Pixar Animation Studios - Research Paper Example

Background Pixar Animation Studios is a computer animation studio that encompasses technical, creative, and production skills to bring to life animated feature films. It all started in 1984 when animator (and current vice-president) John Lasseter joined George Lucas’ (of the Star Wars fame) in Graphics Group, of the Computer Division of Lucas film Ltd. The Graphics Group would later be purchased for US$10 million, by Apple Inc. co-founder Steve Jobs in 1986 and become an independent company known as Pixar. The small company of 40 employees started as a high-end hardware company selling the Pixar Image Computer (PIC), a system purchased by Disney for its use in 2D animation. However, poor sales forced the company to change course, and for the next six years since 1986, the company would produce short films, commercials, logos, winning various awards such as the esteemed Academy Awards. In 1991, Pixar teamed up with Walt Disney Studios to develop, produce, and distribute an initial three full-length feature films, starting with the 1995 release of Toy Story, considered the first fully computer-animated feature film ever. Short films continue to be released, along with the widely successful full-length films such as A Bug’s Life (1998), Toy Story 2 (1999), Monsters, Inc (2001), and Finding Nemo (2003) – this last film becoming the highest grossing animated film worldwide, and the 8th highest grossing film of all time. Other films include The Incredibles (2004), Cars (2006), Ratatouille (2007), Wall-E (2008), and Up (2009). Most if not all of these films have garnered numerous Academy Award nominations and wins for the company. Notably, in January 24 2006, the Walt Disney Company purchased Pixar for US$7.4 billion, the latter now becoming a wholly-owned subsidiary of Disney (Pixar 2010; Hormby 2006; Barnes 2008). Pixar’s creative department is headed by John Lasseter, who has established a creative team of highly skilled animators, and together with a story department and an art department, they create, write, and animate all of Pixar’s films. The company aims to find artists who have the capacity to bring characters and objects to life, as if the creations have real emotions and thoughts. To draw the best animators, the company has founded Pixar University, where three-month long courses are given to new and current animators. Furthermore, the company has its own production team, enabling Pixar to have complete authority over all the aspects of film production (Pixar 2010). The Issue Pixar Studio’s goal is to merge trademark technology with the most original artistic skills to create computer-animated films that cast unforgettable characters and heartening tales that can be embraced by all ages across the world. To meet this objective, the company has established a unique working culture that has contributed to much of their success. Growing to about 730 employees in the present, the company maintains its closeness as most have been working together since the 1970, continuously expanding to accept new creative geniuses. The work environment is described to be laid-back and ‘anti-corporate’, resulting to increased productivity and great fun for all their employees (Icmrindia.org 2006). The organizational culture at Pixar Animation Studios is a unique tool that has attributed greatly to their unparalleled works. Employees are known for their informal and eccentric work style, coming in anytime and working into the night, walking around barefoot, and even taking their pets along to work. Most did not expect to earn much from the job, but remained in it for the unconventional environment and the possibility of creating something never done before. Offices are distinctively designed to excite positive creative energy for its entire staff. Its California-based offices are known for its relaxed conditions, which give way to an open stream of thoughts and dialogue. The ‘habitat’ as the studio is called, is a wide space full of toys and life-size Pixar characters. This has led to a motivated and loyal workforce, where competition for positions is tough, as most animators’ dream job is to work for the Pixar studios (Icmrindia.org 2006; Levy 2008). The untraditional delegation of power is one element of the unique culture. Pixar co-founder Ed Catmull give directors enormous control over projects, compared to other studios where micromanagement is typical, and executives keep a tight hand over budgets and interject themselves into creative decisions. At Pixar, budgets and timelines are merely set, and the entire creative and production team is trusted to produce award-winning works. Heads such as Lasseter and Catmull, encourage employees to take all opinions and suggestions at an equal level, turning decision-making into a team effort (Schlender 2004; Taylor & LaBarre 2006). Furthermore, its contrast with the Hollywood culture is evident: in the Hollywood model, film creation focuses on the