Jazz musicians can be great teachers of business. Their creativity is not dependent on their mood, it does not have to be coaxed out of them, it has nothing to do with the phases of the moon or even how they feel that day. They go on stage and start playing. Being creative is their job.

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."

Jazz is not about getting and playing whatever notes you want. It is about reworking themes in a manner that sounds good, that can be followed by the other musicians and that the audience enjoys. You cannot do that without first acquiring skills.

Creativity is the crucial variable in the process of turning knowledge into value

The conventional asset-allocation method is like sheet music. It is prescribed, it has right answers and wrong answers and it sounds about the same every time. But jamming is different. Jamming is when you make the music. When you improvise and adapt to conditions. When you are creative.

The larger the price tag, the more you have to adopt what I call the postmodern management approach. What I mean by that is that you have to use everything when you make a decision.

Organizations are about putting ideas through one or more types of gating procedures. In this way, ideas go from being a whim to becoming a project, from being a "skunk works" effort to becoming an official, mainstream effort, from being an unfounded program to a funded process, and so on.