How to let innovation thrive through culture
Big companies are usually not innovative at all. According to the Dunbar number, a person cannot have more than 150 real connections with others. When a company grows beyond that threshold, innovation dries up due to a stronger corporate culture, political struggles and an island-mindset where people are solely focused on their own part without understanding what the bigger picture is.
How can we revert this process and make post-startup companies innovative again? Here are the most important steps I have encountered:
The first step in embracing risk-taking for innovation is to create a safe and supportive environment within the organisation. When employees feel secure and are encouraged to take risks without the fear of negative consequences, they are more likely to step outside their comfort zones and explore new ideas. This can be achieved by promoting open communication, fostering trust among team members, and recognizing and rewarding efforts, even if these efforts result in failures. When individuals feel safe to voice their opinions and take risks, creativity flourishes.
The second step, embracing risk, doesn't mean blindly leaping into the unknown. It involves taking calculated risks, carefully assessing potential outcomes, and making informed decisions. By encouraging employees to think critically, analyse risks, and consider the potential rewards, organisations can channel their energy towards strategic innovation. Encouraging calculated risk-taking empowers individuals to challenge the status-quo, explore unconventional approaches, and generate fresh ideas that have the potential to disrupt industries and drive success.
Third, sometimes it can help to start with a small, isolated environment if the organisation is very large. Such ´laboratory´ environments can create their own culture with an entrepreneurial mindset where ideas and innovation can flourish because it is far away from the wider bureaucratic environment. However, once an innovation is ready for a broader market, and the product needs to be integrated in the bigger company, Ensure that you limit bureaucracy and seek out processes that may hinder the effectiveness of the innovation once adopted in the larger organisation. This might kill its effectiveness.
For me, culture is the single most important pillar below an innovative company. I have not seen any company with a negative culture or scarcity mindset that was able to deliver even incremental innovations.
What is your opinion on culture relating to innovation?
Written by Anco van der Wurff
