Based on Proprietary Research “If you want to increase initiative and innovation, you have to encourage and embrace failure. A culture that punishes less-than-ideal risk-related outcomes will stifle both initiative and innovation”.
Prevailing in
face of intense competition requires companies to be nimble and innovative.
An innovative and high-initiative culture helps an organization respond better to market signals. It can better exploit opportunities, get new products and services to market more quickly and more often capture first-mover advantage.
I had an opportunity to conduct some proprietary research recently that sheds light on how to increase innovation and initiative-taking in organizations.
The Situation
I was retained by
research and development operation of one of
world’s largest consumer products companies. In
past few years, they had acquired another consumer products company with some well known and highly regarded brands. The problem was that
acquired company had a risk avoidance culture in stark contrast to
acquiring company’s more risk inclined culture.
The talented scientist and engineers in
R&D operation were a valued element of
acquisition. But
ingrained risk aversion within
R&D staff was resulting in insufficient innovation.
My task was to help these high value team members expand their comfort zone and become more risk inclined.
The Research
Prior to
time spent on-site at
research labs, I conducted an anonymous on-line survey for
R&D staff. The survey addressed
following questions.
1. Organizational Culture – How, if at all, has
risk culture changed in your organization in
last few years?
2. Risk Hesitancy – What is your primary source of hesitation when it comes to taking work-related risks?
3. Risk Catalysts – What would make you more comfortable taking thoughtful, well-considered work-related risks?
Forty four people responded to
survey. The results of
survey yielded some fascinating insights.
Survey Result Highlights Risk Hesitancy - What is your primary source of hesitation when it comes to taking work-related risks?
The Implications of Failure – 59% Lack of Permission, Leadership, Support or Organizational Capability – 14% I Have No Hesitancy – 5% Risk Catalysts - What would make you more comfortable taking thoughtful, well-considered work-related risks?
Less-than-ideal outcomes being commended and not having a negative effect on career. – 49% Leadership Direction and Support – 31% Already Comfortable Taking Such Risks – 8% Note: Responses have been grouped by category. Respondents were provided an open ended essay format for their responses with no suggested answers provided.
Perceived Condition
The great majority (61%) of those responding said they were being encouraged to take more risks. The balance, in pretty much equal proportions, said there had been no significant change in
last few years (21%) or they were being encouraged to take fewer risks (18%).
Clearly,
leadership of
organization had sent
message that more risks needed to be taken.
Risk Hesitancy
When asked about their primary source of hesitation in taking work-related risks, almost six in ten (59%) said
implications of failure.
The second most common response was provided by only 14% and centered on their perceiving a lack of permission, leadership, support or organizational capability as making them hesitant to take risks.