More Impact Of The Economy Conversation

Yesterday, the Association of Performing Arts Presenters had a follow up to the conference call on the economy I listened in on in December. Given that there weren’t enough phone lines to accommodate all those who wanted to attend, this time they employed a webinar format so people could attend online. You either listen directly or download the web session.

The call is about 90 minutes long and many on the panel mention strategies and opportunities people can take. What caught my ear and interest were the approach to programming described by Marilyn Santarelli, Executive Director of the F. M. Kirby Center for the Performing Arts. She talks about how she is re-negotiating payments to artists per Numa Saisselin’s suggestions in “Arts Presenting Is Dead.”

As Saisselin suggests, she goes to the artists and talks about their sales to date, their marketing efforts and are honest about their break even point. They asked that the artist share in the risk and lower their price. They proposed that after reaching the break even point, they would start to restore to the artist “dollar for dollar from the first dollar whatever discount you gave to us.” She found the artists that bought in to this option worked harder to help promote the show with more interviews, b-roll, etc. The alternative, she told them, was canceling the show.

It sounded as if they had only done this starting last December. I am curious to know if this inhibits her planning for her upcoming season as artists and agents worry that what they initially negotiate may not be final. Likewise, would they be more open to booking with someone who has a workable alternative to cancellation if things go poorly.

She also talked about their ticket sales strategy. Her organization is discounting early in the season and offering discounts to a wider variety of people including subscribers and sponsors. I am not sure, but it sounded as if they were expanding the groups of people who are eligible for discounts. As the season goes on, the prices will go up. She hopes if they message this approach correctly, people will buy early realizing they are getting a bargain. No mention of whether they were loosening their exchange policy for people who committed early. The Kirby Center has only implemented this on a few show so far and did so because 60% of their sales were happening in the last few weeks. I suspect that this approach will vary in success from community to community and some will still rather wait and see than to buy now and that the higher price closer to the date may prove a disincentive to those with many options.

These are just some of the strategies and opportunities being employed that are mentioned in the webinar. If you are eager for a little guidance, give it a listen.

Overhaul The Arts And Install New Standards

Couple weeks back I mentioned I wanted to explore the idea of greater standards and training for administrators and board members Numa Saisselin floated in his “Arts Presenting Is Dead” piece. As one might imagine, from the number of times I have cited it, I was pleased to see Saisselin cite the Conversations With The Field study Neill Roan did for APAP which noted learning was not valued in the arts presenting field.

Saisselin feels that service organizations like APAP need to be more aggressive about identifying and contacting new entrants to the field and providing them with the basic information they will need even if the new presenter is not a member of their organization.

Just as the model of a modern presenting organization is shifting towards earned income, and on the fundraising side, earned income tactics, the model of a service organization should be shifting away from the all-access or no-access membership model, and towards an aggressive recruiting model that incorporates at least some free exchange of information.

While I agree that any organization/company/corporation is better served by actively engaging its constituencies, given the ease with which small groups can enter the field and operate on a limited basis, I am not sure how easy it might be find and identify these entities. I suppose they could start by looking through the records of where artists have recently performed in trade magazines and websites like Pollstar.

He likewise suggests that individuals avail themselves of free sources of information – “For example, Musical America, Celebrity Access and Billboard Magazine all publish free weekly newsletters by email. Countless fundraising, accounting and management firms publish their own newsletters, which often include lengthy and useful papers and articles.”

He bemoans the dearth of arts management training programs in higher education but seems to acknowledge that many working professionals don’t have the time to return to school for training. Saisselin suggests a certification system similar to one developed by the International Association of Assembly Managers (IAAM). I took a look at their website and it seems to be a pretty rigorous set of requirements to obtain various certifications.

Arts service agencies might do well to consider developing something similar. They have the example of the IAAM program to use as a type of template given the overlap in a number of areas. They also have the benefit of being able to consult with the existing arts management programs about the training they provide. In turn they can suggest what college students should be taught if they want to be employed. While the colleges may not be able to host classes for the busy arts professionals, they might prove good regional testing sites on weekends.

The observation Saisselin made that most interested me because I hadn’t encountered it before was in regard to board training. He makes some common observations about how poorly board members understand and are educated as to their duties. Then he relates an anecdote about a time when he and a friend were considering leaving their jobs. The friend worked for a radio station and had a fairly constructive conversation with a supervisor who understood the desire to move on and discussed the pros and cons of doing so.

Saisselin’s board was hurt that he was considering moving on and while he stayed, the dynamics between the board and himself were strained.

