23 XIX Encuentro Internacional aeca XIX Encuentro Internacional AECA · Guarda-Portugal, 17 y 18 de septiembre de 2020 tems (Davila and Ditillo, 2016; Speklé et al., 2014). This is crucial in organizations whose activity requires individual creativity due to numerous uncertain tasks but which, given the complexity and interdependence of tasks, require formal controls to ensure coor- dination. Adler and Chen (2011) define this reality as ‘Large-Scale Collaborative Creativity’ (LSCC). For example, films and theatre shows require creativity from actors, but they must obey the coor- dination imposed by stage directors. In Portugal, Skowro´ nska et al. (2018) and Castro and Oliveira (2017), the latter on organizations from the audiovisual industry, conclude that properly implemented management control is com- patible with, and indeed contributes to, the success of creative processes. In particular, Castro and Oliveira (2017) identify the fig- ure of the producer as central to the interaction and articulation of individuals and objectives of the strongly creative artistic area and of the area of management and management control. Study of the São João National Theatre Methodology A case study was carried out at the São João National Theatre (Teatro Nacional São João - TNSJ), whose nature implies that crea- tivity plays a crucial role. Five semi-structured interviews were held between February and June 2019 with the Member of the Board of Directors in charge of Planning and Management Control, the Financial Director, the Artistic Director, the Stage Director and the Production Director. The interviews lasted an average of almost an hour. TNSJ documents such as its website, annual financial re- ports and Statutes; applicable legislation; and diverse information on TNSJ and on the theatre and generally, the arts sector, were analysed. Observations were also made during visits to various TNSJ locations in Porto. Historical background and structure TNSJ was acquired by the State in 1992 and in 2007 it became part of the ‘State-owned commercial sector’ (‘Setor Empresarial do Estado’), with a Board of Directors and a Statutory Auditor as governing bodies. The organizational structure includes, by law, an Artistic Director. He is responsible for drawing up the Annual Programme and, after approval by the Board of Directors, for its execution, through the coordination of the production, set up and exhibition of shows. The Programme includes four areas: TNSJ’s own productions, in which creativity has greater relevance; co-pro- ductions - TNSJ’s partnerships with various institutions; interna- tional; and educational. Management control systems: the levers of control TNSJ’s management control system is now analysed through Si- mons’ (1995) framework of interactive, diagnostic, boundary and belief systems. Interactive control systems The Artistic Director, responsible for the creative activity, stands out in the creative process, starting with the design of the An- nual Programme, whose “main driver (...) is contemporary life”. This design requires numerous interactions. The Artistic Director shares a draft with those responsible for the various areas, who provide feedback and suggest changes. After several interactions, the Artistic Director finalises the Annual Programme, which will guide the activities of all individuals. The Annual Programme absorbs the majority of TNSJ’s annual budget (based on 90 % of the reviews from the Contracted Pro- gramme of Activities, signed every three years with the Portuguese State). In the Annual Programme budget, although the Artistic Di- Ana Freitas University of Porto João Oliveira University of Porto Management control and creativity - the case of São João National Theatre Introduction Management control and creativity may seem contradictory con- cepts. Some authors see management control as limiting creative processes by restricting the freedom of individuals (Amabile, 1998). However, other authors argue that controls can favour cre- ative processes, for example, by allowing coordination (Adler and Chen, 2011) and by making creative activities more sustainable (Davila and Ditillo, 2016). This controversy and the decisive role of creativity in performing arts organisations have motivated this research. By studying the São João National Theatre (Porto, Portugal), the aim is to identi- fy existing management control mechanisms and their impact on creative activity. The remaining paper reviews the literature and presents the methodology, empirical analysis and conclusions. Creativity and management control Creativity is the generation of new and useful ideas, leading to the creation of something new, like a new way of solving a problem, a new method or a new object (Amabile, 1998; Busco et al., 2012). Creativity is important for all organisations (Amabile, 1998), but for some, such as those in the performing arts sector, creativity is crucial. Management control consists of the set of mechanisms that aim to lead individuals to decide and act in a way as to achieve organisa- tional objectives. These mechanisms are either formal (e.g. organ- izational governance, operational and financial rules, or techniques such as budgetary control) or informal (e.g. organisational culture, peer pressure and self-control). To conceptualise management control systems, this work adopts Simons’ (1995) framework, with four levers of control: interactive control systems; diagnostic control systems; belief systems; and boundary systems, each lever having a different purpose to support strategy implementation. Interactive control systems aim to deal with strategic uncertain- ties, identify threats and opportunities and respond proactively. By sharing and discussing emerging information, they aim to pro- mote dialogue, learning, innovation and strategic change. Diag- nostic control systems aim to achieve organizational goals in an efficient and effective way. It is assumed that by setting goals and rewards, each individual will act to try to achieve the established goals. Belief systems aim to motivate and commit individuals to organization values, mission, vision and overall objectives, and to stimulate active pursuit of opportunities. Boundary systems identify actions to be avoided. The opposite solution, of indicating exactly, through operational procedures and rules, what should be done, discourages creativity and initiative. Therefore, indicat- ing what should not be done frees employees to be creative and entrepreneurial - within the defined limits. The effective and joint use of the four levers ensures that the benefits of creativity are not hindered by control systems, enabling their fruitful coexistence (Davila and Ditillo, 2016; Simons, 1995). The vision of the incompatibility between management control and creativity is based on the association of control systems only with the imposition of restrictions on employees’ activity, and the association of creativity with unrestricted freedom. Reconciling both requires careful construction of management control sys- To cite this text: Freitas, A., & Oliveira, J. (2020) Management control and creativity - the case of São João National Theatre, AECA (Revista de la Asociación Española de Contabilidad y Administración de Empresa), 131, 23-25.