10 Ways to Foster Innovation in Your Company

Tuesday, 27 May 2008
By Kosmas Smyrnios and Amanda Gome

The economy might be slowing, but now is not the time to stop innovating and let your competitors gain the upper hand. Here is how you can foster a culture of innovation in your business.

Times are dangerous. Many companies are thinking about cutting their costs, however this can also send a message that staff should maintain the status quo and that new ideas are not welcome.
The last recession taught smart companies a valuable lesson – while poorly-managed companies bunkered down in survival mode, innovative companies snuck up and took the hibernating companies’ market share.

Consumers, starved for new products and services that are cheaper, better and more exciting, supported these innovators. As the cycle turned, poorly-managed companies hit the mid 1990s with diminishing revenue and market share, and nothing in the product pipeline.

So as times get tough, it is imperative that companies foster a culture of innovation. But how? RMIT University recently studied 92 fast growing companies to look at how these entrepreneurs develop a sustainable culture of innovation.

Here are the top 10 ways they foster an innovative culture.

1. Vision and core business values sets the tone
2. Organizational culture is key
3. Take a team approach
4. Encourage open communication
5. Recruit and reward innovative people
6. Take a customer focus/orientation
7. Benchmark to encourage further innovation
8. Investing in and adopting state-of-the-art technology
9. Flat management structure
10. Involve others outside the business in their vision and innovation

Click here to read the article in its entirety at Smart Company