Lecture 2. Lecture 2. Project Management Project Management

in Creative Industriesin Creative Industries

Olga A. BurukinaOlga A. Burukina, , PhDPhD

Associate ProfessorAssociate Professor

National Research University – National Research University – Higher School of EconomicsHigher School of Economics

MoscowMoscow, 2014, 2014

ContentsContents

1. Creative Industries1. Creative Industries 2. Creative Economy 2. Creative Economy 3. Application of project management 3. Application of project management

in creative industries – in creative industries – why? and why? and what for?what for?

The objective is threefold:The objective is threefold:

Strengthening knowledge, skills and theoretical Strengthening knowledge, skills and theoretical references in the field of cultural policies and creative references in the field of cultural policies and creative project management;project management;

Forging a framework open to cultural concerns, ways Forging a framework open to cultural concerns, ways of thinking/doing and sensitivities which constitute a of thinking/doing and sensitivities which constitute a source of personal enrichment;source of personal enrichment;

Developing an integral personality of cultural project Developing an integral personality of cultural project managers, as well as attitudes and skills related to the managers, as well as attitudes and skills related to the cultural project manager’s professional engagements cultural project manager’s professional engagements and opportunities.and opportunities.

““Look in the toolbox – creativity is the only Look in the toolbox – creativity is the only tool we have left … and it’s important to see it tool we have left … and it’s important to see it in the round: creativity is a new drug, or a in the round: creativity is a new drug, or a better engine for cars – we shouldn’t get better engine for cars – we shouldn’t get trapped in a narrow definition.” trapped in a narrow definition.”

(Lord (Lord Puttnam)Puttnam)

CreativityCreativity

is generation of new ideas –is generation of new ideas – either new ways of either new ways of

looking at existing problems, or looking at existing problems, or seeing new opportunities (e.g. seeing new opportunities (e.g.

by exploiting emerging technologies or by exploiting emerging technologies or changes in markets).changes in markets).

InnovationInnovation

successful exploitation of new ideas;successful exploitation of new ideas; process carrying them through to new process carrying them through to new

products, new services, new ways products, new services, new ways of running the business or even of running the business or even new ways of doing business.new ways of doing business.

Creative IndustriesCreative Industries

Creative industries are those industries, Creative industries are those industries, which have their origin in individual which have their origin in individual

and collective creativity, skill and talent, and collective creativity, skill and talent, and and

which have the potential for wealth and job which have the potential for wealth and job creation through the generation and creation through the generation and exploitation of intellectual property (DCMS, exploitation of intellectual property (DCMS,

1998).1998).

Creative IndustriesCreative Industries

Artists or businesses that generate their primary Artists or businesses that generate their primary source of income and or economic value from source of income and or economic value from their cultural and/or creative knowledge.their cultural and/or creative knowledge.

Creative industries generate, develop, produce, Creative industries generate, develop, produce, utilize, display, disseminate and preserve utilize, display, disseminate and preserve products of economic, cultural and/or products of economic, cultural and/or recreational value.recreational value.

Creative industries have been widely discussed Creative industries have been widely discussed all over the world in the last decade.all over the world in the last decade.

Cultural & Creative IndustriesCultural & Creative Industries

Who are they really?Who are they really? TV & MediaTV & Media Fine ArtsFine Arts Visual ArtsVisual Arts Performing ArtsPerforming Arts Film-makingFilm-making Music PerformanceMusic Performance Festival IndustryFestival Industry Fashion & Design IndustryFashion & Design Industry

Howkins’ creative economyHowkins’ creative economy

advertising, advertising, architecture, architecture, arts, arts, crafts, crafts, design,design, fashion, fashion, film, film, music, music,

performing arts, performing arts, publishing, publishing, R&D, R&D, software, software, toys and games, toys and games, TV and radio, TV and radio, and video games and video games

(Howkins 2001).(Howkins 2001).

Concept of Creative IndustriesConcept of Creative Industries

Creative industries – a concept strongly Creative industries – a concept strongly developing across the world, developing across the world,

create create employment in businesses,employment in businesses, a general sense of well-being in societya general sense of well-being in society

through intellectual property.through intellectual property.

80/20 Rule80/20 Rule

Broadly, and very roughly, creative Broadly, and very roughly, creative businesses play by 80/20 rule –businesses play by 80/20 rule – for 80% of the time, they operate just as any for 80% of the time, they operate just as any

other business: they have products and other business: they have products and services to sell, profits to make, margins to services to sell, profits to make, margins to consider;consider;

for 20% of the time, they operate in ways for 20% of the time, they operate in ways that render them different, or in some cases that render them different, or in some cases ‘exceptional’ (NESTA 2009).‘exceptional’ (NESTA 2009).

