Monday, June 11, 2007

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.
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posted by Jeffrey Phillips at 8:29 AM

199 Comments:

Anonymous Corey - CE Studios said...

I agree. People are crucial when it comes to innovation! I think the reason that "innovation springs from the minds of creative individuals working in an environment that spawns and encourages innovation," is because those individuals are immersed in the environment. They see the day to day things and come up with creative solutions. Also, new people in an organization tend to question the way things are done. While those who have been there for a while resort to the "its always been done that way" excuse.

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Blogger Terrence Seamon said...

Great points, Jeffrey. It's refreshing to read a pro-HR piece (though you may stir up the anti-HR hornet nest over this one).

I think your argument could equally apply to an organization's managers.

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Anonymous chuck yorke said...

Well said. It's people that innovate. It's not systems, processes, plans, hardware - it's people! All managers (leaders) need to understand that it's people, people, people.....

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Blogger Karl said...

Yes but...

You need to have a HR department that understands this. From what I have seen a lot of organizations wind up implementing work-arounds to HR because they are focused elsewhere. It is a natural place for the competencies needed but often they aren't developed.

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Anonymous Anonymous said...

I absolutely agree with you. But how do you integrate HR into the whole innovation process?

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Blogger Robin said...

I agree with the overall premise that HR can be instrumental in building and fostering an innovation culture within an organization. Some of the ways that HR professionals can, and must, lead the way include aligning compensation and benefits to reward those who are identified as "innovators;" train hiring managers to interview and select candidates based on their ability to be an innovator; provide training and development that focuses on innovation. What companies do you know of where innovation is fostered through HR processes, systems and strategies?

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Blogger Victor said...

Great point and as a graduate student studying organizational psychology I can tell you that there is a clear lack of research in this area.

As you and other readers mentioned there are many ways HR can help to foster innovation behaviors in the workplace (selection, training, succession planning, etc). To me the biggest one is Performance Appraisal. How do you incorporate being innovative in a performance review without punishing for trying ideas that fail? I think Social Network Analysis can help with this. A good measure of innovation behavior can be found by looking at how well people are connected to other individuals inside and outside the organization such other business units, customers, suppliers, etc. That's just one way and I don't think it is sufficient. just an idea...

Victor

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Blogger Ganesh said...

Well it is quite important for organisations to have a culture of innovation and it is very rightly said the resposibility of the HR department. However it is quite imperative to understand the current innovation culture of the company. Can anyone of you suggest as to how to measure the culture of innovation, is the organisation promoting a culture of innovation.

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Wel pls i wil like to what are the recent innovation on human resource and explain? Pls send it to josyleed@gmail.com

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