Académique Documents
Professionnel Documents
Culture Documents
and Leadership
A
ccording to legend, it was melting ice He started franchising in 1947 a n d quickly sold
The story about the birth of American icon Carvel tells us a lot about creativity
applied to business. The creative leader recognizes a good opportunity that others
might miss. Instead of saying, "I'm ruined, my ice cream is melting," Carvel probably
said, "Wow, there are marketing possibilities in soft ice cream." By thinking cre-
atively (such as by developing a new product based on a mishap), a person can form
a new enterprise that can keep many people engaged in productive activity. However,
the creative idea has to be executed properly for innovation to take place. Although
the terms creativity and innovation are often used interchangeably, innovation
refers to the creation of new ideas and their implementation or commercialization.
A major focus of innovation is taking organizations built for efficiency and rewiring
them for creativity and growth. 2
sights that can open u p new opportunities or alternatives for the group or the or-
ganization. The role of a creative leader is to bring into existence ideas a n d things
that did not exist previously or that existed in a different form. Leaders are not
b o u n d by current solutions to problems. Instead, they create images of other pos-
sibilities. Leaders often move a firm into a n additional business or start a new de-
p a r t m e n t that offers a n o t h e r service. Such activity is of high priority because m a n y
business forecasters predict that employee creativity a n d innovation will be the
most i m p o r t a n t factors in establishing and maintaining a competitive a d v a n t a g e . 4
This chapter emphasizes the development of creativity in the leader. It also ex-
plains the nature of creativity a n d creative people and examines the leader's role
in establishing an a t m o s p h e r e that helps g r o u p m e m b e r s become m o r e creative,
along with leadership practices conducive to innovation.
Step 5 Step 4
Verification and Insight
application
This model divides creative thinking into five stages, as s h o w n in Figure 11-1.
5
wife raised $45,000 from friends a n d obtained a second mortgage o n their house.
Cowan did start his business, but he faced financial trouble. W h e n Cowan's com-
pany was on the verge of folding, Charles Schwab, the brokerage firm, hired it to
connect its 100 b r a n c h offices.
Cowan's opportunity-spotting has evolved into a small industry, serving the
needs of millions of workers in the era of global business. The end product of
Cowan's creative thinking was a business possibility r a t h e r than an invention. Nev-
ertheless, businesspeople typically follow the s a m e five steps of creative thought
as do inventors. Even t h o u g h creativity usually follows the s a m e steps, it is not a
mechanical process that can be turned on a n d off. Much of creativity is intricately
woven into a person's intellect and personality.
Creative leaders, like creative workers of all types, are different in m a n y ways from
their less creative counterparts. They are devoted to their fields a n d enjoy intel-
lectual stimulation, a n d they challenge the status quo, which leads t h e m to seek
improvements. For example, s o m e o n e questioned why affluent people needed to
own their vacation h o m e s full-time instead of part of the time—resulting in the
time-share industry. Above all, creative people are mentally flexible a n d can see
past the traditional ways of looking at problems.
As described next, the specific characteristics of creative people, including cre-
ative leaders, can be grouped into four areas: knowledge, cognitive abilities, per-
sonality, a n d passion for the task and the experience of flow. These characteris-
8
Knowledge
Creative problem solving requires a broad background of information, including
facts a n d observations. Knowledge provides the building blocks for generating and
combining ideas. Most creative leaders are knowledgeable, and their knowledge
contributes to their charisma. A well-known case in point is Steven P. Jobs, the
chief executive of Apple Inc. and Pixar Animation Studios. He contributes design
a n d marketing decisions to most of Apple's key products, a n d he played a major
role in the development of the p o p u l a r i Phone. A c o n t r i b u t o r to Jobs's creativity
is his in-depth technical knowledge of c o m p u t e r h a r d w a r e a n d software. Another
example is the cross-breeding of the iPod n a n o with a Nike r u n n i n g shoe. A chip
inserted into the shoe t u r n s the shoe into a step c o u n t e r that is wirelessly con-
nected to a receiver in the iPod n a n o . The iPod then displays such information as
the n u m b e r of miles r u n and calories b u r n e d . As with most creative people, Jobs
9
has had his share of failed innovations, including the cube-shaped Mac. However,
a few failures along the way rarely discourage a creative person.
Characteristics of Creative Leaders 319
Knowledge
Knowledgeable about
wide range of information
10. Playing with a new idea is fun even if it does not benefit
me in the end. • •
11. Some of my best ideas have come from building on the ideas
of others. • •
12. In writing, I try to avoid the use of unusual words and
word combinations. • •
13. I frequently jot down improvements in the job I would like
to make in the future. • •
14. I prefer to stay with technology devices I know well rather than
frequently updating my equipment or software. • •
15. I prefer writing personal notes or poems to loved ones rather
than relying on greeting cards. • •
16. At one time or another in my life I have enjoyed doing puzzles. • •
17. If your thinking is clear, you will find the one best solution
to a problem. • •
18. It is best to interact with coworkers who think much like you. • •
19. Detective work would have some appeal to me. • •
20. Tight controls over people and money are necessary to
run a successful organization. • •
Scoring and Interpretation: Give yourself a score of 1 for each answer that matches the
answer key:
1. Mostly false 8. Mostly true 15. Mostly true
2. Mostly true 9. Mostly true 16. Mostly true
3. Mostly false 10. Mostly true 17. Mostly false
4. Mostly false 11. Mostly true 18. Mostly false
5. Mostly true 12. Mostly false 19. Mostly true
6. Mostly true 13. Mostly true 20. Mostly false
7. Mostly false 14. Mostly false
Total score:
Extremely high or low scores are the most meaningful. A score of 15 or more suggests
that your personality and attitudes are similar to those of creative people, including creative
leaders. A score of 8 or less suggests that you are more of an intellectual conformist at
present. Do not be discouraged. Most people can develop in the direction of becoming more
creative.
