To infinity and beyond!

Abstract

Pixar Animated Studios is considered the best computer animation studio and one of the greatest places to work in the world. The firm has dominated the academy awards year after year with strongly nominations due to its excellent movies and these films have led them to win 26 Oscars. Additionally, since its foundation, the company has been considered outstanding because almost all of its productions were blockbusters.

But, what is hiding Pixar in its headquarters? Has Pixar found the secret key to create excellent movies and succeed in the world? Actually, this company has not secrets in its offices and haven´t found a holy recipe for success. Its good performance it´s based on its culture. But, is it possible to be profitable only based in the culture of the company? The answer is yes; a culture that allows many freedoms to their employees, in which it promotes the creativity in projects, and permits and encourages its people to take risks and express themselves without fear.

Pixar Studios was the dream of Ed Catmull and it was till 1986 when Steve Jobs bought the Computer Graphics division of George Lucas, in which Ed worked in that time and Catmull’s illusions started to see a light at the end of the tunnel. George Lucas and his company, Lucasfilm, sold the segment because they didn’t see a real potential and a computer department was very expensive. Remember that computers in that time were very expensive to have and maintain.

Once Pixar was acquired by Jobs the beginning was not easy because the company was not profitable. The projects of the studio depended totally of Jobs’ money, even he tried to sell the company three times, one of the offers was proposed by Microsoft in USD $90 million, but Jobs wanted USD $120. The company survived those years thanks to Steve. However, it was until 1995 when Pixar launched its first success movie, Toy Story, obtaining more than USD $300 million around the world and these earnings allowed new projects.

The company continued with its success and in 2006 it was acquired by Disney for $7.4 billion. The culture of Pixar was so strong that Disney permitted to conserve its own management. The story is easy to read and tell, but Pixar has faced many obstacles to win its actual position. Many projects failed and a lot of employees have left the company.

There were moments in which their personnel worked more than 12 hours per day or even they slept in the offices. Movies that required no breaks in which the whole team operated all the weekends of the month with null possibilities to see his families or enjoy a balance life between health and job. Situations in which the people complained with their leaders and feeling afraid due to possible changes in the company or leaders rejecting the program to train and hire new employees.

As many other companies, Pixar has faced many issues, but the way to solve them has been the differentiation. The firm sees the conflicts as an opportunity instead of and obstacle. What really makes different Pixar is the acceptance of the problems. The studio has accepted that everywhere and every time new problems will be appearing. So, what can you do to solve them?

Pixar

Imagine you wake up every day to go to your work and while you are driving to your office you are meditating and remember that you have worked 2 years in the same project and at least your team of 100 “soldiers” and you will need other 2 or 3 years to finish it. Besides, you are predisposed to work between 6 or 7 days per week and more than 12 hours per day. Additionally, it is almost 90% possible that in your schedule meeting of the day your work could receive tons of critics, deriving these comments in an improvement of your work or in the worst scenario, you will have to restart your project from the beginning or cancel it.

Once you arrive to your work, two hours late because you took your child to the karate ceremony, you enter through the Steve Jobs building and in the lobby you have two figures of real size as receptionists keep watching the entrance. These characters are made entirely of Lego blocks and belong to the first movie made totally in computer. Buzz Lightyear and Woody are in the lobby of the offices taking care of the visitors and employees.

While you are walking to you work area you device that one of your team members have built a new wall of 5 meters for his castle and also he has a new archery tower. You keep walking and one of your colleagues ask you if you are ready for the next rock festival, Pixarpalooza, that will be installed in the soccer fields outside of the offices. Once you finally arrive to your desktop, the first thing you do is to call your designer to her house because she has been working more than three months outside of the offices as result of their pregnant.

Before entering to the “Braintrust” meeting that will define the future of your project with all of the executives of your company, you go with your writer that is inside in one of the castles for doll princesses. Then, you enter to this little pink castle and also you found your cartoonist and all of the members started to prepare the information for the meeting inside the “fortress.”

How can be possible that a company can permit a worker arrive two hours later? Or why does a designer want a castle in his work area or have a meeting inside a pink castle? Is it a dream or only a joke? Actually not, this is real and it is a typical common day in an offices situated in San Francisco Bay, California. Let’s explore and analyze Pixar.

