“Creativity is putting your imagination to work.”
Those are the words of Sir Ken Robinson, the speaker and author who delivered the most popular TED Talk of all time: How Schools Kill Creativity.
Robinson believes that creativity is a practical process that must be ingrained in the day-to-day functions everywhere, from schools to corporations. “Creativity is applied imagination,” he says.
This philosophy of “Creativity as Culture” makes sense in theory, but how can businesses get all their employees to buy in? The answer is education and training.
A key to making this work is encouraging every single employee to contribute. That means creating an open atmosphere where ideas are not limited to creative departments or executives.
Build a Culture of Innovation
In recent years, investors have learned that defining the market value of a firm cannot just be based on finances. GAAP and FASB standards require financial reporting of earnings, cash flow, and profitability – all measures that investors have traditionally examined. But recently, these financial outcomes have been found to predict only about 50% of a firm’s market value. Another challenge is that this financial information has become widely known and shared, meaning that the investor insights it affords are hardly unique.
To gain more insights into a specific firm, investors have shown more interest in intangibles like strategy, brand, innovation, systems integration, collaboration, and so on. Investors have also worked to track and measure these intangibles, even if more subjective. We believe that a next step for investors is to analyze the predictors and drivers of these intangible factors, which means focusing on leadership.
Calculating the Market Value of Leadership