Creativity is often seen as a luxury in business. Something you do when everything is going well, when there are margins, or as a desperate solution when everything is going wrong. It is rarely considered a management tool in everyday life. Yet creativity is one of the most powerful resources a company has to adapt, innovate and develop in uncertain times.
It is therefore time to take the concept of Return on Creativity (RoC) seriously and put it in relation to the more established concepts of Return on Innovation (RoI) and Return on Investment (ROI).
From investment to idea
Return on Investment measures the relationship between what you invest and what you get back. It is a necessary measure for understanding profitability. Return on Innovation, on the other hand, is about how much value is created through new development, often measured in new products, services or business models that create financial returns. But behind every innovation there is an idea, and behind every idea there is a creative impulse. Return on Creativity therefore focuses even earlier in the chain. It is about how organizations cultivate and utilize their creative potential to enable innovation and thereby create long-term returns.
A formula for Return on Creativity
Return on Creativity cannot be reduced to a simple economic ratio. It requires a more qualitative and systemic understanding of how creative capacity is built and utilized. A possible formula for RoC could be expressed as:
RoC = (K × F × T) / R
Where:
K = Feeling of psychological safety
F = Degree of freedom in working methods and thinking
T = Trust within the team
R = Resource withdrawal in the form of time and attention
The higher the safety, freedom and trust, the greater the likelihood that creativity will flourish. But it requires an investment in the form of time, something that is often the first to disappear when cost pressures increase. Therefore, RoC must be measured not in the production of ideas, but in the quality of the conditions for creativity.
When creativity is a luxury and when it is necessary
Historically, we see that companies often invest in creativity when they can afford it. Then you hire design agencies, start innovation labs and send staff on inspiration trips. Conversely, many are forced to radically rethink when all else fails. Both conditions – abundance and crisis – can trigger creativity, but the great opportunity lies in understanding creativity as an everyday tool, as a way to both slow down and accelerate depending on the situation.
Creativity can be a way to slow down and think differently when everything is going too fast. It can also be an accelerator that takes an organization past old obstacles. But for it to work, creativity needs to be given its own value and recognition as a productive force, not just as “inspiration”.
Indirect indicators say more than the number of ideas
Measuring how many ideas a team produces is a misleading measure. Idea production can sometimes be the result of insecurity or superficial brainstorming rather than real creativity. Better indicators are questions like:
- How fun is it to work here right now?
- How curious are we about each other’s perspectives?
- How often do trusting, open conversations occur?
It is in these everyday indicators that the seeds of innovation germinate. An organization that has fun, feels safe and dares to challenge each other in a respectful way has a significantly greater chance of discovering the unexpected and developing ideas that create real value.
How can you think about Return on Creativity?
To get a return on creativity, conscious decisions are required. A management team should actively create structures for reflection, experimentation and playfulness. You should protect times in the calendar where there are no demands. It is equally important to build a culture where failures are acceptable steps in a learning process. It is not about letting everyone “play freely”, but about understanding that creative work has a different logic than linear production.
Leaders should also take on the role of enabler rather than supervisor. By showing curiosity, encouraging risk-taking and showing that creativity is a legitimate part of the work, you can create the conditions for a high Return on Creativity.
Investing in creativity is investing in the future
Organizations that see creativity as a fundamental resource, rather than an exception, will have an advantage. They build adaptability, employee engagement and innovative power – values that ultimately create higher Return on Innovation and thus better Return on Investment.
Creativity is not a sidetrack. It is an engine, a muscle and a method for surviving and thriving in a rapidly changing world.
