Peter Senge, the author of The Fifth Discipline and The Necessary Revolution, talks about the challenges of leading organizations at a time when their supply chains need to be radically transformed. The first challenge is building an understanding of the larger system in which any organization exists. The second is learning to work with parties throughout that system, such as NGOs that can provide access to crucial knowledge and expertise. The third challenge is developing a different attitude about sustainability: Being "less bad" is not a vision that can inspire people to undertake large-scale change. These supply chain challenges are all leadership issues, but they are not restricted to chief executives. Leadership in this area can come from many places in the organization, including technical and process specialists, and even from the outside. What's important to effecting change across a supply chain is passion, an ability to form networks, organizational savvy, and a recognition of the realities, such as finite resources, that are now asserting themselves.

In 2006, General Electric launched its Leadership, Innovation, and Growth (LIG) program to support CEO Jeffrey Immelt's priority of achieving corporate growth primarily by expanding businesses and creating new ones. LIG represented a radical approach for GE's famed management development center in Crotonville, New York, because it was the first effort to train all the senior members of a GE business's management team as a group. Prokesch went through LIG with 19 senior managers of GE Power Generation, one of the company's oldest businesses, in October 2007. About a year later he revisited the "turbine heads," as Immelt affectionately calls them, to see how much impact the program had made. The answer was a lot. Team training accelerated the pace of change by giving managers an opportunity to reach consensus on the barriers they faced and how to overcome them. LIG participants were encouraged to consider both hard (organizational) and soft (behavioral) barriers. The training explicitly addressed how to balance the short term and the long term. The program created a common vocabulary of change - actual words that are used daily inside and across GE's businesses. And LIG was not an academic exercise: It was structured so that a team would emerge with the first draft of an action plan for instituting change. The author's firsthand experience in the four-day program, together with his follow-up interviews with GE executives, illuminates the effectiveness of this training approach. Power Generation's managers created a now ubiquitous vision statement, beefed up the leadership in their core business, expanded regulatory staff and project teams in emerging markets, revamped product development, put up a website where any employee can submit ideas for growth, and created a growth board to consider proposals and track their progress.

John Browne believes that all companies battling it out in the global information age face a common challenge: using knowledge more effectively than their competitors do. And he is not talking only about the knowledge that resides in one's own company. "Any organization that thinks it does everything the best and that it need not learn from others is incredibly arrogant and foolish," he says. British Petroleum's chief executive, who engineered the revival of BP Exploration and Production and poised BP for spectacular growth, never accepts that something can't be done and is always asking if there is a better way and if someone might have a better idea. Under his leadership, BP is doing the same. And no matter where knowledge comes from, Browne says, the key to reaping a big return is to leverage that knowledge by replicating it throughout the organization so that each unit is not learning in isolation.

Just because the competition is tough, that's no reason to be tough on customers, says Sir Colin Marshall, chairman of British Airways. Even in a cutthroat, mass-market business such as air travel, he argues, many people will pay a premium for good service--even those who travel economy. Marshall's views may be unconventional, but so is his company's performance: While the world airline industry has racked up billions of dollars in losses, British Airways has remained solidly profitable.

Wherever you look in business, there's a new level of interest in entrepreneurship. As attention at corporations swings away from retrenchment and toward growth, more and more people are wondering why some companies are able to stimulate creativity and initiative among their employees more effectively than others. What do those organizations do to convert intriguing ideas into commercial ventures?