Why aren't businesses and organisations more innovative? Are they filled with dull, unimaginative people? Are they lacking crucial “core competencies”? Or are their people just not working hard enough?

The answer to those last three questions is no, no and no. Something else must explain the inability of companies to display greater innovative flair. What is it?

The problem for senior managers is that, as you walk round the business or study the organisational chart, nothing much may seem to be wrong. People are at their desks or in meeting rooms, hard at work. Something that looks like two-way communication appears to be taking place. And then there are all those e-mails, instant messages and texts. You can be confident that good ideas must be flowing freely within the organisation.