BSBSTR501 Student Guide

STUDENT
GUIDE
BSBSTR501
ESTABLISH INNOVATIVE
WORK ENVIRONMENTS
BSBSTR501 Establish innovative work environments | 2
First published 2021
Version 1.0
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Contents
Overview 4
Topic 1: Innovative work practices 5
Topic 2: Creating an innovative environment 14
Topic 3: Implementing an innovative work environment 24
Topic 4: Sharing and evaluating innovation 30

Overview
The Student Guide should be used in conjunction with the recommended reading and any further
course notes or activities given by the trainer/assessor.
Application of the unit

This unit describes the skills and knowledge required to create an environment that enables and
supports practice which focuses on a holistic approach to the integration of innovation across all
areas of work practice.
The unit applies to individuals working in leadership or management roles in any industry or
community context. The individual could be employed by the organisation, but may also be an
external contractor, the leader of a cross organisation team or of a self-formed team of individuals.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Learning goals
Learning goals include:
 You are able to establish work practices that support innovation.
 You are able to create an innovative environment using collaboration and available resources.
 You are able to implement an innovative work environment through encouragement, risk
taking and supporting others.
 You are able to share information, knowledge and skills and evaluate innovative ideas and the
work environment.

Topic 1: Innovative work practices
Before we begin talking about how to create an environment that supports and encourages
innovative practices, we need to break down innovation.
What is innovation?
Innovation is about creating and implementing new ideas or
improved ways of doing things. Innovation can be a catalyst for
change and improvements in businesses and how they operate.
Innovation in organisation can enable a business to adapt and
grow in the marketplace, remaining competitive and unique.
Innovation starts at the top it needs the support of employees,
teams, leaders and managers so that the vision can be integrated
across all areas of work practices.
Some of the main concepts for innovation are:
Collaboration Ideation
Implementation and value creation.

Image by Sunbeam
Photography on Unsplash
There are a range of innovation theories that support innovators to implement new system
innovations. They fall under four categories: sustaining, disruptive, incremental and radical.
Following are two common theories used today.
Disruptive Innovation Model

Clayton Christensen introduced the concept of disruptive innovation in 1995. Disruptive Innovation
is a new idea that is implemented that creates a new market or network that disrupts or changes an
existing market.
Activity: Watch
Watch the following video on disruptive innovation.

Video: https://www.youtube.com/watch?v=aMsvWmvTmxw (02:03)
Write down your key takeaways.

Diffusion of Innovation Theory: The ‘S’ Curve
The diffusion of innovation theory was introduced in 1962 by E.M. Rogers. The theory explains the
stages people adopt the implementation of ideas, and as a result, the idea becomes widespread
(diffused). The theory involves five stages, that takes the idea into becoming a widespread
implementation.
Activity: Watch
Watch the following video on the diffusion of innovation theory.

Video: https://www.youtube.com/watch?v=NiNoNYLBabA (03:35)
Activity: Read
Read the following article on important innovation theories:

https://www.ideatovalue.com/inno/nickskillicorn/2017/07/15-most-important-
innovation-theories-your-company-should-be-using/
 Which ones do you think would be beneficial to your organisation?
Innovation in context
Innovation in the workplace is about introducing new ideas, generating creativity, inspiring
employees, promoting collaboration; it is also about achieving the mission and vision of an
organisation through leadership and motivation.
The context for innovation in the workplace, therefore, relates to a business’s core values and
objectives, the broader environment and the value and benefit of innovative ideas and projects.
The core business values of an organisation can lead innovation through a shared belief and
alignment of common principles.
Innovative system goals and objectives are designed to support the organisation to create and
improve efficiency, productivity and overall profitability. Innovative system goals and objectives
should set clear expectations of what the business aim to achieve.
The broader environmental context relates to factors external to an organisation such as:
 Technological developments provide opportunities for organisations. This may lead to a work
team working out how they can incorporate the technology into the team and remain
innovative. E.g. energy efficient light bulbs or power saving equipment.
 The development of new approaches to manufacturing or processing or storing goods provide

opportunities for organisations to implement them in the workplace. E.g. Kaizan Organisations
can learn the new approaches and implement them in the workplace.
 The economy whether it’s in recession or growth impacts innovation as the amount of
investment in innovation is impacted by available finances.

Companies such as Pixar, Riot Games and Ideo have worked towards cultivating organisational
environments that bring out the creativity in their employees. Innovative companies establish and
maintain a creative work environment as one of the three primary core abilities for fostering
innovation.
A strategic plan that includes innovation as an objective and value will support innovative practices
at an overall organisational level. The commitment of the organisation is therefore defined and will
filter through into the activities of the organisation.
So what is the benefit of innovative ideas and projects? Of course, as you can imagine, there are
plenty. Some are outlined below:
Reduced costs through identifying areas of wastage and implementing improved working
practices.
Improved staff retention – staff like to work in innovative and challenging jobs that promote
teamwork and problem solving
Improved image implementing innovative practices to improve reputation.
Increased competitiveness – higher efficiency with lower costs and higher quality products
Proactive approach to business – the business model is continually matching changing

conditions
Greater attraction of new customers by improving existing, or offering new, products or

services or entering new markets.
Stakeholders
Identifying the relevant stakeholders can be key to establishing successful innovative work
environments.
People are one of the best resources for
fostering innovation, they can identify
opportunities to improve, come up with
new concepts and bounce around new
ideas with each other.
Stakeholders are those people who hold
an interest can be affected or affect an
organisation’s vision, actions and
objectives for innovation. For example
employees, managers or a board.
These are the people that you need on
board to establish an innovative work
Image by Michael Dziedzic on Unsplash
environment.

