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How to Increase Innovation in Organizations

Innovation and creative thinking in organizations is not only difficult to achieve, but also potentially risky, time consuming, and expensive. Is it worth the effort? Several studies suggest that indeed, higher organizational innovation affects overall performance quite strongly and is worth pursuing.

How, then, can innovation and creative thinking be increased in an organization? One important factor seems to be a strong learning orientation within the company.

Learning orientation (as defined in this body of research) consists of the following four components:

  1. commitment to learning,
  2. shared vision,
  3. open-mindedness, and 
  4. intra-organizational knowledge sharing.

Studies have shown that learning orientation not only influences firm innovativeness directly, but that it also moderates the impacts of risk-taking, creativity, competitor benchmarking orientation, and environmental opportunities on innovativeness.

There is also a direct positive relationship between learning orientation and firm performance (as measured with market share, new product success, and overall performance).

To sum it all up, learning orientation seems to be critical for innovation and performance.

For leaders who want to foster that kind of learning culture, the four components above offer a good starting point. For example, as a “commitment to learning”, managers could encourage employees to use company time to pursue knowledge that may lie outside the immediate scope of their work.

There are many other possibilities of how each of those aspects of learning orientation could be implemented and assessed. In general, a company might want to treat “learning orientation” just like they would treat any other core strategic goal.

by Ursina Teuscher (PhD), at Teuscher Decision Coaching, Portland OR

Pesämaa, Ossi, Aviv Shoham, Joakim Wincent, and Ayalla A. Ruvio. “How a Learning Orientation Affects Drivers of Innovativeness and Performance in Service Delivery.” Journal of Engineering and Technology Management 30, no. 2 (April 2013): 169–187. doi:10.1016/j.jengtecman.2013.01.004.

Calantone, Roger J, S.Tamer Cavusgil, and Yushan Zhao. “Learning Orientation, Firm Innovation Capability, and Firm Performance.” Industrial Marketing Management 31, no. 6 (September 2002): 515–524. doi:10.1016/S0019-8501(01)00203-6.

 



The Dark Sides of Positive Thinking

Illustrated by an artist in this RSA animation, Barbara Ehrenreich explores the problems of positive thinking:

Positive thinking, to the extent that it is delusional (and it often is), is not as harmless as it sounds. It can keep us in a powerless or complacent state, rather than forcing us to acknowledge the unpleasant reality and take action.



Book Recommendation for the New Year

Charles Duhigg. The Power of Habit: Why We Do What We Do in Life and Business.

This book offers a very well-researched but easy to understand explanation of how we form and maintain habits. Gaining a deeper understanding of this general mechanism gives us as readers a very useful starting point to develop our own interventions in kicking old unwanted habits and forming new intentional ones. It is not the kind of book that offers a lot of specific advice, but it gives you the knowledge to develop your own best practices. I have found it a very useful framework for improving my own habits, as well as for my coaching work with clients who want to achieve specific goals in their work or personal lives.



Book Recommendation for October

Jon Krakauer: Into Thin Air

This is Jon Krakauer’s bone-chilling eye-witness report of the disastrous 1996 Mount Everest climb that killed eight people. I’m not going to discuss why this book is about decision making and goal achievement (well – the dark side of focusing on a goal). All I’ll say here is it was a page-turner for me. I have deep respect for a writer who can make 400+ pages about climbing a mountain go by so quickly, and yet leave such an impression.



RSA Animate: The surprising truth about what motivates us

I love those animated videos, and this one is adapted from a very interesting talk by Dan Pink about what does – and doesn’t – motivate us. Watch a skilled artist illustrate some very counter-intuitive findings:



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