The previous is happening in Pixar every day. This model was found mainly by Edwin Catmull, president of Pixar Animated Studios, with collaboration of Steve Jobs and John Lassetter, the last one is the chief creative officer of Pixar Animated Studios, Walt Disney Animation Studios and Disney Toon Studios. The principal objective of this crew was to develop a culture profile in which the people can freely express, to foment the creativity and guide others to be creative and finally and very important to create an environment of problem resolution.

The organizational structure of the company to maintain and modify the culture in Pixar is divided in “Key Executives for Pixar Inc” and “Pixar Inc. Board Members.”

The Key Executives are:

• Edwin E. Catmull: Co-Founder, Director and President of Walt Disney & Animation Studios
• Simon Tristan Bax: Chief Financial Officer, Principal Accounting Officer, Executive Vice President and Secretary
• John Lasseter: Chief Creative Officer and Executive Vice President of Creative Division
• Lois J. Scali: Executive Vice President and General Counsel
• Jim Morris: General Manager

The Board Members are:

• Edwin E. Catmull
• Joseph A Graziano
• Lawrence B. Levy
• Larry W. Sonsini
• Joe Roth

Every animation project inside of Pixar should present results to the key executives but every project is totally independent to take decisions and make changes in the film. The way in which every movie project is structured is in a hierarchical way and it is composed in a traditional film organization (not all the roles and functions will be mentioned):

• Art
• Designers
• Writers
• Sound
• Production engineers
• Director
• Photography

The company has a strongly belief in which any team and members should be able to face and solve problems without fear and motivate them to take decisions with no punishments even when the result was not positive.  Pixar believes in its employees, that’s the reason the studio created and environment of problem resolution.

But, why a company wants an environment of problem resolution? For many enterprises the problems are seeing as synonyms of bad, something they don’t want to see, a waste of money and time. However, the founder of Pixar, Ed Catmull, was follower of the theories of W. Edwards Deming. Deming was a statistic teacher that helped Japan after Second World War. Many companies followed their instructions and now are considered the best in the world, such as Sony and Toyota.

One of the essences of the theories of Deming is to give freedom to the employees to solve problems. Additionally, this theory doesn’t make discriminations between organizational levels. So, everybody in the company, from the top management to the production employees have the freedom to take decisions and solve any issue. This action creates a satisfaction sensation in the worker because he is helping to contribute to have a best result in the product.

The Deming’s model is followed in Pixar, breaking with the traditional way in which if any problem appears then this should be communicated to your boss and then to the  next level of bosses, etc. However, this process was not implemented easily in Pixar, it took years and this first conflict appeared after the Toy Story movie. The order in the project was: “In case you see any problem you should say it to your boss and then your boss is going to look a way to solve the issue.”

With this kind of management most of the employees were claiming that they didn’t feel part of the group because they didn’t contribute to solve problems or can communicate it directly to their teammates. Additionally, there were moments in which they didn’t want to express themselves due to the fear of the hierarchy levels.

After this obstacle with Toy Story, Pixar decided to give freedom to all their employees and the first good results were observed in the second project, “A bug’s life.” At the end of the project the team members were happy with their results and the collaboration between members was faster and directly. All the employees looked at each other on the same level without fear and express themselves freely, forgetting titles and hierarchy levels. This practice is still used.

It is very complicated for companies and people to say to others the truth. There is a paradigm between criticize and give real feedback. Criticize is easy because you only say why you don’t like something and sometimes the critics can be brutal and destroy someone. On the other hand, when someone gives a real feedback, the person can improve and learn something.

According to Ed Catmull, “people need to hear the truth.” Another management practice in Pixar to reinforce the employees to express themselves freely and solve problems is a meeting called “Braintrust.” And it is considered the most important process in the developing of a project because it is where the movie receives a real feedback.

The “Braintrust” meetings have given positive results. Using this tool, the animation studio has saved projects, such as Monster Inc., Up, Nemo, Toy Story, etc. Pixar´s employees are used too heard the truth because they know this is the only way to refocus the efforts or improve. Additionally this meeting has helped the company to cancel projects. When a project is not viable then the management board decides to remove it from the portfolio. It can sound hard to cancel a movie but it is much better to use the resources in other tasks than publish a film that no one will like.

