Creativity in organizations leads to innovations in products, services, and processes (such as a billing system or safety improvement). All leadership and management practices that enhance creative problem solving therefore also enhance innovation. Here, we describe seven additional leadership initiatives specifically geared toward enhancing innovation.

Emphasize transformational leadership if possible. A macro-perspective on a leader’s role in fostering innovation is to exercise transformational leadership, creating an environment of change and growth. Continually pursue innovation. Innovation is important because a new technology can make an industry obsolete or place it in grave danger.

Take risks and encourage risk taking. “No risk, no reward” is a rule of life that applies equally well to the leadership of innovation. Emphasize collaboration among employees. Most innovations stem from networks of people working together who are often dispersed throughout the organization. Choosing the right leader for a project can be the key to collaboration.

Use loose–tight leadership. Looseness refers to granting space for new ideas and exploration, whereas a tight approach means finally making a choice among the alternatives. Innovation is also enhanced when workers throughout the organization are able to pursue absurd ideas without penalty for being wrong or for having wasted some resources.