How to create a Culture of Innovation
- Jasmin
- Jan 30, 2022
- 4 min read
and why innovation can help you to reach the next level!

In a hypercompetitive global economy, creativity and innovation has never been more important for brand success. What do some of the most recognizable brands have in common? Thinking of top brands like Tesla, Apple and Amazon: they all relied on one strategy- creating a culture of innovation.
Successful firms have realized that they must add value to customers in new, improved, innovative and meaningful ways. Consumers needs are constantly changing, therefore you need strategic innovation that is woven into every facet of your firm. To thrive in this environment and attain strategic success, you need to create a culture of innovation that resonates with your brand and help your brand reach the next level.
What is cultural innovation?
A culture of innovation is an environment that supports “creative thinking and advances efforts to extract economic and social value from knowledge, and, in doing so, generates new or improved products, services or processes.” Some common characteristics include “tolerance for failure, willingness to experiment, psychological safety, highly collaborative, and nonhierarchical”
A positive innovation culture leads to an increase in the innovative strength of the company. As you work to create culture of innovation that aligns with your brand, you will find great customized solutions that energize sustaining success.
How can you create a culture of innovation?
1.Identify your inspiring purpose
Innovative organizations should have an inspiring purpose to unite their employees. Having a clear and inspiring purpose will not only unite employees but also motivate them to do their best work. Think about the true mission of your organization and how it relates to your customers. How do you bring value to your customers? What can your brand do that no other brand can? How do you differentiate yourself from other competitors?
2.Define a clear innovation strategy
A clear innovation strategy should provide direction for the team's innovation efforts by setting a clear area of focus. The expectations and goals regarding innovation should be clear to every employee. A great organization will run various innovation projects across time horizons and different ambition levels.
3. Tolerance for Failure
Tolerance for failure is an important characteristic of innovative cultures. Instead of being afraid of failure, an innovative culture understands how to use fear in a way that supports success. Employees should not be afraid to make mistakes since they know that setbacks lead to even greater successes.
Even some of the best brand innovators have experienced failures, for example, Apple’s MobileMe or Google Glass.
4. Willingness to Experiment and embracing change
Organizations should be comfortable with uncertainty and ambiguity an embrace a culture of experimentation. They should experiment to learn rather than to produce an immediately marketable product.
Embracing change is important to recognize opportunities for adjustment and can lead to your company’s biggest breakthroughs. Leaning into opportunities for change is essential to a successful innovation culture in the workplace.
„A willingness to experiment does not mean randomly throwing paint at a canvas.”
5.Psychological safe environment
Psychological safety is an organizational climate where employees feel they can speak open about problems without fear of reprisal. Research has found that a psychologically safe environment help organizations support learning and innovation.
6. Flat but string leadership In culturally flat firms, people are given wide latitude to decide, act and voice their opinions. A flat organizational hierarchy can respond faster to rapidly changing circumstances because of the decentralized decision- making- process and being closer to the sources of relevant information.
7. Easy to use systems, tools and processes Easy to use processes can help manage the flow of ideas from the conception to implementation phase. Simple to use frameworks and systems help make innovation happen.
8. Accessible resources and funding
A great organization should match their innovation ambition with the right level of resources and funding so that ideas can flow freely from ideation to implementation.
9. Enabling structures and space An innovative organization should structure their workspaces and teams to deliver on the innovation strategy. Collaboration with other organizations and start-ups outside the firm is key to innovate.
Conclusion Having a culture of innovation is vital if you want to thrive, innovate and be a brand leader. This foundation enables firms to innovate constantly and at scale. When cultivating a culture of innovation, you are cultivating a unique system since every company’s culture is inherently different. You should align the values of your company with the company’s goal.
References
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Emmons, J. et al (2012) Five Ways to Make Your Company More Innovative. Harvard business school. Available at:
https://hbswk.hbs.edu/item/five-ways-to-make-your-company-more-innovative
Hoa Thi Nhu Nguyen, Huong Thi Thien Nguyen, Anh Thi Lan Truong, Thao Thi Phuong Nguyen, Anh Van Nguyen. (2021) Entrepreneurial culture and innovative work behaviour: the mediating effect of psychological empowerment. Journal of Entrepreneurship in Emerging Economies ahead-of-print:ahead-of-print.
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Ludema and Johnson (2019) Seven Steps to Creating A Culture Of Innovation. Forbes. Available at:https://www.forbes.com/sites/amberjohnson-jimludema/2019/02/12/seven-steps-to-creating-a-culture-of-innovation/?sh=51f3e199198e
Lead Innovation Management (2021) 10 Measures to create a culture of innovation. Available at:https://www.lead-innovation.com/english-blog/measures-to-create-a-culture-of-innovation
McKinsey (2021) Creating an innovation culture. Available at:https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/creating-an-innovation-culture
Pisano, P.(2021)The Hard Truth About Innovative Cultures. Harvard business review. Available at: https://hbr.org/2019/01/the-hard-truth-about-innovative-cultures
Robins, T. How to create an innovation culture. Available at: https://www.tonyrobbins.com/career-business/innovation-culture/
Bendak,S. et al (2020) How changing organizational culture can enhance innovation: Development of the innovative culture enhancement framework, Cogent Business & Management, 7:1, DOI: 10.1080/23311975.2020.1712125
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