Responding to change is one critical skill organizations should have. Creating change is another—which is where innovation comes in.

It should come as no surprise that innovation is a powerful driver of business performance. Fortunately, innovation can be systematically cultivated within your organization. Human Capital Practices That Drive Innovation, a report by the Institute for Corporate Productivity (i4cp), reveals 10 human capital practices that enable employees to innovate more in their daily work.

Use social media tools to share knowledge. Social media tools exponentially increase knowledge-sharing capabilities, yet many companies are suspicious of them, believing that they distract workers more than enable them. However, i4cp found that high-performing organizations use these tools more than low-performing organizations.

Define and promote organizational values related to innovation. Make innovation a core value, and embed it into organizational strategies.

Include innovation as a major competency in leadership development plans. This doesn't mean that leaders must constantly generate new ideas and inventions. What it means is that they should actively seek ideas and input from their employees, collaborate with them, and initiate and manage projects that require innovation.

Tie individual bonuses and salary increases to innovation. Creative people, especially those high up in their organizations, tend to be aware of the value of innovative products, processes, and business models. As such, they expect to be compensated for their bright ideas.

Have a formal program to find and promote creative programs, products, or ideas. Ideation is not innovation; it's just the first step. There is much more that goes into turning an idea into a tangible result. Organizations that are consistent innovators have efficient processes to get from ideation to results.

Prepare to fund innovation projects external to the enterprise. Organizations must dedicate themselves to the question, "What else is out there?" Have a system for exploring opportunities outside your organization's immediate realm.

Provide innovation training. Creative problem solving is a skill that can be learned using proven methods and techniques.

Have a formalized idea review process. Successful innovators use a "stage-gate" system, in which each idea is assessed and, if promising, given the green light.

Track innovation at the college undergraduate and graduate level. Companies in industries where demand is acute have developed ways to attract students who demonstrate creative promise.

Reward innovation with more engaging work and greater autonomy. Reward employees with more flexibility and autonomy. Too much rigidity could stifle their creativity.