Describe the three factors that companies can use to encourage innovation.

Question

What will be an ideal response?

Answer 1

Organizations have to develop ways to make innovation happen over and over. Three ways to do so are by providing (1) the right organizational culture, (2) the appropriate resources, and (3) the correct reward system.

An organizational culture that doesn't just allow but celebrates failure is vital toward fostering innovation. Most new ideas will fail. But if an organization doesn't encourage risk taking, that organization won't become a superstar in innovation. Also, an organization's managers may say they encourage innovation, but if they balk at the expense, they aren't putting their money where their mouths are. Innovation doesn't come cheap. Its costs can be measured in dollars, time, energy, and focus. Lastly, R&D staff should be rewarded, like salespeople, with incentives, such as commissions, bonuses, and perks. People should not be punished when attempts to innovate don't work out, or they won't attempt again in the future.