Info You Can Use

Info You Can Use: Acknowledging The Arts Experience

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Welcome readers of You’ve Cott Mail and myriad other places. I appreciate your interest in the blog and yesterday’s entry about speaking more honestly about how an arts experience can occasionally be disappointing.

It is with some chagrin that I have discovered NEA chair Rocco Landesman talked about this very subject at the Chautauqua Institution about two weeks ago. One always likes to fancy they have stimulated lively discussion through the introduction of a timely subject. But of course, even I have made posts on the subject before so I can hardly expect to be the only one thinking about the subject.

If nothing else, the fact that Landesman has been speaking about it gives some indication that it is indeed timely and worth discussing. I have tagged this entry as part of my “Info You Can Use” series because Landesman mentions a number of ideas for better audience relations as well as noting some approaches that arts organizations have already put into practice.

“We might see an organization with an artistic director and a co-equal audience director. Rather than a manager of visitor services who reports to the director of external affairs who reports to a deputy director.

We might see fellowships for audience members…What if we complemented artist residencies with audience residencies, where we paid some audience members to attend exhibitions and performances? Or, better yet, what if arts organizations gave stipends to “audience fellows,” so that the fellows could go see whatever they wanted to see at other arts organizations?”

This last bit about encouraging audiences to see performances at other arts organizations isn’t as far fetched as it may initially sound. Back in 2006 the Marketing Director of the Broward Center for the Performing Arts made a comment on the blog about the organization’s plan to let patrons know about performances at other venues. Looking at their website, I can’t quite tell if they are still providing this information, but it looks like the marketing director is still there and hasn’t lost his job over the program.

More from Landesman: (my emphasis)

I visited the Seattle Art Museum, and they now offer “highly opinionated tours,” in which people paid by the museum walk through the galleries talking about the things they like, but also the things they don’t like. One of these docents led a tour in which he explained why Seattle’s Pollock isn’t really a very good Pollock at all.

We need to stop pretending that every single audience member needs to like every single thing we do.

Nick Hytner at the National in London, actually has his box office staff track subscribers’ likes, dislikes, and preferences, and has them e-mail the members and suggest some of the plays they way want to skip. I think acknowledging the viewers’ own tastes—in addition to curators’ and directors’ tastes—is absolutely key.

Madeleine Grynsztejn, the director of the Museum of Contemporary Art Chicago put it extremely well. She said that arts professionals need to learn how to maintain their expertise, while relinquishing control. Madeleine will always have more expertise in contemporary art than I do, but I am still entitled to my own relationship with it, my own experience of it….”

Admittedly, some of these steps are a little bolder than we might be comfortable taking. This is info you canuse, but I make no claims about whether you will wantto use it. Certainly, one probably doesn’t have to adopt something as extreme as advising people not to attend a show. Just acknowledging that the arts experience can occasionally be disappointing in the course of normal conversation may earn good will through its simple earnestness.

Landesman covers other topics in his talk which might be worth a listen to many–especially for the flash mob performance which interrupts it midway. Much of the rest of his talk revolves around the same general theme of the need to support artists and artists needing to eschew the role of being separate and special to become more involved and present in their local communities.

Info You Can Use: Variety of Thoughts On Dynamic Pricing

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It seems like dynamic pricing may start to creep into the non-profit performing arts sector as a common practice. Stories about it are starting to crop up more and more frequently. When the topic of changing prices based on market demand comes up, people often use the phrase “like the airlines do.”

So should I be surprised when today I saw a story about how Opera Australia got advice about dynamic pricing from the airline Qantas?

In the beginning of July, there was a story about dynamic pricing in the Los Angeles Times. Chad Bauman at the blog Arts Marketing did a good job addressing the recent move toward dynamic pricing in a post earlier this month.

Of course, who knows. Maybe dynamic pricing is just a hot story because newspapers see others during stories on dynamic pricing. Still, it is a conversation non profit organizations need to be having, if only to decide it isn’t for them.

