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Abstract: In today's rapidly evolving business landscape, innovation is critical for organizational success, yet many companies struggle to cultivate truly innovative solutions. Substantial research has revealed that the composition of the innovation team itself is a key factor underlying the success or failure of innovation efforts. Innovative capacity is tied to individual personality traits like openness, risk tolerance, optimism, and self-efficacy, while team dynamics such as diversity of skills and backgrounds, psychological safety, and constructive conflict resolution are also essential for unlocking creative potential. By carefully assessing individual attributes, auditing team composition, and cultivating the optimal conditions for breakthrough thinking, organizations can reenergize stalled innovation initiatives and position themselves for sustainable competitive advantage through transformative innovations, as demonstrated by leading companies like Procter & Gamble, IDEO, and Tesla that have prioritized strategic team design.
In today's rapidly changing business environment, innovation is crucial for organizational success and survival. However, many companies struggle to create truly innovative solutions, products, or services despite dedicating significant time and resources to innovation efforts. Why do some innovation attempts fail while others thrive? A chief reason could lie with who is on the innovation team itself. Research has demonstrated that the composition of an innovation team significantly impacts its ability to develop breakthrough ideas. Team makeup in terms of skills, personalities, diversity of perspectives, and more directly influences the creative process and outcomes. For innovation to flourish within an organization, it is imperative that leadership focuses not just on cultivating an innovative culture and providing innovation tools and training, but also on forming optimal team composition.
Today we will explore how team composition impacts innovation success based on research findings and examine characteristics companies should seek when assembling innovative teams. If innovation efforts are struggling, taking a close look at who makes up the team may offer valuable insights into why and direction for positive change.
Research on Individual Attributes that Drive Innovation
Substantial research has investigated the link between personality traits and innovation. Studies have shown that some personal qualities tend to correlate with greater creative capacity and idea generation.
Openness to Experience
One trait repeatedly found to relate to innovation is openness to experience. Individuals high in openness are intellectually curious, appreciate new ideas and experiences, and are comfortable with complexity and ambiguity (Carmeli, Plaut & Koren, 2017). These attributes enable open individuals to absorb new information and view problems from alternate perspectives that spark novel solutions. Research examining startups in various industries found openness to experience in entrepreneurs correlated with the number of patents as a measure of innovation (Silva, Iannini & Velez, 2012).
Risk Tolerance
Willingness to take risks also appears connected to innovation according to findings. Those comfortable trying new approaches without guarantee of positive outcomes tend to generate more innovative ideas as they are not limited by a fear of failure or uncertainties (Baer & Frese, 2003). However, too much risk tolerance can backfire if it leads to hasty or careless innovations. Moderation is key.
Optimism and Self-Efficacy
Rather than dwelling on potential problems or rejection of ideas, researchers indicate optimists who believe in their ability to succeed (self-efficacy) persist through setbacks better to achieve innovation (Anderson, Potočnik & Zhou, 2014). Optimism paired with self-efficacy allows innovators to envision possibilities rather than limitations. Both attributes seem tied to innovative performance.
Other Factors
Additional traits showing connection to innovation include proactivity, tolerance for ambiguity, visionary thinking, autonomy, and intrinsic motivation (Baer & Oldham, 2006). In general, research suggests a balance of exploration and persistence paired with appropriate risk tolerance distinguishes highly innovative personalities.
Research on Team Dynamics and Diversity for Innovation
While individual qualities matter, team dynamics and diversity can either enable or constrain innovation efforts. Interpersonal skills, cohesion, and varied perspectives all require consideration when forming innovative teams.
Diversity of Skills and Backgrounds
Teams comprising members with diverse skillsets, educational backgrounds, work experiences, and areas of expertise produce substantially more innovative ideas and solutions according to meta-analyses (Hoever et al., 2012). Greater diversity introduces different problem-solving approaches, information sources, and cognitive frameworks that stimulate divergent thinking and novel connections. An IBM study found diverse teams boosted innovation revenues by 19% on average (Herring, 2009).
Psychological Safety and Lack of Judgment
However, diversity alone does not guarantee innovation success. Research indicates high-performing teams also foster psychological safety where team members feel comfortable sharing ideas without fear of ridicule or judgment from others (Edmondson, 1999). For out-of-the-box thinking, an environment accepting of risk and failure proves vital. Google found its most innovative teams maintained psychologically safe spaces open to all perspectives (Project Aristotle, 2016).
