative companies need to avoid perfectionism. The goal is to get the new offering to market as quickly as possible rather than to achieve perfection. Creativity is all about failure so don’t punish mistakes— learn from them.
Provide the Right Rewards
Innovation springs from individuals and teams as part of a creative process to solve problems and address existing and emerging needs. It’s critical that organisations provide compensation structures and other rewards that encourage innovation across all functions of the organisation.
Build a Diverse Team
Diversity goes beyond race and has moved past simple demographics. It can be defined much more broadly to include various ways in which groups of people differ significantly from other groups of people. You need people that are different than yourself in order to be successful. Companies seek smart people, who display talent and communication skills.
Foster Connections with External Stakeholders
Employees are not the only source of innovation. Inside and outside stakeholders are able to see the project with fresh eyes, assure that it meets customer needs, and will be invested in a positive outcome if they have been involved in the development and implementation processes.
Identify and Develop Leadership Competencies that Drive Innovation
Many organisations develop leadership competency models to define the characteristics or behaviours that will drive innovation. Some of the competencies that are associated with driving innovation include emotional intelligence, social intelligence, analytical capabilities and technical competencies. Emotional skills and the ability to have a vision are ranked as some of the most important.
There is no single path to innovation; that path must originate in the minds of the organisation’s executive leadership. The executive office isn’t just the place where the buck stops. It’s also the place where the future begins.
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