HR Case
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CaseCircduSoleil407-081-1.pdf
407-081-1
ICMR Center for Management Research
Cirque du Soleil’s Human Resource Management Practices
This case was written by Pawar M, under the direction of Gupta V, ICMR Center for
Management Research (ICMR). It was compiled from published sources, and is intended to be
used as a basis for class discussion rather than to illustrate either effective or ineffective
handling of a management situation.
2007, ICMR Center for Management Research
ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India
Email: [email protected].
www.icmrindia.org
Distributed by The Case Centre North America Rest of the world www.thecasecentre.org t +1 781 239 5884 t +44 (0)1234 750903 All rights reserved f +1 781 239 5885 f +44 (0)1234 751125
e [email protected] e [email protected] case centre
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407-081-1
Cirque du Soleil‟s
Human Resource Management Practices
“For us training is „creative transformation‟ and recruiting is „treasure-hunting.‟ Even at Cirque,
we have to work hard at it. We too could lose our soul, if we didn‟t have the commitment. We have
a „Creative Synergy‟ department, whose preoccupation is in doing this.” 1
- Lyn Heward, Executive Producer and Senior Advisor, Cirque du Soleil, in August 2007.
INTRODUCTION
In April 2004, Montreal, Canada-based Cirque du Soleil (Cirque) 2 had to pay US$ 600,000 to
settle an HIV discrimination case against it. A performer with Cirque, Matthew Cusick (Cusick),
filed a discrimination complaint against the company in the federal court after he was asked to
leave as he was tested HIV+ve. This settlement mandated that the anti-discrimination policies of
the company should be revised and all the employees should be provided anti-discrimination
training. Talking about the incident, Suzzane Gagnon (Gagnon) Vice President, Human Resources,
Cirque, remarked, “It‟s too bad that it did happen, but I think we have better management practices
today.” 3
Following this settlement, Cirque worked hard to ensure that its reputation remained untarnished
by the incident. The HR department was given training on the prevailing discrimination laws and
the responsibilities of the employers. All the employees spread across the world were educated
about HIV and other diseases by experts in the field. The case proved to be an eye opener for
Cirque, which had always had a reputation of being an undiscriminating, gay-friendly
organization. Commenting on the case, Hayley Gorenberg, Cusick‟s attorney, said, “The case
called (Cirque‟s gay-friendly image) into question for a lot of folks, and justifiably so. But Cirque
showed a certain willingness on their part to be fully engaged in making the changes that they need
to make.” 4 As a result of the case, Cirque came up with new HR policies and practices.
Cirque, an entertainment company, had shows combining several entertainment elements like
traditional circus, ballet, opera, and theater. The company organized both permanent shows and
touring shows. Cirque had changed the face of circus with its innovative practices. As of 2007,
3,000 people, with average age of 35 years, from more than 40 countries were employed with
Cirque. To manage such a diverse workforce, it had a dynamic HR team which had to be
„constantly on the move‟. Talking about how difficult the HR task at Cirque was at times, Gagnon
said, “Guy Laliberte (Cirque du Soleil‟s founder) says that we reinvented the circus. But
sometimes you have to reinvent HR.” 5
1 Arupa Tesolin, “Business at the Big Top: Four Rings for Creativity and Innovation,” August 08, 2007.
2 Cirque Du Soleil, which means “Circus of the Sun” in French is a privately held entertainment company
headquartered in Montreal, Quebec, Canada. It is estimated that the annual revenue of the company is
about US$ 600 million. 3 Cindy Waxer, “Cirque du Soleil‟s Balancing Act,” www.workforce.com, January 2005.
4 Cindy Waxer, “Cirque du Soleil‟s Balancing Act,” www.workforce.com, January 2005.
5 Cindy Waxer, “Cirque Du Soleil‟s Balancing Act,” www.workforce.com, January 2005.
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In a span of over two decades, Cirque which began as a small company with 73 performers, had spread its operations across the world. The company had two regional offices at Amsterdam and Las Vegas in addition to the headquarters in Montreal. As the company grew, Cirque had to undergo a complete paradigm shift when it came to recruitment, training, and even planning out HR policies for its employees. For instance, in early 2005, Sylvain Carrier (Carrier), Director – Compensation, Benefits, and HR Systems, and his team reviewed and revamped Cirque‟s group insurance system. For this purpose, they had to measure the liabilities and risks of general insurance and human capital. They wanted a consistent insurance policy and insurance provider for all employees of the company. However, this was very difficult to achieve because of the global spread of the Cirque employees and so the company decided to differentiate its insurance coverage on the basis of four geographical locations – the International Headquarters in Montreal, the Las Vegas office, the Amsterdam office, and the touring shows (all tours grouped as one location). Such a policy ensured that the performers got satisfactory coverage, wherever they were located in the world.
