Music Management - (1) Vision, Mission & Strategy [Compatibiliteitsmodus]

I. Vision, Mission and Strategy

Index (1/5)

� 1. Vision� 1.1 Creativity

� 1.2 Blue/Red Ocean

10/2012 Vision, Mission, Strategy - D. Sel 2

� 1.3 Vision

� 1.4 Case: Kronos Quartet

Index (2/5)

� 2. Mission� 2.1 Coherent goals & KPI

� 2.2 Definition of content and ambition


� 2.3 Values (integrity, empowerment)

� 2.4 Temporary monopoly (feasible, USP/DSP)

� 2.5 SWOT Analysis & SWOT Confrontation Matrix

� 2.6 The enemy & the secret

� 2.7 Mission statement

� 2.8 Cases: Guggenheim Foundation

Index (3/5)

� 3. Strategy� 3.1 Fundamental rules

� 3.2 Analysis of the information


� 3.3 Quality

� 3.4 Core business

� 3.5 Strategy cycle

� 3.6 Marketing Paradox

Index (4/5)

� 4. Management & the Arts� 4.1 Purpose

� 4.2 Basic themes


� 4.3 Essential literature

Index (5/5)

� 5. Welcome to Belgium and Flanders� 5.1 Genesis

� 5.2 Cultural landscape


1. Vision


Vision Organisation:

•Website

•Finance

•Production

•Marketing

•Staff…

Mission Strategy

1.1 Think creative


1.1 Think Out-of-the-box


1.1 Think creative


1.2 Look for a blue ocean or…


1.2 Cirque du SoleilCirque du Soleil ("Circus of the Sun") is a Canadian entertainment company, a dramatic mix of circus arts, ballet and street entertainment and eliminated at the same time the costs of the traditional circus, like circus animals and star


traditional circus, like circus animals and star artists.

1.2 Cirque du SoleilSPEAKER PREVIEW: Programming and content – lessons from Cirque du Soleil

Tuesday, October 09, 2012

industry meeting for venue owners, operators and developers.

Audiences are more demanding – and more diverse – than ever. Competition for their time


Competition for their time and their money is at an all-time high.So, how does one of the world’s showbiz success stories continue to drive attendance through creative programming? And, at the same time balance the art of attracting new customers while not alienating their existing client base?

1.2 AppleSuperior alternative for the classical CD: purchase by the track/song in stead of buying a complete CD. It’s perceived much cheaper.


1.2 AppleApple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phones, portable music players and personal computersrespectively


respectively

1.2 Barnes & NobleThe company is known for large, upscale retail outlets, many of which contain a Café serving Starbucks Coffee, and for competitive discounting of bestsellers


1.2 PfizerStepped out-of-the traditional pharmaceutical Scope by introducing a live enhancing product such as Viagra


1.2 or back to a red ocean?


1.3 Vision

� Survival (goal of any organisation)

� Vision = idea, ambition, why?


ambition, why?

� Mission = what?

� Strategy = how?

1.4 Vision: Kronos Quartet

For more than 30 years, the Kronos Quartet—David Harrington and John Sherba (violins), Hank Dutt (viola) and Jeffrey Zeigler (cello)—has


Jeffrey Zeigler (cello)—has pursued a singular artistic vision, combining a spirit of fearless exploration with a commitment to expanding the range and context of the string quartet.

2. Mission


“De Hogeschool Gent wil excelleren in onderwijs, onderzoek, dienstverlening en beoefening van de kunsten. Via de competentie van haar medewerkers en afgestudeerden en de valorisatie van haar onderzoek wil de Hogeschool Gent een kritische, creatieve en open maatschappij bevorderen.”

2. Mission

� Essential ‘raison d’être’ � Does not describe ‘hic et nunc’ but ambition

Strategical intention on a long term


� Strategical intention on a long term� What is the reason for existence?

� What is the specific task?

� Why does it make sense?

� What does it mean for the community?