Creative Businesses’ ExceptionalismCreative Businesses’ Exceptionalism

Creativity vs. BusinessCreativity vs. Business Portfolio & Project FocusedPortfolio & Project Focused

Creativity vs. BusinessCreativity vs. Business

creative first and business second – motivated creative first and business second – motivated as much by the creative act as its commercial as much by the creative act as its commercial application;application;

implications for the types of skills needed to implications for the types of skills needed to develop businesses while retaining creative develop businesses while retaining creative integrity;integrity;

affects the style and culture of support offer affects the style and culture of support offer needed for many creative businesses – the needed for many creative businesses – the standard ‘one-size-fits-all approach’ has too standard ‘one-size-fits-all approach’ has too many assumptionsmany assumptions

Portfolio & Project FocusedPortfolio & Project Focused

creative businesses and practitioners are creative businesses and practitioners are dependent on high levels of flexibility and dependent on high levels of flexibility and mobility;mobility;

careers are run on a project by project basis;careers are run on a project by project basis; core markets may shift regularly over time.core markets may shift regularly over time.

Prospering as a Creative BusinessProspering as a Creative Business

requires access to rich networks of complementary requires access to rich networks of complementary activities;activities;

the asset base is relatively intangible (tied up in the the asset base is relatively intangible (tied up in the skills base and creative production potential of the skills base and creative production potential of the workforce);workforce);

access to appropriate financing more difficult;access to appropriate financing more difficult; dependency on trust (and risk) to develop deals and dependency on trust (and risk) to develop deals and

mobilize investment;mobilize investment; place-embedded industries (location determines place-embedded industries (location determines

decision-making). decision-making).

Management Challenges of the Management Challenges of the Cultural and Creative IndustriesCultural and Creative Industries

Developmental thrust: Building infrastructureDevelopmental thrust: Building infrastructure Industry segmentation & issues of Industry segmentation & issues of

centralization vs. decentralizationcentralization vs. decentralization Private & public sector coordinationPrivate & public sector coordination Artist as a managerArtist as a manager Policy developmentPolicy development Managing projectsManaging projects

Government Leadership RoleGovernment Leadership Role

Tax write-offsTax write-offs Duty free imports for inputsDuty free imports for inputs VAT exemption for all cultural eventsVAT exemption for all cultural events Special bond issues to support the industriesSpecial bond issues to support the industries Invite international creative enterprises studios to Invite international creative enterprises studios to

set up with added incentivesset up with added incentives Incentives for MNCs who provide scholarship fundsIncentives for MNCs who provide scholarship funds Goal-oriented programmes with five year targetsGoal-oriented programmes with five year targets

Government Leadership Role Government Leadership Role (Estonia)(Estonia)

Supporting creative industries is Supporting creative industries is one of seven national priority areasone of seven national priority areas within within

the strategic goal alongside supportingthe strategic goal alongside supporting internationalization, internationalization, innovation, innovation, access to capital, access to capital, the creation of new businesses, the creation of new businesses, knowledge and technology transfer andknowledge and technology transfer and the development of tourism.the development of tourism.

Government Leadership Role Government Leadership Role (Estonia) – 2(Estonia) – 2

Creative industries measures and policies are Creative industries measures and policies are coordinated in close cooperation between coordinated in close cooperation between the Ministry of Culture and the Ministry of Culture and the Ministry of Economic Affairs and Communications. the Ministry of Economic Affairs and Communications.

Programmes are implemented by Programmes are implemented by Enterprise Estonia, one of the largest institutions within Enterprise Estonia, one of the largest institutions within the national system for entrepreneurship support, the national system for entrepreneurship support,

providing financial assistance, providing financial assistance, advice, advice, cooperation opportunities and cooperation opportunities and training for entrepreneurs, research establishments, and training for entrepreneurs, research establishments, and

the public and third sector.the public and third sector.

Government Leadership Role (Latvia)Government Leadership Role (Latvia)

The long-term strategy Latvia 2030 recognizes culture The long-term strategy Latvia 2030 recognizes culture and creativity as important assets for the future and creativity as important assets for the future development of the country; development of the country;

creative industries development is linked to issues of creative industries development is linked to issues of national identity, language, unique export offerings and national identity, language, unique export offerings and the potential for marketing Latvia abroad;the potential for marketing Latvia abroad;

creative industries are linked to the issue of conditions creative industries are linked to the issue of conditions for creative people:for creative people: artists’ social security;artists’ social security; mobility of cultural professionals;mobility of cultural professionals; strengthening the strategic connection between cultural strengthening the strategic connection between cultural

and education sectors, etc.and education sectors, etc.

