These days, business talk is all about innovation and design. This is thanks in part to the role technology companies have been playing in driving the economy of the U.S., in particular. But it can also be attributable to an acknowledgement that - in a digital world where established organizations are under threat from all sides - just being more efficient is not going to be enough to ensure survival, let alone a thriving future.
It was not always that way, of course. Back in the late 1970s, when the design and innovation firm IDEO was starting, its stock in trade was something of a specialist activity. Even early on, the firm made waves. Initially based in Palo Alto, it designed the first laptop and the computer mouse and gained a reputation for a thorough process that went to the heart of the organization rather than simply applying design almost as an afterthought. In 1999, it famously hit the headlines when a mainstream news program aired a film about the firm designing a better shopping cart as an illustration of its "deep dive" design technique.
Since then, its belief in what is now termed "design thinking" has been vindicated, with more and more organizations seeing the benefits of applying the principles of design to how they run themselves. But for this approach to work most effectively the bodies in question need to stand for something. In a recent interview, Sue Siddall, executive managing director of IDEO Europe, pointed to research indicating that companies with a clear and powerful sense of purpose greatly outperform the S&P index of 500 leading companies. Moreover, the firm's own studies, reported here, have found that new products and services are more likely to succeed when the companies that launch them have a clear mission.
Emboldened by these results and increasing demand for its services from organizations beyond businesses looking for design know-how - it has, for example, done work on such issues as food waste and urban farming, mobility and boosting the development of a middle-class in Peru - it has for some time offered insights into how organizations of all sorts can become more innovative. Forty years after its founding, the firm has distilled its experiences into what it calls the "secrets of creative leadership". As Siddall explained: "The human factor and creative leadership and creative cultures are becoming much more important than design." The secrets are:
- Leading with purpose: A creative leader understands that authority figures can demand compliance, but can’t dictate optimism, trust, conviction or creativity. These are the fruits of a clear purpose beyond profit. A creative leader will take the time to define, communicate and use this to inspire people within the organization.
- Leading flexibly: A creative leader knows when to lead from the front, when to work shoulder to shoulder with the team and when to act as a supportive coach. Each style of leadership has its place in the creative process.
- Learning from failure: A creative leader helps the team to learn from every experience and use it to fuel further innovation. Experiments inevitably test the boundaries of our knowledge and experience, but, often, teams limit themselves through the fear of failing and hold themselves back from bolder projects.
- Asking the right questions: Creative leaders know that, instead of having all the answers, they simply need to ask good questions.
- Creating a safe haven: Creative leaders celebrate small wins and use supportive language to incite action and spark positive momentum. They are sensitive to how they make members of a team feel because when they are valued, inspired and cared for they are more likely to do their best creative work.
As part of building a better idea of what is entailed in becoming a creative leader, IDEO people talk about "modes of leadership." The first is the explorer, who typically will guide the direction in which the organization is going. Importantly, however, he or she will ask the right questions rather than claim to have all the answers. Next, and crucial, is the gardener, who "creates the right conditions", brings teams together and ensures they have what they need to succeed. The third leadership style is the player-coach. This is the person who is able to help teams based on their own experience. They can empathise. At IDEO, senior people, such as Siddall - who led the London studio through the post-2008 recession - often take on this role, advising teams on whether they are asking the right questions, checking that they have the resources they need and offering feedback on where they have got to and where they might go next. These are the main ones, but Siddall also talks of the bodyguard. This role comes into play when a team comes up with a new idea that might be subject to challenge and needs protecting.
Although IDEO obviously has a clear view of what works for in ovation and creativity, it appears that the important thing that leaders of other organizations should take away is that they need to themselves challenge the ways in which things are done and encourage others to do the same. Above all, at a time of rapid change, leaders should be prepared to be flexible and ready to adopt different styles of leadership according to the circumstances.
