There's a widespread belief, particularly in the finance and high-tech industries, that internal competition fosters innovation. In our surveys, we found that creativity takes a hit when people in a work group compete instead of collaborate. The most creative teams are those that have the confidence to share and debate ideas. But when people compete for recognition, they stop sharing information. And that's destructive because nobody in an organization has all of the information required to put all the pieces of the puzzle together.
Maybe it's only the public-relations departments that believe downsizing and restructuring actually foster creativity. Unfortunately, I've seen too many examples of this kind of spin. One of my favorites is a 1994 letter to shareholders from a major U.S. software company: "A downsizing such as this one is always difficult for employees, but out of tough times can come strength, creativity, and teamwork."
Of course, the opposite is true: Creativity suffers greatly during a downsizing. But it's even worse than many of us realized. We studied a 6,000-person division in a global electronics company during the entire course of a 25% downsizing, which took an incredibly agonizing 18 months. Every single one of the stimulants to creativity in the work environment went down significantly. Anticipation of the downsizing was even worse than the downsizing itself -- people's fear of the unknown led them to basically disengage from the work. More troubling was the fact that even five months after the downsizing, creativity was still down significantly.
Unfortunately, downsizing will remain a fact of life, which means that leaders need to focus on the things that get hit. Communication and collaboration decline significantly. So too does people's sense of freedom and autonomy. Leaders will have to work hard and fast to stabilize the work environment so ideas can flourish.
Taken together, these operating principles for fostering creativity in the workplace might lead you to think that I'm advocating a soft management style. Not true. I'm pushing for a smart management style. My 30 years of research and these 12,000 journal entries suggest that when people are doing work that they love and they're allowed to deeply engage in it -- and when the work itself is valued and recognized -- then creativity will flourish. Even in tough times.
Page 1 | 2 | 3 | creativity all on one page