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CultureLabel Intelligent Naivety


Intelligent Naivety is inspiration for would be Cultural Entrepreneurs from the founders of, an online marketplace for cultural shopping from the world’s coolest culture brands. See …

Intelligent Naivety is inspiration for would be Cultural Entrepreneurs from the founders of, an online marketplace for cultural shopping from the world’s coolest culture brands. See and for more about how we work with cultural organisations all around the world

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  • 1. INTELLI-GENTnaivetyCommercial Opportunities forMuseums & Culture InstitutionsSIMON CRONSHAW & PETER TULLINWITH A FOREWORD BY MARCEL KNOBIL,FOUNDER OF SUPERBRANDSaproduction in partnership with
  • 2. FOReword: Where would Citroen be without Picasso, L’Oréal without De Stijl, Hovis without Dvorak, etc? Product design and itsCommerce has promotion frequently exploit a feast of cultural inspiration. But has the ‘Culture Vulture’ delivered much in return?borrowed so It certainly isn’t a one-way relationship, but it’s not a marriage of equal partners.much from For cultural endeavour to flourish, as it deserves to do so, it needs to capitaliseculture. But upon entrepreneurial talent and approaches. This isn’t compromise it’s enterprise.has culture Not only does ‘Intelligent Naivety’ recognise that there can be a fruitful marriage betweenborrowed culture and commerce but it provides excellent marriage guidance. As culture and business increasinglyenough from become interwoven there will obviously be some critical challenges ahead.commerce? They include the complex navigation of capitalising upon the skills of commerciality whilst maintaining cultural integrity. It’s demanding; it provides ample opportunity; it’s frightening; it’s the art of the possible. I have no doubt that many relish the ride on the cultural brand wagon. Marcel Knobil Founder of Superbrands and Creative & Commercial
  • 3. ‘Entrepreneurship’... have you ever heard In this book, we’ve attempted to introduce such a colourless word for describing some of our thinking. Our snippets are such an electrifying activity? Where has its intended to be used as diving boards sense of liberation and immediacy gone? for your own thoughts and responses, The spirit of ‘entre’: to undertake, to do, to rather than fully-formed answers. They act, to create. No forms to fill in, no waiting are woven around seven areas that we for permission, no dilution, no excuses, no believe are critical to get right in order boundaries... Just knowing your customers, for entrepreneurship to flourish within a spotting a great idea you know they’ll love, museum or culture institution. We hope that and getting on with doing it. you’ll use them to stimulate debate and ask questions, to review established norms and Words aside, where better to get on and to explore new perspectives.HELLO do great ideas than the space where culture and consumers meet? A space ripe for new, At its heart, entrepreneurship is one big original thinking as mainstream consumers balancing act – hence ‘intelligent naivety’: demand more and better interactions with the rational and the instinctive representing cultural content, experiences and brands. just two ingredients essential for the mix. As entrepreneurship is all about supplying For museums and culture institutions, that consumer demand, it provides the devising a healthy strategy to balance the bridge that directly fuses culture institution cultural and the commercial makes the with consumer. difference between a strained marriage Entrepreneurship and cultural creativity of convenience and a mutual love-in with are perfect bedfellows. Customer-focussed remarkable babies. by nature, commercial activity in a museum or culture institution lives to identify and We’re looking forward to seeing systematically understand consumer wants where you take it. and desires, and enhance or add new layers to the quality of the customer experience. All of this whilst bringing in a wad of fresh cash – to ultimately create new and improved cultural content. Yet, as complex and demanding beasts, consumers represent an ongoing challenge for even the savviest of consumer brands. How can over-stretched museums and Simon Cronshaw & Peter Tullin culture institutions recognise consumer Book authors and founders needs, exceed consumer desires, and of leverage a sustainable source of income without wrecking the very special relationship they’ve created with their audiences?
  • 4. CONTENTS 1. INTRO Something from nothing 12 5. RESOURCED Mutuality 46Culture meets consumer culture Consumer culture 13 Core and periphery 47 Mainstreamed culture 14 Deal clinching 48 Dirty, dirty money 15 Joint ventures 49 Shakespeare, wheeler-dealer 16 Owner-worker 50 Totally immersed 17 Brand collusion 51 Seismic Shifts 18 Brand co-creation 52 Made and born 19 Aggregated institutions 53 Network mapping 54 Funding... what funding? 55 2. CONSUMER INSIGHT Owning the bottom line 56 Power source 22 Owning the decision 57 Interference 23 Space and time 58 Closer 24 Investing time 59 We have incoming 25 Under observation 26 Cross-fertilisation 27 6. STAFF In the swim 28 Visionaires 62 Lessons in life 29 Deep dive 63 Internal flows 64 3. CULTURE ASSETS A flat new world 65 Back office 66 Business school 32 Work and/or play 67 Content without walls 33 Trusty steeds 68 Flexi-space 34 Forgiveness beats permission 69 Seesaw structures 35 Just rewards 70 Brand values 36 Trade-offs 71 Ties and bonds 37 I believe 72 4. OPPORTUNITIES KNOCK 7. SUPPLYING CONSUMER DEMAND Trend creators, trend catchers 40 Brand-land 76 Currency of ideas 41 Boutique hotels 77 Back catalogue 42 Niche clusters 78 Generators and doers 43 Consuming producers 79
  • 5. 1. INTRO Start building the ‘new’
  • 6. SOMETHING Consumer 1. INT RO // 13FROM NOTHING cultureStarbucks came from the simple idea of What about the audience that doesn’t wantselling ready-made coffee as well as beans... to be developed? Those blighters that haveSony started by visualising a non-military fixed views about what they want? There’suse for the new transistor invention... Google bound to be a limit to how many people webegan by stringing together a bunch of can get through our doors, so why not looklow-end PC’s... Anyone can spend £50million to the much larger consumer masses; theand create something, but where’s the skill, Mr and Mrs Bloggs busily getting on with theirthe excitement, the endeavour? Creating cheerfully commercial lives, happily window-something from practically nothing; pulling shopping for their next purchase? Take a leaftogether the right ingredients in order to out of the London Transport Museum – profilestart building the ‘new’; the skilful ability to your existence, expertise and collectionnegotiate your way from a low bargaining through chic ‘Ultimate Travel’ suits in Tedposition to a position of strength. Now that’s Baker stores. Understand consumer lifestyleswhere things get interesting. That’s the space as they are, and find convincing, seamlesswhere entrepreneurs are to be found. ways to insert cultural offerings. If the horse won’t go to water, take the water to the horse we say! Brands are even using consumers to help them create their advertising platforms – see This Is Now (, a European collaborative arts project by Ford asking consumers to define ‘now’.