Cirque was quite clear that it wanted only the best talent as its performers. Recruiters would scour the world looking for performers and many of the acrobats were picked up from sporting events like the Olympic games. The training given was extensive. And retaining these performers was an important task as the industry was highly competitive and there were other players competing for the same talent. Cirque also devised a career transition program called „Crossroads‟ to help the employees plan out their carrers after their performing years were over (Refer Exhibit I for the Crossroads Program). Applauding the HR policies at the company, Linda Tischler, Senior Writer and Former Managing Editor of Fast Company
6 said, “Offbeat and wild it may be, but Cirque
could still teach most businesses a thing or two about recruiting and retaining supremely talented specialists, coaxing extreme creativity from a diverse band of employees, and building a powerhouse global brand.”
7
BACKGROUND NOTE
In 1980, Gilles Ste-Croix (Ste-Croix), with skills in stilt-walking 8 , along with some performers
founded Les Echassiers de Baie-Saint-Paul (Les Echassiers), and began street performances. Soon Laliberte and Daniel Gauthier (Gauthier) joined the group. In the same year, Gauthier and Ste- Croix planned to turn Le Balcon Vert, a performing artists‟ youth hostel that they managed into an organized performing troupe. To raise funds for this purpose, Ste-Croix stilt-walked between Baie- Saint-Paul
9 and Quebec City
10 . This attracted the attention of the Quebec Government and it
provided the trio with the necessary funds. Their maiden tour was that of Quebec in 1980.
However, initially Les Echassiers was a commercial failure and suffered substantial losses. In late 1980, the trio formed the Club des Talons Hauts, a troupe formed by bringing together many street performers like fire eaters, mime artists
11 , jugglers and stilt walkers. The venture, known as „High-
Heels Club‟, started making profits by 1981.
6 Fast Company, launched in November 1995, is a privately held, US based monthly business magazine
that reports on innovation, digital media, technology, change management, leadership, design and social
responsibility. 7 Linda Tischler, “Join the Circus,” Fast Company, July 2005.
8 Stilt walkers attach themselves to very high poles and walk while elevated above normal heights. Stilts
are poles made of wood, about five feet in length, provided with a shoulder and strap to support the foot,
on the upper part and the lower part is enlarged to enable walking while maintaining balance on the
ground. 9 Baie-Saint-Paul is a city in the province of Quebec and is located on the Saint Lawrence river.
10 Quebec City is the capital of the Canadian Province Quebec and is the second largest city in the province
after Montreal. 11
Mime is a performance act in which the artist performs a story through body motions and facial
expressions without the use of speech.
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By September 1981, Les Echassiers had broken even. The trio decided to organize a fair, where
they could exchange ideas with other performers and also learn new tricks. The fair, which first
toured in July 1982, was called the “La Fete Foraine de Baie St-Paul” (La Fete Foraine). La Fete
Foraine also held workshops to teach the circus arts to anyone interested in learning them. These
people could then take part in the performances.
In 1984, during 450 th anniversary of Jack Cartier‟s discovery of Canada, the troupe convinced the
organizers of the celebrations in Quebec to provide them with a grant running to C$ 1.2 million.
This led to the subsequent formation of Cirque. The company performed shows across Quebec.
Laliberte chose the name Cirque du Soleil for his company as he saw the sun as a symbol of youth,
energy, power, and light.
From the very beginning, Cirque‟s shows were quite different from the shows of a traditional
circus. Cirque‟s shows had much more to offer as it had artists from several countries performing
in the show. It created a new circus experience with amazing light effects, own music, and
radically different costumes. To attract audience, traditional circuses, often included performances
by well known and famous artists. Cirque did not employ noted performers to pull crowds.
Laliberte believed that no performer could be bigger than Cirque itself. Cirque did not include
animals in its acts, and by not including animals, the company avoided attacks from animal rights
activists and the huge costs involved in maintaining and moving the animals. Cirque also avoided
loud background music which was common in traditional circuses.
After its first tour in 1984, Cirque received an additional grant from the Quebec government. With
these funds, Cirque carried out a major renovation organizing itself into a formal circus. For this
purpose, Laliberte met with Guy Caron (Caron), founder of Canada‟s National Circus School.
Caron began working as Cirque‟s artistic director. Both Laliberte and Caron played a major role in
redesigning Cirque. There was a live band that played strong, emotionally charged music from the
start till the end. The performers themselves moved the props and the equipment on and off the
stage, blending the process into their performance. This way, the main storyline of the
performance was not disrupted.
In 1985, the troupe performed outside Quebec for the first time when it held a show in the
neighboring province Ontario. The positive response from the audience encouraged Laliberte to
expand Cirque‟s operations outside Quebec. In the next year, Cirque performed at the Children‟s
Film Festival in British Columbia and at a world fair in Vancouver. By this time, Cirque had a
seating capacity to 1500. However, some of the shows failed, leaving Cirque in a financial mess.
In late 1985, the performance in Toronto received a poor response from the audience with just 25
percent of the seats being filled. A subsequent show at Niagara was also a failure. As a result,
Cirque went deep into debt – to the tune of US$ 750,000. However, the company did not go
bankrupt as Cirque‟s financial institution, the Desjardins Group, postponed Cirque‟s debt payment
of US$ 200,000. The Quebec government granted sufficient funds to the company so that it could
sustain itself for another year. At that time, Daniel Lamarre, then President and CEO of largest TV
broadcaster in Quebec, joined Cirque. Earlier, Lamarre worked with public relation firms like
National Public Relations and Burson-Marsteller.
