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?

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.

We all know we’re living in the Information Age – and how vital a role the Internet plays in the free dissemination of all that information.

What many may not realize, however, is that the availability of information isn’t simply a byproduct of advancing technology – it’s what people want.

A recent article at emarketer.com, “Americans Want Brands that Inform,” focused on findings in the “Global Web Index” from Lightspeed Research.

The third most important action a brand can take to make itself relevant to consumers is “Provide me with new ideas and thinking.” Only “news” (which scored only slightly higher) and “product discounts” (no surprise in today’s economic climate) ranked higher. Way down the list were things like “Sponsor my favorite sports team” and “Associate with celebrities that I like.” (Sorry Morgan Freeman.)

And where do they want their ideas and information to come from? According to the article “…US consumers found social network contacts and bloggers that they read regularly more trustworthy than major journalists, television news readers and radio presenters. Celebrities and TV show presenters were tied with politicians for the dishonor of being considered least trustworthy.”

So what does it all mean for business? That if you want to survive, you had better be able to supply your customers with a constant supply of fresh, new thinking.

It means you need ideas. Lots and lots of good ideas.

In the not so distant past, the demand for fresh thinking wasn’t so fierce. Sure, great ideas were always needed, but not overwhelming quantity we need to produce today.

Companies everywhere are buckling under the pressure to deliver innovative thinking at ever increasing speed. Many use decades-old processes for generating, sharing and developing ideas. Many still consider “creativity” something magical, rather than a systematic process that can be implemented every day. And many simply have no idea…how to generate ideas. They just know nobody in their organization is coming up with them.

It’s time for business to understand that nothing happens without an idea – not a product design, not a marketing plan, not a sales strategy – and invest appropriately in the thing their consumers want most.

How’s that for an idea?

[polldaddy poll=1671296]

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.