It’s no secret that companies in every industry in every part of the world are scrambling to find new and better ways of doing business. Innovation has emerged as the 21^st century Darwinian competitive edge for survival. It’s no longer enough for companies to work smarter or more efficiently; fierce global competition, rapidly changing technology and more demanding customers are forcing organizations to re-adapt and re-invent virtually everything they do, what they offer and how they operate.

The global economic slump only makes this need for innovation more critical, as companies are forced to do more with fewer resources, attempting to survive the string of unforeseen challenges they are facing, while preparing to take advantage of new opportunities when they eventually surface.

One of the most significant revelations companies will experience on their road to organizational transformation is that realization that while innovation is indeed the driving force in business today— behind the scenes, it’s creativity that drives it.

Once this epiphany has occurred it inevitably leads organizations to ask the simple yet paradoxical question, “Can creativity be taught?”

These two terms, “creativity” and “innovation” are often used interchangeably. However it is important to make a distinction if we are to answer these critical questions. While the various definitions of these two words could fill a volume in themselves, for our purposes we will say that creativity means simply “generating new ideas and concepts, or making connections between ideas where none previously existed.” Innovation is a more involved process, meaning “when a creative idea is transformed into a new way of doing something.” Innovation represents an incremental, evolutionary, or revolutionary change in thinking, products, services or process that generally delivers increased value.

So is it possible for ordinary individuals and teams throughout their organization to be taught how to think creatively? Can they learn how to think outside the proverbial box to solve challenges in new and unexpected ways never before imagined? Is there a “secret formula” for creative genius that can be copied, disseminated throughout the organization, and successfully applied by novices with untested creative prowess?

This question about whether or not creativity can be taught often leads to polarizing discussions. According to a recent on-line survey we conducted, 47% of respondents believed creativity can indeed be taught, 29% thought it is “somewhat” possible for people to improve their creative abilities, and 24% felt you’ve either got it, or you don’t.

Strong and diverse points of view were expressed with comments such as… “Everyone has inherent creativity, but it is often destroyed or suppressed by the education process;” “Not everyone is going to be a Picasso, Shakespeare, Vidal Sassoon or Andrew Lloyd Webber;” and “No it cannot be taught. It must be unleashed.”

When we distill the four most commonly expressed viewpoints on the subject, they are:

• All People are innately creative; so it’s not about teaching creativity, but rather finding ways to help unleash, unlock or inspire it.
• All people are creative, but in different ways. You can only help them improve in the areas in which they’re naturally creative.
• Some people are naturally creative; others are not. But you can teach people how to be more creative.
• Only some people are creative, and you can’t teach it. You either have it, or you don’t.

The lack of consensus on the subject is most likely attributed to the fact that even in the modern business world, creativity (and the creative process itself) is still shrouded in the myth, mystique, misunderstanding and media hype. It also doesn’t help that creativity is considered a notoriously subjective process— a process not easily qualified or quantified by standardized metrics. For all of its allure, creativity is still perceived by most as something magical or mysterious, a special innate talent possessed by a lucky few, blessed with the right DNA. Creativity must be a “gift from the gods.”

A better question to ask

Fortunately for those companies with a strong desire and commitment to develop an innovation-driven culture, there is a more productive (and less polarizing) question they can ask to gain clarity on the subject: “Can our people be taught to think more creatively?”

Consider the difference between “Can creativity be taught?” and “Can our people be taught to think more creatively?”

The beauty of reframing the original question in this new way is that it allows greater discernment in the distinction between the words creativity ( generally thought of as the innate talent or ability to create or perform original works) and creative thinking (the ability to make new connections between ideas or concepts). Perhaps not everyone possesses the natural ability to create or perform a work of art; but surely everyone possesses the ability to make new mental connections if taught effective processes and techniques for doing so.

So no matter how conventional a person’s imagination or creative sensibilities might appear, it stands to reason that in a non-judgmental, supportive environment, with the right structure, training, and proven tools and techniques to engage the mind in new and different ways, a person can be taught to solve challenges by making creative connections they haven’t imagined previously.

Every milestone in innovation begins as a new insight or creative connection in the mind. But businesses don’t need Picassos; they need more creative thinkers. And millions of them are just waiting to be shown the way.

In the Star Wars epic, Luke Skywalker was repeatedly warned by his Jedi Masters not to stray down the path to the dark side of the Force. He was instructed to only use his powers for good, not for selfish gain.

The power of Innovation has a lot in common with the Force; on the side of good it can save lives (antibiotics), transform cultures (the Internet) and even change the course of history (the Declaration of Independence). Over on the dark side, innovative minds can conjure up the atom bomb, credit default swaps and sub prime loans.

