Book Notes #108: Creativity, Inc by Ed Catmull

The most complete summary, review, highlights, and key takeaways from Creativity, Inc. Chapter by chapter book notes with main ideas.

Title: Creativity, Inc: Overcoming the Unseen Forces That Stand in the Way of True Inspiration
Author: Ed Catmull, Amy Wallace
Year: 2014
Pages: 496

In creativity, there’s no universal formula or single “right way” of doing things. I really believe each of us has our own style, our unique way of thinking, and our special way of expressing who we are.

That’s why it’s so important to find a book that truly resonates with you—one that helps you discover and understand your own creative process.

For me, Creativity, Inc. by Ed Catmull does exactly that. Catmull, who co-founded Pixar, shares an inspiring behind-the-scenes look at how Pixar went from a small tech startup to one of the greatest animation studios in the world. Through real-life stories and honest reflections on both the struggles and successes, he shows us how creativity truly works.

What I love about this book is that it’s personal and relatable—it helps you recognize your own creative voice and teaches you to express it authentically.

If you’re searching for insights into your own creativity or just want inspiration from Pixar’s amazing journey, this is definitely a book I’d recommend.

As a result, I gave this book a rating of 8.5/10.

For me, a book with a note 10 is one I consider reading again every year. Among the books I rank with 10, for example, are How to Win Friends and Influence People and Factfulness.

3 Reasons to Read Creativity, Inc

Unlock True Creativity

Great ideas don’t appear out of nowhere—they emerge from the right environment. This book teaches you how to build a culture where creativity flourishes, whether in business, leadership, or everyday life. If you want to create something remarkable, it starts with the people and systems around you.

Learn from Pixar’s Journey

Pixar revolutionized animation, but it wasn’t luck—it was a deliberate approach to fostering innovation. Through behind-the-scenes stories, Ed Catmull reveals the struggles, failures, and breakthroughs that shaped the company. Seeing how Pixar overcame challenges offers valuable lessons for any industry.

Rethink Leadership and Failure

Traditional leadership often kills creativity, but Catmull shows a better way. He argues that mistakes aren’t the enemy—they’re essential for progress. If you’ve ever feared failure or struggled with managing teams, this book shifts your perspective on what it really takes to lead.

Book Overview

In Creativity, Inc., Catmull highlights something I think is essential: the power of building a culture that genuinely welcomes risk-taking and trying new things. He believes in creating a workplace where everyone feels safe and encouraged to share their ideas openly, without worrying about judgment or criticism.

What I find most refreshing about Catmull’s perspective is that he challenges the usual top-down structures we often see in companies. Instead, he promotes open communication and collaboration as key drivers of innovation and creativity.

One concept from the book that I especially love is “plussing”—a practice Pixar created to ensure feedback stays constructive and supportive. Instead of criticizing or tearing down an idea, “plussing” means improving on it by adding value, suggestions, or positive refinements.

By adopting this approach, Pixar’s teams have managed to consistently raise the bar, pushing the limits of storytelling and animation. To me, this feels like a powerful lesson not just for creative industries, but for any team aiming to innovate and grow together.

The main lesson I took from Creativity, Inc. by Ed Catmull is simple but powerful: to build great creative work, you need a culture that encourages creativity and accepts that failure is part of the journey.

Catmull explains clearly why honesty, flexibility, learning from mistakes, and adapting to change are key ingredients. He emphasizes how important it is for teams to communicate openly, share feedback kindly, and keep improving together.

One idea that sticks with me is the importance of iteration—continuously working and improving step-by-step. Creativity isn’t about perfection on the first try; it’s about constant progress.

Throughout the book, he returns often to the idea of creating a safe, supportive space for people to experiment and innovate. These insights are practical not just for animators or filmmakers, but for anyone who wants to apply Pixar’s creative success to their own projects or teams.

By sharing Pixar’s fascinating behind-the-scenes stories, Catmull shows us clearly how creativity really happens—and how we can create an environment where it thrives.

