Establishing a Culture of Innovation and Risk-Taking

Abstract

This chapter highlights the importance of creating just and inclusive dynamics within organisations.

Imagine if we could start preparing ourselves from a young age

to cultivate a culture of preparedness and anticipation.

This chapter highlights the importance of creating just and inclusive dynamics within organisations. Entities of different kind can tap into a broader range of perspectives, experiences and talents, by promoting diversity and inclusivity, leading to more innovative solutions. It explores how organisations can promote a culture that values and respects all individuals, ensuring that every voice is heard and valued in the pursuit of transformative goals towards the common good.

The chapter aims to explore the multifaceted dimensions of entrepreneurship and how they contribute to promoting self-organisation readiness for just transformative change. Divided into three sections, it highlights key aspects of entrepreneurship from a systemic view. The sections encompass personal development and inner transformation, promoting autonomy, creativity and developing problem-solving skills. How to provide resources and support to overcome barriers and resistances to innovation.

Envision yourself motivated and trusted to put that idea in motion, with activities going as planned, there is positive impact beyond imagination and you are highly content with a job well done, network solidified and a nice future traced. Now imagine that this is step 1 to that scenario. Let’s trace the path that helps us navigate as we go along.

How flexible are institutional governing instances and leadership to promote processes of change? Are they able to channel both intrinsic and extrinsic innovative persons and ideas and encourage continuous learning and personal and professional growth?

How to prepare to nurture and channel intra and entrepreneurship?

Establishing a culture of innovation and risk-taking within an organisation yields numerous benefits in the context of addressing the process of change. Firstly, such a culture promotes creativity and forward thinking, inspiring employees to generate novel ideas and approaches. This leads to the development of innovative products, services and solutions, thereby enhancing the organisation’s competitive advantage in the market.

Secondly, raising a culture of innovation and risk-taking cultivates a mindset that embraces experimentation and learning from failures. By motivating employees to take calculated risks and view failures as valuable learning opportunities, organisations can foster a culture of continuous improvement and adaptability. This enables them to navigate through dynamic and unpredictable environments more effectively, as they can quickly respond and adapt to changing circumstances.

Through open and inclusive processes, organisations demonstrate their commitment to fairness, accountability and shared goals. Transparency builds trust among all interested parties, fostering a collaborative culture where individuals feel safe to take calculated risks and experiment with new ideas.

A culture of innovation and risk-taking enhances employee engagement and satisfaction. It entrusts individuals by providing them with the freedom to explore new ideas and make meaningful contributions, thereby increasing their sense of ownership and fulfilment in their work.

The question of ‘Who does the things?’ is crucial. Plans require individuals to put them into action and changes rely on people to embody them.

Let’s remember that people and their relationships are the core of any strategy.

Motivating and mobilising committed innovators is essential for driving institutional or systemic change.

Strategic plans without a clear understanding of who will execute them often end up being too idealistic. In fact, many plans fail because of the mediocre efforts of those responsible for implementing them. Thus, the importance of talent development, attraction and retention and of nurturing a culture of innovation, creativity and intra-entrepreneurship. When institutions support and entrust individuals and provide opportunities for fulfilling careers, motivation and intra-entrepreneurship is triggered, and the chances to deliver more and better results are enhanced.

Nurturing innovation, intrapreneurship and agility within organisations tap into the creative potential of employees unleashing a rich pool of ideas and experiences. This culture of innovation and risk-taking becomes a catalyst for organisational change and improvement and it can be cultivated by:

• (a) entrusting and supporting intrapreneurs which can lead to continuous improvement of processes, the development of new products and services and the drive of growth, competitiveness and value; and

• (b) bringing together individuals from various backgrounds, expertise and perspectives. This diversity of thought cultivates an environment that values and encourages innovation.

When interested parties feel heard and entrusted to contribute, they are more likely to take risks, propose new ideas and challenge conventional thinking.

