Creativity in BusinessCreativity in Business

Joseph F.X. ZahraJoseph F.X. Zahra

Joseph F.X. ZahraJoseph F.X. Zahra is co-founder & Managing Director of MISCO (Market Intelligence Services Co. Ltd.), with special is co-founder & Managing Director of MISCO (Market Intelligence Services Co. Ltd.), with special responsibilities for the People Management and Development Unit of the Company, Managing Director of MISCO International responsibilities for the People Management and Development Unit of the Company, Managing Director of MISCO International Ltd., and Director of Impetus Europe Consulting Group Ltd. He has held top public positions, amongst which those of Chairman Ltd., and Director of Impetus Europe Consulting Group Ltd. He has held top public positions, amongst which those of Chairman Bank of Valletta, Malta’s foremost Bank, Chairman for the Malta Council for Culture & the Arts, Chairman of Malta’s National Bank of Valletta, Malta’s foremost Bank, Chairman for the Malta Council for Culture & the Arts, Chairman of Malta’s National Euro Changeover Committee and Malta’s National Council for Higher Education.Euro Changeover Committee and Malta’s National Council for Higher Education.

CONTEXTCONTEXT

Moving Moving awayaway from “scientific management”, from “scientific management”, from F.W. Taylor’sfrom F.W. Taylor’s

““in the past man has been first; in the in the past man has been first; in the future the machine must be first”future the machine must be first”

The move towards modern The move towards modern managementmanagement

M = Technical Manager (TM) + M = Technical Manager (TM) +

People Manager (PM)People Manager (PM)

Holistic ManagementHolistic Management

People Manager = Leadership=People Manager = Leadership=

Organiser (O) + Organiser (O) + Motivator (M) +Motivator (M) + Developer (D) +Developer (D) +

????????

Today’s worldToday’s world

TechnologyTechnology DemocratisationDemocratisation EducationEducation Discerning and demanding customersDiscerning and demanding customers Globalisation meaning rationalisation, standardisation, Globalisation meaning rationalisation, standardisation,

higher efficiencyhigher efficiency Cost effectiveness: value for moneyCost effectiveness: value for money ““Back to basics” valuesBack to basics” values DiversityDiversity Intense competition meaning a search for the Intense competition meaning a search for the leading edgeleading edge

Now!Now!

get betterget better

and/orand/or

get differentget different

Red Ocean VERSUS Blue Ocean Red Ocean VERSUS Blue Ocean StrategyStrategy

W. Chan Kim & Renee MauborgneW. Chan Kim & Renee Mauborgne

RED OCEANRED OCEAN Compete in existing Compete in existing

market spacemarket space Beat the competitionBeat the competition

Exploit existing demandExploit existing demand

Align the whole system of Align the whole system of a firm’s activities with its a firm’s activities with its strategic choice of strategic choice of differentiation at low costdifferentiation at low cost

BLUE OCEANBLUE OCEAN Create Uncontested Create Uncontested

market spacemarket space Make the competition Make the competition

irrelevantirrelevant Create and capture new Create and capture new

demanddemand Align the whole system of Align the whole system of

a firm’s activities in pursuit a firm’s activities in pursuit of differentiation and low of differentiation and low costcost

TIMES CHANGED…TIMES CHANGED…

““Products for average looking women.” Products for average looking women.” early 1970s – a early 1970s – a renowned cosmetics company.renowned cosmetics company.

Such Marketing mediocrity worked, then.Such Marketing mediocrity worked, then.

Forget Normal, think Abnormal.Forget Normal, think Abnormal. The average is on the verge of extinction.The average is on the verge of extinction. Normal is the road to Nowhere.Normal is the road to Nowhere. Maximize every ounce of creativity and inspiration Maximize every ounce of creativity and inspiration

to nurture innovation.to nurture innovation.J. Ridderstrale & K. NordstromJ. Ridderstrale & K. Nordstrom

THE PEACOCK’ S TAILTHE PEACOCK’ S TAIL

Peahen: Wow! What a guy!Peahen: Wow! What a guy! Is he alive?! Because he shouldn’t be!!Is he alive?! Because he shouldn’t be!!

If he can survive with such a flamboyant outfit you If he can survive with such a flamboyant outfit you must have some extra energy, be really smart or must have some extra energy, be really smart or have some really good genes.have some really good genes.

The peahen goes crazy!The peahen goes crazy!

It’s the theory (or the tale) of “ a credible handicap” !It’s the theory (or the tale) of “ a credible handicap” !

Research in neuroscience has Research in neuroscience has shown that...shown that...

The brain’s limbic system which governs our The brain’s limbic system which governs our feelings is much more powerful than the neo feelings is much more powerful than the neo cortex which controls intellect.cortex which controls intellect.

Doing “meaningless” things to get potential Doing “meaningless” things to get potential partners to think: That Guy must have some partners to think: That Guy must have some extra energy, be really smart…extra energy, be really smart…

““The Economies of Soul”The Economies of Soul”

Create emotional experienceCreate emotional experience Manipulate moodsManipulate moods Seduction or sedationSeduction or sedation Ambiguity pays.Ambiguity pays.

BMW and GUCCI are substitutes for BMW and GUCCI are substitutes for Prozac.Prozac.

