07 Jan 2013  Lessons from the Classroom

Culture Changers: Managing High-Impact Entrepreneurs

In her new Harvard Business School course, Creative High-Impact Ventures: Entrepreneurs Who Changed the World, professor Mukti Khaire looks at ways managers can team with creative talent in six "culture industries": publishing, fashion, art-design, film, music, and food.

 

Professor Mukti Khaire's challenge to management students is lofty, even by Harvard MBA standards. Don't just change the way people live, change the way they think. Change culture.

In her new elective course, Creative High-Impact Ventures: Entrepreneurs Who Changed the World, Khaire looks at ways managers can team with creative talent in six "culture industries": Fashion, publishing, art/architecture/design, film, music, and food. Her subjects include fashion pioneer Chanel, publishers Penguin and Atavist, film icons Variety and the Sundance Institute, Indian art auction house Saffronart, and food businesses Whole Foods and the James Beard Foundation.

Khaire created the course, she says, because these industries function in fundamentally different ways than those in industries more familiar to traditional HBS MBAs.

"You don't manage the creative process, you enable it"

"I worried about students going into these culture industries only thinking in terms of traditional management styles and industry structures, bottom lines, and financial incentives, without thinking about what 'creative content' and 'cultural product' means, what impact it can have and what motivates creative talent."

For example, most CEOs have little difficulty with a top-down management style and expecting their directives to be executed. But that model wouldn't fly at Chanel (or for that matter, any creative firm). "If you tell Karl (Creative Director Karl Lagerfeld) what to make, that's not going to work," Khaire says. "You don't manage the creative process, you enable it."

Culture-changing entrepreneurship explored in the course include:

Chef James Beard. During Beard's time of highest influence, the 1950s, great food and eating out were equated with European cuisine—American food was considered too rustic and parochial. Beard changed how the world thought about American food, in part by insisting on local ingredients and tapping into regional cuisines while exhorting other chefs to do the same. "Beard recast American cuisine, which had been underappreciated, as gastronomically valuable, thus promoting a different, locally sustainable food culture. Somewhat similarly, Saffronart harnessed academic discourse to recast twentieth-century Indian art as modernist, and therefore aesthetically and economically valuable," Khaire says.

Penguin Books. Before Penguin was founded by Allen Lane in 1935, serious literature—"good books"—was expensive and bound in hardcover; only lurid fiction was sold in paperback. "The good books were out of reach of all but the wealthy segments of the population," Khaire explains. With paperbacks, Penguin was able to lower the cost of good books—both reprints of classics and later new works by contemporary authors—and make them available to a wide audience. "Penguin's innovation was a delivery innovation" that opened people's eyes to a new world of literature and ideas, she says.

Sundance Institute. Founder Robert Redford's contribution in legitimizing indie films is akin to what James Beard did for American food. Sundance made indies and the different stories depicted in the genre more acceptable by "providing a way for people to understand independent cinema," Khaire says—establishing a criteria of quality and providing a stamp of approval. In workshops, selected filmmakers were mentored to realize their projects.

"I find it hard to believe that merely having an iPad will lead you to content that might make you change the way you think."

"We get inspired by people like Robert Redford, like Allen Lane, like James Beard, all of whom are true category creators," Khaire says. "They created new categories in the market for cultural goods and in turn shaped the way people think."

Doesn't move the culture

These individuals and their organizations are rare birds. Consider how difficult it is to create such culture-shaking products by thinking about other incredible innovations that, while inventive and useful, are not game-changers in the same way. In Khaire's view, the iPad, the automobile, and even the printing press, while revolutionary technologies, did not change culture on their own; rather, along with other social and economic changes, these products enabled changes.

What, the car not a culture-changer?

"I would never say cars didn't have a cultural impact, ever," she says. "But the act of buying a car alone does not go against what you hold dearest, against what is your sense of identity, against what you think is appropriate and valuable, the way that radical new cultural products do. When women started using the car—that alone did not change culture. But, when they used the car to go to work, which in turn was made possible by widespread upheavals that occurred at the time—that did. The car was an enabler. Technologies seldom change culture by themselves; they might enable change in significant ways, yet without new ideas that question our sense of right and wrong they matter less.

"I will admit," Khaire continues, "that most people don't like this kind of dichotomy. 'The iPad changed the way we think,' they say. The iPad has certainly changed the way we live, and it certainly has made it easier to access content that may change the way we think. But I find it hard to believe that merely having an iPad will lead you to content that might make you change the way you think."

