What is a culture of innovation & why is it important during a recession?
A culture of innovation empowers people to quickly make changes to services/products/processes that meet the changing needs of clients and the company. It doesn’t matter what a business does, the performance of its people determine its destiny. During good times, badly run businesses can survive and even grow. As the saying goes, a rising tide lifts all boats. When the economic tide goes out (recession), these businesses are certain to be left high and dry as: 1) sales drop when products and/or services become perceived as too expensive or irrelevant, and/or 2) their internal operating processes fail to increase efficiency or reduce cost at the same pace as failing income. The result is rapid reduction in market share and often financial insolvency.
Conversely, businesses that adapt to their client and company needs quickly and effectively will survive these times and in many cases grow. This process of rapid innovation gives organizations a better chance of emerging from a recession even stronger for two key reasons: 1) there will be less competition as weaker competitors falter, and 2) these organizations will create new and more efficient services and products and stronger client relationships.
How is it created and fostered?
An innovation culture begins with a solid value system and empowers employees to creativity evolve the business within a clearly understood framework. Companies must develop their own belief system, but key values often include trust, respect, and a passion for excellence. A clear vision of what the company is trying to accomplish (and not do) is also critical. The combination of these elements forms a framework that allows creative action within the agreed boundaries.
Read more about what works and what doesn't when creating and fostering and innovation culture in Part 2