Organisational objectives and practices
Setting goals and objectives is about ensuring the organisation is connecting the way it does
things, with measurable results. It provides clear expectations and a way to evaluate how well the
innovative environment is working. These can be both long term and short-term objectives that an
organisation would like to accomplish.
The objectives of an organisation are identifiable goals to which all organisational activities are
directed.
A strategic plan that includes innovation as an objective and value will support innovative practices
at an overall organisational level. The commitment of the organisation is therefore defined and will
filter through into the activities of the organisation.
An organisation’s strategic plan outlines where the company is going, so that everyone is working
with the same information toward the same goal. It helps to ascertain what the organisation is,
exactly what it does, and why it does it, focusing on optimising future potential.
An innovation strategy can also provide a clear and structured process for innovation throughout
the organisation ensuring it is fostered and implemented.
Objectives should be SMART (Specific, Measurable, Attainable, Relevant and Timely). For
example, an organisational objective could be to become 75% resource sustainable by 2024.
The practices that the organisation carries out should then contribute to reaching that goal.
Organisational practices relate to the behaviours and actions of employees that translate the
values and ideals in their culture into practical terms.
An organisation can use its policies and procedures, leadership and management, systems and
processes, structure, performance management, communications, technology and recruitment and
selection to direct employees.
An example of an organisational practice could be the way in which employees are trained and
developed within their role.
You will need to identify the organisational objectives and practices in order to plan for innovation.
Working conditions
In order to have an innovative work environment, you need to evaluate the current working
conditions to determine the practices that can cultivate an organisational climate to foster the
innovation.
The working environment refers to working conditions as well as the policies and procedures that
support the way in which employees are supported and guided. This can include:
 Physical  Furniture, fixtures and  Remuneration

environmental fittings
 Overtime
conditions
 Hours of work
 Flexible working hours
 Ergonomics
 Rest periods
 Work-life balance
 Work schedules options

 Social events
 Study leave
 Rewards
 Inclusivity.

So, if an organisation provides the right conditions and environment, it can allow for innovative
practices to be implemented. For example, by providing rest breaks, flexible working hours, work-
life balance options and rewards; you can implement innovation by:
Not overloading staff with work
Providing autonomy
Fostering trust and openness
Providing creative thinking time
Allowing for humour, positivity and a fun environment
Organisational policies and procedures may relate to recruitment and selection or workplace health
and safety. For example by providing work-life balance options, rest breaks and flexible working
hours you are not overloading staff with work, giving them some freedom, time to think and be
creative.
Resources
What organisational resources do you need for innovation? The most common resources are
people, equipment, money, and time.
If an organisation is wanting to establish an innovative work environment, then these resources will
need to be specifically allocated.
People Managers to lead innovation, teams to make it happen.

Using recruitment to support an innovative environment (having a diverse
workforce).
Equipment This can be technology available or materials and equipment that need
purchasing. Books, software, subscriptions, games, furniture or activity
equipment.
Money Funds that can be set aside for the resources such as employee’s time, buying
material, equipment or technology, training.
Time This is the time given to employees to allow for innovation; time away from
their normal work role to think, design, create and share ideas and knowledge.
Teams
Firstly, let’s look at the different leadership styles, as this can affect the way in which a person
approaches their managerial role and this can then have a knock on effect on their approach to
innovation and teamwork. Generally, the most common are:
Democratic Autocratic Laissez faire
See the activity below for a description of each leadership style.
Activity: Read
Read more on the leadership styles:

https://blog.hubspot.com/marketing/leadership-styles
 Which leadership style are you?
The following assessment identifies what type of leadership style you possess:
https://hbr.org/2015/06/assessment-whats-your-leadership-style
An effective leader will have the following leadership skills:
 Excellent interpersonal and communication skills.
 Written and verbal communications skills.
 Negotiation, conflict management.
 Innovative and creative thinking.
Activity: Brainstorm and discuss
Divide into groups of three or four and hold a group discussion on the following
questions:
1. How can leaders develop a relationship of trust with others?
2. Discuss your experience as a leader, or following a leader? What made them a
good or bad leader?
3. Discuss the words Integrity, respect and empathy in the workplace.

