,GettingtoEqual2019:Creatingaculturethatdrivesinnovation,EQUALITY=INNOVATION,Innovationequalssurvival.Itswelldocumentedthatinthisageofwidespreaddisruption,companiesmustinnovatecontinuously,creatingnewmarkets,experiences,products,services,contentorprocesses.So how can leaders encourage innovation? Its morethan recruiting the brightest minds. While having thebest talent is clearly an asset, people need the rightculture to flourish.Accenturehasfoundthatacultureofequalitythesamekindofworkplaceenvironmentthathelpseveryoneadvancetohigherpositionsisapowerfulmultiplierofinnovationandgrowth.,This means that building a culture of equality(measured by the 40 specific workplace factorsAccenture research identified last year) is not just anethical imperative, but a business priority.If organizations want to thrive, they have to “get toequal.”The power of a workplace culture of equality to driveemployees innovation mindsetor their willingnessand ability to innovateis strong. It has more impactthan age or gender and leads to an increase ininnovation mindset in all industries and all countries.In fact, employees innovation mindset is six timeshigher in the most-equal cultures than in the least-equal ones.Innovation also equals economic potential. Amongthe more than 18,000 employees in 27 countries,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,2,Thesecrettoinnovation?Yourworkplaceculture.,surveyed, we found that people are more willing andable to innovate in faster-growing economies and ingeographies with higher labor-productivity growth.And the stakes are enormous:AccenturecalculatesthatglobalgrossdomesticproductwouldincreasebyuptoUS$8trillionby2028ifinnovationmindsetinallcountrieswereraisedby10percent.No matter who or where they are, if people feel asense of belonging and are valued by their employersfor their unique contributions, perspectives andcircumstances, they are empowered to innovatemore.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,3,Whatisacultureofequality?,A culture of equality is one wheremost of the 40 factors that influenceadvancement at work are present.Where more of these are present,employees are more likely toadvance and thrive. Weve groupedthese factors, which were identifiedin last years Getting to Equalresearch, WhenSheRises,WeAllRise, into three pillars:,SEE FULL LIST IN APPENDIX,EmpoweringEnvironmentOnethattrustsemployees,respectsindividualsandoffersthefreedomtobecreativeandtotrainandworkflexibly.,BoldLeadershipA diverse leadershipteam that sets,shares andmeasures equalitytargets openly.,ComprehensiveActionPolicies and practicesthat are family-friendly, support allgenders and are bias-free in attracting andretaining people.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,4,Innovationmindsetisanewwaytomeasureanindividualsabilityandwillingnesstoinnovate.Itisenabledbysixkeyelementswhicharebasedonextensivesources,includingacademicandbusinessresearchandAccenture-owneddiagnostictoolsandthoughtleadership.,Whatisaninnovationmindset?,Thesixelementsofaninnovationmindset:Purpose Resources Collaboration,Alignmentaround andsupport for thepurpose of theorganization.AutonomyBeing shown aclear mandate forchangeandbeing trusted tofollow through.,Having the tools,time andincentivesnecessary toinnovate.InspirationTapping intoinspiration frombeyond theorganization.,Working withotherdepartments or influid, cross-function teams.ExperimentationExperimenting withnew ideas quicklywithout fear offailure.,Wesurveyedemployeesabouttheirexperiencewiththesesixelementsintheirworkplaces,e.g.,weaskedabouttheextenttowhich“Iamencouragedtolookforinspirationoutsidemyorganization”(Inspiration)or“Thepurposeoftheorganizationmakesmeproudtoworkhere”(Purpose).Themorestronglyapersonagreedthattheseelementsapply,thehighertheirinnovationmindsetscore.Usinganeconometricmodel,wewerethenabletoshowhowaninnovationmindsetwouldchangeifpeopleworkedinmore-equalcultures:ascultureimproves,innovationmindsetimproves.Forevery10percentimprovementinculturefactors,innovationmindsetincreasesby10.6percent.Thechangeisunderpinnedbyallthreepillarsofourworkplaceculture-of-equalityfactors,butitstheempowermentfactorsthathavethestrongestimpact.GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION5,One example of a company committed toandbenefiting froma culture of equality is Mastercard.Its stock soared over 35 percent last year, and thecompany is growing rapidly here and abroad as itfocuses on ushering in a cashless society. MastercardPresident and CEO Ajay Banga leads with acompelling metaphor: “I will create the feeling of myhand at your back, not in your face, and then youshould run with it. When youre on a level playing field,you can win what youre capable of winningand youdeserve every single win that you get.”