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The art of management

2011-02-22 07:52:18

Business has much to learn from the arts

Schumpeter

Feb 17th 2011 | from the print edition

ARTISTS routinely deride businesspeople as money-obsessed bores. Or worse.

Every time Hollywood depicts an industry, it depicts a conspiracy of knaves.

Think of Wall Street (which damned finance), The Constant Gardener (drug

firms), Super Size Me (fast food), The Social Network (Facebook) or The

Player (Hollywood itself). Artistic critiques of business are sometimes

precise and well-targeted, as in Lucy Prebble s play Enron . But often they

are not, as those who endured Michael Moore s Capitalism: A Love Story can

attest.

Many businesspeople, for their part, assume that artists are a bunch of

pretentious wastrels. Bosses may stick a few modernist daubs on their boardroom

walls. They may go on corporate jollies to the opera. They may even write the

odd cheque to support their wives bearded friends. But they seldom take the

arts seriously as a source of inspiration.

The bias starts at business school, where hard things such as numbers and

case studies rule. It is reinforced by everyday experience. Bosses constantly

remind their underlings that if you can t count it, it doesn t count. Quarterly

results impress the stockmarket; little else does.

Managers reading habits often reflect this no-nonsense attitude. Few read

deeply about art. The Art of the Deal by Donald Trump does not count; nor

does Sun Tzu s The Art of War . Some popular business books rejoice in their

barbarism: consider Wess Robert s Leadership Secrets of Attila the Hun ( The

principles are timeless, says Ross Perot) or Rob Adams s A Good Hard Kick in

the Ass: the Real Rules for Business .

But lately there are welcome signs of a thaw on the business side of the great

cultural divide. Business presses are publishing a series of luvvie-hugging

books such as The Fine Art of Success , by Jamie Anderson, J rg Reckhenrich

and Martin Kupp, and Artistry Unleashed by Hilary Austen. Business schools

such as the Rotman School of Management at the University of Toronto are trying

to learn from the arts. New consultancies teach businesses how to profit from

the arts. Ms Austen, for example, runs one named after her book.

All this unleashing naturally produces some nonsense. Madonna has already

received too much attention without being hailed as a prophet of

organisational renewal . Bosses have enough on their plates without being told

that they need to unleash their inner Laurence Oliviers. But businesspeople

nevertheless have a lot to learn by taking the arts more seriously.

Mr Anderson & co point out that many artists have also been superb

entrepreneurs. Tintoretto upended a Venetian arts establishment that was

completely controlled by Titian. He did this by identifying a new set of

customers (people who were less grand than the grandees who supported Titian)

and by changing the way that art was produced (working much faster than other

artists and painting frescoes and furniture as well as portraits). Damien Hirst

was even more audacious. He not only realised that nouveau-riche collectors

would pay extraordinary sums for dead cows and jewel-encrusted skulls. He

upturned the art world by selling his work directly through Sotheby s, an

auction house. Whatever they think of his work, businesspeople cannot help

admiring a man who parted art-lovers from 70.5m ($126.5m) on the day that

Lehman Brothers collapsed.

Studying the arts can help businesspeople communicate more eloquently. Most

bosses spend a huge amount of time messaging and reaching out , yet few are

much good at it. Their prose is larded with clich s and garbled with

gobbledegook. Half an hour with George Orwell s Why I Write would work

wonders. Many of the world s most successful businesses are triumphs of

story-telling more than anything else. Marlboro and Jack Daniels have tapped

into the myth of the frontier. Ben & Jerry s, an ice-cream maker, wraps itself

in the tie-dyed robes of the counter-culture. But business schools devote far

more energy to teaching people how to produce and position their products

rather than how to infuse them with meaning.

Studying the arts can also help companies learn how to manage bright people.

Rob Goffee and Gareth Jones of the London Business School point out that today

s most productive companies are dominated by what they call clevers , who are

the devil to manage. They hate being told what to do by managers, whom they

regard as dullards. They refuse to submit to performance reviews. In short,

they are prima donnas. The arts world has centuries of experience in managing

such difficult people. Publishers coax books out of tardy authors. Directors

persuade actresses to lock lips with actors they hate. Their tips might be

worth hearing.

Corporations chasing inspiration

Studying the art world might even hold out the biggest prize of all helping

business become more innovative. Companies are scouring the world for new ideas

(Procter and Gamble, for example, uses crowdsourcing to collect ideas from

the general public). They are also trying to encourage their workers to become

less risk averse (unless they are banks, of course). In their quest for

creativity, they surely have something to learn from the creative industries.

Look at how modern artists adapted to the arrival of photography, a technology

that could have made them redundant, or how William Golding (the author of

Lord of the Flies ) and J.K. Rowling (the creator of Harry Potter) kept trying

even when publishers rejected their novels.

If businesspeople should take art more seriously, artists too should take

business more seriously. Commerce is a central part of the human experience.

More prosaically, it is what billions of people do all day. As such, it

deserves a more subtle examination on the page and the screen than it currently

receives.

Economist.com/blogs/schumpeter