How to Create a Culture of Innovation

In May, USG Corporation, a building products company, was named Innovator of the Year today by The Executives’ Club of Chicago. The award, which is given to a company whose new product, service, process or business model has resulted in organic growth and measurable economic benefit to the region, was presented to USG for its development of USG Durock Brand EcoCap Self-Leveling Underlayment, a product that offers a significant reduction in several areas of environmental impact. With its geopolymer binder technology, USG Durock Brand EcoCap Self-Leveling Underlayment is a quick-setting, eco-friendly, cement-based product for use over concrete subfloors and wood subfloors in interior applications. The technology also brings significant improvement in building environmentally sustainable structures.

Dominic Dannessa is senior vice president and chief technology officer of USG Corporation. Current accountabilities include Corporate Innovation in Libertyville, Illinois; Marketplace Opportunities; Engineering; Technical Services; New Technologies; Environmental, Energy, Sustainability and Corporate Efficiency Initiatives. Dannessa graduated with a bachelor’s degree and a master’s degree in mechanical engineering from Youngstown State University. He is currently pursuing a Ph.D. in mechanical engineering at the University of Illinois at Chicago. The CBO team talked with Dannessa about USG’s strategy for growth and innovation. Read Dannessa’s answers to our questions below.

CBO: What does USG do daily, weekly or monthly to promote a culture of innovation?

DD: The drive to innovate is really part of our company’s DNA. It is key to our success. Innovation centers on taking care of customer needs and constantly coming up with ways that we can be more effective in our work. Our top leadership, including our CEO, CFO and myself, established an executive innovation board to drive that facet of our strategy across the company. If you think about company culture, there are three tiers: people, environment and process.

• You have to hire people that want to come up with better ways to do the work.
• You have to create an environment where that can happen.
• You have to plan processes to enable innovation to happen.

Creating a culture of innovation involves creating a collaborative effort within the company in which people can make mistakes without it being a career-ending move. This collaboration also involves people working together instead of against each other. A big part of such an atmosphere is diversity. At USG, this doesn’t just mean skin color or gender diversity. It is also senior level employees working with new graduates—that is a broad swath of knowledge working together to create products. Diversity—differences—make the company stronger.

The art innovation center we have, located in Libertyville, is another strength of USG. The center is made up of 200 labs and state-of-the-art equipment. Company executives have to be willing to invest in good times and in the leaner times. Lastly, awarding employees for achievements is paramount to an innovative culture. At USG, we have an annual awards ceremony in which we get patents from the government and highlight certain awards like the CTO award for risk-taking actions that benefitted the company. Employees need to be reminded that showing courage and trying something new can be beneficial.

CBO: How is the geopolymer binder technology, USG Durock Brand EcoCap Self-Leveling Underlayment innovative, and why should business owners incorporate it into their projects?

DD: This product is a breakthrough technology—it gives builders and contractors the ability to build surfaces a lot faster, saving both time and money. You pour this material over an existing floor. It works a lot faster than conventional products. Most importantly, it brings significant improvements to the project environmentally. It highlights a potential for creating cleaner buildings with a low carbon footprint and low biometrics (at least 50 percent better than conventional products often used). It is also flexible. You can use it over concrete, wood and other surfaces. It is rapid setting; you can open floors with the product up to foot traffic in approximately four hours. It also boasts superior thermal stability and an unbelievably tenacious bond. It’s almost like synthetic rock, but it is easy to mix, from 2 inches thick to a feather edge. The low pH provides a better compatibility with most surfaces. All of these features assist the project in getting LEED credits.

CBO: What top trends do you see in building products for the upcoming year?

DD: Of course, a major trend for a while now has been sustainability. Holistic system solutions that solve customer problems and are greener are the answer. We initiated a whole platform of products in which we took 40 percent of the weight out of the entire line. By lowering the weight, energy consumption is also improved. The products require less energy to transport, as well as less wear and tear. To make a lighter product that still delivers the same level of quality requires a lot of detailed science and engineering. It’s great for the environment when you aren’t using as many materials to complete production, too.

There is always a trend towards saving time. We pay attention to that by creating products that are easier to install than the prior iteration. Shortage and gaps in skilled labor have led to a trend towards creating products that are simpler to install, in less steps. Additionally, we are spending a lot more time on the manufacturing side. The internet of things is having a profound effect on business—you can collect data so much faster and create better customer solutions. Now, even having products that will adapt to various environmental conditions as time goes on is a reality.

CBO: What is your top advice to construction business owners who want to create and maintain an innovative culture in their own companies?

DD: To summarize a few points I made earlier, you have to have support from the top-down. As an executive in the business, put your money where your mouth is. If you are serious about something, show your commitment to it. Having a governing process in place where there is accountability and your employees own the process. You have to be able to handle evolutionary and revolutionary types of changes throughout every facet of the business. Giving employees the freedom to experiment is key. Innovation is sloppy by nature. It can take several iterations to reach a final, successful product. Sometimes things don’t work out, but you have to continue to work with the idea. On the other hand, you have to have processes to kill an idea quickly if it is clear that it won’t pan out well. But you cannot stifle the process.

Have a system for measuring performance. You cannot be so arrogant to think you know everything about the business. You have to put structures in place to be able to leverage the talent pool outside of your company. You need to be able to seek collaborative internal solutions, too. Most importantly, protect intellectual property. Have a high respect for the technical careers. Your employees should feel like they are valued and respected. A company is either innovative or it isn’t. For USG, it’s internal operations that make all the difference.

For more information, visit USG Corporation.