How Place Supports Innovation

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360.steelcase.com

Innovation
WHITE PAPER

How Place Fosters
Innovation
Steelcase WorkSpace Futures

Nearly everyone agrees that innovation is the way to supercharge an
organization to growth. The right places can help make it happen.

Innovation is the “secret innovation happen, especially Of course, human creativity The myth of the
sauce” of business when the pressure to stay has always been and still lone genius achieving
skinny and do more with less remains the bedrock of
success, according to one eureka after
remains strong. Management innovation. But the myth of
Harvard Business Review.1 another in a closed
wants to get the most out the lone genius achieving
Consulting giant McKinsey of every effort and avoid one eureka after another in a room is a cartoonish,
says that a company’s dead-ends, and by definition closed room is a cartoonish, outdated cliché.
ability to innovate has innovation is never a sure outdated cliché. There’s
become “the core driver of thing. At the same time, growing understanding that
growth, performance, and thanks to advances in the real breakthrough comes from
social sciences and the people doing the hard work
valuation.”2
growing influence of design of innovation together, mixing
Today nearly everyone thinking as a problem- their ideas in a bouillabaisse of
agrees that innovation is the solving methodology, more insights and laddered thinking.
only way to supercharge an knowledge is available than People really do need people
organization and shift it to ever before about how to — to deepen the pool of
growth. The ability to see new incubate innovation and possibilities, to wade through
opportunities and harness assure it flourishes.3 the snarl of complexities, to
resources to pursue them is achieve the multifaceted clarity
a fundamental advantage for Although innovation remains of brilliant solutions. Happily,
any organization, from super an often messy and usually together is exactly the way
corporations to start-ups. nonlinear process, deep Generation Y prefers to work,
investigation is pointing and their pervasive influence
But many are uncertain to emerging strategies for on knowledge work is being
about just how to make success. embraced by workers of all

1

How place fosters innovation

I NN OVATI ON SPACES

S PA C E

c u l t u re

innovation

p ro c e s s tech &
supports accommodates
tools

EXPERIENCE

generations, creating a whole commitment to breakthrough of U.S. companies conducted Research Consultants
new set of requirements thinking, and a place that by Steelcase shows that and WorkSpace Futures
for companies that want to supports the work of Gen Y’s new behaviors and teams, in collaboration with
compete and lead.4 innovation.5 workstyles are driving new, architects, designers and
dramatic shifts in knowledge corporations worldwide, are
No wonder successful By closely observing work and the workplace. discovering new insights
organizations look for every innovation in action in various Moreover, these shifts are into the types of spaces that
way possible to help their organizations, Steelcase being embraced rapidly by work hardest to support
creative, collaborative thinkers researchers have identified workers of all generations.6 meaningful interactions, foster
be as productive and high- several critical components Complementing this collaboration, and deliver on
performing as possible. in the emerging science of groundswell from the rank- innovation.
Business leaders are ready innovation. Space is the stage and-fi le who expect they’ll
to invest in resources and for the overall experience be able to be creative at This ongoing research has
implement methods that can and, as such, it needs to work is the conviction among identified specific variables
up an organization’s capacity work hard on all fronts: their leaders that, when that affect how organizations
to innovate. supporting the business it comes to the need for approach innovation. From
processes, positively innovation, two words say different combinations of
Harder-working, next- influencing the culture, and it all: more and faster. This these attributes, the Steelcase
generation workspaces are fully accommodating the paper focuses on the findings researchers identified
a sometimes-overlooked but appropriate technology and of secondary and primary eight different structural
key element for reaching that tools. When seamlessly research on innovation models of innovation
Holy Grail of today. The right integrated, these components conducted by Steelcase, within organizations. Each
kinds of spaces can help comprise a multi-dimensional which included a survey of model has its own space
people collaborate, share “surround sound” that more than 200 corporate real implications, which are
knowledge, learn together, supports successful estate practitioners that was discussed and illustrated.
and build the social networks innovations, one after another. co-sponsored with CoreNet Steelcase continues to
of trustful interaction that Global and observation research how the design
are so critical for solving big Because of the symbiotic studies with clients that and use of worksettings can
challenges. As noted author relationship of all these helped to identify innovation strengthen a company’s
and expert John Seely Brown components, done right the behaviors and processes posture for innovation,
has concluded, the cultures workspace can both inspire in actual work settings. with plans to incorporate
that constantly produce and facilitate innovation. And Adopting methodologies from key findings in its own new
innovation have visionary that’s more important today anthropology and other social innovation center scheduled
leadership, an organizational than ever. A nine-month study sciences, Steelcase’s Applied to open in 2012.