In 1987, the status of Cirque was changed from non-profit to a for-profit entity. That year, the
troupe was invited to the Los Angeles Arts Festival. Although the company was facing financial
problems, Laliberte decided to take a chance and his troupe performed at the festival. The
performance was a huge success. The show got noticed by Columbia Pictures 12
, which got into
talks with Laliberte and Gautier for making a movie about Cirque. However, Laliberte did not
12
Columbia Pictures Industries, Inc. is an American film and television production company, owned by
Sony Pictures Entertainment, a subsidiary of Japanese electronics corporation Sony. It has produced
popular movies such as Kramer vs. Kramer, Charlie‟s Angels, Hollow Man, and the more recent Spider
Man Series.
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allow the deal to materialize as Columbia Pictures tried to control the production. This experience
left him with the conviction that Cirque should be privately held so that he could have all the
freedom needed to operate the company.
The company could seat 2,500 people by the year 1990, and the tickets sold for as high as US$ 33.5.
13 By this time, Cirque had different troupes touring several parts of the world and normally
halting in cities for about four to five weeks. A new production named Nouvelle Experience which toured 13 major cities in the US and Canada over 19 months enjoyed an excellent response and by the end of its tour, 1.3 million people had seen it
14 .
By mid-1991, Cirque was able to convince Fuji Television Network (Fuji) to sponsor Cirque‟s tour of Asia and Fuji agreed to give US$ 40 million for the purpose. Cirque performed across eight cities beginning with Tokyo. At the same time, Cirque partnered with Circus Knie
15 for a tour of
Switzerland. The company also conducted a tour of North America with its production Saltimbanco („Street Performer‟ in Italian) in 1992. Saltimbanco was a major success in North America and it then toured Japan for six months.
Cirque also entered into a year-long agreement with Mirage, a Las Vegas hotel, to perform Nouvelle Experience. This was Cirque‟s first engagement of the kind. The fact that this was a huge success encouraged it to launch another production called Mystere, which began its performance at Mirage. Subsequently, Cirque entered into a ten-year contract with Mirage for the production. Steve Wynn (Wynn), owner of Mirage, also built a permanent facility for Cirque at the cost of US$ 20 million at his new resort, Treasure Island, which opened in 1994. This provided Cirque with a major and steady source of revenue. In addition to the revenues obtained by the company in terms of ticket sales, it was also earning a significant amount from the merchandise that it sold at the performances. There was also a considerable market for Cirque‟s CDs as the company had created quite a fan following for itself over the years.
In 1995, Cirque established its first European headquarters at Amsterdam. The same year, Saltimbanco went on its first extensive European tour. In 1997, Saltimbanco presented its last performance in London. Cirque‟s next production was Alegria, which was performed all across Europe for over two years. Cirque‟s sales had increased manifold from US$ 30 million in 1994 to US$ 110 million in 1996. This growth was mainly because of the production Mystere. Mystere‟s revenues were at US$ 40 million. In 1997, Wynn constructed a US$ 60 million theater for Cirque at Bellagio, Las Vegas. Walt Disney also constructed another permanent theater to house Cirque at Walt Disney World, near Orlando, California. The same year, a US$ 22 million facility for rehearsals and costume designing activities called „Creation Studio‟ was created by Cirque in Montreal. This also served as the company‟s headquarters.
In October 1998, Cirque‟s new production „O‟ (after „eau‟, which means water in French) debuted at Bellagio. This production was unique with the performance being conducted in, above, and around an Olympic-sized 1.5 million gallon swimming pool that had been created for the purpose. 16
The production cost was a whopping US$ 90 million and the tickets were priced at US$ 100 each. Another production La Nouba debuted at the newly constructed theater at Walt Disney World. Dralion, yet another new production, embarked on a three-year tour of North America in January 1999. Thus, Cirque concluded the 1990s with seven productions and performances in 22 countries in Asia-Pacific, North America, and Europe.
In October 2004, Cirque entered into an agreement with the Beatles 17
stars to create a production to be staged at the Mirage hotel. The project called Love, recreated the life of the Beatles before
13
Jeffery L. Covell, “Cirque du Soleil Inc.,” www.answers.com, June 02, 1997. 14
Jeffery L. Covell, “Cirque du Soleil Inc.,” www.answers.com, June 02, 1997. 15
A Switzerland based circus company which was formed in 1803. 16
Jeffery L. Covell, “Cirque du Soleil Inc.,” www.answers.com, June 02, 1997. 17
The Beatles, an English musical group from Liverpool, was one of the most commercially successful and
critically acclaimed bands in the history of popular music. Its members were John Lennon, Paul
McCartney, George Harrison and Ringo Starr.
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they became famous. In November, the same year, there was another permanent production, KA, which played at MGM Grand, Las Vegas. Mirage Resorts was acquired by MGM
18 in 2000 and
KA was created specially for MGM. KA was unique in the sense that it was more clear and straightforward unlike other Cirque productions which were quite abstract. The total cost of KA US$ 220 million, was borne by MGM.
