In the recent Bloomberg 2020 Innovation Index, the U.S. slipped from 8th to 9th place, while Germany pushed South Korea out of first place. Innovation is not the sole driver of economic success, but it plays a leading role. Singapore, not surprisingly moved to 3rd place from its previous 6th place (the Singaporean government is a strong supporter of research and development (R&D) within the country). What this provides is a great snapshot of how countries are supporting R&D to drive innovation and develop new avenues of growth and ways to improve lives.

Even with the current U.S. administration’s pullback from multiple areas of science and innovation support, the U.S. is still #2 in the list of top countries in terms of R&D expenditure, just behind China. This is a positive sign that the U.S. should be proud of and ensure the country continues to be a leader in R&D. The only way to develop innovative new products, services, technologies, and ways to improve the world and drive economic growth is through developing new ideas and putting them into action. That is what innovation is – new ideas that drive value. The Cambridge Dictionary defines innovation as:

The use of a new idea or method

“The use of” is the important part. New ideas are great, but if they are not put to use, they are worthless. Innovation is created when new ideas are put into action. The U.S. typically leads other countries in terms of the number of patents, which are key drivers for innovation; however, if a patent is not applied in the “real world”, it is a great idea, but useless until it is tested in action.

The foundation of patents, R&D, and ultimately innovation is the creation of new ideas. As Samsung just became the leader in acquiring U.S. patents, it shows the company is developing lots of new ideas, and as their product portfolio demonstrates, those ideas are being channeled into marketable products to be tested by the ultimate judge, consumers (at least for many of Samsung’s products, not all are consumer focused).

It is critical for small, medium, and large organizations to emphasize creative thinking in all areas of the business and at all levels. Successful creative thinking to develop new ideas to improve every aspect of the organization, will not happen by building cool work spaces, adding ping-pong tables or bean bag chairs, or fun team building exercises. Creative thinking happens when you train your entire team in the basics of how to develop new ideas, and ensure everyone understands how to avoid “killing ideas” and accepting and celebrating failure.

An organization will never run out of new, creative ideas when everyone is taught deliberate and systematic methods to develop new ideas, any time and any place. Yes, sometimes new ideas come from unstructured brainstorming; however, if you want a regular supply of new ideas, you cannot hope and pray. Haphazard methods (such as brainstorming) typically does not work, and trial & error usually takes too much time and effort.

In today’s fast-paced global business environment, no organization has the time to hope new ideas just happen. What is proven time-and-time again is that deliberate and systematic methods are the best ways to develop a large amount of ideas, quickly. And from those ideas the most “attractive” are analyzed and developed for possible applications in consumer market. You need a large number of ideas to find those “golden nuggets”.

Developing creative thinking abilities come from a combination of knowledge, experience, and practice. Just like playing golf, riding a motorcycle, or as a baby learns to walk, creative thinking abilities are improved from understanding the basics and regular practice. Unfortunately, most schools do not teach creative thinking. We are taught mathematics, science, and history, but most of us were never formally taught how to develop new ideas and apply them. This is where business leaders can make a massive difference in the success of their firms.

Taking the initiative to train and encourage ongoing learning and practice of developing new ideas to improve the business should be a foundational key performance indicator (KPI) within any organization. Leaders need to realize that new ideas are often developed when there is time provided to practice and develop new ideas. Typically, new ideas are developed when you (1) pause (allow time to be creative), (2) focus on a specific area to develop new, creative ideas, (3) develop a variety of alternative ideas and concepts, and then (4) work to improve the best ideas and test them. Formalized methods are much better than hoping an impromptu brainstorming session and its scattergun approach to idea development turns up some “golden nuggets”. There are much more effective and efficient ways to develop new ideas. No one should be satisfied with the status quo, and outdated methods of ideation. It is critical to make ideation a formalized part of any organization.

Successful organizations that focus on continuous improvement and develop a continuous stream of new innovations use formalized ideation and methods to develop and evaluate new ideas. These organizations realize that haphazard methods are not reliable and too risky when market pressures demand ongoing new product and service offerings. There are many methods and tools to develop new ideas. It does not always matter which tool is used, but that everyone in the organization is allowed time to practice, fail, and improve.

Simple techniques such as reading science fiction novels, allowing the mind to fantasize and imagine the future, or using the random word technique which develops new ideas by associating two unrelated words, are great ways to create an army of creative thinkers. All it takes is only 5 or 10 minutes each day.
And make it fun. Develop regular “Shark Tank” events for employees to share new ideas or create awards for the best failures. Whatever is used, should be fun and provide a clear message from the top of the organization that ongoing creative thinking and idea development is as critical to business success. Effective ideation should be valued just as highly as leading quality levels, strong customer loyalty, and disciplined financial controls. Creative thinking should be added to the foundational elements for business success.

Encourage everyone to ask simple questions such as, What if …? and to avoid attacking or prejudging new ideas. Every idea should be developed to see its value, BEFORE it is ignored. New ideas are like sprouts of a great oak tree, they are just the beginning and need care and encouragement to hopefully grow into something tremendous. A push for a large number of alternative ideas and encouraging everyone to develop many different options before narrowing the possibilities, moves an organization away from the limited thinking that typical Western thinking. Limited options such as yes/no, right/wrong, black/white, us/them, etc., should be discouraged just as strongly as waste and theft.

The more employees realize that creativity is encouraged from the top, failure is part of the process, and senior executives are walking the talk, organizations will experience strong morale, high levels of employee satisfaction and loyalty, and most importantly creating a place where the best-and-brightest want to work. And this should not be outsourced.

Leaders need to be trained and then train the organization themselves. For example, Jack Welch was one of GE’s strongest proponents and trainers in Six Sigma. Welch demonstrated to all employees how important Six Sigma was to the organization’s success.

Too often creative thinking is outsourced. This has to stop. New ideas are the lifeblood for long-term success and must be kept within the walls of the firm. Successful companies realize that their sources of differentiation and competitive advantage are from employees, not creative agencies or fancy consultants. For example, Coca-Cola and Kentucky Fried Chicken guard their recipes as tightly as Fort Knox guards the US supply of gold. The ability to develop new ideas should be a source of pride within an organization and not left to “outsiders”.

So, for 2020 I challenge everyone to develop their creative thinking skills and improve themselves, their organizations, and their communities. The only way to get better is with ongoing learning and continual practice. It is up to every leader to provide the training, time, and encouragement for creative thinking. If your organization runs out of ways to outmaneuver competitors, there might not be a future. Never forget the powerhouse brands who are either not with us anymore or have diminished (e.g., Kodak, Nokia, Blockbuster, Pan Am airlines, Atari Inc.). None of us are immune from failure. So, the best insurance is to develop an army of creative thinkers to ensure a strong and prosperous future. Good luck! Rethink How You Think!