Empower, engage, evolve: Building a culture of innovation across your organization

Today’s organizations face a pressing challenge: how to adapt and innovate continuously to remain relevant. The reality is that many businesses are leaving significant innovation opportunities untapped because they centralize and “wall off” their innovation efforts, often isolating front line employee experiences that matter most. By decentralizing innovation and engaging every employee in the process, companies can unlock their full potential and build a culture of innovation that drives sustainable success.

The innovation opportunity

When innovation is confined to a small group or a designated department, organizations risk overlooking valuable insights from employees who often have unique perspectives on how to enhance products and services. By inviting everyone into the innovation process, companies can harness a wealth of ideas and foster a sense of ownership among their staff.

The pace of change in the digital age is unprecedented, requiring organizations to be agile and continuously evolve. Businesses that fail to adapt quickly risk obsolescence.

Engaging all employees in innovation ensures that the organization can pivot in response to market shifts, customer demands and emerging technologies. This collective adaptability is vital for long-term survival.

Centralized vs. decentralized innovation

The traditional approach to innovation often involves centralization—creating dedicated innovation hubs or appointing chief innovation officers to oversee initiatives. While this structure can help maintain focus, it also distances innovation from the realities of everyday operations. Centralized innovation may lack the necessary proximity to customer experiences and employee insights, diminishing its effectiveness.

A decentralized approach empowers every employee to contribute to innovation, integrating it into the organizational DNA. This method encourages small, incremental changes that can lead to significant improvements over time. By fostering a culture where innovation is everyone’s responsibility, organizations can create durable solutions that are more in tune with customer needs.

Where to start? Building digital DNA

To truly embed innovation in the fabric of an organization, companies must cultivate what can be described as “digital DNA.” This involves empowering employees with a digital first mindset to identify opportunities for improvement, regardless of their role. Training everyone to think critically about innovation not only enhances engagement, but also surfaces ideas that are relevant and valuable.

Steps to cultivate innovation

1. Set the tone from the top: Leadership must establish an "invitation to innovate," signaling that innovation is a shared responsibility. This approach ensures that all employees feel included in the innovation process, rather than seeing it as a task for a select few.
2. Create an idea capture platform: Implement a simple, accessible system for idea submission and prioritization. This platform should encourage participation without imposing heavy requirements, making it easy for employees to share their insights.
3. Foster a culture of experimentation: Encourage teams to experiment with new ideas while managing risk. Establish processes to assess the desirability, feasibility and viability of proposed innovations. Continuous learning and adaptation should be at the heart of this process.
4. Celebrate and reward innovation: Recognize and celebrate not just successful outcomes, but also, the ideation and experimentation stages. Creating a culture that values the innovation process itself will encourage ongoing participation and normalize innovation as part of the organizational culture.

Developing a culture of innovation

Decentralizing innovation is not just a strategy; it is a necessity for organizations seeking to thrive in an increasingly competitive landscape. By engaging every employee in the innovation process, companies can unlock significant value and foster a resilient, adaptive culture. The greatest opportunities for innovation often lie within the intersection of the employee and customer experience—by empowering all employees to contribute, businesses can not only keep pace with change but also pioneer new paths out in front of the competition.

In this era of rapid transformation, inviting everyone to the “innovation party” may be the key to ensuring a company’s relevance and success in the future.

How we can help

Learn more about how Baker Tilly’s digital team can help your organization put innovative structures in place to avoid falling behind.