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5 ways companies can prioritise innovation

2 minute read

With boards of directors being encouraged to better embrace innovation in their businesses, a new report has offered insight on how this can be achieved.

Innovation in the boardroom: Rising to the challenge? is a new report from The Australian Institute of Company Directors (AICD) and the University of Sydney Business School.

Acknowledging that directors play a “crucial role” in driving innovation within their organisations, the report goes one step further, advising directors on how they can best implement a culture of innovation from the top down.

According to AICD managing director and CEO Mark Rigotti, innovation must be embedded “into the DNA of all Australian organisations.”

He believes “a shift in director mindset is needed to meet the increasing challenges posed by issues such as climate change, cyber security risk and economic uncertainties.”

Dr Massimo Garbuio, a co-author of the report and an associate professor with the University of Sydney Business School, has stressed the importance of future-proofing and how innovative practices can assist.

The report has outlined a number of ways boards can prioritise innovation, shared below.

1. Challenge

Challenge the management team and question the status quo.

2. Make innovation business-as-usual

According to the report, directors should ensure innovation is part of business-as-usual, at both a board and organisational level.

3. Have an innovative mindset

Directors must bring an innovation mindset and diversify appointment practices to bring real-world innovation experience into the boardroom, according to the report.

4. Track trends

Directors are advised to track emerging trends, which will enable them to better anticipate impacts and plan for future scenarios.

5. Look outside

The report urged the board to gain external perspectives including from experts, advisory boards and technology committees. This will ensure boards are properly equipped to “stay ahead of the innovation curve.”