Whenever a company comes out with a new product/service or improvements to an existing one, invariably someone internally will ask for a “checklist” to tell them exactly what they are supposed to do relative to their job function. It is times like these that one may feel like saying “figure it out yourself”. Intuitive thinking is the preferred trait in these situations.



Similarly, based on experience, managers who routinely use the phrase “think outside the box”, are the least likely to actually exhibit innovative thinking. They use the phrase to convince others, and perhaps themselves, that they are capable of coming up with creative ideas to solve problems or take advantage of opportunities. It's like encouraging employees to come up with entrepreneurial and innovative ideas, and then giving them a flowchart or checklist on how to proceed once they have an innovative idea.

Technology, skilled labor and capital are very mobile today. Increasingly, a company's sustainable competitive advantage will be in the area of continual innovation and being quicker to market than their competitors with implemented ideas that create more value for their clients. Innovation can take the form of ideas that lower costs, as well as ideas that enhance the client benefits of the products and services you sell.

For example, a company's alternative fuel vehicle program is one indication of the degree of organizational innovation. If a vehicle program resembles the infamous quote of the late Henry Ford, then you might have a problem with innovation. Mr. Ford, when asked if he was going to offer choices in vehicle colors (in contrast to the then up and coming GM) was quoted: “People can have the Model T in any color, so long as it is black”. In fairness to Mr. Ford, he was a pioneer in a lot of areas. Ford Motor Company's problems came after they had established a dominant market position. The more successful a company becomes, the larger it gets, and the older it gets, and the more complacent and lethargic it can become.

Everyone wants to control costs. However, if you are serious about having an organizational culture that values innovation, then let your employees have a little fun and individual expression in the company vehicles and options they are allowed to drive. Plus, given the competition for top-flight younger professional talent, a company vehicle program that allows for individual expression just might make the difference in your recruitment efforts.

Being aware of these aspects of company growth will help foster a culture of innovation. And following through on an ability to exhibit innovative thinking and cultivate mutually flexible standards in others will allow for a competitive advantage against internal and external market forces.

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