Organizational response towards risk taking

Organizations that institutionalize successful risk taking by teams and individuals by public rewards and affirmations are more likely to reinforce innovation through new and riskier paths.

A risk, infact anything new, involves the possibility of failure. The path to successful innovation may pass through a period when nothing seems to work. The organizational response to an unsuccessful innovation, holds the key to whether the company will develop into an innovative company or not.

The way a company treats its top performers provides role models for all others. If such fast track performers are innovative, then others will see creativity and innovation as the path to success. If most star performers are cautions and rule bound the clear message would be “Be careful and just follow rules if you want to more up. Creativity does not pay”.