Your trainer//assessor will facilitate a discussion.
A positive innovative leader can have the following qualities:
 Envisioning the path for great ideas to  A powerful imagination

become a reality
 Confidence in a team
 Promoting a culture of innovation
 Able to communicate vision
 Leading creativity by example
 Generating enthusiasm
 Being a creative thinker
 Motivational
 Recognising great ideas
 Inspirational
 Excellent communication skills
 A team leader.
A leader that hinders innovation can fall in the following categories:
 Having unconscious neglect, being careless and impulsive.
 Being overprotective and secretive of their own knowledge.
 Having too much ego.
Conversely, an innovative leader will show creativity, vision and share ideas and knowledge.
Importantly they will have the qualities as listed above to motivate people around them.
The approach to management and leadership will therefore vary, dependent on the type of
leadership style, skills and qualities of the person it can either hinder or support motivation.
Building teams to support innovation can provide focus and meaning to the process; demonstrating
commitment and leadership; and go toward creating an environment that enables engagement,
creativity and collaboration.
Building and leading a team that will maximise opportunities for innovation will require
encouragement, trust, honesty, and inspiration.
Activity: Watch
Effective Team Management.

Video: https://www.youtube.com/watch?v=Gp39lhald4k (07:21)
 Think of some buzz words that relate to teamwork.
 What is your own experience of working as part of a team?
This clip explains teamwork simply.

Video: https://www.youtube.com/watch?v=OpzH1hPvf38 (03:51)

A leader should encourage participation, cooperation, diversity and promote an innovative culture
and foster and develop trust to enable their team to feel empowered in their role and secure in their
decisions.
You can build a team through effective communication, building rapport, fostering strong
relationships, sharing and collaboration and ensuring everyone is working toward a common goal.
As a leader your role to build and lead could include:
 team building exercises
 explaining or clarifying policies, procedures, instructions standards, codes of conduct and

other organisational operations
 supporting team members to complete tasks on time
 supporting others if you have completed your own tasks ahead of schedule
 assisting with problem solving
 providing encouragement
 providing constructive feedback to other team members when appropriate
 sharing and updating information
 allocating mentors or coaches for support and training if required
 using rewards such as positive praise, bonuses, vouchers or extra lunch time break.
Activity: Research
Research the stages of development that a team will go through as it develops over
time (forming, storming, norming, performing and adjourning).
Provide a brief overview of each stage.
Activity: Quiz
Undertake this quiz to see how trustworthy would be as a leader:

https://www.success.com/are-you-a-trustworthy-leader/
Your trainer/assessor will facilitate a discussion.

When you are maximising opportunities for innovation in your team you will be allowing individuals
to work independently to create new ideas; encouraging collaboration and brainstorming; using and
maximising peoples strengths, skills and abilities and providing the support and environment to
show creativity and share knowledge.
Build trust and encourage an open environment.
Create and encourage a safe space for sharing ideas.
Understand people's motivation.
Actively listen and encourage others to listen to contribution by others.
Develop self-awareness and understanding of the behaviours and attitudes of

others.
Provide constructive and appropriate feedback.
Encourage debate and discussion.

Topic 2: Creating an innovative environment
Once you have established the work practices, evaluated work conditions, identified resources and
built a team ready for innovation…the next step is to create the environment so that it is conducive
to innovation.
The impacts of changes

As with anything that is introduced, you need to firstly evaluate any impacts of the changing work
environment. Impacts can include both positive and negative aspects of innovation. Some
examples are:
 the improvement of processes, policies and procedures
 barriers to change
 employees may need to be let go or may decide to leave
 improved performance
 it can lead to stress, negativity and mistrust if not effectively managed
 better working conditions
 different workplace practices.
There are a variety of ways to help foster innovation in an organisation, change management is
one of these methods. Change management is a process that can be used to support
organisational changes or changes that occur through implementing innovations.
A change management process essentially means:
Identifying major operational changes.
Reviewing and prioritising change requirements.
Consulting with others including staff.
Consulting with specialists and experts who can assist with change.

The common key phases of a change management process include:
 Acknowledge the need for change, including understanding the situation and developing a
shared understanding within the organisation.
 Communicate the need for change and involve staff. This is of vital importance to ensure staff
involvement and so that they are more likely to embrace the change.
 Develop and document the change management plan.
 Implement the change management plan as documented in the plan.
 Evaluate progress along the way as well as final outcomes.
There a number of theories and models associated with organisational change; some of these
models are discussed below.
Force-field analysis model

The force-field analysis model is of interest in relation to organisational change. The technique was
developed by Kurt Lewin in the 1940s for use in his work as a social psychologist. Today, force
field analysis is a structured technique used by businesses to make difficult decisions.
Essentially the model provides an overview of the change problems that need to be addressed by a
business, separating factors into forces which drive a proposed change and those which resist.
Driving forces create the change and then allow it to occur. A resistance force works against the
change, such as employees.
When conducting a force field analysis you can then identify these issues and work around them to
create a balance if possible.
Activity: Read
Read more about the force-field analysis model at:

http://www.mindtools.com/pages/article/newTED_06.htm
Take any notes to summarise what you have read and keep for future reference.
Burke-Litwin Model
The Burke-Litwin model shows the various drivers of change and ranks them in terms of
importance. The model is expressed diagrammatically, with the most important factors featuring at
the top. The lower layers become gradually less important. The model argues that all of the factors
are integrated (to greater or lesser degrees). Therefore, a change in one will eventually affect all
other factors.
Burke-Litwin believes environmental factors to be the most important driver for change. Indeed,
most change can be traced back to external drivers for change.
Important elements of organisational success, such as mission and strategy, leadership and
organisational culture, are often impacted by changes that originate outside the organisation.