One of the benevolent hallmarks of Innovation is that it creates ideas, goods, and services that provide added value to the consumer. Qualities that makes those things “faster,” “better,” “cheaper,” “Longer-lasting,” “less expensive,” and “more comfortable.”

Today’s challenging economic climate is pushing companies to, in the words of Apple, “think different.” To stay competitive (or survive), most companies are looking at ways to maximize the value of their goods and services to attract consumers. In other words, they are bending over backwards to offer customers MORE bang for their precious buck.

However, companies on dark side are finding nefarious ways to do the exact opposite. Instead of engaging in value-adding creative thinking, they spend their time and resources plotting and scheming ways to profit by actually subtracting value! In other words, by finding ways to charge customers for things that used to be FREE, or the same amount for diminished value.

Leading the way down this slippery slope to customer alienation is the airline industry. They seem to have perfected the art of offering low fares to attract customers… and then nickel and dime them to death for things that used to be free. Check that bag…$15 please! Your kid wants a soda…$3, and that seat cushion that can be used as a flotation device should the plane need to ditch in the Hudson River… hummm $$$.

No Federal bailouts for these Bozos to restructure.

Some time ago, Steve Jobs was quoted as saying, “Innovation distinguishes between a leader and a follower;” and that statement has never been more meaningful than it is today. At a time when the even the most fundamental elements of business success are being reevaluated and redefined, one thing becomes increasingly clear: innovation is no longer a “nice to have;” it’s a “must have.” It’s what we call The Innovation Imperative; if innovation distinguished between leaders and followers in the recent past, today it increasingly distinguishes between survivors and the barely breathing. Innovation is the new Darwinism in business; it’s no longer “survival of the fittest,” but “survival of the most innovative.”

The choice facing companies today is simple: innovate, or perish. Those that will survive today’s economic environment and succeed in tomorrow’s are those willing to continually reinvent themselves, their products, their brands, their processes-in short, the way they do business. Many organizations are even looking for innovative ways to innovate, replacing traditional brainstorming techniques with new, more inventive processes like SmartStorming and 3-D Ideation. Introduce the world to the new new thing, the bleeding edge technology, the better mousetrap, the reinvented paradigm and there’s a good bet you’ll remain ahead of the curve and be around to reap the rewards in the future.

The Innovators

The topic of innovation certainly isn’t new; it’s been the business buzz word for several years now. We’ve all read about it in business magazines and heard the reports on financial news stations. Harvard Business School professors lecture on it at conferences and scores of books address it. And the same companies are consistently held up as the elite innovators-Apple, Google, Nintendo, JetBlue, Toyota, Target (and today again, WalMart). And there are hundreds and even thousands more you’ve never heard of, visionary companies that are  seizing the opportunities (yes, opportunities) presented by the current economic phase, breaking the rules, establishing new standards, delivering incredible value, and  then starting that process all over again…and again, and again. These companies come in all shapes and sizes, and exist in every industry-technology, biotech, pharma, automotive, consumer packaged goods, retail, you name it, they’re out there, outthinking and outdoing everyone else in their fields. Whatever they’re playing field, they all have one thing in common: they innovate.

Three Not-So-Easy choices

Today, businesses face three choices. In many cases, none may be easy to make.

1. Actively innovate. Stay at the forefront of their industry and their competitive set, doing whatever it takes to meet constantly evolving market conditions and consumer demand.

2. React. Wait for others to set the standard and play catch-up, forever scrambling to match the latest development introduced by market leaders.

3. Do nothing. Stay right where they are, do their best to survive, and almost certainly stagnate, eventually drifting into irrelevance, and finally, extinction.

Innovate or perish.

Innovation of the Individual

By the way, the innovation imperative doesn’t only apply to businesses; it’s a challenge facing individuals, as well, again, even more so today. Each and every one of us who collects (or hopes to collect) a paycheck has at least one consumer, the person responsible for our professional future. Individual employees must also continually reassess their approach and establish their value, or face the same dismal fate as their corporate counterparts. In fact, while we are currently facing increasing jobless numbers, still more than 90% of the workforce remains employed. While in many cases circumstances beyond the control of the individual are responsible, what might that 10% do, innovatively, that could help them make it back into the 90%?

Work Your Innovation Chops

The time to develop an innovation orientation is not tomorrow or next week or in the third quarter. It’s now.

Begin actively searching for new, better, more productive ways of doing things. Utilize proven innovation tools-advanced ideation techniques, new technologies, breakthrough processes. Adopt an “innovation mindset,” asking yourself every day, “How could I do this better?” Turn yourself and your organization into an Innovation Machine. You will not only survive this evolutionary upheaval, you will thrive.

