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Creativity, Inc.

Tags: #business #management #leadership #creativity #culture #innovation #teamwork #film #animation

Authors: Ed Catmull, Amy Wallace

Overview

In ‘Creativity, Inc.,’ I share the lessons I’ve learned over the past four decades about building and sustaining a creative culture. Pixar’s success isn’t the result of some magical formula. It’s a consequence of paying attention to the often-unseen dynamics that can make or break a company, to understanding the hidden forces that cause smart, creative people to make bad decisions. These forces are powerful, they are often invisible, and they lurk even in the best of environments. One of my central arguments is that change is inevitable and that the desire to prevent it from happening often leads to unintended consequences, to poor short-term decisions, to derivative products, and to an unhealthy work environment. A related argument is that mistakes are inevitable and that if you try to prevent them from happening, then the cost of preventing them will be far greater than the cost of fixing them. My goal in this book is to share the mechanisms we’ve developed at Pixar for identifying and minimizing the impediments to creativity and to suggest ways that other leaders can cultivate their own healthy, collaborative creative environments. There is no magic formula for creating a thriving company, but there are best practices that any organization can adapt to its own needs. I believe that the most important responsibility of a good leader is to protect the new–to create a culture that will continue to invent long after its founding members are gone. While this book focuses primarily on our experience at Pixar, the principles I explore are applicable to businesses of all kinds. Anyone who has ever struggled to get a team to function more efficiently, anyone who has ever sought to bring a product to market, anyone who has ever wanted to unlock the creative potential that resides in every one of us will, I believe, learn something from the journey I describe.

Book Outline

1. ANIMATED

My experience with Pixar’s long, thin conference table illustrates how physical space can send messages that stifle creativity. I believed that all voices should be heard, but inadvertently, our meeting arrangement unintentionally prioritized rank over creative contribution. Recognizing and correcting this problem was a key step in our evolution.

Key concept: Job titles and hierarchy are meaningless when it comes to creative inspiration. Unwittingly, companies can end up stifling the creativity they desire by how their physical spaces and meeting arrangements send unintended messages about who is allowed to contribute.

2. PIXAR IS BORN

This chapter explores the beginnings of Pixar, formed when George Lucas, impressed by our computer graphics work at NYIT, invited me to join Lucasfilm in 1979 and head up a new computer division. One of the first things I learned was to ignore my fear of hiring people smarter than I was and to take a chance on hiring Alvy Ray Smith to be my lead scientist.

Key concept: Always take a chance on better, even if it seems threatening.

3. A DEFINING GOAL

As president of Pixar, I realized that I had a lot to learn about the business side of running a company. The biggest takeaway from this period was that people are more important than ideas. Success as a company depends on finding, developing, and supporting good people.

Key concept: Getting the team right is the necessary precursor to getting the ideas right.

4. ESTABLISHING PIXAR’S IDENTITY

This chapter introduces the two principles that guided us through Pixar’s early years: ‘Story Is King,’ meaning prioritize compelling storytelling above all else, and ‘Trust the Process,’ meaning we believe in the iterative nature of creative problem-solving and are confident that our process will carry us through. The importance of both principles was driven home during the making of Toy Story 2 when we were forced to reboard the entire movie nine months before its release date.

Key concept: “Story Is King” and “Trust the Process.”

5. HONESTY AND CANDOR

This chapter explores the function and dynamics of the Braintrust, Pixar’s mechanism for giving and receiving honest feedback on our movies. The key to the Braintrust’s success, I argue, is the absence of authority. Because no one can be compelled to follow a specific piece of advice, there’s less fear of candor and thus a greater likelihood that people will express what they really think.

Key concept: The Braintrust is a group of people at Pixar who have a deep understanding of storytelling and offer candid feedback to directors. It’s important to remember, though, that the Braintrust has no authority; the director does not have to follow any of the suggestions given.

6. FEAR AND FAILURE

Here, I explore the concept of failure. Most people try to avoid failure, but failure is an essential part of learning, and companies should normalize failure as a natural byproduct of innovation. It’s essential to think of mistakes not as something to be ashamed of but as opportunities for growth and learning. Moreover, a willingness to fail encourages people to take creative risks.

Key concept: Failure isn’t a necessary evil. They aren’t evil at all. They are an inevitable consequence of doing something new (and, as such, should be seen as valuable).

7. THE HUNGRY BEAST AND THE UGLY BABY

This chapter introduces the concept of the Hungry Beast–the relentless demand for product that can overwhelm even the most creative companies. The Beast is not always bad, however; it translates into deadlines and urgency, but the danger is that the needs of the Beast can eclipse the needs of the Ugly Baby–our term for the delicate, unformed new ideas that need nurturing in order to evolve into their best selves.