script, hiring people for a set time and a set salary, allowing everyone to move on after the project is done. This instigates minimal loyalty and perpetual competition. On the other hand, Pixar has retained a close family of collaborators who support one another, learn from the other, and exert oneself for improvements at every project. One-time contracts are absent from this place, and this encourages leaders to care about the well-being of all employees, and also ensure the growth of development of each person, as well as every bit of the ideas they bring to the table. It is a people-centered business, investing on the capabilities of each employee, pushing them to commit their selves to the four to five years that takes for each project to be complete (Taylor & LaBarre 2006). This confidence and perception of empowerment has given the company a competitive advantage leading to excellent work output and a tight relationship work culture. It is this unique environment that will be analyzed, as it is obvious how it has resulted to organizational performance that is unsurpassed, evidenced by Pixar’s streak of winning movies and short films, fierce competition for entry, and employee commitment to the company. Put against Schein’s Framework of organizational culture, this paper aims to understand Pixar’s culture better. It is possible that there are drawbacks for such unconventional work ethics, but these may have been addressed with Human Resource policies that ensure the success of the unique environment. This paper may also introduce recommendations that may be made to further improve the company’s name. Analysis An organization’s culture is associated with its identity and image (Hatch & Schultz 1997). Firms create their identity based on its status or image in the public, and on the values that are molded from within. Every organization has its own culture that is comprised of three levels: artifacts, values, and basic assumptions. It stems from Edgar Schein’s definition of culture as “A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.” (Schein 2004). Or in other words, a culture forms in the way a group accepts new individuals as part of their own, and also adapting to the external environment as well. Through this process, the group partakes in a collective learning that generates a collection of shared assumptions and beliefs, leading to the formation of a culture. At the outermost level are the artifacts; they are the aspects that can be seen, heard or felt, such as material objects in the form of logos, clothing, signages and equipment used by the entire staff; verbal expressions such as myths, theories, jokes, rumors, slogans, and nicknames; and activities in the form of meetings, parties, games, prizes, and ceremonies. These are easily observed, but may be ambiguous in meaning and thus difficult to comprehend by outsiders (Schein 1990; Nellen 1997). Secondly, the values that stem from the organizational culture include beliefs about the way things are, and values about how things should be, and thus reflects the goals and philosophies of the people. Leaders are responsible for influencing the people of these values, which goes through the process of assimilated before becoming a shared/group assumption. This assumption is at the core of the culture, evolving from a hypothesized solution that works and is used repeatedly. It deals with the things the people pay attention to, how they comprehend it, how they react to it, and what actions are done to resolve it. The behavior of the group becomes similar to one another, creating an environment that is stable and predictable. Moreover, these basic assumptions are composed of three parts, first of which is external adaptation, dealing with the control or avoidance of nature, the nature of activity as seen in the doing or being and achievement, and the nature of reality and truth. The second is internal integration, dealing with the human inclination of good or evil, and how it extends to relationships, reflected in the form of social orientation, hierarchies, and individualism or collectivism. Last is in linking assumptions, bringing together physical and personal space, language, and time. All of these belonging in the third level of culture are the ultimate sources of values and action of the organization (Schein 2009; Morgan 1997; ICAF 1997). Schein’s framework of organizational culture reflects the environment that is seen in the chosen case study, Pixar Animation Studios. The unique environment in Pixar is believed to be conducive of the success of their projects, and is looked at to be a subject of investigation that follows. It starts with looking at the Pixar offices in California. Filled with life-sized statues of Pixar stars and other toys, instigates a thought that this is a fun place to work at. The laidback atmosphere is highlighted with the seemingly lack of formality in the way people dress and behave at work. This visual observation speaks of the culture