Getting Started: Organizational Structures to Promote Continuous Innovation

Abstract

83% of companies’ view innovation as a top priority, however only 3% are actually ready to translate this priority into actionable results. To enable innovation as a continual integrated enterprise process, senior leadership must first assess the organization’s current status. While this may seem complex, the paper introduces a comprehensive initial assessment methodology that enables organizations to easilyevaluate their innovation readiness across three dimensions: historical innovation performance, organizational architecture, and innovation metrics. The application of artificial intelligence may assist in the initial assessment to include detailed views of the organization’s culture, reward systems, work structures, and information systems. Recognizing that many organizations may lack fundamental innovation structures based on assessment results, the paper proposes two specific initiatives to overcome initial implementation barriers. First, incorporate innovation performance objectives into employee performance plans across all organizational levels—from individual contributors to senior executives—with clearly differentiated responsibilities. Second, institute formal innovation processes with designated process owners, key objectives, specific metrics, and communication channels, overseen by senior leadership with quarterly board reporting. By providing both assessment tools and concrete starting points, this framework offers established organizations a practical pathway to transform innovation aspirations into systematic organizational capabilities, distinguishing between incremental improvements and transformative initiatives with market-dominating potential.

Keywords: Corporate Innovation, Artificial Intelligence, Organizational Structure, STAR Model for Corporate Innovation