“….the component that is pertinent to this discussion is this: my friend’s boss was straightforward in the way he dealt with this scenario, because he worked in the same field she did, and he understood first hand why she was thinking about making a move. My board, on the other hand, with no career experience of their own in the field, responded the only way that they could: emotionally.

There is a critical weakness at the executive level of the nonprofit arts field: board members join a company at the very top of the organizational chart, but more often than not they have little or no experience in the field themselves as working professionals. Experienced board members may have vast knowledge about being a board member, but there is no way for them to personally understand the issues that professional staff members must be concerned about on a daily basis, or when thinking about their own lives and career. A board member’s personal commitment may run deep, and a paid staff member’s personal commitment may run just as deep, but the motivations of each for being involved in an organization in the first place, and for sustaining that involvement, are very different.”

Now my perception is that appointments to for profit boards aren’t necessarily made with people in the same field. Though there may be more uniformity in the way boards of widget manufacturers and banks operate than one of them and a non-profit board. The whole practice of placing inexperienced people at the top of an organizational structure may actually be flawed regardless of industry.

An emotional reaction may not be something that non profit organizations can escape. A year ago I talked about how the high emotional satisfaction people experience working in the arts may inhibit their desire to improve themselves. Boards involved with non profits may be so invested in the organization’s cause, it might be difficult to favor a rational reaction over an emotional one.

Frankly, I think other employees are likely to feel betrayed by a fellow who is letting the cause down or, given the generally poor pay and working conditions, escaping. Board members are probably more likely to be uniformly hurt than seasoned colleagues but I don’t think all bosses will be as supportive as Saisselin’s friend’s.

Saisselin extends his idea of insuring quality to the industry as a whole citing the example of the regional accrediting bodies which set the standards for institutions of higher learning. I get a little nervous at this suggestion. I am all for increasing the quality of arts organizations. I don’t know if formal accreditation is the way to go. Such a process is incredibly time consuming and diverts a lot of resources. For colleges, loss of accreditation means, among other things, loss of access to funding sources. I would be afraid that arts organizations that do good work would lose out on grants and foundation support because they didn’t have the wherewithal to complete an accreditation process. One of the biggest complaints people have about charities is the high percentage of their donation that goes toward administrative overhead. Accreditation process has to be incredibly well thought out to avoid this situation.

All this being said, Saisselin mentions that the granting process constitutes a de facto peer review system but that it is a binary result. You are either funded or not.

Beyond funding an application, or not, and in some cases providing applicants with a written summary of the panel’s comments, there are no “next steps” to assist organizations that don’t measure up, and the field at large desperately needs to take those next steps to strengthen the field at large.

There is no avoiding the fact that meeting greater standards requires increased effort above what is already being done. And there is no guarantee that meeting those standards will lead to greater organizational success. It is painfully clear to many in the entertainment industry that high quality product doesn’t necessarily draw a larger audience.

If there is an industry wide push for higher standards it is certain there will be instances of greater efficiencies, more effective leadership, constructive partnerships and more united advocacy efforts. But none of it is guaranteed to happen to you the individual or to your organization. In fact, the obscene inefficiency of your company may be revealed in the course of this movement putting you out of a job.

So what is your motivation as a belabored arts professional to join an effort that provides no surety of things improving for you? Well, that is about the same promise you had when you made the decision to devote your life to the equally abstract concept of artistic excellence.

It Might Not Be Entirely Dead Yet

The president of my consortium went to a Western Arts Federation meeting and returned with some materials for the membership to read. One of the more provocative pieces was written by Numa C. Saisselin, Executive Director at the Count Basie Theatre entitled “Arts Presenting Is Dead.” (Full disclosure, I once interviewed with Numa for a job at the Count Basie.) Unfortunately, the document isn’t online. I would have to make some inquiries to get permission to store it on my blog.

Numa’s basic premise about presenting being dead is that the practice of offering “serious work” like “theatre, dance, classical music, and maybe the occasional folk singer” and being successful focused on doing only that is no longer viable. What has eroded this situation are elements of which we are all generally aware: The low barriers to entry of the presenting field means there are more people doing it in the general vicinity; competition comes not only from other performing arts organizations, but sporting events, television, computers; costs are going up but earned income, drop in corporate support and other economic factors make it difficult for presenters to break even; organizations aren’t doing new things to attract new audiences; “every market is different, but by and large we all compete for the same programs” and “every market is different, but by and large we all employ the same generic marketing strategies.”