one would expect to encounter as one enters the ‘Habitat’ of the most creative and eccentric artists of all time, the only people who can bring images and drawings to life as if they were filmed in real time. The outcomes that win numerous awards also speak of the artifacts as defining the culture of Pixar on the outside. Their stories standout from other cartoons, as Pixar’s characters partake in a tale full of philosophical meanings, and not merely on jokes that are forgotten at the end of the movie (Weinman 2008). Steve Jobs even envisioned the workplace as the instigator of interaction amongst all employees. He had requested that the Pixar’s building’s layout is designed so that there is a greater chance of people bumping to one another; meeting rooms, the cafeteria, the restrooms, and other gathering places, are located in a central position (Li 2008). The physical setup of the company speaks of the importance of interaction to produce quality work. The technology employed at Pixar also contributes much to the creation of the culture; Lasseter speak of how the art challenges the technology they are using, and how the technology also inspires the art (Schlender 2004). It was the software they were designing that enabled them to create the life-like characters and scenes Pixar is known for. As for the espoused values of the Pixar culture, looking at the leaders and founders of the company is necessary. Ed Catmull, co-founder of Pixar, was hired by George Lucas to reinvent the technology behind film-making. Aside from credentials, a dream to be the first to create a computer-animated movie is what established the road of Pixar’s success. This is where John Lasseter and Steve Job also come in, all helping to make the dream come true in the form of the original Toy Story movie (Schlender 2004; Prokesch 2008a). Furthermore, investigating the source of authority that prevails in the company is important. Catmull believes that to be a great leader, one has to empower his people to achieve the extraordinary (Prokesch 2008b). Catmull’s goal was to establish an organization that could continue to be the best in the field, even when he and other co-founders are long gone from the company. To make this come true, the delegation of power was given as diverse as possible, leaving project directors to be accountable for the outcome of their own projects, after being given a loose budget and a timeline to simply obey. Moreover, the company has established a set of principles and customs that adhere to the belief that lasting relations are important, and that true talent is a rare find. As leaders, they are responsible not to prevent threats, but to empower everyone to bounce back when defeats do occur. Everyone must continuously test their assumptions, and look for the weak spots that could threaten the culture (Catmull 2008; Stallard 2008c). Pixar is successful because the employees at all levels have the opportunity to express their selves and be respected of their own talents. Opinions are sourced from everybody and not even Catmull and fellow directors have more influence than the others. Small teams composed of a director, writer, animator and editor would present their own ideas, the best of which will be turned into a blockbuster movie. The use of small groups allowed senior management to observe group dynamics and also allowed for the input of each individual (Li 2008; Stallard 2008b). The creation of subgroups within the organization has also led to the culture’s value of excellence in teamwork. The technology, creative and production departments are three independent groups responsible for their own set of tasks, but Catmull’s rule that these three must constantly communicate with each other, integrates each part to a coherent whole. Peer reviews are used, wherein at the end of a workday, the different teams responsible for different tasks of the film would present their work to each other, and members of other groups are encouraged to give their opinions. This is aimed to prevent complacency and enhance attention (Schlender 2004). In fact, this team culture is very efficient that it is said that the US Navy sent organizational experts to observe Pixar for improvements of its own organization (Schlender 2004). These speak of the criteria for success that the company sets to be at the goal of each employee, instilling in them the strategies that should be used to guarantee a good, lovable movie. At the core of Pixar’s culture are the basic assumptions that define the group. This includes the nature of the animation of Pixar films. In contrast to the Hollywood style as mentioned above, where people only come together to produce one film and cut off ties at the end, animated films are intricately engineered that collaboration is a necessity so that the same team can produce new films over and over again, with the trademark of the company at each film. Also, animated movies correlate their success with the recursive process of