It is possible that organizations will use hard times as the occasion for introducing change, and these actions approximate the process of innovation. A demanding definition of innovation is an idea, practice, or product that is new, original, and cutting edge. It represents the invention of a new approach. A broader definition covers introducing change with the intention of improving process or results. The action is new to the organization and a departure from previous practice but not necessarily an original idea. This form of innovation involves the adoption of practice from another government or the incorporation of leading practices not formerly used. The destructive aspects of retrenchment with the loss of good people and programs makes it hard to look at a cutback period as a time of innovation. Such periods, however, are characterized by
widespread change, and we can learn from the innovation process to understand how this can happen at the same time as we recognize the special demands of achieving cutbacks.

This article is supporting documentation for the Alliance for Innovation Navigating the Fiscal Crisis white paper.