How does your score compare to your self-evaluation of your creativity? We suggest you
also obtain feedback on your creativity from somebody familiar with your thinking and
your work.
Characteristics of Creative Leaders 321
Cognitive Abilities
Intellectual abilities c o m p r i s e s u c h abilities as general intelligence a n d a b s t r a c t
r e a s o n i n g . Creative p r o b l e m solvers, p a r t i c u l a r l y in b u s i n e s s , t e n d to be bright
b u t a r e n o t at the a b s o l u t e t o p e n d of the brilliance scale. E x t r a o r d i n a r i l y high
intelligence is not r e q u i r e d to b e creative, a l t h o u g h creative people are facile
at g e n e r a t i n g creative s o l u t i o n s to p r o b l e m s in a s h o r t p e r i o d of t i m e . Creative
p e o p l e also m a i n t a i n a youthful curiosity t h r o u g h o u t t h e i r lives, a n d the curi-
osity is n o t c e n t e r e d j u s t o n their o w n field of expertise. I n s t e a d , t h e i r r a n g e
of i n t e r e s t s e n c o m p a s s e s m a n y a r e a s of k n o w l e d g e , a n d they are e n t h u s i a s -
tic a b o u t p u z z l i n g p r o b l e m s . T h e s e m e n t a l w o r k o u t s help s h a r p e n a person's
intelligence.
Creative people show an identifiable intellectual style: being able to think di-
vergently. They are able to expand the n u m b e r of alternatives to a problem, t h u s
moving away from a single solution. Yet the creative thinker also knows w h e n it is
time to n a r r o w the n u m b e r of useful solutions. For example, the divergent thinker
might think of twenty-seven ways to reduce costs, but at some point he or she
will have to move toward choosing the best of several cost-cutting a p p r o a c h e s . In
recent years several business firms have included design school graduates in their
product development teams because designers tend to think flexibly. The idea is to
search for new options that d o not already exist. An example is that Intel works
with design students to work on new p r o d u c t s for aging baby b o o m e r s ' future
homes. 10
Personality
The noncognitive aspects of a person heavily influence creative problem solving.
Creative people tend to have a positive self-image without being blindly self-
confident. Because they are self-confident, they are able to cope with criticism of
their ideas, a n d they can tolerate the isolation necessary for developing ideas. Part
of the self-confidence of a creative worker focuses on the belief that he or she can
solve problems creatively. Talking to others is a good way to get ideas, yet at some
point the creative problem solver has to work alone a n d concentrate.
Creative people are frequently nonconformists a n d d o not need strong approval
from the group. Nonconformity can also m e a n being a maverick. Richard E.
Cheverton observes: "The maverick is really the person w h o is the focus of creativ-
ity in a company, but a lot of people perceive t h e m as jerks because they like to stir
the pot. But these are just people driven to accomplish things anonymously. They
just want to get things done, a n d they do not care a b o u t office politics or organ-
izational charts. They like to spread the credit a r o u n d . " " A maverick personality
322 CHAPTER 11 I Creativity, Innovation, and Leadership
w h o is not granted the freedom to develop new ideas is likely to join a n o t h e r firm
or start a business.
Many creative p r o b l e m solvers are thrill seekers w h o find that developing imag
inative solutions to p r o b l e m s is a source of thrills. Creative people are also per
sistent, which is especially i m p o r t a n t for the verification a n d application stage of
creative thinking. Selling a creative idea to the right people requires considerable
follow-up. Finally, creative people enjoy dealing with ambiguity a n d chaos. Less
creative people b e c o m e quickly frustrated w h e n task descriptions are unclear a n d
disorder exists.
Expertise refers to the necessary knowledge to put facts together (the knowledge
required for creativity, as already explained). Creative-thinking skill refers to the
ability to imaginatively a p p r o a c h problems. If you know how to keep digging for
alternatives and to avoid getting stuck in the status quo, your chances of being
creative multiply. The exercises to be presented in this chapter foster this type of
mental flexibility. Finally, task motivation refers to persevering, or sticking with a
problem to a conclusion, which is essential for finding creative solutions. A few
rest breaks to gain a fresh perspective m a y be helpful, but the creative person
keeps coming back until a solution emerges.
The combined forces of the three factors lead to individual creativity as follows:
expertise x creative-thinking skill x task motivation = creativity. Because there
are substantial individual differences for each factor, such as wide variation in
domain-relevant expertise, not all leaders are equally creative.
