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Strategic Planning in the Arts: A Practical Guide
The Planning Environment
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PHYSICAL EXPANSION
When a major expansion is under consideration, the planning calendar can be a bit more relaxed. But the case for pursuing a broad planning effort is just as compelling. Too often, organizations in this situation look simply at the design of the facility, the cost of construction and the feasibility of the campaign. Too little time is spent reviewing what is needed for a smooth transition to the new space, the marketing, fund-raising and other operating requirements for supporting that facility and the impact of the expansion and the campaign on the staff and Board.
In fact, many organizations only begin serious strategic planning after designs for the new building are completed. This leaves little room for the planning process to affect the design. While the excitement generated around architectural drawings is significant and understandable, arts organizations must discipline themselves to complete major planning processes before any designs are initiated. This allows the plan to address the marketing, staffing, Board expansion and fund-raising issues that must be solved before a major expansion. It also allows the campaign to be specified more accurately by including all the costs the expansion will incur, not simply the capital costs. Yet too many Boards and staffs get so excited about the facility design that serious, rigorous, organized planning efforts fall by the wayside.
LOSS OF MAJOR FUNDERS
Like organizations in fiscal crisis, those that lose the support of a major funder have waited too long to plan. Unless there is flexibility to reduce expenses in the short-term (assuming the fund-raising and earned income efforts cannot be expanded in the very short-term), the financial implications will be substantial.
The answer to the loss of a major funder is not to seek a single replacement funder. Rather, the organization must find a way to enhance its visibility or to exploit its current visibility to attract a larger circle of funders.
Working actively to strengthen the Board is frequently an important element of this strategy. As mentioned previously, the plan itself will provide one of the most potent tools for soliciting new Board members. The plan gives Board prospects a clear picture of the direction of the organization and the way their efforts will be helpful. Those prospects from the corporate sector will be familiar with business plans and will appreciate the apparent rigor of the planning process.
CHANGES IN LEADERSHIP
When an organization experiences changes at the highest level of the Board or staff, the plan becomes an important transition tool. The new leaders can use the planning process to create a renewed sense of direction and vitality, effectively addressing the organizational insecurities that attend any change in leadership. This is particularly true when a visionary leader leaves the institution; new leaders must be given the opportunity to create their own platform.
STABILIZATION
Some planning processes are undertaken when an arts organization decides to make an effort to achieve long-term financial stabilization. (Frequently a special gift from a major donor inspires this decision.) Stabilization is one of the best reasons for embarking on a planning process.
Yet stabilization requires more than financial analysis and a campaign plan. The definition of a stabilization strategy must be broadened to include the operational actions that create financial security in the arts. Simply erasing an accumulated deficit, building an endowment or creating a working capital reserve is not enough to stabilize an organization. The artistic, marketing and development plans must also support on-going revenue generation.
Without long-term revenue growth, a stabilization campaign really only provides a few years of cash flow relief - not a bad thing but not real stabilization either.
NEW ORGANIZATIONS
Very few new arts organizations initiate any form of rigorous planning. The effort it takes to mount a first production and the limited availability of money and managerial expertise makes it difficult to think about the future in an organized manner.
Unfortunately, the failure to think of the first production as part of a continuum can be quite costly. Donors and ticket purchasers who support the first performances are not adequately engaged, people who can provide support in the future are not asked to attend, and members of the press are not cultivated for future coverage.
While developing a comprehensive long-term plan for a new arts organization may not be justified, or even possible, a simple two year plan can be very effective. Evaluating environmental issues and developing basic strategies for dealing with them can help set priorities, attract Board members and convince institutional donors that this new company is approaching its future in an intelligent manner.
Whatever the situation facing an arts organization, plans are only as effective as the people who create and implement them. Employing sophisticated planning techniques is considerably less important than finding the best people to develop strategies and manage their implementation. Yet, armed with strong analytical techniques and a logical planning framework, a well-managed arts organization with an effective Board and, most important, a high quality artistic product, can create plans that accomplish a wide range of initiatives.
In the end, however, it all comes down to probabilities. No one can promise that the building will be expanded, the tour will be enlarged or the deficit will be erased - or that they won't. Turning your dreams into strategies simply increases the odds that they will come true.
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