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In today's innovation-driven economy, understanding how to generate great ideas has become an urgent managerial priority. Suddenly, the spotlight has turned on the academics who've studied creativity for decades. How relevant is their research to the practical challenges leaders face? To connect theory and practice, Harvard Business School professors Amabile and Khaire convened a two-day colloquium of leading creativity scholars and executives from companies such as Google, IDEO, Novartis, Intuit, and E Ink. In this article, the authors present highlights of the research presented and the discussion of its implications. At the event, a new leadership agenda began to take shape, one rooted in the awareness that you can't manage creativity - you can only manage for creativity. A number of themes emerged: The leader's job is not to be the source of ideas but to encourage and champion ideas. Leaders must tap the imagination of employees at all ranks and ask inspiring questions. They also need to help their organizations incorporate diverse perspectives, which spur creative insights, and facilitate creative collaboration by, for instance, harnessing new technologies. The participants shared tactics for enabling discoveries, as well as thoughts on how to bring process to bear on creativity without straitjacketing it. They pointed out that process management isn't appropriate in all stages of creative work; leaders should apply it thoughtfully and manage the handoff from idea generators to commercializers deftly. The discussion also examined the need to clear paths through bureaucracy, weed out weak ideas, and maximize the organization's learning from failure. Though points of view varied, the theories and frameworks explored advance the understanding of creativity in business and offer executives a playbook for increasing innovation.

If you run a big company, you might think it's nearly impossible to grow profits organically. Think again, say MacMillan, of the University of Pennsylvania's Wharton School, and Selden, of Columbia Business School. Locked inside your firm's customer records is a wealth of information about what your customers need and how to make more of them profitable to you. Tapped strategically, this information can generate enormous value for your company and give you a big leg up on potential invaders. The authors call it the incumbent's advantage. Using the hypothetical example of Mix C-Ment, based on the real experience of concrete manufacturer CEMEX, the authors walk through a step-by-step tutorial on strategic customer segmentation. They demonstrate how investing in and applying research about particular customers' needs for tailored products, marketing support, and technical services can greatly increase profits. But that requires seeing these offerings not as mere allocated costs but as deliberately invested resources. To exploit your incumbent's advantage, build a modest customer-characteristics database and rank your customers according to profitability. Then analyze in detail the needs and behavior of the most and least profitable 20% - and strategically use what you find. This customer-centric approach to your information should have as its counterpart a corporate structure in which cross-functional teams assigned to specific customer segments make smart resource investments using your evolving knowledge about each segment's needs and performance. Getting your customer information and your organization to work together in this way is the key to preserving your firm's dominance while increasing profits at every step of the process.

Why is that question in the past tense? Because individuals can no longer feel confident that the details of their lives - from identifying numbers to cultural preferences - will be treated with discretion rather than exploited. Even as Facebook users happily share the names of their favorite books, movies, songs, and brands, they often regard marketers' use of that information as an invasion of privacy. In this wide-ranging essay, McCreary, a senior editor at HBR, examines numerous facets of the privacy issue, from Google searches, public shaming on the internet, and cell phone etiquette to passenger screening devices, public surveillance cameras, and corporate chief privacy officers. He notes that IBM has been a leader on privacy; its policy forswearing the use of employees' genetic information in hiring and benefits decisions predated the federal Genetic Information Nondiscrimination Act by three years. Now IBM is involved in an open-source project known as Higgins to provide users with transportable, potentially anonymous online presences. Craigslist, whose CEO calls it "as close to 100% user driven as you can get," has taken an extremely conservative position on privacy - perhaps easier for a company with a declared lack of interest in maximizing revenue. But TJX and other corporate victims of security breaches have discovered that retaining consumers' transaction information can be both costly and risky. Companies that underestimate the importance of privacy to their customers or fail to protect it may eventually face harsh regulation, reputational damage, or both. The best thing they can do, says the author, is negotiate directly with those customers over where to draw the line.

Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.

