Creativity is the crucial variable in the process of turning knowledge into value

The traditional model for a company like Coca-Cola is to hire one big advertising agency and essentially outsource all of its creativity in that area. But Coca-Cola does not do it that way. It knows how to manage creative people and creative teams and it has been quite adept at building a network that includes the Creative Artists Agency in Hollywood, which is a talent agency.

Creativity is the crucial variable in the process of turning knowledge into value

Ultimately, the impresario must know when to simply get out of the way.

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.

Organizations are about putting ideas through one or more types of gating procedures. In this way, ideas go from being a whim to becoming a project, from being a "skunk works" effort to becoming an official, mainstream effort, from being an unfounded program to a funded process, and so on.

You need judgment, you need to utilize conventional resource-allocation analysis, you have to work backward from estimations of the market to the current investments and you have to do some benchmarking of your product and its potential against your competition.