In the difficult year after Toy Story’s debut, I came to realize that trying to solve this mystery would be my next challenge. My desire to protect Pixar from the forces that ruin so many businesses gave me renewed focus. I began to see my role as a leader more clearly. I would devote myself to learning how to build not just a successful company but a sustainable creative culture. As I turned my attention from solving technical problems to engaging with the philosophy of sound management, I was excited once again - and sure that our second act could be as exhilarating as our first.

The first principle was “Story Is King,” by which we meant that we would let nothing - not
the technology, not the merchandising possibilities - get in the way of our story. We took
pride in the fact that reviewers talked mainly about the way Toy Story made them feel and not about the computer wizardry that enabled us to get it up on the screen. We believed that this was the direct result of our always keeping story as our guiding light.

The other principle we depended on was “Trust the Process.” We liked this one because it was so reassuring: While there are inevitably difficulties and missteps in any complex creative endeavor, you can trust that “the process” will carry you through. In some ways, this was no different than any optimistic aphorism (“Hang in there, baby!”), except that because our process was so different from other movie studios, we felt that it had real power. Pixar was a place that gave artists running room, that gave directors control, that trusted its people to solve problems. I have always been wary of maxims or rules because, all too often, they turn out to be empty platitudes that impede thoughtfulness, but these two principles actually seemed to help our people.

And yet, candor could not be more crucial to our creative process. Why? Because early on, all of our movies suck. That’s a blunt assessment, I know, but I make a point of repeating it often, and I choose that phrasing because saying it in a softer way fails to convey how bad the first versions of our films really are. I’m not trying to be modest or self-effacing by saying this. Pixar films are not good at first, and our job is to make them so—to go, as I say, “from suck to not-suck.” This idea—that all the movies we now think of as brilliant were, at one time, terrible—is a hard concept for many to grasp. But think about how easy it would be for a movie about talking toys to feel derivative, sappy, or overtly merchandise-driven. Think about how off-putting a movie about rats preparing food could be, or how risky it must’ve seemed to start WALL-E with 39 dialogue-free minutes. We dare to attempt these stories, but we don’t get them right on the first pass. And this is as it should be. Creativity has to start somewhere, and we are true believers in the power of bracing, candid feedback and the iterative process—reworking, reworking, and reworking again, until a flawed story finds its throughline or a hollow character finds its soul.

The process of developing a story is one of discovery,” Pete says. “However, there’s always a guiding principle that leads you as you go down the various roads. In Monsters, Inc., all of our very different plots shared a common feeling - the bittersweet goodbye you feel once a problem” - in this case, Sulley’s quest to return Boo to her own world - “has been solved. You suffer through it as you struggle to solve it, but by the end you’ve developed a sort of fondness for it, and you miss it when it is gone. I knew I wanted to express that, and I was eventually able to get it in the film.”

While the process was difficult and time consuming, Pete and his crew never believed that a failed approach meant that they had failed. Instead, they saw that each idea led them a bit closer to finding the better option. And that allowed them to come to work each day engaged and excited, even while in the midst of confusion. This is key: When experimentation is seen as necessary and productive, not as a frustrating waste of time, people will enjoy their work - even when it is confounding them.

Instead I reminded myself of what I often tell leaders throughout Netflix:

When one of your people does something dumb don’t blame them. Instead ask yourself what context you failed to set. Are you articulate and inspiring enough in expressing your goals and strategy? Have you clearly explained all the assumptions and risks that will help your team to make good decisions? Are you and your employees highly aligned on vision and objectives?