Creating a Sustainable Culture of Innovation

By Jennifer Dominiquini, March 11, 2008 — More companies are embracing the importance of innovation, but few are happy with the results.

That's not surprising. Turning the rhetoric into action is a challenge. Some businesses think they can "buy" a culture of innovation by holding a few training programs or workshops. They label modest tweaks as major breakthroughs, devaluing the meaning of the word. Or they hire a vice president of innovation in the belief one person will just make innovation "happen".

The reality lies beyond the hype. Even IBM Corp., which encourages its employees to brainstorm freely on "Think Fridays," pokes fun at the overblown rhetoric of innovation in television commercials, where a bespectacled and portly fellow in a superhero get-up declares himself "Innovation Man". The spots end with the admonition, "Stop Talking. Start Doing."

Companies committing dollars and resources to building innovation over the long haul realize they can't succeed unless they create an ongoing culture of innovation. The question is how?

Building a culture of innovation requires a sustained commitment and three key steps:

First, take into account the unique DNA of your organization. There is no one cookie cutter approach to building a culture of innovation. The 20% rule (of giving people free time to innovate that works for Google or 3M) might not work for your organization - but that doesn't mean you shouldn't look at other companies for inspiration on how to make your company more innovative.

Second, though innovation often feels like a race against time, it's critical to ensure strategy informs your innovation efforts. In order to create a culture of innovation, you'll need to articulate your strategy and ensure that employees hear it, believe it, and live it. They must be as passionate about your company and its strategic direction as you are. Companies that cascade their strategies down to all levels of the organization so that everyone knows how their jobs/roles enable the company to innovate - and hence deliver on the strategy - are more likely to be sustainable innovators over the long term.

Third, it's a team effort. Don't look for one person, one function, or one division to do it all. Instead, encourage cross-functional teams to execute and give them the tools and incentives to act. Understand that innovation requires time, money and other resources and be ready to accept some failures as the cost of doing business. Reward risk-takers by recognizing their contributions, which will spur others to emulate their behavior.

It doesn't take magic to make your company more innovative. It requires a proactive and ongoing strategy, a healthy balance of "talking and doing", and the long-term commitment to rise beyond the hype.