2 | 360.steelcase.com Innovation


Steelcase / CoreNet H OW IMP ORTANT IS INNOVAT ION T O Y OUR OR G AN IZATION?
Global Study HOW IMPORTANT IS INNOVATION TO YOUR ORGANIZ ATION?

40% 38%

33%

30%

MAKING ROOM FOR INNOVATION
19%
The Steelcase/CoreNet Global survey 20%

findings suggest that innovation
processes are established within most
organizations. Only 9% of respondents 10% 8%
said innovation wasn’t at all important
or only somewhat important to their
organization. For most (82%), business 1%
0
strategy is closely tied to innovation.
E x t re m e l y Ve r y Important Somewhat Not
Important Important Important Important
Over half of the respondents (55%) said
they often bring people with diverse
backgrounds together to work on
WORK PROCESS WORK SPACE
innovation projects. A strong majority
of organizations (85%) partner with What percentage of your organization’s What percentage of your organization’s
overall work process is individual vs. overall space supports individual vs.
outside consultants or experts to help group/collaborative work? group/collaborative work?
with innovation, usually for occasional
projects (67%) versus most or all 20% individual 80% individual
projects, and two-thirds have long-term 80% collaborative
80% individual 20% individual 20% collaborative
relationships with external resources. 20% 80%
collaborative collaborative
25%
The survey results indicate, however, 8%
14%
that workplace strategies may not 41%

be keeping pace with organizations’
innovation processes and ambitions. 60%
31% individual 21%
Specifically, 75% say the responsibility 37% 40%
40%
for innovation is spread throughout collaborative
individual
24%
their organization versus residing within 60%
a focused team or department, and collaborative
40% individual 60% individual
60% say their organization’s overall 60% collaborative 40% collaborative
work process is more collaborative
than individual. When asked if their
organization has spaces that support With innovation so important to overall in recent years, pointing to a strong
the innovation process or groups of strategy and organizational success, desire among researchers and readers
people that are working on innovation providing the right spaces to support it to get their heads and arms around a
projects, 69% answered yes. Yet, 65% can fully unlock possibilities, propelling deeper understanding of what innovation
say that most of their overall space both processes and people to faster, really is. Many experts simplify the topic
supports individual versus collaborative stronger innovations. by putting innovation into two major
work, revealing an impeding disconnect categories: sustaining innovation and
between intent and reality, or possibly SMALL STEPS, BIG LEAPS disruptive innovation, a term popularized
misperceptions about what kind of by Clayton M. Christensen, a Harvard
spaces actually support innovation. There are many ways to categorize and Business School professor who authored
An individual work area can’t support describe the process of innovation. One The Innovator’s Dilemma, which has
innovation easily, and a traditional sure evidence is the plethora of books since become recognized as a classic
conference room won’t either. on the topic that have been published examination of the danger of placing too



ORGANIZ ATIONAL ATTRIBUTES AFFECT INNOVATION

Different organizations approach innovation in different ways. Steelcase researchers
discovered different combinations of variable attributes within organizations and,
much emphasis on satisfying customers’
current needs instead of their unstated
or future needs.7
Perspective
Sustaining innovation is an improvement deep | narrow broad | shallow
made to something that already exists.
For example, today’s cell phone Process
determined developing
innovations have made the existing
technology smaller, better, faster, Resources
and increasingly more multipurpose. internal external

