Lynen II A 1

The Management
of public cultural institutions
Public shareholder / „Owner“ / Public responsibility

International or national organisation in combination with:

• EU
• regional Unions
• special other public Cooperations, or foundations

Nation (Federal Republic of Germany, Greece)

State (Land NRW)
City (Düsseldorf)
Other juristic person of personal law
 Lynen II 1 B
The Management
of public cultural institutions
Type A: „unitary model“ (only one juristic person)

The cultural institution is a juristic non-independent part of the

„mother-insitution“: e.g. museum, opera, theater, orchestra,
university

Important:
Nevertheless there can be installed a certain independence and
self-administration with special responsibilities in reality
(remember the wishes and aims concerning “freedom, autonomy
and autarky”)
 Lynen II 1 B
The Management
of public cultural institutions
Type B 1: model of „separation“
1: two jurisitic persons, both of public law, the shareholder and
the cultural insitution

Type B2: model of “separation”

2: two juristic Persons, one of public law (“mother-institution”),
one of private law (cultural institution)
e.g. same institutions like above. museum theater etc...

Important!! Nevertheless there are actual, political and legal (by contracts
and possibilities of organizations) connections between both juristic persons
(remember the methods of “New Public Management), especially in cases of
the main shareholding by the state
 Lynen II 1 B
The Management
of public cultural institutions
Tendency today: change of Type A into B1 or B2 under the
goals of more independence and responsibility of the cultural
institution

Important: investigation of the concrete circumstances and

“balance of Power”: More important than the choice of a model
is the concrete constitution of both, the “mother-institution” and
the cultural institution, mainly concerning

• Program (cultural or artistic contents)

• Staff (Artists, Administration, Technicians)
• Finances (what kind of budget under which conditions)
• Organization (internal and external)
• Relation (influences) between “mother” and “daughter”
 Lynen II 1 C
The Management
of public cultural institutions

C1: P.P.P as Public Public Partnership

Example:
CIAM (Köln-Düsseldorf) by contract between four public universities
(those themselves under Model B1)

C2: P.P.P as Public Private Partnership

Example:
museum kunstpalast Düsseldorf by a foundation formed by the city of
Düsseldorf and a private company (E.ON)
 Lynen II 1 D
Planning and deciding
in public cultural institutions
In a methodical sense
• three foundations of legitimation (Max Weber): tradition, charisma,
legalization; today more and more the third aspect but still the two
other
• legalization by law, rules, statutes, contracts, compliance
• political programs, resolutions, decisions
• administrative instruments in hierarchical structures and by
definitions of certain competences to decide
• planning instruments (top down or/and bottom up)
• instruments of self-administration and participation concerning artists,
members, citizens, employees (staff representation

Important: Special and own principles of arts, culture, sciences and research:
How to plan creativity and innovation? Freedom of art not in the closer sense as
defense against governmental interventions but in the wider sense as possibility
of its development by itself, not outside regulation.
 Lynen II 1 D
Planning and deciding
in public cultural institutions
in an organizational sense
• Questions of the state-organization: centralistic, federal…..
• Importance of local and regional conditions
• Structures of recruiting the heads of public institutions (political
decisions or more defined with measures of quality, contents and
professional abilities)
• Structures of boards of trustees, executive boards, decisions of
subdividing in departments, distribution of deciding competences
from the top to several parts of the organization
• Way of budgeting and financing the tasks of the cultural institution
• Recruiting and personal management of the staff
• Organization of programs and contents
Important:
Principles of Competence in a three-parted meaning: Who may decide, who
is able to decide, who is responsible for the decision. An institution is well
organized, if all three parts of competence are in the hand of one body (that
can be one person or a defined group of persons). Public cultural institutions
suffer quite often under the disregard of this principle.
 Lynen II 1 D
Planning and deciding
in public cultural institutions
Concerning different subjects
• program, aims, tasks, profile and “personality”
of the cultural institution
• finances, budget, financial sources
(remember the questions of fundraising and supporting by different
share- and stakeholders)
• staff and employees including special forms
like internships and volunteers
• building and facilities
(examples: stages, exposition-rooms, depots, technical resources)

