This article explains why it has become imperative for organizations to be innovative in their approach to business. The intensification of competition mandates that organizations either innovate or perish. In order to innovate, the organizational culture must provide the appropriate environment for creation of new ideas, be able to tolerate risks, ambiguity and failures.

Think of the most innovative companies in the world and some of the names that come to the mind are 3M, General Electric, Procter & Gamble, Apple Computer, Toyota Motor, Google, BMW, Gillette, Nokia, Dell, Intel, and several other blue chip companies (Hof et al., 2004; Sullivan, 2005). Most of these companies are also regularly included in the Fortune 500 and Fortune 1000 lists. These companies have developed management systems impacting innovation. In fact, continuous innovation forms an integral part of their culture and HR practices.

It is a matter of survival. As simple as that! That's the first imperative for organizations to innovate continuously. A survey conducted by McKinsey and I&TM in 1991 revealed that 37% of top management surveyed reported they wanted to be innovation leaders in their category. By 1999, the figure rose to 95% (Tchong, 2004).

Think of the most innovative companies in the world and some of the names that come to the mind are 3M, General Electric, Procter & Gamble, Apple Computer, Toyota Motor, Google, BMW, Gillette, Nokia, Dell, Intel, and several other blue chip companies (Hof et al., 2004; Sullivan, 2005). Most of these companies are also regularly included in the Fortune 500 and Fortune 1000 lists. These companies have developed management systems impacting innovation. In fact, continuous innovation forms an integral part of their culture and HR practices.

Global CEO Magazine, Organizational Culture, Management Systems, HR practices, Organizational Culture, Organizational Structures, Knowledge Acquisition, Decision-Making Process, Mergers and Acquisitions, M&As, Business Innovation Consortium, Virtual Innovation Agency, Corporate Governance System, Consumer Web Products.