CREATIVITY RISK MANAGEMENT IN ADVERTISING PROJECTS

Abstract

The importance of creativity to the success of advertising projects has been generally accepted (Bell, 1992). Since creativity is difficult to predict, decisions relating to creativity may cause uncertain outcomes, which is referred to as risk in management terms. There has been increasing emphasis to creativity risk management over the years. Therefore the study aims to promote understanding of effective creative risk management in advertising projects. In this study, the literature is reviewed to differentiate creativity risk from normal risk. Based on the definition, responses pertaining to creativity risks identified are firstly analyzed using secondary data from 120 creative leaders’ views printed in the Wall Street Journal. A grounded theory approach is used to analyse the relevant portion so as to conclude the managerial techniques that are commonly used. The techniques are setting rules and standards, process management, encouragement and creative control. To test whether the identified four managerial techniques are equally effective, an online survey questionnaire is used to collect the data. A total of 90 questionnaires were sent and 50 respondents completed the questionnaire. The results indicated different opinions regarding the creativity risk-related managerial techniques and the differing importance within the techniques. It is found that encouragement is the most effective technique among the four factors. Creative managers should create an environment of risk taking and idea generation while embracing respectful conflict with its cordial resolution. Moreover, they should attract intrinsically motivated, naturally curious talents. The creative managers also need to balance the level of creativity risk using the other three techniques that are found to have similar effectiveness. The research also reveals that choice decisions of managerial techniques are affected by age structure and length of career in the industry. This finding is insightful for advertising agencies that are keen to improve the quality of projects and the level of creativity.