Disruptive innovation is a true
Culture
breakthrough that creates a new inclusive exclusive
product or service category, or even
a whole new market — retail medical
DEFINITIONS
clinics, for example, disrupting the
established market for doctor’s services. Perspective — the breadth and range of expertise within the organization
Companies need both disruptive and Process — the degree of control over process within the organization
sustaining innovation to become and Resources — the source of resources, both tangible and intangible
stay leaders.
Culture — the relationship between innovators and the larger organization
Sustaining innovation satisfies customer
needs, sells for higher margins, and
may offer a competitive edge. Disruptive DIFFERENT STROKES Some organizations use just one
innovation ensures competitive depending on the type of project and
Why do some organizations approach
advantages, often for a longer period of the desired outcome.
innovation differently than others? When
time, and builds momentum inside the
it comes to its structure of innovation,
organization and in the marketplace. Each model has its own implications for
each organization is distinguished by key
the type of space that will best support
The Steelcase/CoreNet Global survey attributes or variables across a range of
the organization’s efforts to hatch,
showed that 33% of organizations options (see diagram above.) Any single
incubate, and develop new ideas. Here is
believe that 40-60% of their innovations attribute can be “dialed up or down.”
a description of each model.
are sustaining, and half less than 20% of In combination, they can define different
their innovations are breakthroughs. ways of approaching innovation. 1) In-house marketplace model
If an organization pursues only sustaining MODELS OF INNOVATION
innovations that perpetuate what has In this highly centralized model, a
historically caused them to succeed, they By analyzing different combinations of culture of innovation and concept
unwittingly open the door to disruptive attributes within different organizations, development is enmeshed at every
innovations by competitors that can Steelcase researchers have identified level of the organization. There’s heavy
overtake the market or make it obsolete. eight models of innovation that support cross-pollination of ideas, and each
For example, Apple’s iPod was an both sustaining and disruptive innovation. team and every person is responsible
innovation that disrupted business-as- The placement of the eight on a for innovation. Digital wireless
usual within the recording industry just as spectrum shows the degree to which communications giant Qualcomm is a
community colleges, with their emphasis the innovation efforts are centralized or good example of this model with their
on gaining fast-track, vocation-specific decentralized. Some organizations look internal message, “Whatever it is you
skills, upset the comfortable status quo inward; others look externally for fresh do, our pathway to innovation begins
of four-year colleges. ideas and new ways of solving problems. and ends with you.”



MODELS OF INNOVATION
models of innovation

Decentralized
Centralized

In-house In-house In-house Off-site Partnership Consultancy Network Community
marketplace share model center model model model model model model
model Organization

In-House Marketplace Model Some organizations look inward; others look externally
for fresh ideas and new ways of solving problems.
Organization

This is the model used at Steelcase to 3) In-house center model
Departments
align the research and development
WorkSpace Futures team with product This model of innovation empowers
development and service teams. a distinct group that’s responsible for
innovation within the organization. This
In-House Share Model special team, which has deep industry
expertise, typically employs atypical
processes yet remains part of the larger
Space that works: It’s important to culture and relies on easy access to
create neighborhoods where each organizational resources. Mayo Clinic,
Organization
team can collaborate and share ideas. with its first-of-a-kind SPARC Innovation
A central project area allows information Program, is an example of this model
Organization
to be posted on walls or other vertical of an organization that makes the
surfaces for quick visual updates. innovation process and facility a distinct
Private areas support deep discussions yet integral part of the larger culture.
or brainstorming without interruptions.
The café is a spot to chat it up, serving
In-House Center Model
as both a boundary between teams and
Organization
an attractor for people from other areas
to come over and mingle ideas.
Organization
2) In-house share model Space that works: Each team has a front
porch where public information can be
In this resource-sharing model, members shared. Deeper into the space, more Departments
of multiple specialized groups can align information is revealed. Private areas for
easily on an as-needed basis. Team each team allow them to risk new ideas Departments
members can depend on immediate and work through prototypes without
assistance from each other due to the distracting scrutiny of outsiders.
proximity, and the space supports Enclosed project areas are flexible so
a shared culture among groups that the team can expand and contract as
interact together almost continuously needed. Individual workspaces are on
on both long- and short-term projects. the peripheries of adjacent areas.



Space that works: The team needs a public meetings. Deeper inside are until they’re ready to come together again.
neighborhood for their work that’s linked areas for the guts of innovation: labs, Touchdown spaces and presentation
to an oasis at the center where they project spaces and prototype zones, areas happen in all three spaces.
can chill out and chat. Project spaces as well as alternative worksettings for
are also linked to the oasis, which is big mobile team members. 6) Consultancy model
enough for sharing ideas and prototypes
Communities
5) Partnership model Think of this as innovation experts doing a
among team members. A prototyping Communities
Organizational
Organizational house call by coming into an organization
area creates a boundary that allows the
Sometimes a melding of perspectives is on a project basis. They bring with them
outside to look in as ideas are tested and
the fastest way to breakthrough. Via long- a distinct problem-solving skill set and a
mocked-up in real space.
or short-term alliances, organizations fresh perspective that’s unencumbered
4) Offsite model Individuals purposefully leverage diverse competen-
Institutions
Individuals Institutions by real or perceived organizational
cies, gain access to distinct resources, baggage. They leave behind lasting
For some organizations, getting away
Consultancy Consultancy
transfer knowledge, and share risk and education on the hows of innovation
ational is howOrganizational happens best. In this
innovation cost. That’s why Apple and Organizational
Organizational Nike have that can transform many projects-to-
model, a remote center is where a team teamed up to collaborate on products come. Procter and Gamble is just one
develops, prototypes, and validates such as the running shoe Moire that organization that has worked with IDEO,
innovation initiatives. The team has includes a sensor working with an iPod to the consultancy company, in this model.
a unique culture and the freedom to provide verbal information about distance
pursue distinct values and processes. and speed, as well as music that goes Consultancy Model
At the same time, access to the distance.
organizational resources is a given.
Partnership Model

