Cover Page by Marc Epstein, Robert Shelton, Tony Davila

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10. Conclusion: Applying the Innovation Rules to Your Organization

Combining Creativity with Commercial Savvy

“The key to the whole game is to innovate and to make a profit.”

—Kevin Rollins, former CEO, Dell1

If a CEO overemphasizes innovation, it can spell disaster. Durk Jager at Procter & Gamble found out the hard way that too much emphasis on innovation can displace the focus on the profitability of the business. Jager’s overzealous pursuit of innovation created significant disruptions in the organization, and the business faltered: The profits, company morale, and the share price all declined.

A. G. Lafley, the CEO who replaced Jager at P&G, did not abandon the emphasis on innovation and has successfully moved P&G toward significantly improved ...

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