Another important rule in this meeting is that everybody in the room has not titles. Once you enter to the hall you are not more a CEO or CFO or a writer. All of them are common humans, nobody is more important than any other. So, if one designer needs to criticize the movie of the chief creative officer, he can do it freely with no punishments or threats. This good practice of Pixar has demonstrated to its employees that even when someone has an important position in the company is still a human being and can talk freely with any other employee, no matter the level the last one has. This kind of meetings and conversations creates a healthy culture. In which everybody knows that everyone is looking the best for all and not the best for some.

The employees in the company have the freedom to do work office or to take additional free hours if they need them to solve personal issues or additional inconveniences. There was a case in which a father that was working in Pixar forgot their kid in the car under the hot sun. The husband forgot the kid because he was under a lot of pressure due to the exhaustive job and the wife that was also working in Pixar forgot the boy too.

Fortunately the boy didn’t die but when his parents went to the car to save him the poor kid was dehydrated and confused by the heat. This was a hard lesson to Pixar and the company remembered that the employees also have a life and they can’t be present all the day in the offices. For these kinds of cases the animation studio has permitted to their workers to do work office, leave the company in early hours or arrive late.

Thanks to these policies the firm has saved projects such as Toy Story 2. By mistake someone in the company deleted a big part of the movie from the computer servers. However, one employee that was doing home office because she needed for a family situation had a backup of the movie. She not only saved the film, she saved the efforts and hours of dedications of their colleagues.

One of the policies that Pixar has for its employees is the freedom to decorate their work area in the way that they want. The workers have built castles, fortress, huts, etc. And the reasoning is very simple, where do you want to prefer to solve problems, in a place sad and empty or in a place happy and full energy? The answer is easy. Additionally, it is considered that these kind of activities in which the employees can relax and distract their mints for some minutes can encourage people’s creativity.

The process to be part of Pixar it is very clear and it´s published in its webpage. The company shares their vacancies in their careers section and if the candidate has the skills then this will be contacted to have an interview. According to Glassdoor, the salaries depending of the position could be between USD $30,000.00 and USD $170,000.00 per year.

Additionally the company offers Internships for students and Residencies for recent graduates from Bachelors, Universities, Ph. D or master programs. These programs consist in work side to side with Pixar’s professionals inside of the company. The interns and residents will receive courses and will learn the culture of the company. The objective is to add new employees to the company.

When Pixar started with these projects most of the employees rejected these programs because they didn’t want more work or simply they thought they didn´t have time to teach someone.  After the first trials, the programs were a success and many of the Pixar’s leaders were opening and requesting more vacancies for new interns or residents. Unfortunately, the company receives thousands of curriculums but only a few are hired.

Jamie Woolf, a Pixar’s employee, created a program to train new managers. Once a new manager is hired, this worker will be trained by an experienced manager. During this process of eight months, the company tries to teach leadership skills such as decision making and creation a healthy environment for the teams. Additionally the new manager will have the space to share fears, problems and experiences with his tutor. One of the principal objectives of this program is that workers should face the fear and defeat it.

Talking about financial data, according to the “NEWS a RAMA” information, the acquisition of Pixar by Disney has been more profitable than the acquisition of Marvel. The gross profit is bigger in the animation studio. Here the numbers:

Information analyzed until 2014.

According to “The Telegraph”, Pixar is the world greatest animation company in the world. Additionally Pixar is part of The Walt Disney Company, which is considered one of the most powerful companies in the world. Most of Pixar´s films are blockbusters and for the 15 movies most profitable in the animation history 5 belong to Pixar. Only the movie Toy Story 3 generated USD $1,063 million and the second of the list, Finding Nemo, USD $963 million.

The way in which Pixar was structured since the release of Toy Story in 1995 has permitted the company to take the right financial decisions. The process incurred to produce a movie is critical because it permits that any employee that saw a problem can raise his hand and tell about the issue. Besides, the health culture win-win adopted by the company and employees has helped to cancel projects and refocus the efforts in other plans. One example of canceled movies was Newt, a film announced in New York but with the advance of the product this was stopped.

