ACHIEVING ORGANIZATIONAL PERFORMANCE THROUGH INNOVATIVE LEADERSHIP
October 4, 2025 2025-10-05 3:12ACHIEVING ORGANIZATIONAL PERFORMANCE THROUGH INNOVATIVE LEADERSHIP
By Dr. Solomon Munyao
Head of Leadership Department – Pan Africa Christian University
Introduction
Innovation is one of the key drivers of organizational performance in both developed as well as in developing countries. As defined by Suparwadi, et al (2024), innovation is a multi-dimensional concept encompassing various aspects such as creativity, entrepreneurship, and technological advancement. In its practical sense, it entails the development of new products, services, processes, or business models that create value for society. Although there is empirical evidence from previous studies to the effect that leadership behaviours play a critical role in innovation and consequently, to organisational performance (Jia & et al, 2018), many organisations, such as the university of Indonesia are strangling with performance issues as a result of lack of innovation that is mostly driven by leaders (Laurret & Mendes, 2019). This paper will therefore present an innovative leadership style as the best-suited approach to bring meaningful transformation in organisations that are operating in a complex and unstable business environment.
Innovation Leadership Theory
The innovation leadership theory was discovered by Maureen Metcalf in 2015 and consists of self-awareness (consciousness), mindset (worldview), resilience (character), strategic system thinking, culture creation, and stakeholder alignment as its main measurable elements (Metcalf & Palmer, 2011). If these leadership elements can contribute to organisational performance, why then is there still a disconnect between leadership, innovation, and performance in organisations? Have the leaders transformed themselves so that they have an innovative mindset, so that they can, in turn, bring innovative transformation in organisations? As Ang’ana clearly puts it, transformation should start from the inside out. This, therefore, means that a leader should first be transformed to have an innovative mentality in order for transformation to be experienced in followers and organisations.
Application of Innovative Leadership
For innovative transformation to happen in organisations, there should exist a link between theory and practice. What leaders know should be applied in an organisational context in innovative ways for performance and growth to be realised. This aspect is emphasised by Apostle Paul to the church at Philippi when he exhorts them to put into practice what they have heard or learned from him (Phi. 4:9, NIV). The same sentiments are echoed by Apostle James when he encourages believers not to be hearers of the word of God only, but instead, do what it says (James 1:22, NIV). This means that the innovative ideas and knowledge that leaders have should be applied in real-life organisational contexts. Knowledge that remains at the meta-cognitive level (theoretical) is not useful until it is applied in a specific context.
Self-Awareness
How then can leaders translate the innovative ideas they have into action while being guided by the innovative leadership framework? First and foremost, they should have what Metcalf and Palmer (2011) call self-awareness. Self-awareness refers to the practice of engaging in self-reflection and achieving clarity of insight (Grunberg, 2020). Self-aware individuals possess high levels of emotional intelligence; self-regulate behaviours, cognition, and emotions more effectively depending on the situation; and continually evaluate their impact on others. A clearer understanding of oneself and others can help build interpersonal, team, and organisational effectiveness and therefore improve performance. Are leaders aware that their strengths can contribute positively to innovative behaviours and consequently, to organisational performance? Are they aware of their weaknesses and limitations that can hinder them from portraying innovative behaviours? Innovative leaders should be able to have the soft-human relations skills for the purpose of motivating their followers towards the achievement of organisational goals and objectives. They need to love, belief, and value their constituents as shared by Ang’ana.
Mindset
Innovative leaders should have the right adaptive mindset to be able to contribute positively to organisational success. According to Metcalf, et al, mindsets refer to leadership knowledge, skills, and attitudes, and the resulting behaviours that are exhibited by a leader. Effective behaviours of leaders and followers determine individual and team performance, team cohesiveness, individual and team morale, and organisational success. What then is causing a lack of innovativeness in organisations today? Could it be due to the wrong mindset in relation to innovativeness by some of the leaders? One of the challenges that contemporary leaders should overcome is satisfaction with the status quo; an aspect that was portrayed by the Israelites soon after leaving Egypt when they complained to Moses when he had taken them out of there (Ex. 14:12, NIV). This same mental attitude was exhibited in almost all their journey to Canaan. They could be heard complaining and especially when life became difficult.
Resilience
Innovative leaders should also possess the quality of resilience, which APA (2024) defines as how much disturbance leaders can withstand before breaking down. Further, resilience refers to the ability to adapt to change while continuing to be both fluid in approach and driven toward attaining strategic goals. It is the extent to which a leader can adapt to various physical, psychological, socio-cultural, and economic stressors and maintain focus on performance. Resilience which is an aspect of managing change, requires a lot of patience on the part of the leader in the process of pursuing organisational goals through innovation. On many occasions, leaders fail to innovate because it requires patience and is, at times, risky. For innovation to be successful, organisational leaders need to possess the attribute of courage in the process of managing innovation in pursuit of organisational success.
Strategic System Thinking
Strategic system thinking is the next innovative leadership attribute that today’s leaders should possess for their organisations to attain their goals and remain relevant in a business environment that is constantly evolving. As Cechvala (2024) explains, strategic systems thinking is the ability to view an organisation, problem, or situation as an interconnected system and to use that understanding to make long-term, high-impact decisions. For a leader to be innovative, it is imperative to have a holistic view of an organisation and its operations, identifying the current challenges it is facing and devising strategies to solve them using modern methods. This exercise helps leaders to improve their operation mechanisms so that they are aligned with current trends in the business the organisation is involved in.
Culture Creation
It is the responsibility of leaders to create a conducive environment in which innovation can thrive. A conducive organization culture makes employees feel more engaged and motivated to support the initiatives of an organisation, which translates to realisation of organisational goals and objectives. As Mohsen et al (2020) explained, culture is the set of norms, values and beliefs according to which employees should behave in a company. It is actually how things are practised in a corporation and is an important factor for organisational success and growth. The purpose and objective of organization culture are both employee satisfaction and organisational productivity. The big question is, how are leaders creating a culture of innovation in the organisations they are leading? A culture of innovation should be characterised by intellectual stimulation which is an aspect of giving employees room to come up with new ways of solving organisational challenges and coming up with new ideas.
Stakeholder Alignment
A leader cannot carry out the required innovation alone in an organisation. This therefore calls for leaders to bring on board all persons involved in the implementation of the innovation agenda. Stakeholder alignment refers to the process of ensuring that all key stakeholders of a project, organisation, or initiative share a common understanding, priorities, and commitment to its goals, strategies, and outcomes (Scheepers et al, 2022). The authors further explain that stakeholder alignment is about getting everyone “on the same page” so that their interests, expectations, and actions support the success of the initiative. It means involving them in the operations of an organisation. When the people who are involved in carrying out a task share the same vision, they are likely to succeed since all their energies are pulled towards the same direction. This, therefore, implies that if leaders bring all the relevant stakeholders together in the effort of carrying out an innovative idea, then they have a high chance of accomplishing it.
About the Author
Dr. Solomon Munyao is the Head of Leadership Department at Pan Africa Christian University. He is a lecturer in the same department and is a leadership consultant, besides authoring several articles in refereed journals, which can be accessed on Dr. Solomon Munyao – Google Scholar
