Strategic Management in the Arts

377 Pages·2012·16.309 MB·English

by  Lidia Varbanova

Strategic Management in the Arts
Strategic Management in the Arts looks at the unique characteristics of cultural organizations and shows
readers how to tailor a strategic plan to help these organizations meet their objectives.
Strategic management is an essential element that drives an organization’s success, yet many cultural
organizations have yet to apply strategic thinking and action within the management function. Var-
banova reviews the existing theories and models of strategic planning and then relates these specifically
to cultural organizations. Also included are sections on entrepreneurship and the concept of a ‘learn-
ing organization’—an organization able to adapt its strategy within a constantly changing, complex
environment. The book is structured to walk the reader through each element of the strategic plan
systematically.
With key questions, examples, cases to connect theory with practice and suggestions for further read-
ing, this book is designed to accompany classes on strategic planning, cultural management or arts
management.
Lidia Varbanova is a faculty member of the Department of Management at John Molson School of
Business, Concordia University, Canada.

Strategic Management
in the Arts
Lidia Varbanova
First published 2013
by Routledge
711 Third Avenue, New York, NY 10017
Simultaneously published in the UK
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2013 Taylor & Francis
The right of Lidia Varbanova to be identified as author of this work has been asserted by her in
accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by
any electronic, mechanical, or other means, now known or hereafter invented, including photocopying
and recording, or in any information storage or retrieval system, without permission in writing from the
publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only
for identification and explanation without intent to infringe.
Library of Congress Cataloging in Publication Data
Varbanova, Lidia.
Strategic management in the arts / Lidia Varbanova. — 1 [edition].
pages cm
Includes bibliographical references and index.
1. Arts—Management—Textbooks. 2. Strategic planning—Textbooks. I. Title.
NX760.V37 2012
700.68—dc23
2012018326
ISBN: 978-0-415-53002-6 (hbk)
ISBN: 978-0-415-53003-3 (pbk)
ISBN: 978-0-203-11717-0 (ebk)
Typeset in ApexBembo
by Apex CoVantage, LLC
To my beloved parents Nikolinka and Dimitar

