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3 November, 2011 / Karl Maier

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)

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