Why creativity and imagination will save the world

At the Breakthrough Sessions 2024, George Hedon, Founder of Pause Fest & Awards, hosted an in-depth conversation with Rose Herceg, President of WPP Australia and New Zealand about the global state of creativity.

Known for her dynamic approach to business and unyielding fight against mediocrity, Herceg shared her philosophy on creativity, its measurement, and its application in leadership and business. She explored the evolving nature of the creative industry, the growing influence of AI, and the challenges of maintaining quality in a hybrid work environment. Herceg also provided a glimpse into her predictions for the future of creativity and how leaders and organisations can adapt.

Defining Creativity by Staying Uncomfortable

When asked about her definition of creativity, Herceg was clear: “Creativity is the world’s greatest tool for solving problems.” For her, creativity is not just about artistic expression but a strategic lever for business growth and societal change. She emphasised that creativity must be intentional and integrated into leadership strategies to drive progress. “It’s the imagination and lateral thinking that push boundaries, transform industries, and set businesses apart.”

In applying creativity to leadership, Herceg highlighted the importance of authenticity. “Originality is when an idea makes you nervous—when it’s so bold, it makes you uncomfortable.” This discomfort, she believes, is a sign of true innovation, and it’s essential for leaders to embrace it to stay ahead.

Herceg argues that while creativity is often seen as an abstract concept, its impact is tangible when measured through business performance. “When creativity is done right, it drives sales, increases share prices, and elevates market cap,” she explained. She cited companies like Apple and Amazon as examples where creativity has not only led to innovative products but also to immense financial success. By focusing on measurable business outcomes, Herceg believes creativity’s value becomes evident, bridging the gap between imagination and profitability.

When asked about why she fights so hard against mediocrity, Herceg was firm in her stance. “There’s a lot of average out there—vanilla ideas that have been done before. To innovate, we need to fight against taking the obvious road,” she stated. For Herceg, creativity is about pushing beyond the mundane and striving for originality, even when it’s uncomfortable. “When you smell an idea that’s original, it should make you nervous. That’s when you know you’ve hit something authentic.” She believes that mediocrity holds businesses back and that leaders must create environments that foster bold thinking and risk-taking to achieve true innovation.

Addressing the competition between content creators and agencies, Herceg was asked how ad agencies compete in an age where content creators are increasingly influential. “Like any content, the best content rises to the top. There’s a lot of content out there, but not all of it is good. Good is good, and not very good is just noise,” she explained. She emphasised that originality and quality are the true measures of success, regardless of who produces the content. “The concern about the fight for content is defined by the same measure as it is for all content—truly original, imaginative content will rise to the top, and everything else will just be noise.” By maintaining a focus on excellence and authenticity, Herceg believes agencies can continue to thrive and set themselves apart in a crowded and competitive landscape.

Agency Model in a Hybrid and AI World

With the rise of remote and hybrid work models, Herceg addressed the challenge of maintaining high-quality creative work. “Creativity doesn’t thrive in isolation; it requires interaction, spontaneity and energy,” she explained. Despite the flexibility of work-from-home (WFH) arrangements, she emphasised the value of in-person collaboration. “At WPP, most of our teams are back in the office full-time. It’s essential for young talent to experience the buzz and inspiration that come from working closely with others.”

However, she acknowledged the need for balance and flexibility, understanding that occasional remote work is sometimes necessary. Her focus is on creating an environment that maximises creativity while accommodating the diverse needs of a modern workforce.

Herceg recognised AI’s growing influence in the creative industry but remained confident in its role as a tool rather than a replacement. “AI automates the repetitive, freeing up time for us to focus on the big ideas that change the world,” she said. She pointed to WPP’s intelligent marketing operating system powered by AI, WPP Open, which is designed to integrate with any client, partner or technology vendor to create optimised and automated marketing capabilities, as well as streamline creative processes. Herceg emphasised that AI has the potential to enhance, not replace, human creativity.

