Creating conditions for innovation

McKinsey Quarterly's (free after you register) interview with Brad Bird, Oscar-winning director of The Incredibles and Ratatouille, has some interesting insights into creating an atmosphere that brings out the creativity in people.

For example:

* Learning about what others do

The Quarterly: Is there anything else you’d highlight that contributes to creativity around here?
Brad Bird: One thing Pixar does—which is a knockoff of old-school, Walt-era 1940s Disney—is to have all kinds of optional classes. They call it “PU,” or Pixar University. If you work in lighting but you want to learn how to animate, there’s a class to show you animation. There are classes in story structure, in Photoshop, even in Krav Maga, the Israeli self-defense system. Pixar basically encourages people to learn outside of their areas, which makes them more complete. Sometimes, people even move from one area to another.

* Improving morale

Brad Bird: In my experience, the thing that has the most significant impact on a movie’s budget—but never shows up in a budget—is morale. If you have low morale, for every $1 you spend, you get about 25 cents of value. If you have high morale, for every $1 you spend, you get about $3 of value. Companies should pay much more attention to morale.

The context is making movies; the content is widely applicable - read the full interview!