Cohesiveness and Conflict Management
Furthermore, creativity benefits from balanced cooperative and competitive behavior where teams work well together yet debate ideas constructively (Tjosvold, 1998). Effective conflict resolution mechanisms allow productive disagreements that facilitate greater conceptual breakthroughs. Teams need cohesive bonds yet ability to welcome disparate thinking.
Other Considerations
Additional factors like leader approachability, tenure diversity, network range, and workload balance across team members also influence innovative capacity in interaction with core skills and safe dynamics according to contextual research (Pirola-Merlo & Mann, 2004). Fundamentally, inclusion and constructive interaction optimize team innovation potential.
Putting Research into Practice - Case Examples
How can organizations apply these research-based findings on innovative personalities and team dynamics? Below are examples of industries that saw innovation transformations by focusing on team makeup:
P&G Connect+Develop
Struggling with new product success rates, Procter & Gamble launched the external Open Innovation Connect+Develop program pairing employees with outside experts like scientists and entrepreneurs on pioneering projects. Teams tackled challenges with diversity of perspectives and no preconceptions, freeing creativity. This approach revitalized innovation at P&G leading to hit consumer products in beauty, home, and healthcare categories.
IDEO Design Thinking Approach
IDEO famously employs multidisciplinary teams comprising a spectrum of vocations, age groups, and cultural backgrounds to solve problems through human-centered design thinking. Team diversity feeds creative processes with a wealth of life experiences and vantage points. The methodology pioneered at IDEO ignited user-driven innovations adopted across industries from education to healthcare.
Tesla's Skunkworks Program
Electric vehicle pioneer Tesla took a page from Lockheed Martin's famed Skunkworks model to foster high-risk projects. Small teams of top engineers and technicians operate with autonomy and flexibility separate from bureaucracy to rapidly create prototypes. Flat structures free of red tape empower experimentation and risk-taking impossible in traditional corporate silos, accelerating vehicle development.
Recommendations for Optimizing Innovation Teams
For organizations seeking to catalyze innovation, a close examination of current team composition represents an opportunity for positive transformation:
Assess personality traits - Evaluate if teams comprise an ideal mix of openness, risk tolerance, optimism, self-efficacy and other attributes conducive to creative thinking. Address any gaps.
Audit skills and backgrounds - Ensure diversity across domains, industries, demographics and more bringing varied problem-solving lenses. Supplement as needed.
Cultivate psychological safety - Develop inclusive cultures where all voices feel heard without judgment to enable risk-taking. Conduct listening surveys.
Enable autonomy - Empower teams with flexibility and resources to experiment freely and rapidly prototype solutions. Limit bureaucratic controls.
Train conflict management - Equip teams to constructively debate ideas and resolve disputes amicably to maximize conceptual blending.
Implement rotations - Consider rotating members between projects periodically to prevent insights from stagnating. Foster cross-pollination.
By reflecting on findings regarding innovative traits and group dynamics, organizations can refine team makeup to better support breakthrough thinking. With investment in the right composition, innovation potential will dramatically increase.
Conclusion
In today's competitive landscape, fostering a culture of continuous innovation proves critical for long-term success. However, simply wishing for innovations or allocating budgets does not guarantee novel solutions will materialize. A core reason many attempts disappoint could stem from an oversight of who exactly makes up the innovation teams charged with this mission-critical work.
Substantial research demonstrates individuals' personality traits correlate with creative ability, and team dynamics like diversity of perspectives, psychological safety and cohesiveness powerfully impact the process and results of idea generation. To optimize conditions for innovation, organizations must look beyond overarching programs and infrastructure to how teams themselves are formed. Careful consideration of each member's skills and attributes combined with an inclusive and flexible team environment can unleash full creative talents.
By auditing current teams against research-based best practices and adjusting composition as needed, companies stand to catalyze a step-change in innovations. With the right mix of innovator dispositions and positive synergies among members, even greater conceptual breakthroughs become possible. If innovation efforts feel stuck, examining who populates the teams driving this work offers a practical starting point for progress. Focusing on optimal team makeup holds promise to reenergize any stalled initiative and better position firms for sustainable competitive advantage.
