Growing Model of Performing Art Organizations: Checklist for Management Decisions
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Growing Model of Performing Art Organizations: Checklist for Management Decisions Yuko Oki Kyoto Sangyo University, Kamigamo Motoyama, Kitaku, Kyoto, Japan After graduated from Tokyo National University of Fine arts and Music, Yuko Oki worked as a viola player in Tokyo City Philharmonic Orchestra. MBA and Ph, D. in international studies at Waseda University. Lecturer at Showa Music University and Kyoto Sangyo University, then become Associate Professor at Kyoto Sangyo University since 2005. Abstract In this paper I make checklist for management decisions for performing art organizations, through two case studies; Shiki Theatre Company and Japan Philharmonic Orchestra. By these case studies, I found 5 common stages of growing model for arts organizations according “Stage Gate Model” (Cooper, 1993). First stage is starting up period, Second stage is making solid contents and seeking core audience period, Third stage is pursuit originality and seeking new audience period. Fourth stage is strategic marketing for repeat audience and expanding activities including oversea countries. Fifth stage is trial of new fund raising and expanding business period. As in each stage, important issues of strategic management decisions are different; I pick up check items using Skill Readiness, Market Readiness, Commercial Readiness and Management Readiness of “Cloverleaf Model” (Heslop et al., 2001) including external and internal environment of the organizations. Keywords Growing Model, strategic management, art organizations, Cloverleaf Model, Stage Gate Model 1. Introduction So far, research on the growth model for the management strategic decision has been mainly studied for the venture enterprise that aims to introducing their stocks to the public. Though in general the purpose for venture enterprise concludes maximization of sales and profit or rise in their stock price, a success of the art organization shouldn't be necessarily measured only with factors of financial affairs. Considering the difference of venture enterprise and art organization, I decide the general idea of the growth mode to art organization in this research. The objects of this research are arts performing organizations like Orchestra, Drama Company, Chorus, Opera Company or Dance Company. There are three final purposes in this research, firstly to make checklists for strategic management for art organization, secondly to pick up successful points of management according to growing steps, thirdly to study impact of art organization’s success to local society. This paper is the first step of this research and make trial checklist of art organizations for strategic management. I use the approach of qualitative investigation of current and past circumstances using case analysis. Data is being gathered from a variety of resources, including periodicals, published and unpublished reports of organizations as well as researcher interviews with organization persons of leadership. Through two case analysis, Shiki Theatre Company that continue surplus management among red deficit of most theatre company and Japan Philharmonic Orchestra 1 which is one of the typical orchestras, I study process of their growth and pick up items of checklist. 2. Theoretical Perspective (1) Previous Study of Venture Enterprise Most of the research on the growth model was accumulated in the study on the venture enterprise. So as for this research as well, I adopt the growth model of venture enterprise as framework. According to Kiyonari et al. (1972), venture enterprise is defined as "the new development creative enterprise, which has intensive ability of R&D.” Matsuda (2001) classified venture enterprises by their business type, 1) distribution service project type, 2) skill based project type, 3) research and development project type, and also by the created value added 1) self supporting type, 2) employment creation type and 3) high technology type as shown in the Figure 1. According Matsuda’s classification there are 9 categories in venture enterprise. Most of the art organization belongs to the self-supporting type by the created value added category. By the business type, most of art performing organizations belong to skill based project type or distribution service type, although research and development type exists in case of experimental trial or combination of the different kind arts. Figure1: Classification of Venture Business business type distribution skill based R&D type created value Service type type added self supporting type Art Organizations employment creation type high technology type Matsuda (2001) (2) Growing Stage of Organization and Management Flamholtz (2000) proposes the outline to appreciate the stage of growth of any organization. According to this outline, at the first stage of new venture business creation, market and a product are the important development fields. At the second stage of business expansion, resources and an operation, at the third stage of Professionalization building of management system, at the fourth stage of consolidation the establishment of the enterprise culture are important. Although Flamholts concentrate internal resources, it might be necessary that the both internal structure and market environment are comprehensively put in its research outline for the right examination of the company growth. Nonaka (1982) examined the relationship between market environment and organizational structure. Nonaka’s research shows the critical influence of market to the organization strategies. 