Introduction: Lost and Found

PART I: GETTING STARTED
Chapter 1: Animated
Chapter 2: Pixar Is Born
Chapter 3: A Defining Goal
Chapter 4: Establishing Pixar’s Identity

PART II: PROTECTING THE NEW
Chapter 5: Honesty and Candor
Chapter 6: Fear and Failure
Chapter 7: The Hungry Beast and the Ugly Baby
Chapter 8: Change and Randomness
Chapter 9: The Hidden

PART III: BUILDING AND SUSTAINING
Chapter 10: Broadening Our View
Chapter 11: The Unmade Future

PART IV: TESTING WHAT WE KNOW
Chapter 12: A New Challenge
Chapter 13: Notes Day

Afterword: The Steve We Knew

Starting Points: Thoughts for Managing a Creative Culture

Chapter by Chapter

Chapter 1 – Animated

Ed Catmull kicks off the book with a story about something seemingly trivial—a conference table. At Pixar, meetings took place around a long, elegant table chosen by Steve Jobs. It looked great, but it was a disaster for collaboration. The table’s design created an unintended hierarchy: the people sitting in the middle (usually executives and directors) dominated discussions, while those at the ends or sitting along the walls found it difficult to contribute. Worse yet, assigned seating cards reinforced this invisible barrier.

What’s fascinating is that for over a decade, no one questioned it. Why? Because the leaders—Catmull included—didn’t experience the problem firsthand. They were in the privileged center, where the conversation naturally flowed. The people excluded assumed it was intentional, so they didn’t speak up. It wasn’t until a meeting in a smaller room, with a square table, that Catmull realized how much better communication could be.

This seemingly minor realization leads to a bigger point: unseen structures shape behavior, often in ways we don’t realize. The team had unknowingly built an obstacle to open dialogue, contradicting one of Pixar’s core beliefs—that the best ideas can come from anywhere.

Catmull’s lesson here is powerful. Leaders must actively look for hidden barriers to creativity and engagement. It’s not enough to assume openness—you have to design for it. Even when the long table was removed, old habits lingered. Name cards still appeared, out of tradition, until one of the directors dramatically scattered them to drive home the point: hierarchies creep in unless you deliberately dismantle them.

This chapter sets up one of the book’s main themes: creativity thrives in environments that encourage communication and challenge assumptions. If you don’t design for openness, structures and habits will naturally reinforce silos.

Chapter 2 – Pixar Is Born

This chapter is where Catmull takes us back to his early career—long before Pixar existed—and the winding road that led him to co-found the company. It all starts with an unexpected job offer from a mysterious organization: The New York Institute of Technology (NYIT). A man named Alex Schure, an eccentric millionaire, wanted to revolutionize animation using computers. He had no idea how to do it, but he was willing to pour money into the problem.

Schure was a mix of visionary and madman. He didn’t fully understand technology, but he saw its potential. His dream? To create the first-ever fully computer-animated film. The challenge? The technology didn’t exist yet. But his funding allowed Catmull to build a team of brilliant engineers, including Alvy Ray Smith, who would later become a co-founder of Pixar.

What’s fascinating about this chapter is the tension between vision and execution. Schure had grand ambitions but lacked the technical expertise to make them happen. Meanwhile, Catmull and his team were developing groundbreaking computer graphics techniques, but they were still far from making a feature film. This era was all about inventing the tools from scratch—things we take for granted today, like texture mapping and rendering techniques.

Another key lesson emerges: the best leaders hire people smarter than themselves. Catmull admits he felt intimidated by Alvy Ray Smith when hiring him—he feared Smith was more qualified for the job than he was. But he took the risk, and it paid off. Over time, he realized that great teams aren’t about protecting your ego; they’re about surrounding yourself with people who elevate the work.

The chapter ends with the NYIT team making significant breakthroughs in CGI, but the dream of a fully animated film was still far away. Catmull knew he was on the right path, but he needed a new environment to take the next step.

Chapter 3 – A Defining Goal

Catmull’s journey takes a dramatic turn when George Lucas enters the picture. After making Star Wars, Lucas wanted to push the boundaries of digital effects in filmmaking. He saw potential in computer graphics and needed a team to develop the technology. That’s when Catmull and his NYIT colleagues were recruited to form Lucasfilm’s Computer Division.

This was a turning point. Lucas, unlike Schure, wasn’t just dreaming about the future—he was building it. His studio had real production challenges that required innovative solutions, from digital editing to special effects. For Catmull, this meant moving from pure research into real-world applications.

One of the most pivotal developments during this time was the creation of the Pixar Image Computer. This was an advanced rendering machine designed for high-end visual effects. It was a technological marvel, but there was a problem: it was ahead of its time. The market for it didn’t really exist yet. This is a classic example of a recurring theme in innovation—sometimes, being too early is just as problematic as being too late.

