Intellectual challenges, alone with sufficient resources and freedom to experiment are the ideal ingredients of a creative workplace.
Managers should encourage innovative thinking and be trusting, and supportive towards the team, while being receptive to new ideas. Clear, honest communication, along with clarity of goals fosters a free flow of ideas, important for high creativity.
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"Innovation distinguishes between a leader and a follower." - Steve Jobs. Striving not to be a follower.
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