1

Is the “old playbook” of arts institution operations still working?

In the past year we have seen arts organizations take some unprecedented steps to maintain sustainable operations, from drawing deeply into endowments to shifting the focus of programming. The Metropolitan Opera took both of these measures — as general manager Peter Gelb was quoted in the New York Times, “The only path forward is reinvention.”

When even the largest institutions must take such measures to preserve their futures, it begs the question of the industry as a whole: can we continue to operate within the structures we’ve always known, or is it time to rethink our approach? 

Such broad reflections have been present in many of our conversations with arts leaders, which brings us to one of our most common questions…

2

How can we reinvent our business model to be more sustainable?

The pandemic brought out so much creativity in the arts field; however, it also brought to light many of the unsustainable practices in which institutions have engaged.

Many leaders are therefore looking to make significant changes to the business models of their institutions. We have heard ideas and experiments from across operational areas, including:

• Rethinking the fixed-cost elements of productions to allow for greater returns or to lower environmental impact

• Identifying and pursuing more reliable, sustainable sources of funding

• Creating more opportunities for partner organizations to rent venue space

While the approaches vary, this period of disruption has created a clear common goal of many administrators, to rethink what arts organizations can be in order to achieve longevity in their communities.

3

What kind of art is drawing in audiences?

Many arts leaders have reported a tension between their artistic visions of evolving the art form and the need to pull in audiences. Though it can be difficult to predict, there appears to be a solid trend of popular works selling out, as performing arts attendees and museum-goers have higher bars for where they will spend their time and money — and so seek reliable favorites.

Could the arts be headed for a blockbuster moment, where only a few of the largest organizations can make the types of big bets necessary to have a viable future? These audience preferences will be important for leaders to monitor as they work to sustain members and subscribers, while also attracting newcomers into their halls.

4

How can we innovate the artistic product to welcome new audiences?

Beyond what’s on the stage or the walls, many arts organizations have taken creative approaches to building more welcoming spaces for visitors both existing and new, and seek to continue this progress in the new year.

For some, this has taken the form of rethinking the norms of the audience experience. For instance, London’s Battersea Arts Centre has taken the past few years to reimagine itself as a “relaxed venue,” with over 90% of performances being “accessible to people disabled by the usual rules of theatre etiquette.” These changes included relaxing rules that may have made attending a performance feel intimidating to a wide range of potential audiences.

Arts leaders must consider what it means to be a truly welcoming space — and what adjustments to the attendee experience are necessary to achieve these goals.

5

What can we do to engage and retain staff?

In ABA’s most recent signature piece of research, The Compelling Employment Offer, we ran an in-depth survey of over 1500 arts organization employees to understand what matters most to them in a job offer. Members can access the full study results here.

Moving into 2023, this question is still top of mind, particularly for those team members whose skills translate into other industries. How can the arts remain competitive to attract a talented, diverse workforce — and what must organizational leadership do to create sustainable lives at work for their teams?

6

Where can we find financial resources in a shifting funding landscape?

Our European members in particular have a keen eye on fundraising for 2023. As the typical government funding terrains shift — such as Arts Council England’s decision to change their funding focus outside of London — so must strategies for philanthropy.

To account for lost (or potentially decreasing) funding from government sources, European institutions are exploring more and more avenues with individual donors and corporate sponsors, including naming rights and long-term partnerships on co-created initiatives.

7

What is the right role and composition of our board?

With the re-examination of many power structures in the arts, an institution’s board of directors is one that comes up frequently in conversations with arts leaders. Questions on this topic range from the tactical to the strategic, including:

• What is the most effective cadence of meetings for the board?

• Which responsibilities is this group best equipped to handle, and how can we maintain accountability?

• What is the role of artists on boards?

• How can we build a board that represents the diversity of our community?

This last question is one of particular importance when considering the final, yet major, shift we have seen in many arts organizations’ strategic visions…

8

How do we become a pillar of our local community?

While the pandemic connected us all virtually on a wider scale than ever before, many arts organizations have emerged with a much more local focus. Institutions seek to truly connect with their communities in new, deeper ways.

For several organizations in both the performing and visual arts, recent moments of renovation have offered opportunities to redefine their connections, and they have endeavored to create space for local organizations and community groups to convene for purposes beyond art. As more institutions take this route, we expect to see a wide range of the larger purpose of these organizations shift and expand.