Organizational Innovation and Creativity Report

This report examines the critical relationship between leadership and organizational innovation and creativity. It highlights the importance of fostering a conducive environment for creativity, the role of leaders in driving innovation, and the necessity for organizations to adapt to changing market conditions. The report concludes with recommendations for leaders to embrace innovative practices and create a culture that supports creativity, ultimately leading to enhanced organizational performance.

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ORGANIZATIONAL INNOVATION AND CREATIVITY
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Executive summary
Innovation as well as creativity is important to successful performance in any organization. The
relationship between leadership and organization innovation is a subject under investigation by
various researchers. This report provides a hypothesis to determine the importance of innovation
and creativity among leaders in the organization. A comprehensive analysis was done to
establish the role of leaders in creativity among different organization. The results showed that
leadership is the basis for creativity and innovation in an organization. Innovation was identified
as a solution to organizations’ problems. Therefore the report recommends that, leaders need to
establish a conducive environment to build and renew the culture of the organization that
encourages innovation and creativity. The organization and managers must be able to manage
diversity in business and implement leadership strategy that sustains the process of innovation.

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Table of Contents
Introduction......................................................................................................................................4
Reasons for innovation and creativity to an organization...............................................................5
Analysis of innovation and creativity..............................................................................................5
Role of leaders in innovation and creativity....................................................................................5
Reference list.................................................................................................................................10

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Organizational Innovation and Creativity
Introduction
Organizations that see the need to act upon the ability and opportunities to arrive at new and
creative ideas are at an upper hand of succeeding in the market. Creativity is a process of
generating new ideas innovation is the use of better solution according to the requirements
(Steinburg, 1992). Therefore this report aims at determining the importance of innovation and
creativity to leaders in the organization. The role of innovation and creativity in gaining
competitive advantage in the market is also discussed (Kotter & Schlesinger, 1979, p. 134).
Reasons for innovation and creativity to an organization
Innovation and creativity are crucial to the successful performance of the organization.
Innovation and creativity helps organization in the process of solving problems. This creativity
helps organizations more competitive in the market by making products different and of value to
the customers (Adams, et al., 2011, p. 23). It also helped managers to improve activities and
attain their goals. Creative thinking is not easy for most leaders because of the individual
differences where individuals value their own experience without seeing the world differently,
lack of motivation from the organization leaders and challenges of volatile environment for
practicing creativity and innovation (Egan, 2007, p. 187).

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Analysis of innovation and creativity
The strategies that organizations used before is not enough for the effective and successful
running of business today. The situation in the organization has changed from slow processes
and unstable environments.
Role of leaders in innovation and creativity
Organizations have used Culture, technology, organizational strategy and strategic design as
tools of management to help to get competitive advantage and effectiveness to firms. In the past
creativity, innovation and organizational environment are the most important tools to win
competitive advantage (O’Connor, 1993, p. 234). Authors have given little knowledge on the
role leaders had on creativity and innovation processes.
Creativity arises as a result of good leadership whose role is to control and drive changes in
culture, process, and structure. Leaders guide other members on the vision, momentum, and
direction that lead to success. Therefore, leaders form the basis for a good and manageable
environment (Kreitner & Kinicki, 2010, p. 178).
When firms establish their work processes and strategy, leaders are the ones who give direction
to what is to be implemented to successful completion. Culture, strategy, and technology are
crucial for and contribute to organizational success. To ensure this aspect are put into practice
leaders support encourage, sustain and inspire individuals to make it achievable. Therefore the
initial processes of innovation begin with having the required leaders with right skills and
knowledge and have leadership structures implemented. Chosen leaders must have interest in
innovation or else they will drag behind innovation and creativity. Leaders of organizations have

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the authority and power to develop new strategies results in innovation thus if the organization is
not able to see opportunities for exploitation, innovation, and response, it can lead to
sluggishness in innovation (Gattiker, 1990, p. 156).
If leaders have ambitious, innovative and dynamic objectives and actively demonstrate their
attitudes and capability to change, it helps promote innovation, success, and renewal of the firm.
Some theories of management state that good culture, strategy, management techniques and
work processes determine the success of the organization. Empirical research shows the need
for culture in the performance of the organization. (Carnall, 1999, p. 167) Has shown how
leaders are involved in the cultural development of the firm e.g. IBM changed its culture for
them to reform the organization. They began by bringing a new CEO who changed everything
for success and innovation.
Steinburg (1992, p. 66) says that culture occurs in the presence of commitment, active support,
and involvement by leaders who frequently work towards convincing other members of the need
and benefits of culture change in the organization. Weak leadership in a Firm leads to
ineffective and restructuring in order to solve problems. While firms with effective and creative
leaders, work towards changing major downsizing and restructuring.
Other organizations use downsizing and TQM strategies to attain efficiency. However, most of
these firms have failed. This translates to 20% of the companies who achieved their goal while
more than 45% failed to increases profits as a result of downsizing (Darling, 1993, p. 156).
Many of these firms have failed in reformation because they lack the effective and creative
leadership to control and manage innovative processes thus management techniques alone do not
make an organization innovative and creative. Therefore organizations require an innovative and