Another fascinating shift happens in Catmull’s thinking. He starts realizing that technology alone isn’t enough. Creativity is the key ingredient that makes technology matter. His team could build the most advanced graphics tools in the world, but without great storytelling, the tools were meaningless.

This chapter highlights an important leadership lesson: you have to be willing to pivot. The goal wasn’t just to develop cool tech—it was to use that tech to tell stories. This realization would eventually set the stage for Pixar’s transformation from a tech company into a storytelling powerhouse.

Chapter 4 – Establishing Pixar’s Identity

By the early 1980s, Lucasfilm’s Computer Division was struggling financially. George Lucas was going through a divorce, and the company needed to cut costs. As a result, Lucas decided to sell the division that Catmull had built. This was a nerve-wracking moment—would the dream of making a fully animated film die before it even began?

Enter Steve Jobs.

At this point, Jobs had been forced out of Apple and was looking for his next big venture. He saw potential in Catmull’s team and decided to buy them out, forming Pixar in 1986. But here’s the twist: Pixar wasn’t founded as an animation studio—it was a hardware company.

Jobs believed the future was in selling high-performance computers, specifically the Pixar Image Computer. However, just like at Lucasfilm, the market didn’t really exist. The machines were too expensive, and customers didn’t know what to do with them. This put Pixar in a financial crisis almost from the start.

Despite the struggles, something remarkable was happening in the background: Pixar was slowly becoming a storytelling company. The real value of the company wasn’t the hardware—it was the team of animators and engineers figuring out how to bring characters to life with computers.

One of the hidden gems in this chapter is how Catmull and Jobs navigated their differences. Jobs was a visionary but also notoriously difficult to work with. He had a tendency to be harsh, but he also had an unshakable belief in Pixar’s potential—even when no one else did. Over time, Jobs’ leadership evolved, and his ability to listen to creative people became one of his greatest strengths.

The chapter ends with Pixar in a tough spot financially. The company wasn’t selling enough computers, and the dream of making a feature-length animated film still seemed far away. But the seeds had been planted—Pixar was no longer just a technology company. It was on its way to becoming a creative powerhouse.

Chapter 5 – Honesty and Candor

Honesty seems like an obvious virtue—who would argue against it? Yet, in the workplace, people often hold back their true thoughts for fear of conflict, embarrassment, or upsetting others. Catmull argues that honesty is critical for creativity and problem-solving, but it needs to be framed in the right way to be effective.

The key, he suggests, is replacing the word “honesty” with “candor.” Honesty carries a moral weight—if you’re not honest, you might be considered deceitful. Candor, on the other hand, is about frank, open discussions without personal judgment. It makes giving and receiving feedback easier.

At Pixar, candor is institutionalized through one of the company’s most important traditions: The Braintrust. This is a group of passionate, intelligent, and experienced creatives who come together regularly to critique Pixar’s films in development. The premise is simple: put great minds in a room, encourage them to share their sincere thoughts, and push for excellence. This process isn’t about egos or power plays—it’s about making the best films possible.

One of the fascinating aspects of the Braintrust is that it has no authority. Directors are not required to take the advice given. This is a crucial point because it removes the fear of being forced into changes they don’t agree with. Instead, the goal is to reveal problems and help the director find their own solutions. This makes it a system of collaboration rather than control.

Pixar learned that creating a space for honest feedback is not enough—you must actively protect and nurture it. Over time, even the best environments can slip into habits where people hesitate to speak up. Fear of sounding stupid, offending someone, or facing retaliation creeps in if not actively fought against. Catmull and his leadership team make it a priority to ensure that candor remains part of Pixar’s DNA.

One of the best examples of how the Braintrust works in practice comes from Toy Story 2. The film was originally in bad shape, and drastic changes were needed. The Braintrust provided sharp, candid feedback, but it wasn’t about tearing down the work—it was about helping the creators see solutions they might have missed. This idea of moving from “trash to non-trash,” as Pixar insiders put it, is a constant in their creative process. No film starts as a masterpiece. Every project goes through cycles of failure and improvement, with honest critique guiding the way.

Perhaps the biggest takeaway from this chapter is that candor is not about being harsh or cruel—it’s about trust. When people believe that feedback is given in the spirit of making something better, they embrace it rather than resist it. A creative culture thrives not just when people are encouraged to speak openly, but when they know they will be heard without judgment.

