ib by kacharagadla

A culture conducive to innovation is not only good for a company’s bottom line. It also is something that both leaders and employees value in their organizations. In seminars at companies across the globe, I have informally surveyed hundreds of managers about whether they want to work in an organization where innovative behaviors are the norm. I cannot think of a single instance when someone has said “No, I don’t.” Who can blame them: Innovative cultures are generally depicted as pretty fun. When I asked the same managers to describe such cultures, they readily provided a list of characteristics identical to those extolled by management books: tolerance for failure, willingness to experiment, psychological safety, highly collaborative, and nonhierarchical. And research supports the idea that these behaviors translate into better innovative performance. But despite the fact that innovative cultures are desirable and that most leaders claim to understand what they entail, they are ...

There is not much agreement about what makes an idea innovative, and what makes an innovative idea valuable. For example, discussions on whether the internet is a better invention than the wheel are more likely to reveal personal preferences than logical argumentation. Likewise, experts disagree on the type and level of innovation that is most beneficial for organizations. Some   studies   suggest that radical innovation (which does sound sexy) confers sustainable competitive advantages, but   others   show that “mild” innovation – think iPhone 5 rather than the original iPhone – is generally more effective, not least because it reduces market uncertainty. There is also inconclusive evidence on whether we should pay attention to consumers’ views, with some   studies   showing that a customer focus is detrimental for innovation because it equates to playing catch-up, but   others   arguing for it. Even Henry Ford’s famous quote on the subj...

Ronald Coase nailed it back in 1937 when he identified scalable efficiency as the key driver of the growth of large institutions. It’s far easier and cheaper to coordinate the activities of a large number of people if they’re within one institution rather than spread out across many independent organizations. But here’s the challenge. Scalable efficiency works best in stable environments that are not evolving rapidly. It also assumes that the constituencies served by these institutions will settle for standardized products and services that meet the lowest common denominator of need. Today we live in a world that is increasingly shaped by exponentially improving digital technologies that are accelerating change, increasing uncertainty, and driving performance pressure on a global scale. Consumers are less and less willing to settle for the standardized offerings that drove the success of large institutions in the past.   Ourresearch   into the long-term decline of re...

Innovation produces employees who think fresh thoughts. The more innovative your team is, the quicker it can solve problems, as it's constantly anticipating potential roadblocks. Equally as important, an innovative mindset engages your employees in a way that makes them feel connected to their work. They not only feel more satisfied within their roles, but they also become more service-oriented toward customers.   However, in the hustle and bustle of a startup, innovation isn’t easy. Companies find themselves either stuck in a creative rut where they’re unable to push past initial visions or plagued by “ shiny object syndrome .” Thankfully, practice makes perfect -- just take a look at Google. The company enacted a “ 20 percent rule ” that encouraged employees to spend 20 percent of their time on personal projects. Some of Google’s best products -- Gmail, AdSense and Google Talk -- came from this initiative. Related:  How Gamification Is Engaging Customers and Empl...