Innovation Results From Hard Work And Funding

by:

Joe Patti

In the Washington Post, Jon Gertner reviews a book about innovation by Matt Ridley.  One aspect of the book Gertner emphasizes is Ridley’s view that innovation is 90% perspiration and 10% inspiration:

Ridley’s most important chapters, and his book’s most interesting, are where he calls attention to “surprisingly consistent patterns” that describe the process of making new things. Innovation, he tells us, is usually gradual, even though we tend to subscribe to the breakthrough myth….He also illustrates how innovation can be a matter of the right people solving the right problem at the right time — and that it often involves exhaustive trial-and-error work, rather than egg-headed theoretical applications. This was typically the case with Thomas Edison, who, as Ridley notes, tried 6,000 different organic materials in the search for a filament for his electric light.

Gertner’s criticism of the book is it underappreciates the contributions of government funding in that long process of trial-and-error exploration.

Thus, you won’t find a lot here about the development of the atomic bomb, which depended almost entirely on state largesse, or about the subsidization of renewable energy. Nor will you read much on the transistor, many early lasers or the photovoltaic solar cell, which were created under the auspices of Bell Labs, part of a government-authorized monopoly…. And in Ridley’s story about the origins of Google, you will not see any indication that its founders were helped in their earliest days by a grant from the National Science Foundation.

Indeed, his book consistently plays down the influence of public funding in medicine, public health, personal technology, transportation and communications; it likewise minimizes — quite strenuously, and erroneously — the role of federal assistance in the development of natural gas fracking, which was kept alive by research investments from the Energy Department in the 1970s.

Reading this review, I realized in the 16+ years I have been writing this blog, I don’t think I have ever made a post that tied the lengthy process of creativity together with the importance of funding.

I have dealt with the topics separately. I have had a number of posts about how even creators often attribute their first big successes to some inherent stroke of genius or talent rather than to the 7 years of trial and error that lead to it.

I have also made posts about the importance of government and foundation funding to creative industries. I think the closest I may have come to directly tying both together are some posts I made about how people who have a support and expectations of relatively affluent families/friends are more able to participate in low paying internships/apprenticeships which can be highly important to networking and career development.

In any case, obviously innovation is a long term process which requires funding support and there aren’t a lot of entities willing to make that investment when it comes to creative arts.

By that same token, it shouldn’t be forgotten that businesses in general have benefited from government support of the basic research which constitutes the backbone of many of their products.

Perhaps all those calls for the arts to be run like a business should be answered by noting that contrary to all the garage origin stories of many famous companies, artists are often left to subsidize their own development. Additionally, the history of innovation of all types is one of government support.

 

It’s A Good Time To Broaden Board Composition Too

by:

Joe Patti

Tyler Green’s tweet today about art museums acting like corporations rather than charities got me to look at the full series of tweets on the subject.  He is angered by the fact that instead of stepping up to support museums in a time of crisis, the billionaire members of boards are voting for mass lay-offs of staffs.

In brief, his argument seems to be that while museum boards are comprised of people who make the largest individual donations to museums, they are not the largest sources of support for those museums.

He notes that many charities have board members who represent the membership or community the organization serves, but institutions like San Francisco Museum of Modern Art (SFMOMA) don’t have any.

All this is worth serious consideration as our organizations seek to move on to the next normal. Those who have supported our organizations in the past with their participation may no longer feel safe engaging with the general public. There is an opportunity to start working toward oft expressed ideals of engaging a broader audience with whom you haven’t had the time and resources to initiate a conversation. Because they are increasingly likely to be your new audience.

Their numbers may not be as large as your old audience, but social distancing rules have reduced your top capacity so you have some cover to explain the smaller crowds.

I wrote about Nina Simon’s talk on this effort earlier this month.

But perhaps most importantly in the context of Tyler Green’s posts, it is probably time to broaden the membership of the board. This is likely to necessitate a shift in corporate/board culture. Even if your board isn’t comprised of billionaires, it is highly likely that the group dynamics of the board are going to feel alienating to any new members chosen to represent the core demographics served by your organization.

