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462 PART 5: THE LEADER AS SOCIAL ARCHITECT
One senior executive from Allied Domecq’s internal audit department took aim
IN THE LEAD at the learning and training unit when he was asked to identify areas of unneces-

sary expense. He soundly berated Wielgus and criticized the department’s activi-
ties. However, rather than becoming defensive and treating the audit executive as
an enemy, Wielgus used the meeting as an opportunity to sell him on the benefi ts
of the program. His strategy was to treat the opposition as a friend and potential
ally. Wielgus began excitedly telling him about how the workshops functioned and
the dramatic changes he had seen in people who’d been through the training pro-
gram. He enthusiastically explained how people left the workshops feeling more
excited about their work and with a renewed commitment to the organization and
its goals.
Before long, the senior executive was scheduling training for the internal audit
department itself, and he became one of Wielgus’s most enthusiastic supporters.
The image of the Audit Services Department gradually changed from that of a polic-
ing unit to that of a partner helping people do their jobs better.
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Paul Wielgus understood the importance of building strategic alliances by reaching
out to the opposition as well as to those who already agreed with and supported
his ideas.
Leaders use a variety of everyday change strategies depending on the organiza-
tion, the circumstances, and their own personalities. There are many ways to bring
about change, and one of the most important ways is through individual leaders
working every day—quietly and alone or publicly in connection with others—to
effect small changes that ultimately have a powerful impact on the organization
and its members.

Leading for Innovation

In response to the question, “What must one do to survive in the twenty-fi rst
century?” the top answer among 500 CEOs surveyed by the American Man-
agement Association was “practice creativity and innovation.” However, only 6
percent of the respondents felt that their companies were successfully accom-
22
plishing this goal. Similarly, another survey by BusinessWeek and the Boston
Consulting Group found that 72 percent of top executives said innovation is a
top priority in their companies, yet almost half said they are dissatisfied with their

results in that area. 23
Many organizational leaders in the United States, Europe, and Japan are rec-
ognizing a need for greater innovation to keep pace with technological and societal
advances and compete with the growing power of companies in China and other
developing countries. Rather than focusing on ways to improve efficiency and cut

costs, today’s leaders are rewiring their organizations for creativity and innovation.
Some observers of business trends suggest that the knowledge economy of the late
1990s and early 2000s is rapidly being transformed into the creativity economy.
As more high-level knowledge work is outsourced to less-developed countries,
companies in the United States, Europe, and Japan are evolving to the next level—
generating economic value from creativity, imagination, and innovation. 24
Today’s leaders are adopting structures and systems that promote rather than
squelch the creation and implementation of new ideas. Effective leaders fi nd ways
to promote creativity in the departments where it is most needed. For example,
some organizations, such as hospitals, government agencies, and non-profi t
organizations, may need frequent changes in policies and procedures, and leaders
can promote creativity among administrative workers. For companies that rely on
new products, leaders need to promote the generation and sharing of ideas across