Towards thriving 21st century organisations

Henley Centre - Andrew Curry/David Gunn
2005

The aim
To understand the characteristics of a thriving organisation by looking at
ï The drivers of organisational change ï Models of successful thriving organisations ï Implications for the arts sector

The method
ï ï ï ï Henley Centre knowledge base A selection of expert interviews A review of relevant organisational literature Revisiting core trends identified for ¶Towards 2010·

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Organisations in society: a model

Developing the model
‡ Characterising the ways in which institutions interact with consumers ‡ Fundamental distinctions of engagement, or just examples of different channels? ‡ Classifying different organisational/consumer interactions ‡ Testing robustness for the arts

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Summary of important drivers of change
Audience Ageing and agelessness The µexperience economy¶ The search for authenticity Resources Feminisation of the workplace Itinerant workers in the 21st century The restrictions of funding Talent Management of talent µCorporatisation¶ of the arts Renegotiation of the workplace The artist as catalyst

Desire for self-improvement Business and innovation Modal consumers DIY media and personalisation µAlways on¶ society Rise of rights Networks and digital organisation

Rise of the city region

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A series of variables (1)
Belonging

Transaction Fixed Existing

Emotional Geography Work Form Duration

Mobile

New

Specific

Diverse

Permanent

Temporary

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A series of variables (2)
Passive

Audience Outlet Pedagogic Access

Participatory

Single

Multiple

Implicit Constant

Explicit Confined

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The model
Community engagement

Fixed assets

Knowledge assets

Individual engagement
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Testing the model in a technology space
Community engagement

Fixed assets

Knowledge assets

Individual engagement
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Testing the model over time - Virgin: the not-so-secret history«
Community engagement

Fixed assets

Knowledge assets

Individual engagement
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Characteristics of arts organisations by quadrant Community
engagement

Beware!
1 The classification is not pejorative ² thriving organisations are found In all quadrants 2 The distinctions between the quadrants are relative rather than absolute.

Fixed assets

Knowledge assets

Individual engagement
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Thriving organisations by quadrant
Own buildings Home for touring or visiting collections A ¶point of view· Brand is location Innovation - communities of interest around work
Fixed assets Community engagement

Ad hoc organisations Temporary or intermittent Coalitions of enthusiasts Life not a lifestyle Brand is event, network, or charismatic creative ¶Testing the creative edge· Subsidised by other work
Knowledge assets

Own buildings Repertoire/excellence Resident company or collection Innovation ² interpretation and development of mainstream - Presentation and audiences

Individual engagement

No geographical location of limited access ¶Mainstreaming alternative· Innovation ² ¶making the connections· artist/audience Core management Some commercial impresarios
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Testing the model against arts organisations
Community engagement

Fixed assets

Knowledge assets

Individual engagement
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Thriving within an arts ecology: connections
Community engagement Local run Local/ regional venues Gallery Workshop performance Ad hoc creatives

New performers

Touring company

Fixed assets Outreach project National run Established venue Individual engagement Commercial transfer

Knowledge assets

Specialist music network Established festival

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Implications for ACE
‡ The relationships between organisations are as important as the organisations themselves
ï This may need different incentives in the system

‡ People who move between organisations in different quadrants have a valuable role as ¶pollinators· of the system
ï Should ACE find ways of funding such individuals?

‡ The majority of ACE funding goes to ¶bottom-left· organisations ² but this is not necessarily wrong
ï Increasing share of funding to ¶knowledge-based· quadrants only improves arts outcomes if the right connections are in place

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Organisations in society: key drivers

The ¶tripartite· structure of the creative enterprise

Talent

Audience

Resources

Adapted from Martin Dale·s model of sustainable film production models
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Snapshot of consumers in the 21st century
Disposable incomes have doubled since 1971 38% would take a pay cut for less stress

More affluent Quality of life More educated

35% of 24 year olds are graduates

40% of the population over 50 by 2010

Older

More feminised

40% of workforce are women

Over half of adults are ¶unhappy with their standard of living·

Less happy

More fragmented households
Only 1 in 3 households contain a ¶nuclear· family

Fewer children

1 in 4 women born in 1972 will not have children

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Audience
‡ Ageing and agelessness ‡ The experience economy ‡ The search for authenticity ‡ The cult of self-improvement ‡ Modal consumers ‡ DIY media / personalisation ‡ The ¶always on· society ‡ The rise of rights