Key concept: You’ve got to feed the Beast.

8. CHANGE AND RANDOMNESS

This chapter explores the concepts of change and randomness. Both are inevitable, but while many people resist change and fear randomness, I argue that it is precisely by accepting, even embracing, these forces that we can keep our companies creative. The key to surviving change is not to try to prevent it from happening but to build a culture that is resilient. The key to managing randomness is not to try to out-think it but to build the ability to recover when it inevitably disrupts our plans.

Key concept: Play the ball where the monkey drops it.

9. THE HIDDEN

This chapter explores what I call the Hidden–the things we do not or cannot see. I argue that we must constantly question what is hidden from us if we want to make effective decisions. I illustrate this with several personal examples that demonstrate the limits of perception as well as the many ways that our own biases distort our view of the world.

Key concept: If you don’t try to uncover what is unseen and understand its nature, you will be ill prepared to lead.

10. BROADENING OUR VIEW

In this chapter, I explore some of the methods we use to try to ensure that our movies–and our company–don’t become complacent as they grow larger and more successful. A key principle is ensuring that no single constituency–story, art, budget, technology, etc.–ever gains too much power. This requires managers to keep many different forces in balance.

Key concept: “If any one of those groups ‘wins,’ we lose.”

11. THE UNMADE FUTURE

This chapter explores how filmmakers think about the unmade future and how those mental models can help them deal with the pressure of being asked to create something new that may not succeed. I also argue that it is in the best interests of any creative company to create the optimal conditions for originality and to keep their doubts at bay while pushing toward new, unknown outcomes.

Key concept: The Unmade Future is the idea that the future is not an alternate reality but something even harder to fathom: that which has not yet been created.

12. A NEW CHALLENGE

This chapter explores how, after Pixar was acquired by Disney, John Lasseter and I sought to transfer our company’s values into a larger, more established corporate environment. This required us to take on many challenging tasks and to adapt to new realities–but we approached the process with confidence, believing that the same principles that had worked at Pixar could also work at Disney.

Key concept: Any failure at a creative company is a failure of many, not one.

13. NOTES DAY

The final chapter focuses on Pixar’s “Notes Day.” Facing several crises at once–our production costs were skyrocketing while our creative output seemed to be stagnating–we decided to shut down production for the day to ask our employees for solutions. This process was so successful that it not only identified some very valuable money-saving ideas, but it reenergized Pixar’s people and helped our company reclaim its innovative spirit.

Key concept: Notes Day is an example of how to encourage creativity by asking the tough questions.

Essential Questions

1. What are the hidden forces that impede creative progress, and how can leaders effectively address them?

The central argument of ‘Creativity, Inc.’ is that building a sustainable creative culture requires acknowledging and actively addressing the hidden forces that impede creative progress. Key supporting ideas include the importance of candor, embracing failure as a learning opportunity, balancing the needs of the ‘Hungry Beast’ (the demand for product) with those of the ‘Ugly Baby’ (nascent ideas), and understanding the pervasive influence of change and randomness. The author’s purpose is to share the management principles he’s developed at Pixar to empower creative people and encourage innovation. The book’s implications are far-reaching, as the principles can be applied to any organization that seeks to foster creativity and problem-solving.

2. How does Ed Catmull redefine the concept of ‘creativity,’ and what are the implications for building successful teams?

Catmull argues that the traditional view of creativity as a singular, visionary act is a misconception. Instead, he posits that creativity is an iterative process, emerging from a multitude of small decisions made by teams of people working together. He emphasizes the importance of creating a culture of collaboration where diverse viewpoints are valued, honest feedback is encouraged, and experimentation is embraced. This challenges the romantic notion of the lone genius and highlights the importance of building strong teams with the right chemistry.

3. How does fear impact creativity, and what strategies can managers implement to mitigate its negative effects?

The author argues that fear, while a natural human response, can be a significant impediment to creativity. He emphasizes the need for managers to create a psychologically safe environment where employees feel comfortable taking risks, sharing ideas, and admitting mistakes. By normalizing failure as a learning opportunity, Catmull believes that companies can foster a more innovative and resilient culture. This challenges the traditional corporate emphasis on avoiding mistakes at all costs.

Key Takeaways

1. Always take a chance on better, even if it seems threatening.

In the book, this is illustrated through several examples, including the hiring of Alvy Ray Smith, who initially seemed more qualified to lead Pixar than Catmull himself. By overcoming his insecurity and taking a chance on someone smarter, Catmull built a stronger team and learned a valuable lesson about the importance of surrounding himself with talented people.

