Why are some organizations consistently good at innovating and adapting while others seem to be blindsided by change? Is it because of their disciplined innovation process or the knowledge and skills of their people? Or is it their determination to build a culture where challenging assumptions is not only encouraged, but expected? IBM's Creative Leadership Study found that leaders who embrace the dynamic tension between creative disruption and operational efficiency can create new models of extraordinary value.

In today’s volatile and complex environment, rapid adaptability is fundamental to success. Yesterday’s market-leading “best practices” can all too often turn into tomorrow’s recipe for disaster. History is full of examples of organizations that became so enamored with, or paralyzed by, the status quo that they failed to anticipate the fickle winds of customer demand and faded into oblivion.

Forward-thinking leaders, however, learn to harness this complexity to their advantage. They take processes with many distinctive parts and integrate each element into a smoothly functioning whole. They are at their best when anticipating the evolving needs of the marketplace and presenting differentiated products and services that cater to today’s highly empowered, knowledgeable and technologically enabled consumers.

What, specifically, enables leading-edge organizations to capitalize on the inherent complexity in today’s environment and catalyze innovation within their business models, products and services? According to the IBM 2010 Global CEO Study, the ability to embody creative leadership is among the most important attributes for capitalizing on complexity. “Creative leaders invite disruptive innovation, encourage others to drop outdated approaches and take balanced risk. They’re open-minded and inventive in expanding their management and communication styles, particularly to engage with a new generation of employees, partners and customers.” [p.1]