In a recent, much-referenced study conducted by IBM Global Business Services, a group of over 1,500 CEOs in 60 nations and 33 industries agreed that “creativity” is now the most important leadership quality for success in business.

Not “global focus,” not “integrity,” not even much heralded “sustainability.” But “creativity.”

Steven Tomasco, of IBM Global Business Services, found the result surprising, considering that we have just come out of (hopefully) an historic economic downturn the likes of which most of these CEOs have never experienced in their professional lives.

In terms of actual percentages, 60% of those surveyed ranked “creativity” in the #1 spot. Second was “integrity.” (With all due respect to Steven Tomasco,we would suggest this is the more surprising result in this era of “the end justifies the means” corporate management.)

In fact, for those fortunate enough to have had access to the crystal ball of business success over the past several years, in our new “innovation economy,” that “creativity” holds the #1 spot is hardly surprising. In fact, it is expected.

If there is a secret of business success today, it is the willingness and ability to continually reinvent one’s value proposition, deliver ever-increasing value to customers and recognize that the consumer calls the shots—every shot.

Consider that 88% of CEOs surveyed also ranked “getting closer to the customer” as the #1 area of focus, followed closely by “people skills” (81%) and “insights and intelligence” (76%).

Creativity, people skills, insights/intelligence… it all boils down to a consumer-driven success model.

The dominant businesses in today’s marketplace understand this. They work diligently to stay one step ahead of the consumer’s need. It’s no longer about the ability to respond—it’s about the need to anticipate. Give your customers what they want—before they even know they want it—and you will rise to the top of the competitive corporate food chain. Fail to do so, even for a moment, and prepare to fall, rapidly.

So what does creativity have to do with all of this? Why is it necessary to “think outside the box” in order to meet consumer demand?

Because your customers don’t have a clue what they will want tomorrow—even though they want it now. And they are not going to tell you; that’s too much work. They want you to tell them; and when they see it, they’ll know it. Tell them what they want, and if you are correct, you win the brass ring. And if you don’t, someone else most certainly will.

There’s a bit of alchemy involved in this, the ability to ask, “What if?”

“What if my customers had <fill in the blank>? How would it make their lives better, easier, more productive?”

This business model is not for the faint of heart. It is not built upon market data (backwards focused), proven successes (backwards focused) or established business practices (backwards focused). It is built upon vision…and the ability to manifest it.

Apple understands. So does Google. Microsoft did once. So did AOL and iomega and countless others who have tripped, stumbled and gone plummeting off the front pages of the business press. Business success means redefining oneself daily. These surveyed corporate leaders know this, even if they are not presently doing it. Those who will ultimately act upon it will be around to respond to the next IBM survey. Those who don’t???

What if? That is the pressing question. Can you provide the answer?

I used to work at this ad agency where the manager of the creative team, who considered himself the most talented guy in the place, was overly involved in the company’s day-to-day idea generation process. He  insisted on participating in every important brainstorm session the agency held; and being the top guy in the department, he got his way.

Don’t misunderstand—he did come up with his share of ideas, both good and bad.

But perhaps his most meaningful and influential contribution to the brainstorms was the inspiring way in which he would often open a session.

“You know how they say there are no bad ideas?” the boss would begin. “That’s not true; there are bad ideas,” the guy who held in his hands the fate of everyone’s career would continue. “Really bad ideas. Ideas so bad, they should never be spoken out loud.”

You can pretty much imagine where the sessions went from there.

The more junior people in the room, or those whose bellies were just the least bit yellow, would keep their mouths dutifully shut—except to offer an enthusiastic, “Great idea!” when the boss would serve up his creative contributions.

Those of us with a bit more experience (or foolhardiness) would carefully toss our ideas into the ring, more often than not only to have them instantly shot down by our leader. “No, no. That’s no good. Anybody else got anything?”

At the end of these sessions, we would almost always walk away with an idea. His idea.

Funny or sad, but definitely true, this true story exemplifies perfectly the single most devastating thing you can bring with you into a brainstorm—ego.

We often say, half-jokingly, “Kick out the boss” if you want to have a successful brainstorming session. While not always practical in real life, the idea behind the statement is nonetheless sound. Anyone who dominates a brainstorm, either due to seniority or just plain old arrogance and obnoxiousness, will most surely be its ruin.

