The Role of Strategic Planning In Arts Organisations
What is meant by the strategic planning process? How do we understand strategic planning within the context of arts management and how important and beneficial is such an analytical approach within arts organisations? On the other hand, what are the potential limitations and restrictions in the relationship between strategic planning and the arts organisation?
These are the key questions for discussion here. For certainty, when utilised effectively, the strategic planning process is a highly beneficial and productive management tool for the growing arts organisation. Although, needless to say, there are potential limitations to the process, and in particular its application within the arts, that do warrant consideration.
Henry Mintzberg traces the concept of strategic planning back to Sun Tzu’s 5th-century classic The Art of the War, where there is an alleged reference to a “Director of Strategic Planning”[1]. Centuries later, in the 1950s, American corporations used planning as a budget exercise, which would evolve into strategic planning. Mintzberg notes a subsequent craze of strategic planning which became “a virtual obsession among American corporations” and, from the mid-sixties, was established as a key management techinque within organisations [2]. Ann O’Connell helps us to understand strategic planning as
“an integrated and interactive decision-making process which is primarily concerned with the development of the organisation’s mission and objectives; the commitment of its resources, and overcoming of its constraints”. [3]
In contrast to operational planning, which is more focused on the day-to-day activities of the organisation, strategic planning aims to integrate and maximise the resources, aspirations and goals of the organisation over a long-term period [4]. To clarify this further, Mike Hudson highlights six characteristics which distinguish strategic management from other aspects of management [5]:
- Complexity of the process
- Entails a “high degree of uncertainity”
- Requires an “integrated approach”
- Need for “absolute clarity of thought and analysis”
- Must “move beyonds words and rhetoric”
- Often results in “major change” in the organisation
The process is essentially formulated by the six W’s — Why? What? When? Where? and Who?[6]. Whilst there are variations in models and approaches by different organisations [7], the strategic planning process generally consists of seven individual yet constantly interlinking components. These are, sequentially, the vision, the mission, the SWOT analysis, strategic aims and objectives and, finally, the plan’s implementation.
The vision is a broad, global and idealistic expression of the organisation’s values, ideas and ultimate dreams for the future [8]. For example, Sir Nicholas Kenyon expressed his vision for the Barbican Centre to be “the beating heart of the City of London, a place of stimulation, refreshment and adventure, which reaches out beyond the confines of its walls to involve those within the Square Mile and far beyond”[9].
In comparison, a mission statement will be more specific and central to the operations of the organisation, ideally proving a clear, concise and complete encapsulation of its role and activities [10]. “The Barbican Centre is Europe’s largest multi-arts and conference venue presenting a diverse range of art, music, theatre, dance, film and education events”[11]. There is considerable literature and discussion specifically analysing the role of the mission statement as a fundamental topic within the strategic planning process, effectively summarised by O’Connell, as it “crystallises the organisation’s long-term direction and steers entrepreneurial decisions down a consistent path”[12].
A SWOT analysis identifies positive and negative internal and external influences upon an organisation. The organisation is then able to generate its strategic ‘aims’ (what it wants to achieve) and strategic objectives (how these aims are going to be achieved). The final phase is for the organisation to establish a plan of implementation, which sets about “putting the strategy in place and getting the organisation moving in the right direction”[13].
Why then is the strategic planning process particularly important to the running of arts organisations? The answers here are undoubtedly many but three are highlighted and priortised here:
- strategic planning stimulates and enables the arts organisation to benefit from heightened organisational and managerial efficiency.
- strategic planning helps to secure vital funding and support.
- strategic planning impacts positively upon the personnel of the arts organisation, encouraging staff to work together to tackle important issues and take the organisation forward.
In addition, O’Connell notes that
Arts organisations operate in an increasingly competive market for audiences and consumers, and in the context of limited financial resources are coming under increasing pressure to be more innovative in their art or artform and more professional in terms of the way in which they are organised and managed”[14].
Here, we see a link between the innovation and professional efficiency of the arts organisation. In essence, an increasing level of innovation within the arts organisation requires a heightened degree of organisational and managerial efficiency. The strategic planning process is advantageous, in this sense, as it enables the organisation to priortise its activites and navigate to a desired destination where its aims and objectives are met and achieved. Kaiser writes that “virtually every organisation, regardless of art form, will develop strategies for the same administrative functions; it is the programmatic functions that differ”. The key to reaching this differentiation, Kaiser adds, is by the implementation phase of the strategic planning process. The implementation plan details specific tasks and designates staff members for their completion within a specific period [15].
