Yes, differentiation drives margins and profits. That is a proven fact. And relevant differentiation can be optimally built, by creativity.

Creativity is an amazing capacity. It's an inexhaustible resource. The more you use it, the stronger and more plentiful it gets.

Creativity is also a fragile resource. It needs to be:

• Supported
• Encouraged
• Nurtured
• It cannot be forced.
• You can't be motivated by fear, or intimidation.

And that is because creative acts happen when the brain emits lower electromagnetic wave frequencies - which in turn require a brain at peace!

On the other hand, creativity need not be babied.

• One can, and must, set high aspirations - for the output.
• The creative output can and must be measured.
• Creative acts can and should be rewarded - based on performance and results.
• Finally, creativity can be focused intelligently - to solve highly specific problems.

Those managers who understand, and respect the creative power - the creative process - and how to manage, and to harness its force to produce results - will become, winning leaders - and their organizations, winning enterprises.

The last point -- become students of creativity. Use it, manage it, and teach it. It will reward you exponentially.

The second imperative, is the need to adopt the concept of "Enlightened Leadership."

Say goodbye to Mr. Tough Guy - the ugly, mean-spirited tyrant. He will be gone.

But how can one say that? In tough times - like these -- don't we need tough leaders?

Tough, yes, fair, yes, supportive, yes. Mean, nasty, tyrannical - no. Absolutely no!

Let's look back, at a bit of economic history, and learn from it.

In the early excess demand days, in a manufacturing-driven universe - the tough, mean-spirited tyrant could not only survive - he could thrive.

In that era -- humans were simply productive robots. What was asked of them was to produce:

• The more, the better
• The faster, the better
• The same, the better
• Don't think - just do.

In the excess supply world - all that has changed.

As we said, in the excess supply world:

• The customer is king.
• Relationships with customers are all important.
• Strong brands win.
• Every employee, is likely to impact - corporate success.
• More and more employees, interface with customers. And those interfaces matter more and more.
• To optimize enterprise value, every employee will soon be a creative contributor.

The enlightened leader will be defined by some new qualities:

• Understanding, communicating and convincing critical constituencies of the enterprise mission and its values.
• He or she must walk the walk.
• People pay attention to what you do, not what you say.
• People are genetically conditioned to learn as mimics, since childhood! Whatever kids take away from us is what we do; not just what we say. In sports, the military, and yes, business - mimicking is the way people learn to behave.