Innovative ideas are like frogs’ eggs: of a thousand hatched, only one or two survive to maturity.

The innovative organization understands that innovation starts with an idea. Ideas are somewhat like babies—they are born small, immature, and shapeless. They are promise rather than fulfillment. In the innovative organization executives do not say, “This is a damn-fool idea.” Instead they ask, “What would be needed to make this embryonic, half-baked, foolish idea into something that makes sense, that is feasible, that is an opportunity for us?”

But an innovative organization also knows that the great majority of ideas will turn out not to make sense. Executives in innovative organizations therefore ...

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