Psychology of Re-Opening

by:

Joe Patti

Artsjournal.com linked to a Washington Post story about all the psychological considerations some movie theater operators are factoring into re-opening their spaces for screenings. To paraphrase one of those interviewed, there may be a whole series of conditions that have to be met to admit audiences, but you don’t want people to feel like they are undergoing an airport screening just to see a movie.

An owner of a movie chain in Omaha has decided to rely on a mix of subtle imagery and social proof:

One conclusion: Leaning in to safety messaging is a surefire way to turn off customers.

“If you’re leading off the pitch with ‘It’s so clean you’re not going to get sick’ then you’ve already lost the argument,” said Barstow, whose company is about to open a new Omaha location. Instead of talking about disinfectant and distancing, he says, he believes it more effective to roll out traditional marketing that slips in the requisite information — an image of a shiny lobby with an employee in the background who just happens to be wearing a mask, for instance.

“You let people know you’re taking care of them, but very subtly,” he said.

Barstow said he and his daughter, who runs the company’s marketing operation, have discovered that the best weapon for luring customers might be not what the theater is doing at all — it’s the sight of other customers.

[…]

“Seeing someone like a mom bring her three kids to a matinee is I think going to be the best tool to make people feel comfortable about coming themselves.” Of course, he acknowledges, such events need to happen organically, captured instead of contrived on social media.

At my venue, we had already been planning to start showing movies in late July before our governor added live performance venues alongside movie theaters as places that are allowed to hold events. One of the major points of concern for employees was whether customers would wear masks. We weren’t sure how forceful we could be, but the recent decision by the AMC movie theater chain to make masks mandatory gives us a little more support, regardless of how insistent we decide to be.

One interesting observation from the Washington Post article I hadn’t really considered was the importance of having mask wearing staff communicate reassurance with their eyes and posture since the rest of the face won’t be visible. In this, perhaps the performing arts have a competitive advantage.

“You have to train staff how to reassure customers with their eyes, because no one will be able to see their mouths,” said Barstow, who is mandating employees wear masks.

“Maybe,” he mused, “we should hire local drama students.”

Customer Desires: Always Complicated

by:

Joe Patti

The news JC Penney is closing a number of their stores and liquidating the inventory reminded me of a post I made eight years ago about the company’s efforts to deal more fairly with customers. Instead of having all sorts of sales and discounts that lead consumers to suspect something had been marked up last week in order to put it on sale this week, among other bits of trickery, JC Penny’s new CEO at the time pledged to offer completely transparent, low everyday pricing.

The move backfired on them leading a number of business reporters to observe that perhaps people liked to be cheated. That CEO was out, a new one was ushered in who restored the sales and coupons.

It was all a bit revelatory about consumer psychology and how you can’t always take what people say they want at face value.

As I pointed out in my post at the time, it also illustrates that money does not build relationships and loyalty.  I would suggest that most non-profit arts organizations are in the relationship building/facilitation business. If we weren’t, would people be donating the value of their tickets on cancelled events and increasing the amount they typically donate in a year? I say facilitation because participation in an activity with friends and family contributes to the development of relationships.

As much as your organization is struggling, those donations and other expressions of concern are what distinguish your identity and role in the community from larger corporations, even if you suspect you may be soon accompanying JC Penny on the road to dissolution. In that 2012 post, I also linked to a post I made about the expiration date of arts organizations. At the time I was speaking theoretically. Sorry to say it may be emerging into reality.

Back in 2012 when I first wrote my post, I quoted Collen Dilenschneider. She has since come out with much better research and advice for arts organizations use of discounts, but the basics still remain the same.

One thing of course, I need to point out is that price does not develop loyalty. You can not develop a relationship with your community if interactions with your organization are based on price. I stated that in the early days of this blog and as Dilenschneider notes this is true even in these days of social media:

“It is far better for your brand and bottom line to have 100 fans who share and interact with your content to create a meaningful relationship, than to have 1,000 fans who never share your message and liked you just for the discount.”

Dilenschneider also points to some data that there are diminishing returns from social media discounts. This may illustrate be where arts organizations and retailers differ. Retailers can offer myriad discounts annually and not suffer, but arts and cultural organizations offer a product valued entirely differently from that of retailers