Creating a culture of innovation at Portugal Telecom

Purpose – The purpose of this paper is to describe an implementation process that can aid companies in improving organizational innovation. Design/methodology/approach – The case describes an approach to boost the problem solving and innovation culture beyond the confines of the new product development group. Findings – The paper provides an application of the organizational development to innovation. The process may not be applicable to all businesses but Portugal Telecom (PT) accomplished an extensive change in corporate culture. By carefully designing an innovation program with valuable incentives made more valuable by peer pressure, PT was able to harness the “wisdom of the crowds,” the knowledge that resides in employees.Their results can be valuable to other companies. Research limitations/implications – As in all case studies, the specific conditions found in one organization may not be found more generally in others. Readers are cautioned that the conclusions drawn in the case may have limited applicability. Practical implications – The case depicts the process that a firm can use to increase the level of innovation. Originality/value – The paper describes how an organizational development strategy, focusing on harnessing the efforts of employees can transform a company and its products.