  • 7. 1. INT RO // 15Mainstreamed cultureThe UK ushered in the era of the über had to shut its doors for the first time asmuseum in 2000 when Wolf Ollins bagged over 35,000 tried to cram in for the Chinesethe Tate contract. More people were New Year! The O2, meanwhile, welcomedin Tate Modern for the last day of Olafur more than a million paying visitors toEliasson’s Weather Project than were in Tutankhamen. Culture is infiltrating the highBluewater – Europe’s largest shopping street and beyond: from the Natural Historycentre. SuperBrands 2008 placed the Museum’s T-Rex pyjamas in M&S, via JohnTate brand ahead of Manchester United, Lewis’ V&A secateurs, to the ScienceArsenal and even Vodafone. The British Museum’s educational toys. With well overMuseum has overtaken Blackpool Pleasure 40million visits to museums and galleries inBeach as the UK’s most popular visitor England last year, culture has never beenattraction with 6.04million visitors – it even more in demand.During the economic gloom and doom, free Dirty, dirty admission should money encourage even more A blank canvas providing inspiration for a new imagined reality... A perfect sense of timing, requiring split-second coordination people to turn to culture as the work builds in speed and complexity... A need for outward fluency and grace, underpinned by a ruthlessly-honed technical– whether for a bargain skill... A mastery of leadership, enabling a 10- or 100-strong cast to fly effortlessly together across the stage... day out, or in the search Who says commerce has no common ground with culture? In a world where consumers are too discerning to accept the naff or the for deeper meaning. stereotyped ‘dumbing down’, only the most creative leaders can ever hope to surpass consumer expectations.
  • 8. 1. INT RO // 17Shakespeare, wheeler-dealerWhether courting the Court of Queen Madame Marie Tussaud’s talentElizabeth, or relocating to save the for the newly fashionable art of waxfinances of his co-investors, Shakespeare’sentrepreneurial skill and nose for the modelling dominated the grisly post-market were as good as his writings. Revolution niche of creating wax deathThe roll-call of artists adept at negotiating masks. Spotting their macabre appeal,and managing investment steers from she took the huge risk of going on tourChrétien de Troyes and Michelangelothrough to Ben Jonson and Mozart. with them overseas to England. AfterEvery cultural object of beauty requires an 25 successful years on the road, sheappreciative audience; when there is no established a permanent Baker Streetdealer to stand between the two, the cultural Bazaar, and today eight attractionsinstitution must represent and promote itselfto the market. In this act, we’re standing across the globe bear her name.on the shoulders of some truly giantcultural entrepreneurs. Totally immersed The car maker Toyota implements one million As masters of their own domains, the new creative ideas each year (2,500 per day!), status quo is never good enough. From achieving market leadership and encouraging these many small steps emerges a highly a relentless pursuit of perfection. How? sustainable culture of innovation, meshed They make innovation part of everyone’s job into the entire organisation rather than description. Every staff member continually being reliant on a pigeonhole marked asks themselves the simple question ‘Entrepreneurship Department’. “Is there a better way?”
  • 9. 1. INT RO // 19SEISMIC SHIFTS Made and bornIn the spirit of wild but true generalisations, retirement and suddenly have time to spare? The bad news is that some management guarantee that you’ll have a bunch ofthe people of our nations are getting older, How do we create and position bite-size gurus think all entrepreneurs are simply born Bannatynes on your hands. It takes both:more multicultural and increasingly pressed portions of our content for the time-poor multi- that way. But before you get HR to reach for the right people with the right structures andfor time. This in turn provides a plethora taskers? How can our cultural attitudes and more psychometric tests, the good news is socio-politics behind them. But get theseof challenges for culture institutions, and a outputs keep pace with the global nature of that many more disagree, claiming attempts two elements right, and you’ll be well on yourwealth of opportunities for entrepreneurial our economic and political bonds? A perfect at profiling the ‘perfect’ entrepreneur are way to making many more ‘somethings’ fromtypes... What do we have in the pipeline for time to step forward, ye innovators. inherently futile. But then the right innovative ‘nothings’. This makes entrepreneurship anthe baby boomers, especially when they hit environment, whilst essential, does not option that is available to all.
  • 10. 2. CONSUMER INSIGHT Observe and understand - then respond
  • 11. 2. CON SUM ER INSIGHT // 23 Interference Recruiting staff from unlikely sources... Shaking up team structures... Injecting external opinions on a systematic basis... Creative disruption is often a natural accomplice to innovation. One means to provide alternative perspectives on familiar challenges is to import talent with experience from outside the sector. Employing outsiders equally helps to challenge the status quo when developing new strategies. Moreover, frequent reorganisation of staff structures may seem traumatic, but placing people into a new structure often stimulates them to rethink what they’re doing on a day-to-day basis.Information that better “Get them to focus not on the inconveniences of restructuring but on the satisfaction of setting high goals and then knocking down the barriers to achieving them,” adviseshelps an institution Lieutenant General Ronald T. Kadis of the U.S. Missile Defence understand the James Dyson uses the ‘musical chair’ theory to frequently move staff fromconsumer is invaluable. one team to another: “Somebody can literally slot in and take someone else’s place and often add a new perspective. People aren’t always fond of doing it… but two or three days later they have grins all over their faces and are enjoying the new thing they’re doing.POWER SOURCE It’s not something that comes naturally, but if you do it everybody benefits.”Information is the lifeblood of any The skill is in the handling: how it is acquired,entrepreneurial institution. It is where captured, shared, managed, utilised,incoming data and information meets protected. Information that better helpswith people’s skills, ideas, motivations an institution to understand the consumerand knowledge. It encompasses creative is invaluable. It provides a starting pointthinking and ideas, the analysis of data for identifying new entrepreneurial activities,and competing options, the practical and helps prioritise the co-ordination ofknowledge of getting the job done. scarce resources.
