Factors that Drive Innovation

An over-emphasis on doing things right the first time inhibits innovation. • The way creative individuals are treated has a major impact on organizational innovation. Organizations must reward successes produced by innovations and keep encouraging people in the face of so-called failures. Rewards nurture creativity through affirming its value to the organization. While most Aspirants and Non-Starters had no reward for individual creativity, all Stars did. • Turf protection and barriers between different functional areas are major obstacles to innovation. Encouraging cultural, racial and gender diversity helps reduce these barriers. • Non-Starters choose to spend most of their time on making small improvements to existing products, while devoting very little attention to new product development. They need to focus more on breakthroughs and radical changes. • All employees should be involved in innovation by learning the tools of creativity and providing a positive, enabling field. Stars make use of a strategic planning approach that involves the whole team in not just executing strategies, but actually planning them. This approach creates buy-in from team members. • Top management should drive the process by providing a personal example. Management needs to talk less about innovation and do more on the ground. • Most Stars have an idea generation process, but not all of them use it. This shows that having information is different from using it. People may know a process theoretically; organizations alone can ensure that it is used. Top management commitment is critical to universal understanding and sharing of thinking tools. • Time and resources need to be allocated for learning innovation tools and processes. Stars studied more books on innovation than Aspirants or Non-Starters. Additionally, Stars attended more training programs on innovation. • Stars spend much less time in meetings. Additionally, the productivity of meetings for Stars was higher.