Resistance to change and risk aversion can hinder the development of intra-entrepreneurship within organisations.

4.1 Fostering Intra-entrepreneurship for Individuals to Become Agents of Change

Creating a culture that values and encourages creativity is essential for individuals to unleash their innovative potential. This can be achieved by:

• promoting entrepreneurship, open communication, diverse perspectives and experimentation;

• motivating individuals to think outside the box;

• challenging conventional wisdom and

• generating new ideas.

Entrepreneurship goes beyond the traditional understanding of starting a business. It encompasses a mindset and approach that promotes innovation, creativity and taking initiative from the individual to the systems level. It involves:

• embracing uncertainty;

• leveraging opportunities and

• adapting to dynamic environments.

By promoting entrepreneurship, we can challenge and rethink the fundamentals of how current systems and structures operate, paving the way for new paradigms and possibilities and a sense of creativity that stimulates innovation within the organisation.

Organisations can keep individuals motivated and channel their maximum potential along their personal and professional careers by nurturing an environment that values and nurtures each individuals’ qualities.

4.2 The Role of Leadership in Cultivating Intra-entrepreneurship

Leadership plays a pivotal role in enabling entrepreneurship and self-organisation. Inclusive-driven and compassionate leaders can ensure that the benefits of systems innovation are accessible to all through the promotion of a shared language and the encouragement of active participation.

These leaders inspire and motivate others, provide guidance and support and a collaborative work culture. They create an environment where individuals are encouraged to take risks, think creatively and contribute their ideas towards system-level change.

Lead by example plays a crucial role for leaders who should demonstrate these qualities themselves. They inspire and motivate individuals to suit these qualities in their own personal and professional growth.

Constructive regular feedback and recognition is essential for maintaining motivation and channelling the potential of each actor. Individuals provided with insights into their strengths and areas for improvement are enabled to grow and develop further. Recognition of achievements and milestones, whether through formal rewards or informal appreciation, reinforces individuals’ motivation and boosts their confidence in their abilities.

Providing employees with the freedom and a certain level of autonomy to explore new ideas and solutions is vital for cultivating intra-entrepreneurship. Organisations can promote autonomy by allowing individuals to have ownership and responsibility over their projects and tasks, granting them with:

• (a) the necessary resources,

• (b) decision-making authority,

• (c) skill development,

• (d) problem-solving capabilities and

• (e) innovative thinking.

Providing clear goals and objectives, but at the same time, allowing flexibility in how these are achieved, help individuals exercise their autonomy and make decisions that align with their strengths and interests. This sense of own control entrusts individuals’ motivation, as they feel valued within the organisation.

One key aspect of promoting entrepreneurship is personal development and inner transformation. Entrepreneurs that cultivate self-awareness are more prompt to explore their purpose and passions. This inner growth enables navigating challenges, managing ambiguity, developing resilience and staying motivated. It nurtures a sense of purpose that aligns with the larger goals (Fig. 4.1).

Fig. 4.1

Full moon night at Serignan Plage (own picture)

Practising meditation, self-reflection and mindfulness has been instrumental in my growth as a person and as a leader. Among many others, two books, “The Power of Now”; and “A New Earth” (Tolle 2004; 2006)¹, have supported my personal maturing process as a person and as a professional and leader. These books highlight the need for conscious awareness and the cultivation of presence in our daily lives. By taking the time to cultivate a calm and focused mind; I have:

• learned the importance of embracing the present and letting go of past regrets or future anxieties;

• developed inner stillness, which in turn has brought about clarity and insight in decision-making processes;

• nurtured a balanced and motivated inner state, which has had a positive impact on my ability to navigate challenges with resilience; and

• taught me the importance of being in tune with my own emotions and thoughts.

This self-awareness has not only helped me understand myself better but has also enhanced my ability to empathise with others.