  • 12. 2. CON SUM ER INSIGHT // 25Closer WE HAVE INCOMINGPosition matters when it comes to Consumer data lies at the centre of effective How can you engage the bedroomentrepreneurship. Power is often directly relationship management and scanning for DJs, time-poor dreamers and therelated to your distance from the consumer new opportunities. Yet, with people’s naturalin the supply chain, so culture institutions at reluctance to hand over personal information, urban arts eclectic of the Arts Councilthe interface with consumers instantly have capturing the data in the first place is an art England’s audience segmentation?an advantage: a consumer-facing platform. form in itself. The maxim ‘collect only what Map this against other consumerOther agents in the supply chain, from caterers you need, use all that you collect’ rings segments like ‘progressive middles’to sponsors, probably need to filter themselves true for data capture strategies; a stagedthrough you. Why does this matter? Because, approach to capturing their personal lifestyle for impressive Van de Ven suggests, direct personal details across multiple touchpoints, onlineconfrontations with problem sources creates and off, is the order of the day. As consumerenough concern and appreciation for motivating intelligence escalates in importance for thepeople to act. By being in close proximity to the sector, expect to see a huge growth in theconsumer and listening hard, you’re best placed sophistication of data-driven marketingto build, maintain and protect a consumer offer and demographic profiling.that meets their needs.Some artists are bypassing galleriesand heading straight to consumers.Toy2R offers artists the chance todesign 3D products as well as 2Dprints. Recognisable and emergingartists have sold millions of unitsin both mass and limited editionmarkets. Technology and collapsingcosts of marketing and distributionare enabling the development of awhole new range of platforms.
  • 13. Under 2. CON SUM ER INSIGHT // 27observation Cross-fertilisationAs traditional clipboard market research A near inexhaustible supply of new inspiration between industries, between countries,continues to incite sophisticated avoidance can be harnessed by becoming a ‘connecting between institutions, between sectors...techniques, 24-style observation methods node’. Take the lessons and successes of For culture institutions, with such a widemay provide some of the answers. The goal one group, and apply them to a completely range of interesting contacts and connections,is to inconspicuously monitor and document different context... Encourage and control this should be easy. Put your network to use,consumers in their natural behaviours: what the exchange of concepts and ideas; accumulating power and influence for yourselfthey do, how they interact, what they say... between individuals, between businesses, in the process.It provides an easy insight into what reallymatters to them, how they behave, and how Is the Information Age is giving waythey currently interact with your institution to the Connected Age? Knowledgebehind closed doors. A great start for spottingareas for development, and an open door for workers create and manage information,helping to understand the complexity of your whereas new breeds of workers manageconsumer decision-making processes. relationships across knowledge goods, hardware and people.While so-called ‘lifestyle renegades’consciously reject marketing, the restof us are bombarded daily by between1,000 and 2,000 commercialmessages so have become adeptat avoidance techniques.
  • 14. 2. CON SUM ER INSIGHT // 29In the swim A US survey revealed Trust your instinct. You know what’s creatively strong and ‘cutting edge’ simply from the conversations that successful you immerse yourself in on a daily basis. Every informal conversation, every email, every daily interaction, every magazine, every term Googled... it’s all research. Make a conscious decision entrepreneurs have to be in a heightened state of sensory awareness, a Gladwell‘Maven’, ferociously hoarding an average of 3.5 business failures. interesting snippets from the wider world. If you’re outward-focussed as a leader, like any good hound your institution will begin to resemble its master.The web provides a whole newsource of creative inspiration: for ten newthings you didn’t know last week,or Brian Eno’s Creative Block Lessons in life Our memories as individuals mean that we to process and collectively remember. often avoid repeating the same old mistakes. How can we get a good balance between But as institutions, how can we be sure to this intelligence from experience and the learn the lessons of experience? Previous deliberately naive, wide-eyed sense of experience makes decisions seem less risky; adventure so essential to innovation? success does seemingly breed success. It’s a continuous learning cycle for the Equally, reasons for failure are important institution, and one that requires effective knowledge systems. A US survey revealed that successful entrepreneurs have an average of 3.5 business failures. Many entrepreneurs argue that you cannot succeed until you experience failure.
  • 15. 3. CULTURE ASSETS Awaken the latent potential
  • 16. 3. CULT URE ASSETS // 33Business schoolIt’s not just about culture institutions getting “To understand the process of creativeadvice from businesses anymore. Now it’s genius, it is valid for business peopleall about turning it on its head: great culturalmanagers teaching business leaders just to look at the model of the to cope with constant change, adhoc The business of the artist is to create,and flexible teams, personal expression, navigate opportunity, explorecreative people, emotional intelligence, possibility, and master creativedistributive leadership models... the listgoes on. And long gone are the days of breakthrough. We need to restoresimplistic team-building workshops for art, the creation of opportunity,businesses. Whether it’s Lego collaborating to business.” - Brandweekwith Birmingham’s Thinktank on interactivelearning and ‘serious play’, the rise of savvyfacilitators such as Menagerie and TradeSecrets, or brands taking the ‘theatre ofretail’ concept to its logical conclusion,techniques from the culture sector arerapidly spilling over into the world beyond. Content without walls Galleries, museums, demolish those walls! creator, creating new questions: do we prefer The ever-spiralling ability of technology to mass, selective or exclusive outlets for our transform distribution channels provides assets? Who are the agents, distributors and great opportunities for entrepreneurial uses other intermediaries in the chain to market? of digitised cultural content. Changes in Where is value added (and by whom?) along consumer demand provide new opportunities this chain? Single channel or multi-channel? for hybrid culture spaces both on- and offline. Vertical or Horizontal Marketing Systems The business model for culture institutions is for strategic partners? It’s all about getting evolving to that of distributor as well as content out to where it is demanded. O2 reports that nearly 80% of iPhone users surf the web on their mobile. With the unveiling of a new range of smartphones such as Google’s G1, the age of truly mobile platforms for cultural content may finally be dawning... The world’s knowledge: location-responsive, interconnected and in your hand.
