Creating a Culture of Innovation in the Company – Here’s How!

Culture is what people do when no one is looking

Culture is often seen as a very complicated topic. And innovation culture even more so. We also have Peter Drucker to thank for this, who says “Culture eats strategy for breakfast”. But it doesn’t have to be that complicated. Organizational psychologist Edgar Schein says “Culture is what people do when no one is looking. That’s pretty good. Not yet good enough to steer a company’s innovation culture .

To understand and manage culture in an organization, we can say “culture is the collection of all habits in the organization”. Ambitious psychologists and sociologists will probably scream that this is far too simple. But for our purposes, this is perfectly adequate.

The innovation culture is a collection of habits that help or hinder innovation.

A number of habits are helpful if new things are to be created on an ongoing basis. For example, the habit of not criticizing new ideas directly, but allowing them to be accepted first. Even if it seems absurd that the idea will work or if it seems absurd that the idea could advance the company.

6 factors for a good innovation culture

1. Challenging work (challenge/involvement): The degree to which people feel that their work is challenging and meaningful, and how involved they feel in their work.
2. Freedom: The degree of autonomy that employees have in carrying out their work and the freedom to make their own decisions.
3. Trust and openness (Trust/Openness): The degree of mutual trust and openness to the exchange of ideas and feedback in the organization.
4. Dynamism and liveliness (Dynamism/Liveliness): The energy and vibrancy within the organization that fosters creativity and innovation.
5. Debates: The frequency and quality of open, constructive discussions about ideas and approaches within the team or organization.
6. Risk-taking: The degree to which the organization is willing to take risks and try out new, unconventional ideas.

These six factors from Scott G. Isaksen’s “Climate for Innovation” model are a good starting point for working on the company’s innovation culture . And the color model of corporate culture according to Frederic Laloux shows that not every innovation culture is the same.

How do you create a culture of innovation in a company?

If we follow the idea that the culture of innovation is a series of habits that people in the company perform, then changing the culture means changing the habits of the employees. How do you change habits?

• Step 1: Identify which habits are prevalent
• Step 2: Determine which courses of action are desired
• Step 3: Communicate that and why these new ways of acting are desired
• Step 4: Underpin how the new behaviors benefit employees
• Step 5: Impart knowledge and skills so that the new behavior can be practiced
• Step 6: Establish supportive feedback loops so that new behavior can become a habit and violations of the defined behaviors can be pointed out and punished

Whether the first step is to determine which specific behaviors are important for the innovation culture or whether an analysis of current behavior should precede this (for example, through an assessment) depends on the individual case. In detail, there are additional supporting measures that make it easier to establish new habits. These include, for example, suitable multipliers who act as role models and set an example of the desired behavior. The ADKAR model for successful change also provides a good framework for facilitating change in the organization.

Stumbling block for the culture of innovation

CAUTION: A widespread misconception is that a culture of innovation must be created first. Only then should people and teams actually get involved in innovation projects and the creation of innovations. It’s like getting used to a digital notebook (keyword: “culture means habit”) without being allowed to use the digital notebook. And without a specific use case for which the notebook is really needed. An often unsuccessful, missionary push approach.

Pull instead of push for innovation culture and innovation development

The reverse approach is more promising than such a “brainwashing approach” before actual application. The individuals and teams concerned should have a real innovation challenge in front of them. Once the team has accepted the challenge, they are equipped with the appropriate behaviors and habits to master the challenge. This creates a pull effect from the team, who actively need new approaches and habits. The same applies to the development of innovation skills. No innovation training without a project!

Conclusion: The culture of innovation is not the first step

Culture always comes last, never first. Comparable to the return on investment of a company, which you can have in mind at the beginning, but which can only ever be the result and never the first step.

TOM SPIKE accompanies companies to innovation capability and innovation culture

As an innovation consultancy , TOM SPIKE supports ambitious industrial and technology companies in the creation of new products, services and business models. In existing target groups or in new sectors and markets. The culture of innovation is always part of the way to empowering employees to create innovation. For a unique position in the market, the business of tomorrow and the innovations of the future.