Kotter’s 8-step Change Model
The purpose of the model is about how successful organisational change actually happens and
answers the question of how to go beyond simply getting the message across to truly changing
people’s behaviour.
Steps in the model are as follows:
1. Creating a sense of urgency
It is important to help stakeholders see the need for change by using a bold, aspirational
opportunity statement that communicates the importance of acting immediately.
2. Building a guiding coalition
There needs to be a strong coalition of effective people to guide, coordinate and communicate
activities.
3. Forming a strategic vision and initiative
Clarify how the future will be different from the past and how you can make that future a reality
through initiatives linked directly to the vision.
4. Enlisting a volunteer army
Large-scale change can only occur when massive numbers of people rally around a common
opportunity.
They must be bought-in and urgent to drive change – moving in the same direction.
5. Enabling action by removing barriers
Removing barriers is an important part of a change process. For example, the removal of
inefficient processes and hierarchies allows the action to occur to assist in change.
6. Generating short term wins
Short-term wins are important in moving towards achieving the overall visions.
7. Sustaining acceleration
Press harder after the first successes. Increasing credibility can improve systems, structures
and policies. Be relentless with initiating change after change until the vision is a reality.
8. Instituting change
Articulate the connections between the new behaviours and organizational success, making
sure they continue until they become strong enough to replace old habits.
(Source: https://www.kotterinternational.com/8-steps-process-for-leading-change/)
Activity: Watch and read
Watch the following brief introduction to change management.

Video: https://www.youtube.com/watch?v=3Jk6clmMycI (09:00)
Read the article on the change management process:
https://www.prosci.com/resources/articles/change-management-process

Creative thinking
When you work with stakeholders to develop ideas for enhancing the work environment you are
consulting, asking for feedback, creating open communication and building upon developing an
innovative workplace.
Collaboration fosters innovation! You can do this by creating an environment for:
 regular brainstorming sessions
 seeking feedback, ideas and thoughts of team members
 cultivating a can-do attitude to motivate employees
 using technology such as collaboration software or video conferencing
 allowing new ways of working such as huddle room spaces for quiet and collaborative use of
space
 creating natural meeting experiences and removing technological barriers.
There are different ways to stimulate creative thinking and generate ideas. Some common
approaches are:
 brainstorming
 mind mapping
 high thinking
 tangential thinking
 software programs
 workshops
 focus groups
 open discussion
 desk research
 using online community for research
 visualisation/graphical aids
 lateral thinking games
 trigger words
 vision circles
 word salads
 morphological analysis.
Image by Magnet.me on Unsplash

Activity: Read
Read about Edward de Bono’s six thinking hats:

http://www.debonogroup.com/six_thinking_hats.php
Some good ideas for fostering creativity can be found on this website:
http://www.opencolleges.edu.au/informed/features/30-things-you-can-do-to-promote-
creativity-in-your-classroom/
Take notes and keep for future reference.
Mind Maps
Mind maps are used to map out the basic ideas from a central
problem. They are used in brainstorming sessions or
individuals use them to visualize ideas.
The basic problem is written in the centre and then the ideas
are branched out from it in order to arrive at a number of
different possible approaches.
This provides a spatially visual overview, which can be easier
to then understand or approach
Activity: Watch
Learn how to use mind mapping.

Video: https://www.mindtools.com/pages/article/newISS_01.htm (02:55)
Take down any key takeaways.
Brainstorming
Brainstorming is a process used for generating creative ideas/solutions. It uses a free-for-all group
discussion. All members of the group are encouraged to participate, suggesting as many ideas as
possible – no holds barred. It is only after the brainstorming session that the issues/ideas raised
should then be analysed and discussed in further detail.
Activity: Read
See further information about brainstorming:

https://www.atlassian.com/work-management/project-management/project-
planning/brainstorming

Daydreaming
Daydreaming allows your thinking and thoughts to start with an idea and be free from directed
focus, enabling you to come up with random associations and ideas that may or may not relate to
the original concept.
Innovative work practices

Innovative work practices are constantly changing with the everchanging world, along with
technology and people. Some current practices include:
 Using collaboration and technology to share knowledge
 Developing a creative culture through organisational values and leadership
 Tapping into ideas from employees’ collective knowledge
 Using training to promote creativity and creative thinking
 Rewarding innovation with engaging and autonomous work
 Recruiting talent that is creative and forward thinking.
Resources for the work environment

The resources that a team may need to enhance their work environment could be technology,
books, games, materials and equipment specific to design, up to date software and hardware
devices, work areas or even plants.
Activity: Brainstorm
Divide into your team group.