Chapter 6 – Fear and Failure

Fear of failure is one of the biggest obstacles to creativity. We all want to succeed, but when we focus too much on avoiding failure, we become risk-averse and stop innovating. Catmull makes it clear: failure is not a necessary evil; it’s a necessary consequence of doing something new.

At Pixar, failure is not just tolerated—it’s expected. The company’s culture is built around the idea that every great film starts off as a disaster. The first versions of their movies are always messy, full of flaws, and far from the polished brilliance we see in theaters. But instead of seeing this as a problem, Pixar embraces it as part of the creative process. The key is to iterate, learn, and improve.

A powerful example of this mindset is Toy Story 3. When development started, the team had a retreat at Poet’s Loft, a quiet, scenic spot where they could brainstorm freely. The goal was to dive deep into the characters and themes. One of the biggest questions was: How do you make a third movie feel fresh and meaningful when the first two were already so beloved? The pressure was intense, but instead of letting it paralyze them, they used it to fuel their creativity.

Catmull explains that failure isn’t just about making mistakes—it’s about learning from them. He shares a story about a time when Pixar’s Ratatouille was struggling. The movie had reached a critical point where it wasn’t working, and the team had to make a tough decision: completely overhaul the story or risk a mediocre film. The decision to change direction was painful, but it ultimately led to one of Pixar’s most successful films.

One of the most striking moments in this chapter is Catmull’s observation that failure should not be a dirty word. In many organizations, failure is something to be avoided at all costs. People who make mistakes are punished, and as a result, employees become cautious, afraid to take risks, and hesitant to speak up. But at Pixar, failure is reframed as part of the path to greatness.

That doesn’t mean failure is easy. It’s frustrating, discouraging, and sometimes demoralizing. But the real danger isn’t failing—it’s failing and then stopping. The real test is whether you pick yourself up, analyze what went wrong, and try again. This mindset shift is what allows Pixar to stay creative, even after decades of success.

A major theme of this chapter is that leaders must create an environment where people feel safe to fail. If employees fear consequences for making mistakes, they will hide problems instead of fixing them. At Pixar, failure is never seen as an individual’s fault—it’s a shared responsibility. If a film is struggling, the question isn’t “Who messed up?” but “How do we fix this together?”

The chapter ends with a powerful insight: the best way to handle failure is to talk about it openly. At Pixar, mistakes are dissected, analyzed, and used as learning experiences. The goal isn’t to avoid them—it’s to fail faster, learn quicker, and keep moving forward.

Chapter 7 – The Hungry Beast and the Ugly Baby

One of the biggest challenges in any creative organization is balancing the demand for fresh ideas with the pressure to produce results. Catmull explains this through two competing forces that exist in every creative company: the Hungry Beast and the Ugly Baby.

The Hungry Beast represents the business side of creativity—the relentless machine that needs to be fed with new products, new projects, and continuous output. For a company like Pixar, the Beast is the massive infrastructure of animators, production schedules, marketing teams, and financial expectations. It’s necessary for success, but if left unchecked, it can push people toward playing it safe rather than taking creative risks.

On the other hand, the Ugly Baby represents new ideas in their earliest, most fragile stages. Every great movie, book, or piece of art starts as an Ugly Baby—awkward, unformed, and imperfect. The problem is, the Beast doesn’t like Ugly Babies. It wants polished, successful projects now. The challenge, then, is protecting new ideas long enough for them to grow into something great.

A perfect example of this dynamic is Up. The original version of the film was vastly different from what we saw in theaters. It started as a fantasy-adventure story set on a floating city. Over time, the core idea shifted, evolved, and eventually became the deeply emotional story of Carl and Ellie’s love, loss, and adventure. If Pixar had forced the team to rush a half-baked version to meet production demands, they would have killed the magic before it had a chance to develop.

Catmull argues that leaders need to create a culture where Ugly Babies are nurtured, not crushed. This means giving teams the time, space, and support they need to experiment, fail, and refine their work without the constant pressure to deliver something immediately successful.

The key takeaway from this chapter is that balancing the Beast and the Baby is an ongoing struggle. The Beast is necessary because it ensures that projects get completed and the company stays profitable. But if you only feed the Beast, creativity dies. The solution isn’t to eliminate one or the other—it’s to learn when to feed the Beast and when to protect the Baby.

Chapter 8 – Change and Randomness

Most organizations fear change. Even in creative industries, people tend to gravitate toward stability and routine. But Catmull argues that embracing change—even randomness—is essential for maintaining a truly innovative company.

