Strategic innovation:leveraging creative action for more profitable growth

The explosion of growth in the new economy intensifies and exacerbates the need for performance management, yet many managers consistently fail to seriously support these efforts because they focus on routine and stability in business. Strategic Innovation involves making knowledge creation and innovative action a way of life, seeking to create and expand markets rather than just reacting to customer demand, and redirecting resources from profitable but dwindling lines of business to support emerging lines that are potentially more profitable. The strategic innovation cycle contains five phases: generating – sharing knowledge and experience; conceptualizing – going from tacit to explicit knowledge; optimizing – evaluating to find the best answer; implementing – testing solutions and creating new knowledge, and capturing – codifying explicit knowledge and identifying gaps.