No evidences

2.1 Coherent goals & KPI


2.1 Check what for one wants to pay for?


2.1 Focus on results


2.1 Define your Key Performance Indicators (KPI)


2.1 Generate overall consensus


2.1 Define what’s feasible


2.1 Develop speed


2.1 Do your numbers


2.2 Define your content profile


2.2 Content profile Concertgebouw Orchestra


The Royal Concertgebouw Orchestra Amsterdam is one

of the very best orchestras in the world. But what makes the orchestra so special? Time and time again, critics have lauded its unique sound, which clearly stands out among thousands of others. Although sound is difficult to describe in words, the RCO’s string section has been called ‘velvety’, the sound of the brass ‘golden’, the timbre of the woodwinds ‘distinctly personal’ and the percussion have an international reputation.

2.2 Content profileBudapest Festival Orchestra

In less than 30 years the Budapest

Festival Orchestra – founded in 1983 by Iván Fischer and Zoltán Kocsis –has established itself as one of the


has established itself as one of the ten leading orchestras of the world. It is loved by audiences and praised by international critics for its intensive and emotionally gripping performances, for its chamber music-like attention to detail and for its exceptional ability to share the joy of music with listeners.

2.2 Content profileCarnegie Hall comes to you!

For 35 years, Carnegie Hall has brought free concerts for

audiences of all ages to neighborhoods throughout the five boroughs of New York City. These performances-presented in collaboration with museums, colleges, libraries,


in collaboration with museums, colleges, libraries, community centers, churches, and other cultural organizations-feature music reflecting the diverse sounds of the city and Carnegie Hall's quality programming, including classical, jazz, world music, and more.

2.2 Content profileLucerne Festival Orchestra


2.2 Content profileLe Concert Olympique


2.2 Top leadership challenge: how to manage paradoxes


2.2 Be ambitious and motivating

The Metropolitan Opera, now in its 129th season, is a vibrant home for the most creative and talented artists, including singers, conductors, composers, orchestra musicians, stage


composers, orchestra musicians, stage directors, designers, visual artists, choreographers, and dancers from around the world. Known as the venue for the world’s greatest voices, the Met has been under the musical direction of James Levine since 1976. Maestro Levine is credited with having created one of opera’s finest orchestras and choruses.

2.2 PROJET POUR UNE SALLE LEGENDAIRE DANS LA CAPITALE DE L’EUROPE

10/2012 42Vision, Mission, Strategy - D. Sel

UN ENDROIT AU PASSÉ LÉGENDAIRE


OÙ LES PLUS GRANDS ARTISTES SE SONT PRODUITS

UN LIEU DONT LE NOM RESTE GRAVÉ À JAMAIS DANS LE COEUR DE 15 MILLIONS DE PERSONNES EN 3.500

SPECTACLES EN 40 ANS


BRUXELLES – CAPITALE DE L’EUROPE


MERITE UNE SALLE MODERNE AU RAYONNEMENT INTERNATIONAL


2.3 Values (company culture)

� Complete value set for an organisation� Iterative process while defining mission� Part of the corporate identity and thus affects corporate image


corporate image� Reflected in organisation� Guides daily decisions� Important for coherence� Correction factor for strategies� Influences monetary value of the company

2.3 Integrity


2.3 Empower


2.4 Kjell Nordstrom, temporary monopoly (Funky Business)


2.4 USP


2.4 “El Sistema”The Orquesta Sinfónica Simón Bolívar(Simón Bolívar Symphony Orchestra) is a Venezualan orchestra. Named after the Venezuelan national hero Simón Bolívar it is the apex of the nation's system of youth


the apex of the nation's system of youthorchestras. The orchestras are run under the auspices of the Fundación Musical SimónBolívar, formerly known as the Fundacion del Estado para el Sistema Nacional de las Orquestas Juveniles e Infantiles de Venezuela, known colloquially as El Sistema. Since 1999 is Gustavo Dudamel the flamboyant chief conductor.

2.5 Increase your strenghts and manage your weaknessess


2.5 Check the “Competitive Forces Model” (Michael Porter)


2.5 Make a SWOT Analysis

Internal AnalysisExternal Analysis


Strengths/weaknessessOpportunities/Threats

KPIs USP/DSP

STRATEGY

2.5 Make a SWOT Confrontation Matrix


2.6 The enemy


Time Succes

2.6 The $ 1 million secret?


2.6 Feminine power


2.6 Feminine powerMuhammed Yunus

Grameen Bank

Nobel Peace Price 2006

Lehman Sisters?