  • 17. 3. CULT URE ASSETS // 35Flexi-spaceAt GSK Contemporary at the Royal Academy The Conran-operated Skylonyou can pop into the pop-up art restaurant restaurant at the newly refurbishedand enjoy lunch at the capital’s most talked-about eatery. Once you’re done, buy your £111million Southbank Centreplate; a Wedgwood collaboration with Will demonstrates how iconic design hasBroome. All of this takes place in a temporary transcended the cultural spaces intoinstallation that somehow feels integral to the rest of the venue.the exhibition, an extension of the experiencerather than an unwelcome incumbent. Theart takes centre stage, but new pieces areadded and arranged to create a perfectjigsaw. Mixing and matching spaces: exhibitswith retail, performances with workspaces,catering with events, pop-up with permanent... Seesaw structures Culture institutions know a thing or two about delivery. The structures that enable this balance. Balancing curation and consumption, delicate balancing act bestow a greater whole intellect and accessibility, heritage and than the sum of individual parts: the holy grail modernity, today’s market and tomorrow’s of many a manager. But do we understand study, preparation and performance, intrinsic exactly how and why this works (or doesn’t) and instrumental, public and private, in our own institution? commercial and creative, perfection and Nearly three-quarters of visitors visit the website before travelling. The award- winning website sets the standard for pre-visits with an awesome 3D fly-through.
  • 18. 3. CULT URE ASSETS // 37Brand valuesArt and culture challenges the status quo,the mundane, the everyday, the ordinary.It elevates people to a higher ideal, acommonality of history or social bonds,or it dares to question the accepted normsof today. It means something just as themainstream is increasingly demandingmore meaning. If handled well, the brandsof culture institutions – the guardians of thisvaluable resource – make powerful antidotesto the often hollow brands of commerce.The difficult management task is to leveragethis value without damaging the very integritythat makes it special.The growth of ‘un-branding’ opensnew possibilities for institutions,as traditional advertising loses itsimpact. Eurostar co-financed theaward winning Shane Meadowsfilm, Somers Town, without any overtbranding. From the same Motherstable came Pot Noodle: The Musical,a critically-acclaimed Hamlet-inspired stageshow, marking atransition for brands to producersof quality content. Ties and bonds Culture institutions are Malcolm Gladwell’s Who else is in such a position of trust to Connectors, positioned at the intersect do this? Through an expanse of associations, where a myriad of visitors, partners, friends, institutions inhabit such a unique blend of staff, suppliers, consumers and supporters worlds, subcultures and niches, the network converge. To put it simply, is there anyone of ‘weak ties’ is immense. And converting better placed to spread info, create a latent network into a profitable exchange interesting introductions, fertilise new hub is but one small step away... thinking, or connect common souls?
  • 19. 4. OPPORTUNITIES KNOCK Spot when the time is right
  • 20. Trend creators, Currency 4.trend catchers of ideas OPPORTUNITIES KNOCK // 41 Matthews and Wacker charted a path from Like the £2 coin in your pocket, ideas‘Fringe’ to ‘Social convention’ via ‘Edge’, represent value that is only realised when you‘Realm of cool’, and ‘Next big thing’. ‘Trend actually spend it. There is not a simple model creators’ are found in the fringe, constantly where ideas are created, considered and then developing new ideas and creating a market either implemented or exterminated. Rather, for them. They may be successful and take lots and lots of ideas swim around, they the innovation to the mainstream themselves; disappear, they resurface. Multiple ideas are or they may find larger firms imitating and formed over time, and each one goes through ultimately overtaking them. ‘Trend catchers’, peaks and troughs in levels of interest or meanwhile, identify and profit from future activity. At any point in time, there are multiple trends they spot and then ride. Preparation ideas on the go. For ideas to be successfully is critical: as Storey says, you not only need implemented, the time needs to be right. Only to locate the boat in the fast flowing rivers when the right factors are lined up can the but must anticipate the next wave of institution ‘spend’ the idea and implement it. opportunity and prepare the crew to take advantage of it as it passes. Trend-scouts are not just the highly paid, cool hunters at the edgy commercial brand. Look closer to home ... the people known as ‘file-givers’ that send you the‘latest’ YouTube clips or MP3. “You cannot make soup without water. But a bowl of water is not a bowl of soup. It is what you add to the water that gives the ‘value’ of soup.” – Edward de Bono
  • 21. Generators 4. and doers OPPORTUNITIES KNOCK // 43 As more and more agencies see the value of combining client account management with creative, we don’t want to retread their mistakes and split the ‘artistic’ from the ‘entrepreneurial’ in culture institutions. However, those that have the ideas may not be best-placed to implement them. It therefore makes sense to have an idea- catching ‘net’ in the institution, whereby anyone can offer ideas without necessarily being expected to implement them. The job of co-ordinating implementation falls upon the appointed ‘ideasHow do we make sure champion’, who has the power to gather together the appropriate people and resources asideas don’t leave the required. Then all that remains is taking both originator and champion out for a well-deservedinstitution as staff thank you drink.come and go...Back catalogue If the time is not right for implementation, Codification converts knowledge into institutions must find ways to store their ideas accessible formats – taking it from the head for possible future use; creating their own to the record. It doesn’t require a multi-‘back catalogue’ of ideas. How do we make million pound database system; it could sure ideas don’t leave the institution as staff be as simple as an ‘ideas book’ or trend come and go, especially if they are transient book for staff, providing a useful catalogue staff in project-focussed teams? of inspiration whilst preserving a collective memory of ideas.
