The Culture of Innovation

bigstock-142999232Innovation has become the business buzzword du jour of late. The business press is filled with articles and guides on how to be more innovative. And while there are nuggets of insight and helpful information scattered among the books and articles, I think those well-meaning authors who try to boil innovation down into a 5-step plan short-change their readers.

Innovation is not a 5-step plan. It is a messy paradox of contradictions, and there is not one “right” way to do it. Innovation can be about tweaking something to make it more effective or developing a totally new concept. It requires structure and flexibility. Urgency and patience. It requires one to chart a clear path, and have a willingness to press ahead without knowing the final destination. It is energizing and exasperating. Perhaps most importantly, it is not a set of tasks, it is a culture that develops over time.

I’m not suggesting that every organization has to be innovative. Much of the world is designed to reward coloring inside the lines. In many ways, that is a safer, easier approach and individuals can build successful, rewarding careers by leading within established guidelines. And even within organizations noted for being innovative, significant portions of their operations may follow a more traditional approach. So what is different about innovative organizations? Their culture.

Culture is “how we do things around here” — what we believe and how we think, feel and behave. Is it okay to challenge someone up the organizational hierarchy? What does the organization lead with . . . people or profits, mission or metrics? Now please hear me . . . all four are important components of success . . . an innovative company still has to be able to keep the doors open. A culture of innovation, however, has to have a higher tolerance for the messiness of trial and error and the fluidity required to maximize the unique gifts and graces of people scattered throughout your organization.

John Kotter’s concept of a dual operating system visually captures what this type of culture may look like, with part of an organization functioning in a more traditionally hierarchical way, and other parts much more fluid, drawing from all areas of the organization. In such a culture, it is okay — it feels safe — for someone with more front line experience to tell someone from an administrative function that their idea simply won’t work (respectfully, of course) and then offer their suggestions for a better approach. Good ideas are the great equalizers, and there is a spirit of productive experimentation as opposed to “this better work or else . . .”

Building a culture of innovation doesn’t happen with a pep talk or a plan. It happens based on your approach, your attitude, and your willingness to act . . . one step at a time. Maybe you’d better get started!

Dual Exhausts Increase Performance

Exhaust PipeIt’s true, they really do (just ask my son the car nut), but I’m not talking about cars here. The same concept works for organizations, too. Let me give you a bit of context . . .

When it comes to leadership development, John Kotter is one of a small handful of authors I consistently recommend because he is able to distill the fundamentals of leadership, management and organizational change down to very digestible concepts.  I was recently reading an article he wrote for the Leader to Leader Journal entitled “Capturing the Opportunities and Avoiding the Threats of Rapid Change.” It was one of those head-slapping moments where he clearly articulated something we do in this organization that a) I thought was rather unconventional, but worked for us, and b) gave a convincing rationale for a strategy that, quite frankly, we implemented instinctually. His concept had to do with maximizing impact by using dual operating systems — in effect, dual exhausts.

Kotter’s observation is that many organizations start as flat interconnected networks, which maximize speed and flexibility. As the organization grows over time, hierarchies necessarily begin to develop and the network approach tends to shrink until ultimately, in many organizations, there is an evolution to a pure hierarchy model. His assertion is that, to respond to the volatility of today’s market, organizations need to strive for dual operating systems that capture both the speed and agility of the network, and the efficiency and reliability of the hierarchy.

I absolutely agree. As someone who leads an organization committed to dual operating systems (even though I couldn’t have put that name to it until I read Kotter’s article), I would also add that the balance point between network and hierarchy is a moving target, and while ultimately effective, “dual exhausts” can be rather messy. Why? Because you do not have two separate operating systems that function side by side in a silo. Rather, the fast, agile network system pulls in people from all points in the formal hierarchy who have the unique skills, energy and commitment for the project at hand. Managers whose job it is to ensure the reliability of the hierarchy have to be on board with this, and allow at least some of their people to function with a foot in both worlds.

Why would your staff subject themselves to living with two sets of rules and expectations (those of the network, and those of the hierarchy)? In a word . . . passion. These people are so excited about the chance to do something extraordinary, that they are not only willing, but eager to take on an additional role to have a hand in creating something new and meaningful. And when you give them a target and let them run, amazing things can happen.

I’m told the advantages of a dual exhaust system include more horsepower, better gas mileage, better sound, cooler look . . . yep, sounds about right. Thanks, Mr. Kotter