Knowledge Bank The central task in b e c o m i n g creative is to break d o w n rigid thinking that
Provides more depth on the blocks new ideas. At the s a m e time, the problem solver m u s t u n l e a r n the conven-
topic of creative thinking. tional a p p r o a c h . Henry Ford u n l e a r n e d the c u s t o m a p p r o a c h to building autos
17
www.cengage.com/ so he could use an assembly line. (In the c u r r e n t era, people w h o have u n l e a r n e d
management/dubrin
the assembly-line a p p r o a c h a n d switched to c u s t o m i z a t i o n are considered to be
creative!)
324 CHAPTER 11 I Creativity, Innovation, and Leadership
O v e r c o m i n g t r a d i t i o n a l t h i n k i n g is so i m p o r t a n t to creative t h i n k i n g t h a t the
p r o c e s s h a s b e e n c h a r a c t e r i z e d in several different w a y s . T h e m o s t familiar is
t h a t a creative person thinks outside the box. A box in this sense is a category
t h a t confines a n d restricts t h i n k i n g . B e c a u s e you are confined to a box, you d o
not see o p p o r t u n i t i e s o u t s i d e the box. F o r e x a m p l e , if a n i n s u r a n c e executive
thinks t h a t health i n s u r a n c e is only for people, he or she m i g h t m i s s o u t o n
the g r o w i n g m a r k e t for d o m e s t i c a n i m a l h e a l t h i n s u r a n c e . Inside the a c c o m -
p a n y i n g box insert, you will find several b u s i n e s s e x a m p l e s of t h i n k i n g o u t s i d e
the box.
replaces a traditional h o m e loan with a Christopher Stern, "Netflix Braces for Amazon:
redeemable lease. The b a n k holds the DVD Rental Company Cuts Fees to Compete,"
Washington Post, October 16, 2004, p. IE; Steve
h o m e in trust, a n d the c u s t o m e r makes
Chawkins, "Stockton's Magical Misery Tours,"
monthly p a y m e n t s to that trust. E a c h rent Los Angeles Times (latimes.com), December 13,
p a y m e n t includes a set a m o u n t of savings 2007; Sally Beatty, "Bank of America Puts Ads in
that builds equity in the property. After ATMs," Wall Street Journal, July 25, 2002, p. B8;
the savings account equals the home's Karen Dybis, "Banks Offer No-Interest Options
for Muslims," Detroit News, December 21, 2004
original price, the c u s t o m e r owns the
(detnews.com).
h o m e free a n d clear.
To facilitate having fresh ideas, the leader or m a n a g e r can establish idea quotas,
such as by asking staff m e m b e r s to bring one new idea to each meeting. Although
the vast majority of these ideas m a y not lead to innovation, a few good ones will
emerge. One reason idea quotas work is that they are a goal. Another is that a n en-
vironmental need (in this case, the idea quota) is a n excellent creativity stimulant.
A major leadership a c c o m p l i s h m e n t is to obtain widespread participation in
contributing innovative thinking. A. G. Lafley, the Procter & Gamble CEO, explains
this approach:
The P&G of five years or six years ago depended on 8,000 scientists a n d engineers for
the vast majority of innovation. The P&G we're trying to unleash today asks all 100,000-
plus of us to be innovators. We actively solicit good ideas, a n d if the concept is p r o m i s -
ing we p u t it into development. For example, we are n o w selling a line of hair care for
w o m e n of color called Pantene Pro-V Relaxed a n d Natural. A few African-American
employees c a m e to m e a n d said we're missing out: The stuff that's on the m a r k e t really
doesn't work, and we can do b e t t e r . [The line is doing well.]
20
Brainstorming
The best-known method for creativity i m p r o v e m e n t is brainstorming, which most
of you have already done. Although b r a i n s t o r m i n g is often c o n d e m n e d as being
l®Knowledge Bank superficial, it r e m a i n s a key idea-generation m e t h o d for even the most advanced
contains rules for
brainstorming.
technology companies. A notable example is the firm Intellectual Ventures, whose
www.cengage.com/
primary mission is to develop inventions, cofounded by N a t h a n P. Myhrvold, the
management/dubrin former chief technology officer at Microsoft. Myhrvold assembles groups of doc-
tors, engineers, a n d scientists k n o w n for their brilliance, along with in-house in-
ventors a n d lawyers, for day-long b r a i n s t o r m i n g sessions. The Intellectual Ventures
staff takes ideas from the b r a i n s t o r m i n g sessions a n d t u r n s t h e m into patents. In-
ventors get a share of any eventual royalties. 21
solutions are not criticized or evaluated in any way, so that spontaneity is encour-
aged. The idea for an antitheft device for automobiles, The Club, is reported to have
s t e m m e d from brainstorming. One marketing person suggested that cars should
have a portable steering wheel that the driver could remove after the car is parked.
Somebody else suggested that the steering wheel be m a d e inoperative, which led to
the idea of a n ultrastrong b a r to lock the steering wheel in place. The Club and its
imitators have become highly successful products; a version of The Club has been
developed for securing doors.
