Pixar

The Balanced Scorecard Approach

Toy Story was nominated by the Academy Awards for best picture and
best animated feature and grossed more than $1 billion worldwide.

Claimed 4 Oscars for best animation since 2001.

Pixar is a tightknit company of long-term collaborators who stick together, learn

from one another, and strive to improve with every production and has built a
reputation for long-term affiliation and contributions throughout the entire
organization (Taylor, 2008, para. 6).

Competes against Dreamworks (creator of Antz) and Sony (creator of Cloudy with a
Chance of Meatballs).

Disneys talent for animation is what sparked the creation of Pixar by Edwin E.
Catmull in 1975.

Pixar issues and concerns:

The 2006 acquisition by the Walt Disney Company (creator of Wreck-It Ralph and
Tangled) brought with it concerns as to whether or not Pixar could continue to
produce record-breaking animated films.

Can Pixar increase production without compromising the high standards the
company was founded on.

Is Pixar capable of continuing to make good decisions their customers and

shareholders have come to expect?

Can they continue to make creative films and expand production capacity?

Balanced Scorecard

Customer Perspective

What needs must Pixar meet and serve?

Pixar creates value by ensuring fun for the whole family.

Adults can look forward to going to see a kids movie (with or without the kids) bringing out
the kid in everyone!

Toy Story I, II, III

Its a Bugs Life

Monsters Inc.

Finding Nemo

The Incredibles

Takes advantage of new technology and social media sites (Facebook, Twitter, and Instagram) in an
effort to keep track of the publics likes and dislikes.

Continues to perform to customer standards by providing animated films with captivating

storylines.

Internal Business Perspective

Core competencies surround a unique approach to making exceptional

films and the fact that quality is more important than quality (Dess,
Eisener, Lumpkin, 2012, p. C218).

Preserves its lengthy process of crafting films to ensure consistency

and continue producing high quality and creative films.

Addition of new division to meet the growing demands and faster

production pace in an effort to generate more ideas for new films.

Internal Business Perspective

Achieved First-mover Advantage against its competitors:

Pixar was the first to move into the digital animation movie technology
and used its know-how to gain access to Disneys brand name reputation in
animation, storytelling, merchandising might, and its distribution channels
through an alliance that was beneficial to both firms (Afuah, n.d., p.
151).

First to pursue digital animation technology: Pixar had a chance to

cooperate with Disney and take advantage of its storytelling capabilities
and distribution channels to complement its digital animation technology
so as to create the likes of Toy Story and Finding Nemo (Afuah, n.d., p.
113).

Innovation and Learning Perspective

Inspiring and motivating people creatively is what keeps Pixar at an advantage

competively.

Human Capital:

Individual judgment is enhanced by organizational judgment (Davenport,

2010).

Pixars management has a high degree of autonomy. At the same time,

feedback from all levels is taken very seriously!

Talent consists of highly creative: Hollywood production directors, writers,

artsy animation experts, engineers, storytellers, and technologists.

Pixar has established itself as an organization dedicated to learning:

Pixar University: 110 different courses available

A complete filmmaking curriculum, classes on painting, drawing,

sculpting and creative writing and every employee is encouraged to
dedicate up to 4 hours a week on utilizing these courses(Taylor, 2008).

Innovation and Learning Perspective

In its drive to achieve competitive advantage, Pixar takes advantage

of its Information Capital:

Consistently develops groundbreaking software systems:

Marionette, Ringmaster, and RenderMan, and a laser recording

system for filmPixarvision (Afuah, n.d., p.395).

Development of new animation software, called Luxo, to allow for

a fewer number of animators per movie.

Using computers to produce a unique style of creative moviemaking.

Technological achievements help develop creativity.

Innovation and Learning Perspective

Organizational Capital:

Free-wheeling entrepreneurial culture sets an environment in

which creativity is key.

Creative Workspace & Work Environments: office cubicles

transformed into tiki huts, circus tents, and cardboard castles.

Encourage collaboration while reducing collective burnout

Doctors

and Masseuse are available weekly or as needed.

Innovation and Learning Perspective

Pixar

continues to share internal knowledge in an effort

to continuously satisfy the growing needs of its
customers and shareholders.

Another

key to Pixars success is its commitment to

challenging the status quo and fostering creativity
throughout its organization!

Financial Perspective

Profitability

Although animated films cost 30% less than traditional films, they take
considerable time to develop.

Pixar understands its the storyline that is the driving force behind
successful movies.

The Company Motto is Where story is King

Operating Efficiency

Increasing production could solve this, however the number of employees

will also double creating additional concerns as to quality, production
pace and the consistency of operations.

Financial Perspective
Revenue

In 1995, Toy Story grossed the

third highest animated film of
all time, earning $362 million
in worldwide box-office
revenues; Shares of stock rose
from $22 to $33!

References

Afuah, A. (n.d.). Strategic Innovation: New game strategies for competitive

advantage. Retrieved from http://
psbm.org/Ebooks/Strategic%20Innovation%20New%20Game%20Strategies%20f
or%20Competitive%20Advantage.pdf

Davenport, T. (2010). Five ways Pixar makes important decisions. Havard

Business Review website. Retrieved from https://
hbr.org/2010/07/how-to-make-good-decisions-les

Dess, G., Eisner, A., & Lumpkin, G.T. (2012). Strategic Management (6th ed.)
McGraw-Hill, New York, New York ISBN 13 9780078029318

Taylor, B. (2008). Pixars blockbuster secrets. Harvard Business Review

website. Referenced from https://
hbr.org/2008/07/pixars-blockbuster-secrets

Instructors Comments

Here is my summation of the problems/challenge at Pixar: The challenge is to

continue to create new films which depends on creative, highly motivated
employees, leading-edge technology, and world-class leadership. Dr. Rodgers