  • 22. 5. RESOURCED Not just for the big guys
  • 23. 5. REMutuality CORE AND PERIPHERY SOURCED // 47 Cultural and creative businesses lead the It is now commonplace to split staff into core “Trust is more easily given to those market on understanding and leveraging and periphery workers – the former are full-time, the value of collaboration with others. whom one knows well over time. the latter are specialists, to whom work is One business or institution alone has a outsourced. We could increasingly see culture It should, therefore, be easier to trust finite supply of resources to allocate to institutions fulfilling the periphery role for other insiders rather than outsiders. Yet, the highest bidder. A poor position to be in, organisations. Smaller institutions, for example, perversely, we give a freer rein to if your pockets aren’t that deep. When you would form symbiotic relationships with larger outside contractors than we do to our collaborate, there is no obvious finite supply institutions as a survival strategy, ensuring a of resources; you enter into a marketplace in continual flow of resources. Institutions of all own workforce.” – Charles Handy which you can buy, sell and share resources sizes, meanwhile, could perform specialist without limits – there is always another services for other sectors. Back in the workplace,‘stallholder’ available around the corner. meanwhile, and Charles Handy’s doughnut Your success depends on your ability principle challenges organisations to better to continually identify and negotiate with unlock the latent creativity under our noses. collaborators, and then relentlessly leverage The secret is simple: treat ‘insiders’ like ‘outsiders’. the assets you collectively bring to the table. Deal with employees as if they are external suppliers, negotiating payments to teams rather than individuals, giving more freedom for different work styles and providing incentives to be creative and improve productivity.
  • 24. 5. REDeal clinching Joint ventures SOURCED // 49Getting through the door equals the hard Charles Saatchi memorably hired a The Royal Institute of Great Britain Rather than going it alone, or shoulderingpart? Perhaps, but making a marriage out the risk of hiring suppliers, joint venturesof a loose conversation requires some finely cast of actors to create a sense of scale has recently opened its Time & Space can provide a rapid injection of specialisthoned social skills. According to Baron at his fledgling ad agency in order bar and restaurant as part of its skills and resources, and can incentiviseand Markman, perception, impression to clinch the British Airways account. £22million redevelopment. This will success for both partners. In food, culturalmanagement, persuasiveness, social The rest is history… act as the front door to the Mayfair institutions are also not immune from theinfluence and adaptability are critical to cult of the branded restaurant and celebritythe making of entrepreneurs. Sensing the venue drawing visitors to the new chef, whether in the form of Thierry Costes atmoment to close the deal, ask for the money galleries beyond. Centre Pompidou in Paris or Gabriel Kreutheror form an alliance is both instinctive and at MoMA in New York. The Jackfield Tileoften something we need to force ourselves Museum in the UNESCO World Heritage Siteto do. Equally, don’t be scared to accept of Ironbridge Gorge hosts a Craven Dunnillyour own limitations. Smart people hire factory to bring tile production and retailingsmarter people. Where does this skill-set sit? to life. Over at the Royal Academy, Flash (aWho are your most effective salespeople combination of art and food) is created byand negotiators? London restaurateurs’, Bistrotheque. Food, retail, customer experience... where next will our ventures take us?
  • 25. 5. REOwner-worker BRAND COLLUSION SOURCED // 51Who owns my great idea? The answer is not phenomenon creating the Silicon Fens, Cultural branding has gone global Sponsorship is dead. The days of lolly fornormally the employee in the public sector, could be one model to import into the culture with the deal between Abu Dhabi and logos are nearing an end as corporate brandsbut this is starting to change as commercial sector. The investment of the culture institution recognise the commercial value of culture.spin-outs and joint-venture models become (be it monetary or conceptual) needs to be France for a new branch of the Louvre The next new gallery is now as likely to bemore commonplace. The UK private equity recognised both in retained value and for in the cultural district on Saadiyat opened by a brand such as Prada, a propertyand venture capital industry is by far the identifying the transfer of the opportunity Island worth nearly $1.3billion USD. developer like St James Homes, or collectorslargest in Europe, accounting for some 52% beyond its walls. The Guggenheim is almost inevitably like Charles Saatchi. Temporary galleries likeof the whole market (Library House). Many Kinetica, a museum of moving art (financedfail of course, so choosing how and when to Commercial success can be imported as an obligatory presence also. by Ballymore Properties) spring up and well as released. Take the purchase of Opustake this option is essential. The success of disappear at a moment’s notice in mixed-use Arte by the Royal Opera House – bringing itsUniversity technology spin-outs, for example commercial and leisure developments such means of distribution in-house.those that have helped power the Cambridge as Spitalfields Market... In Beijing, Nike 100 is a new art/product gallery space, increasingly seen as a way of extending shelf life for their remixed trainers... LVMH’s pop-up store in MOCA sells handbags designed by the artist Takashi Murakami, sitting in a retrospective of an artist that fuses art, retail and product: a valid extension of the exhibition... Culture is now starting to be regarded as core to business differentiation – not a folly on the margins.The UK private equityand venture capitalindustry is by far thelargest in Europe,accounting for some52% of the whole market.
