The role of HR in innovation

I am a late convert but I am becoming ever more convinced that the most important person in your company where innovation is concerned is your VP of Human Resources. Right about now, about 20% of you reading this are nodding "yes" vigorously, while the rest are reading in stunned disbelief.

Let me explain why HR is so important to corporate, especially sustainable innovation. First, innovation is foremost a commitment of resources to an uncertain future. People dislike uncertainty and are somewhat unwilling to risk their jobs or futures working on items that are new or risky, without the appropriate assurances that the firm needs and requires people to try new things and make mistakes. So, the ability to communicate that failure is expected and people need to "think outside the box" and will be rewarded for doing those things is important.

Second, you need to identify people who can "think outside the box". Let's not assume that everyone is equally innovative, but instead let's recruit people for their innovation capabilities. Are they inquisitive? Are they locked into one viewpoint or willing to consider others? Are they open to new ideas, new concepts? These questions have a lot to do with how people are recruited and how their skills are improved to welcome innovation.

Finally, the most powerful force in business is culture. While corporate culture is not necessarily the responsibility of HR, the people who are hired and the training and cultural imperatives placed on the business are done so through HR, so HR can have a big impact on whether or not the firm is culturally attuned to innovation.

So, we've identified the roles people play and the risk or encouragement of innovation, the ability of the people to think about innovation and to be creative, and the ability to impact or influence the culture. All of these are features of the business that HR can impact.

Over time, one can argue that innovation is a sustainable competitive advantage, and that businesses can can attract and retain creative, innovative people and implement a culture that sustains innovation will create strong competitive advantage. If so, HR will have a huge impact on that company and its culture.

Too often we think of innovation as the responsibility of a product team or a business unit. Innovation springs from the minds of creative individuals working in an environment that spawns and encourages innovation. Attracting and keeping the most innovative people, and constantly improving their skills, and creating a culture that supports innovation will enable the firm in the long run to differentiate itself. These are all roles for HR.