24hrs of Innovation - Creating a Culture of Continuous Innovation

In this economic downturn there is more pressure than ever on executives to find new sources of growth, and as a result leaders are increasingly talking about innovation. In some organizations the leader may say "we need to be more innovative" or "we need to think out of the box" and stop there. While for other organizations it may become part of the year's goals or even the organization's mission statement. Only in a small number of cases will there be any kind of sustained effort to enhance, or create, a culture of continuous innovation.
By now everyone has probably heard of six sigma and continuous improvement, and maybe your organization has even managed to embed its principles into its culture, but very few organizations have managed to transform their cultures to support innovation in a sustainable way. For most organizations, innovation tends to be something that is left to the R&D department or that is thought of on a project basis. Some organizations create new innovation teams, but it is rare for an organization to invest in transforming their entire culture. There are many reasons for this:- Support from top leadership is required
- Challenge: Most executive teams are focused on short-term results and transforming organizational culture is a long-term investment of financial and leadership resources.
- Clear goals and guidance are needed
- Challenge: This is a bigger barrier than you might think. Most organizations struggle to understand how to set innovation goals and to provide a vision for employees on how they might get there. Goals to 'be innovative' or 'think outside the box' are not specific enough to be successful.
- Every organization is different
- Challenge: The starting place, needs and barriers to creating a culture of continuous innovation are different for every organization - making easy implementation of best practices impossible
- Most companies lack a shared vocabulary for innovation
- Challenge: People in different parts of the organization use different terminology, methodologies, frameworks, and have different understandings of what innovation is. The lack of a shared vocabulary prevents organizations from achieving shared success.
- Change is painful
- Challenge: Creating a culture of continuous innovation threatens the power base of a critical few, and disrupts the way people think about their jobs and the organization. Even if change is for the better, people tend to want to avoid change.
- Change needs to be managed
- Challenge: This means pulling employees off of their day jobs or hiring consultants to commit to the leadership and communications surrounding the change effort. This investment may prove challenging in the current economic climate.
- Change takes time
- Challenge: Organizations seeking to create a culture of continuous innovation must realize that the transformation will not happen overnight. People can only absorb so much change at once. The transformation will likely have to be broken up into separate phases with discreet goals (don't try to do it all at once).
- Make sure to stop and share the successes of each phase, and also to identify what you've learned that can be implemented in the next phase.
- Visualize the outcomes of participation
- Challenge: Often people withdraw and choose not to participate in organizational transformations because they don't believe that their participation will positively impact their daily lives. If those who choose to participate don't see an impact from their early efforts, might choose to disengage as the process continues.
- You must celebrate participation and highlight the impact of individual contributors throughout the process.
- New systems and processes may be required
- Challenge: To innovate continuously, you need to be open to receiving great ideas from anywhere in the company, and must have systems and processes to manage idea gathering, evaluation, and development. Often this requires a financial and personnel investment.
- Change efforts require lots of communication and storytelling
- Challenge: You have to bring the change to life for employees. This requires involvement of employees early and often in the communications surrounding the goals and outcomes of the cultural transformation
- Create a story that is easy and fun to tell - this will make it easier to cascade the change downwards through the organization
This should give you a better idea of why very few organizations embark upon the difficult work to enhance or create a culture of continuous innovation. It may not be an easy or a short journey, but creating a culture of continuous innovation is the only way to increase your chances of avoiding organizational mortality.
Successfully creating a strong culture of continuous innovation also represents a huge opportunity for an organization to attract the best talent, to lower costs, to continuously add new revenue streams, and to better achieve competitive separation.
If you'd like to explore some of these issues and discuss them further, please join our Continuous Innovation group on LinkedIn.In the LinkedIn group and in future articles and white papers, we will further explore how to overcome some of these challenges to achieving a culture of continuous innovation.
Is your organization ready to invest the hard work towards achieving the rewards of a culture of continuous innovation?
Braden Kelley (@innovate on Twitter)
Labels: Braden Kelley, Continuous Innovation, culture change, Innovation











5 Comments:
I love the way you think - did we experience some sort of mind meld at World Innovation Forum?
Great piece - thanks for sharing!
I'm glad you enjoyed the piece.
If we're of the same mind, then maybe we should work on something together in the future.
All the best,
Braden (@innovate on Twitter)
Braden, thanks for sharing your pep talk today! The aspect of culture is a nice complement to other chosen topics.
Love your stuff, Braden. But allow me to pick a bone here:
I think a lot of us in the "innovation practitioner" community are making a lot of money (or at least used to make a lot of money before the downturn) selling companies on the idea that they can be "continuously innovative" or that innovation is something everyone in their companies can and should be doing.
I think this notion works if we subscribe to definitions where improvement = innovation. Improving - even radically improving - the business that one is in today is something that we can strive for with terms like "continuous" and "ubiquitous". All employees should be striving to find better ways to do their job.
But if innovation is something different from improvement, if it is more about changing what business you think you are in, if it is about changing the status quo, then truly we are selling pixie dust - dangerous pixie dust - when we suggest the kinds of approaches I see in countless "innovation events" such as the one described.
In this definition (see wikipedia: innovation happens when someone changes how people organize themselves, live their lives, and see the world), innovation better not be actively practiced by everyone in the firm all the time. It would be chaos. And fortunately, only about one person in 100 has a strong intention to cause this level of change in the firm (and only about one in ten of these has the know-how to have a good chance of success). This is not elitist, because at any given time, that group of 1 in 1000 can be anyone in the firm from the janitor to the line worker to management.
To create a culture of true innovation, we must think in terms of investment, not rewards (innovators want the rope to prove their vision, not rewards after-the-fact). We must learn to think small, not big (big things start small, and if you invest too much in new business opportunities, you cut down the number of experiments you can try and slow the decision-making process, which is death over time). And we must loosen up our command-and-control systems within the limits of new venture creation. It isn't that we need executive intervention so much as we need senior executives to call off the legal and financial attack dogs, set a tone of tolerance for failure and inefficiency (which are the hallmarks of new venturing), and then get out of the way.
Executive "innovation retreats" are happy happy and fun fun, but they are rarely about real innovation.
In my experience, there is really just one thing that consistently works within the context of large organizations to create a culture of true innovation: give employees who actually INTEND to build a new line of business (or who intend to start a new business separate from the parent firm) a straightforward path, rapid approval, and tiny tiny amounts of time and resources to do so.
Entrepreneurship without Innovation is just opening another McDonalds. Innovation without Entrepreneurship is either Invention or Improvement.
More on this at www.thethreepercent.com.
I can't tell you how many times I've seen lists just like this. If the lists were the answer, we'd all be doing better. So they're obviously not the answer.
John raises an interesting series of points. I'd contend that they too are still a bit off of the mark.
There is a fundamental problem in company after company that I've found -- always the FIRST thing I run into as a challenge: identifying and finding the 'right' resources to work with.
What we have here, repeatedly is a failure to facilitate the optimization of resources. Why's that? Because the one organization responsible for the greatest resources (and often most expensive component), HR, is typically funded and staffed only as an administrative arm.
Consider too what we would accomplish if, as is the case at Zappos.com, the CFO and the COO were the same person. The operations of the company would be optimized to the finances (not minimized to them).
The real issues are not those of innovation. Innovation is a byproduct of the conditions. We have inept conditions -- because we do not 'design' our organizations.
Answer me this, who is responsible for the design of the organization in such a way that it optimizes ALL of the resources?
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