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Ageing and agelessness
‡ Ageing population ‡ Impact on future resources and on changing social expectations and values ‡ Impact of the over-50s on spending ‡ Beware of assumptions about stereotypes ‡ New demographic groups
Median age in years 50 46 45 40 35 30 25
Source: US Bureau of the Census, International Data Base, 2002 © Arts Council England

Projected UK population
2000 2025 2050

43

38

The experience economy
‡ Purchasing material goods, or purchasing ¶experiences·? ‡ The pleasure of consumption ² what does it depend on? ‡ Retail or leisure? ² or both? ‡ What do consumers expect? ‡ ¶Bite-size· art, or elaborate experiences?

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The search for authenticity
‡ The unusual is becoming more and more commonplace ‡ The concept of the ¶authentic· ‡ What is authenticity?
ï ï ï ï Defined origin Handmade Traditional unique

‡ Mass-produced and easily replicable products and services are under pressure to engage with consumers
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The cult of self improvement
‡ Replacing the ¶bluffers· guide· mentality ‡ Life coaches ‡ Evening classes ‡ Learning holidays ‡ ¶Bibliotherapy· ‡ Growing interest in books and book clubs

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Modal consumers
‡ The modal consumer ‡ Negotiating multiple roles, helped by technology ‡ Four key types of activity:
ï Recovery (eg hobby, sport) ï Sanctuary (eg time with the family) ï Territory (eg gardening) ï Exploration (eg web surfing, creative writing)
Family Worker Self Citizen

‡ Varying leisure experiences

Consumer

Friend

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DIY media and personalisation
‡ Increasingly selective consumers ‡ Self-scheduling of content ‡ Self-editing and creation of own content ‡ Greater expectations that what consumers access / purchase is personalised to their needs and interests ‡ In commercial environments, personalisation of content appears to be higher value but reaches smaller proportion of the market
Source: Henley Centre / BMRB Digital Viewer Wave 6 / Olympus Research

Use favourites list - Interactive TV % 90 80 70 60 50 40 30 20 10 0 15-24 25-34 35-44 45-54 55+ 37 22 58 44 57 54 42 47 57 55 Use bookmarks - Internet

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The ¶always on· society
‡ Mobile phones ‡ ¶Always on· is the default; switching off is now a choice ‡ Similar expectations around access to companies and experiences ‡ Impact on social interaction
% agree with statement:

¶I like to be contactable on my mobile all the time· %
80 70 60 50 40 30 20 10 0 Age 15-19 Average adult
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70

37

Source: Henley Centre, PCC 2002, W2

The rise of rights
‡ The growing disparity between the richest and poorest in society ‡ Dramatic divisions of access and inequity across UK society ‡ Increasingly strong public awareness of the infringement of rights and means of reparation ‡ Attracting consumers from ethnic minority backgrounds and disabled people is a key aim
Source: ONS, Households Below Average Income; Henley Centre

% share of total income by household
Top 10% Bottom 10% 1979 4.4 3.2 20

1990

25

1996

3.5

24

2010 10 5

3.0 0 5 % 10 15 20

30 25 30

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Resources
‡ Feminisation of the workplace ‡ Itinerant workers in the 21st century ‡ The restrictions of funding ‡ Networks and digital organisation ‡ Business and innovation

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Feminisation of the workplace
‡ Gender and the UK workforce ‡ UK women returning to work within a year of having a child ‡ The pay gap ‡ The growing importance of women in the workplace ‡ Substantial changes in work practices

% of UK workforce
Male 60 57 55 50 45 40 35 30 25 20 1982 1992 2002 43 51 49 50 50 Female

Source: EEDA ´Equality in focusµ; GEM Report UK 2002; Nomis; The Guardian Viewpoint #10, The Economist

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Itinerant workers in the 21st century
‡ Moving from rigid to fluid organisational structures - new ways of using resources ‡ Hot-desking and sharing other resources ‡ Cost-driven innovations can also facilitate creativity ‡ Temporary collectives to fulfil specific pieces of work, with temporary use of resources ‡ The rise of dynamic, short-term employment on a project basis in the creative industries
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The restrictions of funding
‡ Funding remains a crucial issue ‡ Current organisational structures for funding can be damaging ‡ Restrictive both in structure and in the way they operate ‡ demanding specific outputs, rather than empowering artists to follow a line of creative thought ‡ encouraging organisational structures and attitudes that do not foster creativity ‡ Social inclusion can confuse collective understanding of the key role of the commissioned work ‡ Innovation can often derive from highly resource-constrained environments

³It¶s almost a rule that the better an organisation is at attracting government funding, the worse it performs´

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Business and innovation
‡ The increasing role of corporate sponsorship ‡ Initiatives which combine artistic experimentation with corporate research ‡ Mobile Bristol ‡ But how applicable is this to more established art forms?

