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How Big Companies Can Make Innovation Successful

Innovation isn’t about having the right "look," it’s about embracing risk.

Every company wants innovation to be a core value, but innovation doesn’t happen on its own.

That was the key takeaway of Kirstine Stewart’s talk at MaRS Verge in Toronto today, an event that attracted 175 people from 20 different sectors.

“Success needs to be praised, but failure also needs to be supported,” said Stewart. “If people don’t believe they can stick their neck out, they won’t.”

Kirstine Stewart is the chief strategy officer of Diply, a social news and content website. Prior to joining the London, ON-based company Stewart was VP of North American partnerships at Twitter.

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“Somehow, we think of innovation as being scary and that we have to disrupt everything,” said Stewart.

Stewart believes that the key to taking fear out of innovation is building an environment of trust. 

There can’t be fear of negative consequences if a project or initiative does not have a successful outcome. Failure has to be supported in order to build trust with employees.

“When I worked in the U.S. this was part of their culture I wish Canada had more of,” said Stewart.

Jon Worren, Senior Director of Entrepreneurship Programs at MaRS says culture is critical to making innovation successful.

“People often come to us because they think something’s not working in their company’s approach to innovation and it usually comes down to culture,” Worren told TechPortfolio. “Many corporates recognize that startups have set the model in how to build an innovative company culture.”

What else helps make innovation possible in both startups and large enterprise?

Innovation comes from all employees — not just the IT department

“Innovation doesn’t have a look,” said Stewart. “It’s not about being Steve Jobs in a black turtleneck.”

Tech companies earn a lot of media coverage for being harbingers of innovation, but they can also struggle to scale with it.

“They’re often based on founder culture, and that doesn’t always scale” said Stewart. “Transformation from a startup to a larger company means founder culture needs to expand so everyone feels like a founder of the business.”

Companies that spread power across an employee base are more likely to be successful with innovation.

Innovation might require structural changes

While Stewart was at the CBC, reorganizing the broadcaster’s approach to digital was one of the ways innovation was supported.

The digital team had been siloed and functioned like a hub, rather than being part of everything the organization did. Stewart said the CBC had to dismantle this hub and enable a digital-first mentality across the organization and in every department.

This move fostered innovation.

“You have to empower people with responsibility,” said Stewart. “It has to be embedded into every area of the business and not classed as just an innovation project.”

Look outside, speak up, and manage up

“No matter what size company you’re at, you have to look outside yourself,” said Stewart.

In her time at CBC and Twitter Canada, Stewart learned you have to remind people — who are often talented and have been with a company for a long time — that the world is changing.

As an employee, you also have to speak up even when you think your organization won’t listen: it’s your responsibility to bring ideas forward.

To overcome organizational limitations, Stewart said you have to manage up. Put yourself in your boss’ shoes and think about what he or she has to consider, what the consequences are, and find ways to eliminate risk for them.

“Risk is a scary thing to be signed up for,” said Stewart. “Manage expectations as well as fear of others.”

Frequently Asked Questions

What did Kirstine Stewart say is needed for innovation to succeed?

Speaking at MaRS Verge in Toronto in November 2016, Kirstine Stewart said innovation does not happen on its own. Success needs to be praised and failure supported, because people will not take risks if they do not believe it is safe to stick their necks out.

How can companies take the fear out of innovation?

Kirstine Stewart said the key is building an environment of trust, where people do not fear negative consequences when a project does not succeed. Supporting failure is how that trust is built with employees.

Why does culture matter so much for innovation?

Jon Worren of MaRS said companies that come to MaRS because their approach to innovation is not working usually have a culture problem. He added that many corporations recognize startups have set the model for building an innovative culture.

Why can founder culture be a problem as companies grow?

Kirstine Stewart said tech companies are often built on founder culture, which does not always scale. As a startup becomes a larger company, that culture needs to expand so everyone feels like a founder, and companies that spread power across employees are more likely to innovate.

How did the CBC restructure to support innovation?

While Kirstine Stewart was at the CBC, its digital team had been siloed and worked like a separate hub. The broadcaster dismantled that hub and built a digital-first mentality into every department, which Stewart said fostered innovation.

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