Strategic Planning in the Arts: A Practical Guide
Internal Analysis The Management Audit
The internal analysis reveals an organization’s most salient strengths and weaknesses. An honest appraisal, or “audit” of company operations, coupled with a revealing environmental analysis, provides a strong foundation for creative strategy development.
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While the external analysis suggests the constraints and opportunities presented by the environment, the internal analysis reveals the strengths and weaknesses of a particular organization. Matching the results of the internal analysis with the requirements for success revealed in the industry analysis identifies those areas of strategic concern. If one key for success for a modern dance company, for example, is a strong touring program, a non-touring organization must address this shortcoming explicitly in its strategic plan. Conversely, a company with a thriving tour program should strategize to protect this important asset. This does not imply that every modern dance company should have the same strategy or should aim to operate in one prescribed manner. Rather, a modern dance company that cannot, or chooses not, to tour must accept the consequences of that decision.
As with peer company analysis, each element of the company's operations should be scrutinized. While it is obviously easier to obtain more data for internal analysis than for peer company analysis, it is far more difficult to interpret that data objectively. Some organizations rationalize away any negative reviews, fund-raising shortfalls, or earned income problems. Others are too critical of their own capabilities, believing that other organizations do everything better. An honest appraisal of weaknesses and strengths must be developed; nothing is gained from being overly generous with praise nor is there any point to self-flagellation.
The most effective way to perform an internal analysis is to conduct an "audit" of operations. This evaluation creates a profile that can be compared to that of a "typical" arts organization. While no two arts institutions mature in exactly the same manner, many develop in a similar series of stages:
STAGE ONE: THE DREAM
Virtually every arts organization begins as the dream of a visionary. The goal may be lofty ("providing access to great art to people of all backgrounds") or more personal ("providing an opportunity to show my work") or some combination of the two.
Artists who decide to leap into self-production will follow very different paths depending upon two vital characteristics: talent and money. Great artists, at least those who are perceived by the world as great artists, can build an earned income base and, eventually, a contributed income base as well. Those artists with sufficient financial backing can "buy" some measure of success. These lucky few (and they are getting fewer and fewer each year) can establish a Board of Directors, receive bookings, sell tickets and raise funds. If they approach these activities in an organized manner, they can mature in a rather painless fashion.
But most artists who launch organizations do not have this bounty and must start with little acclaim and less money. They will typically save up for one initial project, frequently with the support of family and friends. The project goes well, everyone offers positive feedback (except, perhaps, the critics, who may pay no attention whatsoever) and the artist is convinced that the applause will go on forever.
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