Creating an Innovative Culture Will Help Your Company Succeed

Cathie Leimbach • November 30, 2021

When thinking about innovation, people often assume it is limited to brilliant people coming up with new products or disruptive ideas. While that is sometimes the case, creating a culture of innovation more frequently helps your organization adapt quickly to new challenges, thrive in unforeseen scenarios, and execute strategic objectives more effectively and efficiently.

 

Gallup reports that only 1 in 3 employees believe they are encouraged to bring forward ideas to improve their company’s products or services. Think about what that might mean for your company. Your employees who are doing the work aren’t encouraged to share how it can be done better. Not only does that lead to a loss of potential profit, but it also frustrates and disengages your most talented team members.

 

Creating an innovative culture requires a shift in thinking. Rather than creating a top-down approach, collaboration is encouraged and nurtured. Risk and failure are embraced as a part of the process. Your employees are provided opportunities to learn, contribute, and grow beyond their job description.  Everyone, from the CEO to the most junior staff person, is encouraged to contribute to your company’s success.  Even the most innovative employee is unlikely to contribute unless the culture supports innovation at every level.  This results in few robust solutions and approaches and diminishes engagement by your top talent.

 

Several years ago, the incoming CEO of Frito-Lay asked ALL the employees to think like a CEO. This motivated one of the janitors to learn more about the company and to develop a spicy snack food that his Hispanic friends would love. His home kitchen became a product innovation space as he and his wife developed and taste-tested spicy Cheetos.  The janitor shared his idea with the CEO. Flamin’ Hot Cheetos have generated 2 billion dollars of revenue for Frito-Lay and eventually Richard Montanez became the company’s product innovation leader.   

 

What would it mean if everyone on your team was clear about the long-term strategic objectives of your company? If they fully understood the goals of differentiating in the marketplace, providing the best product or service possible, and were infused with a sense of purpose? It would be a gamechanger in terms of productivity, profitability, and employee engagement.

 

Sounds good, but you are unsure how to start? Here are some beginning concepts:

 

  • Provide and reward collaboration.  Innovation occurs when every member of your company is involved in solving problems, overcoming challenges, and creating results. Great ideas come from anywhere. Reinforce the importance of collaboration and new ideas. Reward them. The more pronounced the support for collaboration and innovation from recognition to performance reviews, the more you will get.
  • Focus and communicate the big picture. President Kennedy’s space initiative was successful in part because of an inspirational goal. Apple has been successful because of its laser focus on customer experience.  Google’s approach to staff-driven innovation keeps its people engaged, happy, and motivated while helping the company achieve tremendous accomplishments. Zappos has grown, in part, because of its emphasis on every employee using innovative solutions to keep customers happy. Your employees will do more, and your company will be more profitable and productive if they have a sense of shared purpose.
  • Embrace risk and failure. An innovative culture encourages people to try new ideas, solutions, and approaches. Some will work. Some won’t.  And those “missteps” will show a better way to proceed. Let your employees know it is okay to fail. 

 

Consult your employees regularly and get their input in critical decisions geared towards your company’s success that directly impact their work. If their input isn’t accepted as the best path, let them know why in detail.

 

Remember that you win three ways when you foster innovation. 

  1. You get ideas, many of which are good. 
  2. Your employees are committed to executing ideas they have been involved in creating.
  3. You improve both engagement and feelings of inclusion.

 

 

 

By Cathie Leimbach June 9, 2026
Most leaders want better performance. They want employees who take ownership, solve problems, adapt to change, and consistently deliver results. Yet Gallup reports that only 31% of employees are engaged at work. That means nearly 7 out of 10 employees are not fully applying their talents, effort, and initiative to their roles. The question leaders should be asking isn't simply: "Why aren't employees performing?" It's: "Are we developing people to perform at their best?" Gallup's latest research suggests many organizations may be falling behind. Nearly 6 in 10 CHROs say employee development is one of the areas where their organization struggles most. At the same time, fewer than half of U.S. employees have participated in training or education to build new skills for their current job. That gap creates risk. As AI, technology, customer expectations, and job responsibilities continue to evolve, employees cannot meet changing expectations with outdated skills. The impact is especially significant among high performers. Gallup found that organizations providing fewer development opportunities are more likely to lose their best people. The good news is that development doesn't require expensive programs or lengthy workshops. It starts with leaders who consistently: • Connect strengths to daily work • Clarify expectations • Provide meaningful feedback • Coach performance • Hold growth-focused conversations  One of the most effective ways leaders can support employee development is through regular 1-on-1 meetings with each direct report. These conversations create opportunities to coach, remove obstacles, align priorities, and discuss growth before problems become bigger issues. For practical ideas, read our resource: 5 Factors in Successful 1-on-1s . Organizations that thrive won't simply expect more from employees. They'll develop people so they can contribute more. Because when employees grow, performance grows with them.
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