Set up an Innovation Slush Fund to provide seed money to champions and skunk works. Couple it with allowing your key operations people 10-15 percent of their time to work on projects that they feel have some high innovation potential. The only condition of getting the money or time is a periodic report (preferably voice mail, E-mail, video, or group presentation rather than a bureaucratic memo) on the key lessons learned. Circulate these reports widely.
Source: “Innovation and Organizational Learning Pathways and Pitfalls (Part 2)”