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Think Inside the Box

Forget brainstorming: People are at their most innovative when they work within the constraints of what they already know.

When most CEOs hear the word "innovation," they roll their eyes. It conjures up images of employees wasting hours, even days, sitting in beanbag chairs, tossing Frisbees and regurgitating ideas they had already considered. "Brainstorming" has become a byword for tedium and frustration.

Over the past decade, we have asked senior executives, on every continent and in every major industry, two key questions about innovation. The first: "On a scale of one to 10, how important is innovation to the success of your firm?" The second: "On a scale of one to 10, how satisfied are you with the level of innovation in your firm?"

Not surprisingly, they rate the importance of innovation very high: usually a nine or 10. None disputes that innovation is the No. 1 source of growth. Without fail, however, most senior executives give a low rating—below five—to their level of satisfaction with innovation.

How could business leaders rate innovation as so important yet feel so dissatisfied with their own organizations' performance? Because what they really want to know is how: How do you actually generate novel ideas and do so consistently, on demand?

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