1. Hold a meeting and brainstorm: Ways to improve the innovative environment
2. Be creative and innovative in your meeting.
3. Consider the area that you are conducting your meeting. Is it an innovative
environment? What could be improved?
Activity: Develop
Firstly, read through the article: Collaboration co-efficient: three keys to empower
workplace collaboration.
https://blogs.windows.com/devices/2016/09/20/the-collaboration-coefficient-three-
keys-to-empower-workplace-collaboration/

Watch the video embedded in the article: Digital transformation: The Collaboration
Coefficient.
In your own words provide a brief overview of the article and the video, comment on
how you feel about using technology for collaboration. Would you embrace it? What
would be the advantages and disadvantages (for you)?
Research two resource that could be used for enhancing a work environment.
Provide a ‘best practice’ list for creating a collaborative work culture.
Innovation is a communicative, human-centred process and as such the physical environment can
relate to innovation. The characteristics of innovative space should be:
 collaboration enabling
 comfortable and aesthetically pleasing
 professional, smart, modern, resource plenty
 value reflecting
 modifiable
 accessible.
Workspaces/office design and environment take into consideration the effective use of space,
lighting, furniture, fixtures, fittings, ergonomics as well as a flexibility in layout, comfort and
connection to nature. Collaborative spaces inspire ideas!
Activity: Read
Read the following article on how the physical workspace impacts the employee
experience:
https://www.forbes.com/sites/jacobmorgan/2015/12/03/how-the-physical-workspace-
impacts-the-employee-experience/#16b46080779e
Activity: Develop
Firstly, read about the Amazon workspace spheres:

https://www.theverge.com/2018/1/29/16944706/amazon-mini-rainforest-workspace-
spheres-seattle

 How do you think this will benefit employees with regard to being innovative?
 How do you think that this promotes innovation in the workplace?
Research two other innovative workspace environments by companies who are

promoting innovation. The following link should help:
http://www.marginalia.online/20-innovative-workspaces/
Provide an overview and the way in which the work environment supports innovation.
Submit in a professionally typed document. Your trainer/assessor will provide you
with feedback.
If you are creating an innovative environment then you may need to help your team to adapt and
perform in the new work environment. This is to ensure that the changes are a success and to
support individuals through the process.
This could mean training in a new software, supporting a team member to use a new device,
encouraging team members to take time out in the collaboration space.
They will need motivating, encouraging, support, resources and leadership!
Challenges and barriers to innovation

Unfortunately, there can be challenges and barriers toward innovative work practices.
The critical barriers to businesses implementing innovations, often relate to the mindsets, attitude
thinking skills and behaviours of the individuals and teams operating within an organisation.
As you can see from the list below, there are common challenges and barriers to innovation:
 existing assumptions and preconceptions
 fear of change
 a lack of shared vision purpose or values within your organisation and shared vision purpose
or values within the organisation
 Short-term thinking from the leaders driving the organisation
 poor environmental space or working practices
 business resource shortage, such as not having the personnel, budget or time or ability to
identify and implement required changes
 leaders micromanaging staff not enabling creative thinking processes and creative idea
generation
 continuous improvement not being supported in teams
 communication breakdowns
 management not valuing and or promoting Innovation internally

 teams focusing on the success or failure of the past and not focusing on the potential
Innovations in the future
 unwillingness to acknowledge and learn from past from failures
 no employee recognition programs for continuous improvement business systems
 lack of understanding of customer needs (internal and external)
 organisational hierarchy challenges are over management i.e. too many steps to take before a
decision of changes made
 no Innovation creative thinking training or experience of key personnel
 the lack of skilful brainstorming facilitation or solution-focused meetings
 teams primarily focused on left-brain thinking (critical thinking) rather than right-brain thinking
(creative and innovative thinking).
Luckily, there are ways to overcome these challenges and barriers.

For example, as we have discussed previously, using rewards, incentives and celebrating
innovation success, using leaders that promote and model an innovative culture, using coaching
and learning to support, motive and encourage creative thinking and managing the space and
physical environment in which people can feel motivated and encouraged to be innovative.
Imagine working for this company:
We reward your ideas and creativity by providing time out of your daily role to collaborate
with your colleagues in a comfortable space.
Come up with a bright idea? It will be published in our weekly blog!
We lead by example! Need help innovating? We will coach and provide training to support
your creative thinking!
We have flexible working practices.
We use technology to support collaboration.
We reward your ideas and creativity by providing time out of your daily role to collaborate
with your colleagues in a comfortable space.
Activity: Watch
Both Apple and Google have shown to have exemplary working conditions that
reflect and encourage innovative practice, allowing for rigorous evaluation of
innovative ideas.
Watch the following videos:
Working at Apple.

Video: https://www.youtube.com/watch?v=w4lDHrD_Izo (06:48)
Working at Google.
Video: https://www.youtube.com/watch?v=9No-FiEInLA (05:50)
Note down any key takeaways.
 List down all the working conditions that promote innovation.
 How do they lead innovation by example (aside from being in the technology
industry)?
 How do they reward and celebrate innovation? (You may need to do a quick
Google.)

Topic 3: Implementing an innovative work
environment
To implement an innovative work environment a leader will need to provide encouragement to

innovate, reinforce the values and objectives of the organisation, not be afraid to take risks and
ensure that any successful ideas can be celebrated.
Providing encouragement
As a leader of innovation, it will be your responsibility to be at the forefront of encouraging
creativity, collaboration and positive workplace relationships.
To maximise creativity there are a number of things you could do:
 Foster innovation by encouraging risk taking, effective communication, leading change and
allocating time for creative thinking and invention.
 Use teams to collaborate and brainstorm, but also allow people to work independently to
create new ideas.
 Understand the behaviours, motivations and personalities of your team and maximise their
strengths, skills and abilities.
 Actively reduce negative effects arising from conflict or stress.
 Conduct regular innovative meetings or spaces that people can use to innovate, share and
collaborate.
 Provide the resources that people need to innovate and collaborate.
Furthermore, for innovation to be successful, employees and or stakeholders need to be motivated!

