According to McKinsey study, experimentation fueled by crisis was the primary driver of organic growth during the pandemic. Companies that invested in new technologies, refocused their efforts, and reinvested more resources accelerated faster than other companies.
As the political and economic climate continues to be volatile, organisations are trying to adapt quickly to AI advancements and societal change. Harvard Business Review argues that companies must make experimentation a part of their everyday lives, even if budgets are limited.
Pecan’s recent culture fit for the future research revealed that respondents found it difficult to prioritize innovation and continuous improvements. It is particularly difficult to prioritise innovation and continuous improvement when teams are overloaded with change agendas, environments that are constantly changing and employee turnover is high.
embedding ‘everyday experiments’ in the culture of an organisation is one of three themes that make up a future-fitting culture. A culture of experimentation not only drives growth but also fosters inclusivity, diversity and employee engagement. When colleagues feel appreciated for their contributions, they grow and develop while the organization benefits from rapid value creation. All this without disrupting ‘business-as-usual’ operations.
The key traits of a culture that encourages everyday experimentation in the workplace
What are the foundations of everyday experimentation? We present here three key characteristics uncovered by the Culture Fit for the Future study.
1. Included
In our research, inclusive cultures are those where people are accepted for who they truly are, their uniqueness and their potential. Participation is actively encouraged and diversity is valued.
Effective experimentation requires a variety of perspectives, experiences and ways of thinking. With the right conditions diverse groups can generate more unconventional ideas, and implement them more effectively, than homogenous teams.
2. Agility
Many respondents were surprised at how quickly their organization adapted to the pandemic.
In order for experimentation to have a positive impact on the bottom line, it is important that successful experiments are adopted and integrated efficiently and with skill. Priorities must be renegotiated where necessary to ensure the capacity to deliver. To stop projects no longer required and to focus resources on priorities, a new level of collaboration and challenge based on high trust is needed.
3. Learn more about the Learning Program
In a culture that encourages everyday experimentation, it’s not surprising that a growth and learning mindset is important. Curiosity, emotional intelligence and openness are essential.
In order to adopt a learning mindset, it is important to have the humility necessary to let customer and employee data guide you rather than your own biases or pet projects. Reflecting regularly on what worked and what needed to be changed improves the outcomes of future experiments.
Learn more about creating a culture of learning that encourages curiosity.
Five ways to foster an experimentation culture in your organisation
- What do you mean by “experimentation“? Innovation can often feel like a Research and Development department’s exclusive domain. It is not something any team can participate in. Small improvements can have the same impact as new products and services.
- Establish the strategic context of experimentation. Explain the need for it in relation to your organisation’s mission, values and priorities.
- Share employee and customer data. Help everyone to understand the problem that needs to be solved, so that experiments have a clear focus
- Model experimental mindsets and behaviors. Leaders and managers should work together on innovation, rather than competing within silos. Have the humility to accept mistakes and knowledge gaps, and be open to other people’s ideas.
- Celebrate and reward innovation. Include unsuccessful experiments, while recognising what you learned from them.
Five ways to foster an experimentation culture in teams
- Create routines to encourage regular experimentation. For example, monthly brainstorming or hackathons.
- Involve people who have different opinions and people who represent your target audience. Also, include ‘critical friends who are willing’ to challenge groupthink.
- Change the meeting format. To experiment, change the place where people meet. Ice-breakers can help people think and feel differently.
- Create psychological safety. Mix up your approaches when seeking views and ideas. Make sure people feel valued and are encouraged to think in a different way.
- To avoid overwhelm, be disciplined in deciding which ideas to pursue. Get good at saying “no” or “not yet”. Encourage your employees to review their priorities regularly and eliminate activities that are not adding value.
Exists a culture of experimentation in my organization?
It can be challenging to evaluate your own culture. It may be worthwhile to invest in a third party culture review if innovation and experimentation is critical for growth and sustainability.
These questions can be a good starting point.
- How well-defined is the “line of sight” between everyone’s roles and the organisation’s goals?
- When was the last instance when an employee’s idea from the ‘grassroots’ was implemented?
- How many projects are stopped because the priority has changed?
Pecan offers a Culture Change That Works service to help you create an experimental culture.
