The psychology of innovation

Why are so few companies truly innovative?

Innovation is key to business survival，and companies put substantial resources into inspiring employees to develop new ideas. There are, nevertheless, people working in luxurious, state-of-the-art centres designed to stimulate innovation who find that their environment doesn’t make them feel at all creative. And there are those who don’t have a budget, or much space, but who innovate successfully.

For Robert B. Cialdini, Professor of Psychology at Arizona State University, one reason that companies don’t succeed as often as they should is that innovation starts with recruitment. Research shows that the fit between an employee’s values and a company’s values makes a difference to what contribution they make and whether, two years after they join, they’re still at the company. Studies at Harvard Business School show that, although some individuals may be more creative than others, almost every individual can be creative in the right circumstances.

One of the most famous photographs in the story of rock’n’roll emphasises Ciaidini’s views. The 1956 picture of singers Elvis Presley, Carl Perkins, Johnny Cash and Jerry Lee Lewis jamming at a piano in Sun Studios in Memphis tells a hidden story. Sun’s ‘million-dollar quartet’ could have been a quintet. Missing from the picture is Roy Orbison’ a greater natural singer than Lewis, Perkins or Cash. Sam Phillips, who owned Sun, wanted to revolutionise popular music with songs that fused black and white music, and country and blues. Presley, Cash, Perkins and Lewis instinctively understood Phillips’s ambition and believed in it. Orbison wasn’t inspired by the goal, and only ever achieved one hit with the Sun label.

The value fit matters, says Cialdini, because innovation is, in part, a process of change, and under that pressure we, as a species, behave differently, ‘ When things change, we are hard-wired to play it safe .’ Managers should, therefore, adopt an approach that appears counterintuitive -they should explain what stands to be lost if the company fails to seize a particular opportunity. Studies show that we invariably take more gambles when threatened with a loss than when offered a reward.

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Authority doesn’t have to inhibit innovation but it often does. The wrong kind of leadership will lead to what Cialdini calls ”captainitis, the regrettable tendency of team members to opt out of team responsibilities that are properly their ’. He calls it captainitis because, he says, ”crew members of multipilot aircraft exhibit a sometimes deadly passivity when the flight captain makes a clearly wrong-headed decision”. This behaviour is not, he says, unique to air travel, but can happen in any workplace where the leader is overbearing.

At the other end of the scale is the 1980s Memphis design collective, a group of young designers for whom ”the only rule was that there were no rule”. This environment encouraged a free interchange of ideas, which led to more creativity with form, function, colour and materials that revolutionised attitudes to furniture design.

Questions 31-35

Complete each sentence with the correct ending, A-G, below.

Write the correct letter, A-G, in boxes 31-35 on your answer sheet

31. Employees whose values match those of their employers are more likely to

32. At times of change, people tend to

33. If people are aware of what they might lose, they will often

34. People working under a dominant boss are liable to

35. Employees working in organisations with few rules are more likely to

A. take chances.

B. share their ideas.

C. become competitive.

D. get promotion.

E. avoid risk.

F. ignore their duties.

G. remain in their jobs.