  • 26. Brand 5. REco-creation SOURCED // 53 Savvy cultureSony is one brand to go as far as creatingits own culture content through a processof co-creation. The PlayStation Series institutions are(facilitated by Shine Communications) brokenew ground by developing the content ina collaboration between Sony and partnersthat included the V&A, ENO, bfi, Baltic andManchester International Festival. Meanwhile,the Serpentine and Puma recent collaboratedon the creation of the Reality Bag, sold repackaging brandsin selected Puma outlets and stockistsworldwide - blurring the lines betweensponsorship, R&D and retail. for clearly targeted demographics. Aggregated institutions Savvy culture institutions are working together dawn (or moon-lit carnival?) of a burgeoning to repackage their brands for clearly targeted new cultural scene. This in turn has attracted demographics. First, the success of Friday specific demographics of interest to brands Night Lates at the V&A and other out-of-hours such as Pimms, Apple and Sony (not your cultural experiences caught the imagination classic art sponsors). Similarly, our own of time poor consumers. So, spotting this is aggregating the retail trend, the platform aggregated the offer of culture partners worldwide to target programmes of all of the galleries offering unique gift hunters. Where next for the power something for the night owl, creating the of targeted, aggregated platforms? Christmas in Birmingham, and the Ikon Gallery, the Barber Institute of Fine Art and the RBSA keep their doors open late – with an ArtBus shuttling happy shoppers between them.
  • 27. Funding... 5. RE what funding? SOURCED // 55 Is money really the primary source of power over whether or not your idea gets realised? Not if you place a premium on the creative over the expensive. Remember ‘makingNetwork mapping something out of practically nothing’ (see the intro)? Remove cash from the equation: scale your implementation (one £2k website will tell you whether the £20k one would be worth it); skilfully utilise the resources of collaborators; Emotional mapping is a consumer research Why? To better understand the emotional go slow (build it one step at a time, and tool just as important as the physical mapping influences upon users, to meet their needs. make this part of your public narrative); of potential collaborative partners. New York Second, to place the institution as one and leverage all public funding (every public may perhaps lend itself more naturally to component in a complex web of overlapping pound should be converted into multiple emotional bonds than some other cities, but emotional connections, thereby providing private or commercial pounds). Lesson‘Get Lost’ by New Museum invited 21 artists more chances to identify entrepreneurial the power of money, leaving more time to to create a personal view of the city and opportunities, and the right connecting concentrate on the things that matter most. draw it as a map, “bringing together fictional spaces for these. landscapes, utopian visions, private memories, and obsessive instructions to explore Manhattan, its past, present and future”.
  • 28. Owning the 5. REbottom line SOURCED // 57 Injecting thisIf entrepreneurship is about buildingsomething from practically nothing, it’simportant to be able to measure and ownthat ‘nothing’ and ‘something’. The skill ofan entrepreneurial institution lies in leveragingavailable resources. Think of it as a virtuouscircle: scarce resources are capitalised level of autonomyeffectively, creating more resources toleverage and in turn create more resources.But, if those resources are disappearing into directly createsa black hole marked ‘central pot’, or if theadditional resources cannot be reinvestedto build even more, the whole system falls ownership – an essential ingredientshort. Entrepreneurship gets quashed. for entrepreneurial behaviour... Owning the decision As well as owning the bottom line, of the decision and outcomes. Cascading accountability requires a clear ownership this further, teams within the institution can of decisions. At management level for most each be responsible for budget allocation culture institutions, this means the CEO being and decision-making – accountable but not accountable to an independent and active micro-managed by the CEO. Injecting this Board, who are in turn accountable to any level of autonomy directly creates ownership funding agencies. Decisions that directly – an essential ingredient for entrepreneurial affect the customer offer should be taken by behaviour, and a yardstick for managing the CEO and Board, providing an ownership and improving performance.
  • 29. 5. RESpace and time Investing time SOURCED // 59 Very rarely do we jump straight into ideas. Time is arguably more important than The best ones seem to simmer for a while, money, yet where are all of our time-budget as you look into it, research it, see if it’s documents? Why do we not even blink when viable. This could take three weeks, it could we invest too much of this scarce resource take ten years. Space and time provides in Twitter excursions? Balancing a portfolio the opportunity to inwardly mature the idea, of demanding roles, and balancing short and whilst simultaneously lining up the resources long term needs, can prove difficult. It’s high necessary for successful implementation. risk choosing how time is spent, especially‘Slow development’, coined by George when you’re drawing attention away from the Fergusson, removes the need to spend large core business to play around with something. amounts upfront and get it correct the first Budgeting time doesn’t seem natural, but it’s time. It advocates ongoing learning and much essential. At Historic Royal Palaces, 10% of smaller investments: “You might take a few staff time must be spent on training other staff, steps forward and one step back. But I think and a further 10% on developing new external you get a much healthier result than you do relationships... again building innovation into by doing the one ‘big bang’ solution.” Get everyone’s job description. something into the market, sooner rather than later, and then refine and build from there. The BETA stage isn’t just for webmasters.
  • 30. 6. STAFF Fail often to succeed sooner
  • 31. 6. ST AFF // 63Visionaires Without wanting to wander into the David Brent school of management (a wonderland of ‘Teamwork’ posters featuring happy dolphins), ‘deep dive’ encourages a mass brainstorm a common vision is the sign of good leadership. We’re not talking generalised buzzwords revolving around ‘community’ and ‘world- session – no judging class’: who on earth would get out of bed for“To satisfy our customers’ desires for personal entertainment and information through total customer satisfaction”? Rather, we’re talking about uniting people at an emotional level – belonging to a team that together is working to create... whatever. Here, general rules must other people’s ideas stop, and a clear understanding of your own purpose must take over, mixed with visionary images of the future. It requires tough decisions at this point, about what you stand for. Think Google’s‘Organise the world’s knowledge’ – stunningly simple, sets the boundaries, deeply motivating. no objections... Deep dive Ten creative and divergent minds coming judging other people’s ideas at this point, together, unlimited capacity for great new no objections allowed, everyone equal. ideas... how do we manage the process Participants are invited to judge from these and the fallout? As one the world’s most hundreds of ideas, allowing the ‘wisdom of innovative product design companies, IDEO the crowd’ to identify areas worth investigating. have perfected the process as much as the Then, it’s down to rapid prototyping – quickly product. Their ‘deep dive’ encourages a mass developing basic versions of the product brainstorm session around the problem – no to test in situ. In their words, fail often to succeed sooner.