“Diversity is built into the core of what we do,”Banga says. Indeed, the company boasts twice thenumber of women in leadership as other companiesin the S&P 500.,Wereinanindustrywheretechnologyandinnovationflowaroundyouallthetime.Ifyousurroundyourselfwithpeoplewholooklikeyou,walklikeyou,talklikeyou,wenttothesameschoolsasyouandhadthesameexperiences,youllhavetheverysameblindspots.Youllmissthesametrends,curvesintheroadandopportunities.”Ajay Banga, President and CEO,Mastercard,Astrongcaseformixingbusinessandculture.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,6,Banga cultivates a bright, diverse workforce, buthes also looking for something he calls a highD.Q.Decency Quotient.“We want a winning culture with decency at itscore.” For Banga, decency is about being there foremployees and engendering trust between them.Trust, he says, breeds innovation: “If you wantthings to happen, everyone has got to be open andtrusting.”Bangas leadership philosophy is validated by thenew Accenture research: When employees work inmore-equal cultures, theyre much more likely tohave a stronger innovation mindset.In fact, in the most-equal cultures, employeesinnovation mindset is six times higher than in theleast-equal ones.,MOSTEQUAL,Innovationmindsetissixtimeshigherinthemost-equalculturesthanintheleast-equalones.6x,LEASTEQUAL,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,7,Employeesinthemost-equalculturesseefewerbarrierstoinnovating.Percent of respondents who answered “Nothingstops me from innovating.”,21%TYPICAL,40%MOSTEQUAL,7%LEASTEQUAL,But even companies that have some, but not most,of the culture-of-equality factors could gain a greatdeal from being more like the best: An innovationmindset is twice as high in the most-equalcompanies than in typical ones. Its a powerfulincentive for these organizations to take the leapfrom “ok” to “truly equal.”What else do employees in most-equal cultureshave in common with one another? For one thing,they see fewer barriers to innovating at work. Andtheyre also less afraid to fail.,Cultures power to unleash innovation is blind toindustry, country and various workforcedemographics. Among those surveyed, peopleacross all genders, sexual identities, ages andethnicities show a stronger innovation mindset inmore-equal workplace cultures.,Against every factor we tested, culture wins.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,8,Employeesinthemost-equalculturesarelessafraidtofail.Percentofrespondentswhoanswered“agree”and“stronglyagree.”,IsometimesfailwhenIinnovate,Iamnotafraidtofailinthepursuitofinnovation,75%,85%,56%,57%,41%,36%,MostEqual,Typical,LeastEqual,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,9,DIVERSITYISACRITICALBUILDINGBLOCK,Acultureofequalityisamultiplier.,Organizations know that fostering diversitytheextent to which members of a companysworkforce, including the leadership team, differfrom each other in terms of age, ability, ethnicity,gender, gender identity or expression, religion orsexual orientationis important.Diversity remains a critical building block tounleashing innovation. However, a culture ofequality is an essential multiplier to help maximizeinnovation. While the impact of diversity factorsalone on an innovation mindset is significant, it ismuch higher when combined with a culture ofequality. In the most-equal and diverse cultures, aninnovation mindset is 11 times greater than in theleast-equal and diverse cultures. For the purpose ofthis research, we defined diversity factors as,follows: a diverse leadership team as well as teamsthroughout the organization that are diverse acrossgender, age, industry/organizational/culturalbackgrounds.While companies might be hitting their “numbers”in terms of diversity, they might not be building atrue culture of equality. A culture of equality, whichoffers an Empowering Environment, BoldLeadership and Comprehensive Action, enablespeople from all backgrounds to succeed.Thats because in a culture of equality, people aretruly valued for their differences and free to be whothey are. Theyre not just there to check a boxtheyre empowered to contribute.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,11,Diversitypositivelyinfluencesaninnovationmindset,andequalityisthemultiplier.Thecombinedeffectofculture-of-equalityanddiversityfactorsoninnovationmindset.MOST-EQUALANDDIVERSECULTURES11XGREATERLEAST-EQUALANDDIVERSECULTURES,Equalitydrivesinnovation:Procter&GambleOne of Procter & Gambles priorities is creating aculture that empowers all employees to “perform attheir peak” to help lead the innovation, brand-building and digital transformation of their industry.To achieve this, company leadership has rolled outprograms dedicated to achieving equalrepresentation of women at every level and armingemployees with the skills and experiences theyneed to bring disruptive ideas to the table. Theseinclude their Womens Accelerator Program andAthena in Actioninitiatives that engage high-potential women at critical career points to preparethem for senior roles. Additionally, the companysIntentionally Inclusive Leadership Training programteaches employees how to identify and overcomebias. As one of the worlds largest advertisers, P&Galso leverages its voice in advertising and media totackle bias, spark conversations and promoteequality through campaigns such as Always#LikeAGirl, Ariel #ShareTheLoad and Gillettes WeBelieve.