“AI lacks the cultural intuition, the lived experiences, and the instinct that humans bring to the table. No AI can replicate the way my synapses fire based on my heritage, upbringing, and worldview,” she argued. She sees AI as a means to elevate human creativity, rather than diminish it, by taking over mundane tasks and allowing more time for imagination and strategic thinking.
Herceg addressed the challenge of staying relevant as AI adoption accelerates, with tools like Canva empowering users and AI transforming industries. “It’s not about competing with AI; it’s about leveraging it,” she explained. Agencies must evolve, becoming strategic partners that use AI to enhance their offerings while focusing on what AI cannot do—crafting unique, culturally resonant stories.

Herceg proposed a future where agencies have dedicated roles such as ‘Scenario Designers’ or ‘Chief Imagination Officers,’ whose sole job is to envision and strategise future scenarios. “Every organisation should have people whose job is to imagine and plan for the unthinkable,” she suggested, highlighting the importance of creativity as a strategic advantage in an AI-powered world.

Global Trends and 2025 Predictions

Reflecting on 2024, Herceg noted several trends shaping the global creative landscape. One major shift is the recognition of creativity’s financial value, with chief marketing officers (CMOs) gaining a more influential role in boardrooms worldwide. “In the US, marketers are being seen as revenue drivers and are finally taking their seat at the table,” she observed. She hopes to see similar developments in Australia, where the connection between creativity and profitability is gaining traction.

“If I look at the United States, 51 cents of every dollar. In the United States comes from the ideas economy, Hollywood, Microsoft, Netflix, Facebook, Amazon, Google in Australia, that number is 7 cents. So America has created the greatest export economy with the ideas economy, which is creativity and imagination,” Herceg added.

Another trend she emphasised is the rise of unconventional creativity. “The most creative solutions are often coming from unexpected places—our finance teams, young interns, and new hires who don’t know what isn’t possible yet,” she shared. These fresh perspectives are critical for keeping creativity dynamic and relevant.

Herceg highlighted campaigns that have profoundly impacted her view of creativity, such as the “Morning After” campaign by Ogilvy, which challenged legislation and drove societal change. “When a campaign can change the law, that’s creativity at its finest,” she declared. Other notable mentions included WPP’s use of AI in the “Serena vs. Serena” campaign and work that has directly influenced business practices, like MasterCard’s data-driven support for Ukrainian refugees.

Looking ahead, Herceg made three bold predictions for 2025:

• Increased Integration of AI and Creativity: As AI tools become more sophisticated, she expects agencies to integrate AI deeper into creative processes, freeing teams to focus on innovation and storytelling.
• Rise of ‘Imagination Officers’: More organisations will hire roles dedicated to scenario planning and imaginative thinking, transforming how businesses approach strategy and innovation.
• Shift Toward Hybrid Work Models: While she remains a proponent of in-office creativity, Herceg predicts a balanced approach where agencies blend physical and digital spaces to optimise collaboration.

In the next five to ten years, Herceg envisions a world where creativity is embedded in every aspect of business. “It’s no longer an option; it’s a necessity,” she stated. Creativity will be the driving force behind innovation, economic growth and societal progress.

Advice for Creative Leaders to focus on Solving Global Problems

Herceg is a firm believer in creativity’s potential to build trust and drive change. “The best creativity solves problems and predetermines actions,” she explained. By providing solutions, creativity builds credibility, transforming relationships between brands and consumers. She also emphasised the need for creativity to tackle pressing global issues such as climate change, economic inequality and social justice. “Creativity is the key to unlocking solutions for the world’s biggest challenges.”

Herceg concluded with advice for creative leaders, especially those over 40 seeking their next chapter. “In the age of AI, leaders must stay open to new possibilities and focus on connecting the dots. There’s always a solution—you just have to see the whole chessboard.” She urged leaders to say ‘yes’ more often, embrace collaboration, and continue exploring new avenues for growth and innovation.

When asked about her global favourites, Herceg named Apple as her most admired company for its consistent innovation and brand integrity. She praised Netflix for reinventing itself and championed Bob Hawke as an example of a creative leader who transformed Australia’s political landscape. Her favourite creative city? “Tokyo—pound for pound, it’s the most inventive city in the world.”

Herceg’s insights at the Breakthrough Sessions illuminate the power of creativity as a strategic force. As AI evolves, businesses face economic shifts, and societal challenges intensify, creativity remains the essential lever for transformation. For leaders and organisations, embracing creativity is no longer optional; it’s the path forward.