Why Creativity is Important in Business (Competitive Advantage)

In this week’s video, I am going to talk about why creativity is important in business! Watch it now…

VIDEO SUMMARY

Last week, I made a video that business schools should spend more time teaching creativity. And in that video I made a bold claim. I said, “Your ability to harness creativity is directly related to how successful you are in business.” That is not something a lot of people talk about. But I want to dig into this idea more, of why creativity is important in business.

The reason is actually very simple: it is because of competitive advantage. Creativity enables innovation, and innovation creates competitive advantage. I really want people to realize that there is a straight line between creativity and competitive advantage that impacts how much money you make.

So let’s talk a little bit about innovation, because innovation is one of those terms that people throw around a lot. But I have a very specific definition for innovation. Innovation is a new idea. It is imagining something of value that does not exist, and making it a reality. Innovation is really hard, and you have to develop those creative muscles in order to innovate.

Let me share with you some of my own work experience of how this plays out in the real world work environment. This is just anecdotal. This is not based on a scientific study. This is just my experience working with large organizations. If you work in an organization, you will notice that employees tend to fall into three categories. All three categories are good and necessary for an organization. The first category of employee are those who use “Best Practices.” This is going to be the majority of your staff. And these employees are really good at following instructions. I find that most people, in general, are good at following instructions. So if you give employees clearly defined roles, with instruction books with directions on how to accomplish their work tasks, most people do pretty good work. The great thing about living today is that you can find an instruction book of best practices on the internet for pretty much everything. So this is the bulk of your employees. You give them a set of best practices and they deliver great work.

The second category of employee applies “Process improvement.” These employees are good at taking the existing rule book and finding ways to improve what is already there. I am sure you have these employees in your organization. They are really good at saying “this is the process in place, but I have some ideas on how to make it better.”

The third and final category of employee applies “Innovation.” My definition of innovation goes beyond process improvement. These employees are able to imagine what does not exist yet, and makes that a reality. From my experience, this is the smallest category in your workforce, because this is really hard to do. The difference is that process improvement would take an existing product and make it better, whereas innovation would create an entirely new product.

So when you look at your organization, you have best practices, process improvement, and innovation. And these are not exact numbers. This is going to change in every organization. The point is that the more your organization can utilize the higher end of this scale, the more value you can create. Also, the further you progress up the scale, the more you need to use your creative muscles. And the further up the scale, the fewer people in your workforce are going to have the creative skills to apply to these problems.

Why is this important? This scale contributes directly to competitive advantage. The more innovation you have, the easier it is to compete. Just think about it. If all your company did was deliver best practices, it is really tough to compete. Your competitor can just go online, download the same instruction book you are using, and sell the exact same product. You end up in price wars. If you can innovate, and create a brand new product, you can charge whatever price you want, because nobody can compete with you. And if you can keep innovating, you will always be one step ahead of the competition.

And that brings us to the big question. What do you do to build your creative muscles? It is very simple… you get a hobby. That is what art is for. Art teaches you to dream, use your imagination, and build those creative muscles. So I am going to give you a list of some different artistic hobbies you can explore. As I read this list, just see if one of these hobbies peaks your interest.

• Writing
• Poetry
• Singing
• Playing musical instruments
• Dancing
• Martial arts
• Acting
• Stand-up comedy
• Photography
• Drawing
• Painting
• Sculpture
• Ceramics
• Jewelry making
• Sewing
• Knitting
• Interior Decorating
• Gardening
• Metalwork
• Leatherwork
• Carpentry

That is just a few. The idea here is you just pick one and become a master at it. The cool thing is these are all fun things to do. I think they all sound interesting. But if you try to do too many, you are not going to do any of them well. So just pick one of these things and work at it for a decade. Each one of these hobbies is about creating something out of nothing, and that process is what builds your creative muscles. You will also notice that playing video games is not on this list. While there is some creative games out there, I am really focusing on physical activities where you are creating something new.

So that is it. Pick a hobby. Develop your creative muscles. And you will find that you will be able to apply those skills at your work to help you be successful in business. And do not lose focus on what this is all about. The role of business is to be that force that generates progress in society. People look to business to improve the way we do things, create better products, and raise our quality of life. That requires innovation. And that is why creativity is important in business.

Leave a comment down below letting me know what you think!

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Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.