key leverage points of movie production and how to manage them?
TRANSCRIPT
2017 TOCICO International Conference
©2017TOCICO.AllRightsReserved.
Key Leverage Points of Movie Production and How to Manage Them?
Presentedby:BahadirInozu,MikeHannan,andCurFsDouceIeDate:July18,2017
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
Agenda• WhyChange?
– Changesintheentertainmentindustry
• WhattoChange?– TheFlowfromScripttoScreen– Businessvs.CreaFveSides
• WhattoChangeto?– ROIEngineeringwith“BestofBreed”– Agility&SafetywithHRO
2017TOCICOInterna/onalConference
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WhyChange?StateoftheEntertainmentIndustry• ImpactofStreaming
– Removingavailablescreenconstraint– Infusionofmajorfunding– MulFplaYormcontentexpansion
• SaturaFon:notenoughFmetowatch• Complexfinancingdynamics• Veryhighlevelsofuncertainty
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
VeryHighUncertainty• “Mathisgenerallyreliable,butinthe
worldofmoviemaking,notsomuch.• “Fivetakes”usuallymeans15to20.• ADP's"onlytwominutes"tosetaflag
likelytranslatestonofewerthanfive• …andasnarky"it'lljusttakeasec"from
Make-upcouldactuallywarpEinstein'stheoryofMmeandspace.”
–JonC.Scheide,MovieMakerMagazine
2017TOCICOInterna/onalConference
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WhyChange?• Featurefilmsmaytakethreetosevenyearsfromscripttoscreen.*
• "Whoreallywantstolockupaninvestmentforfouryears?Notinvestors,onlypatrons.”
—TedHope,HopeforFilm
*Ref:TheMakingofaHollywoodFilm:AGuideforScreenwritersbyElizabethEnglish
2017TOCICOInterna/onalConference
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WhatistheInvestors’Goal?
CreatethemostaIracFvecontent
Investors’Goal:MaximizeMovie
ROI
FinishonFme,scheduleand
budget
Minimizerework&contentchanges
Keepreworkingtogetit“justright”
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
WhatistheGoal?• AnotherperspecMve:“Film
BudgeMngisazero-sumgame.• Allthemoneybudgetedshould
equalthemoneyspent…• Thegoalistousethemoneyand
resourcesthatyouhavebeengiventocreateaproductthatrepresentsthefullvalueofwhatwasallocated.”
-PlanningtheLow-BudgetFilm,RobertLathamBrown,SecondEdiMon,2013.
2017TOCICOInterna/onalConference
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>FlowfromScripttoScreen
WhyChange?
2017TOCICOInterna/onalConference
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What to Change?
FocusingonhighimpactIncreasingtheflow• Impediments
– Script:revisions– GreenLight:aIachingtalent,distribuFonaccessforfinancing“catch-22”
– ProducFonStages:scopingdecisions,cosFngmoremoneyandFme
– PostProducFon
Script
Preproduc/on
PrincipalPhotography
Screen
PostProduc/on
GreenLight
Distribu/on
Streaming
Marke/n
g
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
WhattoChangeto?
• Dependsonmovietype• FocusonROIImpactofDelaysandIncreasingScope
• Usea“Buffer-balanced”Approach
• AnimaFon/PostProducFonmorecloselyresemblestradiFonalenvironmentsinotherindustries
• SimilartoVideoGameDevelopment
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CaseStudy:VideoGameDevelopment
• Aleadingmakerofvideogames,specializingintherole-playinggame(RPG)genre.
Challenges:• Deliveringgamestomarketby
commiIedduedates,especiallywhensuchduedatesalignwithvalue-maximizingreleasewindows.
• AssessingandexecuFngontheopFmaltradeoffsbetweencost,schedule,andcompellingarFstryandgameplay.
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
ConflictforMovieProduc/onandVideoGames
CreatethemostaIracFvecontent
MaximizethequanFtyand
qualityoffutureopportuniFes
Deliverwithinplan
Minimizerework&contentchanges
Keepreworkingtogetit“justright”
2017TOCICOInterna/onalConference
©2017TOCICO.AllRightsReserved.
