Bureaucracy biggest barrier to innovation
Jun 10 2011
Red tape is a concern among respondents
More than three quarters of business executives think bureaucracy within organisations is the biggest barrier to innovation, finds research.
According to a survey by London Business School of 650 business executives, 77 per cent say that improving incentives, reducing red tape and promoting greater flexibility in the business environment is key to stimulating entrepreneurship.
Speaking at their ninth annual Global Leadership Summit, London Business School Dean Andrew Likerman said, ‘Entrepreneurship and innovation are the key drivers of growth for both business and the economy in normal times. They are crucial right now in creating jobs to help economies emerge from the financial crisis.’
According to the poll, relying on employee promotions or other incentives is not enough to spur new ideas. When asked how you reward or incentivise innovative behaviour, two thirds (66 per cent) say it should be done by creating a culture of innovation, inviting individuals to contribute and share ideas.
Some 80 per cent of respondents believe CEOs are key to driving innovation within organisations, but mainly by providing top-level support rather than being the source.
Almost three quarters (73 per cent) feel businesses can innovate if they empower teams to develop innovation outside existing organisational structures.
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