CREATIVITY IN ORGANIZATIONS

A FORTHCOMING NEW COLLEGE TEXTBOOK BY SAGE PUBLISHING

In recent years there has been a growing interest in creativity and innovation in organizations. Such interest is not merely academic, but extends to the practical world of organizations. Indeed, many business periodicals—such as Business Week, Fortune, and Fast Company—have featured special issues dedicated to enhancing creativity and innovation. This should come as no surprise, for we are entering what can now be called a “creative economy.” However, this new economy is not entirely due to the rise of new information technology, but has much more to do with unleashing the power and creativity of the human mind. [1] Increasingly, the basis of wealth is the capacity to create ideas that spawn entirely new products and services that have value to diverse markets. In short, wealth creation based on an economy of ideas is emerging as the new competitive landscape in the 21 st century.

This emphasis on idea generation not only places creativity center stage, but shifts investment in human capital, calling into question the basic tenets of how organizations are designed and people are managed. Nothing short of a new managerial mindset is needed: being open to new ideas, people and places; harnessing creative energy; unleashing people rather than managing and controlling them; and encouraging rather than constraining creative capacities.

In simple terms, creativity is the process that generates new and useful ideas, and innovation converts those ideas into marketable products or services. Yet the transition from mind to market, from the creative idea to the saleable product, is contingent on effective management and organization. Managing for creativity and innovation is now essential, especially since organizational longevity depends upon the capacity for continuous change and reinvention. Whether such change involves the creation of new and useful products, valued services, or process improvements, organizations face the challenge of tapping the creativity of their people, and enhancing their capabilities for innovation. Even the most conservative organizations are not immune to the forces of change; they too must eventually find ways to be creative or face obsolescence.