Brainstorming continues to evolve as a method of creative problem solving. An-
other variation is the 6-3-5 method. Six people take five minutes to write down three
ideas each on a sheet of paper or large index card. After five minutes, the participants
pass their papers or cards clockwise and add their own ideas to each new sheet. They
continue passing along and writing down ideas until the sheets or cards get back to
the people w h o originated them. Next, they hold a group discussion of the merits of
the various i d e a s . During the discussion, it is likely that some m e m b e r s will modify
23
their ideas or think of new ones because they will be stimulated by the list of eigh-
teen ideas. Often, however, the list will contain m a n y duplicate or similar ideas.
Another variation of brainstorming is to encourage extreme thinking. Participants
are asked to contribute ideas that would probably work but are so outrageous they
328 CHAPTER 11 I Creativity, innovation, and Leadership
could get the group fired. Later the group figures out a way to narrow the potential
solutions. Here would be two examples of extreme thinking during brainstorming
24
The pet-peeve technique is potentially valuable for a leader because it can help
the group improve its work processes. Because it has a good-spirited touch, it is
not likely to be perceived as threatening. Leadership Skill-Building Exercise 11-2
presents an opportunity to practice the pet-peeve technique.
Scoring end Interpretation Answers appear on score is the fact that you acquired some practice in
page 000. If you were able to think of the "correct" making remote associations—a characteristic talent
word, or another plausible one, for ten or more of of creative people.
these words, your score compares favorably to that Source: Updated and adapted from "Ideas: Test Your Creativity,"
of creative individuals. More important than the by Eugene Raudsepp, Nation's Business (June 1965), p. 80.
in different fields and get ideas that can bring a b o u t innovations for your group.
For example, if you m a n a g e a t e l e c o m m u n i c a t i o n s group, speak to salespeople and
manufacturing specialists.
Second, be a n artist by stretching your imagination. Strive to spend about 5 per-
cent of your day asking what-if questions. For example, the leader of a telecommu-
nications group might ask, "What if some new research suggests that the extensive
use of telecommunications devices is associated with high rates of cancer?" Also
r e m e m b e r to challenge the c o m m o n l y perceived rules in your field. A bank m a n -
ager, for example, asked why c u s t o m e r s needed canceled checks returned each
m o n t h . The questioning led to a new bank practice: returning canceled checks only
if the c u s t o m e r pays an additional fee.
Establishing a Climate and Culture for Creative Thinking 333
Knowledge Bank.
exercise can boost creative thinking should not be interpreted in isolation. Without
www.cengage.com/
other factors going for a leader, such as a storehouse of knowledge a n d passion for
management/dubrin
the task, physical exercise will not lead to creative b r e a k t h r o u g h s .
Information about establishing a climate for creativity can be divided into (1)
leadership a n d managerial practices for enhancing creativity a n d (2) methods for
managing creative workers. To become sensitized to this vast a m o u n t of information,
do Leadership Diagnostic Activity 11-1. The instrument gives you an opportunity to
ponder many of the management a n d leadership practices that encourage or discour-
age creative problem solving.
Mostly Mostly
Yes No
1. Creativity is encouraged here. • •
2. Our ability to function creatively is respected by the leadership. • •
3. Around here, people are allowed to try to solve the same problems • •
in different ways.
4. The main function of members of this organization is to follow • •
orders that come down through channels.
5. Around here, a person can get into a lot of trouble • •
by being different.
6. This organization can be described as flexible and continually • •
adapting to change.
7. A person cannot do things that are too different around here • •
without provoking anger.
8. The best way to get along in this organization is to think the • •
way the rest of the group does.
9. People around here are expected to deal with problems • •
in the same way.
10. This organization is open and responsive to change. • •
11. The people in charge around here usually get credit • •
for others' ideas.
12. In this organization, we tend to stick to tried and true ways. • •
13. This place seems to be more concerned with the status • •
quo than with change.
14. Assistance in developing new ideas is readily available. • •
Establishing a Climate and Culture for Creative Thinking 335
Scoring and interpretation: The score in the direction of a climate for innovation is "mostly yes"
for statements 1, 2, 3, 6, 10, 14, 15, 16, 19, 20, and 21, and "mostly no" for statements 4, 5, 7, 8, 9,
11, 12, 13, 17, 18, and 22. A score of 16 or higher suggests a climate well suited for innovation, 9
to 15 is about average, and 8 or below suggests a climate that inhibits innovation.
Source: From Susanne G. Scott and Reginald Bruce, "Determinants of Innovative Behavior: A Path Model
of Individual Innovation in the Workplace," Academy of Management Journal, by Hitt, Michael A., June 1994,
p. 593. Copyright 1994 by Academy of Management. Reproduced with permission of Academy of Manage-
ment in the format Textbook via Copyright Clearance Center.
