When you come into a creativity-driven environment, things are very different and there is the danger that a traditional managerial mind-set could even do damage. That is because managing creative teams and people is very different from managing the factory worker/foreman relationship.

The impresario function is about intervening with the company's more administrative management structure. It is about trying to establish a sense of boundaries and budgets and milestones and so forth on a project that does not necessarily lend itself to milestones. It is about translating between the intimate interior environment of the creative work team and the company's need to make money. And finally, it is about positioning the fruits of the creative process in the marketplace and selling them.

People must get respect for their new ideas.

An organization is really a factory for producing new ideas and for linking those ideas with resources - human resources, financial resources, knowledge resources, infrastructure resources - in an effort to create value. These are processes that you can map, with results that you can measure.

The imagination is like a muscle: it strengthens through use.

There 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.

The head of a record label sets up structures, but he also defines the sound of the label, which is to describe what is desirable, what fits and what is quality for that label and then to create an environment where that sound can thrive.