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The role of reward in supporting creativity & innovation
21 March 2013


Meeting time: 17.00 - 20.00

Reward has received a bad press when it comes to supporting creativity. With the  help of a senior academic, a case study and member contributions, this meeting built on last year’s conference to raise our understanding of how reward can play its part in helping organisations to innovate.

Companies need to be creative and to innovate if they are to remain competitive in global and fast changing markets. Studies have shown that certain conditions help innovation to flourish. 

It is useful to identify whether organisations seek ground-breaking innovation or incremental product development. Whichever type of innovation is required, it is important to ensure rewards and incentives align with the expressed goal - especially as some academics claim that traditional incentives extinguish intrinsic motivation and may even crush creativity. So, to find out what works best in the real world, we explored the evidence, considered a case study, and discussed the different approaches. Our session was led by Professor Tony Dávila of IESE  Business School and the case study was presented by Simon Linares of Telefonica Digital.


  • What constitutes innovation? Types of innovation and their links to business strategy.
  • Do different types of innovation require different reward practices, especially where results take time to flow through to the bottom line or failure may precede success?
  • What are the key factors to consider when designing reward arrangements for units aiming to be centres of innovation?
  • Case study based on Telefonica Digital.


Please let us know what you thought about the meeting, so we can continue to improve!

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