CHAPTER 11
Creativity, Innovation, and Leadership
The purpose of this chapter is to assist readers in developing the creative problem-solving approach
required to be an effective leader, and also to acquire knowledge about fostering creativity in the work
unit and organization.
CHAPTER OUTLINE AND LECTURE NOTES
Creative problem solving is an important requirement for effective leadership at every organizational
level. The role of a creative leader is to bring into existence ideas and things that did not exist previously,
or that existed in a different form. Innovation refers to creating new ideas and their implementation or
commercialization.
I. STEPS IN THE CREATIVE PROCESS
An important part of becoming more creative involves understanding the stages involved in
creativity, the production of novel and useful ideas.
II. CHARACTERISTICS OF CREATIVE LEADERS
Creative leaders, like creative workers of all types, are different in many ways from their less
creative counterparts. Creative leaders challenge the status quo and are flexible enough to overcome
the traditional way of looking at problems.
A. Knowledge. Creative problem solving requires a broad background of information, including
facts and observations. Being creative often involves combining two or more things in a new
and different way.
B. Cognitive Abilities. Creative problem solvers have characteristically well above-average
intelligence. They maintain a youthful curiosity throughout their lives, within and outside
Chapter 11: Creativity, Innovation, and Leadership
C. Personality. Creative people tend to have a positive self-image without being blindly self-
confident. They also have the ability to tolerate the isolation necessary for developing ideas.
D. Passion for the Task and the Experience of Flow. A dominant characteristic of creative
people is a passion for their work, or high intrinsic motivation. Passion for the task and high
III. OVERCOMING TRADITIONAL THINKING AS A CREATIVITY STRATEGY
Creative problem solving requires an ability to overcome traditional thinking. The creative person
often looks at problems in a new light and transcends conventional thinking about them. The central
task in becoming creative is to break down rigid thinking that blocks new ideas. The process of
overcoming traditional thinking has been characterized in several ways. The most familiar is that a
creative person thinks outside the box.
IV. ORGANIZATIONAL METHODS TO ENHANCE CREATIVITY
Here we describe several creativity-enhancing methods, including a review of brainstorming. The
leader plays a dual role in implementing creative problem-solving techniques: facilitating group
interaction and providing a fair share of creative output.
A. Systematically Collecting Fresh Ideas
The more ideas you try, the greater the probability of finding one that works.
2. Establishing idea quotas. To facilitate having fresh ideas, the leader/manager can
3. Make whiteboards regularly available for sketching ideas. A wide range of companies
encourage employees to doodle their ideas and draw diagrams to explain complicated
Chapter 11: Creativity, Innovation, and Leadership109
4. Granting tinkering time .A formal policy approach for collecting fresh ideas is to
B. Brainstorming
Brainstorming is the best-known method for creativity improvement (as well as for creative
problem solving). To encourage creativity during the idea-generating part of brainstorming
potential solutions are not criticized or evaluated in any way. Brainstorming can include goals
C. Using the Pet-Peeve Technique
The pet-peeve technique is a group method of identifying all the possible complaints others
might have about one’s organizational unit, thus improving service. Through brainstorming,
D. The Morality of Enhancing Creativity
Gerald Sindell emphasizes the need for creative workers to place their work in a moral
context. Every idea and product has potential harmful consequences in minor and major
V. SELF-HELP TECHNIQUES TO ENHANCE CREATIVE PROBLEM SOLVING
All creative problem-solving techniques aim to increase mental flexibility. The six strategies and
techniques reported here supplement the organizational programs described previously.
A. Practicing Creativity-Enhancing Exercises
An established way of sharpening creative thinking is to engage regularly in activities that
anything for three days?”
B. Staying Alert to Opportunities
Chapter 11: Creativity, Innovation, and Leadership
The ability to spot opportunities that other people overlook characterizes creative leaders.
