The Corporate New Ventures at Procter & Gamble case written by Teresa M. Amabile and Dean Whitney and published in the prestigious Harvard Business Review is a great example of how innovation is closely linked to organizational design. In summary, the case demonstrates that it is almost impossible to innovate if a firm does not have the right organizational design.

The Boston Consulting Group recently released a list of the most innovative companies in 2013. As expected corporations such as Samsung, Apple, Google or Amazon dominate the list. What factors allow these companies to excel in innovation? What are the distinguished characteristics and capabilities of a successful innovative company?

Leadership: The company must have the right leaders to drive innovative initiatives, and inspire and motivate people to come-up with creative ideas.
Culture: The company should adopt a forward-looking and entrepreneurial culture that enables collaboration and encourages knowledge sharing. The company should also make it very clear that everyone has a part to play in moving the culture and transforming the way it does business.
People: The company must hire talented people who are creative thinkers, embrace changes and can work in fast-paced environments. Furthermore, the company should have a strong training and professional program to attract and retain skilled staff.
Operations and Procedures: The company should promote information sharing and encourage cross-functional projects. Furthermore, the firm should also invite customers to the table and make sure that they are involved regularly and as early as possible.
Capabilities: The company must have the right technology in place to allow employees to innovate.
Metrics and Incentives: The company must implement appropriate performance measurement metrics and reward employees that contribute to innovative-related projects.

“Creativity dies in an undisciplined environment.” Jim Collins, American Author.

By Armel Bokam