1. Hire creative people from the outside and identify creative people from
within. The most robust leadership and m a n a g e m e n t practice for enhancing cre-
ativity is to hire people with the aptitude for, or track record in, being creative. Cre-
ativity training is helpful, yet starting with creative people enhances the potential of
training. Dave Ditzel, the founder of Transmeta and a Bell Labs alumnus, says you
need talent spotters. He believes that it is a lot more productive to find ten superinno-
vative workers than to subject 10,000 creatively challenged employees to training. 36
Part of the same argument is that hiring innovative people helps foster a n innovative
environment. Arthur D. Levinson, c h a i r m a n and chief executive of Genentech, the
heralded biotechnology firm, says, "If you want a n innovative environment, hire in-
novative people, listen to them tell you want they want, and do it." 37
336 CHAPTER 11 I Creativity, Innovation, and Leadership
5. Effective design of work groups. Work groups are the most likely to b e creative
w h e n they are mutually supportive and when they have a diversity of b a c k g r o u n d s
and perspectives. Blends of gender, race, and ethnicity are recognized today as
contributing to creative thought, similar to cross-functional t e a m s with their mix
of perspectives from different disciplines. The various points of view often com-
bine to achieve creative solutions to problems. H o m o g e n e o u s teams argue less, but
they are often less creative. Putting together a team with the right chemistry—just
the right level of diversity and supportiveness—requires experience a n d intuition
on the leader's part.
6. Supervisory encouragement. The most influential step a leader can take to
bring about creative problem solving is to develop a permissive a t m o s p h e r e that
encourages people to think freely. Praising creative work is i m p o r t a n t because, for
most people to sustain their passion, they m u s t feel that their work m a t t e r s to the
organization. Creative ideas should be evaluated quickly rather t h a n put t h r o u g h a
painfully slow review process.
8. Have favorable exchanges with creative workers. Another insight into en-
couraging a creative climate is for leaders to have favorable exchanges with group
m e m b e r s , as defined by LMX theory (see Chapter 9). A study with 191 research
a n d development specialists found a positive relationship between LMX ratings
a n d creativity of workers as m e a s u r e d by supervisory r a t i n g s . W h e n g r o u p m e m -
38
bers have positive relationships with their manager, they m a y have a m o r e relaxed
mental attitude that allows the imagination to flow. A useful strategy for e n h a n c i n g
creativity t h r o u g h o u t the organization is to e m p h a s i z e the i m p o r t a n c e of working
with a sense of heightened awareness, of being alert to new possibilities.
The Leader in Action profile o n the next page describes a n e n t r e p r e n e u r w h o
deliberately a t t e m p t s to create a n organizational culture t h a t fosters creativity.
1. Give creative people tools and resources that allow their work to stand
out. Creative workers have a high degree of self-motivation a n d therefore w a n t
to achieve high-quality output. To achieve such high quality, they usually need
adequate resources, such as state-of-the-art e q u i p m e n t a n d a n a m p l e travel budget
for such purposes as conducting research.
3. Give gentle feedback when turning down an idea. Creative employees are
emotionally involved with their work. As a result, they are likely to interpret criti-
cism as a personal attack on their self-worth. (Students often feel the s a m e way
a b o u t their t e r m papers a n d projects.)
CHAPTER 11 I Creativity, innovation, a n d Leadership
• Leader in Action
2. Take risks and encourage risk taking. "No risk, no reward" is a rule of life that
applies equally well to the leadership of innovation. Even in a slow-growth econo-
my, c o m p a n i e s cannot win big in the marketplace by doing things just a teeny bit
better t h a n the competition. It is necessary to gamble intelligently, shrewdly, and
selectively even during a period of insecurity a n d instability. Because most new
41
ideas fail, part of taking risks is being willing to go down blind alleys.
5. Avoid innovation for its own sake. Leaders also have to exercise good judg-
ment: innovation just because it is innovation is not always valuable. Many gadgets
are scientific marvels, yet they have limited market appeal. An example is the robot
lawnmower, which arouses the curiosity of m a n y people but does not appeal m u c h
to c o n s u m e r s . Most companies have loads of interesting ideas floating to the sur-
face, but very few will even translate into a profitable product or service. A survey
of 1,090 executives in 63 countries indicated that only 48 percent were satisfied
with their return on investments from i n n o v a t i o n . 44
The information presented earlier about playing the role of a judge in creativity
is particularly relevant here. One of the problems with too m a n y products being
developed is that they can create a logjam. Such a blockage took place at Avery
Dennison Corp., the adhesive label maker. A consultant found that the c o m p a n y
was j a m m i n g too m a n y new ideas into its product pipeline, resulting in insufficient
slack time to keep critical tasks on schedule. The r e m e d y was to shrink the n u m b e r
of product rollouts, which resulted in a net n u m b e r of m o r e successful product
introductions. 45
are able to p u r s u e a b s u r d ideas without penalty for being wrong or for having
wasted some resources. An axiom of creativity is that m a n y ideas typically have to
be tried before a commercially successful one emerges.
Additional Leadership Practices That Enhance Innovation 341
8. Recognize the hidden opportunities when products and ideas flop. Many
product innovations had their origins in flops a n d failures because somebody was
perceptive enough to recognize the new possibilities that emerged from the set-
back. Success emerged from the ashes of the products that a p p e a r e d to be drastic
mistakes. Two famous examples follow:
• In 1983, Apple produced Lisa, the first commercial personal c o m p u t e r featur-
ing a graphical user interface (GUI). Lisa sold poorly because it was sluggish
a n d highly priced. However, the GUI of Lisa helped to inspire Apple's user-
friendly p r o d u c t line including the iMac, the iPod, a n d the iPhone.
