Building a Culture of Innovation
Iâ€™m a big fan of the book Obliquity by John Kay. Despite the clumsy nature of the word, the message is simple. Objectives are rarely achieved in straight lines, you get there by oblique means. So if you want to achieve something, donâ€™t aim directly for it, do the right things and youâ€™ll eventually get there.
Letâ€™s take shareholder return as an example. A laser sharp focus on shareholder return is less likely to realize that objective than an emphasis on doing what the business is supposed to be doing, for example delivering great products to happy customers. Focus on doing the right things for the business and, surprise surprise, the shareholder returns follow. Kay calls this the â€œprofit seeking paradoxâ€.
Kay gives many examples, another of my favourites compares Paris to Brasilia. Paris is a city that grew in a mostly unplanned and designed way, with many people doing great things along the way. Brasilia was designed and planned. Which is the greatest city? I strongly recommend the book; itâ€™s short and very easy to read.
Reading the book again made me think about culture and, more specifically, a culture of innovation. The best and coincidentally simplest definition Iâ€™ve encountered for culture is â€œthe way we do things around here.â€ It is quite common to read about establishing the right culture within companies, after all who wouldnâ€™t want to do that? Doesnâ€™t culture eat strategy for breakfast? It is a laudable objective, but the danger is that trying to plan and build a culture as a tangible objective is unlikely to work.
Of course you should talk openly about the culture you want, but donâ€™t treat it like a measurable objective. First of all itâ€™s very tough to reach a common understanding of what it means, and consequently to measure. Next, itâ€™s a moving target. You may never know when you get there, and you never stop developing. Finally itâ€™s something that senior leaders can influence but not totally control; and the more they try to do the latter the more negative consequences ensue.
Itâ€™s about aligning what you say with what you do. Consistency avoids confusion. Of course there will be the occasional contradiction but it should always be intended and interpreted as doing the right thing. You will only build the right culture by taking the right actions.
In the context of an innovation culture, it includes being explicit about the role of innovation in strategy; encouraging diversity in creativity; having a balanced portfolio; providing the right resources while demanding that people work efficiently; embracing Open Innovation; applauding initiative; supporting competent failure; supporting brave people taking proportionate risks; promoting the right people; rewarding the right behaviour and results. It is also important to measure the right things by focusing corporate, team and individual objectives on innovation output and process metrics.
Do and say the right things consistently and one day youâ€™ll wake up to find you have a culture of innovation, as well as a successful business.
Kevin McFarthing runs the Innovation Fixer consultancy, helping companies to improve the output and efficiency of their innovation, and to implement Open Innovation. He spent 17 years with Reckitt Benckiser in innovation leadership positions, and also has experience in life sciences.
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