Culture of innovation—a phrase that deserves to be savored, for it consists of two terms that are constantly bandied about in public discourse yet can be precisely defined by only a few: innovation and culture. Innovation, as we have learned by now (there is a detailed explanation of this in the first Innoblog, “Innovation”), is the introduction of something new and must first be introduced to a market, establish itself there, find a steady customer base, and ultimately prevail in the market. Culture, on the other hand, is a dynamic system of values, traditions, behaviors, and forms of expression that shape a society. It encompasses art, language, customs, rituals, and social norms. Combining the two terms yields “innovation culture,” and the software company Ideascale.com has presented a lovely definition of this on its homepage:
“A culture of innovation is defined as the collective mindset, values, beliefs, and practices within an organization that foster and support innovation. It is an environment in which creativity, a willingness to experiment, and the pursuit of new ideas are encouraged and welcomed. In a culture of innovation, individuals are encouraged to think critically, take risks, and challenge the status quo in order to develop groundbreaking solutions and drive positive change.”
Changed after Nieminen, J., Viima 2018 – Innovation Management
If we recall the four key aspects of innovation management outlined by Jesse Nieminen of Viima, the following concepts emerge: capabilities, structures, strategy, and culture.
The umbrella term “capabilities” encompasses the skills and resources within an organization for creating and managing innovation. The aspect of capabilities primarily refers to people, as innovation depends to a large extent on the skills of both individuals and teams as a whole. Structures refer to the organizational structure, existing processes, and the organization’s infrastructure. The right structures can act as a multiplier, enabling the organization to operate and innovate much more effectively. Strategy, in turn, reflects the leadership’s plan to achieve a vision under uncertain conditions by tactically leveraging the available capabilities and structures. And culture - particularly the culture of innovation - is, according to a 2013 Harvard Business Review article, the consistent, observed pattern of behavior within an organization, or as Aristotle once said: “We are what we repeatedly do.” Thus, an organizational structure is essentially the sum of all the practices, processes, habits, values, structures, incentives, and, of course, people that an organization has brought together.
This means that to drive innovation within an organization and establish a culture of innovation, innovation must be felt and practiced in every aspect of the organization. Of course, this is only possible if the necessary groundwork has been laid early on and management is 100% committed to the initiative. Ideascale.com has compiled some of the most important prerequisites here:
> Openness: The willingness to explore new possibilities and consider alternative perspectives.
> Collaboration: Promoting cross-functional teamwork and the exchange of ideas to foster innovation.
> Willingness to experiment: Creating an environment that enables trying things out, learning from mistakes, and iterating on ideas.
> Risk tolerance: Accepting and even encouraging calculated risks, understanding that innovation involves uncertainty.
> Adaptability: The ability to respond to change, leverage technological innovations and market dynamics, and adjust strategies accordingly.
> Continuous learning: Valuing ongoing personal and professional development, fostering a growth mindset, and encouraging the exchange of knowledge.
> Supportive leadership: Leaders who inspire and empower their teams by providing them with resources, autonomy, and a safe space for innovation.
> Recognition and reward: Acknowledging and valuing innovative efforts and achievements.
Changed after Lead-Innovation.com, Tanja Eschberger-Friedl , 2023
Once a culture of innovation is established, it determines - according to Lead-Innovation.com (“What Is a Culture of Innovation?”, 2023) - the “ability” (capacity for innovation), the “willingness” (readiness for innovation), and the “opportunity” (potential for innovation), which together define innovation activity. None of these pillars stands alone in isolation; rather, they continuously influence one another. A change in one parameter immediately affects the other two, which means that innovation in an organization only works when the ability, the willingness, and the opportunity are in perfect harmony.
This capability requires that the people working for the organization be supported and encouraged in developing and realizing their creative potential. This calls for clear guidance from organizational leadership, as well as a commitment to continuously train and develop employees in the area of innovation. This includes regular workshops on trends and the future, focusing on methods and tools for generating, evaluating, and implementing ideas. Equally crucial is the internal transfer of newly acquired or existing knowledge, as well as the work environment in which that knowledge is to be applied.
In addition to “ability,” “willingness” is also a key factor, because innovative action cannot be imposed from above. Employees must have an intrinsic desire for this type of work so that a culture of innovation can later emerge and take root. The company’s employees must be committed and creative, but also eager to turn ideas into innovations and willing to think outside the box. Only in this way can all employees live and experience innovation and help shape a culture of innovation. The key to success lies in fostering the right mindset toward innovation within the company, being open to new ideas from employees, encouraging a willingness to take risks, creating motivational incentives, and changing management’s understanding of their role within the creative process.
However, in addition to “ability” and “willingness,” motivated employees also need the “permission” to act. After all, all that “ability” and “willingness” only leads to endless frustration if one is not “allowed” to act. “Permission” is the necessary prerequisite for setting action in motion. To this end, management must create the appropriate framework conditions. This includes both the time and financial resources that employees need to successfully implement promising ideas. Furthermore, it is essential that goals, responsibilities, and competencies are clearly defined for the processes required to develop and implement ideas. Management must ensure that rapid and efficient communication is possible across all hierarchical levels, while also providing space for informal communication (e.g., break rooms). This requires swift and effective decision-making structures. For the joint development of ideas, cross-functional creative teams must be assembled, with the relevant employees being involved in the innovation process from the very beginning (cross-functional and cross-hierarchical project teams, cascade workshops). By instilling confidence in employees’ willingness to perform, we encourage initiative and entrepreneurial behavior, so that employees will demonstrate the necessary commitment and performance on their own.
The freedom to act should not be hindered by excessive micromanagement or slowed down by a series of approval loops within the hierarchy; otherwise, creative thinking will fade away along with employee motivation. The same applies when managers misuse resource allocation as a tool of power and withhold or even deny necessary resources. It is at this point, if not sooner, that it becomes clear just how serious company leadership really is about implementing and embracing innovation.
What is a culture of innovation?
At the outset, innovation is a bumpy road through difficult terrain. But with the right skills, obstacles are cleared and structures are built. The right strategy turns that path into a well-defined road, and culture… culture turns that road into a highway, for it is the oil in the gears, the air we breathe, and the spark that drives us. Innovation is shaped by leadership. Only they can shape the conditions within the company in such a way that a climate conducive to innovation—one that fosters innovation - can emerge. “Ability” brings employees’ knowledge and skills up to date; “willingness” creates the motivating structures; and “permission” creates the necessary freedom for thinking, decision-making, and action, so that an idea can evolve into innovation.
Prof. Dr. Jochen Hirsch, Head of the Industry Liaison Office, University of Tuebingen, Germany