The real magic and power of a well-executed brainstorm is the superior strength of the group mind—individuals, somehow working together in concert, towards a common goal. Bringing together diverse points-of-views, talents, experiences, etc. expands thinking, increases contribution and allows a well functioning team to build upon each other’s thoughts. The result: a greater breadth and depth of ideas that are far more inspired and developed than those any single individual could produce in the same time frame.

For all the brainstorming-naysayers among you, yes, there have been numerous studies that suggest individual ideation is more effective and producing ideas than group brainstorming. And no wonder. The vast majority of brainstorms are poorly planned, and facilitated by individuals who have had no formal training in the process. They are, in one way or another, like the dysfunctional examples I described at the top of this article: doomed from the start.

But when well prepared and expertly guided, a brainstorm is like a well-rehearsed symphony orchestra—each individual player sharing his or her talent and skill, working together to weave an intricate tapestry that only gets bigger and more beautiful as each new idea is introduced and expanded upon.

So if you are the one in control and just want to push your ideas forward (as ill-conceived and unenlightened as that management style may be), forget brainstorming. Save everyone the time, energy and humiliation, and just dictate the direction you demand.

But if you want to transform your organization into a super-human, innovative-thinking machine, do the right thing. Kick out the boss.

Or at least the boss’s ego.

A recent article on CNN.com, “Learn the five secrets of innovation,” by Mark Tutton, focuses on the results of a six-year study conducted by professors from Harvard Business School, Insead and Brigham Young University. 3,000 executives and 500 innovative entrepreneurs were involved in the study, which also included interviews with the likes of Jeff Bezos (Amazon) and Michael Dell (Dell Computers).

The results of the study are hardly earth shattering. But they are important for anyone interested in developing their innovation chops and enjoying the resulting rewards.

The verdict? “Coming up with brilliant, game-changing ideas is what makes the likes of Apple’s Steve Jobs so successful…”

Stating the obvious? Well maybe not to everyone.

Business leaders around the world are struggling to crack the code of innovation. They focus on re-structuring, re-invention, short-sighted innovation initiatives, revolving door consultants, creativity boot camps, etc.

But apparently what it all comes down to is the ability to generate great ideas. Do that well, and all the other stuff more easily falls into place – if for no other reason than the fact that you are generating great ideas about those things, too.

From "Learn the five secrets of innovation," by Mark Tutton, CNN.com

According to the study, there are 5 key skills necessary to be a prolific innovator (a.k.a. idea-generator) – associating, questioning, observing, experimenting and discovering.

It seems these skills have more to do with how one acts as how one thinks. Prolific innovators are always proactively searching for new ideas, new connections, new perspectives. Theirs is not a passive activity; they don’t sit around waiting for the Muse to visit or the lightning bolt to strike. They pursue ideas daily and relentlessly.

It is this skill set, this business activity, that will forever more be the definer of success.

So how can you ensure you have a whole army of Steve Jobses generating innovative thinking in your organization?

Remove the impediments and allow it to happen. Create an environment that facilitates idea-generation. Nourish it with acknowledgment, training, tools – and rewards for achievement. In a recent post here, “Google’s 80/20 Formula – It can work for you!” we briefly described Google’s take on the issue… encourage employees to spend 80% of their time on core projects, and 20% of their time on “innovation” activities that peak their own personal interests.

How much does your organization to do foster innovative thinking? Do you invest 20% in it, like Google does? If you did, what returns might you realize?

The ability to generate innovative thinking is not an inherent trait; it is based on a set of skills that anyone can learn and develop. Exposing yourself to new ideas and observing the world around you can drive innovation.

All it takes is doing it. As one of the men behind the study, Insead’s Hal Gregersen, put it, “Studies have shown that creativity is close to 80 percent learned and acquired,” he told CNN. “We found that it’s like exercising your muscles — if you engage in the actions you build the skills.”

Start building your innovation muscles now. And watch the ideas start to flow.

After all, when you cut through all the hype and Ivy-tower debate, innovation at its core is really just a child’s game of connecting the dots in new and imaginative ways.

In business and the media, the words creativity and innovation are used almost interchangeably. Some people believe you have to be creative in order to create innovative things. Others would say, without innovative thinking there is no creativity. Both points of view are perfectly logical, but neither explains the relationship (or interrelationship) between the concepts we call creativity and innovation.

To begin with, creativity and innovation are not synonymous; there is a clear and important distinction between them. It is especially critical for businesses to understand this distinction before instituting a new organization-wide innovation imitative.

