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Want To Innovate? Invest In Values

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A country’s ability to innovate is traditionally measured by things like R&D spending levels, the quality of its universities and the availability of venture capital. These are important factors, but we are not measuring something equally if not more important: the values on which our businesses are built.

The United States is no longer the world’s leading innovator. The Global Innovation Index ranks us fifth this year – behind Switzerland, Sweden, the United Kingdom and the Netherlands. Last year, the U.S. was ranked 10th. We were ranked 7th in 2011 and 11th in 2010.

If we want to reclaim our innovation capacity, spending money on research and infrastructure is not enough. We must also invest in a culture change and in authentic leaders who facilitate that change. We must create dynamic, highly productive, impactful organizations that embrace what I call GRIP values:

  • Growth
  • Respect
  • Individual Responsibility
  • Passion

Only if we are committed to creating company cultures that embrace these values, can we get a GRIP on America’s ability to innovate.

One company I admire for having implemented such a culture is Thogus, a national provider of engineering, 3D printing and plastic injection molding solutions based in Avon Lake, Ohio. The company was founded in 1950 but operates much like an innovative startup. It has grown 400 percent and added 120 employees since 2009.

“We empower our employees, nurture them and trust their decisions,” Thogus President Matt Hlavin says. “In order to build an innovative business, we embrace change and allow our team to fail. The key is to share that failure and learn from it. That’s how you grow.”

Thogus is just one example of how our innovation capacity is a major driver of our global economic competitiveness; and how it will play an increasingly important role as we continue to lose our competitive edge in traditional driver industries like manufacturing.

This is particularly true in industrial parts of our country; those regions that have seen their competitive advantages fade under the pressures of global competition. The Detroit metropolitan area is a perfect example of what can happen to a region when you rely too heavily on one industry.

In this context, enhancing our innovation capacity – our ability to turn new ideas and technologies into assets that will transform our economy – must be an important part of our economic strategy.

We must give our companies the tools and resources to do things differently; do things that have never been done before; and understand, capture and take advantage of national and international trends.

Part of that toolbox has to be a set of values that empowers individuals to be innovative. Organizations must create environments in which individuals collaborate and exchange ideas under a set of common goals.

Such people-centric cultures improve our productivity, enhance our ability to respond to challenges, and enable regional innovation, which allows our nation to stay globally competitive.

One of Hlavin’s methods to create such a culture at Thogus is holding regular, 15-minute “Matt’s Chats” with his employees, for which they sign up to discuss or ask anything that’s on their minds.

"It’s about transparency and about listening to each other’s ideas,” he says. “It keeps us connected and relevant.”

The company also gives its employees full access to its intellectual property and cutting-edge technologies, including its 3D printing capabilities, in order to test and advance their ideas. Should these ideas translate into patents, team members will hold a share of that patent.

Hlavin takes this approach because he realizes innovation ultimately is a very personal, human exercise. Organizations do not innovate, the people within and across organizations do. They need environments that allow them to do so. The question is how we create such environments within our companies. The answer lies in the GRIP values.

During my professional journey from Wall Street to state government to my current role at NorTech, I have come to know different types of leaders, from venture capitalists, to fortune 500 CEOs, to aspiring entrepreneurs trying to commercialize their cutting-edge technologies.

I have seen the differences between leaders that focus on their people and those that do not. It is evident to me that strong, healthy and innovative organizations are led by CEOs who give their employees opportunities to grow; make them feel valued and respected; give them clarity about their roles and responsibilities; and hire people who are passionate about their work.

Growth

Growth is the result of initiating a meaningful, lasting, transformational change. The key to sustaining a healthy life, business or economy is to initiate such transformational change when our resources, energy and confidence are high. It is much more difficult in a state of decline when resources are depleted.

But initiating that transformational change at the right time is easier said than done. How do we know when is the right time to initiate transformational change?

The answer is we can’t know. That’s why we must be committed to grow constantly. For CEOs, this means implementing company cultures where employees are constantly challenged to become more.

Respect

It takes many different points of view to fully grasp the complexity of economic challenges a company, region or entire nation faces. Only through intense, respectful collaboration, are we able to move forward impactful, innovative projects.

Innovation never happens in a vacuum. We can only innovate if people come together, treat each other with dignity and respect, and are open-minded about each other’s viewpoints. Such collaboration must be inclusive of the disconnected and embrace different backgrounds.

When groups of people and organizations work closely together under a set of shared goals and values, they bring out each other’s strengths. As a result, they respond to a problem with determination and durability. Respect is the basis for such collaboration that enables innovation.

Individual Responsibility

Innovative organizations – those that encourage collaboration and the exchange of ideas in order to grow – can only thrive if every team member takes full responsibility of his or her work. Therefore, we need company cultures that stress each individual is responsible for creating his or her own future and bringing that to life within the business.

Innovative organizations are comprised of individuals who understand this, apply their skills, and make a commitment to deliver tasks on time, within budget and with quality. Recruiting and developing such talent contributes to an organization’s productivity, impact and ability to innovate.

It is critical that companies recruit leaders – and by leaders I mean employees at all levels taking ownership of their work – get them into the right seats, and give them opportunities to grow. In addition to the desired qualifications, such leaders must share an organization’s values and commit to its mission. 

Passion

Impactful work is grounded in passion. The most innovative organizations not only understand what they do and how they do it, but why. They are committed to their mission and attract team members who are passionate about their cause, whether that’s a social or business endeavor.

The right employees for your organization must be driven not by money but by your organization’s mission. Therefore, it is essential you have clearly defined your organization’s values and goals, communicate them to your team and are committed to hiring people who are passionate about them.

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Ideally, company cultures based on these values would grow organically from within organizations. The reality, however, is that, even if they do, too often leadership stifles such processes out of fear of losing control. Too many CEOs, presidents and supervisors can’t let go of the high-control, low-trust model of leadership. They believe they must exercise command and control from the top down.

We have to let go of that kind of thinking because the most innovative leaders lead by directing from the center of their organizations. Modern leaders empower employees to be creative and develop the skills they need to move to the next level in their careers. In the process, they will move their companies, our regions and our country forward, as well.