Culture supports Innovation
The more trust and self-motivation occur in an organization, the more innovative is likely to occur. This statement has an element of common sense to it. It is also supported by a recent study on culture and leadership*.
In the study, the firms studied were divided into three major groups based on governance and cultural factors. The three leadership styles are called self-governing, informed-acquiescence and blind-obedience firms based. There is a strong correlation between each style and the level of trust in the firm with self-governing organizations having the higher level of trust.
Lack of trust may inhibit innovation, too. More than 90% of employees in self-governing firms, and 66% in the informed-acquiescence category, agreed that “good ideas are readily adopted by my company”. At blind-obedience firms, fewer 20% did.
Building trust into a culture does pay off in innovation.
* Study by Boston Research Group, the “National Governance, Culture and Leadership Assessment” is based on a survey of American employees. http://www.economist.com/node/21530171 (subscription)