The Wiley-Blackwell Handbook of the Psychology of Leadership, Change and Organizational Development

15

Developmental Approaches for Enhancing Organizational Creativity and Innovation

Jane Henry

15.1 Introduction

In the last 30 years there has been increasing interest in ways of changing organizations in a manner that enhances creativity and innovation. One of the principle reasons for this is the increased pressure brought about by global competition. In high-wage economies, maintaining a high level of creativity and innovation is an obvious way of adding value. In developing economies, creativity and innovation offer ways of moving up the value chain. The organizational-change approaches used to achieve this end are many and ­various, ranging from structural and cultural changes through idea and people development to the management of innovation, process improvement, and organizational renewal.

In organizations it is common for creativity to be associated with the front end of the creative-process research and development (R&D) and ideas. Innovation tends to be associated with the development phase, where creative ideas are developed into working models, and when used in conjunction with creativity and innovation, entrepreneurship is often associated with the business of bringing new products and services to market. However, use of these terms varies and “creativity” is also associated with management approaches that aim to draw out the creativity in all employees. “Innovation” is sometimes used in a broader sense to cover the R&D, development, and marketing of new products. “Entrepreneurship” ...