Saisselin does a good job tracing the direction things have been headed and giving concrete examples of how his organization has faced each of these essential areas. The way he has found success is to become more nimble in his programming focusing less on establishing a concrete season for people to subscribe to and more on taking advantage of opportunities that present themselves in the short term and then communicating these new developments with his mailing lists. While they take the long view on some things, he likens his approach to that of a concert promoter rather than the traditional definition of a presenter.

He notes this approach may not work, and should not work, for everyone given that every market is different. He also acknowledges that his organization has to ask granting entities to have faith in them since they don’t have a concrete idea about what they may do with the money at the time of application.

One of the benefits of his approach is that it allows him to take advantage of opportunities where an agent is offering an artist at a lower price in order to keep them busy between performances. Saisselin feels that presenters need to move even beyond this and educate themselves more about artistic fees rather than blindly accepting what is asked. There are databases of artists performances all over the country that can allow you to compare yourself to similar communities to get an idea of what attendance was like and what ticket price was charged.

Now I know none of this sounds terribly provocative. I included most of this narration so you could get a general idea where Saisselin was coming from. What I am told has quite a few people up in arms and calling him irresponsible for suggesting is that presenters be able to cancel a performer 30 days out.

If the artist can cancel a date on 30 days notice to take a more important gig on a TV show, a feature film, or in a Broadway production; or a more lucrative gig in Atlantic City, Las Vegas, Reno or Tahoe; or in some cases for any reason, then the presenter should have the option of canceling on 30 days notice if ticket sales do not warrant proceeding. If the artist has the option of canceling to enhance their overall career or make more money, then the presenter should have the option of canceling if it’s going to lose money, or at least if it’s going to lose a lot of money.

From the artist’s and management’s perspective, not allowing presenters a cancellation option protects the artist from bad presenters. In other words, if the presenter does not do their job, the artist should not suffer, and that makes sense. But if the presenter does do its job, and tickets still do not sell, artists, agents and managers should accept at least a measure of responsibility. If we’re really all in this together, we should share the pain as well as the rewards.

He notes there is already an unofficial process one can follow to achieve this that generally ends up with the presenter paying 50% of the artist fee as a cancellation penalty. He suggests making it a formal part of contracts. While the presenter will still realize a loss, it won’t be a debilitating one

The presenter would be required to jump through some hoops to make such a request. When booking an artist, the presenter would have to submit a marketing plan, and satisfy management that the plan is reasonable, and has worked in the past. When making a cancellation request, the presenter would have to document that they had followed through on the marketing plan, without achieving the desired results…

…Artists would not be forced to play for half empty (or less) houses to collect their check, but in the event of a cancellation would still be fairly compensated for reserving the performance date. Agents and managers would be saved from having their artist develop a reputation as a box office loser, and would have the opportunity to revisit and revise their own strategies, perhaps getting their artist into smaller rooms, and building or rebuilding their artist’s career in another way. Presenters would be saved from throwing good money after bad when they already know a show is not selling.

He goes on to make some good points about improving standards for arts managers and boards of directors which I hope to address in later entries. For now I just wanted to float this idea. I am not quite sure how I feel about it. Assuming the practice moved in this direction either through active efforts of presenters or by default as tough economic times make the unspoken procedures into the standard, is it a direction we want to head?

It is easy to get angry at ever increasing fees and being left in the lurch by artists and talk about leveling the field in the abstract. There can be some unwanted repercussions though. I have been to the booking conferences and there the dynamic is one where the presenters have all the power. Artists and agents complain that presenters won’t acknowledge them or meet their eyes as they pass. I suppose if more people moved to act as promoters as Saisselin has, then fewer arrangements will be made at conferences and more will be made as a result of emails and YouTube videos. Not to imply artist cancellations for a better gig is revenge for the conference snub, but maybe it will be good if that uncomfortable vibe was removed from the equation.

My concern is that the money factor becomes a larger issue and emerging artists get further marginalized if 30 day cancellations become standard. Is an agent or manager really going to invest time in cultivating someone who is yielding them a percentage of 50% fee or are they going to go with the known quantity that dependably fills seats?

Certainly, the internet allows people to promote themselves fairly well so they don’t have to rely on an agent. For those like me who already get a constant stream of artist availability emails, more virtually unknowns adding themselves to the mix only makes things more difficult. As evil as agents may be made out to be, the good ones develop relationships with you that enable them to provide appropriate advice to presenters. Saisselin mentions his appreciation for an agent that invested years in a relationship with him before he actually booked an artist.

One road to success I can see is if the economy gets so bad that presenters turn their attention to seeking out low cost regional and local performers. Sasselin mentions how the record single went out of vogue only to come back again thanks to the iPod. Perhaps the impresario will make a return of sorts as people with theatre facilities turn their attention to cultivating the careers of regional artists as agents drop them.

