Get All Access for $5/mo

Companies With This Kind of Culture Are More Innovative, More Likely to Grow and Have Happier Teams How building a creative culture across all departments can drive innovation, boost employee engagement and lead to greater business success.

By Itzik Elbaz Edited by Chelsea Brown

Key Takeaways

  • Studies have shown that the most creative companies see better business results, so it's important for leaders to intentionally build a work environment that encourages and supports creative thinking.
  • To build a creative culture, try adopting the "fail fast" methodology. This encourages employees to experiment and develop creative ideas that they can test quickly and learn from.
  • Multi-functional teams solve problems better and faster — with so many different perspectives coming together, it's easier to find creative solutions to challenges.
  • It's also important to invest in the right tools to support creativity in the workplace.

Opinions expressed by Entrepreneur contributors are their own.

Ask anyone to name a creative person, and they'll probably give you a well-known name from the world of the arts: a musician, painter, a filmmaker. And it's true — great artists are all really creative people. However, creativity isn't only in the arts; it's a very important skill for many types of work.

In the world of business, supporting creativity helps your company grow, as it can lead to innovative solutions to on-the-job challenges.

Related: 10 Ways to Build a Creative Company Culture

The importance of creativity across the company

According to a McKinsey study, the most creative companies deliver better business results. This shows how important it is to intentionally build a work environment that encourages and supports creative thinking.

This type of thinking is relevant in nearly every department of a company. For example, in software development, creative problem-solving can lead to innovative features that improve the user experience. In finance, creative approaches can optimize budgeting and streamline processes. In R&D, it can drive efficiencies in code or uncover time-saving solutions to complex problems. In HR, it can lead to new, more effective organizational structures.

By embracing creativity across all functions, you empower all your employees to think outside the box and make a meaningful contribution to the success of the company.

Encouraging experimentation with the "fail fast" methodology

In many workplaces, there's a risk of shutting down creative ideas that challenge the current way of thinking. To encourage a creative environment in your business, I suggest adopting the "fail fast" methodology. This encourages your employees to experiment and come up with creative ideas that they can test quickly. In my experience, a two-week test is an ideal timeframe to quickly get a sense of whether or not an idea has potential.

If an idea works out or shows promise, you can take it further and scale it. On the other hand, if it fails, you've minimized any damage. This method isn't just about reducing risk; it builds a culture where mistakes are seen as opportunities to learn and develop, and creative ideas are supported.

It also shows your employees that you trust them to explore their ideas, giving them a strong sense of ownership and pride in their work and motivating them to keep coming up with new suggestions to improve your business.

In fact, research from BCG shows that organizations promoting a culture of experimentation see higher levels of innovation. Companies like Google have successfully implemented similar methodologies, leading to groundbreaking projects like Gmail. If you give your employees the freedom to explore ideas without fear of failure, you'll set your company up for success — according to data from Deloitte, high-growth brands are more likely to have a creative culture.

Related: 4 Ways to Drive Growth-Unlocking Internal Innovation in Your Organization

The importance of multi-functional teams

In a different study, Deloitte analysts show the link between multi-functional teams and innovative approaches. Bringing people with different backgrounds together increases the perspectives in any discussion and can help you get to creative solutions for business challenges.

I've seen firsthand how multidisciplinary teams solve problems better and faster and also come up with more creative ideas. It's an important part of building that creative culture in your company. This is why, for key projects, I like to work with a squad model, bringing together representatives from different functions: R&D, Product, Marketing, Design and more. With so many different perspectives and areas of expertise around the table, it's easier to find creative solutions to any challenges.

Creating the conditions to support creativity

Other aspects of the work environment also matter. Think about a child — they're naturally creative and love exploring their environments. They enjoy being physically playful but need tools to do so: pens, paper, clay and other arts and crafts materials.

But it's not just true for children. Professional artists also need the right paints, brushes and canvas to fulfill their creative potential. And it's exactly the same for your employees — they need the right tools to support their work. To really encourage creative freedom, you need to invest, whether it's in physical tools (a particular piece of hardware or sound equipment) or digital tools (subscriptions to the most advanced software).

The extent to which you can do this depends on your company's life stage, but from personal experience, I've seen how the right tools make a huge contribution to unleashing creativity.

Related: Why Leaders Must Encourage Their Employees to Explore Their Creativity — and How to Do It

Every company has the potential to be creative

Throughout human history, creative ideas have been the driver of business impact. It doesn't matter what industry you're in, you can embrace creative freedom at your company and use that creativity to help you grow.

But you need to be intentional. Build a culture that celebrates experimentation and welcomes ideas from every team member. Take your projects forward with multi-functional teams, and give those teams the right tools.

Do all this, and you'll empower your employees to approach challenges with fresh insights and innovative solutions. They'll feel more valued, enjoy their work more and be even more motivated. It's a virtuous cycle.

With better and faster problem-solving and happier employees, you'll soon see the business impact.

Itzik Elbaz

Entrepreneur Leadership Network® Contributor

Co-Founder and Co-CEO

Itzik Elbaz is the Co-Founder and Co-CEO of Artlist. Itzik is passionate about building organizations and fostering a culture that drives innovation in technology products. He focuses on creating an environment that encourages creativity, collaboration, and continuous learning.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business Solutions

Windows 11 Pro Hits an All-Time Low Price

Upgrade two compatible PCs with one code at $18.

Business News

Juan Soto's Record-Breaking Contract Is So Huge the 26-Year-Old Could Basically Buy His Own Baseball Team

The Mets just signed MLB superstar Juan Soto to a record-breaking, 15-year, $765 million contract, the largest deal in professional sports history.

Innovation

4 Ways I Carve Out Time to Innovate in My Jam-Packed Schedule

Innovation drives business success, but finding time to innovate while managing daily operations can be challenging. Here are four strategies I use to incorporate "innovation time" into my hectic schedule.

Side Hustle

'I Just Hustled': She Earned More Than $300,000 Wrapping Gifts Last Year — and It All Started With a Side Hustle

When Michelle Hensley lost her husband to cancer, she needed to figure out how to earn an income for her family.