Before discussing this distinction, however, it is important to note that creativity is a mental ability anyone is capable of, not just the artists among us. When most of us think of creative individuals, we often point out a special talent such as the ability to draw, paint, sculpt, write, play music, sing, dance, etc. Creativity is much more than winning Mother Nature’s genetic lottery for artistic ability. Creative potential exists in all of us.

Creativity is most often defined as the mental ability to conceptualize (imagine) new, unusual or unique ideas, to see the new connection between seemingly random or unrelated things.

Innovation on the other hand, is defined as the process that transforms those forward-looking new ideas into real world (commercial) products, services, or processes of enhanced value. The result of such a transformation can be incremental, evolutionary or radical in its impact on the status quo. In other words, it can represent a natural step forward in a concept’s development, a leap to the next generation of that concept, or a completely new and different way of doing something altogether.

If we use Steve Jobs, the CEO of Apple and his company as an example, we could say that Steve Jobs is creative because he has the forward-thinking ability to imagine new ideas for products, and also to see new connections between different things (such as combining an iPod, the iTunes store, an Internet browser, a camera, a GPS, and a cell phone to create the iPhone).

Apple the company is innovative in the manner in which they interpret and execute those forward-thinking ideas to create inspired, highly desirable products of value. The company’s innovation-driven culture continuously strives to elevate the aesthetics, functionality and simplicity of their product design to museum quality levels.

Why is this distinction between creativity and innovation important?

Because it is impossible to develop a truly innovative organization if creativity is ignored or stifled. And likewise, without effective processes in place to transform creative ideas into practical, real world, value added application, creativity is of no commercial value whatsoever.

Once you understand the distinction between creativity and innovation, the road to success begins by liberating, nurturing and inspiring all the creative capital in your organization.

Liberate creativity, and watch innovation flow.

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Innovation has become the benchmark of success, particularly in the current business environment. Companies in every industry are stepping up their efforts to become more innovative in the way they work, communicate and produce the goods and services they sell. But with such an objective, the obvious challenge becomes, how to identify the individuals within an organization who possess the greatest potential to innovate.

While everyone has the innate ability to engage in creative thinking, there are seven common traits that innovative leaders like da Vinci, Edison, Henry Ford and Steve Jobs share; seven traits that propel them to think outside the confines of conventional wisdom and imagine breakthrough concepts that change the way you and I live and experience the world.

The seven traits of highly innovate thinkers are:

1. Curiosity
Curiosity is the first step toward discovery. It is the “beginner’s mind,” a deep, child-like sense of wonder about the world, the relationship between different things and how things work.

2. Imagination
Before you can develop a new idea, you must first be able to conceive it, to envision the very possibility that it could exist. Innovation is fueled by leaps of the imagination, making novel new connections between seemingly disparate ideas, concepts or objects.

3. Intuition
Making decisions based on facts and figures is fine in many instances. But true innovation is more often born from that internal “knowing,” the guiding force, sixth sense or gut feeling to follow one’s instincts, no matter how unconventional or illogical the direction.

4. Inventiveness
The ability to change the status quo requires an inquisitive passion for “tinkering.” Innovators possess the desire to arrange and re-arrange ideas or things in new and different combinations.

5. Playfulness
It is when you get “lost in your work” that amazing things begin to happen. Time, self-consciousness, seriousness and any sense of limitation falls away, and challenges are handled with ease. The attitude of playfulness is, “Everything is possible.”

6. Flexibility
The capacity to suspend judgment and embrace two (or more) seemingly contradictory or unrelated viewpoints at the same time helps create a dynamic tension that ultimately stimulates creative resolutions (solutions).

7. Persistence
All the creative talent in the world is of no value if you give up before the work is done. Persistence, the passion, willpower and enthusiasm to overcome setbacks and discouragement, allows innovative thinkers to keep trying new possibilities until success is achieved.

Of course, there is no secret recipe for innovation. It requires an ongoing commitment on the part of an organization and the individuals within to relentlessly pursue new, better ways of doing business, and to never accept anything less than the best possible outcome. But these seven key traits are an excellent starting point for building your innovation foundation.

Start to recognize the individuals around you who naturally possess these traits, and encourage them to make frequent use of them. And nurture these traits in others who aren’t as naturally inclined. Acknowledge and reward creative thinking, responsible risk-taking and questioning the status quo. And in no time you will have fostered a thriving culture of innovation which can lead to only one thing: greater success.