The next step:The next step:

The evolution of the Creative Company The evolution of the Creative Company That necessitates a Creative ManagementThat necessitates a Creative Management

M=TP + PMM=TP + PM PM = L (achieving results through people)PM = L (achieving results through people) PM = L = O + M + D + Innovator (I)PM = L = O + M + D + Innovator (I)

David OgilvyDavid Ogilvy““our business needs a massive our business needs a massive

transformation of talent . . . . transformation of talent . . . .

and talent, I believe, and talent, I believe,

is most likely to be found amongst is most likely to be found amongst

non-conformists, dissenters and rebelsnon-conformists, dissenters and rebels””

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“ “I never, ever thought of myself as a I never, ever thought of myself as a businessman. I was interested in businessman. I was interested in creating things I would be proud of.”creating things I would be proud of.”

Richard BronsonRichard Bronson

??

““Are there enough weird people in the Are there enough weird people in the lab these days?”lab these days?”

Vice Chairman of a large pharmaceutical company to his lab directorVice Chairman of a large pharmaceutical company to his lab director

Transformation…Transformation…

Agricultural Age (farmers)Agricultural Age (farmers) Industrial Age (factory worker)Industrial Age (factory worker) Information Age (knowledge worker)Information Age (knowledge worker) Conceptual Age (Creators and empathizers)Conceptual Age (Creators and empathizers)

Dan Pink: “A Whole New World”Dan Pink: “A Whole New World”

Business needs changeBusiness needs change

Ideas, ideas, ideas…Ideas, ideas, ideas… Product development and innovationProduct development and innovation New brands and new designsNew brands and new designs Needs that are TRULY the Needs that are TRULY the needsneeds of clients. of clients. How best to use information communication How best to use information communication

technologytechnology How best to keep talentHow best to keep talent

How can business respond to this?How can business respond to this?

Need for empowermentNeed for empowerment Need for initiativeNeed for initiative Need for product development/differentiationNeed for product development/differentiation Need to see clients as the weave of Need to see clients as the weave of

society’s fabricsociety’s fabric Need to rethink and reengineer processesNeed to rethink and reengineer processes Need to improve quality continuouslyNeed to improve quality continuously

from HR to HEDfrom HR to HED

HUMANHUMAN

ENABLEMENTENABLEMENT

DEPARTMENTDEPARTMENT

Tom PetersTom Peters

NOTE:NOTE:

““I never discovered anything with I never discovered anything with

my rational mind”my rational mind”

EinsteinEinstein

NOTE:NOTE:

““intuition is not a dirty word”intuition is not a dirty word”

EinsteinEinstein

How does business respond?How does business respond?

A more open management – empowerment of peopleA more open management – empowerment of people Listening more to customersListening more to customers Suggestion schemesSuggestion schemes Training in creativityTraining in creativity Creativity and Innovation in all business schoolsCreativity and Innovation in all business schools Teamwork at the shop floorTeamwork at the shop floor Total Quality ManagementTotal Quality Management Getting artists to the boardroomsGetting artists to the boardrooms Getting artists talking to managementGetting artists talking to management The Balanced ScorecardThe Balanced Scorecard

Which means: not being afraid of Which means: not being afraid of making mistakes!making mistakes!

““Reward excellent failures, Reward excellent failures, punish mediocre success”punish mediocre success”

Phil Daniels, Sydney executivePhil Daniels, Sydney executive

MicrosoftMicrosoft

““If Microsoft is good at anything, it’s avoiding If Microsoft is good at anything, it’s avoiding the trap of worrying about criticism. the trap of worrying about criticism.

Microsoft fails constantly. They’re eviscerated Microsoft fails constantly. They’re eviscerated in public for lousy products. in public for lousy products.

And yet – they persist, through version after And yet – they persist, through version after version, until they get something good version, until they get something good enough”enough”

Seth Godin: “Seth Godin: “ZoomingZooming””

Business reactionBusiness reaction

The importance of innovation…The importance of innovation…

which can which can onlyonly take place if there is take place if there is space for Creativityspace for Creativity

The Paradigm ShiftThe Paradigm Shift

“ “ The paradigm is not based on established The paradigm is not based on established principles or existing technology, much less principles or existing technology, much less conventional wisdom or research. conventional wisdom or research.

It relies on the rock’ n’ roll spirit of rebellion, It relies on the rock’ n’ roll spirit of rebellion, anarchy, enthusiasm, iconoclasm, anarchy, enthusiasm, iconoclasm, boundless self belief and give-it-a-go boundless self belief and give-it-a-go chutzpah.”chutzpah.”

Stephen Brown: “Stephen Brown: “Wizard! Harry Potter’ s Brand MagicWizard! Harry Potter’ s Brand Magic””

TENSIONTENSIONCreativity through DestructionCreativity through Destruction

Choice – Build or Destroy?Choice – Build or Destroy?

Globalization and micro cultural awarenessGlobalization and micro cultural awareness Digitisation and Democracy : the digital native and Digitisation and Democracy : the digital native and

“the” native“the” native Privacy and Claustrophobic SecurityPrivacy and Claustrophobic Security Customer Demand and Customer MenaceCustomer Demand and Customer Menace Regulation and CompetitionRegulation and Competition Public and Private Partnerships and ChaosPublic and Private Partnerships and Chaos Creativity and Commoditised Creativity?Creativity and Commoditised Creativity?

QUESTIONQUESTION

Would we need to redefine Would we need to redefine CreativityCreativity??

Creativity in Business.Creativity in Business.Joseph F.X. ZahraJoseph F.X. Zahra