Characteristics of an innovative culture include

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characteristics of an innovative culture include, tolerance of ambiguity, challenging the status quo, asking “Why?” and not being afraid to speak your mind. 4. Tolerance of Risk The innovation process generally has an element of risk since any change involves uncertainty. Some organizations are risk averse and usually struggle to become innovative. Organizations that incorporate a higher level of risk tolerance in their business processes are more successful in adopting an innovative climate. The downside of risk is failure. However, “ failure is not built on success: success is built on failure” . Sagacious or calculated risk taking is therefore the preferred option, because this implies that outcomes, consequences and contingencies have been considered in advance. 5. Open Communication The existence of free and open communication channels is favourable to innovation because it provides the opportunity for ideas and information to be relayed throughout the organization. It is also important that, in addition to vertical communication, an organization maintains lateral relationships between functional areas to break down any silos. Collaborative information technology solutions, such as Microsoft Sharepoint or Lotus
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BSBMGT608 Assessment Version 1.1 07/19 Page 5 of 18 Notes, encourage information sharing throughout the organization and provide a repository for knowledge and ideas. 6. Flexible Operating Structures Establishing adaptive organizational structures, which are characterized as flat, organic and cross-functional, is a key characteristic of innovative organizations. For example, 3M is a large global company that operates small autonomous cross-functional business units to encourage innovation and participation. In an organic structure job definitions are flexible, and both vertical and lateral communication flows exist. Power and authority are generally shared across team members. 7. New Ideas and Opportunities The continuous flow and capture of new ideas provides organizations with a source of new products and services, product improvements, and novel processes that contribute to the organization’s survival and growth. Creativity is therefore an important key driver of innovation by providing new ideas and new ways to solve organizational problems. Organizations also need to adopt a formal ideas management process to capture, develop, evaluate, protect and implement ideas and suggestions, which form the foundation of new opportunities that satisfy needs and wants in the market. If organizations and their leaders readily embrace the concepts of innovation and successfully implement innovation strategies and processes, they would have made the first steps towards achieving growth and sustainability in the hyper-competitive global arena. Creativity is a skillset that, despite popular belief, can actually be learnt and nurtured within an organization. Senior managers and leaders need to take
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