Give The Gift Of Autonomy For Christmas

by:

Joe Patti

So the big tragedy of non profit arts organizations is that while we are the champions of creativity, we don’t really provide all our employees the most conducive environments for being creative. Sometimes good things happen despite us. Because the workload to personnel ratio is usually slanted in favor of the work load, there often isn’t a lot of opportunity for people to stand back and do some creative problem solving that might result in the alleviation of some of the work load.

A recent post on the Drucker Exchange criticized the industrial age view that long hours and great effort equates to productivity when that simply is not so any more. Andrew Fuqua recently made a related post on the benefit of “slack” in the work place. His post was generally about the computer programming industry, but there were many lessons non-profit arts organizations can take away.

One of the things he says a programming company should do is, “managers must stop assigning tasks.” Instead, it is up to teams to decide how the work will be done. Of course, for non-profit arts organizations, this assumes there are enough people to comprise a team rather than 1 person (or half person departments). But essentially he says, managers shouldn’t be making assignments, handing out work or be an individual contributor.

“Well, gosh, then what should a manager do? Well, I’ll tell ya! You could manage more people. You can still step in when the team needs help (but not too quickly). You are still an agent of the company, handling legal stuff, signing off on expenditures, etc. You can still manage risks, especially if you are a skilled Project Manager.”

Even if that doesn’t sound like something that is viable given the size of your organization, there are other things he suggest that are definitely applicable.

“Keep an eye on the system, looking for improvements
Ensure cross-training is happening (not by making assignments, but making the team handle it)
Understand the dynamics of the organization
Understand how value is created
Protect the team from interference
Make the organization effective; learn to look at it as a system
Support the team
Clear roadblocks
Watch interpersonal interaction — watch when one team member pulls back, withdraws in a brainstorm (for example)
Help the team learn TDD by making room for them to learn (time – remove the schedule pressure while they learn)
Understand the capacity of the team (also a team and scrummaster job)
Think through policies, procedures and reward/review systems and improve them (what messages do they send?)
Understand what motivates knowledge workers (see the previous reference to Pink) and let creating that kind of environment be an imperative”

Arts organizations can definitely benefit from looking at the dynamics of the organization and looking at themselves as a system of interrelated and interdependent parts rather than different segments performing different functions. This approach will help the organization understand where the value they possess lies. It may not only be the stuff you are selling tickets to, but in the expertise that is possessed by the group.

You will see a lot of these factors mentioned as valuable in management texts. The one suggestion Fuqua makes that jumped out at me was in regard to watching when a team member pulls back and withdraws in a brain storm. That can say a lot about the interpersonal dynamics of the organization. It may be viewed as one less person providing opposition to your ideas, but it could be damaging to the organization long term to have someone feel disassociated from the rest of the organization or team.

You might note that Fuqua references Daniel Pink and his talk about what motivates knowledge workers. That motivation is autonomy which repeated studies have shown is more effective than cash rewards.

One of the things Pink talks about is a Australian software company, Atlassian, which periodically gives their employees 24 hours to work on whatever they want. The only proviso being that they share it with the entire company at a party they throw at the end of that period. Apparently the practice has contributed to the solving of a number of problems and the creation of new products.

Imagine what might be produced if you let a bunch of creative arts people loose of their everyday constraints for 24 hours with the promise of beer at the end!

One of the things I know is very important to a lot of people I work with in the arts is professional development opportunities. Again, this is something Fuqua references. Often the biggest thing inhibiting arts people from getting the professional development is the funding. One solution to this problem goes back to my comment a few paragraphs ago about understanding that the value possessed by the organization may not solely reside in the product you are selling to the public.

Your organization may possess expertise that is valuable to other arts organizations and for profit businesses. You might arrange for a cooperative professional development day where all the arts organizations get together and have their staffs provide learning opportunities for each other. You might be able to likewise trade your expertise to area businesses in exchange for training or advice.

Best of all scenarios–your organization (or cooperative of arts organizations) puts together training programs to sell to businesses based on your expertise. Perhaps seminars in team building, creative brain storming, or the selection and lighting of visual art in commercial office spaces.

History Repeats Itself And Is Redundant, Too

by:

Joe Patti

I was starting to write up a draft of a press release for a show we will be doing in the Spring, First Person: Seeing America. Probably the best way to describe it is as a live documentary. When you watch a documentary or a show on the History Channel, old photographs often appear on screen while music plays under a narration to create a mood. In First Person: Seeing America, all these elements are present live.

NPR’s Neal Conan (Talk of the Nation) and and actress Lily Knight read and dramatize the words of Abraham Lincoln, Langston Hughes, Damon Runyan, John Muir, Frederick Douglass, Calamity Jane and others, while accompanied by chamber music quintet Ensemble Galilei. Photographs from the Metropolitan Museum of Art’s collection including Matthew Brady, Walker Evans, WeeGee, Edward Stieglitz and Thomas Eakins are projected behind them.

It really looks like a terrific show. But since no one has really seen anything like it before, my challenge has been trying to briefly describe it in terms people will understand and be intrigued by. I actually struck on talking about it as a live documentary while a guest on an NPR fund drive in October and that has seemed to work pretty well.

While I was writing today, it suddenly struck me that history has sort of come around again and the basic premise of this show is pretty timely. What else is the popularity of social media but an interest in the first person accounting of others’ lives? Granted, most people will have more interest in the lives of those they know than historical figures. I am not sure how much traction I will get referring to Frederick Douglass as an original tweeter or blogger.

