Four Techniques for Establishing a Successful Innovation Culture

Businesses that place a high priority on innovation enjoy increases in employee engagement, revenue, and diversity and inclusion.

What does innovation look like in the modern world? An enormous budget? A tech-forward Silicon Valley team? An R&D department with a focus?

What about inclusivity?

When striving to grow and adjust to changing market conditions, many firms do not consider workplace diversity and inclusion. However, an organization's innovation and inclusion cultures are tightly entwined.

And that relationship may pay off handsomely: businesses that embrace innovation by involving every employee in the process beat their rivals and experience a five-and-a-half-fold increase in revenue.

How might one define an innovative culture?

Everyone is encouraged to ask questions, have conversations, and come up with new ideas in an innovative atmosphere. Any firm that wants to thrive needs to have an inventive culture. However, investing heavily in R&D or embracing cutting-edge technology isn't always the path to effective innovation. Instead, it results from fostering an emotional bond between every person and the organization's purpose strategy.

According to Frans Johansson, CEO of The Medici Group, "diverse perspectives are ultimately where innovation comes from." "The best sense for creating ground-breaking ideas comes from combining ideas from different industries or cultures."

Johansson is summarizing what we at Great Place To Work® have understood for thirty years: inclusive workplace policies are essential to developing an innovative culture. We refer to this tried-and-true concept as Innovation by All, which occurs when executives foster the knowledge, abilities, and enthusiasm of every individual within the company. Everyone connects, everyone creates, and everyone makes a contribution.

How to foster an inventive culture at work

Based on our yearly research, we have identified six habits that foster an innovative and inclusive work environment at the Fortune 100 Best Companies to Work For®.

1. Provide space for all kinds

Leading businesses are characterized by their ability to foster an atmosphere that values all opinions. They provide space for their workers' whole selves, mental, emotional, and otherwise, creating a psychologically secure environment that encourages innovation and taking calculated risks. The organization advances because of this inclusive and empowered culture, which fosters the emergence of new ideas.

Employees find great resonance in this open atmosphere. For example, an employee of 9th Wonder who identifies as LGBTQ+ provided the following insight into their special workplace:

"Ideas are respected in our workplace, regardless of their source. Executives are affable and transparent. When necessary, there is discussion. There's no culture of dread. If anything, you might be overburdened, but rather than feeling under pressure, you want to accept assignments because you don't want to miss out on something amazing.

Recognizing the lives of employees outside of the workplace is another aspect of giving them space. Employee performance will suffer if they are preoccupied with matters unrelated to their jobs.

This area of 1-800 Contacts covers financial wellness. The organization is aware that having financial difficulties can be a major cause of stress for workers. Furthermore, workers under financial stress skip more work. Employees' mental space is increased when they receive mortgage training, debt relief assistance, and crucial financial guidance from 1-800 Contacts.

2. Empower others by expressing gratitude to

Acknowledging workers for their efforts as well as their results reinforces the concept. It serves as fertilizer instead. Both individuals and the entire business are energized by it. and inspires others to continue making contributions. The passion for improving things is contagious and enjoyable. And that stimulates creativity in and of itself.

The following survey response from an OC Tanner employee exudes energy:

This business specializes in acknowledgment and gratitude. That's what we do, but we excel at it inside as well. It is something that the entire organization witnesses frequently; it is genuine and authentic, not staged or manufactured. This motivates us all to perform better and acknowledge excellent work when and wherever we encounter it. As we collaborate side by side, people become kinder and more in charge. Our goal is to treat people like human beings, not just things to pass by. In this company, everyone is more respectful and cooperative. Everyone is capable of feeling appreciated.

3. Foster a variety of interactions

Prominent establishments distinguish themselves by cultivating an atmosphere that welcomes improbable partnerships, offering venues for cooperation between people who would not otherwise cross paths.

An Agilent Technologies employee emphasized the team's inclusion and adaptability when asked what makes their workplace unique:

"In projects, there is a strong belief that everyone's voice matters, regardless of titles or duties. The group has shown a great deal of receptivity to fresh perspectives and new, developing trends.

These varied relationships not only improve the working environment on a daily basis but are also extremely important when things go hard. As an example, let's look at how Jeff Dailey, the CEO of Farmers Insurance, handled a significant problem. To strategically manage the crisis, he assembled a cross-functional team of leaders from the legal, real estate, internal and external communications, government relations, and human resources departments.

This example highlights the value of diversity in problem-solving and decision-making, demonstrating how a wide range of viewpoints can produce more thorough and successful plans even in the face of difficulty.

Innovative businesses often place a high value on individual diversity and inclusiveness. They understand that having personnel with a variety of experiences can encourage creativity and potentially increase sales.

4. Make growth investments for all.

It is foolish to focus resources just on those who exhibit "high potential." It can have unexpected repercussions and disregards other people's potential. Feelings of favoritism and dissatisfaction are common outcomes.

The most effective leaders understand the importance of utilizing each person's full potential and investing in their professional and personal growth.

Bitwise Industries is one of the few businesses that best represents this. Co-founder and CEO Jake Soberal responded that one of the company's secrets to employee retention is that it "is not tight-fisted."

Bitwise was already supporting flexibility and non-linear paths for growth and employment, as the majority of employees found their agency grew throughout the epidemic and the shift to remote work.

"We support that organization and inquire of the staff, 'Is there anything you would want to do as a hobby? We genuinely want to help that and watch it go forward. Do you wish to investigate a new interest you have for yourself? We want to provide you with more avenues and chances to accomplish that.

According to Jake, Bitwise's inclusive training and career development policies enable employees to envision themselves moving between departments inside the organization. And who, in your opinion, gains from all that external motivation? The culture of the company.