Whether adjusting to a new environment or to an evolving threat, America's Army of the 21st century must be adaptable and become more innovative. The operational environment is becoming more complicated and complex. Societal trends, such as globalization and the impact technology has and continues to have are some of the trends that contribute to this complexity, leading to numerous challenges for an operational force. Whether faced with a thinking and dynamic enemy or an unfamiliar and challenging environment, Army forces must be able to adapt but also-and perhaps more importantly-to innovate in order to maintain the initiative. To facilitate and improve organizational change that produces leaders who are innovative as well as adaptive the Army must institutionally reevaluate how it trains, educates and develops field grade leaders, in order to ensure that they are innovative and adaptable and moreover, that they are willing to underwrite risk and reinforce innovation of subordinates within their organizations. This is perhaps even more critical as it will enable innovation throughout the institution and potentially transform or fundamentally change the approach to officer education. Army leadership doctrine addresses innovative and adaptive leadership but could do this more effectively. Corporate approaches to innovation within the contemporary business world are relevant, even though there are distinct differences between corporations and the Army. Learning organization behavior, the concept of complex-adaptive problems and organizational culture are concepts that can be applied to both business corporations and the Army. Academic research provides a view of how hierarchical and bureaucratic organizations improve organizational innovation within their respective culture. Changes the Army can and must make involve leadership, doctrine, training and education to move from a culture of process to a culture of innovation. Army leadership can make changes that over time can foster a change to Army culture. Leadership must be committed to learning, underwrite experimentation, and create an environment that generates creative thought and innovation. Doctrine must incorporate more aspects of innovation, creative and critical thinking and innovative leadership. The Army's training constructs produce adaptive leaders, but must start to assess innovation as well, in order to generate this within the force as well. The most critical area the Army must focus change in is within Professional Military Education for field grade officers. Intermediate Level Education and the Command and General Staff College must focus on generating critical thinkers who can address the complex-adaptive problems the Army will face in the future, from state and non-state actors in the complex operational environment of the 21st Century. The Army must conduct a review of ILE to evaluate the schools effectiveness in accomplishing stated goals. The Army must produce leaders who have the skill and imagination to generate new ideas; that are innovative and generate change based on critical and creative thinking. These leaders must be capable of looking at problems in a different context and reconceptualizing the variables associated with complex-adaptive problems. This will enable them to deal with complexity more effectively and provide innovative solutions enabling the Army to seize and maintain the initiative while fighting an agile and thinking enemy. The ability of the Army to continue transformation and to fight and win the nation's wars will depend on its ability to produce filed grade officers who demonstrate critical thinking skills and are innovative leaders for their units and the institution.