Creativity, the generation of novel and useful ideas, and innovation, the transformation of these ideas into new products, processes, and services, are both critical for the long-term viability, profitability, and growth of organizations. Moreover, the complex, risky, and uncertain nature of innovative efforts demonstrates the importance of organizational leaders to effectively manage the innovative process. In this element, we discuss the role of leaders in effectively facilitating the creative problem-solving process that gives rise to innovative products, processes, and services. More specifically, we highlight the knowledge, skills, and behaviors needed to effectively lead across three integrated facets of this process-leading the people, leading the work, and leading the firm. This discussion promotes an understanding of how leaders manage those asked to engage in innovative efforts and, moreover, how leaders systematically integrate creative ideas within the organization to ensure the development and success of innovative products, processes, or services.

Innovation, and the creative thinking that provides the basis for innovation, is of great value for organizations. In this article we describe what is needed for people to think creatively, noting that creative thinking is a complex, albeit voluntary, activity involving performance on certain types of problems. The ways leaders influence peoples' willingness to engage in, and ability to solve, creative problems are then described. Leaders of creative efforts must not only motivate creative work but also actively contribute to creative problem-solving both by engaging followers in creative problem-solving and by establishing the conditions that allow creative problem-solving at the individual, team, and firm levels. The implications of these observations for leader assessment and leader development are discussed.