In its corporate plan for 2009–2012, the National Portrait Gallery details and dissects each of its strategic objectives (eg “to develop the Collection, creating opportunities for acquisition and commission, while improving its care and conservation”) with a breakdown of the project/activity that each department will perform (eg “Contemporary Curator — Review status of existing support for commissions”). The plan also highlights how these same objectives were previously met and achieved for the 2008–09 period, where the collection was developed by a “sequence of outstanding acquisitions” and “completed commissions of important contemporary sitters”[16].
In developing and stating its vision, mission, aims and objectives, the strategic planning process aids the arts organisation to establish its managerial efficiency further by helping it to distinguish itself from other organisations. For example, Shakespeare’s Globe and Shakespeare Schools Festival (SSF), both located in Southwark, are artistically governed and driven by the exploration and application of Shakespeare in performance and its relationship to education. Both organisations have a core programme where school groups engage with Shakespeare’s plays through working with theatre practitioners, workshops and on-stage performances. However, the vision and mission statements of the two organisations clarify each organisation’s identity from each other. Shakespeare’s Globe’s vision is to “seek to further the experience and international understanding of Shakespeare in performance”[17] whilst SSF envisions using “the genius of Shakespeare to change the lives of young people”[18]. The Globe, also functioning as a working, producing theatre, tourist attraction and London landmark, is focused on developing a broad and international audience through Shakespeare. In contrast, SSF is specifically concerned with developing its young performers through Shakespeare and delivering their performances onto the stage.
The third area where the managerial efficiency of an arts organisation can be developed through strategic planning is that the process helps to improve management control by providing essential and constructive performance measures. Usually, this takes place through a SWOT analysis. For example, in their 2008–09 review, the National Portrait Gallery identified several improvements made over the past year in response to weaknesses and threats that had been previously identified in reviewing the gallery’s performance . These included a “major re-organisation of its Learning Department to allow for the necessary resources to implement its new Learning Strategy”, establishing “various system improvements” and the upgrading of its IT network and general gallery maintenance [19].
As well as heightening organisational and managerial efficiency, the strategic planning process is central in helping the arts organisation to secure the vital funding and support that it needs to function in the contemporary climate. Indeed, Byrnes stresses that “it is difficult today for an arts organisation to attain support from foundations, corporations or government agencies without a published mission statement and a strategic document” [20]. On a similar note, O’Connell (1997) confirms the fact that:
“increasingly, strategic development plans are explicitly sought…as a key element of the submission package and in some instances may be the only means of communication between the arts organisation and the funding body. A strategic development plan is therefore an important tool” [21].
In addition, a strategic plan is also an important tool in the arts organisation for its positive impact on its personnel. Hudson notes that “strategy is particularly important in third-sector organisations because they are coalitions of individuals with different aspirations that need to be integrated to enable to organisation to thrive”[22]. The process makes clear the responsibilities of departments and individuals, uniting the members of the organisation towards shared aims and objectives. As well as its administrative functions, the strategic planning process is also a strong motivational tool which, when used effectively, can engage staff across all levels of the organisation.
An example here is the Calgary Philarmonic Orchestra (CPO) which, in late 2002, was facing dissolution and, consequently, underwent an intensive renewal process. Bankruptcy, insolvency, lack of leadership, declining ticket sales, breakdown in customer service and a changing environment were the key problems facing the organisation. Over 7 weeks, musicians, staff and board members collaborated to develop a comprehensive, ‘renewal plan’. A strategic planning firm was enlisted to aid the CPO, providing leadership and design of the renewal process along with knowledge and experience in strategic planning and change management. [23]
Hudson writes that “at the end of a programme of strengthening strategic management, people are likely to be fired up and will endeavour to achieve more ambitious targets and work together in ways that are more effective”[24]. The CPO’s Executive Director, Chairman and First Violinist collectively attribute that the CPO eventually overcame its problems through “the organisation’s firm commitment to working together to find solutions” and that “the organisation was able to fundamentally and objectively examine complex issues and, in the end, on how to agree on them”[25].
