In summary
- Innovation thrives in a culture that values creativity, collaboration, and adaptability.
- Encouraging experimentation, learning from failure, and breaking silos drive innovation.
- Continuous learning, professional development, and feedback foster long-term success.
- Strong leadership and structured approaches help embed innovation into organisational culture.
In our six-part series on Open Innovation, we look at each of the elements required to deliver systemic innovation. We draw on insights from ISO56000-series, and our work from across Europe. We provide actionable strategies for driving innovation across the organisation. In this third post, we look at the importance of Culture.
Innovation isn’t merely a product or a groundbreaking technology; it’s a combination of mindset and culture. And a true culture of innovation thrives on creativity, collaboration, and a willingness to challenge the status quo. By fostering an environment that encourages experimentation, embraces diversity, and values continuous learning, organisations can unlock their potential for sustainable growth and long-term success.
This blog explores how businesses can cultivate a culture of creativity and collaboration, sharing actionable strategies to foster and embed innovation.
What's the role of organisational culture in driving innovation?
The biggest showstopper for innovation is often not legacy systems, but legacy mindsets. Let’s face it; in the DNA of human beings, we’re programmed to search for stability and control. This was simply the best way to survive. Organisational culture is the foundation that innovation stands on. Culture shapes the behaviours, attitudes, and values of employees, influencing how they approach challenges and opportunities. A strong innovation culture empowers teams to think beyond their day-to-day tasks and imagine new possibilities including seen and unseen opportunities.
Without a culture of innovation, organisations get stuck – relying on old methods, resisting change, and missing opportunities. Fear of the unknown holds many back, but let’s be real; if nothing changes and no value is created, can we call it innovation?
Building an innovation-driven culture takes time, but it’s possible. When creativity and collaboration are prioritised, teams feel empowered to experiment, knowing that failure is just a step in the process. In these environments, innovation isn’t an occasional effort – it becomes a part of the DNA.
When innovation becomes a shared mindset, businesses become more agile, engaged, and competitive, and a structured approach removes uncertainty, giving employees clarity on their role in driving change. We find that when uncertainty fades, action follows – fuelling a culture where innovation thrives.
What are the key culture strategies in Innovation Management?
1. Encourage a fail-fast, learn-faster mindset
In 1970, Alvin Toffler wrote "The illiterate of the twenty-first century will not be those who cannot read and write, but those who cannot learn, unlearn, and relearn."
The fear of failure is one of the most significant barriers to innovation. To overcome this, leaders must create a culture where failure is normalised as part of the innovation process. Adopting a fail-fast, learn-faster mindset means encouraging quick experimentation, identifying what works and what doesn’t, and rapidly iterating to improve outcomes.
Leaders can set the tone by sharing their own experiences with failure and demonstrating how lessons learned have led to growth and success.
2. Celebrate experimentation and reward creativity
Recognising and rewarding innovative efforts reinforces the behaviours that drive a culture of experimentation. Organisations can implement systems to acknowledge creativity, such as innovation awards, incentives for teams who pilot successful projects, or platforms to showcase new ideas.
When employees feel their creative efforts are valued, they are more likely to invest energy into generating solutions and challenging conventional approaches.
3. Encourage cross-functional collaboration
Silos can stifle creativity and limit innovation. Cross-functional collaboration, where teams from different departments work together, encourages the sharing of ideas and expertise. By combining diverse knowledge and skills, organisations can develop holistic solutions that address complex challenges.
For example, a product development team collaborating with marketing, sales, and customer service teams can gain deeper insights into customer needs and expectations, leading to better-designed and market-ready solutions.
4. Invest in professional development
Fear (of change) can be addressed through education. Organisations must prioritise upskilling and reskilling employees to ensure they have the tools and knowledge to innovate.
Offering training programs, workshops, and access to learning resources keeps employees engaged and prepared for emerging challenges and trends. Encourage employees to explore new skills, attend industry conferences, and pursue certifications. This investment not only benefits individual growth but also enhances the organisation’s collective capabilities.
5. Develop a feedback-driven culture
Continuous improvement relies on feedback – from employees, customers, and stakeholders. Organisations should create mechanisms to collect and act on feedback, such as regular performance reviews, innovation retrospectives, and customer satisfaction surveys.
A feedback-driven culture fosters transparency and demonstrates a commitment to growth and excellence. Employees feel empowered to share their observations and ideas, knowing they contribute to the organisation’s success.
Embedding innovation into the organisational DNA
Innovation is not an option and the culture should support actions that support the overall strategy focusing on tomorrow. Innovation culture is about infusing courage in the organisation to take action to remove uncertainty. Culture is habit, and habits need to be trained and continuously nurtured. Cultivating a culture of creativity and collaboration requires intentional effort, strong leadership, and a commitment to change. By encouraging experimentation, embracing diversity, and fostering continuous learning, organisations can create an environment where innovation thrives.
At the Home office, they're currently focused on embedding innovation through upskilling as part of the One Big Thing initiative.
“At the Home Office we embraced the cross-Civil Service initiative – One Big Thing which, in 2024, focussed on innovation through upskilling people on the innovation process and encouraging discussions on small changes to improve the way we do things. We are now using that as a platform to embed innovative behaviours across the organisation and we are working with the Accelerated Capability Environment on tools to assess innovation maturity in our teams and help people navigate our structures that support innovation.” Mick Kelly, Head of Science and Evidence Ecosystem Development, Home Office
The journey toward becoming an innovation-driven organisation is not linear. It requires ongoing reflection, adaptation, and alignment of cultural values with strategic goals. When leaders prioritise innovation as a core element of their organisational culture, they pave the way for sustainable growth, competitive advantage, and long-term success.
In an era defined by constant disruption, businesses that embrace creativity, collaboration, and a spirit of innovation will not only survive but thrive. It’s time to nurture a culture that empowers employees, values fresh ideas, and inspires the next generation of breakthroughs.
Interested in joining a conversation about innovation?
Our exclusive breakfast roundtable in London on 2nd April will bring together senior business leaders to explore the latest insights on Open Innovation and its impact on the future of business.
If you'd like to register your interest in attending this invitation-only event please get in touch with Tom Staley. Spaces are limited, so don't miss this opportunity to connect with industry leaders and gain exclusive access to our 2025 Open Innovation Report.
Read the first in the series about leading the way to empowering leadership in Innovation Management.
Explore our second piece on understanding the context of Innovation Management.