Five Ways to Create an Innovation Culture

5 ways to create an innovative culture (unlike the car industry) March 2017

@LSUsocial

We help companies seize the biggest opportunities in their market - and become bigger, better and braver businesses as a result.

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Culture drives innovation. Culture eats strategy for breakfast.

Culture is just habits added together.

1. Set a bold vision

2. Obsess over consumer behaviour

3. Relish competition

4. Promote diversity

5. Think long-term

5 habits that create a culture of innovation:

1. Set a bold vision

Vision means An inspiring reason to exist over and above making money.

Without Vision Companies get stuck on what they can do - not what they should do.

For the automotive industry, this has meant building products with 4 wheels and an engine - not bringing people the benefit of mobility.

Vision matters because It transcends today’s products - inspiring companies to find new ways to deliver on their vision - and attracts top talent.

2. Obsess over consumer behaviour

Consumer obsession means Putting consumer needs at the heart of the business - encouraging every individual to remain close to, empathise with and care for consumers.

Without a consumer-obsessed culture Companies can become disconnected from the people they serve and unknowingly make bad products.

An obsession with consumers matters because It helps keeps companies relevant by making sure that they prioritise consumer needs over their own products.

3. Relish competition

Competition means Exposure to market forces, not protection by a government.

Without a competitive culture Companies become bureaucratic, not brave - draining economies, rather than benefitting communities.

Being open to competition matters because Competition drives ‘creative destruction’ - constantly clearing ground for the creation of new value.

Competition creates an urgency to disrupt your own business before your rivals do.

4. Promote diversity

Diversity means Being open to people with different skills, ideas and backgrounds.

Without a diverse culture Companies become victims of groupthink - unable to see different perspective and valuable market opportunities.

Promoting diversity matters because It attracts the ‘crazies’ you need to generate new ideas and ensures companies represent all the people they could potentially serve.

@bchesky: “55% of our hosts are women. They have earned $10B to date.”

5. Think long-term

Thinking long-term means Creating value that outlasts any one individual, not just delivering this quarter’s target.

Without a long-termist culture A short-term profit motive encourages under-investment - storing up problems for someone else to solve in the future, not addressing them here and now.

Long-term focus matters because It justifies investment in R&D and a commitment to the future - forcing people to think about the world they want to create, not the trend they want to follow.

5 habits that create a culture of innovation:

1. Set a bold vision

2. Obsess over consumer behaviour

3. Relish competition

4. Promote diversity

5. Think long-term

In Summary

Thanks! @LSUsocial