As a leader, these skills have been invaluable in building strong relationships and fostering a positive and collaborative work environment. Furthermore, I have found that I am better equipped to handle stressful situations and make sound decisions.

4.3 Creating Intra and Entrepreneurial Just and Inclusive Dynamics

Intrapreneurs are individuals who possess an entrepreneurial mindset and drive innovation within the corporate environment. However, they often face various challenges and roadblocks that can hinder their efforts.

Intrapreneurs need an organisational culture that encourages risk-taking and experimentation. This can be achieved by cultivating a safe environment where failures are viewed as learning opportunities rather than setbacks. Entrusting intrapreneurs to test and iterate their ideas without fear of punishment or negative consequences enables them to overcome resistance and push boundaries.

By nurturing a supportive and inclusive environment, entrepreneurs can be entrusted to lead innovations and teams to contribute their unique talents and perspectives. This is vital for driving innovative solutions and achieving organisational and ecosystem readiness.

Leaders in charge of the processes of change need to create a vision for the future that considers the interests of all involved and concerned actors [3]. This entails:

• promoting trust and multi-actor and multi-level relationships;

• developing a strategy that approaches that vision;

• enlisting the support of the critical centres of power to achieve it and

• incentivising the people whose actions are essential to implement the strategy.

Organisations should invest in providing continuous learning and relevant development and training programmes, specific to entrepreneurship, innovation management and leadership workshops and resources that enable individuals to acquire new knowledge, develop critical thinking abilities, and enhance problem-solving techniques to overcome barriers, communicate their ideas effectively and drive change within the organisation. This equips them with the skills needed to tackle complex challenges.

Cultivating a growth mindset stresses the belief that skills and abilities can be developed through continuous learning and perseverance. This is essential for encouraging a culture that embraces challenges. Individuals are more likely to take risks, think creatively and persist in problem-solving endeavours when failures are seen as opportunities for learning and effort and resilience is valued.

Intrapreneurs can greatly benefit from the guidance and mentorship of experienced individuals within the organisation. Establishing mentorship programmes where seasoned entrepreneurs or executives provide guidance, advice and support can help intrapreneurs navigate challenges, gain insights and refine their ideas. Mentors can provide valuable feedback, open doors to networks and offer insights on navigating organisational politics.

One key aspect for organisations, intrapreneurs and ecosystems is investment and securing the necessary allocation of resources, including financial, human and technological to facilitate the necessary changes:

• to develop and implement innovative ideas and

• to support the implementation of the strategy.

Organisations should provide mentorship and establish dedicated funding mechanisms, including financial (such as innovation funds or venture capital funds), human and technological resources, specifically allocated to support the implementation of the strategy and the development of intrapreneurial initiatives. This support will enable intrapreneurs to overcome financial barriers, navigate challenges, pursue their ideas with confidence and facilitate the necessary changes. Linked with this are two important issues:

• 1. The first one deals with a mindset shift to manage the availability or constraints of time and resources.

  In general, we are used to driving by short-term approaches (e.g. policies, projects, initiatives or products). In many cases, we still do not have the mechanisms or the capacity and resources to make long-term investments and robust monitoring beyond the project life cycle, the annual financial report, the four-year political cycle, etc.;

• 2. The second one is predictability. The question that raises is how can we predict the long-term impact of a policy, an initiative, a project, a product or a service? In fact, if we had to explain the uses or impacts in the long run of innovations (research results, products, services, etc.), we would be in real trouble. We can use examples such as Edison’s experiments. The transformation of the phonograph from a simple dictation machine to a popular music playback device demonstrated how an invention can take on a life of its own and be adapted in ways that its original creator may not have anticipated. Edison’s initial vision for the phonograph was limited to its practical applications, but its eventual impact on the music industry and entertainment culture far exceeded those expectations.

