The leadership dilemma for innovation - collaborate or compete

One of the most challenging dilemma's facing today's leaders is how to position their internal organizations to foster both innovation , creativity, and productivity. (From an article on CIO.com from Michael Schrage) On one side, competition can create an effective rivalry that can lead to breakthrough results - at the same time it can also lead to a point where collaboration and communication cease to exist. On the other side, creating an environment that is based on strongly promoted collaboration, those involved may be afraid to innovate as it might impact the culture that exists in the organization. Leaders today need to strike a cautious balance to ensure that both innovation and collaboration and promoted and supported.