Innovation is a matter of organisational culture

Innovation is undoubtedly the most overused cliche ('value addition' would be a close competitor) in modern management jargon. Infinite media and printing space has been dedicated on this single subject and I am sure many companies and individuals have made millions selling that idea! But I believed that getting an entire organisation to innovate together was almost an impossibility until I joined TESCO. I had two pertinent questions about organisational innovation:

1. Individual enterprise vs. Organisational innovation. Will a bunch of independently innovative employees lead to an innovation organisation? This is a very common predicament - every organisation will have a set of employees who think ahead of the curve, ideating on new changes and opportunities for the organisation - but will the mere existence of such people without proper support from the organisation lead to any meaningful act of innovation?

2. How do you translate innovations to quantifiable business opportunities? Innovation like most other organisational fads tend to remain just a rhetoric in most organisations. We are vehemently endorsed to innovate - but what do we innovate upon and how? How can an organisation move from mere rhetoric to generating ideas with an impact on the bottom line?

The other day when I walked up to my office - I saw the entire campus strewn with different types of hats with the caption 'It's Back'. It took me a while to understand that the hat campaign was referring to Edward De Bono's Six Thinking Hats concept and was the publicity campaign for the Innovation Summit at TESCO Hindustan Service Centre (HSC). The Innovation Summit poses real life business problems ranging from Identifying Old Stock in our stores to automating the cab booking processes in HSC, to the employees and has resulted in ideas that has saved hundreds of thousands of pounds for the organisation. The support that the summit receives from the top management is amazing and that I believe is the real wind beneath the wings. Initial ideas that are submitted are discussed and nurtured and follows a process of elimination with the participation of even the company directors. During the last Innovation Summit - I found an energy akin to what I used to see in my college during campus fests, at HSC - truly then I came to realise that Innovation is a matter of the organisational culture.
Well the business advantages the organisation has received is one aspect of it - the more important part is the air of innovation and change that it brings to work. The current Peoplesoft project that I am working on is the most daringly different and innovative one I've been associated with and every person who has come to TESCO from another company vouches that. I feel a culture where people are looking on a daily basis to improve their processes and adopt the latest technologies, a culture where everyone from a developer to a manager is eagerly interested and nurtures any small process improvement is a true indicator of an organisation that innovates.
So here's what I've learnt - 1. Individuals ideating alone can result in small process improvements or inventions but never in an organisation wide culture of innovation. This will demotivate and kill any enterprising spirit of the employees. 2. A formal process that supports and encourages innovation and may be the solving of specific problems with a very strong support of the management is critical to translate the jargon of innovation to financial benefits (interestingly a sizeable sum is kept aside to implement and pilot the ideas generated by employees in TESCO. This shows a strong commitment from the organisation to act on the employee's ideas). 3. Employees need to internalise the process of innovation and it has to be encouraged at all levels of the company and 4. Tying Innovation to the rewards and recognition mechanism as well as the appraisal process will only help nurture this value.