How companies can encourage innovation

When Francine Kent managed employee activities at a large computer manufacturer in Massa­chusetts, she coordinated an in-house band that performed at three or four company events a year. For its 60 members, the band offered an outlet for their musical talent. But it also benefited the firm.

"There were people in that band from the legal department, the loading dock, and the manufacturing plant, plus program engineers," says Ms. Kent, now a business-development consultant in Sarasota, Fla. "They knew people all over the company. I saw them solve problems and accomplish things that they wouldn't have if they had not known somebody on the loading dock. It also broke down class barriers."

Score one for creativity in the workplace. In varied ways, the subject is gaining recognition as an important element in helping businesses succeed by improving the bottom line and keeping employees satisfied. Economists and futurists regard creativity and innovation as cornerstones of competitiveness in the United States.

"We're moving from an industrial economy to a creative economy," says Richard Florida, author of "The Rise of the Creative Class," although he notes that the transformation is still in its infancy. The creative sector, which he says is made up of "people who think for a living," includes such fields as science, technology, arts, culture, design, law, healthcare, and education. These creative people, he adds, "provide a critical stimulus for economic growth."

A few progressive firms are signaling a fresh approach with job titles such as chief innovation officer, chief idea officer, and chief creative officer.

In Charlotte, N.C., the McColl Center for Visual Art has created an Innovation Institute that pairs artists with business executives to help them unleash creative abilities and learn new ways of problem-solving. Workplace creativity is also the subject of a meeting next week, the 2007 National Conference on the Creative Economy, to be held in Fairfax, Va., Oct. 24-25. It is hosted by the Fairfax County Economic Development Authority.

Evidence of a 'creativity gap'

In a new survey, the group finds a "creativity gap" in the workplace – a disparity between the creative resources available and those being used. While a vast majority of American workers (88 percent) consider themselves creative, fewer than 2 in 3 think they are tapping their creative capacities on the job. Nearly 30 percent say they would take a lower salary to work for a company that valued their creative input. And 1 in 5 say they would move to a different city to work for such a company.

"They value it that much," says Gerald Gordon, president of the Fairfax County Economic Development Authority. He adds, "The companies that will be appealing to a creative workforce are not only open to new ideas but encourage workers to have input."

Mr. Florida notes that businesses such as Starbucks, which he says is redefining coffee, and Whole Foods, which is redefining groceries, hire people who are "individualistic and self-expressive."

"People are no longer motivated just by making money," Florida says. "Companies have to provide environments that allow [employees] to express themselves."

That kind of environment prevails at the Summit Group Communications in Salt Lake City. Because they are located in an old warehouse, employees can draw on the walls of the conference room while brainstorming. They also play hockey in the hallway, work out, and hold barbecues in the parking lot.

Activities like these go beyond fun and games, Florida says. "They're ways of building relationships and fostering networks. They're powerful tools."

More creativity means less turnover

Still, some managers are concerned that such activities will hinder productivity. Kent counters by saying, "When you foster creative expression among your employees, you end up with lower turnover."

Tight budgets and lean staffing also discourage innovation. "When you had five engineers and now have only three, there's less time and ability for creativity," says Bob Kustka, president of Fusion Factor, a workplace productivity consulting firm in Norwell, Mass.

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