Continuous innovation is an essential activity of every corporation in the dynamic global marketplace, and determines the ongoing viability of the organization. Employees continually observe, analyze, and mimic the words and actions of the corporate CEO. Every action of a CEO is a form of communication, a `signal' that imparts meaning to employees. To maintain credibility, the words and actions of the CEO must be logically consistent. This article lists ten key methods a CEO should use to actively signal support of innovation.

A few months after Alexander Trotman became CEO of Ford Motor Company in November of 1993, an interesting phenomenon swept the organization. At Ford facilities throughout the world, hundreds of company officials began growing clipped British mustaches just like the one sported by Trotman. For better or worse, employees continually observe, analyze, and mimic the words and actions of the corporate CEO. Every action of a CEO is a form of communication. Harvard Business School Professor, John Kotter, has noted the necessity of alignment between a CEO's pronouncements and his daily actions. He says, "Communication comes in both words and deeds. The latter is generally the most powerful form. Nothing undermines change more than behavior by important individuals that is inconsistent with the verbal communication." Santa Clara University Professors, Jim Kouzes and Barry Posner, likewise say, "The truest test of credible leadership is what leaders pay attention to and what they do. Leaders are measured by the consistency of deeds with words." In a corporation intent on reducing unnecessary costs, a CEO who chooses to fly coach class on a regular airline, immediately sends an unambiguous `signal' to employees that he is very serious about cutting costs. The actions of the CEO convey powerful meaning to employees that is both long-lasting and cumulative. Because employees perceive that the ultimate success of their career requires alignment with the CEO, they mimic the actions of the CEO.

Recent global surveys show more than 90% of CEOs believe corporate innovation will be at the top of their personal agenda for the next five years. Protracted innovation is no longer simply a matter of market share or enhanced profits: Innovation success determines corporate survival. Professor Anthony Davila of Stanford University Graduate School of Business noted, "The only reliable security for any company is the ability to innovate better and longer than competitors", and Matthew May of the University of Toyota is of the view, "Refuse to adapt, and the near future may include the auction block." Former GE CEO, Jack Welch, similarly asserted, "If change is happening on the outside faster than on the inside the end is in sight." In discussing the urgency of innovation, renowned strategist Gary Hamel said, "Denial is tragic. Delay is deadly." James Andrew of the Boston Consulting Group says that innovation is led from the top: "Chief innovator is a role often played by the CEO or chairman." IDEO CEO Tom Kelley noted, "You are not just in charge of today's operations. You are responsible for making sure there is a tomorrow." By his or her actions, the CEO signals the expectation to employees that innovation is essential and every employee must play a role in company innovation efforts. This article lists ten key methods CEOs should use to actively signal support of innovation.

Global CEO Magazine, Global Marketing, Corporate Innovation, Decision Making, Innovation Metrics, Innovation Strategy, Organizational Capabilities, Conventional Wisdom, Organizational Success, Global Survey, Corporate Goals, Corporate Culture, Corporate Resource.