Important:
A cultural institution (example: Opera) can be complex of questions with
different possibilities of solutions. These four subjects are separated on
one hand but they have to come in a powerful combination on the other,
if the institution will be successful. The position in the market inside the
system of cultural institutions is influenced by the special combination the
concrete cultural institution had been chosen.
 Lynen II 1 D
Planning and deciding
in public cultural institutions
Concerning special and important instruments of today
• political decisions (culture and arts as important tasks of the
community), mainly outside of the concrete institution
(government, parliament) but influenced by its shareholders
• finding the aims and profiles of the cultural institution as
a continues internal and external process
• contracts concerning aims and wished results (extern between
the state-administration and the head of the cultural institution
and intern inside the institution between its head and its
departments or/and special members/employees)
• supervision and control by the government and instruments of
evaluation and controlling by quantitative and qualified methods
and certain fixed parameters

Important: The “old” instruments of government and public control and

influences on one hand and the “new” methods of “New Public Management”
on the other have to come in a reasonable relation. Sometimes and
somewhere it seems that we have more control than ever with decreasing
resources at the same time.
 Lynen II 1 E
Paradox
Organization close to the government
versus contents (rather) independent from the government:

state and government should guarantee cultural efforts

but not try to rule the world of culture and arts or predominate
them

different possibilities or models to solve such questions and

problems:

1. dividing the subjects/affairs:

• finances, personal administration, location and
facility-management on one hand:
more influences and decisions by the public
administration
• artistic and/or scientific aims, programs and
contents
on the other hand: more influences and decision by
the management of the cultural institution itself
 Lynen II 1 E

different possibilities or models to solve such

questions and problems:

2. special types of administration

• divided in two deciding bodies: one for
governmental/economic/technical affairs,
the other for artistic/scientific/creative affairs
• more combination: only one body of decisions but with
parted competences inside the institution

3. special levels of autonomia and autarkia

• Who is deciding ?
• Who is responsible for the follows?
 Lynen II 1 F
Models of leading structures
inside a public cultural institution
1. monocratic leadership:
one person as the head of the whole organization
(classical model in a lot of cultural constitution:
a director – under different designations – with a
hierarchical structure of the institution)

• advantage: all decisions in one hand

(possibility of fast and powerful decisions)

• problem: all decisions in one hand

(think of the 3 parts of compentence),
different questions need special answers and qualifications
and divided responsibilities
 Lynen II 1 F
Models of leading structures
inside a public cultural institution
2. leadership by a committee:

a board of management with a fixed number of persons

(from 2 to…. about 5/6 with a critical size – over 10 to much in
the most cases)

• advantage: dividing of tasks on a high level inside a leading

group under following the same ideas and aims

• problem: The relation of collective decisions on one hand and

of the tasks and portfolios of each member of the board on the
other has to be reasonable, accepted, quite clear and practical
 Lynen II 1 F
Models of leading structures
inside a public cultural institution
3. leadership by democratic structures and instruments:
a kind of parliament with elected persons
(or sent by special groups – senates etc.)

• advantage: participation and acceptance by the members of

the cultural institution

• problem: slow and uncertain decisions and deficits

concerning competence and responsibility in special cultural
and artistic subjects (“it is impossible to vote about art”)
 Lynen II 1 F
Models of leading structures
inside a public cultural institution

4. possible forms of combining concerning

• strategic decisions (combination of 3. and 2. or 1.)

• operative decisions (combination of 1. and 2.,
in every case “in one hand”)
• personal decisions (see G)
• financial decisions (see H)
• special artistic and cultural “programmatic” decisions (see I)
 Lynen II 1 G
Recruiting the staff:

How to find the best heads?

hard and soft skills

Employees for leading
key qualifications
positions

Employees for Definition of tasks

operative tasks (main, wishes and in
future)

Procedure
Employees for artistic
(deciding participation,
aims and tasks argumentation)
 Lynen II 1 H
What kind of employment?

different models, especially in cultural institutions

• permanently
• temporarly
• as a „free lancer“
• as an intern or trainee
• as an honorable
 Lynen II 1 H
What kind of motivation?

• intrinsic motivation: needs and wishes

(remeber the side of „passion“)
• extrinsic motivation: needs and effects
(remember the side of „profession“)
 Lynen II 1 H
Leadership and Group Dynamics

• remember the three parts of competence

• principles of delegation
• dividing into A-, B-, C- parts
• coporate identity and definitions of the profile
(aims, differences to the concurrence,
outstanding characteristics)
• aim – contracts
• sharing of decisions, participation
• control, controlling and evaluation
 Lynen II 1 H
Budget of public cultural institutions
A) Public finances

Planning Cultural Institution

„Owner“ State – Exekutive

Decision „Owner“– Legislative

(Parlament)