Practical Application:

When assembling a team for a new AI project, prioritize candidates who demonstrate intellectual curiosity, a collaborative spirit, and a willingness to learn and adapt. Look for individuals who challenge assumptions and bring fresh perspectives, even if they lack experience in the specific domain of AI. Their potential to grow and contribute to the team’s overall intelligence is more valuable than their current skillset.

2. Create a culture of candor and honest feedback.

The Braintrust at Pixar is comprised of experienced storytellers who provide candid feedback to directors on their films. The key to the Braintrust’s success is that it has no authority; the director does not have to follow any of the suggestions given. This removes the fear of making mistakes and allows for open discussion and exploration of ideas.

Practical Application:

In an AI development team, create a ‘Braintrust’ comprised of engineers, data scientists, product managers, and ethicists. This group should meet regularly to discuss the project’s progress, identify potential problems, and offer candid feedback. Importantly, the team leader should not be required to implement any of the suggestions, fostering an environment of psychological safety and open communication.

3. Embrace failure as a learning opportunity.

Catmull emphasizes that failures are inevitable, especially when innovating. Instead of punishing mistakes, he encourages framing them as learning opportunities. Pixar’s approach to reboarding Toy Story 2 exemplifies this principle. Rather than assigning blame for the film’s initial shortcomings, the team focused on fixing the story, trusting their process, and ultimately creating a stronger film.

Practical Application:

If an AI project encounters a significant setback, such as an algorithm failing to achieve desired results, don’t rush to blame individuals. Instead, gather the team to analyze the problem, dissect its root causes, and brainstorm solutions together. Frame the discussion as a learning opportunity, emphasizing the value of experimentation and iteration in AI development.

Memorable Quotes

Animated. 16

When it comes to creative inspiration, job titles and hierarchy are meaningless.

A Defining Goal. 83

Getting the team right is the necessary precursor to getting the ideas right.

The Hidden. 89

If you give a good idea to a mediocre team, they will screw it up. If you give a mediocre idea to a brilliant team, they will either fix it or throw it away and come up with something better.

Fear and Failure. 133

Failure isn’t a necessary evil. They aren’t evil at all. They are an inevitable consequence of doing something new (and, as such, should be seen as valuable).

The Hungry Beast and the Ugly Baby. 148

The world is often unkind to new talent, new creations. The new needs friends.

Comparative Analysis

While ‘Creativity, Inc.’ shares common ground with other books on leadership and management, such as ‘Good to Great’ by Jim Collins or ‘The Innovator’s Dilemma’ by Clayton Christensen, it offers a uniquely personal and insightful perspective grounded in the author’s experiences at Pixar. Unlike books that focus primarily on quantitative analysis or business strategy, Catmull emphasizes the importance of building a sustainable creative culture. He delves into the complexities of human interaction, the role of psychological safety, and the importance of candor and constructive criticism, topics often overlooked in traditional business literature. His emphasis on ‘protecting the new,’ encouraging experimentation and embracing failure aligns with concepts found in books like ‘The Lean Startup’ by Eric Ries, but with a particular focus on fostering artistic vision within a corporate structure.

Reflection

While Catmull’s insights are compelling and grounded in his experience at Pixar, it’s crucial to recognize the limitations of his perspective. His focus on fostering a creative culture may not fully translate to all industries, especially those with stricter regulatory requirements or safety concerns. Additionally, while embracing failure is valuable, it should be balanced with a strong emphasis on learning from mistakes and implementing safeguards to prevent catastrophic failures. The book’s strength lies in its detailed exploration of the human element in creative endeavors, emphasizing the importance of communication, trust, and psychological safety. However, it could benefit from a more nuanced discussion of the ethical considerations and potential downsides of rapid innovation, especially in the context of AI development. Overall, ‘Creativity, Inc.’ offers a valuable framework for understanding and managing creative teams, but its principles should be applied thoughtfully, considering the specific context and potential risks involved in each situation.

Flashcards

What was the key lesson learned from the Toy Story 2 production crisis?

Prioritize the quality of your product or service over hitting deadlines. If you have to choose, go for quality.

What are the two core principles that emerged from Pixar’s early years?

Story is King and Trust the Process

What is the Braintrust?

A group of experienced storytellers at Pixar who provide candid feedback to directors on their films.

What is crucial about the Braintrust’s authority?

The director doesn’t have to implement any of the suggestions.

What is an ‘Ugly Baby’?

A term for early versions of Pixar films, acknowledging that they are often rough and unformed but need nurturing to evolve.

What is the ‘Hungry Beast’?

The relentless demand for new products that can overwhelm even the most creative companies.

What is Notes Day?

A day dedicated to brainstorming solutions for making Pixar more innovative and efficient by gathering input from all employees.