Addi/onalChallenges
• AligningcreaFveteams’primarygoalofbuildingstand-outart-workporYolioswiththecompany’sprimarygoaloflong-termviabilityandcompeFFvemarketsuccess.
• FosteringautonomyamongcreaFveandtechnicalteams,whiletrusFngthatthoseteamswillexecutewithasustainedsenseofurgency.
• EnsuringthatexecuFveleadershipteamsprioriFzetheFmelyexecuFonofonlythosetasksthatdrivetheschedule.
• Maintainingorenhancingthecompany’scompeFFveedgebyreleasingahighervolumeofmarket-leadinggames,withincurrentcostconstraints,andwithoutburningoutitstoptalent.
2017TOCICOInterna/onalConference
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Solu/on
• EmployingauniquemixoftechniquesfromtheTOC,Lean,andAgile,enabledviabest-of-breedtoolsets
• Configuredinamannerspecificallytailoredtothecompany’sindustryandcorporateculture.
• WhilethefulleffecFvenessofthisapproachwilltakemonthsoryearstoassess,thecompanybelievesitisontracktoacceleraFngthecompleFonofamajorgamebyafullyearormore.
2017TOCICOInterna/onalConference
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TheCynefinFramework
Ref:ALeader’sFrameworkforDecisionMakingbyDavidJ.SnowdenandMaryE.Boone,HarvardBusinessReview,November2007
2017TOCICOInterna/onalConference
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Complex Project Environments
Ref:AgileCCPM,TOCICOWhitePaperbyKoichiUjigawa&DavidUpdegrove,2016
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• Procedureinplanning– Addtasksanddependencies– Levelresources– IdenFfytheCriFcalChain– Insertbuffers
• ProcedureinexecuFon– ExecutetasksandreportRDU– Updatebufferstatus– TakerecoveryacFonasrequired
“Standard” “Agile”ModifiedNetwork
ConstrucFonProcessFeature
ModifiedBufferManagementMethod
CCPM
Ref:AgileCCPM,KoichiUjigawa,TOCICO2016
2017TOCICOInterna/onalConference
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PrincipalPhotography WhattoChangeto?• Task-levelDBRusingKanbanboardstodrivesingle-taskingbehavior
• Re-opFmizaFonofthetripleconstrainttomaximizeROI
• MixofbuffertypesdesignedtoprotectROI
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Principal Photography WhyChange?• NeedAgility&Higher
Safetylevels• Movieprojectsareconstrainedby
rapidchangesintheweather,castandcrewhealth,andotherlatebreakingdevelopmentswithveryliIleroomforerror.
• RiskmiFgaFontradiFonallyreliedonexperiencedcastandcrew.
• “Moviemakingislikeamilitarycampaign.TherearespecificobjecMves,fluidcondiMons,safetyconcerns,andlogisMcs.Butatleastnooneistryingtokillus.”–RobertL.Brown
WhattoChangeto?HighReliabilityOrganiza/on(HRO)
§ “AHighReliabilityOrganizaFon(HRO)isonethathasbeensuccessfulinavoidingdisastersdespitebeinginahighriskfieldwhereaccidentscanbeexpectedduetocomplexity.”
2017TOCICOInterna/onalConference
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Evolu/onofHROs
§ AirtrafficcontrolandaircralcarrieroperaFons:RecordofconsistentsafetyoverlongperiodsofFme.
§ HallmarkofHROs:technicalexperFse,stabletechnicalprocesses,ahighpriorityplacedonsafety,aIenFontoproblems,andalearningorientaFon.
2017TOCICOInterna/onalConference
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Characteris/csofanHRO
• An/cipa/on① PreoccupationwithFailure② SensitivitytoOperations③ ReluctancetoSimplify
Interpretations• Containment④ CommitmenttoResilience⑤ DeferencetoExpertise
Ref:ManagingtheUnexpected,WeickandSutcliffe
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HighReliabilityPrinciples
§ Preoccupa/onwithfailureembodiesthevigilancetowardssystemvulnerabilityandearlyengagementofproblems.
§ ReluctancetosimplifyrecognizesthecomplexityofmulFpleinteracFonsatthelocallevel,theorganizaFonisreluctanttosimplifyortokeepsimple.
