What Is Innovation? In today’s fast-changing market, companies must do more than react to customer needs — they must anticipate the future and create solutions that don’t yet exist. The key to survival and long-term success is innovation.
But what is innovation exactly, and how can organizations build it into their culture?
What Is Innovation — Definition and Core Meaning
Innovation is the ability of an individual, team, or entire organization to create and implement new solutions that bring value. These solutions may be products, services, processes, business models, or even ways of working.
Importantly, innovation is not limited to major technological breakthroughs. It also includes small, continuous improvements that enhance efficiency, quality, or customer experience.
Experts emphasize that innovation is not a one-time act of creativity. It is a systematic process — a mindset and a way of working that combines experimentation, learning from failure, and implementing change in practice.
What Is Innovation in Organizational Culture
Within the Organizational Culture Assessment Instrument (OCAI) by Cameron & Quinn, innovation thrives most in companies with a culture of adhocracy and clan:
-
Adhocracy: a flexible, creative environment that values risk-taking and fast decision-making.
-
Clan culture: a collaborative, trust-based environment where people freely share ideas and support each other.
Unfortunately, many companies still operate in hierarchical (rule-driven, highly controlled) or market-oriented (competition and short-term results) cultures. These structures often suppress creativity and experimentation, making it hard for innovation to flourish.
Why Culture Shapes Innovation
-
In hierarchical cultures, new ideas die in layers of approval.
-
In market cultures, the race for immediate results leaves little room to experiment.
-
In adhocracy and clan cultures, people feel safe to test, fail, and learn — the foundation of true innovation.
If an organization wants to innovate, it must start with trust and collaboration. No tool or method can replace that.
What Is Innovation in Lean Management
Innovation is often associated with R&D or startups, but Lean Management shows that it can be systematic and practical in any company.
Key Lean-related approaches that foster innovation include:
-
Toyota Kata — builds scientific thinking through small, controlled experiments.
-
Lean Startup — encourages rapid testing of business hypotheses to reduce risk.
-
Kaizen — creates a culture of daily, incremental improvements.
These methods make innovation a repeatable process, not an occasional event.
Innovation and Scientific Thinking
Real innovation is not just creativity — it’s scientific learning in action. Toyota’s approach shows that progress comes from:
-
Understanding the goal and current condition.
-
Choosing small, testable steps toward improvement.
-
Running experiments, learning, and adapting.
This mindset reduces risk and accelerates the time it takes to move from idea to impact.
How to Build Innovation in Your Organization — Practical Steps
1. Create a Culture of Trust and Collaboration
People need psychological safety to speak up and propose new ideas. Leaders should reward initiative, even if not every idea succeeds.
2. Simplify Decision-Making
Long approval chains kill speed. Give teams autonomy to test and learn quickly.
3. Introduce Scientific Thinking
Use small, measurable experiments (Toyota Kata) to test hypotheses and learn systematically.
4. Develop Frontline Leaders
First-line supervisors shape the daily work environment. When they know how to coach and empower their teams, innovation naturally follows.
5. Combine Lean Tools With Digital Transformation
AI, automation, and modern platforms can supercharge innovation — but only when used strategically to add value.
What Is Innovation in Practice — Key Takeaways
-
What is innovation? It’s the capability to systematically create and implement valuable change.
-
Why does it matter? Because without it, organizations stagnate and lose competitive edge.
-
How to start? Build trust, empower teams, use Lean and scientific thinking to reduce risk.
Innovation isn’t reserved for tech giants or Silicon Valley startups. Every company can innovate — if it creates the right culture and systems.
I am a promoter of Lean Management and the Training Within Industry program. I am a practitioner. I co-create many startups. Since 2015, I have been the CEO of Leantrix - a leading Lean consulting company in Poland, which, starting from 2024, organizes one of the largest conferences dedicated to lean management in Poland - the Lean TWI Summit. Since 2019, I have been the CEO of Do Lean IT OU, a company registered in Estonia that creates the software etwi.io, used by dozens of manufacturing and service companies in Europe and the USA.
