MANAGEMENT FOR
CULTURAL
ORGANIZATIONS
Daria Kuchařová
Culture and Mass Media Economy 1
Content
I. Management in cultural organizations
II. Marketing-management model by Michael M.
Kaiser and Brett Egan
i. Artistic planning
ii. Aggressive marketing
iii. Building and engaging the “family”
iv. Incremental fundraising
v. Controlling costs, reinvesting and building capacity
Culture and Mass Media Economy 2
MANAGEMENT IN
CULTURAL
ORGANIZATIONS
Culture and Mass Media Economy 3
 Specific characteristics of arts sector:
◦ Project-based => project marketing
◦ Market of prototypes => high risk
◦ Immateriality and heritage value => hard to determine
financial value
 Art = immaterial product which value depends on the evolution
of public tastes
◦ Freelance workers => small permanent staff, project
success depends on external party
◦ Dual management: artistic vs. administrative directors
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Management in cultural
organizations
Management in cultural
organizations
 Board of directors
 Aim:
◦ ensure fulfillment of organizational mission
 Main responsibility:
◦ Select executive director/artistic and administrative directors
◦ Monitor management (to act in accordance with organizational
mission)
◦ Develop rules (with executive management)
◦ Long-term and short-term planning
◦ Select and train new members of the board
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Management in cultural
organizations
 Artistic and administrative directors
◦ Strategic management (together with board)
 Directors of projects (may be external)
◦ Production management
◦ Sole responsibility for the project
 Marketing, HR and accounting = supporting role
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MARKETINGMANAGEMENT
MODEL BY
MICHAEL M. KAISER AND
BRETT EGAN
Culture and Mass Media Economy 7
About the model
 Organizational goals:
◦ Sustainability
◦ Increase in scales of operation/offerings
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About the model (cont.)
 Theory:
◦ how to build and maintain healthy organization
 Practical management tool:
◦ defines relationships among artistic, executive, and
board leadership
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About the model (cont.)
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I.Artistic planning
 Long-term planning (3-5 years)
o Increases chances securing “big ideas”,
o Strengthens organization-donor relationship,
o Provides access to best artists,
o Provides time to develop, challenge, edit and restart…
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I.Artistic planning (cont.)
 Transformational programming – “big idea”
programming to energize, excite audience and donors.
o Start:“big ideas” – exciting, transformational, exceptional,
surprising
o Level of detail: define major programmes
o Important! Big idea programmes do not necessary mean big
budgets
o Flexible changing plans
o Capacity (manpower, know-how)
o No rush!
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II.Aggressive marketing
 Programmatic marketing – build an audience for artistic
programmes, educational programmes, lectures, etc.
 Effective programmatic marketing – develops a longterm
relationship with a buyer
◦ Target audience
◦ Strong message
◦ Appropriate channels
◦ Competitive pricing
◦ Drive demand to point of sale
◦ Ensure quality of experience
◦ Lay framework for future loyalty
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II.Aggressive marketing (cont.)
 Missionary marketing (for transformational projects)
– special effort to convey what is unique and valuable about the
proposed experience to potential buyers
 Needs:
◦ Additional research,
◦ Additional outreach,
◦ Community engagement.
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II.Aggressive marketing (cont.)
 Institutional marketing – to build awareness and
enthusiasm about the institution
◦ Programmes (festivals, provocative collaborations, unique or
high-profile artistic talent)
◦ Announcements about future work and
◦ Favourable reviews in press
◦ Auxiliary activities (master classes, special events, lectures,
backstage tours)
 Utilize existing institutional assets and ideas => should
be inexpensive
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II.Aggressive marketing (cont.)
 Important! Continuous marketing efforts
◦ Large organization – one major institutional marketing each
month
◦ Smaller organizations – 3-4 per year
 Audience:
◦ General public (potential ticket buyers)
◦ Current and potential “family” members (major donors,
programme officers, board members, primary partners) – for
fundraising
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III. Building and engaging the “family”
 “Family” – donors and buyers
 Ongoing cultivation and stewardship of
the “family”
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III. Building and engaging the “family”
 Board members
◦ Different motivations for involvement =>connect member with
a specific project that reflects their interests and priorities
◦ Provide each member with a real stake in their project’s success
= Engagement => sense of belonging,pride
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III. Building and engaging the “family”
 Volunteers
◦ Sense of belonging and importance
 Subscribers, ticket-buyers
◦ Attend performances, auxiliary activities
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IV. Incremental fundraising
 Incremental building of the “family”
 Long-term planning => “menu” of investment
options maximizes chance of finding an opportunity that
may interest each donor
 + Craft benefits (option to buy tickets for events in advance)
– inexpensive and easy produced
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V. Controlling costs, reinvesting, and
building capacity
 Dream vs. dream sustainably:
◦ Artistic plans tied up with marketing plans
◦ Accept financial implications of each artistic decision
 Diversify risk
 Budget for failures (1-2 per year)
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V. Controlling costs, reinvesting, and
building capacity (cont.)
 Control costs:
◦ Count for income and costs
◦ Actively negotiate with vendors
◦ Reward staff who find creative ways to save without harming the
mission
 Strategic reinvestment:
 Capacity-building – growing organizations require additional
manpower to match increasing scale
◦ Incremental staff building – add manpower in stages (part-time
=> full-time)
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The annotated cycle
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Sources
 A handbook of cultural economics. Edited by Ruth Towse. Cheltenham:
Edward Elgar, 2003.
 The cycle: planning for success in the arts. Michael M. Kaiser and Brett Egan,
2011.
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THANKYOU FOR
ATTENTION!
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