Lecture 2. Project Management in Creative Industries Olga A. Burukina, PhD Associate Professor National Research University – Higher School of Economics Moscow, 2014

Contents 1. Creative Industries 2. Creative Economy 3. Application of project management in creative industries – why? and what for?

The objective is threefold: Strengthening knowledge, skills and theoretical references in the field of cultural policies and creative project management; Forging a framework open to cultural concerns, ways of thinking/doing and sensitivities which constitute a source of personal enrichment; Developing an integral personality of cultural project managers, as well as attitudes and skills related to the cultural project manager’s professional engagements and opportunities.

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

Creativity is generation of new ideas – either new ways of looking at existing problems, or seeing new opportunities (e.g. by exploiting emerging technologies or changes in markets).

Innovation successful exploitation of new ideas; process carrying them through to new products, new services, new ways of running the business or even new ways of doing business.

Creative Industries Creative industries are those industries, which have their origin in individual and collective creativity, skill and talent, and which have the potential for wealth and job creation through the generation and exploitation of intellectual property (DCMS, 1998).

Creative Industries Artists or businesses that generate their primary source of income and or economic value from their cultural and/or creative knowledge. Creative industries generate, develop, produce, utilize, display, disseminate and preserve products of economic, cultural and/or recreational value. Creative industries have been widely discussed all over the world in the last decade.

Cultural & Creative Industries Who are they really? TV & Media Fine Arts Visual Arts Performing Arts Film-making Music Performance Festival Industry Fashion & Design Industry

Howkins’ creative economy advertising, architecture, arts, crafts, design, fashion, film, music, performing arts, publishing, R&D, software, toys and games, TV and radio, and video games (Howkins 2001).

Concept of Creative Industries Creative industries – a concept strongly developing across the world, create employment in businesses, a general sense of well-being in society through intellectual property.

80/20 Rule Broadly, and very roughly, creative businesses play by 80/20 rule – for 80% of the time, they operate just as any other business: they have products and services to sell, profits to make, margins to consider; for 20% of the time, they operate in ways that render them different, or in some cases ‘exceptional’ (NESTA 2009).

Creative Businesses’ Exceptionalism Creativity vs. Business Portfolio & Project Focused

Creativity vs. Business creative first and business second – motivated as much by the creative act as its commercial application; implications for the types of skills needed to develop businesses while retaining creative integrity; affects the style and culture of support offer needed for many creative businesses – the standard ‘one-size-fits-all approach’ has too many assumptions

Portfolio & Project Focused creative businesses and practitioners are dependent on high levels of flexibility and mobility; careers are run on a project by project basis; core markets may shift regularly over time.

Prospering as a Creative Business requires access to rich networks of complementary activities; the asset base is relatively intangible (tied up in the skills base and creative production potential of the workforce); access to appropriate financing more difficult; dependency on trust (and risk) to develop deals and mobilize investment; place-embedded industries (location determines decision-making).

Management Challenges of the Cultural and Creative Industries Developmental thrust: Building infrastructure Industry segmentation & issues of centralization vs. decentralization Private & public sector coordination Artist as a manager Policy development Managing projects

Government Leadership Role Tax write-offs Duty free imports for inputs VAT exemption for all cultural events Special bond issues to support the industries Invite international creative enterprises studios to set up with added incentives Incentives for MNCs who provide scholarship funds Goal-oriented programmes with five year targets

Government Leadership Role (Estonia) Supporting creative industries is one of seven national priority areas within the strategic goal alongside supporting internationalization, innovation, access to capital, the creation of new businesses, knowledge and technology transfer and the development of tourism.

Government Leadership Role (Estonia) – 2 Creative industries measures and policies are coordinated in close cooperation between the Ministry of Culture and the Ministry of Economic Affairs and Communications. Programmes are implemented by Enterprise Estonia, one of the largest institutions within the national system for entrepreneurship support, providing financial assistance, advice, cooperation opportunities and training for entrepreneurs, research establishments, and the public and third sector.

Government Leadership Role (Latvia) The long-term strategy Latvia 2030 recognizes culture and creativity as important assets for the future development of the country; creative industries development is linked to issues of national identity, language, unique export offerings and the potential for marketing Latvia abroad; creative industries are linked to the issue of conditions for creative people: artists’ social security; mobility of cultural professionals; strengthening the strategic connection between cultural and education sectors, etc.