As a leader it will be your role to create an environment that enables, supports and promotes
innovation and so you must also be the motivator and role model.
A big factor in motivation is having an innovative culture; another is respect and recognition. There
is also the physical environment, workplace practices, managerial approach, the use of technology
and collaboration. It can motivate and inspire employees having an organisation that is proactive in
fostering and promoting creativity.
Tools that can be used to motivate individuals:
 Creating a comfortable and inspiring workplace.
 Using engagement through feedback, praise, recognition and validating work and ideas
 Using mentors.
 Celebrating achievements.
 Providing rewards and incentives.
 Having an open-door policy to encourage open communication, collaboration and promote

trust through sharing of ideas and thoughts openly.

Activity: Read
Read the following article:

https://www.forbes.com/sites/glennllopis/2014/04/07/5-ways-leaders-enable-
innovation-in-their-teams/#7170ebc28c4c
 What did Elon Musk do to keep his innovation alive?
 How are most innovations created?
 What are five things leaders can do to encourage innovation?
Activity: Watch
Watch the following video on how great leaders inspire action.

Video: https://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action#t-
442722 (17:58)
Take any notes to summarise what you have watched.
Reinforcing value!
An organisation’s strategic plan which promotes innovation as a key business process, can create
an innovative and creative culture.
As a leader, promoting the value of innovation through the vision and objectives of the organisation
will ultimately align the business goals and at the same time, it can be used to provide
reinforcement.
For example, the vision of an organisation may be to be the Employee of choice, this could be
promoted through a work-life balance policy.
A vision statement will provide the strategic direction of a company and describes what they want
to achieve in the future. Objectives are the specific measurable steps that can be taken to meet
those goals, as discussed in Topic 1.
To reinforce value, a leader can:
 encourage an innovative culture
 employee people who understand the vision of the business
 lead and encourage employees
 support innovative ideas through encouragement and feedback.

Activity: Read
An overview of Strategic Planning – Vision, Mission, Objectives, Strategies and

Action Plans:
https://ctb.ku.edu/en/table-of-contents/structure/strategic-planning/vmosa/main
Taking risks!
It’s not often that you can be told to take risks. However, for innovation to be successful, it may be
necessary to take some amount of risk. It should be undertaken with some boundaries and
limitations such as the amount of money that can be lost or how much risk can be tolerated.
The biggest reason why a leader may not take risks is because of the fear of failure. Sometimes,
however, in order to innovate you may make mistakes and you may fail.
Its learning from the mistakes as to not repeat them and not to be afraid of failure that makes a
good innovative leader.
It will depend on a managers leadership style, as covered in Topic 2, how well employees are
managed and supported and how much autonomy is given to risk take.
A risk can come from changes in work practices, dealing with unforeseen impacts of innovative
ideas, resources or money spent.
It is important that if an innovation is deemed risky, then measures and processes are put in place
to minimise the risk. For example, undertaking a project in phases and only funding each phase
until one has been successfully completed.
To take risks but reduce the impact you could undertake a risk analysis, find out the impacts and
consequences and develop a risk management strategy to support the risks that may be involved
with the innovation being implemented.
Other strategies:
 Focus on strategic priorities

such as vision, mission and
values.
 Use joint ventures.
 Create prototypes.
 Use grants to alleviate financial

stress.
 Use incremental innovations or

pilots.
 Seek professional advice.

Image by Alex Knight on Unsplash

At Google, innovative teams have timelines of three to four months to prove a concept’s viability.
If the idea they are working on isn’t proven as sufficiently successful in the timeframes given,
teams are disbanded and the project is shelved. Innovative ideas only go forward if they have
demonstrable potential.
How could you be a role model for taking considered risks that will provide
opportunities for innovation? List some ideas!
Activity: Read
To increase innovation, help your team to take smarter risks:

https://www.forbes.com/sites/ronashkenas/2016/03/21/to-increase-innovation-help-
your-team-take-smarter-risks/#7a8450ed505d
Celebrating innovation
Celebrating innovation recognises the triumph and should be celebrated!
 Showcase the innovative idea or change/improvement.
 Recognise the talented and creative suggestions and ideas from people.
 Engage employees.
 Shout out to social media.
 Lead by example.
 Reward.
 Boast the innovation amongst internal and external stakeholders, customers, the wider
community, networks and the general public.
Come up with five ideas that you could use to celebrate innovation in a workplace.

