Northouse, Leadership 9e
SAGE Publications, 2021
Case 7.3: Pixar: Creating Space for
Success
Case Synopsis and Analysis
Pixar is a company that needs no introduction. A cadre of creative individuals generate a
shared idea of visual storytelling like the world had never before seen. The organization
strives for creative tensions to lead to new places. Any level of the organization has the
wherewithal to re-imagine other portions of the company through fluid, ongoing
conversations. While this may appear to be counterintuitive to organizational success, it
allows for creativity to flow unencumbered from all levels of the organization. Ongoing daily
updates, known as “dailies” allow for feedback to flow back and forth. Pixar built space with
a central atrium along with a cafeteria, meeting rooms, restrooms, and other communal
spaces. By virtue of the architecture, employees consistently traverse the area and connect
while building community.
The research team outlined three key elements to organizational synergy: creative abrasion
(use of debate to find a better way), creative agility (testing and revising ideas), and creative
resolution (integrated decisions). Pixar works to achieve innovation and does so through
constant collaboration and effective communication.
Learning Objectives:
• Students will understand the role that communication plays in the LMX Theory
Answers to Questions in the Text:
1. As noted in the chapter, the early research of LMX focused on the concepts of in-
groups and out-groups.
a. How do you think this applies to Pixar’s approach to leading the large teams
required for the making of its feature films?
There is a synergy at Pixar where employees tend to rely on each other more
and minds were needed to create this film.
b. From what you have gleaned about Pixar, do you feel that team members have
a strong sense of a division between in-groups and out-groups? Why or why
not?
Northouse, Leadership 9e
SAGE Publications, 2021
c. Do you think that most members of Pixar’s teams feel they are part of the in–
group?
Based on the contents of the case, it appears that this is a fine example of
d. Do you think the “creative abrasion” discussed in the case is something that is
a product of an in-group mentality? Why or why not?
e. What about those who might perceive themselves in the out-group—would
creative abrasion be possible or productive? Why or why not?
2. Later LMX studies focused on the leader–member exchanges. Given what you know
about the work environment, how would you rank the quality of the leader–member
exchange at Pixar? Why?
3. Do you think the individual Pixar team members feel a sense of empowerment?
a. How might the idea of creative agility discussed in the case fit into a feeling
of empowerment by employees?
b. What about the idea of creative resolution?
4. In looking at the phases of leadership development discussed in the text, in what
phase do you think a highly innovative company, like Pixar, would fall? Why?
5. Does Pixar’s culture allow for the stages of affective processes in LMX
development—role taking, role making, and role routinization—to occur? Explain
your answer.
The first level of role taking, as defined in the text, is key to the successful
Potential Teaching Approaches:
Below is a way to structure a class, based on the LMX Theory and Case Study 7.3:
• Lecture on the LMX Theory.
Exercises for This Case Study:
1. In small groups, students should use YouTube (or a similar source) and locate Pixar
2. LMX revolves around effective communication with quality interactions being the
key. Provide students with a communication competency scale (find one in advance –
potentially one online) and ask students to complete the scale. Based on their results,
Northouse, Leadership 9e
SAGE Publications, 2021
have them discuss their strengths and weaknesses. Also, based on their results ask
them to imagine if they could fit in with the Pixar culture? Would they be able to take
3. In a short essay (200-250 words), students should write down a plan for how their