Josep Riverola

Knowledge and Problem Solving

In this chapter, we outline the basic concepts which underpin the rest of the book. We start by giving a working definition of knowledge which we can use to establish the starting point for our subsequent discussion. After having described the mechanisms for problem solving, we give several different classifications of knowledge. This chapter is necessarily rather abstract, with little relation to business reality. To rectify this, Chapter 3 gives a first business application of the concepts developed here.

Quality and Service

A precedent of some of the ideas discussed in this book is to be found in the concepts of quality. Therefore, it is only fair that we establish this dependence in this chapter.

Neojiba: The Steam Boat Model and a Lesson in Operational Learning

Neojiba orchestra is on tour in Europe.A youth orchestra with a different work methodology, with a great success.

Fifteen Challenges for the Cultural Sector

This chapter sums up the authors’ ideas on the challenges facing cultural institutions in the near future. We have organized and combined them to provide a list, by no means exhaustive, of issues for further reflection. From our business perspective, we have detected some obvious dysfunctions that should motivate efforts to bring about improvements. In today’s world, institutions must face up to change and move with the times. This list provides food for thought and new avenues of inquiry in the constant quest for competitive advantage.

Tate: Reinventing Operations to Become a Different Type of Company

It was an unexpectedly warm and sunny day. ‘July in London sometimes has pleasant surprises,’ reflected Julian Bird, Tate’s Chief Operating Officer. Julian, an energetic-looking man in his late thirties, stretched his long legs and looked into the distance. He had joined the Tate organization a year earlier, in July 2007. It was an exciting challenge: Tate Director46 Sir Nicholas Serota had put him in charge of running all of Tate’s operations, which meant that the day-to-day organization was now his responsibility.

Introduction: A Business Point of View

History has taught us that the early years of a century are often tumultuous. The first decade of the twenty-first century is no exception – we are living in a time of change and deep crisis, whether we choose to face it or not. Though many would deny it, the current upheaval is much more than an economic crisis – it is a crisis of values, of our understanding of the world. Financial institutions have come to play such a prominent role in society that their strategies can change the lives of ordinary people. The fall of the Berlin Wall in November 1989 marked the beginning of a sea-change in society. From our vantage point as business school professors, we have seen a change in our course participants. Many say that we are partly to blame for producing the managers who brought us to where we are now. Up to a point, they are right. Thirty years ago, the people who got rich were the ones who worked hard, took risks starting companies, and really created value. In recent years, however, we have seen many get rich by unscrupulously gambling with other people’s money.

The Operational Dream and a Five-Star Service

We’ll delve now into trying to understand how a service is conceived, and how Operational systems are designed in order to provide that service. To develop efficiency in Operations, one requires a thorough understanding of these activities. In our case, we’re trying to see how the Teatro Real came up with them, and what structure they take. We will verify that conceiving an Operational Dream comes before making it a reality. What is an Operational Dream? It’s the realisation, in broad strokes, of the features that an Operational system must have as a function of the service that it’s going to provide. That is to say, you can have the idea of the service you want to provide, but at some point you have to look at the bigger picture of how that service must be constructed. The Operational Dream is, as the name implies, a dream. A dream of how you’re going to construct a service. It’s the intermediate step between the dream and the Operational reality. Very few companies have Operational Dreams and, if they do have them, very few have the opportunity of putting them into practice. In the Teatro Real they did have them, and they did put them into practice. They were able to do all that they hadn’t been able to do previously. It’s like leaving behind a world of frustration and finally being able to make the dream come true.

The RT Concept

Two chapters ago, we saw how the Teatro Real is an innovative company in terms of product. Because of this level of innovation, it is exposed to the effects of chance — to unexpected results. Every time they introduce something new, and when they don’t have comprehensive experience of the result, they’re opening the door to unexpected problems. It is impossible to completely control something novel, with which we are not familiar, and many occurrences can cause a disruption to the normal process of a service (in this case, a performance).

The Need for a New Operational Culture

The world of Operations, viewed from this early part of the twenty-first century, is in turmoil. Engineering firms with engineers in revolt, doctors who don’t accept the authority of their hospital administrators, consultants who deliver only half-measures, line managers who don’t contribute new ideas or improvements to their Operations … the list is endless. At the same time, many companies realise that they need to change but simply don’t know how.

Talent Management and Operational Culture

The two main topics which came up in conversation with Daniel are: why ‘theatre people’ are so motivated and immersed in their work and how to operatively handle the talent rife in this type of company. As we will see, the first topic has a lot to do with the immediate feedback which occurs in theatre, the most irascible form of which is booing. The second will take us deeper into ways of exploiting the talent for a company’s success. So, like good Mediterranean people, we will logically start with the second topic.