ABSTRACT
This chapter examines the process of forming and implementing change as one of the fundamental prerequisites to enhance any innovation in an organization. It provides an overview of a key leadership theories which focus on change, creativity and innovation followed by a critical assessment of leadership as a central element of managing change. The dynamic external environment is a significant driver of change and innovation. Organizations can thrive in this environment if leaders and followers identify emerging patterns and seize opportunities presented by these external changes. The famous author John Kotter discusses the issue of change in his most recent articles, stating that change and innovation are closely related and overlapping. Internal processes also require the introduction of change, which is painful to their employees and challenging to design and implement effectively. A significant reduction appeared in the implementation of incremental changes in 2015.