Government Leadership Role (Latvia) – 2 considering creative industries in close relation to establishing markets and the consumption of cultural goods and services; understanding the interdependence of creative industries development and further improvements to cultural administration: performance-based strategic management, training of administrators; establishing sound and sustainable research systems, etc.

Government support measures (Lithuania) including the concept of creative industries in the Lithuanian Strategy for the Use of EU Structural Funds for 2007-2013; including the concept of creative industries in the Operational Programme for Economic Growth; introducing creative industries into the national innovation policy; introducing creative industries into clustering programmes; introducing creative industries into export measures; establishing an arts incubator network; establishing the National Association of Cultural and Creative Industries;

Support measures for creative industries’ development (Latvia) raising the quality of and access to creative industries education and information, raising awareness of creative industries; business-related development (especially within the two priority sectors – design and audiovisual media and multimedia, which have the largest export potential); exploitation of new technologies; strengthening the research and development of the regulatory framework.

Cultural Management Synergy a system of (arts) education cultural infrastructure creative businesses

Project management is the answer How will the model work? Project management is the answer Suggested Project Approaches: Logical Framework Approach for Programme Planning Project Approach and Standardized Methods for Project financing and Grants Application of Project Management to all sectors of the cultural industries (National Events) A Centralized Cultural Project Management Office (CPMO)

Creative economy a new economy, based on creative people, creative industries and creative cities. John Howkins: each person's individual creativity and self-identity, art, business, society, and global development; innovative economic, cultural and social solutions

Creative economy (concept) The philosophy of balancing and linking social, cultural and economic outcomes and a framework on which its methodology is based. The crucial link between commerce and creativity providing clients with innovative economic, cultural and social solutions.  Fundamentals: creation of individual solutions for each client; appreciation of the true value of companies’ own products and services,  the markets in which they operate and the communities where they work.

What are the solutions? Do not reinvent the wheel: Enable creativity Enhance cooperation Build on existing infrastructure Manage time & information Work on the elements that can be controlled first

What do international competitions bring to the local cultural industry? Increased exposure Better standards Increased tourism Intellectual competition Enhanced reputation Visibility for locals Improved project management

Project management services (by creative industries) can include exhibition / show set-up, art production and co-production, researches and feasibility studies, conference organisation and holding, cultural events organisation and holding, film shooting, etc.

Project management services (task solving) art consulting, art tours, undertaking the set-up of projects, projects’ coordination and follow up; taking care of the mediation between clients and their partners, as well as the go-between of clients and their collaborators; setting up a communication plan for specific art projects according to each project’s specifications; translating correspondences, meetings, audio and video files, and contracts; liaising with local partners; setting up working teams to get involved in short-term and long-term projects; providing field project facilitation.

Art Consulting as a project management service providing information regarding the contemporary art scene, including fine art, video, theater, and dance, as well as the cultural scene and national (European) market; running feasibility studies according to each project specifications and requirements; advising on potential local collaborators and partners; undertaking canvassing for performing venues and art spaces, and collaborating with venues and art spaces to set up projects and events; offering access to a local network related to the artistic scene; setting up temporary working teams that are involved in short-term and long-term projects; advising on the set up of agreements.

Project management in creative economy building – holistic level Coordinated approach to creative industries (commercial logic) – developing greater visibility to local, regional, national and global markets; connecting for scale; coordinated complementary strengths; increasing convergence opportunities with other sectors; establishing leadership in sector specialisms – design and digital media.

Project management in creative economy building – holistic level (2) Coordinated approach to creative industries (professional logic) – exchanging knowledge; developing a richer research; building a larger skills base; providing a bigger portfolio of investment propositions.

Project management in creative economy building – holistic level (3) Coordinated approach to creative industries (cultural logic) – building on intertwined histories; exploring common contemporary sensibilities; exploiting links to the wider cultural sector.

Questions?

References ChinArt Management. URL: http://chinartmanagement.com/Tailor-made-Art-Tours Fleming, Tom. Developing a creative economy in the Baltic region: challenges & opportunities. URL: http://loomemajandus.edicypages.com/balticreview/tom-fleming Howkins, John (2001), The Creative Economy: How People Make Money from Ideas, Penguin. Walcott, Ian W. Applying Project Management to the Cultural and Creative Industries: a Tool for Developing Countries. URL: http://www.slideshare.net/ianwalcott/ Project-Management-in-the-Cultural-Industries-703285

Thank you for your attention!

Lecture 2. Project Management in Creative Industries Olga A. Burukina, PhD Associate Professor National Research University Higher School of Economics Moscow, 2014 obur@mail.ru