In my role as executive coach and leadership development consultant, I have noticed a trend in 360 assessments over the past decade. More and more organizations are naming innovation as a leadership competency that they believe will help drive their current and future success and keep them ahead of (or at least even with) the competition.
We're not doing so well in this arena, say the experts. An extensive 2005 survey of global senior leaders conducted by Oliver Wyman-Delta Organization and Leadership indicates that 80% of those surveyed reported organizational weakness in innovation. Their 2007 study echoed these results, and added that the most threatening challenge to business results is the failure of leaders to create a climate for innovation.
I have seen senior leaders derail because they monitored only the traditional markers of success&.sales, top line profits&.to the exclusion of building an infrastructure and culture which supports innovation. The challenge is worse in operational, process-driven cultures where the very behaviors that have enabled them to succeed by driving performance and hitting their numbers often run counter to creating the required culture to drive innovation.
Given the increasing need for this competency to stay competitive in a changing world, what are the factors that contribute to building an innovation-friendly culture? Here are a few points that leaders must address:
1. Define Innovation. Dr. Lawrence Levin points out that the concept of innovation is "fuzzy until it is operationally and personally defined by an organization. Companies must ask: what specifically does innovation mean to us? What is the compelling need and what are the obstacles? To take innovation from "buzzword to executable strategy, leaders must clearly articulate the challenges and point the way forward&tangibly. How clearly have you and your organization defined the need and created a business case for innovation?
2. Start at the top. Whereas good ideas can come from any level of an organization, a culture of innovation must begin at the most senior levels. Senior leaders must be the drivers, and understand how they can, at times, serve as a barrier to innovation. People at all levels must understand the company's mission, vision, priorities and strategy to decide how and when innovation must be a strong priority. How well are you and your organization, from the top down, articulating these areas?
3. Create a culture where calculated risks are embraced. For many organizations, this is a clear break with tradition. Leaders must not only allow, but embrace mistakes and the lessons learned from them. Richard Farson and Ralph Keyes, authors of Whoever Makes the Most Mistakes Wins, praise "failure-tolerant leaders who help people distinguish between excusable and inexcusable mistakes. It is uniquely important to define "risk-taking especially in industries where risk is tangible and managing risk is a priority. I've had numerous experiences coaching safety-conscious leaders to shift from the attitude of "we don't innovate around here to "we don't innovate where safety is concerned without taking all precautions to minimize the risks involved. How much does your organizational culture, and how much do you personally, embrace mistakes as an opportunity to improve?
4. Increase transparency. To tie innovation to business results, leaders must convey, repeatedly, the company's strategy, mission and goals, so that they are truly understood at all levels. Innovation flourishes in an atmosphere of encouraging questions and dialogue where it is okay for people to admit what they don't know. Innovating is all about developing a "workable comfort zone around the unknowns, driven by a compelling business case. Henry Ford prized finding employees who "had an infinite capacity to not know what can't be done. And remember, transparent communication is not just about what you say; it's about what they hear. How do you communicate direction and strategy to your people, and how often do you do "listening checks to see what part of your message is getting across, and what you need to express differently?
5. Create a culture of teamwork and inclusion. Silos and turf-guarding are the natural enemies of innovation. Ditto command-and-control, heavily top-down cultures. Innovative ideas and perspectives can emerge at any level of the organization; encourage suggestions, feedback and FeedForward. Embracing diverse internal and external views is crucial to staying relevant and competitive in our global economy. In the words of President Harry Truman, "It's amazing what you can accomplish if you don't care who gets the credit. How often do you seek the input and views of your colleagues and customers?
Bottom line, each of us can learn and lead those behaviors which drive and sustain innovation. And, given our ongoing need to adapt and thrive within a changing world, each organization&and every leader&must look at how to create an innovation-friendly culture which balances past success with evolving demands.
Copyright 2008, Leading News
Patricia Wheeler is an executive and team coach who helps smart people become better leaders. As Managing Partner in the Levin Group LLC, she has spent 15 years consulting to organizations and coaching senior leaders and their teams. You may contact Patricia by E-mail at Patricia@TheLevinGroup.com or by telephone at 404 377-9408.
