Attributes of an Innovative Organization

Innovative organizations have organizational structures that are more often team-based than hierarchical:

Creativity tends to be considered a characteristic that an individual possesses. We idealize the creative individual who has the brilliant insight that leads to an innovative solution. We may consider some teams as “creative,” but that usually means that the team contains some creative individuals in positions of authority or influence. Innovative organizations believe it is possible for an individual to be the best they can be - and work on a team too!

Innovative organizations tend to operate through open communications rather than through formal processes:

Organizations that share information, and where people are aware of what is going on outside of their own immediate jobs, will usually be more creative.

A free flow of information exists across all organizational boundaries. The communication patterns in such organizations allow expression of individual personalities, downplay or ignore traditional structures, minimize bureaucracy, foster informal group interaction, and support project teams’ access to their members and to organizational resources.

Innovative organizations do not personalize conflict:

In fact, they value intelligent dissent over passive agreement, because the former implies a deeper understanding than the latter. When there are disagreements in a creative process, they are usually about ideas and not between people.

This is very different from a “business as usual” environment, where the disagreements are political and personal in nature. In a creative setting, there is a sense of partnership, because people are focusing on the problem or project rather than on each other.

Innovative organizations focus on who you know as well as on what you know:

Much of their work gets done via relationships. The organization relies more heavily on relationships than structure for its creative strength. Such an organization is, in essence, a “neural network.”

Innovative organizations appreciate individuality and diversity:

Different personality types and cultural backgrounds bring distinct perspectives which are listened to and valued. These organizations appreciate that people with varying backgrounds may see different aspects of a problem or solution. By valuing and looking for difference, they enhance the possibility of cross-fertilization and novel connection. Rather than trying to make everyone “fit,” they recognize the value in having people “stick out.”

Innovative organizations encourage fun at work:

When creativity is present, people are engaged, enlivened, fully-participating, empowered to think. Creativity is an active process. Some cultures operate from the premise that if people are laughing, having fun, or enjoying their work, then it cannot be work and should be stopped. However, an observer probably would not find much creative thinking going on when fun or play are absent.

Innovative organizations reward curiosity:

There is a low tolerance for managers who say (or imply): “Just do what you’re told,” “We’ve always done it that way,” or “I didn’t hire you to think.” Working smarter is valued over working harder.

Innovative organizations do not believe in the answer:

Is someone who is highly paid for their knowledge allowed to wonder about things, or are they expected to know the “correct” response? A typical organization rewards them on their ability to know the right solution right away. An innovative organization gives them open space for wondering, providing regular physical and psychological space for thinking and reflection.

Such an organization believes that there are numerous ways of getting to a solution. Most professionals are taught that there is one answer, but innovative organizations know there are lots of possible answers to everything.

Innovative organizations encourage people to bend the rules:

They believe that people should rock the boat and advocate radical change. Their employees take pride in being different. There is something inherently motivating about breaking rules we disagree with and beating the system, particularly if we emerge with a business breakthrough of significant value to the organization.

All companies like to brag about these counter-cultural revolutions (when they work), and hold them up as shining examples of the perseverance of hard working, intelligent employees. The sad thing is that these efforts are exceptions to the rule and require incredible bravery, persistence, and a good bit of luck to accomplish. Most are covered up to prevent other employees from getting “crazy” ideas.

Innovative organizations tolerate errors:

Creativity is most prevalent in organizations that can accept reasonable risk and view mistakes as a natural part of the creative process. They realize that some creative initiatives will not be successful. They have eliminated unproductive negative reactions to these very-human mistakes, so that they do not become debilitating, bureaucratic roadblocks to organizational growth.

That is not to say that the creative organization must be willing to tolerate fools (people who make the same mistake more than once), but rather that it must not confuse fools and innovators, recognizing they frequently display similar behaviors.

Innovative organizations avoid punishment:

If the organization has a culture in which creativity is appreciated, it will be present; where it is punished, it will be absent or covert. The worst thing that can happen is for individuals who have put their heads above the parapet, and taken responsibility for a creative process, to be unreasonably criticized in the event of failure.

When people are fearful they generally shut down and do what is safe, what they have been told to do - no more, no less. A “following the rules” mentality takes over whenever people feel they must constantly look over their shoulder, to avoid being “caught” doing something they have not been told specifically to do. Creativity requires freedom. Freedom and fear of punishment cannot coexist in the same territory.

Innovative organizations allow for outrageous behavior and thought, time for idea incubation, openness to wondering and, in short, all the other sometimes irreverent behaviors that elicit different, creative reasoning.

If you observe a workplace where people question existing patterns of thinking, take risks, are not afraid to loosen up, are not stuck in a lot of processes and red tape, have a powerful vision of the future, and support each other’s creative behavior, then you are very likely looking at one that measures high in creativity and innovation.