Improvisation in the jazz sense - like the business sense - is not formless. It is built on a skill set. Jazz, for example, involves selecting a tune.
John KaoYou are able to create an environment so that the creative process can take place and that you can get people to perform at their highest levels.
John KaoCommunication is the essential medium of a creative culture: the communal sea in which we all swim. A company that can't communicate is like a jazz band without instruments: Music just isn't going to happen.
John KaoTunes have notes and tempos and rules. If the tune is "All the Things You Are," you have to adhere to its structure and to the tradition behind that structure.
John KaoIn a large pharmaceutical company, where it's a big bet, you're going to need finance people to be involved in the decision-making because the investment can run into the hundreds of millions of dollars. You're going to have to run scenarios. You might even need agreement from the C.E.O. to make that type of decision. If it's an incremental, low-cost decision in a marketing-oriented company, it may be a very different set of stakeholders a lot further down in the organization.
John KaoThere 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.
John Kao