Our research examines practices for managing project leaders as a component of an organization's capability for radical innovation. Our qualitative analysis of 246 interviews in twelve industry-leading corporations suggests that managers use performance-based assessment to select project leaders with demonstrated experience and skills for innovation, as well as passion that extends beyond a single project toward an awareness of its broader contribution to the organization's growth objectives. The managerial role includes concurrent hands-off/hands-on involvement, which balances autonomy and accountability with guidance. Additionally, downside/upside management involves removing the negative consequences associated with failure while providing recognition for the project leader's efforts. (C) 2011 Elsevier B.V. All rights reserved.