In line with its global presence, Cirque decided to decentralize its HR department. This was mainly
because the performers of the touring shows were governed by the laws and policies of the
countries in which they were performing at that particular point of time, on issues like taxability of
the monetary benefits and allowances received, maternity benefits, etc. Keeping track of all these
policies with a centralized HR system was becoming difficult. Hence, apart from the HR
headquarters at the corporate headquarters at Montreal, two more regional offices were
established, one in Amsterdam with five HR professionals, and the other in Las Vegas with a team
of eight HR professionals.
A full-time HR professional always accompanied each of Cirque‟s touring shows to help with
specific issues like insurance coverage, immigration, and work/life balance. The touring shows
also hired temporary employees for specific roles like ushers, cashiers and sales people on the
merchandize tents. Many of these employees would follow the touring shows to various cities. If
the temporary employees‟ performance was really good, they would be absorbed as permanent
employees into the company. Speaking about the position of HR in the company, Gagnon said,
“HR here is part of every strategic decision. I‟m one of four people on the management team. But
we remember that HR is a service. We‟re not the leaders; we‟re not taking the business risks; but
we do participate in the decision. HR policies should protect everyone and the company not be
restrictive but help out. We strike the balance between decisions and humans.” 19
RECRUITMENT AND SELECTION
Cirque‟s management believed that the company was as good as its employees. However, they did
not have any predefined rule that only experienced people would be selected. While recruiting new
employees, five major attributes were evaluated creativity, commitment, responsibility, team-
play and passion. Only the quality of people mattered. Gagnon said, “The two owners of this
company started it because no one would give them jobs. They were too young and had no
experience. So we do hire people too young with no experience because we remember where we
came from ... If we match that kid with someone of more experience, we have a nice, necessary
tension. It‟s like tight-rope walking. If it‟s not tight enough, you‟ll kill yourself; if it‟s too tight,
you‟ll kill yourself. We have a nice tension.” 20
The lowest and the highest management positions available in the company were advertised
internally and when they were not filled that way, employees were hired from outside. Typical
management employees (not from within the company) were recruited through advertisements or
through referrals from within the company. Unsolicited resumes too, were stored in the company‟s
database for future reference. Then if short-listed, these candidates would be called for the first
round of interviews with a panel of interviewers. The prospective employees were interviewed to
gauge if they would be able to cope with the dynamic lifestyle of a Cirque employee. As Jennifer
18
Metro-Goldwin-Mayer Inc. (MGM) is an American media company which is mainly involved in the
production and distribution of films and television programs. It was acquired by Sony Corporation of
America and Comcast in partnership, in association with the Texas Pacific Group in April 2005. After
this acquisition, MGM Mirage was no longer affiliated to MGM. 19
Dawn Anfuso and Frazee Valerie, “Cirque du Soleil: HR is Everywhere,” www.workforce.com, January 1997. 20
Gillian Flynn, “1997 Global Outlook Optimas Award Profine: Cirque du Soleil,” www.workforce.com,
August 1997.
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Dunne, Assistant Director of Cirque‟s Mystere show in Las Vegas, put it, “When a person applies
for a touring position, it‟s not just a job, but a way of life. Not just anyone will want to pick up for
two years and live on the road with a bunch of artists.” 21
Recruiting the performing artists, was of high importance to Cirque, for which it spent significant time and resources. Florence Pot (Pot) and Fabrice Becker (Becker) were the talent hunters for Cirque. They published advertisements in the newspapers and on their own website as well as on other specific recruitment websites such as www.stagetech.com, announcing the vacancies (Refer Exhibit II for an online recruitment advertisement). They also conducted as many as twelve auditions every year to find the right people. Explaining the selection process, Pot said, “Sixty-five per cent of Cirque artists are acrobats. So our first impulse is to look for elite athletes in serious competition, who can measure up to the high standards that are going to be imposed on them.”
22
Pot and Becker went about selecting the people keeping in mind the needs that arose for each Cirque show. The talent that they recognized was added to a Talent Bank database at the headquarters at Montreal. When a requirement arose, the candidates from the database were contacted for an audition. Sometimes, the performers were not contacted for a couple of years, that is, till specific roles were created to match the special characteristics that they possessed.
An acrobatic audition was a spectacle in itself. The first test – climbing the rope – tested the strength of the participants. Murielle Cantin (Cantin), former Casting Director, Cirque, said, “Once they are up there, we ask them to sing a song. Such requests nonplus athletes, but they are judged on their willingness to risk dignity for the sake of entertaining an audience.”
23 The interviewees
were tested for their ability to respond to the real life challenges imposed in live shows. The selection process was particularly difficult while casting for a specific role. Sharing one specific experience, Becker said, “For Philemon (in “O”), we needed a young man of North African origin with stage experience, who would be athletic enough for strenuous climbing, and who wouldn‟t be afraid of heights, water, or fire. It wasn‟t easy! But then, that‟s what makes Cirque, Cirque. It‟s a balancing act for everyone.”
24 According to Cantin, only one in six persons got selected for the
subsequent training.
