Fostering Innovation through Organizational Culture

Innovation thrives in organizations that embrace intelligent risk-taking, foster collaboration, and promote a leadership style that adapts to people and situations. Leaders who embrace a tailored approach can help create an environment where people feel empowered to innovate.

One of the key principles that can guide leadership in fostering innovation is Situational Leadership®, a model developed by the Center for Leadership Studies. This model suggests that effective leaders adjust their style to the development level of the individuals they lead. By assessing the competence and commitment of team members, leaders can provide the right balance of direction and support.

In an innovative culture, leaders must recognize when to step in and provide guidance and when to step back and let the team member explore their creativity. For example, a team that is newer to a specific task such as running a brainstorming exercise may need more direction, ensuring that their efforts are structured and aligned with organizational goals. As the team member is able to perform the task to the desired level and grows more confident, the leader’s role should shift to one of support—encouraging bold ideas, facilitating collaboration, and letting the team member take ownership of the tasks associated with innovation.

This flexible, adaptive leadership approach fosters an environment where people feel safe to take risks and experiment, knowing that their leader will provide the right amount of oversight based on their needs. Amy Edmondson’s book “The Fearless Organization: Creating Psychological Safety in the Workplace for Learning, Innovation, and Growth (Edmondson, 2019)” highlights that teams where people feel safe to take risks, make mistakes, and voice ideas are more likely to innovate and succeed.

The Innovation/Collaboration Connection

However, leadership is not just about leading one person and their specific tasks. Leaders must support individual innovation while also serving as a catalyst for collective achievement through collaboration. We innovate more when we collaborate and build on ideas about ways that create something greater than any single contribution. One of the challenges that many organizations face is turning individual efforts into a collective achievement. As highlighted in Deloitte’s 2020 Global Human Capital Trends report, organizations that foster collaboration are eight times more likely to achieve better business outcomes.

Incorporating elements from Situational Leadership® into the collaborative process ensures that each team member’s unique strengths and contributions are recognized and supported. For instance, in the early stages of a project, some individuals may need more hands-on coaching to bring their ideas to fruition, while others may thrive with greater autonomy. The leader’s role is to identify tasks (for now, don’t consider the entire concept) evaluate team members’ performance on the tasks, then create the conditions where everyone’s contributions can flourish. Team leaders should facilitate interactions that build on ideas, making the outcomes more impactful than what any one person could have achieved alone.

In a culture where intelligent risk-taking is encouraged, collaboration becomes the vehicle through which those risks are tested and refined. Teams should be encouraged to ask, “How can we make this even better?” rather than settling for the first solution.

Leadership Authenticity

A discussion on fostering innovation wouldn’t be complete without touching on the importance of leadership authenticity. The TV show Ted Lasso offers a brilliant case study on how humility, authenticity, and a genuine care for team members can create an environment where people feel both empowered and safe to innovate. Just as Ted Lasso’s leadership built a cohesive, high-performing team, leaders who cultivate trust and psychological safety in their organizations can expect to see a direct impact on engagement, innovation, and, ultimately, the bottom line.

In Lead Like Lasso, Stockman and Coniglio use leadership lessons drawn from Ted Lasso’s character to show how creating trust and psychological safety in teams unlocks their potential. Leaders who, like Ted, prioritize relationships over ego and results over personal recognition foster a sense of belonging and commitment among their team members. When individuals feel supported on a human level, they are more likely to take the kinds of intelligent risks that drive innovation. According to Gallup’s 2017 State of the Global Workplace, highly engaged teams are 21% more profitable than their less-engaged counterparts.

By leading with humility and authenticity, leaders create a foundation of trust. Team members know they can share ideas without fear of judgment or ridicule, and they feel empowered to push the boundaries of what’s possible. Innovation thrives beyond boundaries.

Bringing it all Together

To build a cohesive organizational culture that promotes intelligent risk-taking and collaboration, leaders must wear many hats—coach, facilitator, supporter, and, occasionally, hands-on guide. By using the principles of Situational Leadership®, leaders can tailor their approach to the needs of every team member at every level in the organization and for every task encompassed by the innovation process. Collaboration, in this environment, becomes the fuel for taking ideas and making them greater than the sum of their parts.

When leaders show up as their authentic selves—humble, empathetic, and focused on collective success—they create the psychological safety needed for people to take the risks necessary for innovation. The result is a culture where innovation is expected and celebrated. By fostering a culture of intelligent risk-taking, collaboration, and authentic leadership, organizations can unlock their teams’ potential for innovation. Leaders should take time to assess how well their organization supports these values and make the necessary adjustments to foster a truly innovative environment.