Still, at one time keeping a journal was something a person did. While the motivation for doing so now is less for personal reflection and more for public consumption, the practice has returned. Perhaps it is time for arts and literature people to harness that impulse and direct the general populace toward refining their approach. I know that there are people already doing a fine job using these tools to express themselves creativity through video, music and writing, but I have an intuitive sense that the practice has yet to reach its full maturity.

I am well aware that in all likelihood the proportion of quality writing to dreck has probably remained constant throughout history. For every Langston Hughes, there have been 99 people dashing off junk. You have to wonder though if in 100 years there will be people mining blog and tweet archives to put a similar show together bearing witness to our lives.

So much pressure to be a poignant and inspiring representative of my time!

Info You Can Use: Crowdfunding Legislation Update

by:

Joe Patti

Thanks to Ken Davenport’s post on the subject, I discovered the bill to facilitate crowdfunding I wrote about at the end of October is nearing approval. The House (H.R. 2930) approved the measure early in November and the Senate’s proposed bill (S. 179) is in committee.

As discussed in my earlier post on the subject, the existing rules for inhibit small investments made by many people because S.E.C. rules kick in after threshold of 500 people. These bills provide a little more leeway.

William Carleton has a good comparison of the passed version of H.R. 2930 and the proposed S. 179. Of most immediate concern to most people will probably be that where the House bill places the per investor, per year limit at the lesser of $10,000 or 10% of annual income, the Senate bill caps investment at $1,000. The North American Securities Administrators Association apparently agrees with the Senate on this point.

At that level, and given the level of required reporting and investor notice, I wonder if it will be worth it to too many people to attempt crowd funding in this manner. But again, I am thinking in terms of the investing prospectus one receives. Presumably, there will be less information to provide to investors in the case of crowdfunding efforts.

Trent Dykes at The Venture Alley provides the details of the House bill. I was particularly interested to see what sort of protections an investor had against fraud.

Not that it isn’t enough motivation to defraud, but you can only raise $1 million annually using the exemption provided by the bill ($2 million if you provide audited financial statements.) In addition to providing warnings of risks to potential investors and sending a collection of information and reporting to the S.E.C., one protection people will have is that the money will be held in escrow by a third party until 60% of the target amount has been raised. Presumably, if the amount has not be raised by the target deadline, additional arrangements must be made to retain it. There are also provisions that ensure the people handling the offering and cash management are qualified to some degree. People with a history as a “bad actor” as determined by the S.E.C. will be prohibited from offering investment opportunities.

As I am not an expert in investing law, I don’t know how vulnerable these arrangements are to fraud. Presumably, moreso then your typical investment opportunity. Individuals will just have less of their personal fortunes exposed to the fraud.

For some people in the arts, this might offer a viable alternative to the non-profit model. I imagine the return on investment might manifest as a hybrid of traditional donor benefits and cash. Providing preferential treatment to encourage people to remain emotionally invested in the organization in addition to paying out cash dividends will probably help keep them financially invested in the company.

Hopefully the limitation on the investing level will insulate arts companies from demands to operate themselves to maximize investor return. Even if the cap is set at $10,000, people aren’t going to be getting immense returns enriching their bank accounts (at least not for a few years). Who knows, perhaps a company will realize so much success thanks to this, they will grow to the point the will be subject to regular S.E.C. investment rules.

Now that this form of investment looks to pass the hurdle of legislation, how long before the arts community will pass the mental hurdle of considering anyone who uses it to finance their operations as selling out their purity and ideals?

Pools And Pre-Schools And Theatres, Oh My!

by:

Joe Patti

Those who have been reading for a number of years may recall that I have been on an advisory committee for the performing arts portion of a community center the Salvation Army is building with the bequest of Joan Kroc.  I thought it was only a year ago, but it has actually been over two years since I attended the ground breaking ceremony for the center. Today I had the opportunity to tour the facility before its official opening just after the new year. I had been looking at a lot of plans so it was gratifying to walk through the actual spaces and see elements that I suggested they add.

With the official opening nearly two months away, there is still some work being done. Enough of it was complete that we had to take a circuitous route around the complex and peer through windows into rooms that had been completed and were awaiting final inspection.

Just by way of comparison, here is the front of Kroc Center Hawaii now versus the empty fields in the pictures I took at the ground breaking.

 

You can take a look at their website for all the programs they will offer which includes a pre-school, after school programs and memberships to their athletic facilities. What I am sure families will really love is the POOLS!

 

Of course, the part I was most interested in was the theatre space. If you can believe it, I was actually pushing for a venue that was more like my own to provide an alternative rental facility for all those people I have to turn away. There is nothing else really on my side of the county and this is where all the population growth is.  As much as I am interested in the theatre portion, I feel the entire project will be a real benefit to the community.

However, the Salvation Army wanted a more multi-purpose space to serve their worship services and provide the opportunity for weddings, banquet assemblies, conference trainings, etc as a supplement to their ballrooms. So there are some nice permanent seating areas.

 

And then a wide area for temporary seating, tables, etc, leading up to a low stage. They had some pretty nifty state of the art technology and a beautiful sound system which made me a little jealous.

Being the arts administration geek that I am, I was already mentally writing procedures and policies to suggest to whomever they hire to run the place. I suspect that even though the venue lacks many of the features my theatre possesses, they will see a level of demand that will force them to decide between rentals and their own programs.