Festivals are increasingly important ways of organising. Often intended as field-configuring events (FCEs), they have the power to constitute, configure and maintain institutional fields. Despite this, their significance has been largely overlooked and associated research is in its infancy. Festivals often operate at the interface between permanent and temporary organising which leads to the emergence of various tensions. Based on a qualitative study of the Venice Biennale and its Venice International Film Festival (VIFF), this chapter shows how the oldest but also one of the most innovative cultural institutions, with its cultural festivals and exhibitions, manages the tension between tradition and innovation. We unveil the fundamental role of organisational identity in making innovation a traditional value in a cultural organisation. We also look at the tension between tradition and innovation through the temporality lenses of the past, present and future. Some other challenges faced by the Venice Biennale and its VIFF are explored. The chapter mainly contributes to the literature on cultural festivals, project organising and the extant evidence concerning tensions and contradictions.