C. Maintaining an Enthusiastic Attitude Including Being Happy
D. Maintaining and Using a Systematic Place for Recording Your Ideas
Creative ideas can lead to breakthroughs for your group and your career, so they deserve the
recommended to keep two copies of the ideas, one at home, and one in the office.
E. Playing the Roles of Explorer, Artist, Judge, and Lawyer
Be an explorer by getting ideas from people in different fields. Be an artist by stretching your
F. Engaging in Appropriate Physical Exercise
Engaging in physical exercise is a well-accepted method of stimulating creativity. The
G. Soliciting Feedback on Your performance
Even if you are not asking for feedback on creative suggestions exclusively, the feedback
VI. ESTABLISHING A CLIMATE FOR CREATIVE THINKING
In addition to being a creative individual, a leader must establish a climate conducive to creative
problem solving. A foundation step for fostering organizational creativity is to establish a vision
and mission that include creativity. The leader also needs the right organizational culture, and
extensive use of the techniques described in this chapter.
A. Fostering a Culture or Originality
The larger the number of workers who think originally, the more likely that innovation will
B. Leadership Practices for Enhancing Creativity
Nine leadership and managerial practices are particularly helpful in fostering creative
thinking.
1. Hire creative people from the outside and identifying creative people from within. If
you want an innovative environment, hire innovative people. .
4. Ample supply of the right resources. Time and money are the most important resources
for enhancing creativity. Under some circumstances, setting a time deadline will trigger
creative thinking because it represents a favorable challenge.
5. Effective design of work groups. Work groups are most likely to be creative when they
are mutually supportive and when they have a diversity of backgrounds and
perspectives. Encouraging face-to-face contact is helpful, yet allowances must be made
for people who work best alone.
8. Have favorable exchanges with creative workers. A study with 191 research and
development specialists found a positive relationship between LMX ratings and
creativity of workers as measured by supervisory ratings.
C. Methods of Managing Creative Workers
Choosing effective methods for managing creative workers is also important. Suggestions are
as follows:
1. Give creative people tools and resources that allow their work to stand out.
2. Give creative people flexibility and a minimum amount of structure.
VII. LEADERSHIP PRACTICES FOCUSED SPECIFICALLY ON ENHANCING INNOVATION
All leadership and management practices that enhance creative problem solving enhance
innovation. Consider also the following:
1. Emphasize transformational leadership if possible.
Chapter 11: Creativity, Innovation, and Leadership
2. Continually pursue innovation.
3. Take risks and encourage risk taking.
VIII. GUIDELINES FOR ACTION AND SKILL DEVELOPMENT
Being perceived as creative could have a downside in terms of being promoted. The imaginative
person who wants to climb the leadership ladder should frequently remind others in a subtle way
that he or she is business oriented.
COMMENTS ON EXPERIENTIAL EXERCISES
Leadership Self–Assessment Quiz 11–1: The Creative Personality Test
Based on experience with thousands of students, we believe that this quiz contributes to assessing a
Leadership Self-Assessment Quiz 11-2: The Intuitive Problem-Solving
Style Quiz
In recent years, the contribution of intuition to creativity as well as decision making in general
Leadership Skill–Building Exercise 11–1: Two Brainstorming Scenarios
The brainstorming scenarios presented here are likely to be intrinsically interesting to many students.
A. Choose an Effective Brand Name
B. The Net Billion Dollar Brand
Chapter 11: Creativity, Innovation, and Leadership113
Leadership Skill–Building Exercise 11–2: The Multiple Uses Technique
This classic creativity exercise still has value, and was used about five years ago in a Staples
Leadership Diagnostic Activity 11–1: Assessing the Climate for
Innovation
Leadership Skill-Building Exercise 11-3: My Leadership Portfolio
A highly practical outcome of this portfolio exercise is that it results in recording innovative ideas,
sensitizing the student to the importance of being mindful of opportunities to be creative.
