Creating The Right Culture For Innovation and Change

I’m not sure I buy into the concept of organisations having a culture of innovation.

After all, innovation is a process consisting of four things:

  • Having an idea that solves a problem
  • Doing something with that idea
  • Proving that it delivers new value for people
  • Translating it into reality and making it part of the everyday

The idea then that innovation is everyone’s job is naive at best.  Successful organisations need to be boringly reliable and radically disruptive at the same time, living with two competing sets of values.

However I do believe in creating the right culture for innovation.

Indeed, for an organisation to support innovation the culture must accommodate the risk and uncertainty that accompanies it.

What kind of culture are we looking for?

For me there are four elements to this:

Just enough friction: the most effective teams have regular, intense debates. As leaders, we need to help our teams disagree more. Discord has to be allowed to take its proper place if we are to solve the problems that matter.

The practice of high standards: innovation requires a set of crosscutting practices and processes to structure, organise, and encourage it. This requires a steady supply of high performing people who are committed. And if you create an environment of energy and high performance it will attract other high performers.

Permission to be different: a culture where it’s allowable, even encouraged, to push back. Everyone should be OK with questioning assumptions,  calling out inconsistent behavior and challenging old business models.

The ability to think and act experimentally: a tolerance for failure through practical experiments that show whether the fundamental assumptions about innovation are correct and what they mean for the business.

These traits only happen through a commitment to creating the right conditions. These are cultures that are reinforced every day, not just by the leadership , but with active collaboration from people at every tier of the organisation.

Let’s face it – most Mission Statements and Company Values are a complete waste of time. They exist as tacked up bits of paper on a wall rather than something that sits in the hearts and minds of people.

Here are three organisations from very different industries whose values are conducive to supporting innovation:

Zappos

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Zappos , the online shoe and clothing store, are known for their unique culture and values. Their CEO Tony Hsieh has said his company’s number one priority is the company culture. “Our whole belief is that if we get the culture right, then most of the other stuff, like delivering great customer service or building a long-term enduring brand or business, will just be a natural by-product of that.”

Here are the Zappos core values that are designed to be different:

  • Deliver WOW Through Service
  • Embrace and Drive Change
  • Create Fun and A Little Weirdness
  •  Be Adventurous, Creative, and Open-Minded
  •  Pursue Growth and Learning
  • Build Open and Honest Relationships With Communication
  • Build a Positive Team and Family Spirit
  • Do More With Less
  • Be Passionate and Determined
  • Be Humble

With the call to “create fun and a little weirdness”, Zappos are making it a place that supports innovation.

Buffer

I love the culture of Buffer, a service that helps you share to social networks.  You can feel the genuine enthusiasm for the organisation from the people who work there and what they tweet and blog about.

The Buffer team has jointly decided which words define the culture and put together this list of the 10 Buffer Values and how they live them.

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What’s impressive here is that they are a continual work in progress, with all members developing them in the open.

Having dealt with Buffer on a number of occasions I can say their values are displayed both in 1:1 dealings and in their online social presence: Listen First , Then Listen More.

Bromford

(Disclosure:  I work for Bromford and have a hand in developing the DNA – but I think it’s worth sharing the story)

Imagine screwing up your mission statement , vision and values and handing it over to three colleagues to start all over again and pitch it direct to the CEO. That’s what Bromford did and it’s how they came up with their original Bromford DNA.

The latest version of the DNA though, developed under new CEO Robert Nettleton, had a completely different genesis – focusing on collaboration. Bromford held more than 30 workshops with over 500 colleagues attending and sharing their views.  After these sessions a smaller group of colleagues took part in a fusion session with Bromford Lab – and from this the final definitions of our DNA emerged.

DNA Slides

 

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The fact so many people have co-developed the DNA gives Bromford a head start in embedding the culture. When you’ve energised the early adopters, you have given the framework for the culture added impetus and traction.

Bromford have even provided colleagues with a personalised notebook for them to record their actions and barriers to consistently living the DNA.

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Supporting ideas from fruition, selecting the best ones, experimenting and growing them is a very fragile process.

All we can really do as leaders is to create a climate that supports innovation –  a climate that will help to sustain a future ready organisation over the years to come.