TRAINING
Of the total, almost seventy five percent of Cirque‟s performers were selected from competitive sports and then over about six months, they were trained to become artists, which meant that other than acrobatics, they learnt to act, sing, and play music. Interestingly, Cirque functioned without any make-up artists. Hence, during the training period, the artists learnt to apply their own make up too. Philippe Aubertin (Aubertin), the head coach, spent four months developing the athletes to turn them into entertainers. Every year, about fifty to sixty acrobats attended such training, and more than fifty percent of them were offered a two year contract based on their ability to adjust to the routine at Cirque.
The training was not just to hone a performer‟s strength or endurance. It was more oriented toward transforming an athlete into an artist. For example, an athlete would have gone through years of training to maintain a rigid posture while focusing on scores. However, at Cirque they would have to break free of their rigidity and become more expressive. As Aubertin put it, “They have to shift from being an athlete who had to be strong and not show emotion to an artist who has to be vulnerable.”
25
21
Gillian Flynn, “1997 Global Outlook Optimas Award Profine: Cirque du Soleil,” www.workforce.com,
August 1997. 22
“How Cirque Finds its Talents,” www.cirquedusoleil.com. 23
Mark Henricks, “Bigger than the Big Top,” www.americanwaymag.com, October 01, 2004. 24
“How Cirque Finds its Talents,” www.cirquedusoleil.com. 25
Bonnie DeSimone, “Cirque‟s Siren Call to Athletes,” www.usatoday.com, July 07, 2005.
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It was at this training that the athletes lost their „game face‟ and were molded to portray a
character. They were trained by a team of professionals like the acting coach Pierre-Philippe Guay
and movement coach Valerie Dean. They would make the trainees crawl like babies or run around
round screaming, randomly shout, and fall backward, trusting a colleague to hold them.
Sometimes, they would be made to walk toward a mirror screaming “Why are you looking at me?”
with each step. 26
In the training programs, the athletes also got used to the fact that all the artists and performers
were equal, regardless of the number of championships they had participated in or the number of
medals they had won. Cirque always focused on the show, which was considered to be more
important than the individual performers. The new recruits undergoing training could also avail the
services of sports psychologists. According to sports psychologist, Madeline Halle, “They‟re used
to competing four or five times a year, and now they have to do several hundred shows a year.
Their old idea of competition is not useful now. The main goal is to do the best but not compare it
to something or someone else.” 27
Correy Fox, one such professional gymnast and diver who underwent the training at Cirque, said,
“Competing is so robotic. You basically do what you‟re told. You‟re not really feeling it. You train
so much that when you get into competition, you don‟t have to think about it. Here, you‟re
constantly in a state where you show emotions and express yourself through body movement and
facial expressions. It‟s exhausting but rewarding.” 28
CULTURE AND WORK ENVIRONMENT
At Cirque, the artists were given their own space and a creative environment where they were free
to share their ideas. Cirque also provided the artists an opportunity to grow both professionally and
personally. The work place was projected as a home-away-from-home and the colleagues were
more like family members than co-workers. The artists were allowed to bring their families along
on tours. At Cirque, the work place was more like a playground. The atmosphere was open and
inviting. All team members were conditioned to take responsibility for the success or failure of the
shows. These artists were offered special living conditions and schooling for their children. When
the artists were at Montreal, they were accommodated in the „artists‟ residence‟. At the artists‟
residence, they were provided with air conditioners, TV, Internet, and other facilities. The
residence also had a communal area, a gym, a kitchen, a lounge area, and a game room.
Cirque also had some child artists aged below 18 years who enjoyed certain special treatment. Jean
Gelineau (Gelineau) the Coordinator, Supervision for Minors, at the company, made sure that the
experience for the children was rewarding and enriching. He said, “You might have an image of
these kids having a wild, magical time on the road. But in fact, they lead extraordinarily structured
lives.” 29
Cirque was subjected to the child labor laws in the countries in which its shows were
performed. There were specific limits to the number of hours they could perform in a day or a
week. Every child had a supervisor who would supervise and take care of him/her. For such
children, schooling was an important part of their lives at Cirque. Sabine Cyr, Cirque Education
Coordinator, said, “There are Cirque schools that travel with every production. Classrooms are set
up on site, often in trailers, and instruction takes place from 11 am to 4 pm. We offer programs in
French or English, to kids at all levels.” 30
All the teachers at Cirque were accredited by the Quebec
education ministry and the children were required to learn all the subjects in the Quebec program.
Commending the child artists at Cirque, Gelineau said, “A lot of demands are placed on them. But
26
Bonnie DeSimone, “Cirque‟s Siren Call to Athletes,” www.usatoday.com, July 07, 2005. 27
Bonnie DeSimone, “Cirque‟s Siren Call to Athletes,” www.usatoday.com, July 07, 2005. 28
Bonnie DeSimone, “Cirque‟s Siren Call to Athletes,” www.usatoday.com, July 07, 2005. 29
“Cirque Kids,” www.cirquedusoleil.com. 30
“Cirque Kids,” www.cirquedusoleil.com.
