For many companies, innovation is a sprawling collection of initiatives, energetic but uncoordinated, and managed with vacillating strategies. For steady, above-average returns, firms need a balanced innovation portfolio and the ability to approach it as an integrated whole. Having studied companies in the industrial, technology, and consumer goods sectors, the authors found a striking pattern: Outperforming firms typically allocate about 70% of their innovation resources to core offerings, 20% to adjacent efforts, and 10% to transformational initiatives. As it happens, returns from innovation investments tend to follow an inverse ratio, with 70% coming from the transformational realm. The ideal balance will differ from industry to industry and company to company, but one thing is constant: Companies must execute at all three levels of ambition and manage total innovation deliberately and closely. In particular, they must develop the unique capacities needed for transformational innovation. This means finding the talent required for breakthrough efforts and ensuring enough separation from the core business; creating an appropriate (and often very different) funding structure; departing from a pipeline management approach; and using noneconomic and internal metrics to assess early efforts. Companies that learn how to manage for total innovation can fully harness innovation's energy and make it a reliable driver of growth.

No man is an island, and neither is an organization. GE is just one of the leading firms that has embraced the fact that the challenges it faces -- in areas from healthcare to energy to transportation -- are too 'wicked' to be solved by GE alone. In an interconnected world, the key to solving complex problems lies in figuring out when-and whom-to ask for help. The authors describe six skills of 'open innovation' that enable you to add fresh insights, sharp perspectives and different capabilities to your existing processes and infrastructure, and drive innovation.

Orthodoxies -- unstated assumptions that go unquestioned -- are present within every organization. They can range from seemingly-innocuous biases or conventions to, at their most extreme, something that approaches religious-like devotion to a specific set of ideals. In most cases, they are not explicitly recognized, instead lurking below the surface, invisible icebergs on which a seemingly flourishing company might founder. The end result: people fall into autopilot mode and fail to imagine better ways to tackle challenges and everyday activities. The authors present a five-step plan for 'flipping' orthodoxies in your organization that can enable people to imagine a different future that encompasses more than just business as usual.