Foster a culture of innovation

For companies of all sizes and structures, staying competitive in today’s marketplace demands a new level of innovation. In knowledge-based industries, innovation is deemed the norm, but companies in all industries and sectors are learning that adopting a strategy of innovation is the key to enabling future growth. In the past,business owners may have been able to ...
Foster a culture of innovation
Mario Piccinin, EY

For companies of all sizes and structures, staying competitive in today’s marketplace demands a new level of innovation. In knowledge-based industries, innovation is deemed the norm, but companies in all industries and sectors are learning that adopting a strategy of innovation is the key to enabling future growth.

In the past, business owners may have been able to maintain the status quo for growth and profitability. This is quickly changing, though, and today’s competitive landscape demands a more nimble and creative approach to truly succeed. Companies now must look beyond their comfort zone and explore opportunities that can position them well into the future.

When positioning a business as an innovative organization, company owners and advisors should consider the following.

> Know your Customers
Today’s most innovative companies have shifted the focus of their business models from geographies, local markets and products to a dynamic focus on value generation and customer experiences. It’s essential that businesses listen to what their customers want as demands continue to change on a regular basis.

Regardless of the innovation strategies being pursued, all successful companies depend on the ability to gain insights into customer needs and to understand the potential value of a service or emerging technology. Companies that are able to engage actively with customers can validate concepts during product development, or gauge the demand for a particular service that will be well received in the marketplace.

> Innovate from Within
In order to drive innovative ideas forward in an organization, companies need to start by building a strong corporate culture. Employee engagement is critical to the success of any business. Gone are the days of a standard nine-to-five workday. Companies must be flexible in supporting the work-life balance of employees. Providing meaningful learning opportunities will also boost engagement and encourage innovative ideas to prosper.

Companies that are inclusive when it comes to team-building can often bring a wider, more layered solution to their clients. It’s essential that people learn from experience
that’s a business’s No. 1 asset. Encouraging a cross-functional approach to work and building teams that comprise people from all backgrounds enables collaboration and provides the right circulation of talent to keep ideas innovative.

Successful companies require strong leaders who support innovation
from the owner to the front-line staff. Having leadership with the right mindset leads to an organizational culture that nurtures, guides and supports innovative thinking and practices.

> Build a Strong Support Team
With innovation driving the 21st century, it’s now more important than ever for companies to build a team of external advisors who support their strategic goals. Owners rely on the insights of professional service providers to position their business well into the future. Lawyers and accountants who embrace innovation and stay up to date on trends and business strategies can provide organizations with a fresh perspective to drive their growth goals.

> Approach Change Positively
Companies must be adaptable in how they approach their business. The only constant in life is change, and those businesses that approach change in a positive way maintain higher levels of customer engagement. Being an agile organization means that bold leadership strategies are the new norm. Innovative business leaders are able to manage current business requirements while simultaneously preparing for changing conditions.

Staying competitive, then, means changing what you’re doing. But change shouldn’t be an abrupt switch from old to new. Businesses shouldn’t have to choose between exploiting current opportunities and exploring new ones; they have to do both. And the companies that last for decades are able to walk this fine line successfully, time and time again.

Innovation no longer means a brainstorming session once every quarter or overhauling an entire organization to meet market demands. Innovation is the new way of being that could mean small tweaks for some organizations and larger, cultural changes for others. It’s a way for companies to identify new ways to drive growth within the business, and adopt strategies that work in their industry and for their customers.

Innovation doesn’t have to be a costly venture, but it’s something that organizations can’t afford not to do.

Mario Piccinin provides audit and business advisory services to growth-oriented companies. Follow EY’s private mid-market practice on Twitter @EY_CAPrivateCo or go to ey.com/ca/pmm.