There's an argument to be made for the so-called "Hollywood model" of conducting business--and no, that doesn't mean rolling out the red carpet at your office.
The Hollywood model is when managers focus on a single project, and then hone the skills of select workers for a short period of time. And while it's true that your product might not be as glitzy as a feature-length film, consider that production teams tend to meet goals (and make profits): The movie industry brought in $10.35 billion in ticket revenue in 2014 alone.
Writing for the New York Times Magazine, Adam Davidson highlights some of the major boons of this method. He also notes that the Hollywood model is being successfully replicated across different sectors, for instance in designing apps, starting restaurants, building bridges, and more.
Here's why your business--and your financials especially--should take some cues from the silver screen:
1. The Hollywood model is easily adaptable.
One of the most attractive aspects of this model is its adaptability. If something isn't working, or if you decide to move in a different direction with your product, you can assemble new teams at relatively little expense. That's much harder to do if you've already spent tons of capital on long-term projects and long-term hires.
2. You can constantly reassess where to invest your money.
Davidson adds that the film industry is always taking creative hints from the box office, then applying them to later projects: "Every weekend's box-office results provide new information about which skills in their field are valuable," he writes.
From the business owner's perspective, similarly, working on shorter-term projects can allow you to re-evaluate where to spend your money once you've executed on your initial goals. You can then assemble the best teams moving forward, based on what the market dictates as making the most sense for your company.
3. It keeps workers happy--which can translate into profit.
Ken Blanchard, a seasoned management professional and author of The One Minute Manager and The New One Minute Manager, perhaps said it best in a recent interview with Inc.: "Money is not a reason to be in business. It's a byproduct. The profit is the applause you get for creating a motivating environment for your people."
Production teams are nothing if not motivated, given that they're often working under an intense time crunch. Davidson also argues that the Hollywood model is relatively good to its employees: They make reasonable wages (often more than their counterparts in related industries,) and their skills are high in demand. That gives employees the upper hand when it comes to negotiating their terms.
If your product is going to be economically viable, you need the right team putting all of its energy behind it: "Profits need to come from that extra something that only your company can give, something for which customers are willing to pay a premium," writes Davidson.