The challenge for most organizations is to balance the pursuit of innovation. If the organization excessively pursues efficiency innovation, being too focused on improving the productivity of what already exists, then it runs the risk of missing opportunities in the marketplace. With a highly revolutionary innovation, the organization runs the risk of creating a state of chaos and also disenfranchising those employees who do not have the mindset or the skill base to identify and pursue radically new changes in direction. The article gives insights into various types of innovation.

Many organizations are beginning to realize that whatever got them to where they are today might not get them through the next five years! Indeed, many of the world's top organizations are facing new and more challenging pressures on all fronts. As leaders, we have responded to these pressures by embracing the new corporate mantra: "Innovation". Unfortunately the concept of innovation has been so widely used that many people are confused about what it really is. I have seen many CEO's stand up at their annual meetings and encourage their employees to "think outside the box", which of course, could mean different things to different people.