Obtaining the title of Most Innovative Company of the Year is the aspiration of the vast majority of businesses.

In addition to selecting the most innovative companies of 2014, Boston Consulting Group's (BCG) innovation-focused research in 2014—consisting of more than 750 businesses in 17 diverse markets—revealed a number of surprising findings.

Clearly, the organizations that led the Innovation ranking utilized a methodical approach to managing Innovation. The study indicated that culture is a major catalyst for innovative ideas. People, financial resources, the state, and even cultural norms and beliefs were assessed to have a lesser impact on innovation than Organizational Culture.

The organizational culture is a guiding framework that fosters a specific set of behaviors. Experimentation and persistent evolution characterize the Organizational Culture of the vast majority of creative firms (adaptation).

A culture that is adaptive incentivizes behaviors that are crucial to encouraging innovation, such as initiative and risk-taking, creativity, and swift and rational Decision-making.

When establishing a culture of Innovation, Exploration, and Experimentation, firms always face numerous challenges.

  • Many businesses prioritize the creation of high-quality goods, the enhancement of productivity, and the reduction of expenses. These organizations are prone to invest too little in exploration, which is crucial for managing uncertainty, gaining experience from mistakes, and innovation.
  • Certain beliefs and behaviors that constitute an organization's culture are fostered by the organization. They adhere to one of the two civilizations that are diametrically opposite to one another:
    • A corporate culture of exploitation, efficiency, and predictability exemplified by job excellence, team loyalty, teams of reliable individuals, and perfection.
    • Startups embrace a culture of exploration, diversity, and unpredictability defined by aspirations, rule-breaking, mistakes, and perseverance based on failure-based learning.
  • It is challenging to create and manage enterprises that employ the best of both cultures.

Transforming the business from Exploitation to Experimentation requires the adoption of distinct Business Models, trial and error, and iterations. Integrating an exploitative culture with an explorative culture requires the firm to take the following steps:

  • Permit individuals to spend additional time on experimental endeavors in order to generate original ideas.
  • Designate specific resources for the incubation of ideas and foster a conducive environment.
  • Share talent, expertise, and ideas to break down silos and generate value.

The development of an Innovation Culture is inhibited by "soft" or human nature-based constraints.  For example: 

  • Individuals are resistant to something they have never encountered or thought before.
  • Experts in a certain field reject ideas or procedures that challenge their current methods.
  • Individuals value the short term over the long term, as well as rapid solutions over reflection and investigation.
  • People dislike ambiguity and change.

BCG's 2014 research on the most innovative businesses revealed that disruptive innovators combine 3 fundamental drivers for radical innovation:

  1. Management
  2. Governance
  3. Organization


Let's examine the first 2 Innovation drivers in greater detail.


  • Senior Management is the primary impetus for Innovation. Innovation must be deeply established in an Organization's Culture through the steadfast commitment of its leadership.
  • A firm is able to achieve groundbreaking Innovation and growth as a result of its management's embrace and support of revolutionary Innovation activities.
  • The BCG study underlined the crucial importance of management in monitoring disruptive Innovation initiatives through strategic KPIs, building effective Performance Management, Rewards and Recognition systems, and integrating these systems to disruptive Innovation KPIs.


  • Leading innovators classify innovation initiatives according to their innovativeness, as discovered (low or high).
  • They were observed to employ distinctive management practices for both revolutionary and incremental Innovation projects.

Interested in learning more about the and how to communicate them across the organization? You can download an editable PowerPoint presentation on the Drivers & Challenges of Innovation Culture here on the Flevy documents marketplace.

Do You Find Value in This Framework?

You can download in-depth presentations on this and hundreds of similar business frameworks from the FlevyPro LibraryFlevyPro is trusted and utilized by 1000s of management consultants and corporate executives. Here’s what some have to say:

“My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me in a fraction of the time and money of other solutions. I strongly recommend FlevyPro to any consultant serious about success.”

– Bill Branson, Founder at Strategic Business Architects

“As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value.”

– David Coloma, Consulting Area Manager at Cynertia Consulting

“FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The quality of the decks available allows me to punch way above my weight — it’s like having the resources of a Big 4 consultancy at your fingertips at a microscopic fraction of the overhead.”

– Roderick Cameron, Founding Partner at SGFE Ltd


Votes: 0
E-mail me when people leave their comments –

You need to be a member of Global Risk Community to add comments!

Join Global Risk Community

    About Us

    The GlobalRisk Community is a thriving community of risk managers and associated service providers. Our purpose is to foster business, networking and educational explorations among members. Our goal is to be the worlds premier Risk forum and contribute to better understanding of the complex world of risk.

    Business Partners

    For companies wanting to create a greater visibility for their products and services among their prospects in the Risk market: Send your business partnership request by filling in the form here!