|3 WAYS TO BOOST INNOVATION IN THE WORKPLACE|
Aruba, July 28, 2016 - One of the key challenges most companies face is being able to scale rapidly while still keeping their innovative startup edge.
Startups have fewer decision-makers, making it easier to take the risks needed to remain as innovative as possible.
As these companies start to grow, they often experience a downturn in innovation as management layers increase. In fact, many larger corporations are now attempting to harvest the success of startups by creating small internal companies.
This begs the question, do you have to stay small to be innovative?
According to the Economist’s study on organizational agility, the main obstacles to improved business responsiveness are slow decision-making, conflicting departmental goals and priorities, risk-averse cultures and silo-based information.
This isn’t a problem that faces a select number of companies. A survey by McKinsey&Company found that 94 percent of managers are unhappy with their company’s innovation performance.
The good news is that you don’t have to stay small to avoid these common growth pitfalls. Instead follow these three performance management must-haves:
Create a culture in which risk-taking is encouraged. Fear of failure is one of the most common inhibitors of innovation. Someone may have a great idea but concern for their job security may keep them from taking the risk to try something new or challenge traditional strategies.
Top companies are now taking the opposite approach. Google X, the company’s secret innovation lab, allows googlers to explore game-changing ideas consequence free. It’s here that the fantasy of self-driving cars became a reality and inventions such as hoverboards and smart contact lenses have been tested.
The requirement is that these ideas actually have to be radical sci-fi sounding inventions which will help solve a global problem in the next 10 years.
To encourage employees to take risks, managers must give them more space and autonomy to develop early-stage ideas. To make this work, a high degree of accountability is also needed.