The Art of the Turnaround: Creating and Maintaining Healthy Arts Organizations

The Art of the Turnaround: Ten Rules

the art of the turnaround ten rules .............................................................................. .............................................................................. .............................. .............................................................................. .............................. case one kansas city ballet (1985–1986) .............................................................................. .............................................................................. .............................. .............................................................................. .............................. case two alvin ailey dance theater foundation (1991–1993) .............................................................................. .............................................................................. .............................. .............................................................................. .............................. case three american ballet theatre (1995–1998) .............................................................................. .............................................................................. .............................. .............................................................................. .............................. All turnarounds are different and yet all turnarounds are the same. While the size of the problem, the organization’s visibility, the involvement of government agencies, and the personalities of the key players may vary, in almost every case, one enters an organization that is suffering from poor cash flow, negative press, and angry artists, staff, donors, and board members. The specific strategies that will solve the problem will depend upon the characteristics of the organization, but I have found that there are ten rules that apply to every turnaround. Ignore any one of them at your peril! 1. someone must lead In most troubled arts organizations, the role of leader has become divided into two or more (usually warring) camps. Rather than the “strong volunteer chairperson supporting a dynamic and committed staff head” model that healthy arts organizations enjoy, troubled organizations typically suffer from a diffused leadership structure as numerous parties try to “help.” Often board members come to believe that the staff is not competent and begin to poach on the staff’s territory. When I arrived at the Royal Opera House, for example, the board met weekly for several hours. A portion of this time was devoted to editing press releases and performing other mundane tasks that are truly the work of the staff. But if board members are scared about the future of the organization and doubt the capabilities of the staff, they tend to jump in to fill the breach. At the same time, the staff is often making decisions without board involvement because “the board has not been as helpful as it should be” and because the board, without the day-to-day knowledge of the staff,  ....... the art of the turnaround typically does not develop reasonable solutions. When several different people feel empowered to make crucial decisions, there can be no real progress as the various parties pursue their own priorities and waste scarce resources. Someone must be selected to run the turnaround. This person must have a single unified vision for the organization, have the courage to make difficult decisions in the face of controversy, possess strong negotiating skills, respect all parties including artists, work incredibly hard, and have an obsessive focus on solving the problem. This person must also understand marketing, fund-raising, and financial management. It is a hard job description to meet but the job cannot be divided among many people. I have been asked to play this role numerous times in my career. I have found that entering from the outside made it easier to succeed since I had no history with any organization I have managed; I had no preconceived notions, no embedded allies or enemies, and no motive except to see the organization prosper. I was fortunate that in every case my board gave me the authority I needed to preside over the turnaround. Had this not been the case, I would not have succeeded. Before a board can cede authority to one individual, especially an outsider, it must truly understand that it needs a turnaround. One would think that this should not be a problem since so many people—staff, board, donors, press—talk about the many failings and cash concerns are so prominent. And yet, I have observed many organizations that are not willing to make the dramatic changes necessary to fix their central problems. It is only when the organization reaches a true crisis point that they recognize a major change is required. This is typically the point at which I am hired. 2. the leader must have a plan The leader needs a plan, and fast. The leader cannot simply be strong, determined, and charming. The leader must have a tangible road map that suggests how the organization will become a functioning and stable organism once again. And this plan must be communicated early and often to all the various stakeholders: artists, staff, board, volunteers, press, government agencies, and audience. .......  ten rules The plan must set priorities: it need not focus on every shortcoming of the organization. In almost every turnaround there are three or four key issues that must be addressed. While the result of a period of poor performance typically is that many areas are neglected, not every...