Last week I participated in a conference call sponsored by APAP on the impact of the economy on the presenting field. The call was about an 75-90 minutes long and covered a fair bit of ground. They were supposed to post an audio file of the call this week but haven’t yet. Once they do, I will link to it. As you might imagine, there is quite a bit of concern about the topic. So much so that the opening plenary speaker at the conference will be an economist who will speak on how the current crisis came to be.

A lot of the participants were looking for guidance on possible solutions and ways to cope with the stresses they were feeling. There was a lot of constructive advice given but one of the earliest caveats issued was to resist making decisions that might provide short term relief but damage your organization’s reputation and goodwill over the long term. One example given was trying to dissolve contracts instead of trying to find areas to negotiate costs down.

Word gets around the industry so breaking a contract with one agent/artist can have repercussions for your organization very quickly. In the past month, I have conversations with three people who have moved to a different employer. If I had had poor relationships with any one of their former employers in the past year, word would have easily spread to take care in dealings with me.

Among the suggestions for coping with the current economic situation were examples that many arts organizations are now looking at collaborating, partnering or just plain merging operations. Some are looking at increasing their family programming since people are looking to do things closer to home. Someone on the call suggested that one of the great values of the arts is that, properly positioned, it can help communities deal with tough times and even build communities with others who are having a similarly tough time.

One term that kept coming up in the discussion was Porter’s Five Forces. (or Wikipedia entry) I could, and probably will, do an entirely separate entry on how this applies to the arts. If you have the time to read it, it will put some of the concepts brought up in the conference call in context.

One of the suggestions that was made was to examine the problems your organization has and determine if they really have their origin in the economic problems of if they are pre-existing. Were shifts in local demographics, values and preferences already leaving your organization behind? Was there another organization that had entered the market that was doing what you do, only better?

Something to look at is refocusing on the core competencies of your organization. By which the speaker meant, the elements that were central to what the public valued about your organization. The speaker (sorry, tough to keep track of people on a conference call) reiterated the idea that given another organization might now be doing a better job than you, it might be time to shift your focus.

Someone emailed in a question for the panel about how you innovate in times when there aren’t a lot of funds to support such activities. The answer that was given was to find a new path to achieve the mission. Shift the organization’s pathway away from business as usual. One should be prepared to question the underlying assumptions that you have about every aspect of the business from what your audience and community values to the effectiveness of the business model and organizational structure.

This strikes me as requiring a lot of bravery and resolve. With all the problems that an economic down turn brings, do you really have the time to devote to effecting this sort of change? Though frankly, in good times, do you really have the incentive to do so? In better times, you want to avoid the type of radical changes that may send you into a death spiral. You also have so many things to point at that are apparently working there is no need to closely examine the underlying assumptions.

Addressing other portions of the conference call will have to wait until they post the audio. The rest of my notes contain semi-cryptic messages to review parts of the session whose interesting details came too quickly for my note taking abilities. I am pleased that APAP has taken steps to inform and educated its constituency.