the produced film. This means that the story can be edited at any time of the production process, at the storyboard outline or at the final editing, as the people responsible for certain areas are still at hand to continuously make improvements and re-animate to create a better movie. It is in contrast to the Hollywood linear process, where after all the shots have been filmed, the editor is responsible for making everything fit together, that if something looks wrong, the scene is dropped altogether (Schlender 2004; Taylor & Labarre 2006). Furthermore, there is the unique combination of artists and self-confessed geeks, that Catmull says actually have similar temperaments. Managing the two groups is almost similar, and Catmull believes that there are far fewer differences between the two than others seem to think (Schlender 2004). With these two working together, the company is enabled to take risks that would set them apart form the rest of the animation world. Films such as Wall-E and Ratatouille are such examples, as the ideas the gave birth to these post-apocalyptic and rat chef stories are something no one else could have predicted to see. This also reflects the degree of freedom ascribed to the directors, that instead of the higher-ups telling his or her employees to create a movie that is similar to an already famous one, they trust in their staff to pull through with an original movie that push the boundaries of what is common or so-so (Catmull 2008). In addition, the core of the organizational culture can be seen in how professionals remain in Pixar as employees, instead of selling their big ideas to different studios in hopes for a big budget negotiation. They have refused one-time contracts in exchange for a lifelong chance to contribute to the entire studio, and belong in a family of collaborators that learn and become successful together (Taylor & LaBarre 2006) Also, what clearly initiates the unique culture of Pixar is the establishment of the Pixar University, as founded by Catmull himself. It is where all employees, even the non-artists or non-programmers, receive training in the fine arts and film to make them all well-rounded. Offering 111 courses, from drawing, to acting, to sculting, to belly-dancing, all employees, from the company president, to technicians, to security, all must give way for four hours a week, every week, for his or her education (Schlender 2004; Taylor & LaBarre 2006). Creative teams would study business courses, and accountants would take animation courses. The aim is not to force a non-artist to draw, but, as Nelson, a Pixar artist and executive, mentions, it is to teach everyone to become more observant, and seeing one’s colleagues in a new light. This encourages all employees, whether they are new or have been with the company at its founding, to assimilate to the culture of Pixar and learn what it takes to be a Pixar family member. It is all summed up in the Pixar University crest with the Latin ‘Alienus Non Diutius’ – Alone no longer. Nelson speaks of how this motto is at the heart of their model: allowing everyone to fail together, and to recover together (Taylor & LaBarre 2006). To answer the competitive nature that is the norm outside of Pixar, the company works to set an atmosphere of collaboration, teamwork, and learning (Rice 2008). This is one area that more than setting up the location of how people interact, the values as set by the founders are espoused, leading to a personality that emanates the Pixar culture. The remarkable culture that Pixar Studios have been able to create cannot be maintained if it does not result to success in terms of financial gains, as even the most person-centric company has bills to pay. Barney (1986) attributes the degree of sustained financial performance to a company’s culture, the latter to be comprised of certain characteristics such as firm managerial core values, through which the other values come about. It is evident in the Pixar culture how its founders display their ambitions and principles and share them with each and every one of their employees. One cannot ever question whether or not the employees feel they belong to such a notion of organizational culture, as it is evident in how every Pixar employee is committed to realizing dreams from ideas or papers, to world famous roles and stories. Nevertheless, Pixar should be continually aware of the changes that happen outside of their small but functional world. There is the risk of becoming too closed and intimidating, that other people might become discouraged from applying for a position in the company. It is also possible that not everyone can assimilate to the Pixar culture, since it takes a certain personality to fit in with the people who, if permitted, can be stereotyped as ‘Pixar-ized’. Conclusion There is no doubt that Pixar Animation Studios has succeeded in going from a mere cartoon-movie-making company, to an organization that has created an image and an identity from a