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The state of Jammu and Kashmir has witnessed the formation of alliances across cultural and religious lines in order to find a solution to Kashmir crisis. However, the actualization process has suffered major defeats. This paper reviews the history of development of leadership in Jammu and Kashmir and brings forth the factors that led to its failure in resolving conflict. Further, it introduces the innovative mechanisms that can be clubbed with effective leadership in devising a workable solution to this crisis. Also, a comparison is made of the situation from the world of management to managing the Kashmir crisis. A model of leadership is also presented that makes use of divergent mode of strategic innovation offering workable solutions by incorporating culture, structures and various processes. The analysis in the paper suggests that Kashmir over the years has witnessed the emergence and withdrawal of leaderships and strategies of various types with each resulting in disorder of peculiar kind. From celebrating nationalistic sentiments to mourning the deaths of killed terrorists, the region now testifies for diluted or weakened leadership with conflicting interests, detrimental to near-term solutions.