Distributing „Owner“– Exekutive

(Government)
Cultural Institution

Cultural Institution and

Spending Departments

Control and Controlling Cultural Institution, „Owner“ –

Executive,Legislative,
special courts of finance
 Lynen II 1 H
Budget of public cultural institutions

B) Additional finances

• special additonal budget by the government

• third party funded research and other
contracts with private institutions
• sponsoring
• donations, foundations
• other forms of fundraising
 Lynen II 1 H
Budget of public cultural institutions

C) Earned income of the cultural institutions

• entrance fees, remunerations, cultural efforts against paymen

• rental of space, administration of the property
• permit, conveyance of rights, merchandising, licensing

Important question:
What is allowed (tasks of the public institution, competition to the
market?
What is the difference between cooperation and corruption?
Who will get the money in the end?
The cultural institution, the „owner“ or the government?
Is the public cultural institution still tax-free?
 Lynen II 1 I
Development of cultural programmes

A) In relation government to institution:

Who does decide in what kind of procedure?
B) Inside the cultural institutions:
same question, but different solutions / instruments
C) In relation to the recipients and clients:
same question, but different solution / instruments

Three examples:
I) State university for Fine Arts and Music
II) Theater / Opera of the City
III) Museum of the region
 Lynen II 2 A
The Management
of private cultural institutions
culture-market and industry
12 branches (reports concerning the culture-market)
• music (Classic, Jazz, Pop)
• literature (Books and other publications)
• fine art (primary and secondary art market)
• filmindustry,
• broadcast
• performing arts
• design
• architecture
• press
• advertising
• software and games-industry
• others
 Lynen II 2 A
The Management
of private cultural institutions

Principles
• Doctrine of privity of contrac
• Competition
• Economic aims
• Cultural aims
 Lynen II 2 A
The Management
of private cultural institutions

External Enviroments (Byrnes p. 13)

• economic trends
• political trends
• cultural & social trends
• demographic trends
• technological trends
 Lynen II 2 B
Characteristic of private cultural firms
(Hausmann p. 20)

• Many (most) of them are small: the artist as an entrepreneur

• Some (a few) with a big turnover
• Heterogenous landscape of cultural activities and institutions without a
closed lobby
• Marketing as a task beginning with the process of producing (problem for
artists!)
• Two markets of employment: “real” employment under secure conditions and
free- lancers or entrepreneurs under uncertain conditions and often with
precarious relations of income (Problem: both kinds of employment in one
house!)
• Flexibility and necessity of fast reactions to the changing conditions of the
market
• Many different stakeholders (example orchestra and – local politics,
employers, artists, visitors, sponsors, agencies, media-world……)
• Heterogenous aims: entertainment, education, art, science, information, life
style, communication
• Concurrence-situation with other institutions in all of the three sectors with
necessities from separating to cooperation
 Lynen II 2 C
Business plan for an Arts Organization
(Brynes p. 32 f.)

1. Title Page
2. Table of Contents
3. Executive Summary
4. Vision/Mission/Goals Statement
5. Organization Overview
6. Market Analysis and Marketing Plan
7. Operations Plan
8. Financial Plan
9. Appendix
 Lynen II 2 C
The „W“- Questions

Why: mission, reason

What: goal, objective
When: time, proceeding
Who: staff, partner, customer
Wie/how: instruments, mechanism
 Lynen II 2 C
Mottos

• to do the things right

• to do the right things
• to do it at the right moment
• to do it with the right partners
 Lynen II 2 D
The SWOT - Analysis

Strength Weakness

Opportunities Threats (or Risks)

 Lynen II 2 D
Concerning

• missions and goals

• the staff
• the instruments, equipment and facilities
• the partners
• the concurrence
• the finance situation
• the frame work conditions and the external environments
 Lynen II 2 E
A) Models of organising
private cultural institutions

I. Relation of “Mother - Daughter”

(trusts and their special private cultural institutions)

(see the models concerning public cultural institutions)

• Questions of juristic forms

(commercial law and law of associations)
• Questions of influences and responsibility
• Questions of financing and employing
• Questions concerning strategic aims, programming
and operational plans
 Lynen II 2 E
A) Models of organising
private cultural institutions

II. Cultural private institutions as separate juristic persons

(ex: Limited) without any “mother-institution”

III. The Artist or the Art Manager as his own entrepreneur

 Lynen II 2 E
B) Different positions of an Art Manager

I. As a member of a staff inside a cultural institution

(from leading positions to operative tasks) –
models A I and II

II. As a free-lancer working for cultural institutions or artists

(example: agent)

