Many businesses today are looking for an edge. That edge is becoming increasingly more difficult to create, as many businesses have already implemented best practices in their key functional areas and lean methodologies in their operations.
So, given this, why are some organizations thriving while others flounder? What drives more innovative thinking in some and not in others?
There was a recent article in the Harvard Business Review titled, “Good Companies Launch More New Products.” The premise is this: “Corporate social responsibility (CSR) programs can make a company more innovative.” In fact, the study of 128 companies revealed that “companies in the top third in terms of CSR activities…” launched an average of four times more products as companies in the bottom third.
The article talks about external factors that are drivers, such as access to outside knowledge, investment in R&D and operating in a highly competitive environment. Not that these factors aren’t important, but I believe they miss the real point. I believe there are three internal drives that seem to be true of the more innovative organizations.
1. Improve society. Many organizations view CSR activities as a necessary evil. They do the bare minimum so they can market themselves as good corporate citizens. On the other hand, there are organizations that take this seriously. They are genuinely concerned about people and engage with stakeholders to address societal issues in meaningful ways. They see their values and purposes as more powerful motivators than profit.
2. Integrate with strategy. Many CSR initiatives are side projects of an organization. Those organizations that are most successful are purpose-driven and integrate their efforts into their overall strategies. In this way, they make strategic trade-offs based on investments they plan to make in R&D and operations. Here’s an example about Merck cited in a Harvard Business Review Blog Post.
“Instead of structuring a partnership of Merck, the Gates Foundation, and the government of Botswana to expand access to HIV/AIDS drugs as a CSR initiative, we integrated it into our business and made it the responsibility of Merck’s head of Europe, the Middle East and Africa. If we had structured it as a CSR initiative, I don’t think it would have been as successful as it was because the business would not have been as fully engaged. And it was beneficial to the business because it helped our managers learn how to bring drugs to developing countries at a lower cost.”
Merck’s CSR initiative was fully implemented and put into action because it was part of the fabric of the company’s strategy.
3. Engage employees. It’s true that people work to make money and provide a living for themselves and their families. But more than that, people are intrinsically motivated by working for a purpose bigger than themselves. They see purpose, meaning and recognition as more powerful motivators than economic self-interest.
So, how are you dreaming of innovation within your organization? Let these three principles be your guide.
Share Your Thoughts: So what do you do to create more innovation in your organization?