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The C.E.O.'s job in a creativity-driven company is to be an impresario, not a manager.
John Kao
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John Kao
Age: 74
Born: 1950
Born: January 1
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Manager
Managers
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Creativity
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Impresario
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Coca-Cola can get really fresh output because it is getting people who are outside the traditional model and they are combining ideas in very novel ways.
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Obviously businesses do not operate like an artists' commune. Business involves deploying finite resources to achieve goals in a competitive environment to make money. That is something creative people understand.
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If you come up with a new product, you can very easily track its contribution to the bottom line. But often the challenge can be both large and subtle.
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The creative process is different from the traditional production and work-flow process. It is not so linear.
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The conventional asset-allocation method is like sheet music. It is prescribed, it has right answers and wrong answers and it sounds about the same every time. But jamming is different. Jamming is when you make the music. When you improvise and adapt to conditions. When you are creative.
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Managing the creative process means selecting the best people and then letting them do their work. That means nurturing. It also means, from time to time, creating drama - even uncertainty - so that the creative environment has an edge to it, a charge, and does not run out of steam.
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Creativity is not like the weather: You can do something about it. And you can measure it well enough to determine its effect on sales and profits.
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Companies have to take risks to get new knowledge, in a manner similar to how jazz musicians take risks when they go after a new approach to a tune or a performance.
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A pioneering and invaluable work about what it really takes to build innovation capability in society.
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Jamming - which follows rules but not individual notes - gives you a different result each time, depending upon the players and the conditions in which they find themselves. It is adaptable to changing conditions.
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The head of a record label sets up structures, but he also defines the sound of the label, which is to describe what is desirable, what fits and what is quality for that label and then to create an environment where that sound can thrive.
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The impresario's job is to pick the right people who can pick the right people. He picks the people who can pick artists and relate to them. People who know what the market craves.
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The traditional managerial mind-set is an analytical mind-set. It is about creating accountability and defining responsibilities.
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The larger the price tag, the more you have to adopt what I call the postmodern management approach. What I mean by that is that you have to use everything when you make a decision.
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The capacity to creatively improvise is an important factor that differentiates successful companies - or teams - from those that are not successful.
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Jazz musicians can be great teachers of business. Their creativity is not dependent on their mood, it does not have to be coaxed out of them, it has nothing to do with the phases of the moon or even how they feel that day. They go on stage and start playing. Being creative is their job.
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You need judgment, you need to utilize conventional resource-allocation analysis, you have to work backward from estimations of the market to the current investments and you have to do some benchmarking of your product and its potential against your competition.
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Instead of command and control, managing the creative process is about facilitating and permitting.
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You are able to create an environment so that the creative process can take place and that you can get people to perform at their highest levels.
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The manager's job - the impresario's job - is to preside over the company's efforts to jam so the business runs really well.
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