In an era of globalization, intense competition and unpredictability, organizational creativity is increasingly important and, hence, tapping into the power of imagination in the work setting is propelled to unprecedented heights. This article explores how imagination is encouraged among employees within a successful NPD consultancy (Lunar Design Inc.) through the processes of ‘initiating’, ‘defining’, ‘imagining’ and ‘implementing’ ‘blue sky’ projects. Such activities enhance creative thinking, generate new knowledge, break down stereotypes, enhance employees’ morale and satisfaction and build a reputation of a visionary organization. We urge managers to address the hidden danger of pigeonholing conventional work as mundane, especially in times of a recession where more structure needs to be incorporated in ‘blue sky’ activities.