{"id":131480,"date":"2024-09-30T16:56:50","date_gmt":"2024-09-30T20:56:50","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=131480"},"modified":"2024-10-02T17:54:34","modified_gmt":"2024-10-02T21:54:34","slug":"how-to-encourage-innovation-in-the-workplace","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/how-to-encourage-innovation-in-the-workplace\/","title":{"rendered":"How to Encourage Innovation in the Workplace"},"content":{"rendered":"\n

Why is it hard to be innovative<\/a> at work? What’s the importance of innovation<\/a> for managers, entrepreneurs, and employees?<\/p>\n\n\n\n

Innovation doesn’t come naturally to most organizations, and yet it\u2019s a necessity in modern business for people to think like entrepreneurs. Peter F. Drucker argues that even successful companies must make an effort to invest in innovation.<\/p>\n\n\n\n

Continue reading to learn how to encourage innovation<\/a> in the workplace.<\/p>\n\n\n\n\n\n\n\n

Gearing Up for Innovation<\/strong><\/h2>\n\n\n\n

Embracing an entrepreneurial mindset<\/a> is a challenge for established and successful companies. The real impediment to entrepreneurship isn\u2019t a company\u2019s size, but its inertia. <\/strong>Successful businesses<\/a> give the bulk of their resources to maintaining their existing operations, leaving little room for innovative side projects. However, preserving the status quo can be deadly, since disruptive innovations can undermine even the most stable companies. Therefore, Drucker argues that businesses have a social obligation to innovate, since their stability impacts jobs and the economy. Figuring out how to encourage innovation in the workplace<\/a> requires a deliberate effort on a business\u2019s part to divert resources to entrepreneurial endeavors, even if they don\u2019t seem immediately important.<\/p>\n\n\n\n

(Shortform note: Inertia isn\u2019t limited to large organizations. Small-business entrepreneurs also suffer from a lack of forward progress, but for different reasons than those Drucker faults in big businesses. The lone entrepreneur may feel burnout, a lack of inspiration, or be simply overwhelmed<\/a> by a mountain of decisions. The best way to stem individual inertia is to take any <\/em>action, even if just on small tasks, to spark momentum and reboot productivity. Prioritizing tasks<\/a> and listing goals can help to restore your sense of focus, but it\u2019s also good to acknowledge your achievements in a way that boosts your confidence.)<\/p>\n\n\n\n

To enable innovation, businesses must restructure themselves to reward entrepreneurial thinking. <\/strong>Drucker says to start by reframing your company\u2019s mindset toward change. Instead of viewing it as a threat, actively empower employees<\/a> to seek out opportunities for new products, services, and markets to enter. Innovation should be a routine operation, with goals, timelines, and dedicated resources. Additionally, businesses should proactively analyze and project the life expectancy of their existing products and services to identify areas most in need of innovation. By doing this, your business can develop a comprehensive innovation plan for success<\/a> in an ever-changing marketplace.<\/p>\n\n\n\n

(Shortform note: Some modern industries change so rapidly that companies must build entrepreneurial thinking into their structure from the outset. In No Rules Rules<\/em><\/a>, Netflix CEO Reed Hastings and Erin Meyer explain that Hastings does this by eliminating many corporate controls over employees’ decisions.<\/a> Instead, he empowers them with relevant information and disperses decision-making<\/a> throughout the company. This open policy allows employees to operate autonomously and take ownership of their decisions. Despite this strategy\u2019s potential risks, Hastings believes that in industries where staying relevant is crucial, adaptability trumps error prevention and maintaining the internal status quo.)<\/p>\n\n\n\n

Innovation-Centered Leadership<\/h3>\n\n\n\n

Drucker also writes that companies should set up their entrepreneurial ventures so that they get the necessary executive support and oversight. He lists specific management practices that businesses should adopt to prioritize and nurture entrepreneurial thinking: <\/p>\n\n\n\n