From the earthy harmonies of soul jazz to the sporadic, atonal forays of free jazz – lateral thinking is the key distinguishing element in this type of music. Likewise, building innovation and an entrepreneurial culture could be compared to a form of jazz: it takes a lot of practice, a great deal of mistakes and emanates from a culture that values playing and improvising. Get that right, and then we’ll swing.
But how does the Australian corporate company jazz it up and expedite innovation?
Undeniably, a culture of innovation sets an organisation apart in terms of its ability to adapt and respond to fast changes in the environment. With this in mind, we’ve gone over five tips to nurture an internal culture of innovation.
For many leaders, an open and receptive culture is the very essence of creativity and innovation. It is not enough to generate big, new ideas if no one is open or receptive to them. Idea receptivity is equally as important as idea generation.
Australia’s education system is one the most developed in the region and our graduates are skilled. However, graduates straight out of university generally aren’t fully formed commercial innovators. Thus, it is vital to create your own learning program or career plan within a company to swiftly up skill graduates in relevant areas.
The capability to make strategic decisions swiftly is vital to a company’s success and overall survival in an increasingly competitive marketplace. Often, innovative suggestions get stuck in just the ‘idea stage’, without quick enough action. Having an experimental mindset also makes it easier to take risks, which is one of the other key features of a creative culture. Innovation by definition means testing new ideas and approaches, which involves risk-taking, learning and failure. This partly explains why high-achieving managers find even the idea of innovation difficult, as the outcome is not predictable.
Employers can greatly benefit from a diverse workforce, whether it’s through gender, race or culture. Diversity unlocks innovation by creating an environment where “outside the box” ideas are heard. The best leaders know that innovation must come from multiple sources, both internally and externally. When people and their different points of view and experiences converge, they create the types of innovations that individuals could not have done or found alone.
An innovation culture ultimately allows staff to experiment. Research and development (R&D), in particular, is a great way to build the skills that you need to innovate, and it is also useful for finding the best way to make new ideas real. In 2016 companies wishing to develop products, improve technology, and increase cash flow should consider adding R&D to their businesses resolution list. Furthermore, the government currently offers a lucrative tax incentive that can assist in funding research. In certain cases, it entails a 45% refundable tax offset to firms generating less than $20 million in annual revenue and a non-refundable 40% tax offset to other companies. The R&D tax incentive offered by the federal government is obtainable to Australian corporations that are incorporated under Australian law.
Overall, innovation success is primarily dependent on corporate culture. In a study of 800 firms across 17 cultures, company culture was the single greatest determinant of innovation success – not process, star hires, budget or national culture. Indeed, creating an open, collaborative innovation culture is the preeminent business challenge of this century.
Are you interested in learning more about innovation?
Our InnovationCAFE 2016 is approaching and will aim aims to explore the importance of innovation in Australia’s economic future. Register your interest today for your corresponding state to make sure you don’t miss out: Brisbane Event, Sydney Event, Melbourne Event, Perth Event.