§ Sensi/vitytoopera/onsdescribesthepriorityoflocaldiscrepancies,disturbances,andinterrupFonswhilemaintainingstrategicoperaFons.
§ Deferencetoexper/serecognizestheimportanceoflocalknowledgegainedfrominteracFngwiththesituaFon.
§ Commitmenttoresiliencesupportstheopen-endedworkingofaproblemunFlitresolves.
Ref:HighReliabilityinaHighlyUnreliableWorld,D.vanStralen,S.Byrum,B.Inozu,2017
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HROforMovieProduc/on
• Howdoesthecrewprepareforunforeseenevents?
• Arethereearlywarningsigns?• Whatkindofroles,
competenciesarethere?• Howdoesthecrewreactto
unforeseenevents?• Whatdotheylearnfromtheir
mistakes?• Howdoesmanagementfitinto
theseroles?
2017TOCICOInterna/onalConference
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ExploringHROPrac/cesontheFilmSetFilmproduc/onasahigh
performanceseekingorganiza/on/team:
• Youdonotknowalotaboutit,“anunknownplanet”
• Anenvironmentfullofchallenges,uncertainFes,ambiguiFesandconstraints
• Anexclusive,compeFFveandhighlyambiFouscontext,seekingforhighperformanceundertryingcondiFonsExcerptfrom“Pathwaystohighperformance:ExplorecollecMvemindfulnessatafilmsetbyDr.Anne`eGebauer,ICLGmbH“–Usedwithpermission
2017TOCICOInterna/onalConference
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Challenges during Movie Production • Unforgivable,compeFFveenvironment
• LackofFme,lackofmoney
• Managingdiversity:Atwoclasssociety
• Noredundancy:NoalternaFveforthemainactors
• NoroomforexperimentaFon:RepeFFonnotpossible
• Non-linearrealizaFonofthescript• HighdegreeofspecializaFon• ManyuncertainFesyoucannotinfluence
• HighpressurebyexternalparFes• ConflicFnginterests(arFsFc,markeFngandfinancial)
• Nostandardizedprocedures/rouFnesExcerptfrom“Pathwaystohighperformance:ExplorecollecMvemindfulnessatafilmsetbyDr.Anne`eGebauer,ICLGmbH“–Usedwithpermission
2017TOCICOInterna/onalConference
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Whataretherulesofthegame?
• WhichpracFcesheandhisteamestablishtoanFcipateunexpectedevents?
• WhichpracFcesdidheandhisteamestablishtoquicklyrespondtounexpectedevents(resilience)?
• HowdoeshecreatecondiFonsformindfulness(e.g.heedfulinterrelaFng,sharedreferencesandambiFons,informedculture,trustandrespect)
• Howdoeshecreateleadershipwithwhateffect?
Excerptfrom”Pathwaystohighperformance:ExplorecollecMvemindfulnessatafilmsetbyDr.Anne`eGebauer,ICLGmbH“–Usedwithpermission
HowisDirectorOliverZiegenbalgorganizingtocopewiththegivenchallenges?
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PostProduc/on
OurExperience• Scopeuncertaintyatthe
beginning• Director’sVision• Dialogue(DX)• Music(MX)• SoundEffects(FX)• ProducFonEffects(PFX)
andFOLEY• FinalMix• CCPMApplicability:
Changingbehaviorslikefull-kit
TheSoundPackage-"Intheend,SoundmustfollowPicture...thelastCharactercast.Iftheshowdoesnothaveastarpresence,thiswouldbeyourlastchancetohireone.”--EricM.Klein,Producer/PostProducer
2017TOCICOInterna/onalConference
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Conclusions• MovieproducFonstageshaveveryuniquechallenges—butmostof
thesechallengeshavebeentackledinotherindustriesusingavarietyofmethods
• Veryintenseanddynamicenvironmentduringprincipalphotography• TOCincombinaFonwithothermethodsas“BestofBreed”approach
hasgreatpotenFal• Pre-ProducFon&PostProducFon:CCPM,Task-levelDBR,and“ROI
Engineering”• PrincipalPhotography:AgileCCPM• ApplicaFonofconflictcloudsoffersnewsoluFons.• HighReliabilityOrganizingbringsmoreagilityandhighersafetylevels.
