Innovation is critical to long-term success. But to achieve it, distributors should focus on developing innovation skills in their employees, says Rebecca Ray, human capital practice lead for The Conference Board, in 2016 Distribution Remodel: Deepen Talent Development.

“Companies, particularly CEOs, are starting to recognize that innovation comes from people,” she says. “It’s not incremental innovation from new technology, but rather smart people who leverage the technology to get to that innovation.”

According to an annual CEO survey conducted by the Conference Board, the top innovation strategies revolve around developing innovation skills in employees – including a focus on scenario planning or exploring strategies from outside the company’s specific industry or niche.

In order to improve innovation – which many CEO's view as a critical element for growing sales ­– create an action plan to make sure employee development takes place, Ray suggests.

Forming diverse teams that will naturally have different viewpoints to share is also key. But make sure the CEO is also involved – a critical component for employee engagement, she says.

Read more about the benefits of investing in employee innovation skills in 2016 Distribution Remodel: Deepen Talent Development.