Pixar has created an enviable work culture that many other companies have tried to copy. The recommendation for this company is that the managers have been there since the foundation of the firm. What will happen when Joh Lasseter or Ed Catmull left the company? Both guys transformed the culture hit help of many other employees. I consider that this generation is full geniuses. However, the real challenge will be once a new generation started to lead the company.

I believe that people are unique and it is almost impossible to find someone similar to Lasseter or Catmull so I consider that Pixar should be ready to prepare someone to guide Pixar. Fortunately, the animation studio has the Disney´s support; it has faced similar issues in the past and can guide Pixar to find new leaders.

I prognostic that one the succession of the CEO has happened; the company will not have problems producing excellent movies the only problem I see is in the culture. Imagine this, Catmull and Lasseter have been there for more than 20 years. Obviously, when someone new appears the employees will not be feeling comfortable.

Bibliography

Arrant, C., 2014. MARVEL OR PIXAR? Which Was the Better DISNEY Acquisition?. [En línea]
Available at: http://www.newsarama.com/22806-marvel-or-pixar-which-was-the-better-disney-acquisition.html
[Último acceso: 18 December 2016].

Bell, C., 2013. Monsters University: what’s it like to work at Pixar?. [En línea]
Available at: http://www.telegraph.co.uk/culture/film/10144531/Monsters-University-whats-it-like-to-work-at-Pixar.html
[Último acceso: 2016 18 2016].

Bloomberg, 2016. Company Overview of Pixar Inc.. [En línea]
Available at: http://www.bloomberg.com/research/stocks/private/people.asp?privcapId=340147
[Último acceso: 18 December 2016].

Catmull, E., 2015. Creatividad, S.A.. 1st ed. CDMX: conecta.

Corona, A., 2016. Las 15 películas de animación más taquilleras de la historia. [En línea]
Available at: http://www.sensacine.com/peliculas/album/album-18541252/13
[Último acceso: 18 December 2016].

curioso, P., 2014. Las 10 películas más taquilleras de Walt Disney Pictures/Pixar. [En línea]
Available at: http://www.planetacurioso.com/2014/04/01/las-10-peliculas-mas-taquilleras-de-walt-disney-picturespixar/
[Último acceso: 18 December 2016].

Forbes, 2016. Disney encabeza la lista de marcas más poderosas en 2016. [En línea]
Available at: http://www.forbes.com.mx/disney-encabeza-la-lista-de-marcas-mas-poderosas-en-2016/#gs.cS9Mzg0
[Último acceso: 18 December 2016].

Fortune, 2014. 5 ways your company can be like Pixar. [En línea]
Available at: http://fortune.com/2014/02/03/5-ways-your-company-can-be-like-pixar/
[Último acceso: 18 December 2016].

Fortune, 2016. How Pixar Quietly Dominates the Oscars—Year after Year. [En línea]
Available at: http://fortune.com/2016/02/29/oscars-2016-pixar/
[Último acceso: 18 December 2016].

GAMEDESIGNING, s.f. The 50 Best Animation Studios in The World. [En línea]
Available at: http://www.gamedesigning.org/animation-companies/
[Último acceso: 18 December 2016].

glassdoor, 2016. Pixar Animation Studios Salaries. [En línea]
Available at: https://www.glassdoor.com/Salary/Pixar-Animation-Studios-Salaries-E5118.htm
[Último acceso: 18 December 2016].

Monica, P. R. L., 2006. Disney buys Pixar. [En línea]
Available at: http://money.cnn.com/2006/01/24/news/companies/disney_pixar_deal/
[Último acceso: 18 December 2016].

Pereira, B. G., s.f. 10 lecciones de The Walt Disney Company. [En línea]
Available at: https://www.entrepreneur.com/article/267506
[Último acceso: 18 December 2016].

Pixar, 2016. Careers. [En línea]
Available at: http://www.pixar.com/careers/Career-FAQs
[Último acceso: 18 December 2016].

Pixar, 2016. Our Story. [En línea]
Available at: http://www.pixar.com/about/Our-Story
[Último acceso: 18 December 2016].

Richards, O., 2015. ‘Best idea wins’: how Pixar grew up. [En línea]
Available at: http://www.telegraph.co.uk/film/what-to-watch/pixar-history-good-dinosaur-toy-story/
[Último acceso: 18 December 2016].