What Does Implementing Innovative Policies Mean?

by Neil Kokemuller
Innovative policies can help you build a positive, happy workplace.

Innovative policies can help you build a positive, happy workplace.

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Business policies relate to the four elements of management -- planning, organizing, directing and controlling. In particular, they allow you to create structure in carrying out business activities. Policies essentially dictate, or control, how employees perform their jobs. Implementing innovative policies means that you develop and put into effect policies distinct from those of other employers or competitors.

Human Resources

One key area in which many companies implement innovative policies is human resources. Innovative HR policies go against the grain of employer or industry convention. In retail, The Container Store is renowned as a top employer in part because of its innovative policy of paying employees significantly above industry standard pay. The point is to attract and retain top employees that contribute to a better company culture for workers and customers.


Innovation can also become so ingrained in the culture of a company that it becomes synonymous with its brand. In no company is this more evident than in 3M. One of the company's innovative policies is to allocate a certain portion of each employee's work day to brainstorming or idea generation. This culture of innovation contributes to the company's reputation as "The Idea Company." In promoting itself, the company plays on this approach of emphasizing innovative products and solutions.

Customer Relationships

Innovative policies also apply to the way your business interacts with its marketplace. The general philosophy that "the customer is always right" isn't innovative, because many customer-oriented businesses employ it. Some restaurants used innovative pricing strategies to attract customers and public attention during the 2007-2009 recession. Some promoted a "pay what you can" tactic, which allowed customers to order a meal and pay whatever they could afford. The logic was that some customers would pay more to cover those customers who couldn't pay much.

Risks With Innovative Policies

Companies that integrate innovation into their brand and culture can definitely benefit from implementing innovative policies. Companies that typically operate with a conservative approach take on more risks with innovative policies. You could throw off employees who grow accustomed to status quo operations. You could also throw off customers if you try to innovate business policies. If you want to change things up or refresh your brand, innovation is often OK. However, it is potentially more risky.

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