Ruffin CEO Bill Bronson is on a mission. Counterfeits of his company's adventure gear and clothing are on the rise, and Bronson is hell-bent on stopping them. He has hired top-notch investigators to track down the criminals, invested in technology that will help distinguish his products from look-alikes, and pushed online vendors to stop selling fakes. All of that has cost a lot of money, however, and the problem seems to be getting worse. How far should Bronson take his campaign? Three experts comment on this fictional case study in R0810A and R0810Z. Giorgio Brandazza, a professor at SDA Bocconi School of Management, fought a similar battle as an executive at Calvin Klein. He advises Ruffin to mitigate the effects of copycats by building up the strength of its brand. For one thing, the company should increase its retail presence in countries where it is plagued by fakes. Single-brand stores will allow Ruffin to guarantee customers they're getting authentic goods, showcase its products in distinctive ways, and build strong relationships with consumers. J. Merrick "Rick" Taggart, president of Victorinox Swiss Army in North America, recommends zeroing in on the worst counterfeiting offenders. A resource Ruffin should take advantage of, he says, is customs and border patrol officers; if the company frequently communicates with them about ports of entry and consignee and consignor data, these officials can more easily sniff out illegal activity. The foundation for any good defense against counterfeiters, says Candace S. Cummings, general counsel of VF Corporation, is instituting tight controls over the company's supply chain and distribution process. That means, among other things, choosing manufacturing partners carefully and having strict contracts with distribution partners that, for example, prohibit products from going anywhere but outlets the company trusts.

Spreadsheet Supplement for case 209029

Hearts On Fire, a successful branded diamond producer, established the position of Brand Development Manager (BDM) to build the company's presence, sales, and relationships with its retail customers. After 1 year, the CEO, CFO and President must evaluate the impact of the BDM on retail customers, the type of person required to be successful in this position, internal coordination issues with the company's sales force, and the financial returns versus other uses of capital for the company. The case raises issues in aligning business strategy and sales management systems, motivating and managing resellers, people selection, and financial analysis of alternatives.

Under pressure from the European Union, which had admitted Italy to the "Eurozone" hesitantly, on condition that the country control its deficit spending and reduce its high public debt, the central government in Italy initiated dozens of cost-cutting programs in the late 1990s and early 2000s. One such program aimed to economize, to the tune of billions of euros, on public procurement of goods and services. The program's first priority was to identify products and services bought widely by public agencies at every level of government, and consolidate them into nation-spanning mega contracts. By aggregating public sector demand in this manner, analysts had reasoned, Italy's public sector could greatly increase its market leverage and win big discounts from suppliers. This appraisal proved correct-but also politically explosive. In November 2003, Italy's Minister of Economy and Finance ordered a temporary halt to the program to give political and administrative leaders a chance to figure out what to do. HKS Case Number 1925.1

Under pressure from the European Union, which had admitted Italy to the "Eurozone" hesitantly, on condition that the country control its deficit spending and reduce its high public debt, the central government in Italy initiated dozens of cost-cutting programs in the late 1990s and early 2000s. One such program aimed to economize, to the tune of billions of euros, on public procurement of goods and services. The program's first priority was to identify products and services bought widely by public agencies at every level of government, and consolidate them into nation-spanning mega contracts. By aggregating public sector demand in this manner, analysts had reasoned, Italy's public sector could greatly increase its market leverage and win big discounts from suppliers. This appraisal proved correct-but also politically explosive. In November 2003, Italy's Minister of Economy and Finance ordered a temporary halt to the program to give political and administrative leaders a chance to figure out what to do. This decision-forcing case allows students to consider how Italy might have averted this political backlash, and challenges them to propose how the government might adjust the project in ways that address the concerns of the critics, but still allow it to improve procurement efficiency and reduce its costs. HKS Case Number 1925.0

In the spring of 2007, a vacationer is upset by the poor hotel experience he has had on the island of Guam. At the onset, the reasons for the bad experience seem to point to seemingly minor issues: bad management, poor service and old rooms. The value of the case lies in the analysis of the symptoms and arriving at the root causes of the problem, particularly the profit maximization strategy of the hotel's owners in a mature industry. The case uses a different method of analysis, starting with micro indicators and moving to macro indicators: the analysis of symptoms, arriving at root causes, determining company strategy and finally assessing the company's position using the Product Life Cycle Model.