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they thrive on it! These kids are already talented, disciplined, and focused individuals because of
what they do professionally. And they bring that attitude to the classroom.” 31
The children were
also encouraged to explore the town where they were performing and this was also a very good
medium for them to learn while on tours.
All the artists received free lodging along with a tour allowance and a cost-of-living adjustment.
This adjustment amount was pre-decided for each city that Cirque‟s employees went to. There was
an educational assistance program for artists who wanted to continue their education. It was
offered to those who were more than one year old in the company. The artists were allowed to
attend other gala events and celebrity meets organized in the cities in which Cirque performed. As
the resident shows were located in places like Las Vegas and Disney World, the artists from
Cirque could attend activities that would bring together artists from various spheres of the
entertainment industry and thus acquire new skills.
The artists were well compensated with competitive salaries and other benefits. In addition to the
regular compensation, they received a bonus which was based on their performance and not on
their seniority in the company. There was 100 percent coverage for medical, dental, disability, and
life insurance for the artists and 50 percent coverage for family members who toured with them.
Each traveling and resident show had a team of physical therapists and doctors for professional
medical support, emergency care, etc.
The annual earnings of the performers ranged from US$ 30,000 (including food, lodging, and
training) for the new joinees, to US$ 250,000 for the established artists who also held exclusive
rights to their special acts. 32
Speaking about the motivation at the company, Lyn Heward,
Executive Producer and Senior Advisor, Cirque said, “Everyone, when they come to Cirque as an
employee – even an accountant – comes there because it‟s a creative and admired company, and
they want to be able to contribute something creatively.” 33
Cirque also took good care of the artists and the crew when they were on the move. For the artists
who performed eight shows in a week and put in long hours of training every day, a tour could be
quite demanding and stressful. The management made sure that they ate well. Typically, while on
tour, Cirque‟s kitchen staff set up temporary trailers which would also include a walk-in freezer
cum refrigerator. Moreover, to ensure a supply of fresh vegetables and meat, the kitchen staff
chose local suppliers for food. It was ensured that the kitchen always cleared health inspections in
all the cities the company toured in. Care was also taken that the food served was low in fat and
healthy. Cirque even tried to add a local flavor, especially for the performers. For example,
Cirque‟s show, Dralion brought in almost fifty Chinese artists. The kitchen staff made a special
effort to meet their needs by including traditional Chinese items in each meal. 34
MANAGING CULTURAL DIVERSITY
Starting with Alegria in 1995, Cirque saw an influx of Chinese, Russian, Asian, French, and
English speaking artists and employees. This resulted in vast cultural gaps which made
communication difficult between artists and technicians. It also affected the quality of the show. In
an effort to overcome this problem, Cirque‟s HR team undertook a basic language training
program for the performers to close such gaps.
There were also many conflicts that arose due to cultural diversity. For example, the laws
regarding sexual harassment were more stringent in the US than in Canada. Kissing to greet
friends and co-workers was quite regular in Canada but could be considered a form of sexual
31
“Cirque Kids,” www.cirquedusoleil.com. 32
Brian D. Johnson, “Cirque du Soleil,” Maclean‟s Magazine, July 27, 1998. 33
Arupa Tesolin, “Business at the Big Top,” www.trainingmag.com, August 08, 2007. 34
“Eating Well on the Road,” www.cirquedusoleil.com.
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harassment in the US and some Asian cultures. In such cases, any complaint from an employee
would lead to the company facing legal issues. Thus, it was important that the people at Cirque
were made tolerant toward various cultures and traditions that were followed by different
employees at the company. The various troupes were therefore educated about the fundamentals of
dealing with cultural diversity so that the performers could understand each other better.
The touring troupes also faced the challenge of „cultural adaptation‟. For example, in Japan, which
is considered a unique country, culturally, the performers had a tough time getting used to the stoic
and formal behavior of the audience. The spectators provided little feedback to the artists who
were more used to a more enthusiastic response. The result the HR department at Cirque
received many complaints and resignations from the artists. As a solution to this problem, Cirque
partnered with FGIWorld (FGI) 35
, a Toronto-based work force counseling company. FGI imparted
cross-cultural training for the next group which was to tour Japan. They developed “An
Introduction to Life in Japan”, a highly interactive training program, designed to make the
performers aware of the local customs, differences in the communication style, Japanese greetings,
and even navigation on the public train system. This program was quite successful and many
artists also expressed their interest in returning to Japan for more tours. Similar training programs
were planned for troupes touring across Europe too.
Cirque also offered an Employee Assistance Program (EAP) for its touring professionals. This
program was designed to provide professional help and counseling for international artists who
suffered from high levels of mental stress and frustration. It also included helping the performers
overcome the challenges of cultural clashes. A survey of the accompanying spouses, conducted by
The Interchange Institute 36
in early 2005 found that those who received training on cross-cultural
issues were better off mentally and physically than those who did not.
COMMUNICATION
Open and unhindered communication within Cirque was like a corporate policy which insiders at
Cirque cited as the reason for problems getting addressed and solved so quickly, worldwide.