The End of Trust (and how organisations can rebuild it)

We’ve seen an alarming evaporation of trust across all institutions, reaching the lows of the recession in 2009. Trust in government, business, media and non-profits is below 50% in two-thirds of countries, including the U.S, U.K, Germany and Japan. There has been a startling decrease in trust.  Richard Edelman

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The annual Edelman Trust Barometer is always fascinating reading but the 2015 edition is one that really should make us sit up and take note.

It appears we have entered an era of ‘trust deficit’ – where more people distrust institutions than believe in them. And we can’t blame those pesky bankers for this one – the causes are far more evenly spread that you might think.

It’s a truly global decline, spanning sectors and industries. The rise of connectivity and access to information, fuelled by social media,  surely play a part in this shift.

  • 60% of countries now distrust media.
  • Government is distrusted in 19 of the 27 markets surveyed.
  • Trust is strongest in non-profit organisations but even here it’s waning – alarmingly so in the case of the UK , down from 67% to 51%.

But don’t worry –  those crazy social disruptors and innovators will surely save the day.

Errr – except people don’t trust them either.

Indeed , public trust in innovation is no longer implicit.  As the report says “innovation on its own is not perceived as an inherent demonstration of forward progress, despite the near reverence for the term.”

51% of people say the pace of change is too great , with many ‘innovations’ appearing untested and unproven.

This is surely a wake up call to all of us working in Local Government, Health , Housing and Care. These are sectors that often spend an undue amount of time blaming other people for their problems. Problems , it seems , that lie somewhat closer to home.

Trustworthiness is said to consist of competence (ability), having the right motives (benevolence), and acting fairly and honestly (integrity). Any person or organisation who displays those attributes consistently will be trusted. But get any of them wrong, and you blow it. 

The impact of a trust deficit is tangible:

  • In public services a lack of trust means people not buying into services and values. If means a declining reputation, wasted resources and a sharp increase in avoidable contact and failure rates.
  • In business it hits profit , two thirds of people refuse to buy products and services from a company they do not trust, 58% will criticise them to a friend.
  • And those of us based in the UK will see the impact of the lack of trust in government on 7th May. People are increasingly disenfranchised from mainstream politics – especially, but not exclusively, the young.

So what do we need to do?

As the report says: The trust-building opportunity lies squarely in the area of integrity and engagement.

Obviously there are some global mega trends at work here that are difficult to shift. But what can our organisations practically do to start building up trust?

Here’s five things we could all start doing tomorrow:

Stop saying how great your organisation is

There’s a huge dissonance in the public sector where services are often described as great when they are merely mediocre.

This includes the issuing of flattering press releases , massaged customer satisfaction scores and meaningless benchmarking results. The only people who have a right to say we are great are our customers.

Everytime we say how wonderful we are a little bit of trust dies somewhere.

Start engaging rather than broadcasting

It’s time to do less talking and more listening. Cut it with the jargon and PR doublespeak.

If you want to understand why trust in politicians is flatlining you need look no further than the Twitter feed of prospective Prime Minister Ed Miliband. To say this account is robotic is a genuine insult to our android friends. The Canadian hitchhiking robot HitchBot demonstrates more insight, humour, warmth, and humanity. 

We need to start acting , and talking,  like people again.

Default to transparency

Publish everything. Even your biggest mistakes.

I frequently talk about the work of Buffer , to my mind a truly transparent organisation. Take a look at their transparency dashboard which features details of salaries, profit and loss, even their emails. They have built a business with strong social media presence and enshrined transparency as part of their values.

How honest are our websites? Maybe we should ask our customers.

Stop innovating for the sake of it

The report notes that trusted innovation means us adopting a new framework rooted in dialogue, sharing information and fostering collaboration.

We need the various Labs , Accelerators and Hubs to adopt stringent methodologies for testing innovations and proving their worth before launching them to the public.

Our Bromford Lab and Research Team have begun to show our organisation and customers that testing social innovations in a robust way is not bureaucracy – but necessary evaluation.

Rather than launching initiatives in a blaze of publicity we’d be better off making test results publicly available for review, which 80% of people say would boost trust.

