The story is all too familiar: A team that’s been batting a thousand suddenly strikes out. Consider the hypothetical case of CerealCo. The company secures a foothold in the breakfast foods niche with a plain but profitable line of low-sugar products and a commitment to continuous improvement. Now, senior executives want to duplicate their success in snack foods. Realizing that CerealCo lacks the marketing muscle to squeeze a copycat product into the crowded snack food market, senior management reassembles the cross-functional product development team responsible for its previous brand-extension initiatives. The task: Innovate. Devise a unique snack food that will seize market share by sheer distinctiveness and appeal.

A version of this article appeared in the August 2002 issue of Harvard Business Review.