KPMG in Canada | Business Adviser

Business Adviser Inge Christensen

Innovation starts and stops with people

By Inge Christensen
Thinking Coach and Creative Consultant

In 2003 I wrote an article for the National Post about a buzzword: innovation. I observed – with data to back me up – that although executives talked it up as critical to survival, few companies were actually doing it.

Four years later, in a survey* of Canadian corporations on the topic of innovation, 88% of executives reiterated that innovation is important to the future of their organization. In contrast, only 22% had a formal process for it and only 33% thought their organization was effective at it. Only 37% said they even understood the process. While admitting slow progress, nearly half claimed that their corporate culture “encouraged innovation.”

Clearly, there is a huge gap between intent and action. Although the reasons for this are complex, in my opinion, one truth trumps them all: innovation starts with ideas, ideas come from people and, therefore, innovation starts (and stops) with people. Creativity is personal and people decide how they will contribute ideas to their organization (or not) based on their feelings. Emotion has turned innovation into murky waters.

I once interviewed William Gordon, famous inventor and founder of Synectics (a global innovation consultancy), and he summed up the barrier to corporate innovation in one word: fear. Understandably, most people are not willing to jump into murky waters. Here’s why:

They’re not compelled to do it. People turn off when the driver of innovation is fear-based e.g., issues created by a lagging economy. They’re waiting to hear goals that inspire them.
They don’t know how to do it. People are overwhelmed by the amount of information on innovation; it has made the topic inaccessible. They’re waiting for a way to harvest ideas that is user-friendly and efficient.
They don’t have time to do it. People won’t invest in “creative work” if it competes with “regular work” for which outputs are measured. They’re waiting for their bosses to address this conflict of priorities.

While employees are waiting for their leaders to make it safe to swim, executives have fears of their own, heightened by their accountability. Some try to go swimming without getting wet i.e., manage risk to the point where innovation is not possible.

So how do you get into the water from where you’re standing right now? Do exactly that: get in. Understand that innovation doesn’t have to be a deep dive. Start by wading in up to your knees and then keep moving. Gather teams and leaders, and walk in together. The first steps are…

Determine what you want to innovate. Set realistic goals – incremental innovation is where most companies begin – and align them with your strategic plan. Be specific about what kinds of new ideas will create value for the organization and how that value will be measured.
Establish a common framework for generating ideas. Make it usable by people from all functional areas, for challenges of all types and sizes. Make it simple, efficient and strategic, and describe it in plain language.
Establish a common language to talk about innovation. Reinforce goals and value in daily “creative conversations” between leaders and teams. Discuss the progress of each creative challenge in terms of the framework (above) so that next steps are always clear.

Is swimming a risk? Yes, but so is staying on the shore. A 2010 survey** revealed that innovation, competition and human resources were the top three factors Canadian executives believe will most affect their company in the next three years. They’re all linked: in order to attract and retain the creative people who will grow your company’s competitive edge, you need to offer an innovative culture. When your best thinkers jump in with great ideas, keep them energized vs. asking them to swim against the current.

It’s only because innovation starts with people that emotion can get in the way of it. The organization that accepts and works with this reality has a platform on which to build and sustain an innovative culture. The key is communication, collaboration and empathy. Inspire employees to share their ideas and then make it safe and productive for them to do that. Tell them, “Come on in – the water’s fine,” and really mean it.

*The 2007 Business Pulse Survey of Corporate Canada produced by the Schulich School of Business (York University). The 2007 edition focused on innovation.

** The 2010 edition of the same survey, above.

Business Adviser is published by KPMG Enterprise™ specifically for owners and executives of private companies. KPMG Enterprise is devoted exclusively to helping business owners and entrepreneurs build thriving enterprises. For further information about how KPMG Enterprise can help private companies, visit www.kpmg.ca/enterprise.