• In 1962, McDonald's tested the Hula Burger, a cheese-topped grilled pine-
apple on a b u n for Chicago residents w h o chose not to eat meat o n Friday (a
Christian tradition at the time). C o n s u m e r s s h u n n e d the Hula Burger, a n d
the c o m p a n y learned that meatless didn't have to m e a n wacky. The next year,
a franchise o w n e r developed a tastier alternative for "meatless Fridays"—the
Filet-O-Fish, which b e c a m e a McDonald's classic.
Not all product failures lead to profitable innovations. One of the most useless flops
was the CueCat. Launched in 2000, the device scanned b a r codes from magazines
a n d newspaper ads to direct readers to web sites so they wouldn't have to trouble
themselves with typing in the U R L . In instances of total failure, the leader might
48
Reader's R o a d m a p
SUMMARY
A creative idea becomes an innovation when it is the possible complaints others might have about
implemented or commercialized. Creativity is an their unit. Some organizations also equip a kitchen
essential characteristic of leaders. A creative leader for the mind, or a space designed for creativity.
brings forth ideas or things that did not exist previ- Self-help techniques to enhance creative problem
ously or that existed in a different form. The creative solving include (1) practicing creativity-enhancing
process has been divided into five steps: opportunity exercises, (2) staying alert to opportunities, (3) main-
or problem recognition; immersion (the individual taining enthusiasm and being happy, (4) maintaining
becomes immersed in the idea); incubation (the idea and using a systematic place for recording ideas,
simmers); insight (a solution surfaces); and verifica- (5) playing the roles of explorer, artist, judge, and
tion and application (the person supports and imple- lawyer, and (6) engaging in appropriate physical
ments the idea). exercise.
Distinguishing characteristics of creative people Establishing a climate conducive to creative
fall into five areas: knowledge, cognitive abilities, problem solving is another requirement of effec-
personality, passion for the task, and the experience tive leadership. A foundation step is to establish a
of flow. Creative people possess extensive knowledge, vision statement and mission that include creativity.
good intellectual skills, intellectual curiosity, and Specifically, leaders should (1) hire creative people
a wide range of interests. Personality attributes of from the outside and identify creative people from
creative people include a positive self-image, toler- within, (2) provide intellectual challenge, (3) allow
ance for isolation, nonconformity, and the ability to workers freedom to choose their own method,
tolerate ambiguity and chaos. Passion for the work (4) supply the right resources, (5) design work
and flow are related to intense intrinsic motivation. groups effectively, (6) have supervisors encourage
Creative people also enjoy interacting with others. creative workers, (7) give organizational support for
The right personal characteristics must interact with creativity, and (8) have favorable exchanges with
the right environment to produce creative prob- creative workers.
lem solving. The componential theory of creativity Special attention should be paid to managing
focuses on the expertise, creative-thinking skills, and creative workers. One should provide excellent tools
task motivation of creative people. and resources, give creative people flexibility, turn
A major strategy for becoming creative is to over- down ideas gently, and employ creative people to
come traditional thinking, or a traditional mental manage and evaluate creative workers.
set. Also, it is necessary to break down rigid thinking Eight additional leadership initiatives that
that blocks new ideas. enhance innovation are the following: continually
Creative thinking can be enhanced by systemati- pursue innovation; take risks and encourage risk
cally collecting fresh ideas and brainstorming. Goals taking; emphasize collaboration; acquire innovative
are an important part of brainstorming. Two varia- companies; avoid innovation for its own sake; use
tions of brainstorming are the 6-3-5 method and loose-tight leadership; integrate development and
extreme thinking. A spin off of brainstorming is the production; and recognize hidden opportunities
pet-peeve technique, in which a group thinks of all in flops.
KEY TERMS
Innovation Experience of flow Kitchen for the mind
Creativity Pet-peeve technique
Guidelines for Action and Skill D e v e l o p m e n t 343
Tom Freston has a long career of being a creative heels). What effect do you think this dress code
leader and managing creative people. His current as- has on creativity?
signment is the chief executive of the part of Viacom 4. In what way does your current program of study
that is home to cable networks such as MTV and contribute to your ability to solve problems
VH-I, as well as movie studio Paramount Pictures. creatively?
Freston offers five tips for managing a creative 5. The opinion has often been expressed that too
organization that reinforce several ideas already much emphasis on teamwork inhibits creativity.
presented in this chapter. 49
What do you think of this argument?
6. What is the underlying process by which
1. Put great creative people at the top.
creativity-building exercises, such as the pet-peeve
2. Ensure that ideas flow from the bottom up with
technique, are supposed to increase creativity?
a minimum of hierarchy.
7. How might a manager physically lay out an
3. Maniacally know your audience.
office to improve the chances that creative
4. Hire passionate, diverse people.
problem solving will take place?
5. Have a lot of fun.
8. Why do many people believe that if you
emphasize being efficient, such as using the
Discussion Questions and Activities quality-improvement process Six Sigma,
creativity and innovation are likely to suffer?
