Shangai Thang

9-410-018
REV: NOVEMBER 4, 2010

ROY Y. J. CHUA ROBERT G. ECCLES

Managing Creativity at Shanghai Tang
“Designers are not the same as business people. They are more emotional and sensitive. They sometimes lose it, they go crazy; they are creative, they need to let it out.” — Raphael Le Masne, Executive Chairman, Shanghai Tang

“I’ve spent months creating those designs!” the flusheddesigner had said, “I carried the season last year, and even if they,” he gesticulated toward the meeting room, “don’t think so, this is some of my best work yet!” Raphael Le Masne, the executive chairman of Shanghai Tang, replayed the events from earlier that day in his head as his taxi made its way through downtown Shanghai on a crisp 2008 fall evening. Le Masne had not been sure what to say to calmhis designer. It had been the fourth hour of what had become a grueling meeting with Shanghai Tang’s managers, designers, and buyers over the sample designs for the company’s next major collection. The meeting had started tense and soon escalated to a heated and emotional debate. One of his lead fashion designers was particularly upset that his collection was not well received by the retailmanagers—they were either placing very few orders or not placing any orders at all for his designs. The designer had invested months creating what he thought was a very innovative set of designs. However, the retail people were not persuaded, arguing that many of the designs in the collection would not sell. “If we are constantly told to do only best sellers, it kills creativity,” another designerdefended. “If we don’t ring the cash register, nobody gets paid,” retorted a manager. At that point, Le Masne had called for a break in the meeting. Several of the designers walked out together while a small group of managers and buyers exchanged glances before engaging in small talk. Le Masne immediately intercepted his most upset designer to try to defuse the tension. These meetings were nevereasy, Le Masne reflected from the backseat of the taxi, but today the conflict seemed particularly intense. Making matters more acute, Le Masne was preoccupied by
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Professor Roy Y. J. Chua and Senior Lecturer Robert G. Eccles prepared this case. HBS cases are developed solely as thebasis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2009, 2010 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go towww.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.

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Managing Creativity at Shanghai Tang

yesterday’s news that his creative director of seven years, Joanne Ooi—the person who had helped him turn around this Chinese-themed high-end fashion and lifestyle emporium—was leavingShanghai Tang. Trained as a corporate lawyer, Ooi had been in the fashion industry for more than 10 years and was now leaving Shanghai Tang to join a biochemical company. Although conflicts between designers and business people were common during her tenure at Shanghai Tang, Le Masne had always relied on being able to discuss with Ooi strategies for balancing artistic creativity and business senseat Shanghai Tang. Looking out the window of his taxi, Le Masne saw the Bund, the colonial-era vestige of stunning Western architecture in China’s most cosmopolitan city and an inspiration for Shanghai Tang’s aesthetic, unfolding in front of him. As he took in the monumental sights all around him, he pondered the perennial challenges of balancing the artistic aspirations of his designers and the...