Government Leadership Role (Latvia) Government Leadership Role (Latvia) – 2– 2

considering creative industries in close relation to considering creative industries in close relation to establishing markets and the consumption of cultural establishing markets and the consumption of cultural goods and services;goods and services;

understanding the interdependence of creative understanding the interdependence of creative industries development and further improvements industries development and further improvements to cultural administration: to cultural administration: performance-based strategic management,performance-based strategic management, training of administrators; training of administrators; establishing sound and sustainable research systems, etc.establishing sound and sustainable research systems, etc.

Government support measures Government support measures (Lithuania)(Lithuania)

including the concept of creative industries in the including the concept of creative industries in the Lithuanian Strategy for the Use of EU Structural Funds Lithuanian Strategy for the Use of EU Structural Funds for 2007-2013; for 2007-2013;

including the concept of creative industries in the including the concept of creative industries in the Operational Programme for Economic Growth;Operational Programme for Economic Growth;

introducing creative industries into the national introducing creative industries into the national innovation policy;innovation policy;

introducing creative industries into clustering introducing creative industries into clustering programmes;programmes;

introducing creative industries into export measures;introducing creative industries into export measures; establishing an arts incubator network;establishing an arts incubator network; establishing the National Association of Cultural and establishing the National Association of Cultural and

Creative Industries;Creative Industries;

Support measures for creative Support measures for creative industries’ development (Latvia)industries’ development (Latvia)

raising the quality of and access to creative raising the quality of and access to creative industries education and information, raising industries education and information, raising awareness of creative industries;awareness of creative industries;

business-related development (especially within business-related development (especially within the two priority sectors – design and audiovisual the two priority sectors – design and audiovisual media and multimedia, which have the largest media and multimedia, which have the largest export potential);export potential);

exploitation of new technologies;exploitation of new technologies; strengthening the research and development strengthening the research and development

of the regulatory framework. of the regulatory framework.

Cultural Management SynergyCultural Management Synergy

a system of a system of ((artsarts)) education education

cultural infrastructure cultural infrastructure

creative businesses creative businesses

How will the model work?How will the model work?

Project management is the answerProject management is the answer

Suggested Project Approaches:Suggested Project Approaches: Logical Framework Approach for Programme Logical Framework Approach for Programme

PlanningPlanning Project Approach and Standardized Methods for Project Approach and Standardized Methods for

Project financing and GrantsProject financing and Grants Application of Project Management to all sectors Application of Project Management to all sectors

of the cultural industries (National Events)of the cultural industries (National Events) A Centralized Cultural Project Management Office A Centralized Cultural Project Management Office

(CPMO)(CPMO)

Creative economyCreative economy

a new economy, based on creative people, a new economy, based on creative people, creative industries and creative cities. creative industries and creative cities.

John Howkins:John Howkins: each person's individual creativity and each person's individual creativity and self-identity, self-identity, art, art, business, business, society, and society, and global development;global development;

innovative economic, cultural and social innovative economic, cultural and social solutionssolutions

Creative economy (concept)Creative economy (concept)

The philosophy of balancing and linking social, The philosophy of balancing and linking social, cultural and economic outcomes and a framework cultural and economic outcomes and a framework on which its methodology is based.on which its methodology is based.

The crucial link between commerce and creativity The crucial link between commerce and creativity providing clients with innovative economic, cultural providing clients with innovative economic, cultural and social solutions. and social solutions. 

Fundamentals:Fundamentals: creation of individual solutions for each client;creation of individual solutions for each client; appreciation of the true value of appreciation of the true value of

companies’ own products and services, companies’ own products and services,  the markets in which they operate and the markets in which they operate and the communities where they work.the communities where they work.

What are the solutions?What are the solutions?

Do not reinvent the wheel:Do not reinvent the wheel: Enable creativityEnable creativity Enhance cooperationEnhance cooperation Build on existing infrastructureBuild on existing infrastructure Manage time & informationManage time & information Work on the elements that can be controlled firstWork on the elements that can be controlled first

What do international competitions What do international competitions bring to the local cultural industry?bring to the local cultural industry?

Increased exposureIncreased exposure Better standardsBetter standards Increased tourismIncreased tourism Intellectual competitionIntellectual competition Enhanced reputationEnhanced reputation Visibility for localsVisibility for locals Improved project managementImproved project management

Project management services (by Project management services (by creative industries)creative industries)

can includecan include exhibition / show set-up, exhibition / show set-up, art production and co-production, art production and co-production, researches and feasibility studies, researches and feasibility studies, conference organisation and holding, conference organisation and holding, cultural events organisation and holding, cultural events organisation and holding, film shooting, film shooting, etc.etc.