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creative leadership in order to manage the strategies and other tools. Many leaders lack
leadership qualities that encourage innovation and creativity for successful completion.
Leadership is a foundational and fundamental competitive advantage for successful processes
(Hambrick & Cannella, 1989, p. 342). This is because an effective leader who has creative
minds, strategy, innovation, technology leads to the success of the company. Companies with
creative leadership had grown by 900% compared to 74% who grew without creativity and
innovation. For creative renewal to succeed, organizations have to create structures that use
creative leaders to control and manage the firm. Leadership structures of the firm help to attain
results that encourage innovation and creativity. Not all leadership strategies are effective for
innovation but using some styles and strategies give results that encourage creativity.
Collaborative and shared leadership rather than authoritative and dictatorship leads to successful
businesses. The modern approach of leadership encourages employees to present their ideas for
the success of the organization. This is because many people have different skills that change the
firm. Leaders can only succeed if they understand their role in creativity as well as designing
firms to encourage creativity. Leaders can use inclusive methods for its members to help them
feel secure and confident in doing their work. When leaders respect and value others great ideas
come up.
Conclusion
The strategies that organizations used before is not enough for the effective and successful
running of business today. The situation in the organization has changed from slow processes
and unstable environments. In many business departments processes have been reformed at a
faster rate due to changes in uncertainty, turbulence, unpredictability, globalization, and

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technology. This is because organizations want to differentiate in terms of market, brand, and
technology that could lead to success. Even though they want to innovate they are not able to
think creatively because of volatile environments in businesses. This has made most businesses
to fail and therefore need creativity and frequent innovation to help them remain successful and
competitive i.e. they must harness and recognize leadership and creativity present in the
organization in order to manage the new innovation process.
Culture, technology, organizational strategy and strategic design may not be sufficient enough
but instead, the organization should develop leaders who are creative and innovative to sustain
and run the processes. Leaders can only succeed if they understand their role in creativity as
well as designing firms to encourage creativity. Leaders can use inclusive methods for its
members to help them feel secure and confident in doing their work. Collaborative and shared
leadership rather than authoritative and dictatorship leads to successful businesses. When leaders
respect and value others great ideas come up.
This will enable firms to create conducive environments for innovation, culture and
organizational development. Also, the company should establish business diversity that will help
organizations to gain competitive advantage.
Recommendation
Creative thinking is not easy for most leaders because of the individual differences where
individuals value their own experience without seeing the world differently, lack of motivation
from the organization leaders and challenges of volatile environment for practicing creativity and
innovation. Innovation and creativity are crucial to the successful performance of the
organization. The many benefits it has to the organization, it makes it a requirement for leaders

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to embrace innovation. Innovation and creativity help organization in the process of solving
problems In order to enable have leaders who are innovative, the organization needs:
 To understand various skills that are needed to create innovation by focusing each
individual on their roles and responsibility, training for their development.
 To establish a conducive environment that will help to build and renew the culture of the
organization that encourages innovation and creativity. This will encourage each
individual to work hard towards the achievement of the organization (Woodman &
Pasmore, 1989, p. 34).
 To manage diversity in business and implement leadership strategy that sustains the
process of innovation and creativity.
 Assistant managers should support creativity and innovation by supporting teams through
serving as champions and intermediaries.
 Leaders must be able to work in diverse boundaries of the organization and act as a link
between employees.
 Leaders to connect collaborate and influence people who possess various styles and
preferences of innovation.
 Conflicting issues and problems must be solved from polarity thinking and not the
mindset of problem-solving.
 Leaders to ad vote innovation by allocating enough resources to the present project.
 To use collaborative and shared leadership rather than authoritative and dictatorship leads
to successful businesses.
 Leaders to respect and value others for great ideas come up.

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References list
Adams, R., Daly, S., Mann, L. & Dall'Alb, 2011. Being a Professional. Three lenses into design
thinking, acting, and being. Design Studies, 32(2), pp. 588-607.
Carnall, C., 2012. Managing change in organizations. 2nd ed. London: Prentice Hall..
Darling, P., 1993. Getting results: The trainer’s skills. Management Development Review, 23 2,
p. 23.
Egan, J., 2007. Marketing Communications. 5th ed. London: Thompson London.
Gattiker, U. E., 1990. Technology management in organizations. 2nd ed. Newbury Park: CA:
Sage..
Hambrick, D. & Cannella, A., 1989. Strategy implementation as substance and selling. Academy
of Management Executive. 3rd ed. London: Prentice Hall.
Kotter, J. & Schlesinger, L., 2008. Choosing strategies for change. Harvard Business Review, 23
3, p. 500.
Kreitner, R. & Kinicki, A., 2010. Organizational behavior. 19th ed. New York: McGraw-Hill
Irwin..
O’Connor, C., 1993. Resistance: The repercussions of change. Leadership and Organization
Development Journal, 14(6), pp. 30-36.
Steinburg, C., 1992. Taking charge of change. Training and Development, 46(3), pp. 23-34.

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Woodman, R. & Pasmore, W., 1989. Research in organizational change and development. 2 ed.
Greenwich: CT: JAI Press.