Whenever employees had a problem or an issue they could easily write or talk to their supervisors
about it and expect the issue to be addressed. For example, Jennifer Dunne, who joined Cirque in
1990 as a publicist for Cirque‟s North American tour and worked in that capacity for two years,
wrote to her supervisor that she felt she needed a different role. Her role and position were
changed more than once; first as an assistant to a tour director and then as the assistant company
manager for the Mystere show at Las Vegas. There were regular meetings where all the employees
could converge and express their views, concerns, and gratitude. These meetings were called
„Tapis Rouge‟ for the artists and blue or green carpets for the other employee groups. The
company also had an interactive intranet which made communication simple between the
employees spread worldwide.
Cirque had three publications through which the employees could communicate globally. Hand to
Hand was a fortnightly magazine which contained information about openings in the company,
new tours, and the schedules of various Cirque shows around the world. It was more of a formal
corporate periodical.
35
FGIWorld is a Toronto-based HR company which was founded in 1981. Through a network of
counselors, psychologists, social workers, cross cultural experts, and trainers across 100 countries, the
company provides employee assistance, disability management, and cross-cultural services around the
world. 36
Interchange Institute is a US-based non-profit organization which was formed in 1997 to facilitate
communication between people who have moved to a new country, and their new communities. This
organization conducts research and produces publications to assist such people in cross-cultural
transition.
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The Ball, a monthly published at Montreal, mainly carried stories of Cirque employees around the
world. It was like a graffiti wall where any employee could contribute his/her stories. For example,
there was a column called „Culture Shock‟ where employees would give their frank opinions about
their experiences in foreign lands. This was seen as a link between Montreal and the touring
shows. It also contained a feature „Be Your Own Bitch‟ (BYOB). In this section, the employees
could express their complaints and suggestions and other insider jokes, uncensored by the
managers and supervisors.
Under the Bleachers was a European contribution, a publication from the company‟s Amsterdam
office, started in 1995. It was similar to The Ball. The magazine also had an informal theme and
featured un-posed and funny photos, interviews and gossips.
Employee feedback was considered seriously whenever an important policy was introduced or
revamped. The HR managers would visit the different Cirque venues and discuss it with a few
employees. They also encouraged arguments. Gagnon said, “We get better from this type of
concerned employee than the ones who say, „Everything‟s fine, thank you very much,‟ because
then we‟re just getting what we want to hear. We want to hear what‟s wrong so we can fix it.” 37
THE FUTURE BECKONS
It was important for Cirque to retain artists who were very talented and rare to find. A case in point
was the 25-year-old Brazilian dwarf, Alan J. Silva (Silva), who was spotted in Sao Paulo. In the
Las Vegas show Zumanity, Silva performed in a role especially created for him. He performed
with a female gymnast who was almost 6 feet tall. The problem arose when he had to be replaced
for a few days due to a shoulder injury. Although another dwarf was brought in from Brazil to
perform the role, it just didn‟t work out and so Silva‟s part was removed till he was ready to
perform.
Another example of such rare talent was an acrobatic team of husband and wife in their mid-
seventies. The couple was immediately hired, until two years later when the woman‟s hip starting
hurting. They did find a replacement, though finding one was a major challenge. When even this
pair retired after a couple of years, the Cirque officials decided to kill the act altogether. The HR
team at Cirque was „walking a tight rope‟ while trying to retain unique talent with the company. In
many cases, where the artist was injured, other Cirque artists would be brought in for the role till
the original artist could perform again. Cirque would also hire some artist temporarily to fill up
this ad-hoc opening. However, in cases where the artists quit the company, the HR team would try
to find out the reasons for the artist‟s desire to quit and would try and accommodate his/her
requests so that s/he could be retained. Gagnon said, “Because our artists are so passionate and so
intense, you have to work things a little differently. You can‟t just hope to put together a
traditional career planning program and have them go with the flow.” 38
Cirque instituted a team of experts just to ensure that the employees were retained, especially on
touring shows. The attrition at the resident shows was very low, mainly because of the importance
that the company placed on training and progressive HR policies. On the touring shows, the
turnover rate was as high as 20%. However, the various initiatives by the HR department such as
the cross-cultural training and access to a psychologist brought the turnover rate lower by the day.
However, while the full-time employees seemed happy with the company, the temporary staff felt
left out or ignored. The temporary employees were all paid at the same hourly rate (which differed
on a city-to-city and country-to-country basis) irrespective of their position. Also, there was a „3 –
strike‟ policy for them. This meant that if they committed some mistake three times, they would be
37
Gillian Flynn, “1997 Global Outlook Optimas Award Profile: Cirque Du Soleil,” www.workforce.com,
August 1997. 38
Cindy Waxer, “Cirque Du Soleil‟s Balancing Act,” www.workforce.com, January 2005.