2 (3) Research of Technology Venture As most of art organization based on artists’ skills, research of technology-based venture might give suggestions the framework of this research. First, I pick up “Cloverleaf Model” of Heslop et al. (2001). The research of the technological venture, which is one category of the venture business, gives suggestions for the framework of my research. This is the model to measure the preparation progress conditions of the technology transfer from the research organization to the enterprise, and aims at providing the tool to judge the timing for the person in charge when to move technology to the enterprise. As shown in Figure 2, Technology Readiness, Market Readiness, Commercial Readiness and Management Readiness leads to Technology Transfer Readiness. Figure 2: Cloverleaf Model Commercial Readiness Market Readiness Technology Transfer Readiness Management Readiness Technology Readiness Heslop et al. (2001) Second, I use "Stage Gate Model" by Cooper (1993). This model shows that they must pass through five gates so that there may be five stages and it may shift from each stage to the next stage before the idea of the technology is supplied to the market as a product as shown in the figure 3. In this research, he investigates check items for manager to pass each gate. Figure 3: Stage Gate Model DISCOVERY DRIVING NEW PRODUCTS TO MARKET GATE 1 SECOND GO TO GO TO GO TO SCREEN DEVELOPMENT TESTING LAUNCH GATE STAGE 1 STAGE 2 GATE STAGE 3 GATE STAGE 4 GATE STAGE 5 2 3 4 5 SCOPING BUILD DEVELOPMENT TESTING & LAUNCH BUSINESS CASE VALIDATION $ POST-LAUNCHREVIEW Cooper (1993) 3 This checklist was composed by about thirty items, and it aimed at raising the probability of success to shift to the development of the new articles. I adopt the idea in "Stage Gate Model" which shows there exists several gate to shift from each stage to the next for thinking the growth model of the art organization by this research 3. Growing Model of Art Organizations (1) Shiki Theatre Company Shiki Theatre Company has founded in 1953 by several young actors. Since 1960 they chose its company status as profit organization and tried to make living only on the stage. They built temporally theatre for long-run musical, and now own 7 theatres all over Japan. Their specialty is imported Broadway musical, and they are quite successful to collect full amount of audience to the theatres. They play 2,886 performances in 2003 and their income is over 25 billion yen. They start playing performances overseas including Korea and China. Asari who is Managing and Artistic director of this company, is the entrepreneur to popularization drama and musical in Japan and tried to rationalize the management of art organization. 1) The First Stage 1950’s Shiki Theatre Company has founded by the student of France literary course of universities in Tokyo for the purpose of playing French drama in 1953. At the beginning they play only French works of Anouilh or Giraudoux, after they start Japanese works they lose 3/4 of their audiences. Actors must sell the thicket by hands and work for living outside theatre. As for the first stage, their activities are mainly presentation of French drama and concentrate straight play. They establish the basic skills for their activity and the time of trial and error for challenging creative productions. It is important specially to form the strength of skill itself in this time. 2) The Second Stage 1960s After established of Nissei Theatre in Tokyo, Asari had engaged in there as an art director and Shiki’s direction had been decided in the close relations with Nissei Theatre. In1964, Shiki performed “Naked King” musical for children. In those period they adopted the salary system that pool actors’ income of movie or broadcasting as “ primitive communism” and they paid by themselves the costs of building their own rehearsal room. In 1972 Shiki performed Broadway musical “Applause” with chansonnier Fubuki Koshiji. Musical with Koshiji had continued as “Mame” in 1973, “ Except Sunday” in 1974. Leading part had fixed only by Koshiji and other casts had been gathered by public audition. The second stage is the time of encounter of musical for Shiki. They collect audience with the big power by star singer. At this period it is important to establish the strength of their skill, which is suitable for the applicable market. 3) The Third Stage 1970’ Starting with “Jesus Christ Superstar” in 1973, Shiki performed Broadway musical following “Westside Story” in 1974, “Chorus Line” in 1979 and “Evita” in 1982. Asari has arranged “Jesus Christ Superstar” to Japanese version and Shiki’s original ensemble system without star singer or actor has established.