Lean is creating more value for customers by using fewer resources. I think there is a huge opportunity for many arts organizations to create more value for their customers. The tough part for many organizations is the realization that becoming lean means smaller staffs or a responsibility to deliver more services. It also means that everyone in the organization is indispensable, that they must be both committed and competent in both identifying and delivering the programming and supporting services artists and audiences want.
Lean means the ticket representative and and the stagehand need to have just as much input as the development officer and the executive director. Lean may mean they are the same person. Cross functional staff is a key to becoming lean. Cross functional staff fosters understanding and innovation that identifies both the opportunities and constraints for change.
Becoming lean may can also mean outsourcing and creating partnerships. Marketing, stage labor, programming and concessions are often outsourced. Given the variability in frequency of events and their support needs, relying on organizations that service many presenting organizations eliminates excess capacity and waste.
Lean for many organizations can also mean creating volunteer opportunities, building a community of supporters who benefit from their participation through social interaction, learning new skills and being engaged with the presentation. Becoming lean also means innovating, trying new ideas and measuring outcomes.
Programming and presenting the performing arts is performed by a myriad of organizations and institutions both profit and non-profit based. The reasons for presenting the performing arts vary greatly from presenter to presenter. But at its core, the presentation of performing is about engaging audiences and artists with one another, a phase you'll hear often in this blog. The artists and the audience have many different visions of what an engaging experience means. Becoming lean starts with an understanding of which audience and which artists your presenting program is going to serve.
Becoming lean is an ongoing process of thinking critically about your organization's purpose, it's people and its customers. Your comments are always welcome and appreciated!
20120729
Power.
Many organizations use the arts to build community, create economic activity and improve quality of life. What this means depends on the choices of the organizations leaders, their values and their relationships. The performing arts become a tool rather than the focus of the experience.
20120721
New models for the performing arts.
One of the "big" stories in arts presenting this summer has been comments made by Michael Kaiser on "New Models" for presenting the arts. There have been lots of reactions both supportive and critical of Mr. Kaiser's view. The reaction that I identified most with is the blog post of Adam Hutler from Fractured Atlas. We all know the current paradigm of presenting is changing, technology is having a greater influence on how and what we experience. Broadcasts like that of the Metropolitan Opera are given as example of a "brave new world" of arts presenting.
As technology allows us to be more specific about what we experience, it is also making media distribution channels very low cost. Niche experiences in person, are becoming more scarce and more expensive. In the long run, no amount of fundraising will bridge the gap.
Artists need to and will create. But as Hutler indicates, fewer professional artists will be able to make a full time living as the stars of their art form distribute their wares through more and more distribution channels. Like sports, a few will make a very good living, the rest of us just enjoy playing the game.
I do think there is an opportunity for small community (by geography or discipline) arts organizations to grow and prosper in this changing world. The same tools that allow world domination by a few provide great opportunities for those with similar interests to connect and share. The key is building a community around the art (or space) itself, engaging one in another in what is unique to the experience. And most importantly, delivering an authentic realization of that experience.
One solution is to support and promote local and regional artists. Perhaps as more and more national acts simulcast their performance, more dollars can be used to support the presentation of those working in our communities. Think about the impact of the dollars paid to a touring Broadway show staying in the community, circulating numerous times among its participants. And sure, showing best in class simulcast's of performances is likely to be a part of the model. But so will sharing our own local artists with the rest of the world.
As technology allows us to be more specific about what we experience, it is also making media distribution channels very low cost. Niche experiences in person, are becoming more scarce and more expensive. In the long run, no amount of fundraising will bridge the gap.
Artists need to and will create. But as Hutler indicates, fewer professional artists will be able to make a full time living as the stars of their art form distribute their wares through more and more distribution channels. Like sports, a few will make a very good living, the rest of us just enjoy playing the game.
I do think there is an opportunity for small community (by geography or discipline) arts organizations to grow and prosper in this changing world. The same tools that allow world domination by a few provide great opportunities for those with similar interests to connect and share. The key is building a community around the art (or space) itself, engaging one in another in what is unique to the experience. And most importantly, delivering an authentic realization of that experience.
One solution is to support and promote local and regional artists. Perhaps as more and more national acts simulcast their performance, more dollars can be used to support the presentation of those working in our communities. Think about the impact of the dollars paid to a touring Broadway show staying in the community, circulating numerous times among its participants. And sure, showing best in class simulcast's of performances is likely to be a part of the model. But so will sharing our own local artists with the rest of the world.
20120714
Dynamic pricing.
This past 4th of July weekend I had the opportunity to experience dynamic pricing first hand. Dynamic pricing has been used by the travel, hospitality and for profit entertainment industries for sometime. A number of non-profit organizations have recently introduced dynamic pricing and there has been lots of discussion of the pros and cons. Check out the Pricing Institute website for discussion and commentary.
What concerns me about dynamic pricing is that it can easily be perceived as exploiting our audiences, undermining the trust we work so hard to build. Trust and loyalty go hand in hand. And although we can create pricing strategies that reward our best customers, I'm not sure its in our best interest to exploit the opportunity to maximize revenues on last minute buyers for the last few precious seats for a near sold out performance. Yes, the seats will likely sell and in the short term the organization may see increased revenues. Yet a number of potential buyers will balk at paying a higher price, like I did when booking a room in a tourist town in Northern Michigan. The room rate tripled from its already seasonally adjusted rate. I did find a room reasonably priced; where do you think I'll go first next time we head to this popular tourist area?
The hotel that inflated its price for the holiday lost me as a customer not only for that date, but for bookings in the off season when they need my patronage the most. No amount of discount is going to make up for what I perceived as exploitation. Now that dynamic pricing is on my radar in a personal way, I will be much more careful how and when I book travel, rooms and entertainment. I'll be much more distrustful, it will be harder to gain my loyalty, I'll be much more willing to look around for alternatives.
Dynamic pricing should be used to build loyalty and trust, not of just our repeat customers but also those customers who join us for the first time. It may be the only chance we get to show we have their best interest at heart (and we do, right?). Dynamic pricing may be here to stay, but I believe it adds another level of complexity to an already complex relationship. I'm not convinced its anyone's best interest. What do you think?
What concerns me about dynamic pricing is that it can easily be perceived as exploiting our audiences, undermining the trust we work so hard to build. Trust and loyalty go hand in hand. And although we can create pricing strategies that reward our best customers, I'm not sure its in our best interest to exploit the opportunity to maximize revenues on last minute buyers for the last few precious seats for a near sold out performance. Yes, the seats will likely sell and in the short term the organization may see increased revenues. Yet a number of potential buyers will balk at paying a higher price, like I did when booking a room in a tourist town in Northern Michigan. The room rate tripled from its already seasonally adjusted rate. I did find a room reasonably priced; where do you think I'll go first next time we head to this popular tourist area?
The hotel that inflated its price for the holiday lost me as a customer not only for that date, but for bookings in the off season when they need my patronage the most. No amount of discount is going to make up for what I perceived as exploitation. Now that dynamic pricing is on my radar in a personal way, I will be much more careful how and when I book travel, rooms and entertainment. I'll be much more distrustful, it will be harder to gain my loyalty, I'll be much more willing to look around for alternatives.
Dynamic pricing should be used to build loyalty and trust, not of just our repeat customers but also those customers who join us for the first time. It may be the only chance we get to show we have their best interest at heart (and we do, right?). Dynamic pricing may be here to stay, but I believe it adds another level of complexity to an already complex relationship. I'm not convinced its anyone's best interest. What do you think?
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