He illustrates this idea with a fascinating story about the making of Toy Story 2. The film was originally planned as a direct-to-video sequel, but as the story developed, the team realized it had the potential to be something much bigger. This shift created enormous challenges—tight deadlines, high stakes, and immense pressure. But rather than resisting the chaos, Pixar leaned into it, adapting as they went. The result? One of the greatest animated films of all time.

Catmull points out that randomness and unexpected challenges often lead to breakthroughs. This is true not just in filmmaking but in any creative field. If leaders try to control every variable, they kill the possibility of serendipitous discoveries. Some of Pixar’s best moments—certain jokes, character developments, and even entire story arcs—came from unexpected accidents or mistakes.

But here’s where it gets interesting: change for the sake of change isn’t enough. Randomness is valuable only if you create an environment where people are empowered to respond to it effectively. At Pixar, this means having systems in place that allow flexibility—leaders who trust their teams, teams who feel safe experimenting, and a culture that views challenges as opportunities rather than threats.

A key moment in this chapter is Catmull’s realization that even successful companies can become too comfortable. He warns against what he calls “the illusion of stability.” A company may look like it’s thriving on the outside, but if it stops evolving, it’s already in decline. The best companies don’t just react to change; they actively seek it out.

The lesson here is clear: if you want to stay creative, you have to embrace uncertainty. The goal isn’t to eliminate randomness but to build a team and culture that thrives in it.

Chapter 9 – The Hidden

One of the most profound ideas in this book is that the biggest obstacles to success are often the ones we don’t see. Catmull argues that blind spots—those hidden problems we’re unaware of—are far more dangerous than the ones we recognize.

He shares a striking example from Pixar’s own history. At one point, the company had developed a habit of hiring “perfect” employees—people who seemed like they would fit in seamlessly with Pixar’s culture. On the surface, this made sense. Why take risks on people who might not mesh well? But over time, this approach had an unintended consequence: it created a bubble. New hires were reinforcing the existing way of thinking, rather than challenging it.

This realization led Pixar to change its hiring philosophy. Instead of just looking for the “right” people, they started looking for people who would push boundaries, question assumptions, and bring fresh perspectives.

Another example of hidden obstacles comes from a terrifying moment in Pixar’s history: the near-deletion of Toy Story 2. Due to a technical glitch, almost the entire film was accidentally erased from Pixar’s servers. If not for an animator who happened to have a backup copy at home, the movie would have been lost. This was a wake-up call—a reminder that even the most well-run organizations have vulnerabilities they aren’t aware of.

Catmull’s takeaway is that leaders need to actively look for blind spots. Problems don’t always announce themselves. Sometimes, everything seems to be going smoothly—until suddenly, it isn’t. The best way to uncover these hidden issues is to create a culture where people feel safe pointing them out. If employees are afraid to speak up about problems, those problems don’t disappear—they just get buried until it’s too late.

The chapter closes with a powerful insight: the real job of a leader isn’t just solving problems—it’s uncovering the ones you don’t even know exist. That means listening more than talking, staying humble, and always questioning whether there are weaknesses lurking beneath the surface.

Chapter 10 – Broadening Our View

Catmull opens this chapter with a story about a road trip where a couple argued over whether they had blown a tire, even as the van clearly wobbled along. The lesson? Our mental models shape how we see reality, and sometimes they blind us to what’s right in front of us. This is a core issue in management: people operate within frameworks they’ve built over time, and those frameworks can distort perception.

One of the biggest dangers in any company is the illusion of knowledge. When people work together for a long time, their shared experiences create deep connections—but also rigid viewpoints. If a team isn’t careful, these entrenched perspectives can limit creativity, slow problem-solving, and make an organization resistant to change.

The challenge is to recognize when old assumptions are getting in the way and actively seek ways to question, expand, and improve how people think.

At Pixar, they use several strategies to keep perspectives fresh:

Daily Reviews – These are sessions where animators and directors show unfinished work and discuss it together. Everyone gets comfortable with exposing incomplete ideas, making mistakes, and receiving constructive feedback in a safe environment. This openness is crucial for creative growth.

Research Trips – Rather than relying on past references or copying other movies, Pixar sends teams out into the real world. For Ratatouille, they dined in high-end French restaurants and toured kitchens. For Up, they traveled to South America to see the tepuis (flat-top mountains). The goal isn’t just accuracy—it’s discovering unexpected details that make a story feel authentic.