2.7 Mission statement� Clear formulation of goals

� Strategic thinking

Relevant internal cohesion and support

SWOT Analysis + SWOT Confrontation matrix


� SWOT Analysis + SWOT Confrontation matrix

� Values (+ choises)

� KPI – Key Performance Indicators

� Overall consensus

� Publish as one pager

� Brand & baseline

2.7 Mission: company culture/values


2.7 Mission: characteristics

� Feasible

� Motivating

� Distinctive


� Distinctive

Case:

Wagner, Ring Cycle Sydney Opera House

Problems: stage, pit, potential public

Cut during runtime

2.8 Case: mission statement Guggenheim Foundation

The mission of the Solomon R. Guggenheim Foundation is to promote the understanding and appreciation of art, architecture, and other manifestations of modern and contemporary visual


manifestations of modern and contemporary visual culture; to collect, preserve, and research art objects; and to make them accessible to scholars and an increasingly diverse audience through its network of museums, programs, educational initiatives, and publications.

2.8 MODERNISATION DE FOREST NATIONAL

MISSION

FORT DES SUCCES DU PASSE, REPONDRE AUX

ATTENTES DES FANS EN IMPLEMENTANT UN PROJET DURABLE RENFORCANT L’EMOTION:

� APPORTER UNE NOUVELLE EXPERIENCE AU PUBLIC

�MIEUX ACCUEILLIR LES ARTISTES ET LES �MIEUX ACCUEILLIR LES ARTISTES ET LES PROMOTEURS

�RESPECTER LES VOISINS ET LA COMMUNAUTE LOCALE

�ACCROITRE LES POSSIBILITES DE PARTENARIATS

LE MEME ENDROIT, UNE EXPERIENCE NOUVELLE


3. Strategy

� 3.1 Fundamental Rules

� 3.2 Analysis of the Information

� 3.3 Quality

3.4 Core business


� 3.4 Core business

� 3.5 Strategy Cycle

� 3.6 Marketing Paradox

3.1 Fundamental rules (1/4)

� Concentration of power (“path of least resistance”)

� Use environmental opportunities


� Use environmental opportunities

� Implement innovations (at right time!)

� Potential synergies partnership mrkt.

� Efficient and managable organisation

KEEP IT SIMPLE

3.1 Fundamental rules (2/4)� Realistic success chances

Existingproduct

Nex

product

10/2012 Vision, Mission, Strategy - D. Sel 66NP/NM: venture capital

product product

Existingmarket

50% 33%

New

market

20% 5%


� Strategic choices:Existingproduct

New

Product


product Product

Existingmarket

Market

Penetr.

Product

Developm

New

market

Market

Developm

Diversifi-

cation

Two dimensional growth vector (Ansoff)

3.1 Prospect- Customer scheme

ReputationPROSPECT

Lead generation

CUSTOMER

Advocacy

Brand Awareness


Relation

Lead generation

Lead qualification

Sales presentation

Proposal

Close

Advocacy

Cross selling

Upgrade

Repeat

Loyalty

Satisfaction

3.1 Empirical research

� Return On Investment (ROI)

� Productivity is first priority

� Bigger market share is in general more profitable than small market share


profitable than small market share

� FOCUS: Specific (partial) market (in stead of total assortment)

� Strenghten by specialising

� Quality product needs quality service

+ COSTS UNDER CONTROL

3.2 Analysis of the information (1/3)

� General analysis company:

turn-over, cash flow, result, costs,

brand awareness and net promotor


brand awareness and net promotor

score and marketing, assortment, quality, price, market share, publicity, sales, promotion, pr, r&d, financial solvability, staff & organisation, power of innovation, added value, liabilities, reputation

� Environmental analysis and trends analysis


� Environmental and trends analysis� Economical

� Cultural

Technical


� Technical

� Technological

� Political

� Social

Faith Popcorn, The Popcorn

Report, 1991

Key words: cocooning – NIMBY


� Sector analysis (structure, dropouts , new entrants, tresholds)