The business of innovation

Creating culture-changing products and building industries around them is difficult on a number of fronts. First, almost by their nature, they rub up against accepted norms and conventions of appropriateness and value. "The very act of creating a market for some of these products that go against conventions and norms of what we value, and of what we think is appropriate, means that you have to change what we think is appropriate."

Take rap music and hip-hop culture, which sprang from a world that few people knew or understood. "Hip hop at the time didn't fit into anybody's conventions of what was appropriate and valuable," Khaire says. "It offended as many people as it delighted. But the fact that it sold is itself an indicator that somewhere, somehow, you managed to change people's way of assessing something as appropriate and valuable."

CollaboratingMarket-creating innovations also are difficult to introduce because there may not exist accepted criteria for evaluation, Khaire adds. When first encountered, Picasso's cubist deconstruction of the human form made viewers uncomfortable.

So at the outset you might be selling an idea that most people can't grasp or understand, that might make them squeamish, and where there are no accepted definitions of quality or value. One result: Demand is highly uncertain.

What does business management mean in this context? For some MBA students, the answers are something of an awakening. The ways that they have traditionally added value—by implementing top-notch business practices, using deep analytical skills to judge an opportunity or problem, creating process innovations—don't necessarily work in creative industries.

For example, when some of her MBA students look at the art market, they want to make it more "efficient" by using technology to get rid of all the intermediaries—galleries, museums, art catalogs—to put the artist in direct touch with buyers.

"The problem is that there is a reason why these industries have evolved with the structure they have," Khaire points out. Art-works have much more symbolic value than material value. "The criteria for value in these markets are different and not immediately obvious to consumers. So you need all these people, the seemingly inefficient intermediaries, to actually do that. They are constructing value, making market exchange possible; they are not just brokering the meeting."

"If you can shift one of these elements you can actually create a new market"

So instead of trying to get rid of intermediaries, one could figure out how to become one. "We talk about Variety, we talk about Sundance; they don't actually make films but are integral to creating a market for them. You can't imagine the film industry now without the Sundance Film Festival. This intermediary role is one where our students can enter the market."

It's also essential that managers understand the role of the creator in creative industries, Kahire emphasizes: how they work, their values, the fact that, as she puts it, creativity is not a general-purpose ability. "Salman Rushdie is immensely creative, but he writes 'Rushdie' books, and his publishers have to create a market for his books, not ask him to write books that will sell more easily than literary fiction," she says.

Managers in these industries have questions they must ask themselves, says Khaire. "Business school students do have a role in these industries, and being part of cultural change is potentially within their grasp. To think about how companies have dealt with this power in the past is the important thing. To think about whether this power is at odds with the profit motive is another interesting and important thing."

Another question: Do leaders in these industries give the audience what they want, or something new and different? Of course, the safe thing to do is to sell work that aligns with prevailing cultural norms and tastes, ensuring strong sales. But the sense of purpose that many in these industries have also propels them to introduce new work that questions and challenges these norms, even though that is more risky.

"So you have to ask, 'Do I want to direct or reflect? Do I want to simply reflect people's tastes as I see them or do I want to produce something that might change that?'"

Few creators set out to change the world. "Creators are really just creating, out there saying this is what I do. And then you—the record labels, agents, and other intermediaries—perform the role of saying this is something interesting that I would like people to see, hear, read. What they seek is to be showcasers. It is true of people in these industries that nonpecuniary motivations are fairly prominent and high."

During the course Khaire puts up a slide of the "4Cs," showing the intersection of commerce, culture, consumption, and commentary. "Commentary influences culture, which influences what we consume, which is influenced by what is actually out there in the market," she says. "If you can shift one of these elements you can actually create a new market."

In many ways the course—a sociologically-grounded way of thinking about business, culture, and impact—is not typically associated with MBAs, Khaire observes.

"It's very cool that we get that chance here. I can do this only because the School supports innovation and experimentation. That's the paradox. It's unlike HBS, but it could only be here."

About the author

Sean Silverthorne is Editor-in-Chief of Harvard Business School Working Knowledge.

Comments

    • David Livesley

    Good article! I think many of the ideas have a wider application than just to these industries though. For example, scientists are also creators, and the comment "you don't manage the creative process, you enable it" is how to think about managing a scientific institute. Its also true that scientists just create, they don't set out to change cultures although that can be a consequence, even though it is perhaps less obvious who the consumers are. And that then overlaps with how you manage other very clever people, such as top lawyers - who will do things their own way, whatever you tell them, and whose independence and creativity of thinking is exactly why they are so valuable.