The Power of Constraints – People often assume that creativity thrives in unlimited freedom, but Catmull argues the opposite. Constraints force people to think smarter. For example, when working on The Incredibles, Brad Bird wanted an old man to play chess with himself, requiring intricate animation. The challenge led to major innovations in how Pixar handled human characters.

A big takeaway from this chapter is that great creativity isn’t about working harder—it’s about seeing differently. The best companies actively seek out diverse perspectives, create environments where challenges are openly discussed, and recognize when their own biases are holding them back.

Chapter 11 – The Unmade Future

This chapter is all about staying adaptable in the face of uncertainty. Catmull argues that many organizations try to lock in certainty, believing that clear rules and well-defined plans will guarantee success. But the truth is, the future is always unknown, and the best leaders learn to embrace that.

He illustrates this with a fascinating moment from Pixar’s history: when Disney acquired Pixar. Many feared that Pixar’s unique culture would be lost, swallowed up by Disney’s corporate machine. But rather than fight the change, Pixar leaned into uncertainty, using it as an opportunity to reshape Disney Animation from the inside.

One of the biggest lessons from this transition was that leaders should focus on enabling creativity, not controlling it. Many companies assume that good management means predicting problems and eliminating risk. But Catmull argues that this mindset kills innovation. Instead of trying to predict every issue, Pixar focuses on building a culture that can respond effectively when challenges arise.

Another major theme in this chapter is failure as a natural part of success. At Pixar, failure isn’t seen as a threat—it’s an expected part of the process. Their films go through massive rewrites, abandoned storylines, and unexpected challenges. The difference is, they’ve built a system that allows failure to be a tool for improvement rather than a cause for panic.

A key example of this is the development of Toy Story 3. Originally, the sequel was being developed by a different Disney team outside of Pixar. But the early work wasn’t up to Pixar’s standards, and when Pixar took over, they had to rebuild much of the film from scratch. The easy option would have been to salvage the existing work to save time and money, but instead, they chose to start fresh—a painful but necessary decision to maintain quality.

The chapter closes with a strong argument for continuous learning. Even as a successful company, Pixar never assumes they have it all figured out. They actively seek feedback, analyze past failures, and challenge their own assumptions.

The core message? You can’t control the future, but you can build a team that’s ready for it. Instead of chasing certainty, great organizations develop the ability to navigate uncertainty.

Chapter 12 – A New Challenge

This chapter starts with a bombshell: Steve Jobs tells Ed Catmull and John Lasseter that he is thinking about selling Pixar to Disney. Given Pixar’s history of independence and creative control, this was a shocking revelation.

Just eighteen months earlier, Pixar had clashed publicly with Disney’s then-CEO Michael Eisner, and now Jobs was suggesting they merge? At first, it seemed unthinkable.

But Catmull explains that Jobs had a long-term view. While the previous leadership at Disney had been challenging, the arrival of Bob Iger as CEO changed everything. Unlike Eisner, Iger valued Pixar’s innovation and wanted a real partnership, not just a financial deal. He had already won Jobs’ trust by striking a deal to distribute Disney’s TV content through iTunes, proving he was a man of action who understood the future of media.

Steve’s main argument for the merger was that Pixar needed a stronger partner in distribution and marketing. He used a powerful analogy: “Right now, Pixar is a yacht. But if we merge with Disney, we’ll be on a massive cruise ship. We’ll still hit rough waters, but we won’t feel the waves as much.” However, he left the final decision to Catmull and Lasseter, insisting that they meet Bob Iger first.

What follows is a deep dive into the delicate process of merging two very different companies. Pixar had built a culture of openness and innovation, whereas Disney Animation had lost its creative edge over the years. There was a real concern that Disney’s bureaucratic ways would crush the magic of Pixar. To prevent this, Jobs and Iger structured the deal so that Pixar would retain creative control. Catmull and Lasseter would not only continue leading Pixar but also take charge of Disney Animation, ensuring its revival.

To reassure Pixar employees, they created a five-year “social contract,” a document outlining what would not change. This included maintaining Pixar’s creative freedom, keeping the company’s unique traditions (like no executive parking spots), and ensuring a collaborative work environment.

At the heart of this chapter is a lesson about trust and leadership. Steve Jobs, despite his reputation as a fierce businessman, deeply cared about Pixar and its people. When the deal was finally signed, he embraced Catmull and Lasseter and cried tears of relief and pride. He had successfully secured Pixar’s future, not just financially but creatively.

