Letter To The President On The Occasion of His Second Term

The President
The White House
1600 Pennsylvania Avenue
Washington, DC 20500

Dear President Obama,

Four years ago, I wrote you on the occasion of your inauguration to ask you to consider implementing tax laws that would provide more flexible framework within which arts organizations could operate. Looking back, I think many of these ideas I outlined and cited are interesting and still relevant.

However, things have changed in the national arts and culture environment in the last four years. The movement for creative placemaking, for example, has the potential of improving the national arts and cultural landscape by fostering greater connections with communities.

However, there are some distressing trends as well. Many arts organizations, especially orchestras, have effectively ceased operations. In the case of the orchestras, this has come after some contentious contract negotiations between boards of directors and musicians.

I am not advocating for the government to prop these organizations up. As much as the closing of arts organizations is regrettable, not all companies can operate in perpetuity and must close.

My concern is that while every organization is different, these orchestras seem to be following very similar paths toward dissolution. It appears that, knowing no other way to proceed, people are looking to the example of other companies and organizations in similar situations for their cues on how to approach their difficulties. Overall there haven’t been many productive results.

What I am advocating you do during your second term is provide some direction and support for leadership training to the non-profit arts sector. I believe some of these difficulties arise from the fact that non-profit boards of directors and executive leadership often don’t receive the best education about their roles and options. With the best intentions in mind, what little funding an organization receives is directed toward delivery of programming and services rather than toward education and professional development.

The Small Business Administration provides all sorts of programs and mentoring for small business owners. Given their focus, I am not sure they are best equipped for training non-profits. Nor do I think something like this a core competency of the National Endowment for the Arts, but I am sure they know organizations who can properly administer and design the studies and training necessary.

But the services the Small Business Administration offer provides a rough model for creating something similar for non-profit organizations. Non-profit organization as a whole, not just arts and culture, are important to the national health. They provide services in many niches throughout the country.

The visibility element is extremely important. Whomever is tasked with providing the training and support should receive funding and direction to publicize their available resources on a national level: Non-profits are important to the health and vibrancy of the country and educated leadership is important to the non-profits.

As you may be aware, many states are actively trying to eliminate and defund their state arts councils. While state arts councils can certainly be conduits for the information, they may not be in a position to be the primary channel of dissemination to the arts sector. There needs to be an overall national campaign.

Whatever entity is administering this program can turn around and provide feedback and guidance to the government about the challenges non-profit organizations face and what might be done to help them help the country. Presumably the directors of the National Endowments already do this for their respective areas. A report from someone concerned only with the business/legal operating environment of non-profits will provide a valuable supplement to them and hopefully prove to be less politically controversial.

Many boards of directors are generally aware of their responsibilities for their organizations, but are uncertain how to properly pursue them. The spectre of the Sarbanes-Oxley regulations being applied to non-profits looms at the periphery of their awareness, but most are at a loss of how to proactively implement good governance to be in compliance. The fact it may be applied can discourage people from considering serving on boards.

Rather than wait for some incident that prompts lawmakers to enact greater regulatory measures, it would be preferable to help non-profits become educated about how to effectively lead and administer their charges.

I hope, Mr. President that you will consider this. By stepping forward to provide leadership in this area, you will raise the profile and awareness of the value non-profits provide to our country and the importance of strong and informed leadership to their continuance.

Sincerely,

Joseph Patti

Info You Can Use: Discovering Your Ideal Customer

Last June I came across a useful article by Sarah Arrow about identifying your ideal customer. According to her, there is are a very narrow profiles which constitute a business’ ideal customer then the people who are secondary customers who influence your ideal customer. Her article is mostly aimed at writing different blog posts for the ideal and secondary customers, but it is just as easy to substitute “ads” or “social media updates” for blog post.

In the non-profit world there are many constituencies we serve: audiences, boards, government officials, students, parents, performers, ethnic groups, etc. In performance based arts, we talk a lot about diversifying our audiences to attract a wide range of people. There are also very limited resources available with which to communicate ourselves to these groups.