I actually started a discussion on the Performing Arts Administrators’ group on LinkedIn back in May. I had some concerns about the approach to pricing suggested by a guy I was partnering with on a show. It ended up that I misunderstood what he was proposing.

There were only a few responses and the conversation appeared to have run its course when I went away on vacation at the beginning of June, but when I returned I found a slew of new responses. I think it reflects some of the concerns and thoughts people have about the practice.

One of the first responders, Mark Wladika, said the practice of variable pricing left him feeling manipulated, though allowed if people were aware from the outset that “hot shows will see an increase,” it might represent a middle ground. Another commenter, Omar Miller, noted that if the maximum variation was only going to be $5-$10, the potential revenue gains may not be worth the loss of good will if audiences felt manipulated. A concern for the good will of the community was echoed by a number of commenters.

As the conversation went on, the need to communicate the policy clearly seemed crucial as well as limiting it to single ticket purchasers and exempting subscribers. It was noted that lowering ticket prices at the last minute has the potential to alienate those who bought earlier at a higher price and end up reinforcing a procrastinating behavior.

Joanne Bernstein, a Chicago based arts consultant, advised that the decision to change a price be based on a rise in demand rather than proximity to a performance date. She argues that people are busy and should not be penalized for not being certain about their plans just because it happens to be less than 24 hours before a performance.

Maggie Christ brought up the legal issues surrounding variable pricing citing NYC laws that require if a range of prices is implied, the maximum price as well as the minimum price is required. For example, you can’t say tickets starting at $15 without noting that the top price is $500. Which, of course, gives a pretty good indication about the cost of most of the tickets and the probable location of those $15 seats.

Toronto based arts consultant, Linda Rogers, pointed out that some arts organizations are limited by the capacity of their ticketing systems. Airlines and many Broadway houses using services like Ticketmaster and Telecharge have a greater ability to alter their ticket structure in response to demand than most arts organizations. I have to agree there because the process we have to follow to charge a higher price on the day of the show is pretty clunky.

One comment I particularly liked came from Kara Larson, an arts consultant from Portland, ME.

“Two important points: 1) People value what we do differently. Correctly differentiating initial prices and dynamically raising them in response to demand allows people to decide for themselves what seats, timing, and price is right for them. The ones who want to wait for a sure-fire hit will often happily pay for the privilege. 2) Being responsible stewards of the organizations people charitably support means making the most of opportunities to earn revenue given our programming. Passing up opportunities to make revenue means asking for more donated support. And vice versa.”

In a later comment she made a pretty thought provoking suggestion about a different way to approach dynamic pricing:

“The base interest is understanding demand in our markets well enough to price ALL our tickets optimally. Building a rational projection model and adjusting it when we discover errors should be our first and most important task regarding pricing. Only when we err (significantly, in my opinion) do we need to correct by pricing dynamically. Dynamic pricing is an admission that we got the prices wrong in the first place, so badly that it’s worth it to the bottom line to invest in a new system for correcting them.

At the last arts center where I implemented dynamic pricing, the revenue increase was significant in the first season and less in the second. To me this was good news, because we had taken what we learned in year one and applied it to the base ticket pricing, so had less correcting to do at the last minute. Remember, whenever you price upward dynamically, you’ve already sold some (and often most) of your tickets at the wrong price.

I suggest that instead of spending what seems, industry-wide, to be an increasing amount of time debating the merits of dynamic pricing we all spend some time collectively developing much better predictive models for pricing in the first place.”

Some members of the group are moving forward with using dynamic pricing. Steve Carignan, Executive Director of the Gallagher Bluedorn at the University of Northern Iowa says he is moving forward with dynamic pricing this season. He asks,

“Performing arts has for a long time been linked to a discount mentality (devaluing our product and trying to cut our way to a smaller loss). Is it our customers who are uncomfortable or us?”

Liz Olson of the NYU Skirball Center for the Performing Arts made a comment that gave me cause for concern.

“…I don’t think that foundations or donors will look at variable ticket pricing fondly. They like when we are able to show self-sustainability but from what I have seen donors tend to punish non-profits they deem as operating “too much like a for profit.” (as seen in the endless debate about overhead costs and executive pay at nonprofits.)”

Does anyone have any insight into the validity of this? Have any foundations made comments of this general sort? Another commenter said she didn’t feel this was the view foundations and donors viewed attempts at dynamic pricing. However, neither offered much in the way of explicit evidence for either view. I hate to say that from what I have read, either could be the dominant perception at this time. Or perhaps the practice isn’t wide spread enough that foundations have developed a clear policy and approach.

Info You Can Use: Shall I Pay Thee?

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Our friends at the Non Profit Law Blog linked to a presentation intended to be a guide about compensated time for non-profits. The reason the presenter, Veneable LLP, this is so important is because issues related to compensable time are becoming increasingly prevalent.

– Employers are failing to identify, record, and compensate “off-the-clock” hours spent by employees performing compensable, job-related activities.

– One third of surveyed respondents indicated that their organization had been hit with a wage and hour claim in the past year.

– Today, wage and hour class actions outnumber all other discrimination class actions combined.

– According to the U.S. Department of Labor, more than 80 percent of employers are out of compliance with federal and state wage and hour laws.

The presentation is in PDF format so you can proceed at your own speed and there is a helpful chart at the end that summarizes it all. The laws about compensable time are a little tricky, especially related to travel.

Among the topics the presentation addresses:

      -If an employee works unauthorized over time, do you have to pay them? (Yep)

-Waiting time vs. Off Duty – Do you have to pay an employee who is waiting for a task? (phone to ring, machine to be fixed, package to arrive)

-Difference between compensable and non-compensable “on-call” statuses

-Are employees paid when they attend lecture/training/conference/meeting?

-How comp time can be used in lieu of over time pay

-Are employees paid if they are encouraged to perform work/volunteering for a charity?

-Is your internship program legal?

-What types of travel require compensation? What types don’t? Are employees paid for work they complete on their laptops while traveling?

-If an employee is required to take their work-issued Blackberry or other work related equipment home with them, is any compensation needed?

-Do you have to pay employees if a snow storm makes the street impassable for two days?

As I mentioned, some of these issues are a little tricky and nuanced. Those dealing with employees who do a lot of traveling may find it useful to download the guide as a quick reference. I could quote you back the answers on a lot of these issues, but I would be hard pressed to explain all the travel rules.

Info You Can Use: Federal Employees As Board Members

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Well this one falls under the heading of, “I did not know that.” The Non Profit Quarterly reports that the Office of Government Ethics has proposed changing a rule that prohibited federal employees from serving as officers on a board without getting special permission.

I had no idea that federal employees faced that sort of restriction. I guess we either never approached a federal employees to be on the boards of the organizations at which I worked.

Actually, according to a link on the OGE’s website, until 1996 “a number of agencies had a practice of assigning employees to participate on the boards of directors of certain outside nonprofit organizations, where such service was deemed to further the statutory mission and/or personnel development interests of the agency.”

In 1996, the Department of Justice issued an opinion that a section of the US Code prohibited this type of activity. The restriction was based on concerns about board officers having fiduciary responsibilities that might conflict with the loyalty owed the United States.

But the Office of Government Ethics feels times are a changin’

“In an era when public-private partnerships are promoted as a positive way for government to achieve its objectives more efficiently, ethics officials find it difficult to explain and justify to agency employees why a waiver is required for official board services that have been determined by the agency to be proper,” OGE wrote. “The potential for a real conflict of interest is too remote or inconsequential to affect the integrity of an employee’s services under these circumstances.”

The comment period for the rule ended early this month. I wasn’t able to determine what the time line for the next phase of the rule making might be.

I don’t imagine non profits will line up outside federal buildings throwing their best come hither looks at employees when the OGE issues their final ruling. (Okay, I lie. I can imagine non profits lined up giving federal employees come hither looks. It is very amusing.) But if you have tried to recruit a federal employees before or have been thinking of doing so, the opportunity may present itself in the near future.