As the new year begins, many of us reflect on our goals and aspirations, both personally and professionally. It’s a time to consider what we can do differently to achieve meaningful progress. For organizations, this is a prime opportunity to focus on innovation—ensuring your company adapts, evolves, and thrives in an ever-changing world.
There’s a particular scene in ‘Alice in Wonderland’ that I love, where the Red Queen tells Alice, “It takes all the running you can do just to stay in the same place. If you want to get somewhere else, you must run twice as fast.”
I believe this perfectly captures the challenge organizations face today. To stay competitive, doing the basics won’t cut it.
But how can you make innovation a central part of your organization’s DNA? More importantly, how can leadership stay accountable for driving it forward?
Let’s explore some practical metrics and strategies to ensure you make innovation a priority not just a buzzword.
1. Track the Time and Resources Invested in True Innovation
One way to measure innovation is by tracking how much time and effort your team is dedicating to truly groundbreaking projects. Ask yourself: what percentage of our work aligns with ideas that meet the test of being innovative?
To qualify as innovative, a project should satisfy at least one of the following criteria:
- Does it change customer expectations? For example, Apple redefined what customers expect from a phone by introducing the iPhone.
- Does it change industry economics? Consider how cloud computing revolutionized IT infrastructure, reducing costs and increasing flexibility.
- Does it change the basis for competition? Does it change the competencies, the skills you need to compete? For instance, Tesla shifted the auto industry’s focus from traditional manufacturing to sustainable energy solutions.
Conduct a portfolio review of all ongoing projects. Identify which ones meet these criteria, and calculate the proportion of your organization’s capital expenditure (CapEx) and operational expenditure (OpEx) allocated to these initiatives. This gives you a clear picture of how much your company prioritizes innovation.
2. Assess Leadership’s Commitment to Fostering Innovation
Leaders play a pivotal role in shaping a culture of innovation. One way to hold leadership accountable is by measuring the time they spend mentoring innovation projects. Are managers actively encouraging and guiding their teams to think outside the box?
Create a short survey for your team to gauge how supported they feel in pursuing innovative ideas. Ask questions like:
- Do you have enough time to explore creative solutions?
- Do you feel encouraged to take calculated risks?
- Does leadership provide resources and support for innovative projects?
For example, a company like Google is known for fostering innovation by allowing employees to spend 20% of their time on passion projects. While not every company can replicate this, leaders can still create space for innovation through active mentoring and by championing creative ideas.
3. Build a Pro-Innovation Climate and Make It Easier to Innovate
A truly innovative organization doesn’t just expect creativity from employees; it actively removes barriers to innovation. This means simplifying processes, reducing bureaucracy, and ensuring teams have the tools they need to succeed.
Ask yourself:
- Are your internal systems designed to support experimentation and fast prototyping?
- Do your employees believe that innovation is encouraged and rewarded?
- Are you creating a psychologically safe environment where failure is seen as a step toward success?
For instance, Netflix famously adopted a “freedom and responsibility” approach, empowering employees to make decisions without layers of approval. This helped foster a culture of agility and adaptability, making innovation a natural outcome.
Why Innovation Matters
Innovation isn’t just about creating the next big product or service; it’s about survival in a world that’s constantly evolving. As Charles Darwin said, “It’s not the strongest or the most intelligent that survive, but the ones most adaptable to change.”
As we step into this new year, challenge yourself and your organization to make innovation a measurable priority. Start by:
- Reviewing how much time and resources you’re dedicating to truly innovative projects.
- Evaluating leadership’s commitment to fostering an innovation-friendly culture.
- Actively removing obstacles that make it hard for employees to innovate.
The pace of change isn’t slowing down, and standing still is not an option. Take action today to build a culture of innovation and make innovation a priority to keep your organization ahead of the curve. The future belongs to those who adapt, evolve, and innovate—let that be you.
