In our conversations about embedding innovation with more than 200 medium sized businesses, it rarely took long until the issue of organisational culture took centre stage. 

The challenges posed by cultural challenges were recognised and understood by the majority of participants, particularly those who had a mature or evolved approach to innovation.  Indeed, there were many who said that the development of an effective innovation culture was the single most important factor in successfully delivering commercial change.

There are no surprises about the cultural attributes that stifle or inhibit innovation.  They are familiar to many and can be summarised as being those associated with a fearful, hierarchical or bureaucratic environment.  

Such cultures often starve innovation of resources and use incentives intended to promote short-term performance and an intolerance of failure.  Silos divide people, internal communication is often poor and levels of staff engagement are characteristically very low.

This may not be very encouraging if an organisation wants to be a hive of innovative activity but recognises that its established culture is not fit for purpose.  There is, however, much that can be done to get things moving in the right direction. 

Since a well-structured innovation programme is a form of change management and change is almost always closely associated with people and behaviours, leaders can take deliberate steps to nurture an effective innovation culture built on trust.

In a positive culture, people are likely to understand the purpose and intent of an innovation programme and, critically, know how it relates to them.  They will feel that their ideas are valued, trust that it is safe to express those ideas, and have the opportunity to participate in collaborative decision making.  

Such an environment can be more effective than financial incentives in developing and embedding innovation.  Here are a number of ways in which leadership teams can create focus and help build a more innovative culture:

  1. Create clarity as to the purpose and intent for innovation.  We discussed this issue in an earlier blog, but a clear sense of direction and intended outcome is critical.  Clear, open communication helps build trust.
  2. Lead innovation from the top. Leaders need to demonstrate through their actions that innovation is core to the organisation's strategy and be mindful as to how their own behaviour supports or inhibits engagement around the issue.
  3. Develop team leaders, managers or staff to become innovation leaders.  By working with those who already exhibit innovative skill sets and investing to improve their coaching or facilitation skills, the capacity of others involved in innovation efforts can be increased.
  4. Create opportunities to try without fear of failure.  It really helps to work with the appropriate teams and give them a positive experience of innovation; even if the project doesn't deliver results straight away.  This can build the right cultural behaviours and helps teach an organisation what good looks like.  One large business we have worked with even has an annual 'Heroic Failure' award to celebrate someone who was brave enough to try something new but fell flat on their face!  A great way to remove the fear of failure.

Find out more on how to embed innovation in your business

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