In light of how the strategic planning process can be beneficial, what then is the case against the process and its functioning in the arts organisation? School consultant Robert Evans cites an instance of a head teacher who once praised strategic planning as “the very essence of leadership” only to later reject the model as “a ritual with minimal relevance to how this school operates and the actual problems that I solve”[26]. Bryson detects a similar concern in the relationship between strategic planning and the arts:
“Too much attention to strategic planning and reverence for strategic plans can blind organisations to unplanned and unexpected — yet incredibly useful — sources of information, insight and action” [27].
Could this problem and others also apply to the strategic planning process in arts organisations? At one extreme, it may be argued that such a systematic and rigid model of business planning as strategic planning is the antithesis to true arts practice and management, which should operate without the constraints and measurements of production line industry that organisations outside the arts operate through [28]. Another extreme is that the strategic planning risks the creativity within the arts organisation and its people, as Bryson effectively summarises:
“when used thoughtlessly, obsessively or excessively formally, strategic planning can drive out exactly the kind of strategic thinking, acting and learning it was supposed to promote”[29].
Leading the case against the strategic planning process is Mintzberg. His central critique — “the grand fallacy” — of the process is that the term ‘strategic planning’ is an oxymoron — “analysis is not synthesis and therefore strategic planning is not strategy formation”[30]. He identifies three fundamental “fallacies” of strategic planning to further elaborate on his criticism of the process.
The first of these is the fallacy of ‘predetermination’, which puts the strategic planning process at risk of being irrelevant to the organisation. As strategic planning employs a “predict and prepare” methodology, the process is not so much in control of the environment as may be assumed since that environment needs to be predicted during the planning process [31]. This unlikelihood is reinforced by the fact that organisational environments can change rapidly making previously concrete, seemingly forward-thinking plans dated and of little current importance. This is particularly relevant to the arts organisation where trends in audiences and art forms are ever constantly changing. Thus, strategic planning is characterised by a high level of uncertainity to the extent that management writers Allaire and Firsitou have described “Uncertainity is in the Achilles’ heel of strategic planning”[32].
The second fallacy of strategic planning that Mintzberg addresses is that of ‘detachment’. Hard quantative information is given precedence over soft qualitative information.
“Many planners tend to be restricted largely to hard data — market research figures, analyses of competitors, statistics on economic cycles, performance reports etc….the process becomes detached from reality”[33].
Indeed, arts management is a field where the over-reliance on quantative data is a potential misstep since arts organisations are equally and crucially dependent on artistic, as well as financial, goals. The arts organisation has to extract and evaluate relevant information from its audiences and not just rely on hard facts and figures. Thus, the strategic planning process risks the danger of the arts organisation detaching itself from its essential artisitc objectives, which should be at the heart of its practice.
Mintzberg’s third fallacy of the strategic planning process, closely linked to the previous potential limitations of the model, is the fallacy of ‘formalization’, the key concern being that “innovation can be instutionalised” [34]. In this light, the strategic planning process risks the art organisation becoming over-formalised to the point where the art comes second to administrative acuteness and the creative heart and soul of the organisation is sidelined. In other words, the arts organisation becomes simply ‘another business’. This danger of formalization in the arts is detected by Declan McGonagle who offers a reaffirmation of the value that art cannot and should not be fixed in terms of materialistic means and measures:
“Change is at the heart of artistic practice…It is a question of accepting that we are in it rather than attempting to create citadels which are fixed and inevitably resist reality. It is about becoming rather than being”[35].
It is evident that the strategic planning process is to an extent instrumental to the successful running of arts organisations. However, this is not always a fully harmonising relationship. Arts organisations are unique and the application of proven strategic business models may not always gurantee fruition in the arts. Others argue that strategic planning is not a subsitute for effective leadership [36]. Also, as is widely and persistently discussed, arts management itself differs from managing other companies and organisations outside the arts. Pick and Anderton affirm this:
“…the arts administrator is never a mere functionary, taking orders from state planners about the correct way to ‘deliver’ art…arts administration is plainly different from managing a factory” [37].