1. Give an example of creativity in business that
does not relate to the development or marketing 9. Critics of Dell Computer claim that the company
of a product or service. is not innovative, even calling Dell the Wal-Mart
2. Is it important for the leader to be creative and of technology companies. In what way do you
think Dell is innovative, or not innovative?
innovative? Or, should he or she simply hire
creative and innovative group members? 10. Speak to the most creative person you know
3. In many companies, it is expected for manage- in any field, and find out if he or she uses any
rial and professional workers to wear formal specific creativity-enhancing technique. Be
prepared to bring your findings back to class.
business attire to work (such as suits and high
C o n t r a c t o j ^ ^ i o j i s e d to make dozens of phone handling dirt. "Getting rid of dirt was a difficult task
calls to find d u ^ > r a place to dump it can instead that required calling a lot of different people, many
make a single call to DirtMaker. The 35-employee, of whom weren't the most scrupulous," says Rossi.
$20 million company matches dirt buyers and He thought a web site would be a good way to match
sellers, and tests and transports the soil. "We're the players and mentioned the idea to Matheson,
like a dating service for dirt," says Dave Rossi, who who has a Ph.D. in computer science from Princeton
cofounded the Los Gatos (Calif.) dirt broker with his and an M.B.A. from the Wharton School at the Uni-
wife, Lesley Matheson. versity of Pennsylvania. Matheson, 47, went to work
Rossi, now 37, was working as a manager for a building a local search engine that linked dirt buyers
commercial construction company in 1999 when he and sellers based mostly on location—years before
realized how much time and effort went into Google and Yahoo! rolled out their own local search
344 CHAPTER 11 I Creativity, Innovation, and Leadership
capabilities. Says Matheson, "In some respects, we Rossi handles business development, including a
were ahead of our time." new partnership with Home Depot. Landscapers, ho
The couple tapped their savings and pooled funds meowners, and other customers at sixty Home Depot
from eight investors, raising $1.7 million to launch stores can place orders in the store and get soil, bark,
DirtMarket.com. But contractors didn't embrace the or rock delivered through DirtMarket. Rossi expects
site. "Most didn't even have email," says Rossi. Unde the service to be in 500 stores, primarily in the West,
terred, they used the technology Matheson developed in the next three years.
to become dirt brokers, directly matching contrac An outsider commented, "It seems Rossi and
tors who pay them to remove dirt with those who Matheson have hit pay dirt."
pay them to find it. DirtMarket takes a cut on both
sides of the transaction, with profit margins averag
ing around 25 percent. Questions
In 2004, the company spotted another niche.
1. In what way have Rossi and Matheson shown an
When a project involves a lot of excavation, a con
ability to identify an opportunity?
struction company typically hires an engineering
2. In what way have the operators of DirtMarket
firm to remove dirt from the site, which can account
overcome traditional mental sets, or thought
for as much as 75 percent of a project's cost. "We
outside the box?
always thought the process was backwards," says
3. To what extent do you think that Matheson's
Rossi. So DirtMarket started an engineering con
having a Ph.D. in computer science and an
tracting division that oversees a project, including
M.B.A. helped her become a leader in the dirt
hiring an engineering firm, handling the digging, and
business?
removing the dirt. About 80 percent of the company's
4. What might be a possible threat from the exter
revenues now comes from this division, which it
nal environment that could hurt the business
markets primarily by word of mouth. Says Rossi,
model of DirtMarket?
"We have a lot of repeat customers."
5. To try out your creative thinking today, make up
The couple, who met on a blind date, has divided
a joke about DirtMarket. (In this case, dirty jokes
the tasks of running the company according to their
are welcome.)
complementary strengths. Matheson, the company's
president, manages operations. "I'm happy working Source: Excerpted from Sarah Max, "The Good Earth: Dirt
in an office, surrounded by computers," she says. Market Finds Riches in All Things Dirt," BusinessWeek
"Dave's the gregarious, hand-shaking guy." As CEO, SmallBiz, December 2007/January 2008, p. 022.
this business as much as I can" (Wall Street Journal, says Montagna. "I think the fact that Murphy has
March 6, 2007, p. B2). worked for mature retailers is a big help because
Fisher had to address the high turnover in key certainly Gap is mature. He has a track record of
positions that plagued the 3,100-store company dur- success so hopefully he can do the same again"
ing 2006 under previous CEO Paul Pressler. Fisher (TheStreet.com, pp. 1, 2).
said he would examine whether the company has too With more than 20 years of retail experience,
many management layers at headquarters. He also Murphy has been credited for reinvigorating retail
said the retailer would return more decision-making brands in food, health and beauty, and books. "Glenn
power to leaders of the Gap, Old Navy, and Banana is known for being a decisive leader with great retail
Republic brands. "We've become too bureaucratic instincts who understands his customers," Fisher
and overly analytical," he said. "That's not appealing said. "He has revitalized major retail brands by of-
to the people in merchandising and design" fering new products and significantly improving the
(Wall Street Journal, March 6, 2007, p. B2). store experience. He's well qualified to return Gap
Fisher also has to grapple with long-standing Inc. to the level of sustained performance we all
problems at the brands that former CEO Pressler expect" (TheStreet.com, p. 1).