Turn your people into brand advocates

People just don’t buy our marketing anymore. They don’t believe us. We need to radically transform Communications and Marketing teams. Rather than gatekeepers they need to be enablers. The more of our colleagues we have on social , the more honesty we share, the more trust we build.

I’m a big advocate of social CEOs – but the report highlights they are regarded as the least credible sources. A ‘person like yourself’ builds trust – we need to promote the voices of those engaged in frontline services, not the hierarchy.

To prevent further decline we need to consider whether every action we take is a trust builder or trust killer.

Every action, every report, every single tweet.

To rebuild trust we must show we are worthy of it.

How Social Are Your Organisational Values?

Be Different

One of the most repeated laws of the social web is that people trust word of mouth recommendation via personal networks more than they do advertising or PR.

With that in mind , it’s odd that more organisations don’t harness one of the most powerful resources at their disposal-the people they employ.

If ,for example, you look across the UK public sector – there are only a handful of organisations who have a significant employee social media presence. This seems counterintuitive –  as the average employee is regarded as a more trustable brand advocate than the Chief Executive. (Source: Edelman Trust Barometer 2013)

One of the reasons we don’t see more employee social presence is that it doesn’t happen by accident. Organisations that are on the journey to being a social business have cultures that have been developed over time. Cultures that are reinforced every day , not just by the leadership , but with active collaboration from people at every tier of the business.

These are organisations where employees identify with and believe in the company values and are only too keen to promote them.

And some of the organisations who are doing the most exciting things on the social web have company values that actively encourage people to behave differently.

Let’s face it – most Mission Statements and Company Values are a complete waste of time. They exist as tacked up bits of paper on a wall rather than something that sits in the hearts and minds of people.

So I want to look at three organisations from very different industries who are doing things differently:

Zappos

Zappos1

Zappos , the online shoe and clothing store, are known for their unique culture and values. Their CEO Tony Hsieh has said his company’s number one priority is the company culture. “Our whole belief is that if we get the culture right, then most of the other stuff, like delivering great customer service or building a long-term enduring brand or business, will just be a natural by-product of that.”

Here are the Zappos core values that are designed to be different:

Deliver WOW Through Service 

Embrace and Drive Change 

Create Fun and A Little Weirdness 

 Be Adventurous, Creative, and Open-Minded 

 Pursue Growth and Learning 

 Build Open and Honest Relationships With Communication 

Build a Positive Team and Family Spirit 

Do More With Less 

Be Passionate and Determined 

Be Humble

With the call to “create fun and a little weirdness”, Zappos are making it OK to have a unique social presence.

Buffer

Buffer

I love the service and the culture of Buffer, a service that helps you share to social networks.  You can feel the genuine enthusiasm for the organisation from the people who work there and what they tweet and blog about.

The Buffer team has jointly decided which words define the culture and put together this list of the 9 Buffer Values , a continual work in progress:

Always Choose Positivity and Happiness

Default to Transparency

Have a Focus on Self Improvement

Be a “no-ego” Doer

Listen First, Then Listen More

Have a Bias Towards Clarity

Make Time to Reflect

Live Smarter, Not Harder

Show Gratitude

Having dealt with Buffer on a number of occasions I can say their values are displayed both in 1:1 dealings and in their online social presence: Listen First , Then Listen More.

Bromford

be-bgdc

(Disclosure:  I work for Bromford and my handprint is on these values – but I think it’s worth sharing the story!)

Imagine screwing up your mission statement , vision and values and handing it over to internal colleagues to start all over again and pitch it direct to the CEO. That’s what Bromford did and it’s how they came up with their Bromford DNA.

Mainly developed in an intensive 90 minute session and presented to the Board without so much as a report being written – the Bromford approach sets outs an expectation that colleague and company behaviour should follow the Four B’s.

So to Be Bromford you should:

Be Different

Be Brave

Be Commercial

Be Good

The aim was to have something simple that colleagues could remember but also be something they could live by.

I think this post by my colleague Andy Johnson gives some of the best examples of how these values are being brought alive and built upon by colleagues. It’s a hashtag ready set of company values.

Although there is never going to be a “best way” to lead a social organisation – the key differentiator will be the way their service is delivered through people.

We should aim for values that set people free to be unique and memorable – during the 9-5 and beyond.

I’d love to hear other examples of great values you have seen or are developing.