Project management services (task Project management services (task

solving)solving) art consulting, art consulting, art tours, art tours, undertaking the set-up of projects, projects’ coordination and undertaking the set-up of projects, projects’ coordination and

follow up; follow up; taking care of the mediation between clients and their partners, taking care of the mediation between clients and their partners,

as well as the go-between of clients and their collaborators; as well as the go-between of clients and their collaborators; setting up a communication plan for specific art projects setting up a communication plan for specific art projects

according to each project’s specifications;according to each project’s specifications; translating correspondences, meetings, audio and video files, translating correspondences, meetings, audio and video files,

and contracts;and contracts; liaising with local partners;liaising with local partners; setting up working teams to get involved in short-term and setting up working teams to get involved in short-term and

long-term projects;long-term projects; providing field project facilitation.providing field project facilitation.

Art Consulting Art Consulting as a project management serviceas a project management service

providing information regarding the contemporary art scene, providing information regarding the contemporary art scene, including fine art, video, theater, and dance, as well as the cultural including fine art, video, theater, and dance, as well as the cultural scene and national (European) market;scene and national (European) market;

running feasibility studies according to each project specifications running feasibility studies according to each project specifications and requirements;and requirements;

advising on potential local collaborators and partners;advising on potential local collaborators and partners; undertaking canvassing for performing venues and art spaces, undertaking canvassing for performing venues and art spaces,

and collaborating with venues and art spaces to set up projects and collaborating with venues and art spaces to set up projects and events;and events;

offering access to a local network related to the artistic scene;offering access to a local network related to the artistic scene; setting up temporary working teams that are involved in short-term setting up temporary working teams that are involved in short-term

and long-term projects;and long-term projects; advising on the set up of agreements.advising on the set up of agreements.

Project management in creative Project management in creative economy building – holistic leveleconomy building – holistic level

Coordinated approach to creative industries Coordinated approach to creative industries (commercial logic) –(commercial logic) –

developing greater visibility to local, regional, national developing greater visibility to local, regional, national and global markets;and global markets;

connecting for scale;connecting for scale; coordinated complementary strengths;coordinated complementary strengths; increasing convergence opportunities with other increasing convergence opportunities with other

sectors;sectors; establishing leadership in sector specialisms – design establishing leadership in sector specialisms – design

and digital media.and digital media.

Project management in creative Project management in creative economy building – holistic level (2)economy building – holistic level (2)

Coordinated approach to creative industries Coordinated approach to creative industries (professional logic) –(professional logic) –

exchanging knowledge;exchanging knowledge; developing a richer research;developing a richer research; building a larger skills base;building a larger skills base; providing a bigger portfolio of investment propositions.providing a bigger portfolio of investment propositions.

Project management in creative Project management in creative economy building – holistic level (3)economy building – holistic level (3)

Coordinated approach to creative industries Coordinated approach to creative industries (cultural logic) –(cultural logic) – building on intertwined histories;building on intertwined histories; exploring common contemporary sensibilities;exploring common contemporary sensibilities; exploiting links to the wider cultural sector.exploiting links to the wider cultural sector.

Questions?Questions?

ReferencesReferences

ChinArt Management. URL: ChinArt Management. URL: http://chinartmanagement.com/Tailor-made-Art-Tours

Fleming, Tom. Developing a creative economy in the Fleming, Tom. Developing a creative economy in the Baltic region: challenges & opportunities. URL: Baltic region: challenges & opportunities. URL: http://loomemajandus.edicypages.com/balticreview/tom-fleming

Howkins, John (2001), The Creative Economy: How Howkins, John (2001), The Creative Economy: How People Make Money from Ideas, Penguin. People Make Money from Ideas, Penguin.

Walcott, Ian W. Applying Project Management to the Walcott, Ian W. Applying Project Management to the Cultural and Creative Industries: a Tool for Developing Cultural and Creative Industries: a Tool for Developing Countries. URL: Countries. URL: http://www.slideshare.net/ianwalcott/ Project-Management-in-the-Cultural-Industries-703285

Thank you for your attention!Thank you for your attention!

Lecture 2. Lecture 2. Project Management Project Management

in Creative Industriesin Creative Industries

Olga A. BurukinaOlga A. Burukina, , PhDPhD

Associate ProfessorAssociate Professor

National Research University National Research University Higher School of EconomicsHigher School of Economics

MoscowMoscow, 2014, 2014

obur@mail.ru