The head of a record label sets up structures, but he also defines the sound of the label, which is to describe what is desirable, what fits and what is quality for that label and then to create an environment where that sound can thrive.

It takes creativity at every stage to make the discontinuous leap from one level of knowledge to the next. These discontinuous leaps of understanding lead to insights that in turn lead to value creation.

In a corporate context, companies have to try very hard to oppose the enticements of conventional wisdom. They must aim for the leaps, which means that companies have to do more than simply manage their knowledge, which is composed of the insights and understandings they already know. They also have to manage the knowledge-generation process. It's not just about, "Oh, we're going to create a data warehouse and we are going to invent a computerized filing system to get at all the stuff we know."

Managing the creative process means selecting the best people and then letting them do their work. That means nurturing. It also means, from time to time, creating drama - even uncertainty - so that the creative environment has an edge to it, a charge, and does not run out of steam.

In a large pharmaceutical company, where it's a big bet, you're going to need finance people to be involved in the decision-making because the investment can run into the hundreds of millions of dollars. You're going to have to run scenarios. You might even need agreement from the C.E.O. to make that type of decision. If it's an incremental, low-cost decision in a marketing-oriented company, it may be a very different set of stakeholders a lot further down in the organization.

I would argue that the management of creativity requires a skill set that's relatively different from the traditional management skill set that is appropriate to a large, complex, industrial-era organization.

In the end it is the musician who actually plays the notes. The impresario - or the project leader - is only there to make sure that happens. That is a very different type of management mind-set.