     
     
     
    • Rajneesh
    • Director HR, EIH Limited

    An extremenly thoughtful, well researched piece of information. I am sure like me it would help millions others who are keen get the insight in such areas.

    Thank you

     
     
     
    • Carole Diamante
    • Research Consultant, Assumption College Phils.

    This is truly amazing. Being culture changers, enablers rather than simply being culture bearers and culture perpetuators. This may even start a new genre of Philosophy of Business in this era. Thinking about it, the whole thread of business innovation can and MUST initiate an entire universe of hermeneutical shift. The manner by which we think, act and do things are fashioned by the ideas and products that we create. Great piece indeed.

     
     
     
    • Ramu Iyer
    • Management Consultant, Slalom Consulting

    Business leaders in other industries should add a dash of the culture-changing entrepreneurial traits exhibited in the six culture industries. This will sow the seeds for enhancing creativity and jugaad innovations through improvisation. http://bit.ly/ATMcreativeconnections

     
     
     
    • Gagandeep Bhatti
    • Specialist, Nokia Siemens Networks

    Brilliantly written article and I really like the examples and the way of differentiating between the "enablers" and actual innovation that had changed culture.

     
     
     
    • Pankaj Sahai
    • Enterprise Consultant & Coach, Author: Smooth Ride To Venture Capital

    Great thoughts. The course idea itself is very creative and innovative -- I guess, Prof. Khaire is making her contribution in changing the typical MBA culture Harvard by bringing in new perspectives to venture creation and management !

    I feel that the managers who are mandated to grow such ventures need to have well developed HR attributes like empathy,apart from their specialized technical skills (finance etc). Also, they should be fundamentally interested in the core of the creativity-based business. So, if a Finance MBA has an abiding interest and some skills in music, he could make for a good enabler of value creation for an entrepreneur in the music domain by combining skills and interests with his professional expertise.

    4 Ramu Iyer : Your link is brilliant..Thanks

     
     
     
    • Kapil Kumar Sopory
    • Company Secretary, SMEC(India) Private Limited

    Culture changers are indeed high-impact entrepreneurs. They motivate creative talent. Creativity is not a common trait and it requires lot of depth to produce/create something better than the mundane, something which is novel in its own way and , at the same time, has intrinsic worth and utility. All this is a very serious subject which is often ignored despite its importance. Another aspect is that an object is creative only beause of its usage and not simply because it's posessed.

     
     
     
    • Mathews Daniel Kapiroo
    • Director, Notebook Solutions

    Great article. If only we could have one mind, objective and purpose in business at all times. Innovation would be easy.and.shaping the future would be natural. We all have brilliant ideas many times we fail to bring.them to life.

     
     
     
    • sridhar
    • Director, www.bizosys.com

    interesting! But then not anything that is reinvented creatively is bound to be accepted, especially in industries dictated by skewed influence or trends/fads. Perhaps, data is the new oil and one must collaborate with data scientists as much to succeed. IMO, Charles Duhigg brings this point out very well in his book on the Power of Habit - http://charlesduhigg.com/the-power-of-habit/

     
     
     
    • AdaPia d'Errico
    • Creative Strategy Consultant

    I am thrilled to read this article from HBS, knowing that a course with this content is being taught. The "culture" industries are fundamental as breeding grounds for the creation of demand of products. Toys are a good example. We need more managers who can enable creativity and take risks with bringing new, game-changing and industry-changing ideas and products to the market. We are underestimating consumers; they WILL embrace new, different and culture-changing ideas!

     
     
     
    • Prashant Joshi
    • Tech Manager, Jotun India Pvt ltd

    Really amazed to see that such a type of course has started in Harvard.Great learnings.I think creativity should also be included as the 1st C and then there will be a 5C model.

     
     
     
    • Arindam Samanta
    • proprietor, traditianol food processing Unit (small/micro industry)

    Fine , but i don't want to change the culture . i think differences of culture create more opportunity s , i like to go in to the culture & try to give more comfort ability with in the culture to community . so my consumers are from rich to under poverty level . Mutation is already going on in our society & in us ....

     
     
     
    • Larry Snyder

    For the past 15 years I have been working in the creative industry that has morphed into "fast fashion." In light of the widely-reported garment factory collapse in Bangladesh, I would like to pose the problem of how I would respond differently today were I a newly-minted MBA working in a routinely "outsourced' creative industry. Is it enough to simply advocate for new traceability technologies and responsible sourcing? How do I, in good conscience, "enable" a potential blockbuster in the glamorous but cutthroat world of fast fashion?