Here’s an excellent article by Jim Carroll concerning the opportunity for disruptive innovation provided by the current economy. This is related to our concept of The Innovation Imperative — the realization that those companies which will thrive in the future will be those who are the most innovative today. You can find the original post of Jim Carroll’s  article here: http://www.cognos.com/newsletter/decisions/st_090130_01.html .

Rethinking Innovation: Is now the time to forge ahead?

By Jim Carroll

Given the economic challenges that swirl around us and the rapidity with which the events of the fall of 2008 unfolded, a unique and challenging mindset seemed to quickly envelope many organizations: corporate idea factories were turned off, and innovation paralysis settled in.

The result is that we’re not just in an economic recession – we’re entering another idea recession, similar to what occurred with the last downturn starting in 2001.

Yet in allowing this to happen, many organizations are missing the fact that an economic downturn provides a great opportunity for innovation. After all, companies like Burger King, Microsoft, CNN and FedEx all started up during a recession.

Recession a perfect opportunity for “disruptive innovation”

In November 2008, right as events were at a fever pitch, Wharton Universities Innovation and Entrepreneurship group released a provocative article strongly suggesting that a recession provided the perfect timing for “disruptive innovation” – that is, stepping into an industry and rewriting the business model so as to achieve significant growth. Think of Steve Jobs and the iPod – which he first released during the recession of 2002.

So what do organizations need to do?

Move past the “shock” and “denial” phases

First, move to the “acceptance” stage earlier. I began to relate the fast-paced events of the last few months in the context of the “stages of economic grief,” an emotional reaction that seems closely related to the “stages of bereavement.

Events happened so fast that many organizations still find themselves in the “shock” and “denial” phase. They will be the innovation laggards, and will only be ready to innovate once the market and industry recovery is underway. However, that may be too late.

Then there are the innovation leaders who are prepared to innovate despite the uncertainty. They are prepared to keep their idea factory running – maybe not at full tilt – but running nevertheless.

These leaders know that despite the vast sections of the economy in stress, there are still plenty of opportunities for innovative thinking. They know there are still growth markets; and opportunities for marketplace, distribution channel, and operational innovation.

Innovation leaders are aware that ongoing change in consumer behavior also means that there continue to be new ways to brand, grab customer mindshare and forge unique and distinct relationships.

There are plenty of opportunities to turn ideas into innovation. It all depends on where you want to place yourself on the scale of the seven stages of economic grief.

Bold moves and integrated elements

The key decision is whether now is the time for innovation, and if so, how to move. It is critical that organizations begin to undertake a series of bold actions that re-orients them to face these future challenges. This series of actions should include several integrated elements:

• Undertake a regular number of experience-focused projects aimed at boosting the “experiential capital” of the organization.
• Identify specific areas of capability weakness, product line, skills or structure that should be addressed through specific.
• Articulate key opportunistic strategies through a variety of risk-oriented initiatives and align the organization to explore those strategies.

These actions should aim to develop needed capabilities and realign the corporate mindset away from the current risk-adverse culture towards re-orienting the organization for the future.

The greatest mistake that any organization can make right now is to avoid action. Inertia – real or implied – establishes a culture of inaction, and that can lead insurance organizations down another slippery slope.

Clearly, that’s why today, innovation isn’t an option, it’s critical – because it is the key method by which we can gain traction.

About the Author

Jim Carroll has proven himself as one of the world’s leading futurists, trends and innovation experts, with a client list that includes the Walt Disney Organization, Motorola, Nestle, the BBC and Caterpillar.

Jim is internationally recognized for his cutting-edge insight, having been named by BusinessWeek as one of four leading sources for insight into creativity and innovation. As an author, columnist, media commentator, and consultant, Jim is completely focused on creativity and innovation. His insights appear in his books Ready, Set, Done! How to Innovate When Faster is the New Fast and What I Learned From Frogs in Texas: Saving Your Skin with Forward Thinking Innovation.

The response many organizations have to the current economic environment is one based on fear — fear of annihilation. And it’s not an unreasonable view. Just look around.

However, history and nature teach us that fear in the face of adversity is weakness, a severe disadvantage that eventually takes one down its own path of destruction.

To anyone able to maintain a clear perspective in the current maelstrom, it’s glaringly obvious that cutting staff, resources, capabilities, training, services — vision — can only result in cutting something else that is crucially important. Present and future success.

Obviously when revenue is diminished, something has to give. But the only rationale response to our present situation is to operate from a perspective of opportunity. Not “How can I stick it out and survive?” but rather, “How, given current conditions, can I innovatively capitalize on my circumstances, healthily sustain and prepare for future opportunities?”

It’s a matter of perspective.

Operate from fear, and perish. Innovate , and thrive.