From a spark to a fire: igniting an innovative culture in government

Every year, the APS census results come out, and every year, the same questions arise: Why are innovation metrics low? What can we do about it? Why is it so hard? As someone who has run countless workshops on this topic, I can tell you that innovation is one of the most discussed cultural issues. We talk about its importance, the need to do more with less, and maybe even run an ideas challenge. But then, a convoluted process or cynicism kills it, and it all disappears when everyone gets too busy or jaded.

I used to lead the ‘innovation’ team in a large department. With just 0.5 ASL dedicated to driving innovation in an organisation of 3,000 people, it was a challenge. Back then, innovation was a buzzword, and we had funky innovation labs with fabulous couches popping up everywhere. And then… nothing. Or rather, something very limited to a select few, followed by huge cynicism from everyone else. People love being told to come up with new ideas and implement them without the resources to do their regular jobs, right?

So, what have I learnt from being in the innovation space? A lot. I don’t have a magic wand, but I do know a few key elements that can create a culture of innovation. Many of these leverage Self-Determination Theory, which links to building a culture that increases intrinsic motivation to innovate as part of their daily work because its engaging and energising, not because someone told them to.

1. Define Innovation: This might seem silly, but organisations need to define what innovation means to them. Without a clear definition, it’s hard to get traction. My old department defined it as ‘challenging the status quo and identifying improvements and efficiencies, large or small.’ The UK government has a big focus on innovation across the civil service and they also focus on ‘the one big thing that starts with one small change’.  It doesn’t need to be groundbreaking—borrowing and repackaging ideas from other departments, industries, and countries should be encouraged. Once you have a clear definition – call it out when you see it! Otherwise those small changes can go unnoticed or underestimated.
2. Foster autonomy: Self-Determination Theory suggests that autonomy is key to motivation and engagement. Employees are more likely to innovate when they have control over how they do their work and the freedom to experiment. Reduce bureaucratic barriers, encourage exploration of new ideas, and provide flexibility in how employees approach their work.
3. Encourage mastery: Innovation is linked to learning. Employees need opportunities to develop their skills, test new concepts, and refine their expertise. Promote a “fail-forward” mindset, provide constructive feedback, and encourage cross-departmental knowledge sharing.
4. Promote relatedness: Innovation flourishes when employees feel connected to a broader purpose and trust their colleagues. Break down silos, encourage cross-team collaboration, build trust through transparent communication, and establish external partnerships for fresh perspectives. Psychological safety is critical so that people feel safe to take those interpersonal risks and share new ideas or mistakes that lead to innovations.
5. Subtract first and then add: Excessive red tape can discourage innovation, so look at where the barriers are first and reduce or remove them based on risk tolerance. I learnt the hard way that it didn’t matter how much the Secretary talked about innovation, if people were buried in risk assessments the moment they came up with a new idea. Removing those barriers was key. Only then should you consider what you can add to incentivise the behaviours. While budgets for financial rewards may be limited, provide other meaningful incentives like mentoring, training programs, development opportunities and public recognition.
6. Ensure leadership mommitment: Employees take innovation efforts seriously when leaders actively support them. I’m dubious about the effectiveness of ‘ideas challenges’ or ‘hackathons’ but have seen them work well when senior leaders actively engage throughout the process. Leaders should champion new ideas, provide consistent support and resources, and ensure promising ideas are tested and implemented.
7. Encourage experimentation: Constraints can drive creativity because we must look for ways to do things differently when we need to do more with less. Encourage experimentation where possible and keep reiterating the message that innovation isn’t just about big expensive IT projects – it’s also about all the little tweaks to the processes and systems that guide how we do what we do. Reward both the effort and outcomes of innovation.

Innovation in the public sector can be tricky because of the different levels of accountability and risk when compared to the private sector. The Estimates process can be a big disincentive to taking risks! But if we focus on building a supportive culture that reinforces the need to continuously improve how services are delivered, optimised processes, and policies are implemented, it can become more attainable at all levels.

By fostering autonomy, mastery, and relatedness, public sector organisations can create an environment where employees feel motivated to innovate. With the right culture, leadership commitment, and support structures, innovation can become a sustainable and integral part of your team’s performance.