culture of its own. Its founders and leaders started from individual dreams of drawing a character on paper, and developed the company into a group of collaborators casting their ideas together to form a string of movies loved the world over. Commitment to the Pixar name has created loyal employees who understand and support one another even if they work at opposite departments. Having their own university is enough to speak of how the company values employee empowerment and trust, and how everyone perceives authority. Pixar clearly demonstrates the organizational culture and its three levels as given by Schein. At the core one can observe the relationships fostered among staff from different origins, the president taking a dancing class with an animator or a security personnel. Next is in the beliefs and values carried by the organization, in that every one should participate and give an input in the formation of the next big film that they produce. With the help of their own University, these company goals are shared with the entire staff. Lastly, on the outside one can literally see the culture the employees have formed; a relaxed place that nurtures the craziest but the most genius of ideas, accepted and supported by everyone else. It is this organizational culture that has given Pixar a competitive edge, one that is unmatched by the rest of the animation world (Stallard 2008a). The only thing to keep in mind in having such a tight-knit company is the danger of being too restrictive and confined. Hagel (2008) brings up that there are always more people on the outside than inside; the challenge is to search for ways to remain in contact with the outside, in order to create relations that enable everyone to work at their best. Pixar must continue to search for new creators and new ideas, so as not to risk becoming a predictable piece of cartoon in the long run. They should also regularly check for areas that are becoming overly relaxed in the workplace, remembering that work can be fun, but work is still work (Kotter 2008). Fun should be the effect of well-placed meetings, classes, and interactions, along with a concrete output that at the end of the day leads to one step closer towards the production of a film. Finally, all employees should be individually assessed to ascertain if they are integrating into the Pixar family as well as expected. Management should keep in mind that no matter how stringent and selective their employment process is, there are still some that may not adapt to the very culture that identifies Pixar as a dream workplace of many. References Barnes B, 2008, Disney and Pixar: The Power of the Prenup, The New York Times, 1 June Barney J, 1986, Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?, Academy of Management, vol 11, no 3, pp 656-665. Catmull E, 2008, How Pixar fosters collective creativity, Harvard Business Review, September 1. Center for management research (ICMR), 2006, Pixars Incredible Culture, Center for Management Research, viewed 24 April 2010 Hagel J, 2006, Disney, Pixar and Jobs, viewed 25 April 2010, Hatch M & Schultz M, 1997, Relations between organizational culture, identity and image, European Journal of Marketing, vol 31, no 5, pp 356-365 Hormby T, 2006, The Pixar Story: Dick Shoup, Alex Schure, George Lucas, Steve Jobs, and Disney, 23 January, viewed 25 April 2010 Kotter J, 2008, Is your organization too complacent?, Harvard Business Review, 2, September. Li S, 2008, Designing a business model that fosters innovation, viewed 25 April 2010 Morgan G, 1997, Images of Organization, Thousand Oaks, CA: Sage Publications. Nellen T, 1997, Organizational culture and leadership by Edgar Schein. Pixar Animation Studios, 2010, viewed 25 April 2010, Prokesch S, 2008, A return to one-company careers?, Harvard Business Review, 25 February. Prokesch S, 2008, Pixars collective genius, Harvard Business Review, 19 August. Rice B, 2008, Alienus Nun Diutius, 5 June, viewed 25 April 2010 Schein E, 1990, Organizational culture, American Psychologist, vol 45, no 2, pp 109-119. Schein E, 2004, Organizational Culture and Leadership, 3rd edition, San Francisco, John Wiley & Sons. Schein E, 2009, The Corporate Culture Survival Guide, San Francisco, John Wiley & Sons Schlender B, 2004, Incredible: The Man Who Built Pixars Innovation Machine, Fortune, 15 November, vol 150, no 10. Stallard M, 2008, The Connection Culture: A New Source of Competitive Advantage, Change This, vol 44, viewed 24 April 2010, Stallard M, 2008, The Incredibles: Everyone has a "voice" at Pixar, 11 September, viewed 25 April 2010 Stallard M, 2008, Pixar: Keeping its eye on the ball, 19 November, viewed 25 April 2010 Industrial College of the Armed Forces, 1997, Strategic Leadership and decision making, Washington DC, National Defense University Press Taylor W & LaBarre, 2006, How Pixar Adds a New School of Thought to Disney, The New York Times, 29 January. Weinman J, 2008, The problem with Pixar, Macleans Magazine, 25 June. Read More