Leadership Skill-Building Exercise 11-4: The Multimedia Presentation
COMMENTS ON DISCUSSION QUESTIONS AND ACTIVITIES
1. Give an example of creativity in business that does not relate to the development or marketing of a
product or service.
of components, leading to cost savings for the auto manufacturers.
2. How might a leader being highly creative inspire subordinates?
A leader being highly creative might inspire subordinates in several ways. First, the leader’s
creativity might serve as a model for subordinates to also be creative. Second, the leader might be
Chapter 11: Creativity, Innovation, and Leadership
3. Is it important leaders to be creative and innovative? Or, should they simply hire creative an
innovative group members?
of creative people to the staff. Third, the creative leader contributes to an atmosphere of creativity.
4. Assume that you are the leader of the paperclip manufacturing division of a company. Do you think
it would be worth your time and that of your group, to attempt to improve the design and intended
use of the paperclip?
The design and use of paperclips has remained stable for many years, but who knows when a
disruptive design will emerge? It is therefore probably worth some time to spend some research and
5. The opinion has often been expressed that too much emphasis on teamwork inhibits creativity.
What do you think of this argument?
The argument that too much teamwork inhibits creativity is sometimes true. Attempting to satisfy
6. Describe a leadership situation in which you think a leader being a creative thinker would be more
important than him or her being charismatic.
In some situations the group has an urgent need for an idea, and the need for that idea is more
a hurry.
7. Several people have written that Twitter is one of the most creative developments in the history of
business and the world in general. What is your opinion about Twitter as a powerfully creative
development?
Twitter has such an impact on the world that it is easy to argue in favor of its merits as a major
8. What do you think the next creative breakthrough in business will be that will rival e-commerce
and mobile phones in importance? (Loads of product planners and business leaders are waiting for
your answer.)
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The student who has a plausible response to this question might not want to share the idea, but
9. Assume that you are convinced that creativity is a legitimate part of a leader’s role, what percent of
your working time do you think you should invest in creative thinking? Explain your reasoning.
Considering that most leaders have many demands on their time, not much time is available for
thinking about creative improvements. Yet, a small amount of time can have a great payoff.
10. Speak to the most creative person you know in any field, and find out if he or she uses any specific
creativity-enhancing technique. Be prepared to bring your findings back to class.
Brainstorming is used so frequently that most of the people polled for answers to these questions
PLAUSIBLE RESPONSES TO CASE QUESTIONS
Leadership Case Problem A: The T–Shirt Production Innovators
This case illustrates how creative thinking in the form of spotting an opportunity can lead to the
building of a business enterprise. Creative thinking was also required to refine and commercialize the
business model.
1. In what way have the founders of Teespring demonstrated creative and innovative leadership?
2. In what way does Teespring provide its customers an opportunity to develop their creativity
skills?
Customers must be creative if they want to earn any money form their tee-shirt ideas. The
3. What is your evaluation of the prospects of Teespring being sustainable in the sense of lasting a
long time as a business?
Teespring appears to have two key advantages in terms of lasting a long time as a business.
Chapter 11: Creativity, Innovation, and Leadership
Associated Role Play
This role play provides an opportunity to deal with problem of having one’s creative ide or business
defensive. The student who plays operations manager, nevertheless must have a lot of courage.
Leadership Case Problem B: “How Can We Enhcourage a Few
Disrupters?”
A key theme this case illustrates is whether leadership can force creativity among group members.
The case also illustrates that the future prosperity of a firm might depend on innovation in the form
of disruption.
1. What do you recommend that leadership at Luxury Design do to facilitate having a disrupter
within the company?
2. What thought should Arianna and the other members of the leadership team at Luxury Design
give to going beyond the confines of the office-furniture industry in order to be a disrupter?
Although going beyond the confines of the office furniture industry in order to be a disrupter is
a grand idea, it has many limitations. One problem is resources because Luxury Design is
3. In what way is this case about creativity and innovation?
This case is clearly about creativity and innovation because industry disruption depends heavily
Associated Role Play
This role play deals with an important use of workplace creativity. The head of new product