How Leaders Can Use Creativity to Fuel Business Transformation

by Jennifer D. Fisher, writer, Executive Perspectives in The Wall Street Journal, Deloitte Services LP

Emerging technologies combined with cultural, political, and pandemic-related shifts seem to have upended established ways of working. Business leaders likely are searching for innovative solutions to move their organizations forward—but in the pursuit of growth, some companies may have overlooked one of the most powerful capabilities: human creativity.

Yet creativity may be a factor that differentiates leading brands. In its 2023 Global Marketing Trends research, Deloitte found that some leaders of high-growth companies—defined as those with annual revenue growth of 10% or more—are making creativity a priority. Fifty percent of responding brands with high growth strongly agree that creative ideas are essential to long-term success, compared with 42% of negative-growth brands (defined as those with an annual revenue change of a negative amount in the past 12 months).

“The power of innovative thinking should not be underestimated. It can advance businesses, change behavior, and shape entire societies,” said Janet Foutty, a principal with Deloitte Consulting LLP, and the former executive chair of the board for Deloitte US, to a group of leaders gathered at the Cannes Lions International Festival of Creativity in June. “Leaders who harness creativity to transform their organizations can be better positioned to drive growth and solve today’s complex business problems.”

During the discussion, participants shared strategies for harnessing groundbreaking ideas to positively influence not just marketing and advertising but also an organization’s approach to gaining market share, collaborating across functions, and engaging talent.

Infuse Creativity Throughout the Business

Participants agreed that creativity should be a priority at all levels of the organization—and that the board of directors and C-suite can set the tone by encouraging innovative thinking in every function. After all, creativity can be fundamental to solving problems—and challenges can arise in any business arena, including supply chain, finance, manufacturing, or advertising and marketing. “Creativity shouldn’t be an arcane, magical capability that’s restricted to certain functions in the business,” said Andy Sandoz, the global chief creative officer for Deloitte Digital, and a partner at Deloitte UK. “If business leaders make creativity inclusive, everyone can get involved—and innovative thinking can take off.”

It can also be important to make creativity a priority when hiring talent. The Global Marketing Trends research shows that 41% of high-growth brands consider creative and innovative thinking to be one of the most important characteristics employees need for the organization to be successful. In comparison, 33% of negative-growth peers rank creativity as a top attribute for talent. Business leaders can help ensure creativity is prioritized from the outset by defining the qualities that drive innovation and systematically hiring talent with those qualities.

Foster Collaboration and Experimentation

Whether they’re coming from another organization with a remit to drive change or rising from inside the business, creative leaders tend to share a few common qualities, the panelists agreed. First, they tend to collaborate regularly with their C-suite peers and align with them on goals. In fact, the Global Marketing Trends research shows that half of high-growth brands agree their organization promotes cross-functional collaboration, compared with one-third of their negative-growth peers.

“Becoming a more creative organization may require a cultural shift across the business,” said Megan Fath, U.S. chief design officer at Deloitte Digital and a managing director for Deloitte Consulting LLP. “Transformational leaders can catalyze new behaviors by helping the entire enterprise understand the value of divergent thinking.”

Second, creative leaders tend to set expectations at the outset, explaining that transformation is one step along the way to the desired outcome. They also may give their teams the courage and permission to make mistakes. Among high-growth brands, 40% of respondents strongly agree that their organization fosters innovation by encouraging risk-taking and making room for failure, compared with 33% of negative-growth brands.

Lastly, creative leaders tend to understand the connection between creativity and disruption. When organizations look at the companies that are most likely to disrupt existing business models, it’s likely that those competitors are more creative. In today’s fast-paced business environment—where companies should adapt to change with resilience—creativity may be indispensable to maintaining an edge.

“Today, business problems are generally growing in complexity,” Fath said. “To help solve the challenges ahead of us, leaders should embrace a more creative mindset—because logic alone may no longer be enough.”

by Jennifer D. Fisher, writer, Executive Perspectives in The Wall Street Journal, Deloitte Services LP