Building a Culture for Innovation

Changing the World – One Organisation at a Time™

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Download the Building a Culture for Innovation white paper – PDF 1.1 MB

Summary of the White Paper Below:

What is Culture?

“Culture eats strategy for breakfast!” – Peter Drucker

Organisational culture is defined as:

“The shared values, norms and expectations that govern the way people approach their work and interact with each other.”

Values dictate what is important in any group. Norms are the written and unwritten rules about behaviour. Expectations reflect the messages people get about how they should behave – shaped by observation of leaders, and by what gets rewarded or punished.

Culture determines how people solve problems, make decisions, achieve goals, share ideas, and work together. Regardless of your strategy, it will only succeed if your culture supports it.

Innovation and Organisational Culture

“If you do not manage culture, it manages you, and you may not even be aware of the extent to which this is happening.” – Edgar Schein

Innovation is not just an action – it’s an outcome. The right innovation culture enables ideas to become reality. Organisations don’t innovate – people do.

An innovation culture encourages idea-sharing, cross-functional collaboration, commitment to the organisation’s future, and a willingness to take ownership. Your culture either enables or limits innovation.

How Culture Limits Innovation

A centralised, procedure-heavy environment can stifle innovation. When jobs are narrowly defined and tightly controlled, employees focus on “doing their job” and “avoiding mistakes” rather than improving processes or generating ideas.

The result:

• Lack of accountability
• Low initiative
• Avoidance of responsibility

Management may want innovation, but without structural and cultural change, the reality doesn’t match the desire.

Organisational Requirements for Innovation to Happen

Research shows that the following 12 factors are required to build a true culture for innovation:

1. Organisational culture – a culture that makes innovation possible
2. Mission & vision – meaningful purpose
3. Organisational structure – involvement and influence
4. Human resources practices – flexibility and adaptability
5. Reinforcement systems – rewards for risk-taking
6. Job design – autonomy, variety, and identity
7. Communication – up, down, and across the organisation
8. Leadership – empowering people
9. Teamwork – collective effort
10. Cross-functional coordination – cooperation between units
11. Motivation – willingness to try
12. Satisfaction – emotional attachment to the organisation

Without these, organisations risk reinforcing the status quo rather than driving change.

What a Culture That Enables Innovation Looks Like

In an innovation culture, behavioural norms are Constructive:

• Achievement – Set challenging goals and solve problems effectively.
• Self-Actualising – Value creativity and continuous improvement.
• Humanistic-Encouraging – Support and develop others.
• Affiliative – Build trust and relationships.

Organisations with this culture outperform others in teamwork, motivation, and adaptability.

What a Culture That Inhibits Innovation Looks Like

Cultures that are Passive/Defensive or Aggressive/Defensive tend to inhibit innovation. Examples include:

• Approval – Seeking approval before acting
• Conventional – Following rules without question
• Dependent – Deferring to superiors for all decisions
• Avoidance – Dodging responsibility
• Oppositional – Criticising rather than creating
• Power – Controlling and political behaviour
• Competitive – Focusing on winning rather than collaborating
• Perfectionistic – Avoiding mistakes at all costs

A Framework for Understanding Culture and Innovation

Innovation is the effect, and culture is the cause. Using Dr Robert A. Cooke’s How Culture Works model, we can link organisational variables (mission, structure, systems, job design, communication, leadership) directly to cultural outcomes – and in turn, to innovation performance.

How to Build a Culture for Innovation

The white paper outlines seven essential levers for creating an innovation culture:

1. Build shared meaning – Mission & vision
2. Allow involvement – Organisational structure
3. Align HR practices – Make purpose real daily
4. Reward innovation behaviours – Reinforcement systems
5. Increase autonomy – Job design
6. Promote learning – Communication
7. Develop leaders at all levels – Leadership capability

Each factor is backed by Organisational Effectiveness Inventory (OEI) data showing direct links between Constructive culture and adaptability to change.

Outcomes Essential for Innovation

When these factors are in place, organisations see:

• Higher teamwork
• Stronger cross-functional coordination
• Greater motivation
• Increased job satisfaction
• More adaptability in changing markets

Tools to Help You Build an Innovation Culture

At Human Synergistics, we provide:

• Culture diagnostics – such as the Organisational Culture Inventory® (OCI®)
• Change frameworks – proven processes for transformation
• Consulting support – tailored programs to embed innovation culture
• Accreditation – for internal change agents (learn more)
• Case studies demonstrating real-world impact

Ready to build a stronger innovation culture?
Contact us today to learn how we can help your organisation innovate, adapt, and thrive.