Thought Piece: Your innovation strategy should start with a party

Hi there,

The pathway to transformative innovation often begins in unexpected places. At TPC, a century-old Singaporean conglomerate managing 10,000 employees, they follow an unconventional rule by hosting two parties every week. This practice might seem frivolous for a traditional shipping company, yet it has propelled them to the forefront of their industry through successful implementation of advanced technologies and data systems.

The power of celebration in innovation

Having helped bring over 100 startups to reality and guided numerous large companies through digital transformation, I've discovered that successful innovation stems from cultivating the right environment. This environment must balance external pressures with internal psychological safety, creating a space where teams feel empowered to take calculated risks.

The modern business landscape demands constant adaptation. Companies face mounting pressure from technological advancement, market shifts, and emerging competitors. Yet many organizations respond to these challenges by tightening controls and increasing pressure on teams - precisely the opposite of what drives genuine innovation.

Consider JPMorgan Chase & Co., a financial giant that understands the delicate balance between pressure and creativity. They celebrate team efforts through unexpected rewards disconnected from performance metrics. Similarly, Lufthansa conducts innovation award ceremonies, while at Ozmo, they treat even minor feature improvements as significant victories worthy of celebration. The reasoning behind this approach runs deeper than mere employee satisfaction. Innovation inherently involves risk-taking, and risk-taking demands psychological safety. When team members fear punishment for failure, they naturally avoid experimenting with new ideas. By celebrating early and consistently, organizations create an environment where calculated risk-taking becomes not just acceptable but encouraged.

Building the innovation supercycle

Innovation success compounds over time. Each small victory, each learning moment, even each failure contributes to what I call the Innovation Supercycle, a self-propagating system of continuous improvement and adaptation. This cycle begins with creating psychological safety through celebration and grows through structured experimentation and learning.

At my company Future Works, we've implemented a system of rewarding innovation cycles with additional paid time off. This approach might seem counterintuitive, rewarding people with time away when there's so much work to be done. However, it reinforces the idea that innovation requires both intense focus and deliberate rest periods for reflection and rejuvenation.

The celebration aspect becomes particularly crucial in larger organizations where resistance to change typically runs highest. Traditional corporate structures often inadvertently punish risk-taking through rigid performance metrics and standardized processes. Breaking free from these constraints requires deliberate effort to create spaces where experimentation feels safe and natural.

Take Google's approach for example. Despite being one of the world's most valuable companies, they've shut down numerous initiatives, including major ones. Rather than viewing these as failures, Google celebrates the learning opportunities these experiences provide. This mindset has enabled them to maintain their innovative edge while growing to nearly $2 trillion in market value.

Making innovation your holiday tradition

The start of a new year is the best time to reflect on how celebration and innovation intertwine. This period traditionally brings people together. It fosters the exact kind of environment that sparks creative thinking and collaborative problem-solving. Just as people gather to share stories and create memories, organizations can use this time to build stronger bonds that fuel innovation throughout the coming year.

January’s spirit of renewal aligns with the principles of innovative thinking. Innovation at its core is about creating value for customers, colleagues, and communities. By connecting your innovation initiatives to this season of fresh starts, you can tap into a natural source of motivation and purpose.

Consider how traditions often start small and grow over time. Similarly, innovation doesn't require massive immediate changes. You can begin with simple celebrations that acknowledge small victories and learning moments. Over time, these moments build into what I call the Innovation Supercycle. It’s a self-reinforcing system of continuous improvement and adaptation.

The new year reminds us of the importance of reflection. In my experience working with companies across industries, I've found that teams who take time to celebrate their journey - including both successes and learning moments - are better equipped to face future challenges. This period of reflection can become a powerful springboard for the year ahead.

Consider starting with celebrations that go beyond the traditional new year kickoff. Use this time to recognize the bold attempts, the learning experiences, and the small victories that have shaped your team's journey. Create spaces where people feel safe to share their ideas and aspirations for the future.

Remember, the goal isn't just to have seasonal celebrations, it's to establish a year-round culture where innovation thrives through regular recognition and celebration. The new year provides the perfect launching point for such a transformation. In the age of rapid technological advancement, building this culture of celebration and innovation might be the most valuable gift you can give your organization.

By starting your innovation journey with celebration this month, you're not just beginning the year on a high note - you're laying the groundwork for a more adaptable organization in the years to come. After all, in the spirit of new beginnings, the best initiatives are those that keep on giving, and a culture of innovation through celebration is truly the gift that never stops giving.

Much Love,
Matt

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