Building a Culture of Innovation

Looking for the next great business concept? Searching for a breakthrough idea in workplace processes? Your organization is not alone. According to a study conducted by The Conference Board, promoting innovation is the top challenge companies are facing.

With today’s rapidly changing markets and fast-paced business mindset, creating the next great innovation is important to future success. More and more, the mantra “innovate or die” is being invoked as today’s growth leaders continue to be those organizations that have embraced and embodied innovation. In light of the increasing pressure to stay relevant and cutting-edge, how can your organization embed a mindset of innovation, change and forward-thought into your culture?

Why Is Innovation So Important?

Innovation is the foundation for maintaining an edge in today’s business environment. It is one of the key differentiating factors in setting your organization apart from the crowd. Every company must innovate to compete successfully.

The marketplace demands new products, new services and creative ideas. Recent, emerging trends including globalization and shifting technology have increased the push for efficiency and effectiveness, further driving the innovation process.The fear of appearing obsolete or out-of-date is only expanding that drive. Business as usual is no longer enough to prosper.

As marketplace conditions evolve, technology advances at a breakneck pace, and the face of the workplace continues to transform. Positioning your organization at the forefront is an important factor in building success. For insurance organizations in particular, climate concerns, growing cyber risks, changing compliance demands and continued global expansion are pushing the continued quest for innovation.

What Drives Innovation?

While most organizations understand the need for innovation, many struggle to turn this idea into a workplace reality. If your organization is ready to embrace forward-thinking and new ideas, now is the time to take that next step.

The most important driver of innovative thought within a company is internal corporate culture. The key is to examine your current culture and determine whether it is successfully cultivating engagement and enthusiasm. Is your culture challenging people to take risks in a safe and supportive environment? Are you fostering learning and encouraging independent thought?

Take a good look at your current company culture and see where there is room for change. Even a slight adjustment may be the ticket to big results. A number of organizations have already embraced the move toward flexible hours and open office environments. Now is the time to take things a step further and make a splash in the innovation game.

How Can Organizations Encourage Innovation?

Thanks to the conservative reputation of the insurance industry, many individuals refer to the common cliche that the only time “innovation” and “insurance” appear together is in the dictionary. However, the industry’s current reputation hides a historic record of firsts – from the first written insurance contract to today’s mobile insurance apps. While the industry may not lend itself to the groundbreaking innovations of other business segments, the demand for new methods and models remains. The challenge is in fostering and nurturing a mindset of creativity and ideation.

One of the first steps in building this new innovative mindset is to create a culture of confidence. Taking risks and proposing ideas requires a certain level of trust within the organization. If that trust is missing, it can be challenging to get employees to truly open up and share their ideas.

Provide safe spaces where risks can be taken. Consider implementing innovation meetings and group workshops built around brainstorming to encourage ideas. Promote the free sharing of new ideas and encourage employees to take risks.

Build a culture that understands the positive aspects of failing. As difficult as it may be, innovation often means overcoming the desire to mitigate risks within your organization.

If you truly want to innovate, your organization must be willing to take a chance – and accept the occasional failure. Avoid penalizing employees for failures and instead embrace them as an opportunity to learn and grow. Knowing they will not face significant trouble for an idea that did not pan out will encourage employees to speak up and share their insights and ideas.

Consider implementing “innovation time” for employees to get away from their daily tasks and work on projects not directly related to their work. A number of companies have used this tactic to tap into employees’ creative processes with great success. 3M Corporation’s famed yellow sticky note was a byproduct of the organization’s “15 percent time” – a program that allows employees to use a portion of their time to follow their passions.

Do not just sit back and collect the great ideas of your staff. The key to success is following through. Innovation is only worthwhile if it results in your organization taking action. Make sure you have the time and resources to develop and implement the concepts you feel are worth acting upon. A lack of follow-though will limit the flow of ideas as employees begin to feel the innovation process is pointless.

Building a culture of innovation and forward thought will not happen overnight. It takes time and dedication to be truly beneficial. However, when fostered correctly, this curiosity and discovery can be the key to your organization’s future success.

Topics InsurTech Leadership