Chapter 13 – Notes Day

With the merger complete, Catmull and Lasseter now faced a new and daunting challenge: reviving Disney Animation. While Pixar was thriving, Disney’s animation division had been struggling for years. The creative spirit that once defined the studio had been buried under layers of management and risk-avoidance culture.

One of the first things Catmull noticed was the fear within Disney Animation. Employees were hesitant to express opinions, and the office itself reflected this rigid atmosphere—sterile, overly structured, and lacking the personal, playful touch that defined Pixar’s workspace.

Unlike Pixar, where animators decorated their desks however they wanted, Disney’s workspaces were cold and impersonal.

Why? Because someone had ordered employees to “clean up” before Catmull’s arrival, to make a good first impression. This revealed a deep-rooted problem: employees were more focused on following orders than fostering creativity.

One of the first major changes Catmull and Lasseter made was removing Disney’s top-down approach to creative feedback. Previously, directors received three separate lists of required changes from different executives—none of whom had ever made an animated film themselves. Worse, these notes were given in the form of checklists, forcing filmmakers to comply instead of thinking critically about their story. Catmull abolished this practice immediately and introduced a Braintrust-style feedback system, similar to what had worked so well at Pixar.

However, the transition wasn’t easy. At their first major feedback session, the Disney team was too afraid to speak honestly. John Lasseter had opened the meeting with positive remarks about a film in development (American Dog), and instead of constructive criticism, everyone just nodded and agreed. Afterward, a Disney director admitted to Catmull that many people in the room had serious concerns about the movie but were afraid to contradict Lasseter.

This was a wake-up call. Pixar’s success wasn’t just about having a Braintrust—it was about building a culture where people actually felt safe enough to speak their minds. So, Catmull and Lasseter set out to rebuild Disney’s creative confidence. They encouraged open debate, made leadership more accessible, and gave directors more freedom to explore ideas.

One of the biggest lessons in this chapter is that organizational change takes time. The fear and bureaucracy at Disney Animation had developed over decades, and it would take years to rebuild a culture of creativity. But, as Catmull explains, it starts with leadership. Instead of dictating solutions, great leaders create environments where teams feel empowered to solve problems themselves.

Building a Creative Culture

The right team beats the right idea: A mediocre team can ruin a great idea, while a great team can turn even a weak idea into something exceptional.

Hire for potential, not just qualifications: What someone will be capable of tomorrow matters more than what they can do today.

Surround yourself with people smarter than you: Hiring the best may seem intimidating, but it’s essential for growth.

Create an environment where everyone feels free to contribute: Inspiration can come from anywhere. Ignoring good ideas based on their source is a mistake.

Being open to ideas isn’t enough—actively extract and encourage contributions: Engaging collective brainpower is an ongoing process.

Identify why people aren’t honest in the workplace: Fear of speaking up has causes—your job is to understand and address them.

If someone disagrees with you, there’s a reason: Instead of reacting defensively, seek to understand the logic behind their perspective.

Eradicate fear within the organization: Discover its root cause, understand it, and work to eliminate it.

Being overly convinced that you’re right kills alternative viewpoints: Certainty can be more dangerous than being wrong.

Truth should be in meetings, not in hallway whispers: If employees only speak the truth privately, your culture has a problem.

Lead without ego: If being surprised by a problem in a meeting makes you feel disrespected, grow up.

Communicate problems with transparency: Trying to downplay difficulties makes you seem dishonest or disconnected.

Don’t trust first conclusions blindly: Initial lessons from success or failure are often wrong.

Avoiding mistakes can cost more than fixing them: Errors are part of progress; blocking them can be even more expensive.

Change and uncertainty are inevitable: Instead of resisting, develop adaptability and resilience.

Managers should make it safe to take risks: Mistakes aren’t the problem; they indicate that something new is being tried.

Failure isn’t negative—it’s a natural step in innovation: A mistake is only a failure if no learning comes from it.

Trust means trusting even when things go wrong: It’s not about preventing errors but believing in your team’s ability to recover from them.

Give autonomy to those executing plans: The people responsible for a task should be empowered to make decisions when things go off track.

Trying to avoid mistakes creates a false goal: Measure people by their ability to solve problems, not by their ability to avoid failure.

Share work in progress instead of waiting for perfection: Frequent feedback leads to better outcomes.

Communication shouldn’t follow organizational hierarchy: Everyone should be able to talk to everyone.

Avoid excessive rules: They may make life easier for managers but harm the 95% who already do things right.