III. As an entrepreneur with his own company (also as

principal or employer)
 Lynen II 2 F
Comparison of Artists and Art Managers
as Entrepreneurs

The relation between the two poles “profession and passion” is different not
only in an academic or ideal sense, also of commercial, practical and
juristic importance:

• Art Manager as a merchant under commercial rules and with special

commercial standards
(examples: gallery, agency, business in event-management)

• the artist as a creator with the focus of producing and to do his own work
with his personal intentions, nevertheless under the necessity
to earn money
 Lynen II 2 F
Comparison of Artists and Art Managers
as Entrepreneurs
• Commercial code and trade law (normally applicable for art-
managers, not for artists)

• Tax code (income tax for both, special commercial taxes

only for the manager)

• Social security (special systems for artists ?)

• Other copy right questions in the relations of author/ originator on

one side (artist), of utilization / distributing on the second side
(examples: publisher and performing rights societies) and of
using / bying art works on the third side (citizen/customer)

• Definitions of the partnership between artist and art manager are

necessary, contracts with written contents are advisable

• The relations between artist and art manager are influenced by the
relations to third parties
 Lynen II 2 G
Examples of the cooperation
between artists and art managers
A) Artist and gallery

• Aim: selling art works and other goals

• Therefore importance of third parties: especially the

client/buyer

• Important: confidence between these parties

 Lynen II 2 G
Examples of the cooperation
between artists and art managers
Three models:

1st: Gallery in representation and in the name of this

artist (in practice unusual)

Artist Gallery

Buyer
 Lynen II 2 G
Examples of the cooperation
between artists and art managers
2nd: The art works are in commission of the gallery and
will be sold in the name of the gallery: Relation as an
commission merchant to the artist as the principal (usual
model)

Artist

Gallery

Buyer
 Lynen II 2 G
Examples of the cooperation
between artists and art managers
3rd: The gallery is the owner of the art works and is
selling “own” art-works (unusual concerning galleries
but part of the trade with art-works on the secondary art-
market)

Artist

Owner

Buyer
 Lynen II 2 H
Examples of the cooperation
between artists and art managers
B) Artist and exhibitions

ƒ difference between commercial and non-commercial exhibitions

ƒ different partners of the artist
ƒ the gallery (part of the relation / contract with the artist)
ƒ Museum
ƒ Other public or private institutions or persons
ƒ Special cases: partner on the secondary art market
(trade fairs, auction houses)
 Lynen II 2 H
Examples of the cooperation
between artists and art managers
ƒ different subjects to check and to manage.
See generally the “W”- questions, in this case especially:
ƒ goal of the exhibition and the aims of the partners
ƒ subjects of the exhibition and lists of the art-works
ƒ duties of conservation, protection and presentation
ƒ questions of financing
ƒ questions of the organisation (who is when doing what?)
ƒ modalities of the presentation and publishing including efforts of
publicity
ƒ questions concerning special permits by the government and by
private persons
ƒ copy right questions
ƒ post-contract-reflections
 Lynen II 2 I
Examples of the cooperation
between artists and art managers
C) Artist and Agency
Similar to A) three partners here as well
• Artist
• Agency
• Client (different possibilities: organizer or customer)
Contracts concerning concerts and events; models comparable A) 1 and 2
• in the name of the artist (contract between artist and client)
• in the name of the agent (contract between agent and client) but binding
the artist because of a second contract between artist and agent
(examples: a) the orchestra of the city of Düsseldorf with musicians as
employees is making a tour to Greece;
b) agent Y is “selling his” musician for a special event
 Lynen II 2 I
Examples of the cooperation
between artists and art managers
Important contents of a concert-contract
• Program and the question of scopes and possibilities of changes
(when, in which cases, how?)
• Personal bindings (who had to play?)
Who is carrying what kind of risks?
• Time-schedule
• Special conditions concerning locations, space, facilities,
equipment (not only during the concert, before and after too)
• Comparable questions to the check-list under B)
• Questions of ticketing and marketing
 Lynen II 2 I
Examples of the cooperation
between artists and art managers
Important contents of an artist-contract
• the special tasks and definition of the main efforts of the agent
concerning making contacts and advertising
• tasks and efforts concerning planning, preparing and organising
concerts, events, tours
• definition of the role of the agent and about the permission of the
artist to negotiate and to bind him
• duties concerning reports, information and accounting (for both
sides)
• agreements of salaries, honoraries and other benefits
• duration of the contract, possibilities of extension on one hand
and of termination on the other
• comparable contents to A)