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Creating a Culture of Innovation

Tips and best practices to help you foster innovation and emerge from the recession stronger and more profitable than ever before


by Mike Taylor

December 1, 2009

A culture of innovation empowers people to quickly make changes to services, products and processes to meet the changing needs of clients, as well as internal organizational  needs. It doesn't matter what a business does - the performance of its people determine its destiny.

During good times, badly run businesses can survive and even grow. As the saying goes, "A rising tide lifts all boats." When the economic tide goes out (recession), these businesses are certain to be left high and dry. Conversely, businesses that adapt to their client and organizational needs quickly and effectively will survive these times and in many cases grow. This process of rapid innovation gives organizations a better chance of emerging from a recession stronger and more profitable than even before.

So how is innovation created and fostered? Below are the top "dos" and "don'ts" to help you discover what works and what doesn't work when it comes to creating an innovative culture at your organization.

Innovation Culture: What Doesn't Work

Establishing a culture of innovation is not something that happens overnight with a couple of quick meetings or a "Kumbaya" team retreat. Below are some mistakes to avoid.

DON'T dictate a value system. Values cannot be forced on people - they have to be adopted. People need to see everyone else (especially the leaders) living core values.

DON'T try to enforce a top-down accountability strategy, which will result in resentment and completely undermine the innovative spirit, as people will just "fall in line."

DON'T take unnecessary risks. It is foolhardy to blindly allow change without considering the possible scope of failure. For example, if a team has an idea for a radical change to a service offering, don't test-drive it on your biggest or best customer. Rather, try new ideas on small clients or a friendly sub-part (i.e., department) of a large client.

Innovation Culture: What Does Work
When people have a common belief system and clear vision of what the company is trying to do, great things can happen, even during a recession. Below are some strategies that work.

DO write down values and reinforce them by living them every day - starting at the top. Recognize individuals at all levels of the organization who demonstrate the values on a consistent basis. 

DO make your organization's overall vision and strategy crystal clear to prevent individuals and small teams from pursuing directions inconsistent with the organization's vision and/or ability to support "out-of-bounds" ideas.

DO encourage personal accountability from the bottom up (peer to peer) to help your entire team stay motivated even when top leaders are not directly involved. It shouldn't always be about leaders leading. Innovation can come from individuals who hold each other accountable and work collaboratively to uphold the organization's values.

DO create an environment where people are encouraged to try new things and potential failure is seen as part of the creative process.

DO promote successes frequently. When promoting successes share the process with other team members to help replicate success in other areas.

Within an innovation culture, creative thinking and action are not only encouraged, but also promoted through personal accountability at every level of the organization within boundaries that are clearly understood. People are energized by the knowledge that they can make a difference to the clients and the overall success of their organization. With this kind of energy, your organization will not only survive an economic downturn, but is certain to emerge stronger when it is over.

Mike Taylor, founder and CEO of Innovative-e Inc., is a global entrepreneur, experienced business consultant and certified Project Management Professional (PMP) with more than 20 years experience in information technology and services. Innovative-e Inc. is a business consulting and technology services company that helps clients achieve tangible business results with Microsoft SharePoint solutions. Services include consulting, project management, application development, training, systems integration, and support.


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