Patricia Martin

The Power 7: A Checklist For Future Business Models in Arts & Culture

Posted by Patricia Martin, May 18, 2011 5 comments


Patricia Martin

Patricia Martin

Open talk about new business models in the arts is a cultural signal. It’s a watermark that tells us the tides are shifting. Digital culture is eroding some of art’s traditional value proposition.

That’s not what worries me.

This does: Even if the arts can come to occupy a new role in people’s lives, will they will be able to communicate this role to attract new users—especially younger audiences?

Cultivating younger audiences will be important. They are the future. But using marketing messages and tactics from the past to reach them might mean that your organization—no matter what its business model, will not be around to see them join your ranks. 

In 2009, Steppenwolf Theatre Company and my research team joined forces to investigate ways that other major brands were making themselves relevant to young cultural consumers, especially those between the ages of 22 and 30. You can download findings for free.

Business models are evolving in part because of a strong push from young arts leaders to rethink the traditional 501(c)3.

Why rethink the organizational structure?

Because this rising generation has already changed how it consumes culture and interacts with institutions. It’s just that the organizational structure has not yet caught up.

How do we get it right?

Here’s a 7-point checklist for future success of arts and culture:

1.    Re-imagined user experiences
2.    Collaboration rather than command-and-control
3.    More authenticity, less arrogance
4.    Less devotion to economic martyrdom and the sanctity of the 501(c)3 status
5.    Blurring of the lines between arts and business
6.    A pronounced pro-social role for art
7.    Platforms that invite more participation

I also wonder about the arts establishment’s ability to absorb innovative talent. Many of us cut our teeth on the rough-and-tumble business of running storefront arts groups. For some, the next logical step was to enter the majors—big box arts and culture.

That was my story.

But the majors can be coffins for the fire-in-the-belly entrepreneurial drive that fuels some arts leaders. The recent flap at RISD over John Maeda’s “open source” presidency shows what happens when the alchemy between elite arts institutions and entrepreneurial impulse goes bad. Eventually, a person conforms or moves on. Major institutions lose out when they fail to integrate spirited young talent, especially when it knows more about how to communicate in the digital culture.

I confess to unbridled optimism about what the future holds. I know that young arts leaders bring a deft hand to marketing based on authentic connections between artists and audiences. I know because I see it at work in my own agency.

What do new business models for arts and culture portend?

The future will favor organizations able to keep up the rigor and still open themselves to different relationships with audiences, sponsors and partners. Arts marketing and collaboration with business will no longer be afterthoughts. Both are about a more networked style of connection into the community and convey relevance in a changed economy.

As for me, I’m keeping my ear to the ground for cultural tremors at the intersection of business, arts, technology and education. If you’ve got a story about a new idea or business model you’d like corporate sponsors to know about, drop us a line at Culture Scout Blog or @patriciamartin. If your idea blows our minds, we will help you seed it.

5 responses for The Power 7: A Checklist For Future Business Models in Arts & Culture

Comments

May 18, 2011 at 6:13 pm

Patricia -

Couldn't agree more that a new era calls for honest reflection about which strategies and tactics will serve arts organizations well as they seek to engage new, and engage audiences. This applies to marketing and programming as well as to management structure and business models. It's not an all-or-nothing proposition, and Diane astutely points out in her post that jettisoning old clothes because they seem a bit out of style might leave you naked when the seasons change, but you are absolutely right that today's arts leaders must be open to changing the way they work if they want their organizations to benefit from the contributions tomorrow's leaders want to make.

thanks for your insights and sharing your personal experience of this positive change in action,

Marc

  • Please login to post comments.
May 19, 2011 at 10:23 am

Marc-
Thanks for taking the time to write such a thoughtful response. How difficult do you think this change of mindset is going to be?
I'd love to hear your thoughts on whether the revolution is at hand or more like a slow evolution?
Patricia

  • Please login to post comments.
May 19, 2011 at 12:04 pm

Patricia-

Here in San Francisco there are many examples of nonprofits diving headfirst into the 7-point checklist and getting it right ... for us, the future is now. As these nonprofits grow, as the net widens to include founding activists who are in their 60s and 70s and emerging artists and audiences, one of the biggest challenges my peers and I are facing is how to rally our growing, nuanced base of supporters when they are needed most.

As our funds diversify, as carefully-layered arts participation blurs the lines between artist, audience, identity and genre, I worry that our community loses sight of what I think of as the Ben Cameron Question: "How is my organization uniquely valuable? How would my community be damaged if this organization were to close its doors tomorrow?"

Perhaps those of you who are embracing this checklist can answer: how is your next-gen organization (with open source infrastructure and logistically-complex platform programming) successfully building deep relationships with those you serve?

  • Please login to post comments.
NVAG says
May 26, 2011 at 1:02 pm

Patricia,

Thank you for a great article. Part of understanding business strategies for visual artists is visual artists understanding their rights and freedoms. If visual artists do not understand their rights and freedoms then we certainly will not be able to take advantage of the great business opportunities you discuss. Just as the Screen Actors Guild (SAG) has educated actors on the art of business, the www.nvag.wordpress.com goal is the same for visual artists.

Thank you,
Daniel Tisdale
NVAG

  • Please login to post comments.
May 23, 2011 at 11:02 pm

Lex,
You define an important problem:
"...one of the biggest challenges my peers and I are facing is how to rally our growing, nuanced base of supporters when they are needed most."

It is a perennial problem, too.

As I see it, the other problem you raise about the next-gen organization is less about how to manage new content demands against a more horizontal management structure while building deep relationships with audiences. It's more about finding a relevant role in a larger transformational process.

Nearly every business is having to confront the reality that old way of doing business is unsustainable. Many organizations are having to go beyond just creating a product. They must also re-invent a context it exists within, and a human experience that surrounds it to engage people's imaginations differently.

It's an enormous task! And it can only begin to be addressed when people are free to experiment. In Tipping the Culture we share some exciting examples. http://tippingtheculture.com

I thank you for leaving such a thoughtful and challenging comment.

Patricia

  • Please login to post comments.