Offsite Model
Consultancy
Organizational

Organization A
Organization A

Headquarters
Headquarters Innovation
Innovation Center
Center

Organization B
Organization B
Space that works: They may have very
Organization different cultures, but shared space
Organization
allows them to come together to share
information that needs to be supported
in both arenas. Typically, this happens in
Space that works: Keeping in touch Space that works: Mine, yours, and a “guest house” space at the host site.
with “the mother ship” is key for any ours. In this model, each partner has its Here’s where both organizations share
off-site group, so videoconferencing own space, and they share space too ideas, test prototypes, and push for
capabilities are especially important. — physically as well as virtually. Alpha innovation in neutral space that includes
As a self-contained offsite, a welcoming collaboration and testing happens in project zones, social spaces, and
Headquarters
Innovation
“front porch” zone allows the team to shared real estate, then each goes back resource areas. Meanwhile, each has the Center
host visitors. A boundary of enclaves to their own turf to consult with expert backdrop of their separate sites where
provides space for both private and resources and work in specialized labs individual culture prevails.

Organization



7) The network model 8) The community model DESIGNING FOR INNOVATION

“If you build it, they will come” is the It’s all about the need of now, as an Whichever model of innovation an
attitude behind this innovation model autonomous network comes together organization employs, the design of
which invites people to visit and bring to contribute ideas and potentially the space is an important driver that
their ideas with them, joining a company- solve a need quickly together. can improve the speed and outcomes
managed network that typically includes The advantages are a breadth of of innovation efforts. Successful
institutions, organizations, community perspective that’s independent of design can significantly remove
members, or practitioners — or all of any organization combined with a free
barriers and support the work of the
the above. The input process is random and open transfer of knowledge.
talented people that organizations
to allow for the breadth of perspectives rely upon to improve their innovation
Community Model
and unexpected outcomes that come performance. Simply stated, the right
from self-selected contributors who have spaces make innovation work.
a personal motivation to participate.
Lego’s Design by Me website does just Here are some principles to consider
that, and it’s where Lego gets some of when designing spaces for innovation
its best ideas for new kits. activities:

Network Model Make the space flexible

Innovation spaces need to be
Communities reconfigurable to support spontaneity:
Organizational
switches between different work
modes, the dynamic flow of information,
tools that come and go. In addition,
Individuals Institutions organizations may require use of the
Space that works: Although heavily space by multiple project teams,
technology-dependent, the community simultaneously or in sequence, which
Organizational model can also benefit from spaces makes flexibility all the more important.
that bring disparate people together
and support the work they want to •• Consider a mix of fixed and fluid
do. By-reservation or membership architectural elements — i.e.,
spaces for today’s “co-working culture” semi-permanent walls and movable
(practicing alternative work strategies or partitions
self-employed) are laboratories to study
•• Create a flexible hub for large and
the growing phenomenon. Initial findings
Space that works: Various types of small group activities
suggest that a social lounge area is a
hosting events — offsite or online — welcome addition to the predictable •• Provide for user configurability with
allow people to come together and fare of spaces for individual work and mobile furniture
share information that’s then taken meeting rooms. A gallery for art displays
Organization A
back into a team neighborhood within or presentation space is another way •• Consider privacy issues by providing
the organization for further exploration to make the space less impersonal and enclosed spaces for audio and
and refinement. more collaborative. videoconferencing
tion
er

Organization B



Make the space inspiring Make the space a hard-working tool

Creating something new is fundamental to all Hard-working spaces can be just as much
knowledge work, and inspiration is especially of a tool as anything else a team uses to
important for those charged with product innovate. By supporting all the modes of
and service development and other areas work — focusing, collaborating, learning,
of organizational innovation. Stimulating, and socializing — every square foot of an
engaging spaces can jump-start and sustain innovation space can become an efficient
creative thinking. workshop for new ideas.

