The Cycle: A Practical Approach to Managing Arts Organizations

Introduction

1 introduction I am always amazed when speaking with groups of arts leaders that sports are mentioned in a disparaging way: “Why are sports so popular while we in the arts are underappreciated, if appreciated at all.” The word sports is almost always said in a sneering tone, as if it were one step above porn. (I must confess, I am as big a fan of baseball and football as I am of opera and ballet.) I always respond in the same fashion: sports teams have done a far better job of building allegiance and making the fan base feel a part of the team than we have in the arts. In fact, we in the arts have a lot to learn from the sports world. Most sports teams do a superb job of making a compelling product, marketing both the games themselves but also the team as a whole to fans, and making fans feel part of the effort. For those that do this successfully , this approach generates revenue for the teams that they spend on better players who improve the chances that the team will win the following season. Better teams are easier to market and attract more fans who produce more revenue for the acquisition of even better players , and on and on. This cycle is identical to the one that works for arts organizations (see fig. 1). Successful arts organizations make interesting art that they market aggressively to potential customers. But at the same time, they must create allegiance to the organization; this is what motivates subscribers, contributors, board members, and volunteers to participate. When the arts organization attracts supporters, they produce revenue that the arts organization can use for creating better art the next season. This art, supported by aggressive marketing campaigns, attracts new supporters who produce more revenue. I have spent too large a portion of my twenty-eight-year arts management career working for and counseling troubled arts organizations— organizations that, for one of many reasons, failed to build the support bases they needed to thrive. I have even written a book about turning t h e c y c l e 2 around arts organizations in danger of going out of business. Spending so much time with troubled institutions has, I hope, yielded insights into what makes an organization healthy. In short, I have found that healthy arts organizations have an internal engine that powers consistent success. These organizations are clear about their missions and develop programming that embodies these missions. That programming is anything but predictable: it is exciting, dynamic, and surprising. However, simply creating strong programming, unfortunately, is not enough to guarantee success, especially when that programming is unfamiliar to the traditional audience. Healthy organizations excel at creating visibility for their art among large numbers of constituents. They do this in two ways. First, they pursue strong, sophisticated programmatic marketing campaigns that compel people to buy tickets, enroll in classes, attend exhibitions, etc.—in short, to participate in the programs of the organization. But they do more. They also create exciting activities that draw people to the organization as a whole. These institutional marketing activities do more than encourage people to buy tickets—they create a sense of enthusiasm and focus around the organization that attracts donors, board members, and volunteers. I call this group of external supporters the family. The family is crucial . If it is happy, growing, and engaged, and marketing and fundraising Sports Arts • Audience • Volunteers • Board • Donors Figure 1 i n t r o d u c t i o n 3 efforts are strong, the organization will enjoy a high level of earned and contributed income. When this revenue is reinvested in additional exciting programming, which is marketed well, the family grows, and revenue does as well. This revenue can then be reinvested in more adventuresome and diverse programming year after year. This cycle is the hidden engine enjoyed and employed by healthy arts organizations. When it is humming—when money is coming in and programming is thriving—staff, board, artists, audience, and donors feel a balance and a confidence in the future. (One of the corollary benefits of implementing the cycle is that everyone on staff knows their role in creating a healthy, successful organization and also appreciates the roles of other departments. This prevents the silo mentality that constrains many arts organizations.) When it isn’t working, arts organizations begin to...