´There is much to be said for seeing artists as servants of the innovation processµ John Thackara

Source: www.mobilebristol.co.uk/flash.html

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Networks and digital organisations
‡ ICT developments can enable organisations to move away from in-house expertise ‡ Brands are able to outsource many responsibilities ‡ More responsive interactions with consumers, allowing focus upon a company·s core expertise ‡ The dangers: ‡ Limiting awareness of wider perspectives and possibilities ‡ The brand reputation relies on others who are only overseen at a distance ‡ The potential for dynamic resource allocation
Source: BT

Supplier

Supplier

Supplier

Purchasing
Finance HR

Brand

Manufacture Marketing Sales/Service

Customers
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Talent
‡ The management of talent ‡ The ¶corporatisation· of the arts ‡ Renegotiation of the workplace ‡ The artist as catalyst ‡ Rise of the city region

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The management of talent
‡ The importance of horizontal, non-hierarchical structures and fluid organisational processes ‡ Organisational innovation needs clear principles ‡ The ¶holarchic· organisation - each fragment of the organisation reflecting the whole ‡ The role of the manager
´You can·t socially reengineer these systems without understanding them intimately. You need to know what it·s like to struggle with the pressures at the grass rootsµ. Prof Henry Mintzberg

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The ¶corporatisation· of the arts
‡ Increasing professionalism of the arts ‡ Changing expectations from funders ‡ Wider social trends such as the importance attached to formal qualifications ‡ Emphasis on management skills at the expense of professional expertise
ï A trend seen in both the public sector and the private sector ï A ¶site of struggle· which creates permanent organisational tensions

Managers
+ +

Targets

Budgets

_

_

Professionals

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Renegotiation of the workplace
‡ Change from fixed contracts to more negotiated relationships ‡ Large rise in part-time and temporary workers ‡ Employees demand greater flexibility and work/life balance ‡ Office structures are moving towards ¶club· environments
ï Space for meeting, thinking etc ï Leisure facilities, shops, drycleaning, creche facilities
Change in employment status, 1971-2005 Full time 000s 5 4 3 2 1 0 -1 -2 -3 -2461 Male Female Total -1415 1381 776 2792 4173 Part time Self employed

1405 1046 629

Source: ONS; Henley Centre, PCC 2001; DTI projections

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The artist as catalyst
‡ Traditional concepts of the artist ‡ The importance of individuals and artistic organisations as creative catalysts ‡ Organisational, facilitative and financial strands of the creative process ‡ The role of creative catalyst in the growing integration of arts initiatives with wider social initiatives
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The rise of the city region
‡ Increasingly mobile workforce ‡ Gravitation towards cities seen as tolerant and outward looking, and having good public spaces and culture ‡ The focus on the rehabilitation of urban centres as ¶marketable· popular cultural venues ‡ ¶Safe· cultural choices and the predominance of corporate ownership can lead to the homogenising of cultural experiences ‡ Cultural innovation often occurs in temporary, marginal areas ´Historic, residual and alternative forms of nightlife are increasingly marginalised« overregulated till they disappear« or bought out under the weight of urban renewal and gentrified leisureµ
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Source: Henley Centre; Richard Florida, the Rise of the Creative Class; Chatterton & Hollands, Urban Nightscapes: Youth Pleasures, Pleasure Spaces and Corporate Power (2003); Archis 2003; Hakim Bey

Key questions
‡ What are the key qualities of arts organisations in our model? Which are shared by every quadrant? And which are peculiar to one quadrant? ‡ Can organisations exist in different quadrants at the same time? What allows them to do this? ‡ What are the key things to be learnt from organisational practice? ‡ In what ways do arts organisations differ from other organisations? ‡ How best can arts organisations ensure they are sensitive to consumer ² or audience ² demands? ‡ How best can arts organisations manage their resources to ensure quality and innovation? ‡ What methods of funding best support this?
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