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    Towards thriving 21st century organisations

    Henley Centre - Andrew Curry/David Gunn

    2005

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    Arts Council England

    The aim

    To understand the characteristics of a thriving organisationby looking at

    The drivers of organisational change

    Models of successful thriving organisations

    Implications for the arts sector

    The method

    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

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    Arts Council England

    Developing the model

    Characterising the ways in which institutions interact withconsumers

    Fundamental distinctions of engagement, or just examplesof different channels?

    Classifying different organisational/consumer interactions Testing robustness for the arts

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    Arts Council England

    Summary of important drivers of change

    Audience Resources TalentAgeing and agelessness Feminisation of the

    workplace

    Management of

    talent

    The experience economy Itinerant workers in the

    21st century

    Corporatisation of

    the arts

    The search for authenticity The restrictions of

    funding

    Renegotiation of the

    workplace

    Desire for self-improvement Business and

    innovation

    The artist as catalyst

    Modal consumers Networks and digital

    organisation

    Rise of the city

    regionDIY media and

    personalisation

    Always on society

    Rise of rights

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    Arts Council England

    A series of variables (1)

    Emotional

    Geography

    Work

    Form

    Duration

    Transaction Belonging

    Fixed Mobile

    Existing New

    Specific Diverse

    Permanent Temporary

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    Arts Council England

    Audience

    Outlet

    Pedagogic

    Access

    Passive

    Single

    Implicit

    Constant

    Participatory

    Multiple

    Explicit

    Confined

    A series of variables (2)

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    Arts Council England

    The model

    Community

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

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    Arts Council England

    Testing the model in a technology space

    Community

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

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    Arts Council England

    Testing the model over time - Virgin: the not-so-secret

    historyCommunity

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

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    Arts Council England

    Characteristics of arts organisations byquadrant Community

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

    Beware!1 The classification is not

    pejorative thrivingorganisations are found

    In all quadrants

    2 The distinctions betweenthe quadrants are relative

    rather than absolute.

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    Arts Council England

    Thriving organisations by quadrant

    Community

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

    Own buildings

    Repertoire/excellenceResident company or collection

    Innovation interpretation anddevelopment of mainstream

    - Presentation and audiences

    Own buildingsHome for touring orvisiting collections

    A point of viewBrand is location

    Innovation - communities of

    interest around work

    Ad hoc organisationsTemporary or intermittent

    Coalitions of enthusiasts

    Life not a lifestyleBrand is event, network, or

    charismatic creative

    Testing the creative edgeSubsidised by other work

    No geographical location of

    limited accessMainstreaming alternative

    Innovation making theconnections artist/audience

    Core managementSome commercial impresarios

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    Arts Council England

    Testing the model against arts organisations

    Community

    engagement

    Fixed

    assets

    Knowledge

    assets

    Individualengagement

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    Arts Council England

    Thriving within an arts ecology: connections

    Fixed

    assets

    Individualengagement

    Gallery

    Outreach

    project

    Local/

    regionalvenues

    Specialistmusic

    network

    Newperformers

    Established

    festival

    Established

    venue

    Touring

    company

    Ad hoccreatives

    Workshop

    performance

    Local run

    National run

    Commercial

    transfer

    Community

    engagement

    Knowledge

    assets

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    Organisations in society: key drivers

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    Arts Council England

    The tripartite structure of the creativeenterprise

    Audience

    Talent

    Resources

    Adapted from Martin Dales model of sustainable film production models

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    Arts Council England

    Snapshot of consumers in the 21st century

    More affluent

    More

    educatedQuality of

    life

    More

    feminisedOlder

    More

    fragmented

    households

    Lesshappy

    Fewerchildren 1 in 4 womenborn in 1972 will

    not have children

    40% of the

    population

    over 50 by

    2010

    Disposable incomeshave doubled since

    1971

    Only 1 in 3 households

    contain a nuclearfamily

    35% of 24 year

    olds are graduates

    40% of

    workforce are

    women

    Over half of adults are

    unhappy with theirstandard of living

    38% would take a

    pay cut for less

    stress

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    Arts Council England

    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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    Arts Council England

    Ageing and agelessness

    Ageing population

    Impact on future resourcesand on changing social

    expectations and values

    Impact of the over-50s onspending

    Beware of assumptionsabout stereotypes

    New demographic groups

    38

    43

    46

    25

    30

    35

    40

    45

    50

    2000

    2025

    2050

    Median age

    in years

    Projected UKpopulation

    Source: US Bureau of the Census, International Data Base, 2002

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    Arts Council England

    The experience economy

    Purchasing material goods,or purchasingexperiences?

    The pleasure ofconsumption what does it

    depend on? Retail or leisure? or both?

    What do consumersexpect?

    Bite-size art, or elaborateexperiences?

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    Arts Council England

    The search for authenticity

    The unusual is becomingmore and morecommonplace

    The concept of the

    authentic What is authenticity?