  • 32. A flat 6. ST AFF // 65Internal flows new worldGone are the days where chatting equals For every 2.4 laptop family, there are “ Your time is limited, so don’t waste ‘Here comes everybody’ by Clay Shirky iswasted time. Performance requires exceptional a commentary on the power of organisinginternal communications between individuals others already suffering from social it living someone else’s life. Don’t be without organisations. This phenomenon isand departments, especially when team network fatigue. This ‘de-connecting’ trapped by dogma - which is living driven by emerging communications andmembers are dispersed across multiple sites leads them to search for ‘real’ connections. with the results of other people’s collaborative tools such as social networks.and networks. From creating, sharing and Can institutions tap into this desire? thinking. Don’t let the noise of others’ Our social and technological networks areunderstanding a common vision, through overlapping – creating entirely new behaviourscross-fertilising new ideas, through to sharing opinions drown out your own inner in certain groupings and adaptations in othersrelevant information with the right people... voice. And most important, have – as our evolving use of technology is removingsetting resource aside for internal comms up, the courage to follow your heart and barriers to sharing information and cross-down and across structures is a must. A Work intuition. They somehow already departmental working. Shirky suggests thatFoundation survey found low-tech trumps high- the collapsing cost of technology will defeat know what you truly want to 91% of managers view email as the least the hierarchy, and subsequent bureaucracyeffective means of communication, despite its Everything else is secondary.” and inefficiencies, as these structures becomeprevalence. The age-old simplicity of getting - Steve Jobs, Apple irrelevant. No longer will we need layers ofpeople together has much more impact. management to organise labour and facilitate communication as trends and opinions are formed in radically different ways.
  • 33. 6. ST AFF // 67Back officePixar’s animators live in sheds… Google style HQ in California that helps preventemployees in Zurich move around by sliding Google ever becoming a grown-up corporatedown a pole and meet in cable cars… behemoth) or jump on a slide like Redbull,A bell sounds at Mother to signal it’s time for you might want to remember: it is healthycommunal lunch and even the CEO has to to force change and re-creation in ordercome. These are just some of the techniques to learn, adapt and remain flexible, openemployed by companies famed for innovation. and responsive to a constantly changingWhilst we are not suggesting you go out operating environment.and build a Googleplex (a sort of campus “Every act of creation is first of all an act of destruction.” - Pablo Picasso Work and/ or play Stay in the swim – blur where work ends and leisure starts! It’s easier for individual entrepreneurs, used to understanding the market and picking up new opportunities for work over evening drinks. But staff in culture institutions could also benefit from the abolition of the 9-5 dogma. Whether it’s the camaraderie of sharing risk, that extra head or two to help make a difficult decision, the back-and-forth volley of ideas generation, the mutual interest leading to a new collaboration, or the good-cop-bad-cop sales pitch – the better bonded the team is, the easier it is to implement new ideas.
  • 34. Forgiveness 6. ST AFF // 69 beats permission Continuous learning means experiencing continuous failures as well as successes. Unfortunately, fear of failure is a particularly unhelpful British entrepreneurial trait. How many of us feel mortified and even ashamed if our big idea doesn’t work? Yet, as mother always says, it’s better to love and lose than never to love at all. Thinking of tombstones helps... ‘he had a go’ easily beats ‘he thought about having a go’. A staff culture that encourages people to ‘have a go’ and creates space for failure breeds innovation. After all, an entrepreneur with a failed project is often the one to watch going forward. “I have not failed. I’ve just found 10,000 ways that won’t work.” – Thomas Edison, inventor and scientistTrusty steeds In cultural and creative business, trust is your protection against risk and is a vital ‘lubricant’ for knowledge creation. But, according to Leadbeater, it is in short supply as traditional sources contract. Therefore, developing genuine personal relationships are critical to the success of innovations – treating people‘as humans’, in the office as well as the bar. Which basically means that informal, social networking should be as rated as highly as formal, professional opportunities. Bring on the 5-a-side, the alcohol, the trips to gallery openings...
  • 35. 6. ST AFF // 71 Trade-offs As an innovator inside a culture institution there are some advantages over your entrepreneur cousins; a desk, heating and monthly pay slip are three that spring to mind. But it’s not all umbrella brands and secretarial support: intrapreneurship requires giving up some entrepreneurial givens. For one, intrapreneurs must put the institution’s needs ahead of their own. You can’t have the security of employment without accepting that the bozo that stood in your way may get some of the credit when your idea is vindicated. Second, if you’re successful, your idea will be mainstreamed and you have to hand it over. You won’t be the free-wheeling skunk works forever. You must integrate into the system.Google allows engineers to spend up to20% of their time on their own projects.Essential for a company that spread-bets on innovation, openly acceptingthat many inventions will not succeed.Just rewardsIt’s not always about the money. You do a market transaction, whereas gifts and otherhave to make the reward worth the risk if forms of recognition keep people within ayou want to nurture entrepreneurship and social exchange. It therefore follows that ifdevelop a culture that accepts failure as we can frame business interactions as awell as success. Entrepreneurs are rarely real social exchange, complete with all theirjust in it for the dough; even when they complex emotions and connections, we canare, this is often a route to autonomy and incentivise and reward innovation withoutempowerment. Understanding their real always resorting to cash. Social contracts inmotivations is therefore essential to creating the workplace offer an intriguing way forward:appropriate rewards that don’t necessarily a two-way agreement around a sense ofinvolve money. According to Dan Ariely, purpose, mission and pride, drawing onmention of payment turns a relationship into instinctive motivations.
  • 36. 6. ST AFF // 73 ...every business is about selling something, and people have to believe in you, and you have to believe in yourself beforeI believe others can believe in you.Research among target audiences may some decisions at the end of the day, andprovide some forms of approval for your new have the guts to do it. Encouraging self-belief,idea. Inevitably, however, every business is nurturing it through both feast and famineabout selling something, and people have periods, is deeply motivating. It also createsto believe in you, and you have to believe a challenging tide of expectation for anyin yourself before others can believe in you. manager to handle.Ultimately, confidence is a major ingredientof decision-making. Market research as “Innovation distinguishes between amuch as you like, but you’ve got to make leader and a follower.” – Steve Jobs
  • 37. 7. SUPPLYING CONSUMER DEMAND Got it? Good. So shout about it.
