The importance of innovation in business is, of course, undisputable. However, where it is widely recognised that those who design product and service offerings, or manage communications with stakeholders, should be powerhouses of creative talent, we are only just beginning to really value the importance of innovation in HR.
In its paper, HR as a driver for organisational innovation, KMPG reports that business leaders cited innovation as one of the top three global challenges they face. Arguably then, managers must determine ways to foster an innovative culture within their organisations from the inside out. If we are to work with this theory, then HR – whose influence impacts every single member of staff – must hold the key to unlocking creativity across a business. But as a traditionally process led function, where tried and tested systems often remain unchanged for long periods of time, how can HR harness its authority to build a more creative culture?
By employing an open innovation strategy within their business, decision makers can empower HR teams to make a notable difference to the way that organisations operate. HR teams must lead by example. In today’s VUCA (volatile, uncertain, complex and ambiguous) environment, standing still is not an option, and HR professionals must create new ways of working in order to best meet the needs of their organisation.
According to research by the Work and Employment Research Centre (WERC) at the University Of Bath School Of Management, commissioned by the CIPD, innovation is a critical strategic issue for HR. The paper highlights the fact that our ability to work with others across and outside the organisation will be a benchmark of our effectiveness. We need to collaborate in order to drive growth through open innovation with suppliers. In the words of American industrialist Henry Ford, “If you always do what you’ve always done, you’ll always get what you’ve always got”. It is only through cooperating with others that we can build strong relationships and learn new and better ways to work.
There is no doubt that transforming our own practices, through sharing knowledge with external stakeholders, can have a significant impact on organisational outcomes. However, this barely scratches the surface of HRs potential to drive innovation, productivity and profitability. Internal HR functions are uniquely positioned to facilitate the support of innovative behaviours across the entire workforce – we just need to think outside the box.
For example, the 20% Project introduced by Google, which allowed their engineers to work on pet projects 20 per cent of their paid working time, was a radical innovation in Google’s work design. The 20% Project was an innovation that added value by improving motivation and performance, the retention of star employees and the attraction of bright new talent.
Recognising how innovation can be positioned and aligned within a business allows HR teams to help organisations to derive the best value from it. Whether innovation is about changing products, systems or processes, or implementing radical new staff initiatives – HR can play a significant role in sowing the seeds of innovation across an entire business.
What could you do to boost innovation within your organisation?