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ContactInformaFon
• BahadirInozu,Ph.D.:[email protected]• MichaelHannan:[email protected]• CurFsDouceIe:[email protected]• www.sharpfocus.movie• www.s-focus.com• www.fortezzaconsulFng.com
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Bahadir“Baha”Inozu,Ph.D.• Bahadir“Baha”Inozu,Ph.D.istheFounderandCEOofSharpFocus,LLC.Heisalso
aProfessorEmeritusatUniversityofNewOrleans.HecurrentlyfocusesonspeedingupmovieproducFonfromscreentoscript.
• Heisaco-authorof"PerformanceImprovementforHealthcare:LeadingChangewithLean,SixSigmaandConstraintsManagement"(McGraw-Hill2011)andco-authoroftheupcomingbook“HighReliabilityinaHighlyUnreliableWorld:PreparingforCodeBluethroughDailyOperaFonsinHealthcare”.
• HeisaLeanSixSigmaMasterBlackBeltandaTheoryofConstraintsJonah.• Heworkedwithmorethan40clientorganizaFonstoimproveperformanceacross
awidespectrumofindustries.• HemanagedexecuFveiniFaFvestocustomizeandfacilitatesustainableprocess
improvementsresulFnginimprovedsystem-levelimpacts,primarilythroughhispassionforimprovingoperaFonsbyapplyingthefocusingmethodologyoftheTheoryofConstraintswiththeLeanSixSigmatoolstoachieveresultsbeyondtheorganizaFon’siniFalexpectaFonforimprovement.
• Heledmorethan20majorappliedresearchprojectsandwrotemorethan70journalarFclesandconferencepapers.Previously,heheldtheposiFonsofProfessorandChairmanoftheSchoolofNavalArchitectureandMarineEngineeringoftheSchoolofNavalArchitectureandMarineEngineering,andProfessorintheEngineeringManagementDepartmentattheUniversityofNewOrleans.
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MichaelHannan
• MikeHannanisanentrepreneur,best-sellingauthor,keynotespeaker,andinnovatorofindustry-leadingtechniquestodriveunprecedentedimprovementsinprojectporYolioperformance.
• HisbackgroundinProjectPorYolioManagement(PPM)startedatNASAintheearly1990ssupporFnglarge,complexiniFaFvessuchastheInternaFonalSpaceStaFon.Hehasmanagedandconsultedon$1B+projectporYolios,achievingashighas“3X”performanceimprovements.Heisalsoleadauthorofthebest-selling2014book,TheCIO’sGuidetoBreakthroughProjectPorholioPerformance.
• InhisspareFme,MikeservesasCEOofthenonprofitProjectManagementforChange—organizerofthe“PMDayofService,”thelargestPMpro-bonoeventinthehistoryofhumankind.Healsoservesonadvisoryboardsfortwocompanies—SharpFocusandPMOStrategies.
• Onthepersonalside,Mikeisa2015USAnaFonalchampiontrack&fieldathlete,andahappilymarriedfatherofthreeupstandingcollege-agemen.
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CurFsDouceIe
• CurFsDouceIeistheDirectorofStrategyandBusinessDevelopmentatSharpFocus,LLC.HewasbornandraisedinVancouver,Canada.HegraduatedwithhonorsfromtheUniversityofBriFshColumbia.Itwasdoingadegreeincommercethathefoundapassionforfinanceandeconomics.HehassinceworkedinavarietyofconsulFng,venturecapital,andentrepreneurialroles.
• HehasevaluatedanddevelopedinnovaFvebusinessconceptsandexecuFonplansforprivateequity,investmentbank,andtechnologystart-upstudiocompanies.CurFshasalsohadexperienceintheentertainmentbusinessgoingbacktoHighSchool,wherehebeganappearinginnumerousTVcommercialsandstageplays.
• HehasbeendelightedtojoinSharpFocus,wherehehasbeenabletomarryhispassionforsolvingproblemswithhispastexperienceinentertainment.