  • 38. Boutique 7.Brand-land hotels SUPPLYING CON SUM ER DE MAND // 77We’re surrounded by brands, but are they Do you want a straightforward business stay,any more than just pretty (or not so pretty) a weekend of indulgence for the newlyweds,decor? Well, according to blind taste tests, or a week of white knuckle excursions formost people prefer the taste of Pepsi, and the thrill-seeker? The boutique hotel industryyet the majority still buy Coke. Experiments has got it all covered: thousands of enticingat the Baylor College of Medicine prove that options guaranteed for their quality… allexperiences of the Coke brand influence their deeply authentic, local and independent, yetpreferences. Who, after all, can resist a brand bound together and offered to the customerthat our lovable, rosy-cheeked Santa drinks! en mass in order to match to their exact needsWith this power, developments in applying (see for example Enter onefMRI, and consumers becoming as integral to of the hotel websites, and enter into a nichecreating the brand as the marketing manager, paradise. Enter another, and a whole differentexpect to see the culture sector import many version of paradise unfolds. What if museumsmore specialised brand strategies. or small theatres were like boutique hotels? A niche of rich, authentic experience and information, bound together with other niche providers to create a vivid smorgasbord for matching up to any requirement. What if…? Don’t think small when you think niche: The Cool Hunter blog has 600,000 visitors a month, whilst DeZeen, an online architecture magazine has 650,000. The demise of traditional media channels means the ‘next big thing’ could soon give way to the ‘next little thing’
  • 39. Consuming 7. producers SUPPLYING CON SUM ER DE MAND // 79 Institutional members of niche communities are best placed to create an offer that truly ‘gets’ their target market. If, as an institution, it makes your figurative hair stand on end, it’s bound to do the same to your target market. Such is the beauty of chasing consumers in the Long Tail age: out there, somewhere, are consumers just like us. The mass market is now becoming a million mini-markets (see the way micro networks are emerging from the social networking phenomenon). The secret is in knowing which niche(s) we’re an authoritative institutional member of, and finding the space where that community resides.Niche clustersAs the wonder of digital makes distance no Derive clear differentiation either through theobject, every niche is now finding its devoted product (think Transport Museum), or throughaudience from the global melting pot. Smaller the consumer segment you’re targeting (thinkculture institutions in particular can thrive families at Bestival or local residents at aalongside their bigger cousins by adopting village museum). Better still, as Chris Biltona specialised niche strategy. Before the 90’s, suggests, institutions aren’t limited to theif consumers didn’t come within a certain one niche – fill several niches at once, andradius of the culture institution, chances are project yourself as clusters of interconnectingthey’d not be worth the marketing pounds. brands appealing to different niche markets.Now they’re part of a niche – a potential This, in turn, makes light work of being highlynew friend and customer, wherever they are. adaptive to consumer needs.
  • 40. THE �TO DO� LIST CONSUMER INSIGHT  RESOURCED CONT...  contacts to create a personalStraight to the point. What now? Develop knowledge management systems  external opinions on a systematic basis Inject Invite map of your area  observational research Use  Develop strategies to remove cash  Develop a staged approach to gathering from the equation consumer data  Negotiate ownership of your bottom line  Become an exchange hub for concepts  Negotiate ownership of key decisions and ideas  Embrace BETA launches  snippets from the outside world Hoard  time budgets Trial CULTURE ASSETS STAFF  and match spaces Mix  your strategy as a content distributor Define  Formulate a clear vision  opportunities to swap notes with Create  Incorporate ‘deep dives’ into your processes business leaders  time to get people together regularly Make  Explore why your structures enable balance  your organisational structure Revisit  Develop a strategy to leverage  your office layout and environment Revisit your brand value  team bonding into the schedule Build  Convert your latent network into an active  Promote social, informal networking exchange hub  space for failure Create OPPORTUNITIES KNOCK  Research motivations and develop corresponding rewards  Prepare for catching trends  staff of the pros and cons Inform of intrapreneurship  a catalogue of inspiration Create  Encourage self-belief  a process for catching ideas Create SUPPLYING CONSUMER DEMAND RESOURCED  Research specialised consumer  Continually identify and negotiate brand strategies with collaborators  Develop your niche positioning  treating employees as contractors Try and marketing strategy  Develop a strategy for joint ventures  the key territories for your Identify  your policy on ownership Define niche community of new ventures  marketing collateral, and Revisit  Explore opportunities for incorporate your niche positioning aggregated working
  • 41. We would Trend researchlike to offer Florian Wupperfeld, CultureLabel.comour sincere The Entrepreneurial Museum’ Steering Groupthanks to the Carl Franklin, MLA Council Jon Finch, MLA Councilfollowing Rita McLean, Renaissance West Midlands Nigel Singh, Audiences Central Steve Miller, Ironbridge Gorge Museums Trustpeople Jo Smith, Birmingham City Council Gavin Buckley, Arts & Business Midlandsfor their Midlands Panelinspiration, Katie Dawson, Pinsent Masons LLP Phil Hacket, Shakespeare Country Gary Hall, Coventry Transport Museumsupport and Sharon Lea, Birmingham City Council Corinne Miller, Wolverhampton Arts & Museumsdedication Andrea Whitworth, GOWM Nick Winterbotham, Thinktankin creating Expert Witnessesthis book: Adam Clyne, Kindred Richard Evans & Tony Harmer, The Works Matt Fagg, George Fergusson, Tobacco Factory Jem Noble, Blackout Arts Dick Penny, Watershed Alan Shooter & Matt Bagnall, The District Academic Chris Bilton, University of Warwick Gareth Roberts, Regather Design & Illustration Ben Allder & Nichole Hourigan