•• Provide for abundant natural lighting and •• Consider the wall architecture as a way to
views organize and display information in a way
•• Include natural elements and materials that links to group processes
throughout the space •• Make sure active and stored work tools are
•• Consider color carefully in terms of its ability easily accessible
to excite or sooth •• Think of every vertical surface in terms of its
•• Provide settings that are casual, informal, potential for information displays
and comfortable
•• Consider layered storage that can serve
Allow for artwork and meaningful objects double-duty by keeping materials handy and
throughout the space that can support defining zones
individuals and culture
•• Provide a responsive infrastructure that
supports technologies
Make the space collaborative

Innovation teams require a shared mind. Make the space a reflection of culture
Individual insights and memory need to and brand
become group learning and memory — the
An organization’s identity and culture provide
sooner, the better — and the history of the
reassuring context and meaning to innovators,
project needs to be readily discernable to
and space can be a way to authentically
reduce unnecessary backtracking and errors.
underscore important values and processes.
•• Position individual workspaces around group Reflecting brand and culture within a
spaces to maximize visibility space is a way that design can underscore
•• Provide group areas for informal organizational support for innovation.
brainstorming and informal information
•• Reinforce tone and culture authentically in
swaps
the design of the space, recognizing that
•• Plan for extensive dialogue with digital what works for one organization doesn’t
information and intense collaborations automatically work for another
around computers that can involve both
collocated and virtual team members •• Allow for displays of products and other
collective achievements that will inspire pride
•• Provide for vertical content displays with and risk-taking
whiteboards, tackable surfaces, foam core
boards, projection surfaces, etc., that allow •• Allow for team customization and
users to actively affect and engage with personalization to reflect ownership and
information identification



thought starter

Make the space social INNOVATING THE WORKPLACE FOR INNOVATION

Social capital between co-creators is Everyone wants more innovation, yet organizations define
crucial for innovation to occur. It builds it differently in the context of their business processes,
trust, especially important when teams culture, technology, and tools. Supporting and aligning all
are doing intense work. Open and these components can cause innovation to flourish, often
relaxed areas for informal conversations in unforeseen ways within all the patterns of innovation.
are critical components for successful
Space provides places for people — both from within and
innovation spaces.
outside an organization — to come together and invent new
•• Provide convenient access to food solutions for both ordinary and extraordinary challenges.
and beverages As a result, design is emerging as an innovation imperative as
it continues to show how hard-working spaces can reinforce
•• Provide comfortable lounge seating, and align the other organizational components that contribute
café tables, and other furniture that to a company’s ability to invent new solutions.
invites mingling
As organizations work to become or remain relevant and
•• Locate casual collaboration areas in meaningful, rethinking the workplace can support, inspire
close proximity to work areas so it’s and enable innovation. In so doing, it can make a significant
easy to take a break, swap stories, etc. contribution to any organization’s current posture and future
potential for success.
•• Provide welcoming areas for guests
with appropriate views into the space One square foot at a time, more and faster innovation is within
and work in progress every organization’s reach.



ACKNOWLEDGEMENTS ENDNOTES

Steelcase conducts ongoing research on 1
H
arvard Business Review, March 2010
work and the workplace, and this research 2
M
cKinsey Quarterly, Article 2008-12-12
forms the basis of our perspective on
innovation in the workplace. We are especially 3
N
oteworthy books on innovation include:
thankful to our colleagues in the real estate The Sticking Point Solution: 9 Ways to Move
and design communities who share their Your Business from Stagnation to Stunning
insights and experience with us. Several Growth In Tough Economic Times by Jay
individuals contributed thoughtful perspective Abraham
on these issues and helped shape our insights.
Our sincere thanks to: Change by Design by Tim Brown
The Innovator’s Dilemma by Clayton
Tim Brown, IDEO
M. Christensen
Bethany Davis, Nokia
The Power of Pull: How Small Moves, Smartly
Josey Duke, Accenture
Made, Can Set Big Things in Motion by
Dan Johnson, Accenture
John Hagel III, John Seely Brown, and Lang
Jan-Peter Kastelein, YNNO Davison
Lauri Lampson, Planning Design Research
The Design of Business by Roger Martin
Roger Martin, University of Toronto
The Leader’s Guide to Lateral Thinking Skills:
CoreNet Global
Unlocking the Creativity in You and Your
Team by Paul Sloane
4
Steelcase 360 Magazine, August, 2009
5
eeing Differently: Insights on Innovation,
S
John Seely Brown, Harvard Business Review
book series, 1997
6
teelcase 360 Magazine, August, 2009
S
7
he Innovator’s Dilemma, Clayton M.
T
Christensen, Harvard Business School
Press, 1997

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©2013 Steelcase Inc. All rights reserved. All specifications subject to change without notice.
Trademarks used herein are the property of Steelcase Inc. or of their respective owners.

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