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CHAPTER 15: LEADING CHANGE 463
departments. In most successful companies, leaders want everyone to come up
with new ideas for solving problems and meeting customer needs.
One of the best ways for leaders to facilitate continuous change is to create an
environment that nourishes creativity. Creativity is the generation of ideas that are Creativity
Creativity
the generation of ideas that
both novel and useful for improving effi ciency and/or effectiveness of an organi- the generation of ideas that
are both novel and useful
25
zation. Creative people come up with ideas that may meet perceived needs, solve are both novel and useful
ciency and
for improving effi ciency and
for improving effi
problems, or respond to opportunities and are therefore adopted by the organi- effectiveness of the organization
effectiveness of the organization
zation. However, creativity itself is a process rather than an outcome, a journey
rather than a destination. One of the most important tasks of leaders today is to
harness the creative energy of all employees to spur innovation and further the
interests of the organization.
The Creative Organization
Leaders can build an environment that encourages creativity and helps the orga-
nization be more innovative. Five elements of innovative organizations are listed
26
in the left column of Exhibit 15.4, and each is described below. These elements
correspond to the characteristics of creative individuals, listed in the right column
of the exhibit.
Alignment For creative acts that benefit the organization to occur consistently,

the interests and actions of everyone should be aligned with the organization’s
purpose, vision, and goals. Leaders make clear what the company stands for, con-

sistently promote the vision, and clarify specific goals. In addition, they make
a commitment of time, energy, and resources to activities that focus people on
innovation. Many organizations set up separate creative departments or venture Idea incubator
Idea incubator
teams. One increasingly popular approach is the idea incubator, which is being used a safe harbor where ideas from
a safe harbor where ideas from
employees throughout the
at companies such as Boeing, Ziff-Davis, and UPS. An idea incubator provides a employees throughout the
organization can be developed
safe harbor where ideas from people throughout the organization can be devel- organization can be developed
without interference from
without interference from
oped without interference from company bureaucracy or politics. 27 company bureaucracy or politics
company bureaucracy or politics
Exhibit 15.4 Characteristics of Innovative Organizations and Creative People
The Innovative Organization The Creative Individual
Alignment Commitment
Focused approach
Creative Values Interdependence
Persistence
Energy
Unofficial activity Self-confidence
Nonconformity
Curiosity
Diverse stimuli Open-mindedness
Conceptual fluency
Enjoys variety
Within-company Social competence
communication Emotionally expressive
Loves people

Source: Based on Alan G. Robinson and Sam Stern, Corporate Creativity: How Innovation and Improvement
Actually Happen (San Francisco: Berrett-Koehler, 1997); Rosabeth Moss Kanter, “The Middle Manager as
Innovator,” Harvard Business Review, (July–August 1982), pp. 104–105; and James Brian Quinn, “Managing
Innovation: Controlled Chaos,” Harvard Business Review, (May–June 1985), pp. 73–84.