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.

As John and his creative team went to work, I considered the stark reality we faced. We were asking our people to pull off the cinematic equivalent of a heart transplant. We had less than a year before Toy Story 2 was due in theaters. Getting it there in time would drive our workforce to the breaking point, and there would surely be a price to pay for that. But I also believed that the alternative - acceptance of mediocrity - would have consequences that were far more destructive.

This is trickier than you might think. As a group, Pixar’s people take pride in their work.
They’re ambitious high achievers who want to do their best and then some. On the management side, we want the next product to be better than the last, while at the same time we need to meet budget and schedule requirements. Inspiring managers push their people to excel. That’s what we expect them to do. But when the powerful forces that create this positive dynamic turn negative, they are hard to counteract. It’s a fine line. On any film, there are inevitable periods of extreme crunch and stress, some of which can be healthy if they don’t go on too long. But the ambitions of both managers and their teams can exacerbate each other and become unhealthy. It is a leader’s responsibility to see this, and guide it, not exploit it.

If we are in this for the long haul, we have to take care of ourselves, support healthy habits,
and encourage our employees to have fulfilling lives outside of work. Moreover, everyone’s
home lives change as they - and their children, if they have them - age. This means creating a culture in which taking maternity or paternity leave is not seen as an impediment to career advancement. That may not sound revolutionary, but at many companies, parents know that taking that leave comes at a cost; a truly committed employee, they are wordlessly told, wants to be at work. That’s not true at Pixar.

When I look back on Pixar’s history, I have to recognize that so many of the good things that happened could easily have gone a different way. Steve could have sold us - he tried more than once. Toy Story 2 could have been deleted for good, bringing the company down. For years, Disney was trying to steal John back, and they could have succeeded. I am distinctly aware that Disney Animation’s success in the 1990s gave Pixar its chance with Toy Story and also that their later struggles enabled us to join together and ultimately merge.

In short, Pixar had the kind of diverse problems that any successful company has. But chief among them, to my mind, was that more and more people had begun to feel that it was either not safe or not welcome to offer differing ideas. This hesitancy was difficult to see at first, but when we paid attention, we saw many clues that people were holding back. To me, that meant one thing: We, as leaders, were allowing some faulty ideas to take hold, and that was bad for our culture.

There is nothing like a crisis, though, to bring what ails a company to the surface. And now, we had three crises brewing at once: (1) Our production costs were rising and we needed to rein them in; (2) External economic forces were putting pressure on our business; and (3) One of the central tenets of our culture - good ideas can come from anywhere, so everyone must feel empowered to speak up - was faltering. Too many of our people - and to my mind, “too many” is the same as “any” - were self-censoring. That needed to change.