In light of all this, it can be difficult to decide who to target and so opt for trying to appeal to everyone in general. This may be largely ineffective because it engages no one specific very well.

Arrow runs through a process which can help identify an ideal customer. The example she uses are baby strollers. (my emphasis)

Imagine you sell buggies (strollers for my US readers), your marketplace is people with babies and toddlers – new mums, dads, grandparents, aunts and uncles. And the chances are you don’t just sell one type of buggy, but multiple types and styles so you can meet the needs of your customers.

That’s a big marketplace,…

When you have the ideal customer you get a better picture of how to market your buggies to that person. If your mum is a health nut, she’d love the buggy that you can jog with, Dads are often taller and buggies with adjustable handles will speak to him… but here’s the thing, a new mum tends to spend more than a second time mum, she’s the ideal customer in that big marketplace. You have to market to her first and get a relationship started with her swiftly before someone else does.

Arrow continues noting that first time grandmothers are also a lucrative market, but their concerns are much different than that of first time mothers so you need to provide a separate and different approach.

Secondary customers (in this case, the mother’s female friends) keep an eye open for the interests of the primary buyers and influence them. While they may not buy things themselves, Arrow says refer a friend offers are helpful because they still allow people to take action, even if it isn’t making a purchase.

So think about your audience. Can you whittle it down to three important categories like this? That becomes a little more manageable when it comes to producing materials, right?

And remember, they may not all require the same format. Older people read the physical newspapers more than other demographics so only one message may be needed for that medium. Other audiences may follow closely on social media so two or three different messages targeted at them may be required. Social media isn’t as cheap as people imagine, but also tend not to be as expensive as print and broadcast media.

The trouble might be identifying who the ideal customer is. First question that popped into my mind was that it is often women who provide the impetuous for ticket buying. Are they the ideal customer or the influencer? I suspect a little of both.

I think a far bigger problem for arts organizations will be an unwillingness to trim the list down. There is such a strong impulse to identify everyone as the primary customer and avoid being perceived as exclusionary. It doesn’t help that granters and foundations reward with funding those who can claim an impact on the widest possible field.

The truth is, the profile of the best people to pursue is probably much narrower. This doesn’t necessarily exclude the diversity funders seek. For some organizations, the ideal customer may be K-5th grade school teachers who in turn will bring diverse groups of students.

For other organizations, that same diversity might be more difficult to achieve. However if they have done the right job identifying and crafting a message to their ideal customers, the positive response rate should be higher than before.

Who Really Values Diversity In The Arts?

Last month Springboard for the Arts tweeted that the attendance at the Guthrie Theatre’s attendance last year exceeded the Minnesota Vikings’ home game attendance, 425,932 to 421,668.

Springboard Executive Director Laura Zabel blogged about these numbers suggesting the 400k Guthrie audience members should manifest their love for the theater in the same way Vikings’ fans do–jerseys and facepaint.

One of my first thoughts, based on some of Zabel’s observations, was about whether tax dollars were better spent building a stadium which is only used 8 times a year by 400,000 people or a theatre which is used hundreds of nights a year by the same number.

But I quickly remembered the big to do about the lack of diversity in Guthrie’s current season. I wondered if the attendance numbers reflected any push back against that.

Based on a calendar year comparison, it hasn’t. At the end of 2011 their attendance was 421,982. That, however, was down from 2010 when their attendance was 435,877.

I don’t have any numbers comparing their seasons which run September – August. There could have been a precipitous drop off September – December 2012 that isn’t readily apparent. My suspicion, however, is that audiences by and large don’t care about diversity, or the lack thereof, as much as people in the arts sector do.

Diversity is an internal concern driven by economic and philosophic motivations rather than by external audience demands. Audiences do want works that speak to them so arts organizations pursue diversity in order to bolster attendance by expanding the appeal of their works.

Non-profit arts organizations are also widely motivated by their educational mission to expose their audiences to new ideas which is often manifested by who is chosen to perform and whose ideas are chosen to be presented.