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,12,ALEADER-EMPLOYEE,INNOVATIONDISCONNECT,76%,Accenture research shows the strength of theinnovation-culture connection. How are peopleperceiving the link between workplace environmentand innovation today?Nearly everyone wantsand needsto innovate.Ninety-five percent of business leaders see innovationas vital to competitiveness and business viability, and91 percent of employees want to be innovative.But while 76 percent of leaders say they regularlyempower employees to be innovative, only 42 percentof employees agree.,Businessleaderssaytheyempoweremployeestoinnovatebutemployeesarelesslikelytoagree.Business leaders who say they empoweremployees to innovate,42%,Employees who feel empowered toinnovate,Why such a disconnect? It seems that leadersmistakenly believe that some encourage innovationmore than they actually do. For instance, theyoverestimate financial rewards (which are neverthelessstill important) and underestimate purpose as amotivator to innovate.GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION14,10.6%,Whenitcomestodrivinginnovation,increasingpayisconsiderablylesseffectivethanbolsteringamore-equalculture.Percent increase in innovation mindset of a 10% increase inpay vs. a 10% increase in workplace culture factors.Workplaceculture factorsAverage pay0.25%,In fact, the impact of improving culture on innovationmindset is 42 times greater than the impact ofincreasing salary.Leaders value prospective employees educationalbackgrounds, but its not enough to hire peoplewith impressive résumés.Having employees with an advanced degree or whohave studied a STEM subject at college has a lesspowerful impact on workers willingness and abilityto innovate than culture factors do.Leaders should bridge the innovation gap byconcentrating on a culture of equality.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,15,Equalitydrivesinnovation:Microsoft,Overthepastfiveyears,Microsofthassetaboutreinventingitselfandisonceagainoneofthemostvaluablecompaniesintheworldtoday.Thisre-emergencehasmanifestedindifferentways,includingastrategicshifttowardcloudcomputing.Butthisresurgencewouldnotbeoccurringifitwerentforthestrengthofitsevolvingculture,whichunderpinseverythingthecompanyisdoingtoday.Thiscultureevolutionisgroundedinthefundamentalbeliefthatinclusionthroughouttheorganization,fromexecutivesandmanagerstoemployeesaroundtheworld,istablestakesforinnovation.ItmeansthateveryemployeebetheirbestselfatworkandapplyagrowthmindsettohelpMicrosoftbemoreresponsivetotheneedsofbothcustomersandemployees.Thiscanbeseenineverythingfromthecompanys“corepriority”oninclusionforallemployees;topostersandsignagethatencouragepeopletoinviteinnewideasandfostercreativity;toMicrosofts“OutsideIn”program,inwhichluminariesandthoughtleadersfromallwalksoflifeareinvitedtothecompanysRedmondcampustomeetwithemployees;toa,monthlyall-companyQ&AwithCEOSatyaNadellaandhisleadershipteam.Employeesareencouragedtotakeanactiveroleworkingwiththeirmanagerstochartthecareerpaththatisrightforthem,andmanagersinturnaregiventoolsandtrainingthathelpthembebetterleadersfortheirteams.ThisevolvingculturecanperhapsbestbeseenduringMicrosoftsOneWeekevent,whenemployeesfromaroundtheworldcometogethereachJulyforaweekofcollaboration,partnershipandlearningopportunities.Theeventishighlightedbyathree-dayHackathonwherethousandsofemployeesworkonsmallteamscreatingnewtechnologysolutionsandproductsmanyofwhicharedesignedforsocialgood.Microsoftsshiftfroma“knowitall”culturetoa“learnitall”culturehasinvitedanentirelynewworldofpotentialforthecompany,producinggame-changinginnovationsandamoreempatheticworkplace.FromitsaugmentedrealityHoloLenstoartificialintelligenceforthevisuallyimpaired,Microsoftismakingtheworldabetterplace.ButitstartedwithmakingMicrosoftabettercompanyfirst.,GETTINGTOEQUAL2019:CREATINGACULTURETHATDRIVESINNOVATION,16,EQUALITY=EMPOWERMENT,What is it about a culture of equality that mattersmost to innovation?Again, a culture of equality is anchored by threepillars: an Empowering Environment (one that trustsemployees, respects individuals and offers freedomto be creative and to train and work flexibly), BoldLeadership (a diverse leadership team that sets,shares and measures equality targets openly), andComprehensive Action (policies and practices thatare family-friendly, support all genders and are bias-free in attracting and retaining people).It turns out that of those three, an EmpoweringEnvironment is by far the most important when itcomes to enabling innovation. In fact, eight of the10 strongest factors underpinning innovation areabout empowerment.,