Transcript for 8 Secrets of Pixar's Success
I'm real bands we like to try and help you understand what it takes to create a successful business because we know -- so many -- for viewers out there watching. What are the keys while this month our friends at fast company are taking a rare look inside Pixar which is part of our family here at Disney. To see how even in a creative culture like the movies you can create an environment that focuses on making money because at the end of today that's really what it takes to continue the business. The issue out on Monday looks at Pixar president Ed capital and his new book. -- -- Fast company's executive editor no -- -- is here with a sneak peek at Nellis so nice to have you with us again we love having fast company on our show here real this so. What common themes are you finding here. So one of the themes that we got out and topped wall and his new book and we asked him for leadership lessons and and how to bring creativity in your business and have a successful creative business and one of the interesting things that everybody -- creative business deals went. Is how to balance art and commerce. And his answer was somewhat surprising because. Havel who you know he's done fourteen number one hits that Pixar and he was. -- Steve Jobs called him wise and Smart and Steve Jobs is not someone who was hearing with his right for you get -- lighting and heating about a lot of praise. So so what he says with the present because he said. Basically if you took a movie like wall he said. I'm gonna make a movie about a robot that collects trash. Who would say yes to that we're right under a minute movie about Iraq cooks well what it's like -- ailing right that's a great -- -- a cooking rat. So his point is -- -- and rest sometimes you have to believe in your creative. Side and give it time to develop into something that is going to be a hit and indeed you can -- with those two movies feud started I noticed that no I don't watch that movie but they turned into great movies that made -- -- That's so much easier said than done because in practice a lot of people will make an argument -- like took a risk because you have to take risks and business. How do you separate and distinguish the logical Smart race that has -- potential return vs the illogical one that doesn't. Yes I mean it's very hard to -- and I think part of what his answer is is that you have to create systems within -- organization that allow you to. Find out when find out how to make things batters that he straight -- said let's look at some point every Pixar movie Sox. Actually you know he got that he's -- and so what he's got at Pixar is -- thing he does this thing called a brain trust and a brain trust is when he gets all of his directors and craters together. And they're really candid with each other about what's wrong with the movies that they're making which is so important that we which comes back to this question of the people. In building that type of strategy -- And part of the reason he's been able to keep that talent and you -- people at Pixar stay at a long time is because of these these brain trust meetings where they got to get together and people would tell them look this is what's wrong with your movie right now here's how to make it better and indeed they would come back in the thick. My movie was better because of this or sometimes they would they would take movies they -- think this movie is just not -- -- it shouldn't be done. And that would lead to a new idea out of that -- -- -- good idea out of that became some other movie got made. That they didn't think was going to be the original movie and that brain trust idea is actually something that got pulled over to Disney and is one of the reasons that frozen has been so successful. Is because they use the brain trust method actually -- is -- That. To be a leader in an organization like that you have to be willing to listen to the brain trust but you have that you have to determine it. When you're gonna take their advice and when you're going to pass on their advice how did he do that. So a lot of what what -- talks about in his new book and in the magazine this month is. How what it means to have -- in the organization how to creatively how to tell somebody that they're doing something wrong without being mean about it. And how are also be honest and he actually says the bigger problem is not is not. Necessarily being critical in the wrong -- but also just not really being honest he thinks people are not often enough. Honest with each other with what's wrong in what's right. And since he says he really need to create a space where people feel comfortable and feel okay he really -- in the magazine you can read this how he outlined. How to set up a brain trust in your own organization that's -- Put people in -- place where they feel -- criticizing each other and not that they're not gonna fight afterwards -- feel you know like animosity afterwards what is -- secrets to leading his success he's got a bunch of great and so so -- this secrets are you let them -- -- was how to balance -- commerce right one is that you -- one that we have is why things will always go wrong even picks -- -- talks about that you have to be prepared things -- not gonna be right this is where he talked about. The movies at some point or ugly babies he talks about them the right. The show so why real risk means real failure not being afraid of failure that's that idea that sometimes you just have to say this wasn't working we can't do what we're not gonna do -- he talks a couple of times without actually movies that they didn't make which sounded great actually and he says they just never came together what that was like about emotions inside somebody's brain. It sounded really interesting. Another that I really like is your best tool is a genius for a disaster and not one is about the fact that. But even he needed genius and there aren't that many geniuses out there let's be honest and he senses like you -- -- -- organization you're really lucky and that's great and you need that. But if you don't have that he needed disaster disasters are these failures and they bring your organization together you have to learn the people in your team have to learn. That it's okay to fail and -- you're gonna figure it out. And also one of the things that people don't realize that Toy Story -- for a long time was a complete disaster and they had almost scrapped everything they had done at a certain point 12 sports very true and start over and are the result was it was -- -- was hit movie and they wanted to make four story three rate and it did really well but that that idea that your best tool sometimes of the disaster is really important. I think that's such a good point and especially in a world where in many companies because of the financial crisis because of the fact that so many companies have had to cut costs. There is this fear of making mistakes. Which ultimately I think is one of the biggest things that hinders people from getting innovation because if you're afraid of making mistakes you're not gonna try anything new you're not -- -- Yes and fast governor we often point out that failure is the key ingredient innovation you have to learn to fail and learn quickly it to -- quickly. And learn from it and that's one of the things that -- did so well that made him such a successful company over the years. Fast company knoller overshot a really interesting read about picks are the secrets inside of the company so much more than an article that what we just discussed three.
This transcript has been automatically generated and may not be 100% accurate.