A crucial factor, in this difference, is the importance of the art. The arts “neither a service nor a range of products” yet purposefully exist for audience consumption. The respective authors feel that “a work of art is not truly born until it has been received by the public…the arts adminstrator’s work takes place essentially in the public realm”[38]. Bryson supports this affirmation:
“The ultimate end of strategic planning should not be rigid adherence to a particular process of the production of plans…Strategic planning should promote wise, strategic, thought, action and learning on behalf of an organisation and its stakeholders. It should be used to create public value. What steps to follow, in what sequence, and whether or not to prepare formal plans are subsidary concerns”. [39]
Bryson cuts through the mechanistic terminology and reverent appraisal of the formalities of strategic planning to underline that the process has a mission of its own — “public value”. Here, we have a vital link with the arts organisation. The successful arts organisation, of course, has to reach its financial targets. Simultaneously, and more importantly, it has to produce works of artisitc value and, accordingly, public value. Therefore, the strategic planning process and the arts organisation should be driven by the same overriding goal — public value. If, this ideal can be realised and actualised between the two, then the strategic planning process, despite its potential limitations, can play a harmonious, constructive and enduring role in the running of arts organisations.
References
- Mintzerg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.6
- Mintzerg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.6
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.75
- Byrnes, W, J. 2009, Management and the Arts, 4th end, Focal Press, Oxford, p.126
- Hudson, M. 2009, Managing without Profit: Leadership, management and governace of third sectors, 3rd end, Directory of Social Change, London, p.107
- Byrnes, W, J. 2009, Management and the Arts, 4th end, Focal Press, Oxford, p.124
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.76
- Dreeszen, C.(ed). 2003, Fundamentals of Arts Management, 4th end, University of Massachusetts, p.35
- Barbican 2010, About the Barbican: Vision [Online, 07/01/10]
- Kaiser, M, Strategic Planning in the Arts: A Practical Guide
- Barbican 2010, About the Barbican [Online, 07/01/10]
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.77
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.82
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.69
- Kaiser, M, Strategic Planning in the Arts: A Practical Guide, p.12
- National Portrait Gallery Corporate Plan 2009–12,p.5 & 9
- Shakespeare’s Globe 2010, About the Globe [Online, 07/01/10]
- Shakespeare Schools Festival 2010 [Online, 07/01/10]
- National Portrait Gallery Corporate Plan 2009–12,p.5–6
- Byrnes, W, J. 2009, Management and the Arts, 4th end, Focal Press, Oxford, p.123
- O.Connell, A. 1997, ‘Strategic Planning and the arts organisation’ in From Maestro to Manager, Critical Issues in Arts and Cultural Management, eds. M.Fitzgibbon & A.Kelly, Oak Tree Press, London, p.70
- Hudson, M. 2009, Managing without Profit: Leadership, management and governace of third sectors, 3rd end, Directory of Social Change, London, p.104
- International Journal of Arts Management, Vol 9, No 1, Fall 2006, p.4–6
- Hudson, M. 2009, Managing without Profit: Leadership, management and governace of third sectors, 3rd end, Directory of Social Change, London, p.108
- International Journal of Arts Management, Vol 9, No 1, Fall 2006, p.16
- National Association of Independent Schools 2017, The Case against Strategic Planning [Online, 07/01/10)
- Bryson, J, M. 2004, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organisational Achievement, 3rd end, Jossey-Bass, San Francisco, p.16
- Pick, J & Anderton, M. (1996), Arts Administration, 2nd end, E & FN Spon, London, p.6
- Bryson, J, M. 2004, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organisational Achievement, 3rd end, Jossey-Bass, San Francisco, p.15
- Mintzberg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.321
- Mintzberg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.228
- Mintzberg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.228
- Mintzberg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.268
- Mintzberg, H. (2000), The Rise and Fall of Strategic Planning, 2nd end, Prentice Hall, Edinburgh, p.294
- McGonagle, D.1997, ‘Things change: The need for new transactions in cultural management’ in From Maestro to Manager, Critical Issues in Arts & Cultural Management, eds. M. Fitzgibbon & A.Kelly, Oak Tree Press, London, p.24
- Bryson, J, M. 2004, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organisational Achievement, 3rd end, Jossey-Bass, San Francisco, p.15
- Pick, J & Anderton, M. (1996), Arts Administration, 2nd end, E & FN Spon, London, p.2
- Pick, J & Anderton, M. (1996), Arts Administration, 2nd end, E & FN Spon, London, p.3 & 17
- Bryson, J, M. 2004, Strategic Planning for Public and Nonprofit Organizations: A Guide to Strengthening and Sustaining Organisational Achievement, 3rd end, Jossey-Bass, San Francisco, p.16