Constraints can fuel creativity: Great work often comes from difficult or seemingly unsustainable circumstances.

Tackling tough problems forces us to think differently: Intellectual discomfort is necessary for innovation.

Organizations resist change more than individuals: Don’t assume agreement will lead to action—moving a group requires energy.

Departments should have different agendas but interdependent goals: If one wins while others lose, the whole company suffers.

Protect new ideas: They need time to grow before being judged.

Crises test and reinforce company culture: Solving problems together strengthens values and engagement.

Excellence should be recognized by others, not self-proclaimed: Be great before calling yourself great.

Don’t mistake stability for balance: Healthy companies evolve rather than clinging to a false sense of security.

Process is not the goal: Improving processes is essential, but the ultimate goal is an excellent product.

This book is recommended for those who are inspired to turn ideas into revolutionary realities, as well as visionaries and inventors. In order to create an interesting and educational story, Catmull skillfully blends the complexities of animation with priceless leadership lessons.

Creativity, Inc. is a unique and fascinating perspective for business enthusiasts, artists, or anyone who is passionate about magic storytelling. It is positioned as a top choice for individuals who are ready to focus their creative efforts on their own interests.

4 Key Ideas From Creativity, Inc

The Power of Candor

Honest, open conversations lead to better work. Creative teams need a space where feedback flows freely without fear. The Braintrust at Pixar works because it challenges ideas, not people.

Embrace the Ugly Baby

Great ideas start as messy, awkward, and unpolished. The challenge is protecting them from early criticism while they evolve. The best creative leaders nurture ideas until they’re strong enough to stand on their own.

Fear Kills Innovation

When people are afraid to speak up, creativity dies. Fear of failure, rejection, or hierarchy blocks progress. Leaders must actively create environments where risk-taking is safe and encouraged.

Change is Constant

No system or company can succeed by staying the same. Even Pixar had to reinvent itself multiple times. The best organizations don’t fight change—they embrace uncertainty and adapt.

6 Main Lessons From Creativity, Inc

Build the Right Team

A great team will fix a bad idea, but a bad team will ruin a great one. Focus on hiring people who push boundaries and improve those around them. Talent alone isn’t enough—mindset and collaboration matter more.

Encourage Honest Conversations

If the real truth is being discussed in hallways instead of meetings, you have a problem. Create a culture where people feel safe to challenge, critique, and improve ideas openly.

Failure is Fuel for Growth

Trying to avoid mistakes only leads to stagnation. Failure isn’t the opposite of success—it’s part of the process. Learn from setbacks, iterate, and keep moving forward.

Process is Important, But It’s Not the Goal

Refining how you work makes things smoother, but don’t mistake efficiency for impact. The real goal is to create something excellent, not just optimize the system.

Empower People to Act

Decisions shouldn’t be stuck in approval loops. Give people authority to fix problems when they see them, rather than waiting for permission. The best leaders enable action, not just oversight.

Stay Curious and Keep Learning

Even the most successful companies and individuals must keep evolving. Challenge assumptions, seek out blind spots, and never assume you have everything figured out. Adaptability is what keeps creativity alive.

My Book Highlights & Quotes

As leaders, we should think of ourselves as teachers and try to create companies in which teaching is seen as a valued way to contribute to the success of the whole.

Give them responsibility, let the mistakes happen and let people fix them. If there is fear, there is a reason – our job is to find the reason and to remedy it. Management’s job is not to prevent risk but to build the ability to recover.

Find, develop, and support good people, and they in turn will find, develop, and own good ideas.

If you give a good idea to a mediocre team, they will screw it up. If you give a mediocre idea to a brilliant team, they will either fix it or throw it away and come up with something better.

Conclusion

In short, Creativity, Inc. by Ed Catmull goes beyond being just another business book—it’s more like an inspiring conversation about creativity, leadership, and building a thriving team.

What I love most is how Catmull uses real stories, practical insights, and clear leadership advice drawn directly from Pixar’s journey. He doesn’t just tell us how Pixar became successful; he shares honest lessons that we can apply anywhere, no matter what kind of work we do.

For me, the book is a great reminder that creativity is about taking risks, openly communicating, learning from mistakes, and continuously improving. It gives clear guidance on how to build a culture where innovation isn’t just a one-time thing, but a way of life.

If you’re leading a team, working creatively, or just want to learn how to create an environment where great ideas can grow, Creativity, Inc. is a book I’d truly recommend.

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