Chief Learning Officer - December 2007 - (Page 29) environment as a concept or mentioning it in speeches and letters to shareholders. For the past two decades, employees at most large organizations have witnessed relentless cost-cutting, a deep focus on productivity and efficiency, continual merger-andacquisition activity, and the movement of once-prized jobs to outsourcing and offshoring. In this environment, risk-taking has become decidedly out of fashion. Indeed, employees have seen too many careers stagnate or end altogether from failed innovation initiatives. In such a climate, caution usually prevails. For CEOs to stimulate innovation, they need to build a compelling case for change, that, while grounded in the financial realities of the company and its competitive position, still gets employees excited about risk-taking again. They need to constantly communicate that case to their skeptical employees, especially if there is a track record of innovation false starts. At large companies in particular, the battle for the hearts and minds of employees can be long, but it is vital if the stage is to be set. Leaders must be prepared to communicate a commitment to innovation constantly and across multiple channels. They must make their commitment personal and tangible, through face-to-face conversations, small group meetings and even handwritten notes. They must put their communications in context, explaining the importance of innovation in the competitive landscape. And they must be sure to link innovation efforts to strategic initiatives and continually connect those efforts to the big picture. True leadership paints a picture that is expansive enough to encourage people to think big and take risks, while never losing sight of the objectives of the corporation. Even with an excellent communications program, many wouldbe innovators take a skeptical view when leaders begin touting innovation. Employees simply don’t believe that they have the freedom to fail within their company. While many people would love to play a part in projects that could generate breakthrough results, they’ve seen too often the career damage that can occur when those projects fail. As a result, they only sign on to projects they believe are safe. People also don’t believe that the intelligent pursuit of risk is valued by the company. The best intentions are often derailed by the efforts of overly cautious bureaucrats and turf warriors who hold would-be innovators at bay or punish informed risktaking that fails. Finally, people perceive their leaders as being too short-term focused, lacking both the financial commitment and courage to stake their careers on long-term “game-changing” convictions. Leaders who lack the courage of strong convictions tend to lead people who themselves are hesitant to invest in innovation initiatives. Therefore, it is the role of leadership to stamp out the fear that inhibits innovation. They can do so in a number of ways, such as: • Recognizing people for well-executed risks, even if the result was unsuccessful. • Valuing and recognizing project execution from conception through completion, not just the outcome. • Turning “failures” into learning experiences, even structured learning activities. If an innovation failed, what went well in the process? Who displayed innovativeness? Collaboration? Leadership? • Promoting “idea people” and risk-takers to highly visible roles to show that innovation is as important as more traditional metrics like sales or profit margin. • Rewarding and celebrating innovators who get it right the second time, casting earlier failures as part of a growth continuum. • Using small, inexpensive trials to reduce the risk associated with any single idea. Leaders also must embrace diversity. An employee population represents a rich mine of diverse knowledge and ideas, and employees stand ready to volunteer that information in a climate that encourages diversity. Leaders need to build diverse leadership teams and promote institutional values that reflect the global nature of leadership and represent differing points of view. They must ensure that their workforce reflects customer segments, and they must show through rewards and recognition that ideas and their diverse origins are valued by leadership. To best support innovation, leaders must recognize that peer groups often generate “groupthink” and that innovation springs from different perspectives. Stage Two: Taking Action In a knowledge economy where small insights can quickly shift the competitive landscape and where capabilities can rapidly be bought, borrowed or built, leaders must optimize their employees’ ability to take action quickly and effectively. They need to get innovators working together within their organization, as well as reaching outside to collaborate with others. Innovating organizations must make ideas visible with enabling processes and technologies, and provide incentives and recognition for their top performers. In any large company, individuals and groups take on informal roles in a social network that — when understood and leveraged — can improve innovation effectiveness. Sam may be a connector, with a wealth of contacts across business units. Carla, on the other hand, may have vital knowledge for a given initiative, but because she functions as an “isolate” removed from most others, her potential contributions may go untapped. Too often, teams are staffed with little consideration of such informal capital. To mitigate this weakness, leaders need to “connect the dots,” and more are recognizing the value in informal networks. They’re employing techniques and technology that enable detailed network analyses and avoiding common problems, such as fragmentation and insularity, which inhibit optimal innovation. Beyond analysis, organizations are developing metrics to promote teaming that brings together the best and the brightest from different functions or business units. They are hosting forums, such as knowledge fairs and training courses, to build connections that are critical to the flow of new ideas across the organization. At the team level, organizations are focusing on making sure that projects are staffed by individuals from different functions and even different backgrounds. Teams also can serve to engage those new to the organization or whose knowledge is underutilized in their normal roles. At the individual level, mentoring 29 December 2007 I www.clomedia.com I Chief Learning Officer http://www.clomedia.com
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