The carbon market has emerged in response to concerns about global climate change. This note characterizes the market in 2008, describing each segment and how it operates.

Tata Consultancy Services (TCS), a leading outsourced software services provider based in India, must decide whether to bid on a high-profile government project within India. The project, if completed successfully, would mark another step in TCS' progression from a provider of low-cost technical resources to their goal of becoming an end-to-end technology enabled services provider. However, the project was not only complex but also presented considerable hazards to the firm. The case permits the exploration of how and when companies in developing countries can leverage their domestic markets to build capabilities to serve global customers, by using their home market as a base for learning. The case is also designed to examine strategies (more generally) for such organizations to climb the value chain, and access higher-margin businesses with powerful incumbents.

Spreadsheet Supplement for case 209064

Spreadsheet Supplement for case 286130

HCL Technologies, a major Indian IT services company, rolled out a radical new strategy, "Employee First, Customer Second" (EFCS) in 2005. The strategic goals for EFCS were to create a unique employee organization, drive an inverted organizational structure, create transparency and accountability within the organization, and encourage a value-driven culture. The case describes the different aspects of this program, and its impact on employee engagement, customer experience, financial performance, and innovation in 2005-08.

In the wake of slumping sales and sagging profit margins, a leading manufacturer and retailer of high-end women's apparel, Harrington Collection, must evaluate an opportunity to expand into the high-growth active-wear market. Sara Huey, Vice President of Strategic Planning, calls on two of her colleagues to help perform a comprehensive market evaluation. They must analyze the financial implications of the opportunity, assess trade and competitor reactions, consider the risks, and determine whether the Vigor division of the company will be able to successfully launch and manage the new product line.

Marketers are often tasked with exploring the factors that impact the long-run adoption of a new product or technology. The new product under consideration here is the drug-eluting stent: a device which props open a clogged artery to the heart and then releases medication that reduces the risk of artery re-blockage. In light of recent medical and competitive trends in the market, the case prompts students to examine the future adoption of drug-eluting stents as well as to consider the potential marketing actions to be taken by Medtronic for ENDEAVOR - a newly approved stent that will hit the market in 2008.

Columbus Tubing must choose to improve an old technology (steel) or to develop a new material (carbon fiber). The decision must take into account a complicated context: increased demand for the "old" steel products made in Italy, increasing power of carbon fiber manufacturing partners in Asia, growing wage rates in Asia, and high wage rates in Italy. Two plans have been presented to the CEO, Antonio Colombo. The first is to push development of all of the company's technologies, perhaps even seeking new markets for them. The second is to rationalize operations and to redirect R&D resources to marketing of stylish, lower-tech bicycles. The company's future hangs in the balance.

When Robert A. "Bob" Eckert was named Chief Executive Officer (CEO) of Mattel Toys in May 2000, he found a company which many considered lost. Its former CEO, Jill Barad, who had brought Barbie back from the toy-dead in the 1990s and CEO since 1997, had been forced out months before as the company's earnings had plummeted. The company was now losing roughly $1 million per day, and Barbie, the cornerstone of the company's sales and profits for a decade, was aging. Mattel's share price had plummeted from $46 per share in 1998 to a current low of $10. Bob Eckert and his team had moved quickly to slash operating costs, divest massive money losers, refocus on core products and brands, all in the hope of reviving profitability. The financial and operational measures taken had been rapid and, in some cases, brutal. The market had been patient with Bob Eckert, but now, in the summer of 2004, four years after his entrance, it was time to review accomplishments and renew and revise expectations. The toy industry was infamously short-cycled, and many worried that Barbie, Hot Wheels, Fischer Price, and American Girl would no longer provide the growth Mattel needed. The business mantra of profitable growth was very real to Bob Eckert and Mattel.

This technical note introduces the basic structure of the IS\LM and AS\AD models for a closed economy (i.e., one that does not engage in international trade). It is a useful complement for the more in-depth presentation of these models commonly found in an economics textbook.