Does Constraint Enhance or Inhibit Creativity?

The good news is there is never a recession on creativity. Limitation can enhance innovation as it inspires Innovators to push to the next level. Innovation is the key driver of productivity, and as every good B-school student is taught, it is increases in productivity that drive economic growth.

But as much as B-schools and news outlets try to make economics oh so scientific, at a gut-level it is likely most of us know that the ability to “increase productivity” really boils down to the the best and brightest among us putting on their thinking caps and, well....innovating. (that's what the term" jobless recovery" means in real life.....people actually making things happen.....finding/being the one that produces X2, X5, X10!)

So my vote is to give the entrepreneurial thinkers of this world all the support and freedom (and compensation) they need to start making things happen again. Some people seem to think too much innovation got us into this mess, so they want to control it like water (stagnating) in a dam. But, let’s be honest, true Innovators just aren’t that motivated if leashed....give them the ability to run, and they’ll lead everyone who follows to the promised land....but restrict innovation.....hmmmm, where have we heard this before.....Who is John Galt? (Yes, the answer is on the Internet! But we won't find Mr. Galt social networking.) ~ Karen Dacus

Advantages of a Boutique Firm vs. Large Agency

It’s a well known fact, companies get more bang for their marketing buck by using smaller creative firms. You can bet small businesses that have lasted and thrived, know how to run efficiently and are able to pass the savings on to their clients.

Large agencies by nature have more waste, higher overhead, higher salaries and tax requirements and, thus, have to charge more while providing less. Every client a boutique firm takes on is critical, so each customer receives better service and faster response time. The actual number of people working on a given account is typically the same regardless of the size of the agency. (Larger agencies take on more accounts, thus need more people overall. A boutique firm typically comes up with more innovative ideas because they’re creative mavericks by nature. They own the firm, they’re taking the risk, they have to be the best. To stay innovative small firms are constantly on the move, highly flexible, always gathering the latest information and are typically owned and run by more entrepreneurial minded individuals. This attitude of innovation rubs off on the firm’s staff and is ingrained in the culture. Finally, with a boutique firm, the leaders and owners are available and accountable. They won’t be downsized next month! ~ Karen Dacus

The Luxurious Side of Recession

We agree with long-time leaders in luxury branding, like Burberry CEO, Angela Ahrendts, it’s important to follow tried and true tenets of business during economic downturns. First, don’t skimp on anything that touches the customer. Streamlining should be done in the back office only. Second, don’t cut back on marketing, in fact this is the time to pore it on. Find ways to add value to the product or service you’re offering that don’t add cost, such as more personalized service and more valuable employee/client contact. Find the downside opportunities. For example, it’s in a recession that some of the best deals can be made. Printing costs are lower, so it’s a great time to go against the trend and add some physical print items back into the mix to differentiate yourself. Focus on business diversity. In the case of Burberry they are dual gender, multi-category, multi-generational. This is not the time to limit yourself.
~ Karen Dacus

Making the Most of a Worldwide Recession

It’s important for businesses large and small to have a clear vision of who they want to be once the downturn is over. I think it’s all too common that everyone hunkers down putting all the focus on defensive tactics, while the chance to solidify the future and seize opportunities gets lost. The most successful businesses will be those whose leaders focus on the opportunity-side of the recession and use it to springboard to new heights. ~ Karen Dacus