� Market analysis (quantitave and qualitative data, trends,


� Market analysis (quantitave and qualitative data, trends, creation/analysis of needs, purchase behaviour, market evolutions)

� Competitive analysis

� Strategies analysis

3.3 Quality


Perception Expectations>

3.4 Core business

� Development of central idea (strenghts and opportunities)

� Define distinctive competences

Increase unique value perception


� Increase unique value perception

� Implementation in different markets

� Prospection, innovation, marketing

� Outsource non core activities

� Plan of implementation

� Risk mitigation (degree of acceptance)

3.5 Strategy cycle

� 1. Define core business

� 2. Define basic strategy/ies

� 3. Growth of core business


� 3. Growth of core business

� 4. Linking with other businesses

� 5. Redefine core business

Henry Mintzberg, 1988

3.5 Pitfalls (1/2)

� Reserve strategy for company top

� Outsource formulation of strategy to an external consultant


external consultant

� Dedicate strategy formulation to a staff

� Use jargon of strategy experts

� Too technical

� Too ambitious

3.5 Pitfalls (2/2)

� Too slow feedback to work groups

� Too slow feedback to personel staff

� Leave implementation of strategy to planning department


department

� Position strategy as spectacular

� Treat strategy collaborators more important

� Subordinate concrete ideas regarding chances and threats to abstract theories and complex analysis

3.6 Genesis of marketing

Industrial

(1789 – 1944)Commercial

(1944 – 1973)


PRODUCTION

SALES

Needs creation

(1973 – 1999)

MARKETING

Local

Free markets Internationalisation

Saturation

& globalisation

3.6 Strategical marketing triangle

Positioning

(vs. competition)


Value creationSegmentation target groups

3.6 Marketing = promise?

Producer/Venue


Public (clients)Artists

Make promise

Keep promise

Realise promise

3.6 Marketing Paradox

� Evolution function of marketing

� Evolution meaning of marketing

� Increasing competition


� Increasing competition

� Insufficient financial offerings on market

� Increasing specialisation

� Increasing reproductivity (“commodities”)

Marketing Paradox


PARADOX = core business should be defined by market, so by marketing, however core is not marketable because the core needs to be tried and tested by:


tried and tested by:

� Integrity

� Credibility

� Authenticity

� Long term thinking� (Only secondary marketing parameters are marketable)


� Financing = result of strategic/artistic plan (and not vice versa)

� Public funding Private funding


� Public funding Private funding

� Overall credibility Public succes

PARADOX: why does one need public funding when operating succesfully?

3.6 “Standing room only”Expect the unexpected!

� Philip Kotler & Joanne Scheff, Standing room only: strategies for marketing the performing arts, Harvard, 1997


performing arts, Harvard, 1997

4. Management & the Arts


4.1 Purpose « Music & Management »

� Prepare for a professional career as performing artist

� Prepare for a career as cultural manager� Realise how arts organisations and


� Realise how arts organisations and management evolved

� Learn the theories and processes behind strategic planning and decision making in the cultural field

� Target group: students, teachers, artists and practical arts managers

4.2 Basic themes (1/2)

� Arts organisations and arts management� Vision and mission� Strategy formation & live cycles� Planning and decision making


� Planning and decision making� Interactive strategic projects� Organizing and organizational design� Human resources� Leadership and group dynamics� Operations and budgetting� Economics and financial management

4.2 Basic themes (2/2)

� Marketing� Communications� Public and private fundraising� ICT and digitization of culture


� ICT and digitization of culture� Integrating management styles and theories

4.3 Essential literature

Management and the Arts4th Edition


4th EditionBy William ByrnesPublished September 29th 2008 by Focal Press – 496 pages

5. Welcome to Belgium & Flanders


5.1 Genesis


5.2 Cultural landscape: Flanders


5.2 Cultural landscape: Brussels


5.2 Cultural landscape: Wallonia


Music Management - (1) Vision, Mission & Strategy [Compatibiliteitsmodus]

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