Creativity, my students learn, is as natural a function of the mind as breathing or digestion are natural functions of the body.
Every day, there are 770 million Cokes consumed, which means that there are 770 million purchasing decisions made each day regarding the product. To support those decisions, the company must constantly reinvest in its marketing links to its customers. As a result, a high level of creativity must go into everything the company does, from cause-related campaigns - Coca-Cola and its sponsorship of the Olympic Village in Atlanta, for example - to new catch phrases, commercials, marketing slogans, advertising campaigns and promotional tie-ins.
There's real "right brain" creativity that goes into all of the organizational processes that a company utilizes and must continually reinvent in order to conduct its business. But there are also the "left brain" accounting functions that must continually ask how the company is doing financially and whether the creative processes are working for the bottom line.
Creativity is the crucial variable in the process of turning knowledge into value
I would argue that the management of creativity requires a skill set that's relatively different from the traditional management skill set that is appropriate to a large, complex, industrial-era organization.
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.
The management of creativity is more intimate. By that I mean that it deals with an individual's personal, psychological landscape. It deals with the way you create relationships. It deals with creating an atmosphere and environment that support the creative process. As a result, it is a management skill set that is inherently psychological and that encourages desired outcomes rather than demands those outcomes.
When you come into a creativity-driven environment, things are very different and there is the danger that a traditional managerial mind-set could even do damage. That is because managing creative teams and people is very different from managing the factory worker/foreman relationship.
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.
The C.E.O.'s job in a creativity-driven company is to be an impresario, not a manager.
There are some pretty obvious ways of benchmarking creativity. One way is to perform what I call a creativity audit, which is to look at your capabilities and look at your performance and examine the percentage of revenue that comes from products that are less than five years old, less than three years old and that are current with the present accounting period. You can then compare those figures to those of your competition along the same axes.
The traditional model for a company like Coca-Cola is to hire one big advertising agency and essentially outsource all of its creativity in that area. But Coca-Cola does not do it that way. It knows how to manage creative people and creative teams and it has been quite adept at building a network that includes the Creative Artists Agency in Hollywood, which is a talent agency.
Conducting a creativity audit can be very illuminating because it can tell you how the process is working internally and against the competition.
It takes creativity at every stage to make the discontinuous leap from one level of knowledge to the next. These discontinuous leaps of understanding lead to insights that in turn lead to value creation.
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