Focus on Innovation for Long-Term PerformanceDoes great leadership always translate to better organizational performance?

According to The Hay Group's seventh annual study of the 20 Best Companies for Leadership, it does.

The companies listed as Best Companies for Leadership (BCLs) out-perform Fortune 500 companies by 100 percent over 10 years.

These companies share another common denominator, however; they value innovation over corporate culture. They view innovation as the driver of shareholder value and understand a significant and continual investment leads to bottom line performance over the long-term.

Rick Lash of the Hay Group summarized the study’s findings in the Harvard Business Review. He identified five critical areas in which these companies lead with innovation.

Five Ways to Lead with Innovation

Lash leaves us with three questions we should be asking ourselves if we want to truly foster innovation:

  1. In our drive to think about the big picture, are we overlooking smaller opportunities that could have greater effects on the organization?
  2. Should we be spending time dedicated to innovation expanding our own knowledge or, by doing so, are we overlooking other existing opportunities within the organization?
  3. Are we doing something to scare ourselves daily? Are we pushing the envelope?

I’d love to hear your thoughts on innovation. Would you add anything to this list?

Thanks to The Daily Galaxy for the image.

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