What is it that creates an innovative organization? As Diego Rodriguez talks about it in his most recent BusinessWeek Online article, "the key to unleashing innovative behavior is asking the question, ‘how can I help each person in my organization achieve a state of happiness on a daily basis?’" What’s interesting is that he’s not talking about making sure you’ve got bean bag chairs or nerf artillery (although those are really fun). He’s talking about integrating Mihaly Csikszentmihalyi’s concept of Flow into your org’s culture. What’s flow? "Flow occurs when the complexity of the thing you’re doing just outstrips your ability to get it done. In other words, it’s challenging, but not overwhelmingly so." Check out the article. Rodriguez makes a good case.