Evaluation of ideas
You want to encourage and support your team to evaluate ideas. Evaluation can enable large
numbers of ideas to be reviewed at once and identify the ideas that are the most likely to succeed.
It can be used to understand any risks, identify potential problems and work out ways to reduce or
overcome these. If it is a small organisation with only a few ideas then it just may be a case of
comparing two or three ideas and just selecting the best one. For example:
Select ones most likely Expert help for ideas that are
Identify ideas
to succeed outside of the teams' expertise
If problems exist, outline appropriate actions to take

Identify resources required
to overcome them
However, if it’s a larger

organisation with free-flowing
ideas from a number of
employees then you may need
to use a more structured and
formal process. There are
structured methods used for
evaluation such as:
 SWOT analysis
 Pass-fail evaluation
 Evaluation matrices
 Idea development.
Image by Frederick Medina on Unsplash
Activity: Read
The following article provides further information on evaluation methods:

https://innovationmanagement.se/2008/05/18/how-to-evaluate-ideas/

Activity: Group work
Divide into small groups. This will be your Innovation Team.

Your team is to hold meetings to discuss innovations.
The first meeting should be to discuss working conditions that encourages
innovation. Research and evaluate at least three ideas for innovation. Select one
idea and explain how this could be used in practice.
Watch the following Ted talk on creating innovative physical environments.
Video: https://www.ted.com/talks/tim_brown_on_creativity_and_play (27:51)
Think of two practices that could be used to enhance the physical working
environment for your team. Look around you…what can be changed, modified and
decorated to support your team being innovative? Is it an environment suitable to
create and promote innovation?
Discuss and collaborate with your team about ideas for enhancing the physical work
environment.
 What resources, and equipment would you need to create an innovative

environment?
 Design a workspace that could be used to encourage creativity. You may also
use software to create the design.
 Include the design, fit out and decorations. Ensure the space will also develop
positive workplace relationships.
 You may make assumptions and use innovative methods to come up with ideas.
For example, the budget would be enough to cover reasonable costs, however it
must be relevant and appropriate.
Submit to your trainer/assessor for feedback.
The second meeting is to research and discuss innovative team building exercises
that can be used to motivate and promote innovation. This can relate to a specific
scenario and industry if you wish to provide context.
 Research at least five team building exercises
 The team is to collaborate together to select the best exercise.
 Evaluate if it would be suitable to foster innovation. You may need to repeat this
step until you have found the right exercise.
During the meetings ensure that you use your teamwork skills such as being
receptive to ideas, providing constructive advice, and building a relationship with your
team based on mutual respect and trust.
Your trainer/assessor will allocate time for meetings.

Topic 4: Sharing and evaluating innovation
In this topic we will be looking at how an organisation can share information, knowledge and skills,
create learning opportunities and use opportunities to improve.
Sharing is caring!
It is extremely beneficial to share information, knowledge and skills with the right people. These are
the reasons why:
 It becomes available to all the relevant

people.
 It promotes collaboration and feedback.
 It allows for diversity.
 It promotes an innovative culture,
 It promotes synergy.
 It builds value.
Image by Matt Ridley on Unsplash
You can do this through verbal and written communication. For example, posting information to the
organisation’s intranet, distributing knowledge via meetings or emails and through mentor and
coaching programs to share skills.
As a manager, you will need to create a knowledge sharing culture and lead by example.
B e transparent in com m unication
O rganised m eetings that are scheduled and not inform al for im portant decisions
w here people are unavailable or out of office
E ngage people in conversations
H ave an open door policy
C reate a know ledge base of inform ation
U se technology to enable inform ation gathering and sharing.

Sharing also further promotes the innovative culture.
Activity: Watch
Watch the following videos on knowledge sharing:

Five ways to increase knowledge sharing in your organisation.
Video: https://bloomfire.com/blog/522359-5-ways-to-encourage-knowledge-sharing-
within-your-organization/
Stepping up and sharing ideas in the workplace.
Video: https://drjohnizzo.com/purpose-blog/innovation/sharing-ideas-in-the-
workplace/
Turn knowledge hoarding into knowledge sharing.
Video: https://hrdevelopmentinfo.com/turn-knowledge-hoarding-knowledge-sharing/
Activity: Read
Read the following article:

https://www.learnupon.com/blog/learning-culture/
 What is the meaning of a learning culture?
 Why is it important to have a learning culture?
 What are the first five tips for creating a learning culture?
Learning opportunities
Being able to innovate does not come naturally for a lot of people. Your team will need
encouragement to undertake learning opportunities to develop the necessary skills required to
become an innovative thinker.
A learning and development plan can help to formalise the process of identifying skill gaps \and
provide a clearly structured action plan for developing their skills further. A learning and
development plan should outline and include:
 Learners needs
 Learning objectives
 A range of learning activities to address learning needs and meet objectives
 A schedule for the implementation or attendance of learning activities.

A learning plan can identify skill gaps for employees and provide a clearly structured action plan for
developing their skills further.
Employees can be encouraged to take up learning opportunities through:
 reward and recognition
 personal development satisfaction
 progression in their job
 formal appraisal meetings
 communication of opportunities.

