How to encourage innovation in the workplace in 4 easy steps

You could say that entrepreneurs are innovative by nature—they’re the ones launching businesses from scratch, finding underserved markets and launching new products and services. However, when it comes to innovation within their own operations, such as using new technologies to drive growth, many small and midsize businesses (SMBs) have great opportunities. 

A Capital One survey found that 39% of growing companies said that using digital tools or technologies has allowed them to make effective changes to their own companies. Yet, whether it’s artificial intelligence (AI), cloud computing, automation solutions or other digital processes, companies have more innovation-related tools at their disposal than ever before. If companies are going to fuel business growth, they need to reimagine how they think about and deploy innovation. 

• Why a culture of innovation is a key for successful growth

• 4 steps to create the right culture 

• How to stay on top of changing market conditions

• How to better understand client needs

Many business owners believe that innovation is simply about implementing new technology in the business. While you may need new tools to create processes or products, innovation isn’t about the tech itself—it’s about company culture. One survey found that roughly two-thirds (63%) of employees report that a company’s culture affects its ability to innovate. 

Broadly, a culture of innovation is one where employees are free to share ideas, try new things and fail without fear. Innovative cultures, though, don’t just form out of thin air—they need to be fostered and developed from the top. Here are four key ingredients companies need to create an innovative culture. 

Innovation can’t just be words on a website. It needs to show up in how a business invests in learning, encourages creativity and empowers employees to think entrepreneurially.

Leaders can’t just talk about innovation. They need to take steps to make it happen, too. That could mean removing outdated processes, reducing bureaucracy and supporting experimentation. Employees can do their part by listening to customers for insights, using resources creatively and adopting a growth mindset.

Change may be exciting at first, but old habits can return quickly. Designating “innovation champions” can help maintain momentum. These employees encourage new ideas, flag barriers, support pilot projects and help bring concepts to life.

As teams take risks and try new approaches, it’s important to track impact. Survey your customers, evaluate whether new products or processes are delivering financial results, and ask employees whether they feel empowered to innovate.

Another key to fostering innovation within your business is to always be open to new technologies, customer insights and market changes. With customer insights, consider creating a straightforward process for collecting feedback regularly, whether through short surveys, follow-up emails or quick check-ins at the point of sale. Common requests or complaints could lead to innovative ideas.

Next, ensure that you’re continually learning more about your market. Follow industry newsletters, attend local business events, talk to peers and pay attention to how your competitors are adapting. If you do spot a trend—and if you’ve developed that innovative culture—move quickly to run a small experiment. You could offer a new tool to a select group of staff or roll out a new service to your top customers and gather their feedback.

When it comes to new technologies themselves, it’s easy to get overwhelmed by all the options. Look for those that align with your overall business goals and start small. For example, try new AI automations with your innovation champions for a few weeks. If they work, deploy them to the rest of the company and monitor the results.

Building a culture of innovation takes a four-pronged approach—making innovation a core value, modeling behavior, appointing champions and tracking progress. By adopting these actions and priorities, you can inspire teams and clearly communicate the importance of fresh thinking and creativity to find new solutions and ideas. Understanding your market and embracing the right, new technologies can fuel innovation, as well. 

Ultimately, you don’t need massive budgets to be innovative. Rather, you need people who get excited about trying new things, are eager to push the company forward and know how to focus on customers. Innovation takes work, but once you’re in the habit, growth will come.

Looking for other ways to grow your business? Securing a business credit card could be a good next step. Compare business cards from Capital One and get pre-approved today—with no harm to your credit.