Canadian HR Reporter

SEPTEMBER 8, 2014 CANADIAN HR REPORTER & STRATEGIC CAPABILITY NETWORK Credit: Chones (Shutterstock) Over the last number of years, innovation has taken hold as a critical business concept across the globe, according to Atul Dighe, research leader at the Gartner-owned Corporate Executive Board (CEB) in San Francisco, Calif. "e world has changed," he said. "In a short period of time, we've dramatically changed the way in which we interact with each other, the way business is con- ducted, the way we travel and shop and engage with society in the marketplace." "ose fundamental changes are creating real challenges for us in the business world. ey're profoundly impacting the way in which we all work together and the way our companies interface with the marketplace." Technological advancements have shifted customer expecta- tions in terms of on-demand and digital interactions, resulting in business model transformation, said Dighe, speaking at a recent SCNetwork event in Toronto. "ese changing expectations have profoundly reshaped the way in which we think things should work," he said. "ey should be here on-demand, customizable, deliverable." All of these things create the conditions under which innova- tion is in demand, said Dighe. "Innovation is the word that people use to say, 'at's what I want. at's what I need. at's what I must have.' And yet it is fundamentally the most difficult concept to imagine... Innovation is a monster noun. It means dif- ferent things to different people." While sometimes confusing, innovation still matters greatly and is often demanded by inves- tor, employee and marketplace communities, he said. Innovation is as much about solving problems as selling new products, and is driven by re- sources, people, processes, ideas and culture. But the majority of employers attempting to implement innova- tion strategies struggle to do so, said Dighe. Many attempt to have all em- ployees share in the innovation vision — a method often result- ing in little to no innovation being conducted. Other companies are too timid to risk assets on unfamiliar con- cepts, with short-term pressure overcoming long-term invest- ment, he said. Climate change Refocusing company culture to- wards innovation is a tall order, requiring smaller, more focused "climate" changes in order to be conducted, according to Dighe. "Culture is the deeply held be- liefs and assumptions a company has that are part of the DNA of the organization. Culture isn't something that you can immedi- ately change overnight. It evolves slowly over time." Climate, meanwhile, is a shared perception of the way in which we work, according to Dighe. "It's how we do business. It's the way our teams operate, the way our company interacts with each other when we're at work," he said. "Climate is something we can change. And when we change climate, over time, we can change culture." "Stop trying to change the culture and start changing your climate." An innovation climate consists of components such as high-qual- ity ideas, the delivery of innovative products, retention of innovative workers, continuous innovation, and delivery in the marketplace, said Dighe. Employers that deliver on those components are rewarded by increased worker engage- ment and retention levels and, as a result, creating an innovative climate is "absolutely a worthy pursuit," he said. CEB recently surveyed 100 global companies and 500 re- search and development leaders in an attempt to better understand the impact of innovation culture. Eighty factors were tested, grouped under terms such as senior leader behaviour, manage- ment, collaboration support and failure tolerance. e research revealed that se- nior leadership, rewards and the ideation process had the great- est impact on strengthening in- novation climate, with senior leadership ranked highest, said Dighe. Senior leadership matters e actions of senior leaders are particularly important when fos- tering innovation, he said. e ambiguity around innovation as an objective makes a senior leader's commitment to the out- come critical. Authenticity means the world to a workforce, said Dighe. "People are looking at the se- nior leaders of the organization to say, 'Is this thing about innovation really true, or are they just saying it because you're supposed to say it in today's economy? Are they spending their time and effort on a continual basis on it, or is it just a buzzword for the day?'" And employees aren't only look- ing at the C-suite, he said. ey are also evaluating the actions of their company's research and develop- ment leadership group and senior- level innovation team, seeking active participation in the innova- tion process, over and above regu- lar attendance in meetings. Leaders should refrain from limiting the ideation process by using appropriate tones and leadership posture, said Dighe. Whether they realize it or not, senior leaders shape a corporate innovation climate through their actions and words. Inadvertent signals from the C- suite send strong signals that can foster or kill innovation, he said. "ey say it every day through their words and actions. It's the difference there that makes all the difference. It's that subtlety in the messaging we give." Ideally, employees want to work for senior leaders who prioritize innovation projects, are open to Chasing innovation Building an innovation culture requires small 'climate' changes, leader support: Expert BY MARCEL VANDER WIER An innovation climate consists of components such as high-quality ideas, the delivery of innovative products and the retention of innovative workers. SHAPING > pg. 12

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