Learning needs can be address by offering both informal and formal learning activities such as:
Training
Formal and informal training can be in a variety of forms, such as internal professional
development courses, external workshops or qualifications, seminars or facilitated hands on
learning activities.
You can also create opportunities where people can learn from the experience of others. Coaching
and mentoring is a common approach used by organisations to support this type of learning.
Helping others to learn can be a rewarding experience and is often used in workplaces to support
new staff or staff that are requiring further training. Providing learning opportunities help to address
any challenges or barriers to innovation. Whether a formal or informal process, an organisation can
provide:
Mentoring
Mentoring is a directive method of instructing an individual based on the prior experience of the
mentor. Mentoring can be a valuable solution as a one-on-one training method.
Coaching
Coaching is a process whereby a coach facilitates and supports a learner to access their own
internal knowledge and existing experience to problems solve and source solutions to the
challenges and experiences they are facing. Coaching is advice and direction free and not suitable
where formal training is required.
A person can be given a mentor or coach for a specific area of learning, which is usually conducted
on the job.
Divide into your Innovation Team. Refer back to the team building exercises.
The team should work together to develop a demonstration to the class on how to
undertake the selected team building exercise. The demonstration should include
instructions, the benefits of the exercise and how it helps to promote innovation and
then a demonstration of the exercise. The focus should be on facilitating and
participating on creating innovative ideas relating to your selected scenario and
industry.
You are sharing information, knowledge and skills so make sure that this is apparent
during the demonstration. You are providing an opportunity where others can learn
from you, so ensure that it is clearly structured and professionally undertaken.
During the demonstration, ensure that you use your teamwork skills such as being
receptive to ideas, providing constructive advice, and building a relationship with your
team based on mutual respect and trust.
Your trainer/assessor will allocate time for preparation and then the demonstrations.

Improvements
There is always room for improvement! Therefore, it is important to seek feedback and respond to
suggestions for improvement from your team.
Seeking suggestions and feedback could be carried out during discussions at team meetings or
through emails, conducting surveys, during collaborative discussions or idea sharing; really any
form of communication that will facilitate and encourage suggestions and feedback.
Providing a framework for seeking and responding to suggestions, improvements and innovations
can provide a process that will foster ideas, build trust and motivate.
For example:
Providing a suggestion box that is opened every fortnight.
Allocating time at innovation meetings to discuss new ideas.
Letting team members know they can email with feedback.
Providing a space on the network to share improvement ideas.
Suggestions should always be considered and feedback provided.
Divide into your Innovation Team. Refer back to the team building exercises.
Hold a meeting to discuss creating a suitable method that could be used to seek and
respond to feedback for the team building exercise. For example, it could be a
survey, you could hold a review meeting or create a post to an online media platform.
Use the method to seek suggestions and improvements from other team members.
Assume that you have received a response from one member of your team already,
that has suggested that the exercise does not take into consideration that some

people just don’t like to play games. How would you respond to this?
Your trainer/assessor will facilitate the meetings and provide feedback.

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BSBSTR501 Establish innovative work environments | 4

Application of the unit

 You are able to establish work practices that support innovation.

BSBSTR501 Establish innovative work environments | 5

Implementation and value creation.

Disruptive Innovation Model

Watch the following video on disruptive innovation.

BSBSTR501 Establish innovative work environments | 6

Watch the following video on the diffusion of innovation theory.

Read the following article on important innovation theories:

 Which ones do you think would be beneficial to your organisation?

 The development of new approaches to manufacturing or processing or storing goods provide

BSBSTR501 Establish innovative work environments | 7

Improved image implementing innovative practices to improve reputation.

Proactive approach to business – the business model is continually matching changing

Greater attraction of new customers by improving existing, or offering new, products or

BSBSTR501 Establish innovative work environments | 8

 Physical  Furniture, fixtures and  Remuneration

BSBSTR501 Establish innovative work environments | 9

BSBSTR501 Establish innovative work environments | 10

Not overloading staff with work

Fostering trust and openness

Providing creative thinking time

Allowing for humour, positivity and a fun environment

People Managers to lead innovation, teams to make it happen.

Democratic Autocratic Laissez faire

See the activity below for a description of each leadership style.

Read more on the leadership styles:

 Which leadership style are you?

An effective leader will have the following leadership skills:

 Excellent interpersonal and communication skills.

 Written and verbal communications skills.

 Negotiation, conflict management.

 Innovative and creative thinking.

Activity: Brainstorm and discuss

BSBSTR501 Establish innovative work environments | 12

A positive innovative leader can have the following qualities:

 Envisioning the path for great ideas to  A powerful imagination

A leader that hinders innovation can fall in the following categories:

 Having unconscious neglect, being careless and impulsive.

 Being overprotective and secretive of their own knowledge.

 Having too much ego.

Effective Team Management.

 Think of some buzz words that relate to teamwork.

 What is your own experience of working as part of a team?

This clip explains teamwork simply.

BSBSTR501 Establish innovative work environments | 13

 team building exercises

 explaining or clarifying policies, procedures, instructions standards, codes of conduct and

 supporting team members to complete tasks on time

 assisting with problem solving

 providing constructive feedback to other team members when appropriate

 sharing and updating information

 allocating mentors or coaches for support and training if required

Undertake this quiz to see how trustworthy would be as a leader:

BSBSTR501 Establish innovative work environments | 14

Build trust and encourage an open environment.

Create and encourage a safe space for sharing ideas.

Understand people's motivation.

Actively listen and encourage others to listen to contribution by others.

Develop self-awareness and understanding of the behaviours and attitudes of

Provide constructive and appropriate feedback.