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asked to leave. This was seen as an insensitive policy on Cirque‟s part. Many a time, these staff
employees would be asked to leave even without being told why they were being asked to go. One
such contract employee although appreciating the creative environment at Cirque complained, “I
am a bit sad and angry that Cirque leaves so much policy and training material „up in the air‟ and I
am sad that they do not take the opportunity to learn more about their contractors and set up a
positive and motivational work environment for them.” 39
39
“My personal Experiences in Houston,” www.cirquetribune.com, July, 2004
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Exhibit I
Cirque‟s „Crossroads‟ Program
In 2003, a career transition program „Crossroads‟ was launched at Cirque, with the aim of
supporting the artists and preparing them for the time when they would have to leave the stage
and look for an alternative career. The program provided a variety of choices to the artists to
continue being a part of the Cirque family. For example, an artist who was looking for an
alternative career and had interest in stage management, through the transition program, could
meet one of the employees from the stage management division of the company. The artist was
provided guidance and assistance regarding the steps he/she had to undertake to shift career
from being a performance artist to an employee providing stage management support.
Some of the other alternative employment opportunities provided were those of fitness coach,
naturopaths etc. And the company also videotaped veteran artists as they shared their thoughts
on what career moves had or had not proved successful for them over the years. These videos
were then shared with artists who were in a career transition mode. This went a long way in
helping them to choose their future career path. These artists were also provided with a guide
that was made up of six modules filled with advice and suggestions for the artists to transit
smoothly into the next phase in their career.
In addition, a career development advisor was always available to the artists. The advisors
provided the artists required support to come up with a career plan considering various aspects
like aspirations, needs, skills etc. If the artists wanted to study further or complete the education
that they had left midway, the advisor helped them in finding the right programs and the details
of institutions offering those programs. He/she also guided them on career options that they
could consider both within and outside Cirque. More often than not, these artists were absorbed
by Cirque into coaching, stage management, casting, scouting, and administrative teams in
Montreal.
Source: „Crossroads,‟ www.cirquedusoleil.com, and other sources.
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Exhibit II
Cirque – Online Recruitment Advertisement
Source: www.stagetech.com.
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Additional Readings and References:
1. Dawn Anfuso & Frazee Valerie, Cirque du Soleil: HR is Everywhere,
www.workforce.com, January 1997.
2. Jaffrey L. Covell, Cirque du Soleil Inc., www.answers.com, June 02, 1997.
3. Brian D. Johnson, Cirque du Soleil, Maclean‟s Magazine, July 27, 1998.
4. Shortal Helen, Video Under the Big Top, www.highbeamresearch.com, September 1999.
5. Galafilm Wins Emmy for Cirque du Soleil Fire Within, www.galafilm.com, September
15, 2003.
6. Robin D. Rusch, Cirque du Soleil, www.brandchannel.com, December 01, 2003.
7. Beatles Teaming Up with Circus, The Saturday Morning Herald, October 15, 2004.
8. Cindy Waxer, Cirque du Soleil‟s Balancing Act, www.workforce.com, January 2005.
9. Blue Ocean Strategy for Innovation, www.tatler.typepad.com, March 02, 2005.
10. By Christopher Hogg, Cirque du Soleil and the Future of Entertainment, Digital Journal,
December 23, 2005.
11. How Cirque du Soleil Uses Email to Sell Out Shows at Local Cities,
www.marketingsherpa.com, June 01, 2006.
12. Nancy E. Schwartz, Follow Cirque de Soleil's Marketing Footsteps for Big Top Success
www.gettingattention.org, June 08, 2006.
13. Leigh Doyle, Juggling Act, www.benefitscanada.com, June 2006.
14. Larry Mullins, Blue Ocean Marketing Can Make Your Competitors Irrelevant - Part1,
www.furninfo.com, August 08, 2006.
15. “The Spark” of Creativity at Cirque du Soleil, www.kentblumberg.typepad.com,
September 29, 2006.
16. Peter Fisk, Cirque du Soleil, http://innoeurope2.cma.ee, September 30, 2006.
17. BMW to Sponsor Cirque du Soleil, www.ameinfo.com, November 15, 2006.
18. Cirque Du Soleil and the Problem of Too Much Innovation, www.endlessinnovation.typepad.com, February 05, 2007.
19. Cirque du Soleil, www.metropolis.co.jp, February 09, 2007.
20. Anastasiya Khutko, Cirque du Soleil‟s Guy Laliberte named Ernst & Young 2007
World Entrepreneur of the Year, www.ey.com, June 05, 2007.
21. Business at the Big Top: Four Rings for Creativity and Innovation,
www.trainingmag.com, August 08, 2007.
22. Talent Scouts for Cirque du Soleil Walk a Tight Rope, www.caycompass.com,
September 10, 2007.
23. Cirque du Soleil has a Secret, and it‟s Big, www.greystoneguides.com.
24. Profile: Cirque du Soleil Grows to a Global Brand by Mario D'amico,
www.internationalistmagazine.com.
25. www.cirquedusoleil.com.
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Books
1. W Chan Kim, Renée Mauborgne, Blue Ocean Strategy: How to Create Uncontested
Market Space and Make the Competition Irrelevant, Harvard Business School Press,
2005.
2. Fast Company‟s Greatest Hits: Ten Years of the Most Innovative Ideas in Business,
Edited by Mark N Vamos and David Lidsky, Portfolio, Penguin Group, 2006.
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