the people, the organizations, the national economies most likely to succeed are those with the ability to adjust and adapt. Robert H. Waterman, Jr., coauthor of the best-selling "In Search of Excellence," shows how and why this sort of innovation must become a way of life for business organizations across the board. What is needed is an environment that fosters the use of an ad-hoc problem-solving technique, in effect an "adhocracy" that functions outside the often initiative-stifling bureaucracy.