Is your organization considered a "centre of creativity" by your customers?

Do your competitors fear your next big, bold, brave creative "breakthrough"?

Are you considered the "employer of choice" for the very best and most creative people in your industry?

Is your organization building it's "creative capital" at a rate that outperforms the market overall?

If not, you may be headed for trouble! There is no doubt about it, developing a culture that attracts and maintains creative talent - the true 'A' players - is a tough challenge. Perhaps, not surprisingly, most organizations therefore attempt to walk a fine line when it comes to creativity. They play it safe. They give lip service to the importance of creativity and innovation but continue to reward mediocrity. They cocoon, coddle and condone the hard core of employees whose task it seems to be to maintain the status quo and perpetuate the current environment. They shelter those who seem satisfied with following the pack rather than leading in new, bold and imaginative ways. In the ever changing, ever accelerating and ever competitive world of today, that simply isn't the best and certainly not the smartest strategy.

Creative Destruction

As far back as the 1930's, the noted economist Joseph Schumpeter clearly demonstrated that the markets encourage and reward "discontinuity". In other words, they encourage companies to destroy, to constantly evolve, to create revolutionary products and to press into brave new territories in order to remain competitive. To accomplish this, organizations must find ways to build a culture that can be systematically and sustainably creative. They must be able to demonstrate what is called "serial success" and an ability to re-imagine new ways and new appetites. In the words of Professor Richard Florida, "creativity…is now the decisive source of competitive advantage and the most highly prized commodity in our economy".

Attention Span

According to a recent study, the average lifespan of a company on the S&P 500 is now only 12 years (in the 1930's it was well over 35 years). What this means is the attention span of your clients, your investors and your top creative performers is becoming shorter and shorter. If you don't feed your best creative talent the food they need, don't expect them to hang around. They will move on to graze in another field. If, on the other hand, your company is constantly evolving and creating great new products and services on an ongoing basis, you are far more likely to retain not only these people but attract even better ones.

The Creative Class

According to Professor Florida in his book "The Rise of the Creative Class", the creative economy has been growing right before our eyes for some time now. In the United States, it has grown from $ 5 billion in 1953 to over $ 250 billion today. Underpinning that growth is the fact the "creative class" has also been growing. Defined as those who add economic value through their creativity, the "creative class" has grown in both real terms and as a percentage of the total workforce. Today the creative class, at 30% of all jobs, is slightly larger than the working class at 26% and is swiftly catching up on the service class at 43%. The important underlying issue for organizations and their leadership, according to Florida, is that "the rise of the creative class is reflected in powerful and significant shifts in values, norms and attitudes". The organizational that has not spotted these shifts and acted upon them is risking an eventual decline in their economic value.

Dimensions of Creativity

The good news is that creativity is not the mystical affair that some people think and fear. In fact, it is a cultural ethos that you can choose to either build or ignore. The choice is yours. Professor Florida reminds us that;

Creativity … is not the same as intelligence.

Creativity … is a form of combinatory play.

Creativity … requires self-assurance

Creativity … involves taking smart risks.

Creativity … is driven by intrinsic reward.

Creativity … is a social process.

As Florida so eloquently and succinctly puts it, "creativity flourishes best in a unique kind of social environment: one that is able to allow continuity of effort, yet diverse and broad minded enough to nourish creativity in all its subversive forms"

Changing Your Culture

Here is a short list of things to consider if you really want to "update" your organizational culture.

Come Clean – As with any other change related intervention (yes, it will have to be a premeditated and planned intervention) you begin by first admitting you have a problem. Sure, things might seem all right today, however, if you don't make the shift to a thriving, driven, creative environment soon, your luck will eventually run out. (PS: By the way, do you really want to work for or worse still lead an organization that is "just" all right?)

Create a Monster – Your team has to energetically rally behind the cause. Challenge them to go out and find even a single aspect of your culture that will ultimately lead to its demise (i.e. too big, too beige, too bland or too boring, etc.) and then make "it" the enemy.

Assess your Talent – To change attitudes you will likely have to change some people. This is not really an option. Whether you move people to another department or out the door, there must be some visible and symbolic shifts in order to unlock the creative gene. Simultaneously, your top creative performers must be identified, positioned and rewarded to help the "new" organization.

Set the Tone – The role of the leader is to set the tone of the organization and role model new behaviors. From now on if you strive to have a dynamic, creative, fast moving culture, you will have to more actively campaign and visibly share your expectations with your people. Have a kickoff for the new way or a funeral for the old way. If you fear the evolution is a long slow process, ask eBay, Amazon, or Google how long it really takes.

Get Creative – From here on in, having creative people working for you and comprising a new and dynamic "super-creative class" is useless without also developing a creative approach to your business overall. Thoroughly analyze your process flows, reinvent it to offer employees the chance to truly challenge existing norms and make changes where needed. Forget traditional cross-functional teams, instead go out and solicit "creative volunteers". Post upcoming projects along with a signup sheet. A project based approach work wonders when team members are motivated to be on the creative team. Remember, creativity is spurred by intrinsic not monetary rewards.

Setbacks – In managing the creative class you are managing people who are most likely "ad-hoc" rather than "linear" thinkers. You are managing intellectual capital, rather than physical capital. Managers of this "class'' of people must be adept at balancing tangible goals within an intangible environment.

Our Monthly Rant...
Surviving the Digital Age

To thrive and survive, your products; services and people must continuously evolve. Your corporate culture (your attitudes and values) is no exception! Whether you like it or not, your organization's cultural evolution has to be an ongoing, dynamic process. Evolution occurs through the sharing of "liberated" ideas. However, whether up, down or sideways, there are gaps and breakdowns in communication throughout most organizations. The result? The idea virus doesn't spread and this gravely impacts the organizations creative evolution.

In case you have not noticed it (and you have), the new world, the new "normal", is speaking a whole new language. Light years different from the analog days of just a few years ago. This new digital language is as different from analog as "rock" is from "rap". If you put these two issues together - bad communication and a "foreign" language barrier - a culture will freeze and creativity will die.

Wait, the rant isn't over yet!

Poor communication is one thing, language barriers are another but the motivation of your employees is another whole factor still. Things have changed. In today's 'war for talent', top performers want to work for organizations which challenge them mentally and are overall great places to work. You will need to add some new 'motivators' to the menu you offer your people. One radical view suggests that all employers will ultimately reach a viability "salary cap" for any given position. The race is therefore on to see which organization can create the best overall Employee Value Proposition. The one that affords the healthiest, most vibrant, energizing, electric culture. A culture where employees are challenged, recognized, and ultimately rewarded to be creative not with cash but with the new currency of the 21st Century - further opportunity!