Creative innovation leads to profitability
No business, no matter how avant-garde or groundbreaking, can succeed unless its efforts lead to profit.
A recent study revealed that innovation leads to profitability.
“The key variable that predicts successful innovation across these companies is ideation rate: the number of winning ideas generated per 1,000 active users,” an article published by MITSloan explains. “In this context, winning ideas means employee-generated ideas that were finally selected by management for active development and implementation.”
Furthermore, MITSloan writers Dylan Minor, Paul Brook and Josh Bernoff reported finding a “significant correlation between the ideation rate at these companies and growth in profit or net income: The more ideation, the faster they grew.”
At LAVIDGE, where we celebrate our agency as an idea factory, our final value dictates that “our profitability is shared with employees.” This is exhibited in the form of annual profit sharing, participation in the LAVIDGE Employee Stock Ownership Plan, bonuses tied to agency performance, and more.
And when you take care of employees, they take care of clients, who in turn take care of you.