Sasselin’s proposal is certainly something to consider in some form or another in order to relieve the pressure on presenters. I don’t think it can be applied in as straightforward a manner as he suggests.

**One thing that did occur to me as I was writing is that it would be great for the small touring artist if someone would create a piece of online software that integrated communications, scheduling and maps. That way a person could email, IM, etc about a gig, have the mapping feature tell them if it is actually reasonable to drive/fly that distance in the time allotted between gigs and then place it in a schedule they can access while on the road. Heck, if it could suggest flights, car rental places and hotels, that would be great too. (Except I imagine the top suggestions would be positioned there by paid advertising and may not be the most affordable for our struggling artist.)**

Fought The Board and The Board Won

With Drew McManus’ post about Scorched Earth Governance today, I thought I would share my own tale of overbearing boards. My story isn’t as extreme as anything Drew mentioned but it does illustrate boards micromanaging, perhaps to the detriment of the organization. I haven’t told this story before out of respect for the Executive Director who had to continue working with the board. About three weeks ago, I noticed the ED position was being advertised and upon further checking discovered the ED had moved on to fresher fields.

When I write that decisions were made “perhaps to the detriment of the organization,” it is because this involves a job for which I was interviewing. Obviously I can’t make an objective judgment about whether the person who got the job was better for the position. This isn’t a disgruntled story about how poorly I was treated. It was only because the experience was so strange that I felt the need to record notes on it. I actually felt highly complimented and valued by the whole situation. It is the Executive Director who was probably came away with the worst of it.

A number of years back I had interviewed for a General Director position at an arts center. The position required that I handle a lot of the financial aspects of the center. It also required that I have a great deal of involvement in operations of an annual festival and troubleshoot problems that arose with classes and artist residencies. I would be the first person called in the middle of the night.

After the interview, I pretty much felt that I had won over the staff but wasn’t sure about the Executive Director or the Board. Eventually, I got a call from the Executive Director that said exactly that. Then he added that while he had gone into the interview looking for someone different, as he reviewed my application, read my blog and spoke to my references, he realized he had initially been looking for someone like himself when I was clearly the only candidate suited for the job.

So I was elated that my interview, my references and best of all, my blog had come together to make such a strong case for me –and that the guy I am going to be working for is thoughtful enough to examine and reevaluate his expectations.

As the Executive Director continued, the complicating factor emerged. The board wanted someone who was more of an accountant and had reservations about me. He called me so he could go into a meeting the next day with responses to their concerns and fight for me as top candidate. He felt that the board members who had called my references were twisting what the references said around to make unwarranted assumptions about me. They told him if he hired me, his fate would be connected with mine.

This had a quite a chilling effect on my enthusiasm. I mean, I was even more flattered than before that someone believed in me so much that he was willing to put his own employment on the line. As much as I wanted to believe that once on the job I would win the board over by exhibiting my excellence, I wasn’t terribly keen on having people rooting for me to fail before I started.

In the end though, he found that the power unilaterally hire a subordinate was taken out of his hands as the board insisted on the person who was predominantly an accountant. The ED said the whole situation cost him a great deal politically. I actually don’t know how much longer he lasted. It has been a few years so the recent job ad could well be to replace his replacement.

It was just a very strange situation. I had never heard of a board involving themselves so intimately in hiring a person who wouldn’t be answering to them. The position didn’t set organizational policy and direction, nor did it have the ability to act autonomously. The place already had a book keeper so proficiency in keeping accounts wasn’t a high priority. Assembling and interpreting financial statements was important but I had years of experience doing so at that point.

It is the Executive Director who bears responsibility for the staff that is hired. Unless they are incredibly negligent in monitoring and disciplining employees, the ED’s job shouldn’t necessarily be directly in jeopardy with every new hire.

I spoke privately with a few people about the whole situation. The general sentiment was that the board needed better instruction about what its role in the organization was. While a board generally makes decisions about new member recruitment rather than the executive director, the ED had a role to play in educating and steering the board in its development.

So often the concern is that a board is too disengaged, unaware of the activities of the organization and remiss in the exercise of its oversight and fiduciary responsibilities. This board seemed hyper-engaged, at least in relation to this particular function. I suspect my experience was not an aberration but rather a symptom of an unhealthy dynamic between the board and the executive director. Just as the executive director saw my skills as complementary to his, since this was a newly created position, I wonder if the board’s agenda was to fill in the places in which they felt the Executive Director was lacking.