References
Baer, M., & Frese, M. (2003). Innovation is not enough: Climates for initiative and psychological safety, process innovations, and firm performance. Journal of Organizational Behavior, 24(1), 45–68. https://doi.org/10.1002/job.179
Baer, M., & Oldham, G. R. (2006). The curvilinear relation between experienced creative time pressure and creativity: Moderating effects of openness to experience and support for creativity. Journal of Applied Psychology, 91(4), 963–970. https://doi.org/10.1037/0021-9010.91.4.963
Carmeli, A., Plaut, D. E., & Koren, O. R. (2017). The importance of creative personalities within teams: A multilevel investigation. British Journal of Management, 28(1), 94–112. https://doi.org/10.1111/1467-8551.12188
Edmondson, A. (1999). Psychological safety and learning behavior in work teams. Administrative Science Quarterly, 44(2), 350–383. https://doi.org/10.2307/2666999
Herring, C. (2009). Does diversity pay?: Race, gender, and the business case for diversity. American Sociological Review, 74(2), 208–224. https://doi.org/10.1177/000312240907400203
Hoever, I. J., van Knippenberg, D., van Ginkel, W. P., & Barkema, H. G. (2012). Fostering team creativity: Perspective taking as key to unlocking diversity's potential. Journal of Applied Psychology, 97(5), 982–996. https://doi.org/10.1037/a0029159
Pirola-Merlo, A., & Mann, L. (2004). The relationship between individual creativity and team creativity: Aggregating across people and time. Journal of Organizational Behavior: The International Journal of Industrial, Occupational and Organizational Psychology and Behavior, 25(2), 235–257. https://doi.org/10.1002/job.240
Silva, M. K., Iannini, M. L., & Velez, C. E. (2012). Personality traits and innovation: An analysis of small businesses' owners. International Journal of Innovation Science, 4(3), 163-174. https://doi.org/10.1260/1757-2223.4.3.163
Tjosvold, D. (1998). Cooperative and competitive goal approach to conflict: Accomplishments and challenges. Applied Psychology, 47(3), 285–313. https://doi.org/10.1111/j.1464-0597.1998.tb00026.x
Additional Reading
Westover, J. H. (2024). Optimizing Organizations: Reinvention through People, Adapted Mindsets, and the Dynamics of Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.3
Westover, J. H. (2024). Reinventing Leadership: People-Centered Strategies for Empowering Organizational Change. HCI Academic Press. doi.org/10.70175/hclpress.2024.4
Westover, J. H. (2024). Cultivating Engagement: Mastering Inclusive Leadership, Culture Change, and Data-Informed Decision Making. HCI Academic Press. doi.org/10.70175/hclpress.2024.5
Westover, J. H. (2024). Energizing Innovation: Inspiring Peak Performance through Talent, Culture, and Growth. HCI Academic Press. doi.org/10.70175/hclpress.2024.6
Westover, J. H. (2024). Championing Performance: Aligning Organizational and Employee Trust, Purpose, and Well-Being. HCI Academic Press. doi.org/10.70175/hclpress.2024.7
Citation: Westover, J. H. (2024). Workforce Evolution: Strategies for Adapting to Changing Human Capital Needs. HCI Academic Press. doi.org/10.70175/hclpress.2024.8
Westover, J. H. (2024). Navigating Change: Keys to Organizational Agility, Innovation, and Impact. HCI Academic Press. doi.org/10.70175/hclpress.2024.11
Westover, J. H. (2024). Inspiring Purpose: Leading People and Unlocking Human Capacity in the Workplace. HCI Academic Press. doi.org/10.70175/hclpress.2024.12
Jonathan H. Westover, PhD is Chief Academic & Learning Officer (HCI Academy); Chair/Professor, Organizational Leadership (UVU); OD Consultant (Human Capital Innovations). Read Jonathan Westover's executive profile here.
Suggested Citation: Westover, J. H. (2024). Does Your Team Have What it Takes? Examining Team Composition for Innovation Success. Human Capital Leadership Review, 16(2). doi.org/10.70175/hclreview.2020.16.2.11
