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Good innovation practices are vital
Unleash creative potential with data-backed decisions, cultivate a growth mindset, and conquer biases for a thriving innovation culture.
Effective innovation practices empower managers to make well-informed decisions using reliable data. These practices can continuously be improved. Recognizing that numerous decisions are grounded in assumptions and that we are susceptible to our own biases is a crucial initial step.
Co-author Øyvind Lillerødvann, Business Developer for Data-driven Innovation at Kantega.
This article is part of a series where we share experiences from a learning project on innovation accounting and innovation systems. To learn more about the background for the learning project and the problem statement we recommend reading these articles first:
- Creating a framework for innovation
- Establishing the need for an innovation system in Kantega SSO
- The Innovation Thesis: Setting a direction for innovation
- How to reduce innovation risk?
The cornerstone of good innovation practice begins with good leadership. Establishing a culture that integrates innovative thinking and work processes is essential. To accomplish this, leaders must guide their teams, develop a supportive framework for innovation, and facilitate that those who will do the job are given the opportunity to develop the necessary skills and expertise.
It helps to have a growth mindset
What aspects should be focused on during training?
Understanding facts, beliefs, and risks
Beware of cognitive biases
- Confirmation bias: The tendency to interpret information in a way that confirms one's preexisting beliefs, while disregarding information that contradicts them.
- Dunning-Kruger effect: The phenomenon where individuals with limited knowledge or expertise in a subject overestimate their abilities.
- In-group bias: The inclination to favor or trust members of one's own social group over those outside of it.
- Availability bias: The tendency to rely on easily retrievable information when making decisions.
- Optimism bias: The propensity for people in a positive emotional state to overestimate the likelihood of favorable outcomes.
- Pessimism bias: The tendency for individuals in a negative emotional state to overestimate the likelihood of unfavorable outcomes.
Combatting cognitive biases
Are you addressing a genuine problem?
Cultivating a culture of continuous improvement
In summary, these key elements are vital for achieving effective innovation practices:
- Recognize that assumptions are being made.
- Engage someone who can train the team in innovation practices.
- Learn how to quickly test various assumptions.
- Be aware of and counteract your own biases.
- Test, learn, and apply the acquired knowledge.