The Financial Perspective (Part 5)

In addition to the financial measures indicated in the literature, a metric for facilities overhead has been added as a factor to improve cost structure. Whether or not a presenter operates a venue, charges for utilities, maintenance, grounds and custodial will impact the cost structure of venue use. Utilities in particular can have a dramatic impact on cost given that facilities often involve significant square footage maintained with the requirement of a comfortable environment. Complex lighting, sound and rigging systems also use significant amounts of electricity and generate heat.

Revenue growth for the performing arts is driven by strategies to diversify, broaden and deepen participation as discussed in the customer perspective. Key financial measures for these participation goals include revenue from first time participants (diversify), revenue from repeat customers (broaden) and lifetime customer value (deepen). Table 10 summarizes revenue growth objectives and measures.

Table 10

Objectives and measures for the financial perspective; revenue growth strategies.

Financial Objective	Performance  Metric
Revenue Growth Strategy Build the Franchise Increase Customer Value	Revenue from first time participants Fundraising from foundations Percent revenue growth Corporate and business sponsorships Lifetime customer value Revenue per participant Donation per participant Net margin