Contents
Foreword xi
Preface xiii
Acknowledgements xvii
1 Innovation and Entrepreneurship in the Arts: A Strategic Approach 1
1. Types of Organisations in the Arts and Culture Sector 2
2. Arts Organisation: Resources, Processes and Results 5
3. Innovations in the Arts: Categories of Innovations 8
4. Arts Managers: Profiles and Functions 13
5. Entrepreneurship in the Arts 14
6. Intrapreneurial Arts Organisation: Main Characteristics 19
7. Intrapreneurial Process in an Arts Organisation 21
2 Strategic Management: Essence, Role and Phases 24
1. Strategic Management and Planning: Historical Development 24
2. Strategic Management as a Process to Manage Changes in Arts Organisations 28
3. Phases of the Strategic Management Process 30
4. Reasons for Strategic Management in the Arts 35
5. Why Is Strategic Management for Arts Organisations Special? 36
6. Reasons for Resistance to Implementing Strategic Management in the Arts 37
7. Key Terminology in Strategic Management 38
3 Strategic Planning Process, Methods and Types of Plans 40
1. Strategic Planning: An Overview 40
2. Main Strategic Planning Principles in the Arts 42
3. Preparing for Strategic Planning 43
4. Approaches and Methods of Strategic Planning: The People Factor 44
5. The Plan: An Overview 47
6. Types of Plans 48
7. Projects and Plans in the Arts 50
8. Rationale and Structure of a Strategic Plan 52
4 Strategic Thinking: Vision, Mission and Objectives 58
1. The Importance of Organisational Identity 58
2. Vision, Mission and Organisational Values 60
3. Organisation’s Name, Logo and Slogan 65
4. Objectives: The Three-Dimensional Framework 67
5. How to Set SMART Objectives 70
6. Example of a ‘Mission, Vision and Objectives’ Section of a Strategic Plan 72
vviiii
viii Contents
7. Case: International Council of Museums (ICOM): A Strategy for Networking
in the Global Museum Community 73
8. Case: INTERARTS (Barcelona, Spain): Knowledge-based Approach to Strategic
Management and Planning 79
5 Strategic Analysis: The Arts Organisation and Its Environment 86
1. Strategic Analysis: An Overview 86
2. Understanding and Analysing the Macro-External Environment 88
3. Cultural Policy as an Element of the External Environment 92
4. Understanding and Analysing the Micro-External Environment:
Industry and Market Analysis 95
5. Understanding and Analysing the Internal Environment 101
6. Preparing to Define a Strategy: Critical Success Factors 104
7. Example of ‘SWOT Analysis’ Section of a Strategic Plan 107
8. Case: Vishtynetsky Ecological and Historical Museum (Kaliningrad Region, Russia):
Community Ownership as a Powerful Factor for Breaking Isolation and
Achieving Sustainability 108
9. Case: MT Space ( Waterloo Region, Canada): Engaging Culturally
Diverse Artists and Communities 113
6 Choice of Strategies 120
1. What Is a Strategy, and Why Is It Important in the Arts? 120
2. Classification of Strategies 121
3. Main Organisational Strategies 124
4. Strategies for Integration, Cooperation and Networking 128
5. Product ( Programme)-Market Strategies 131
6. Competitive Strategies 136
7. Evaluation of Alternatives and Choice of Strategies 139
8. Example of a ‘Strategies: Options and Choices’ Section of a Strategic Plan 140
9. Case: ODA Theatre (Pristina, Kosovo): Competitive Advantage and Strategic Choices 141
10. Case: Arts Council of Mongolia: Capacity-Building Strategy for Preservation of
National Arts and Culture in the Era of Globalization 147
7 Marketing, Creative Programming and Audience Development Plan 155
1. Why Use Marketing in Arts Organisations? 155
2. Strategic Marketing Objectives 158
3. Digital Marketing 160
4. Audience Development Strategy 161
5. Audience Research 164
6. Marketing Mix Recipe: The Four Ps of Marketing 168
7. Creating and Managing an Online Space 179
8. Example of a ‘Marketing, Creative Programming and Audience Development’
Section of a Strategic Plan 182
9. Case: Exodus Festival ( Ljubljana, Slovenia): Making Contemporary
Art Accessible 184
10. Case: Belgrade Philharmonic Orchestra (Belgrade, Serbia): Revitalisation through
Artistic Quality and Management Integrity 192
8 Human Resource Management Plan 198
1. The Human Resource Management System in an Art Organisation 198
2. Organisational Structures and Internal Regulations 202
Contents ix
3. Analysis and Evaluation of Personnel’s Potential: People and Jobs 207
4. Finding the Right People for the Right Job: Recruitment and Selection Stages 210
5. Investing in People: Motivation, Training and Professional Development 211
6. Human Resource Management Strategies: An Overview 216
7. Example of a ‘Human Resource Management’ Section of a Strategic Plan 217
8. Case: Intercult (Stockholm, Sweden): Seeking a Sustainable Human Resource
Strategy in a Collaborative Cross-border Environment 218
9. Case: Framework ( Toronto, Canada): Effective Strategic Management through
Online Sharing and Collaboration 223
9 Technological and Production Plan 229
1. Terminological Orientation 229
2. Material Resources, Equipment and Information 230
3. Technological and Production Processes in an Arts Organisation 233
4. Production Capacity 235
5. Innovations, Research and Development in the Arts 235
6. Example of a ‘Technological and Production’ Section of a Strategic Plan 237
7. Case: Caravansarai (Istanbul, Turkey): Success Factors and Sustainability Issues in an
Artist-run Space 238
8. Case: Moral Fibers (Montreal, Canada): Ethical Brand Helps Artistic Communities in
Developing Countries 243
10 Financial and Fundraising Plan 248
1. Basics of Financial Planning 248
2. Budgeting 249
3. Main Financial Sources for Arts Organisations 251
4. The Fundraising Plan: An Overview 255
5. Fundraising from Foundations: Project Proposal 257
6. Gaining Support from Sponsors 263
7. Fundraising through Charity Events and Individual Donations 268
8. Accounting Process: An Overview 270
9. Main Financial Statements 271
10. Interpreting Financial Information 274
11. Example of a ‘Financial and Fundraising’ Section of a Strategic Plan 276
12. Case: Birthmark on the Map (Novosibirsk, Russia): Telling Stories about Rural Russia.
Local Branding in an International Context 279
13. Case: Auditorium Parco della Musica ( Roma, Italy): Opportunities and
Challenges in Managing a Large Venue 284
11 Implementation, Monitoring and Strategic Reflection 290
1. Implementation and Monitoring 290
2. Performance Indicators 291
3. Risk Management 293
4. Working with Volunteers 295
5. Final Evaluation 297
6. Sustainable Approach to Plan Implementation 298
7. Communicating Results 300
8. C ase: Lokomotiva Centre for New Initiatives in Arts and Culture (Skopje, Macedonia):
Collaborative Contribution to Sociocultural Changes in a Country 301
9. C ase: MAXguide.org (Metro Vancouver, Canada): A Collaborative Strategy to
Communicating Arts and Culture across the Region 306