took over in 2002, but has never recaptured the Howard Davidowitz, chairman of a New York-
excitement of its peak in the late 1990s, when offices based retail consulting and investment banking firm,
were move to casual dress and commercials such as says he is puzzled by Gap's choice of leadership. "The
"Khakis Swing" were hits. people who drive companies are fashion geniuses—
"We've got to have a clear point of view about who the people who fall on their face are people who are
we are," Fisher said. He said the "clean" depart- not," Davidowitz says (TheStreet.com, p. 2). Other
ment in Gap stores that stocks classic work basics observers mentioned that Gap has strong merchants
is a good reflection of Gap's style, and "we're going heading its three divisions.
to be grounded in khaki and denim, as that's where
the roots of this business are" (Wall Street Journal,
March 6, 2007, p. B2). Questions
The Old Navy brand, with 1,008 stores, hasn't kept
1. What steps do you think CEO Murphy should
up with the relentless progress made by discounters
take to enhance innovation at Gap?
such as Target Corp. that have grabbed market share
2. Is Fisher thinking too narrowly by insisting that
by making their clothes more stylish while holding
Gap should stick to being grounded in khaki and
down prices. Target adds excitement by hiring high-
denim? Explain your reasoning.
end designers to create products lor its stores that
3. What is your opinion of the wisdom of hiring a
are available for only a short time.
non-fashion executive to revitalize Gap?
In July 2007, Gap surprised Wall Street by naming
4. What is your opinion of the statement that be-
Glenn Murphy, a Canadian drugstore executive, as
ing too analytical and bureaucratic might have
its new CEO. Murphy had been chairman and chief
interfered with the creativity of Gap?
executive of Shoppers Drug Mart. Many observers
5. How is Gap doing these days? Does the finan-
had assumed the company would recruit someone
cial performance of the firm justify having
from the apparel sector, especially given Gap's long
brought Murphy on board? Or is Murphy still
string of fashion missteps.
around?
"One of their key criteria was apparel experience
and Murphy doesn't seem to have that," said Mark Source: Amy Merrick, "Gap Aims to Unleash Creativity for
Montagna, vice president of specialty retail for C. L. Revival," Wall Street Journal, March 6, 2007, p. B2; Suzanne
King & Associates. "He's walking into a really tough Kapner, "Surprise Greets Gap's CEO Choice," New York Post
job because here's the biggest fish in specialty ap- (nypost.com), July 27, 2008; Pia Sarkar, "Gap's CEO Pick
parel, and he's got to turn around all three divisions," Surprises," TheStreet.com, July 26, 2007.
346 CHAPTER 11 I Creativity, innovation, and Leadership
M y Leadership Portfolio
You g u e s s e d it. F o r t h i s c h a p t e r ' s e n t r y i n t o y o u r high rise, b u t nobody seems to go beyond expressing a
l e a d e r s h i p portfolio, r e c o r d a n y c r e a t i v e o r i n n o v a little sympathy.
tive i d e a y o u h a v e h a d lately in r e l a t i o n t o o r g a n i z a
tional activity, i n c l u d i n g s c h o o l . After r e c o r d i n g t h e Then I got a brainstorm. I thought, "Why not orga
idea, a s k yourself w h a t p r o m p t e d y o u to d e v e l o p it. nize a 'Socks for Seniors' program?" My friends a n d
If y o u h a v e n o t c o n t r i b u t e d a c r e a t i v e i d e a recently, I would buy dozens of pairs of socks that usually
y o u r a s s i g n m e n t is t o d e v e l o p a c r e a t i v e i d e a w i t h i n sell for about $3.00 a pair from deep discounters
the next t e n d a y s . If p o s s i b l e , m a k e p l a n s t o i m p l e like dollar stores. We could raise some of the money
m e n t t h e idea; o t h e r w i s e , it will n o t lead t o i n n o v a by returning bottles a n d cans with deposits. A few
tion. H e r e is a n e x a m p l e of a c r e a t i v e c o m m u n i t y friends of mine m a d e a b u n c h of telephone calls,
initiative t a k e n b y Alexis, a m a r k e t i n g m a j o r : and we raised $175 in n o time for o u r project. Then
one cold night, we visited the high rise, rang a few
In my neighborhood, there is a ten-story high-rise doorbells, and told the residents what we were u p to.
building, with practically all of the tenants being We were allowed in to start distributing the socks. T h e
senior citizens w h o live on limited pensions. S o m e smiles a n d words of appreciation we received were
of the folks in the building are in their eighties, a n d e n o r m o u s . My idea is soooo good, I plan to d o it every
even nineties. The building is old, a n d not particularly year. My friends a r e with m e , a n d we think that if we
warm, especially for people with poor blood circula post this idea on a w e b site, it might spread a r o u n d
tion. I've often heard friends and family members sa\ the country.
should do something to help the seniors in the
CreafTyj*y4n Business
Here is агИ^рогЫЬку to interact with the work of creativity guru Michael Ray of Apply the chapter concepts!
Stanford Univj^ity. Visit www.michael-ray.com. Look over the site, and then go to Visit the Web and complete
this Internet skill-building
"take our survey." The survey gives you the opportunity to examine your creative
exercise to learn more
process and the type of work that brings meaning to your life. Your questionnaire about current leadership
will be scored, and you will be provided with comparative results from work done at topics and trends.
Stanford. After you have completed the experience, reflect on these questions: