Arts & Culture Strategy

Week 3: Who Are We For?

FACULTY
Russell Willis Taylor

Peter Frumkin, Ph.D

© 2015 National Arts Strategies.

Session 3.2

what’s going on
in our world
A Quick Scan of the Chaos
FACULTY
Russell Willis Taylor

© 2015 National Arts Strategies.

“They always say time changes things,
but you actually have to change them
yourself.”
     Andy  Warhol  

© 2015 National Arts Strategies.

Today’s “Simple” Environment..

Complex  
Changing
Unpredictable
Chaotic
Unpredictable
© 2015 National Arts Strategies.
What has changed that changes us?
§  Shift of wealth creation from west to east
§  DIY health: proliferation of apps and gadgets
§  Dealer Chic: fixed price is so last decade
§  Eco-cycology: green is no longer optional
§  Urban Pyramid: Prahalad’s prescience
§  Point and Know: Visual info-gratification

Source: trendwatching.com

© 2015 National Arts Strategies.

Markets Can Be Wrong
§  1 in 3 people in America is at or near the poverty
line. The top 1% earn about 24% of all income.
§  The last time we had this level of imbalance was
1928.
§  It ended badly.

© 2015 National Arts Strategies.

Big changes

disintermediation

© 2015 National Arts Strategies.

Social Innovations & Inventions
Social Innovations
Pop up restaurants, You-tube, facebook, online transactions, google
analytics, carbon trading, microcredit, consumer cooperatives, online
learning and giving platforms, virtual learning environments, corporate
universities, citizen reporters, cloud funding, fair trade, pledgebanks,
restorative justice, open source, slow food, eco-cities, consumer co-
operatives, zero carbon housing, wind farms, Hole in the Wall
computers, Mumsnet, World Café, flash mobs, Pinterest; TED and
TEDx; Fan Fiction…
Inventions
i-pod; i-phone, i-tunes, tesla electric car, AbioCor artificial heart, Blu-
ray players, Solar roof shingles, smart bullets, open space technology,
3-D printing on demand; bio-print organ renewal mainstream in 20
years…

© 2015 National Arts Strategies.

Who takes part?
§  Audiences have an
increasing appetite for
participation, not just
passive observation.
§  People want to play as well
as pay.

© 2015 National Arts Strategies.

The Future: Reconsider amateurs

Eric Whitacre’s Virtual Choir

§  VC4 = 8,409 video submissions + 101 countries
§  700,000 hits on You Tube within 2 weeks of broadcast
http://ericwhitacre.com/the-virtual-choir

© 2015 National Arts Strategies.

The Future: Collective Impact

Newcastle Gateshead Cultural Venues Collaboration

ngcv.tv

© 2015 National Arts Strategies.

Session 3.3

analyzing our environment

Understanding Where You Fit in the Market

FACULTY
Peter Frumkin, Ph.D

© 2015 National Arts Strategies.

Why positioning matters..

Customers and
Donors

Identity

Program Differentiation
© 2015 National Arts Strategies.
Key Questions
§  In which market(s) does my organization operate?
§  What are the common programs, audiences and
geographies that my organization shares with other
organizations?
§  What sets my organization apart and makes it better?

© 2015 National Arts Strategies.

Benefits of Competitive Analysis
§  Start-up: Functions as an inventory of other
organizations providing the same or similar programs and
often immediately signals the magnitude of the proposed
innovation

§  Enables the leader to highlight specific competitors and

illustrate what differentiates his organization.

© 2015 National Arts Strategies.

 Benefits of Competitive Analysis
§  On Going: Continually orient themselves with
respect to a constantly changing landscape:
organizations evolve internally developing both core
strengths and weaknesses, conditions change
externally, yielding substantial opportunities and
threats.

§  Enables existing organizations to retain

competitive advantage and survive amid a
constantly changing landscape.

© 2015 National Arts Strategies.

Layers of Markets

General market (20-50 organizations)

All organizations with the same audience, program, or
geography.

Direct competitors (5-10 organizations)

Subset that have the most traits in common with you.

You

© 2015 National Arts Strategies.

 What is your market?
Determining the Market: Preliminary Mapping
1.  Who else is providing the same programs
to the same audience (but potentially in
different geographies)?
Program
2.  Who else is providing the same programs
in the same place (but potentially to
different audiences)?
3.  Who else is working in the same place
Audience Geography
and aiming toward the same audience
(but with different audiences)?
4.  Who is providing the same programs to
the same audiences in the same place?

© 2015 National Arts Strategies.

What does Preliminary Mapping show?
§  Are there other organizations providing the same product or
service? (high-risk scenario)
§  Is this a saturated market in which dozens of existing
organizations are attempting to provide a similar product or
service (high-risk scenario).
§  Is this a stable market with a relatively unchanging set of
organizations?
§  Is this a dynamic market in which organizations are regularly
entering and/or exiting the space?
§  Is this a turbulent market in which ongoing change in the
number and composition of other organizations is creating
significant instability?

© 2015 National Arts Strategies.

Characteristics of Markets
Number of
Small Medium Large
providers!

Opportunity! Small Medium Large

Environment
Turbulent Dynamic Stable
al Stability!

Risk! Low Medium High

© 2015 National Arts Strategies.

 Where do you fit?
Determining the Market: Detailed Mapping
§  Key Questions:
1.  What characteristics describe the
new organization but not its Program
competitors?
2.  What characteristics describe the
competitors but not the new
organizations? Audience Geography

3.  Which of these things matter?

© 2015 National Arts Strategies.

Listing Similar Organizations
Similar Program! Similar Audience! Similar Geography!

Organization 1! Organization 1! Organization 1!

Organization 2! Organization 2! Organization 2!

Organization 3! Organization 3!

Organization 4!

© 2015 National Arts Strategies.

Competitive Analysis Matrix
Direct
Trait 1! Trait 2! Trait 3! Trait 4! Trait 5!
Competitors!

Organization 1!

Organization 2!

Organization 3!

Organization 4!

Organization 5!

You!

© 2015 National Arts Strategies.

Summing up
§  Think about the three key differentiators
§  Look around and find competitors
§  Build a matrix that highlights what matters

© 2015 National Arts Strategies.

Session 3.4

analyzing our environment

Real World Applications
FACULTY
Peter Frumkin, Ph.D

© 2015 National Arts Strategies.

Applications of Competitive Analysis
§  How do you do this work?
§  Look at examples in arts and outside
§  See that customization is critical

© 2015 National Arts Strategies.

Competitive Analysis Matrix: The Corcoran
Public Transit
Direct Rotation of Level of
Hours! Access/! Price!
Competitors! Exhibitions! Interaction!
Location!
National
Gallery of Art!
FREE

$12 Adult
The Phillips $10 Student/Senior
Collection! FREE – 18 and under/
Members

Freer! FREE

Portrait Gallery/!
American Art!
FREE

Hirshhorn! FREE

$10 Adult
$8 Student/Senior
Corcoran! FREE – 12 and under/
Members/Military Active
Duty

© 2015 National Arts Strategies.

Trait Taxonomy in Arts & Culture
§  Website (clear and compelling – easy to find info, purchase tickets, etc)
§  Ease of Access
§  Hours
§  Location (fixed or floating)
§  Public Transit
§  Parking
§  Handicap Accessibility
§  Price/Cost
§  Rotation of exhibits/materials/shows
§  New-ness/Freshness
§  Reinterpretation
§  Level of interaction (…multi-media or engaging in a different way such as
being incorporated into a theatre performance or having gates open and
close ahead of you changing your path to complement the elephants as
they move through a habitat...)
§  Shops – ability to buy stuff
§  Educational programs

© 2015 National Arts Strategies.

Example: Online Giving

© 2015 National Arts Strategies.

 Example:

Online  giving  with  

proof  of  impact  

Budget  conscience,  
United  States  
young  donors  

© 2015 National Arts Strategies.

Mapping the Space
Product! Customer! Geography!

© 2015 National Arts Strategies.

Competitive Analysis Matrix Entire
Direct Functionality/ Numerous Targeting Proof of donation Average
Competitors! Ease of Use! Partners! Youth! Impact! given to Contribution!
project!

--

--

$500

$15

--

$25

© 2015 National Arts Strategies.

Key Differentiators

Product: online giving with

Program impact assesment
Geography: United States
Customer: young adult/young
professional donors

Audience Geography

© 2015 National Arts Strategies.

Summary
  Identify the general market in which your organization
operates;
  Identify the key internal and external criteria that
differentiate your organization;
  Identify the direct competitors for your organization;
  Use the competitive matrix to see your position clearly

© 2015 National Arts Strategies.

Session 3.5

working collaboratively
Sometimes the Best Way to Meet
Mission is to Work Well With Others
FACULTY
Peter Frumkin, Ph.D

© 2015 National Arts Strategies.

Why Bother?
§  Collaboration can increase our overall impact
§  It makes best use of scarce resources
§  It eliminates duplication of effort
§  It can improve our reputational capital and help us
reach into new constituencies

© 2015 National Arts Strategies.

Collaboration for the nonprofit sector
can be what competition is for the for
profit sector:
a way of making a system more efficient.

© 2015 National Arts Strategies.

Practice, practice, practice

“Collaboration is a muscle… the more

you use it, the better you get.”
Andrew Taylor
The Artful Manager
http://artsjournal.com/artfulmanager/

© 2015 National Arts Strategies.

Collaboration Spectrum

Sharing  Resources   Strategic  Alliance   Joint  Venture   Merger  

© 2015 National Arts Strategies.

Building Social Capital,
Not Burning Bridges
Sharing   Strategic   Joint  
Merger  
Resources   Alliance   Venture  

Trust   Limited   Deep  

Communica.on   Infrequent   Intensive  

Coopera.on   Limited   Extensive  

© 2015 National Arts Strategies.

How are partners chosen?
Do partner screening: due diligence, cultural fit?
o  Does partner have the right capabilities and
resources? Do you?
o  What is the potential ally’s strategy? Do they have
prior experience with alliances and collaboration?
What was their track record?
o  How important is the collaboration to your
potential partner?

© 2015 National Arts Strategies.

How to Evaluate Potential Partners
& Forms of Partnership
§  What is the value of the activity that is being jointly
created and shared, the resources being devoted to it,
its scope and ramifications?
§  Examine potential partners: issues of trust,
communication, social capital, and fit
§  Evaluate the type of partnership: form of governance
§  Assess your partnerships in terms of their strategic
importance. Which of your relationships entail
resources other than money? Which ones involve high
versus low engagement?

© 2015 National Arts Strategies.

Keys to Partnering Gracefully
§  Focus: Are the participants’ goals complementary?
§  Force: Is one partner being compelled to enter the alliance?
§  Future: Can the individual(s) responsible for the alliance
commit future resources?
§  Fit: Do the organizations have similar cultures, esp. decision
making routines?
§  Faith: Is there commitment at multiple levels of both
organizations?

© 2015 National Arts Strategies.

 Consider These in Combination
Merger

Longer

Joint Venture

Duration of
Commitment
Alliance

Resource Transfer
Shorter

Lower Higher
Degree of Integration
© 2015 National Arts Strategies.
 Serial Collaboration
Critically
Recognized
Exhibitor

Wellness Classes Talks and Films

New  Orleans  Museum  of  Art  

Becomes…
Community
Creative
Story Quest Hub NOMA and The NOLA Project
© 2015 National Arts Strategies.