Responding creatively to change

To recap, in our first article, we discussed how organisations could become more dynamic, introducing effectuation as a framework for responding to challenges.

The theory of effectuation has four core principles. In our second article we covered the first two – The Prop Closet (aka the ‘bird in hand’ principle) and Radical Collaboration (aka the ‘crazy quilt’ principle). Below, we take a detailed look at the remaining two.

Happy Accidents (aka the ‘lemonade’ principle)

We’re all used to adding a contingency to our budgets to mitigate the inevitable surprises. But while stashing some dosh away for an emergency dramaturg or extra marketing push is useful, it tends to reinforce a sense that change from the predicted plan is inherently bad. Whereas surprises (or crises) can be immensely fertile fields of opportunity and creativity.

To operate with agility, we need to move beyond tracking and mitigating variation (contingency plans, budget variance etc) towards actively planning for and embracing change. Definitely easier said than done – but this shift in mentality isn’t about ruthlessness or relentless positivity, it’s that: “because entrepreneurs do not tie their idea to any theorised or preconceived ‘market’, anything and everything is potentially a surprise that can lead to a valuable opportunity.” If this sounds like another way of describing ‘agility’ and ‘pivoting’, that’s because it is.

When we leave open the possibility that our audience/market or our product/experience may shift through the process of creation, we are also able to scope new markets, new collaborators, new sources of income and new ways to create value. This can be challenging with funded projects but is yet another reason why an iterative process is necessary because the likelihood of a major shift in audience or experience is reduced with each iteration, and we can bring funders and partners along more easily at early stages.

When something goes wrong, we should ask ourselves, does this change:
●   the heart of the experience, the core of what the product is meant to do?
●   the duration or medium of the experience?
●   where, when or how we interact with the audience/visitors/participants?
●   our ability to add value and income streams rather than lower costs?

Building Backwards (aka the ‘affordable loss’ principle)

This last principle might be the most paradigm-shifting for our sector, and possibly the most mind boggling. ‘Affordable loss’ simply means only invest what you are willing to lose, which sounds reasonable enough, but what does this practically mean?

“Instead of calculating upfront how much money they will need to launch their project and investing time, effort, and energy in raising that money, the effectual entrepreneur tries to estimate the downside and examines what she is willing to lose. The entrepreneur then uses the process of building the project to bring other stakeholders on board and leverage what they can afford to lose together.”

Let’s apply this to a creative project – for example a small weekend festival. When we have an idea, we generally start by saying “OK. What do we need? A producer, a choreographer, don’t forget a small travel budget, can we fit in a bit for a better camera?" We tot up these numbers and then spend a huge amount of effort and resources (often unpaid) simply to secure yet more resources to deliver our amazing creative vision.

To be ‘effectual’ and ‘Build Backwards’ we ask:
●   What experience or value do we want the festival to provide?
●   What's already in our ‘Prop Closet’ that we could redeploy for the festival?
●   How might ‘Radical Sharing’ leverage more resources from the Prop Closets of our network?
●   What‘s the minimum use of these resources we can expend on an initial test of the festival, while allowing room for ‘Happy Accidents’ to change our direction?

Only then should we create the budget for delivering version one of what is hopefully many growing and exciting versions of our festival. From tiny acorns can mighty oaks grow. This is an investment mindset. We only risk what we are willing and able to afford losing. But we also expect a return to accrue over time – audience, engagement or revenue growth – getting bigger and better with each iteration. And we can invest that growth-driven surplus in more cultural or social value.

Operating joyfully

The purpose of effectuation is to create value by testing and learning (without huge resources). At Social Convention we’ve been putting this into practice by iterating our way toward the venue of the future [https://socialconvention.org/venue/]: a space to incubate ideas, research and develop new cultural forms and test work with audiences.

Nothing about the practicalities of the original idea have remained during this four year journey. Not the location, the partners, the name, the layout. And we didn’t even start with a physical space, instead using the pandemic as a ‘Happy Accident’ to work digitally to build our network. Yet we’ve stayed true to our vision and purpose and cannot wait for you to visit and engage in some ‘Radical Sharing’ with us.

It’s impossible to return to ‘normal’ post-Covid; not just because things have changed, but because standard operating wasn’t getting us where we wanted to go. We’re exhausted from years of constant change and uncertainty. And it’s entirely human to view a push towards change as an onerous upskilling task or reporting requirement that takes away from ‘the work itself’.

But it’s clear that we need a better, more regenerative, less soul-crushing way of working in arts and culture – not a new path, but one that harnesses the magic and the instincts we already possess as creatives to harness change and manage uncertainty.

When we use the four principles in concert – and crucially, act according to the insights and next best decisions they lead us to – we can begin to have confidence, even joy in navigating the waves of these strange, unpredictable journeys we chart. It’s already the way we make art, isn’t it time to extend that process to the business of making it?

Cimeon Ellerton-Kay and Natalie Hall are Co-Founders of Social Convention.
www.socialconvention.org
@sclcvn