While arts organizations have to be responsive to the tastes and interests of their audiences, the audiences take a pretty passive role when it comes to programming. They aren’t widely clamoring for their local arts organizations to bring in new faces and new ideas.

If they were, it would actually be easier to program a season because you would have an idea of what people wanted instead of having an empty theatre teach you what they didn’t.

The Guthrie’s artistic director, Joe Dowling noted that many of the shows in their current season were brought to him by the directors. That is how the programming decisions of most arts organizations are driven, artists and agents, rather than audiences approach decision makers with ideas.

In fact, one of the things artistic directors probably cringe most at is being approached by an audience member who says “I know this group…” I would have sworn it would never come to pass, but this season we are actually doing a show based on a usher coming up and essentially saying, “I am in this band…” It does happen, but often audience suggestions don’t reflect an understanding of the organization’s artistic and business models.

Just the same, that feedback can provide insight into the type of experience the audience member is looking for. Presenting Lady Gaga may be totally wrong for the Guthrie Theater, but a show where the audience can vicariously identify with the protagonist’s rise to celebrity might work great.

As you are all well aware, arts organizations are in the unenviable position of having to figure it all out. It is difficult to pursue any one agenda as wholeheartedly as you might wish. Program too conservatively and audiences will say the arts are arrogant and out of touch for telling them they ought to value antiquated works by Mozart and Shakespeare. Program too progressively and audiences will say the arts are arrogant for telling them they ought to value works challenging notions of gender, race and politics.

I don’t mean to champion a middle of the road approach. I could easily argue, as many people did regarding the Guthrie’s season, that I have far more diversity on my stage and in my audiences just by cultivating locally available artistic resources. I also know that may be harder to achieve in the next job I hold. A balance between leading and following has to be struck and recalibrated all the time.

Info You Can Use: In House Professional Development

I came across a piece by the Bridgespan Group about creating professional development opportunities for non-profit organization staff members when you don’t have the money to send them to conferences.

Some of their suggestions included cross-training, job shadowing and stretch assignments which give people responsibilities outside their usual scope so that they can begin to develop in areas they are lacking.

One thing that caught my attention was the suggestion that employees be given the responsibility for organizing internal gatherings. In addition to having employees take turns organizing and running staff meetings, the article discusses companies where the staff arranges for speakers and other activities for in house professional development, training and team building exercises.

As I was thinking about this idea and who might the staff invite to speak or provide training, it occurred to me that this practice might be helpful in promoting greater understanding between non-profits, their boards and the community.

One of the first thoughts I had was that board members might either attend or be speakers at these events. The experience might either be very informative and help the organization move forward or reveal the gaps in understanding.

This is where things might get tricky. In the best possible situation, board members might come to an understanding of how the organization is run and the challenges it faces. Staff might learn new practices for the way forward.

On the other side, people may realize there is a huge lack of understanding. Staff may realize that a board member presenting a talk has no concept of the business model non-profits follow as they encourage the organization to embrace practices to move them toward greater profitability. How to approach them diplomatically and clarify matters may not initially be clear. However, it may provide a realization that a better board education program is needed.

The same thing can happen involving the public sphere. Staff may become aware of new trends applicable to their organization. Using these talks as an example, the non-profit staff could turn around and create/join a speakers bureau to raise awareness about their organization.

Finally, having read many excellent arts social media postings and blog entries by arts leaders, it is clear there are many very intelligent, well informed people out there in the non-profit world. If they are able to get up in front of their own company and speak objectively (rather than with a subtext about where the staff is failing to live up to expectations) about general philosophy and practice in their industry, I would bet those they work with would see them in an entirely different light.

It is so easy to get bogged down with the day to day details of running the organization, few in the organization may be aware of breadth of knowledge and passion their colleagues have. People may suddenly realize they have a unexpected source of expertise and inspiration readily available.

Of course, no matter what you do, you run the risk of he internal development/training sessions being entirely inappropriate and boring. But you can get that at a conference you pay to attend, too.