Incentivising: recognising and rewarding intra and entrepreneurial efforts is crucial to motivate and reinforce positive behaviour. Publicly acknowledging and celebrating the achievements of intrapreneurs creates a culture that values and supports their initiatives. Rewards can take various forms, including financial incentives, promotions or career development opportunities. Recognising and rewarding intrapreneurs not only motivates them but also sends a clear signal to the rest of the organisation that innovative thinking is valued and supported.

The first step is to define clear criteria for recognising and rewarding initiatives. These criteria should align with the organisation’s goals, values and strategic priorities. An evaluation process should be established to assess the initiatives against the defined criteria. This process can involve a combination of quantitative and qualitative measures, such as financial impact, market potential, creativity, collaboration, sustainability and societal and environmental impacts. By establishing clear criteria and a transparent evaluation process, employees have a clear understanding of what is expected and how their initiatives will be assessed.

Financial incentives can also be an effective way to recognise and reward entrepreneurial initiatives. Linking financial rewards to the success of the initiative motivates employees to take risks and drive results. Examples of tangible financial incentives include performance-based bonuses, grants for innovation projects or seed funding for entrepreneurial ventures within the organisation, profit-sharing or equity stakes in the venture.

Non-financial recognition is equally important in acknowledging and rewarding entrepreneurial initiatives. This can take various forms, such as public recognition, certificates, awards or promotion opportunities. This can be channelled through publicly acknowledging employees’ efforts through company-wide announcements, internal newsletters or dedicated events. These create a sense of pride and foster a culture of recognition. Other forms of non-financial reward are providing opportunities for professional development, mentorship or leadership roles within the organisation.

Innovation challenges and competitions are powerful recognition ways as these initiatives boost employees to think creatively and come up with innovative solutions to specific problems or opportunities. Examples include hackathons, idea pitches or innovation tournaments where individuals or teams compete to develop the most promising ideas. Winners can be rewarded with financial incentives, recognition or the opportunity to develop their ideas further within the organisation.

Training programmes, conferences, workshops or educational resources are also strong recognising opportunities, they build up on the employees’ professional development, enhancing their skills to support their entrepreneurial aspirations. For example, organisations can sponsor employees to attend innovation-focused conferences, provide access to online courses on entrepreneurship or facilitate participation in industry events and networking opportunities.

Recognising and rewarding entrepreneurial initiatives goes beyond incentives and recognition. It also involves creating a supportive environment that provides the necessary resources and infrastructure for individuals to pursue their entrepreneurial ideas. This can include dedicated innovation labs, access to mentors and experts, collaboration spaces and technological tools. A conducive environment enables individuals to take risks, experiment and drive their initiatives forward.

One example of recognising and rewarding entrepreneurial initiatives is Google’s ‘20% time’ policy, where employees are prompted to spend 20% of their working time on side projects and innovative ideas. This initiative has resulted in the development of successful products such as Gmail and Google Maps, providing employees with recognition and opportunities for career advancement.

Another example is the ‘Innovation Awards’ programme by International Business Machines Corporation (IBM), which recognises and rewards employees who have made significant contributions to innovation within the company. The programme includes financial rewards, public recognition and the opportunity to present their work to senior executives.

Building networks and encouraging collaboration are essential for intrapreneurs to leverage collective intelligence, collaborate and learn from each other. Establishing communities of practice, cross-functional teams, innovation labs, interdisciplinary and intersectoral platforms or innovation forums allows intrapreneurs to connect with like-minded colleagues, share knowledge, exchange ideas and leverage diverse perspectives. Collaboration can lead to the emergence of innovative solutions.

When employees are confident that their contributions will be valued and supported, they are more likely to embrace innovation and drive organisational change towards the common good.

As we proceed to the next chapter, we will delve into the driving forces of system-wide transformative governance. We will explore collaborative elements and innovative co-creation vortices that start with an ‘i’, maximising the impact of multi-level and multi-agent governance processes. Our journey continues, encouraging entrepreneurs to become change agents in cultivating resilient and adaptive governance for the future.