    Defined origin

    Handmade

    Traditional

    unique

    Mass-produced and easilyreplicable products and

    services are under pressure

    to engage with consumers

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    Arts Council England

    The cult of self improvement

    Replacing the bluffersguide mentality

    Life coaches

    Evening classes

    Learning holidays

    Bibliotherapy

    Growing interest in books

    and book clubs

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    Arts Council England

    Modal consumers

    The modal consumer

    Negotiating multiple roles,helped by technology

    Four key types of activity:

    Recovery (eg hobby, sport)

    Sanctuary (eg time with thefamily)

    Territory (eg gardening)

    Exploration (eg web surfing,

    creative writing)

    Varying leisure experiences

    Self Citizen

    Worker

    FriendConsumer

    Family

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    Arts Council England

    DIY media and personalisation

    Increasingly selectiveconsumers

    Self-scheduling of content

    Self-editing and creation ofown content

    Greater expectations that whatconsumers access / purchase ispersonalised to their needs andinterests

    In commercial environments,personalisation of contentappears to be higher value butreaches smaller proportion ofthe market

    58

    44 42

    22

    57

    37

    5754

    47

    55

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    15-24 25-34 35-44 45-54 55+

    Use favourites list - Interactive TV

    Use bookmarks - Internet%

    Source: Henley Centre / BMRB Digital ViewerWave 6 / Olympus Research

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    Arts Council England

    The always on society

    Mobile phones

    Always on is thedefault; switching off is

    now a choice

    Similar expectationsaround access to

    companies andexperiences

    Impact on socialinteraction

    % agree with statement:

    I like to be contactable on

    my mobile all the time

    70

    37

    0

    10

    20

    30

    40

    50

    60

    70

    80

    Age 15-19 Average adult

    %

    Source: Henley Centre, PCC 2002, W2

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    Arts Council England

    The rise of rights

    The growing disparitybetween the richest andpoorest in society

    Dramatic divisions of

    access and inequity acrossUK society

    Increasingly strong publicawareness of the

    infringement of rights and

    means of reparation

    Attracting consumers fromethnic minority

    backgrounds and disabledpeople is a key aim

    4.4

    3.2

    3.5

    3.0

    20

    25

    24

    30

    10 5 0 5 10 15 20 25 30

    1979

    1990

    1996

    2010

    %

    % share of total income byhousehold

    Bottom 10%

    Top 10%

    Source: ONS, Households Below Average Income; Henley Centre

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    Arts Council England

    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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    Arts Council England

    Feminisation of the workplace

    Gender and the UKworkforce

    UK women returning to work

    within a year of having a

    child The pay gap

    The growing importance ofwomen in the workplace

    Substantial changes in workpractices

    57

    51 50

    43

    49 50

    20

    25

    30

    35

    40

    45

    50

    55

    60

    1982 1992 2002

    Male Female

    % of UK workforce

    Source: EEDA Equality in focus; GEM Report UK 2002; Nomis; The GuardianViewpoint #10, The Economist

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    Arts Council England

    Itinerant workers in the 21st century

    Moving from rigid to fluidorganisational structures - newways of using resources

    Hot-desking and sharing otherresources

    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-termemployment on a project

    basis in the creative industries

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    Arts Council England

    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 ofcreative thought

    encouraging organisational structuresand 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

    Its almost a rule

    that the better an

    organisation is at

    attracting

    government

    funding, the worse itperforms

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    Arts Council England

    Business and innovation

    The increasing role ofcorporate sponsorship

    Initiatives which

    combine artisticexperimentation with

    corporate research

    Mobile Bristol

    But how applicable is

    this to more

    established art forms?There is much to be said forseeing artists as servants of

    the innovation process

    John Thackara

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

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    Arts Council England

    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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    Arts Council England

    The management of talent

    The importance ofhorizontal, non-hierarchicalstructures 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 cant socially re-engineerthese systems

    without understanding them

    intimately. You need to knowwhat its like to struggle with

    the pressures at the grass

    roots.Prof Henry Mintzberg

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    Arts Council England

    The corporatisation of the arts

    Increasing professionalism ofthe arts

    Changing expectations fromfunders

    Wider social trends such as theimportance attached to formalqualifications

    Emphasis on management skillsat the expense of professionalexpertise

    A trend seen in both the public

    sector and the private sector

    A site of struggle which

    creates permanentorganisational tensions

    Managers

    Professionals

    Targets Budgets

    + +

    _ _

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    Arts Council England

    Renegotiation of the workplace

    Change from fixed contractsto more negotiatedrelationships

    Large rise in part-time and

    temporary workers

    Employees demand greaterflexibility and work/lifebalance

    Office structures are moving

    towards club environments

    Space for meeting, thinking

    etc

    Leisure facilities, shops, dry-

    cleaning, creche facilities-2461

    1046

    -1415

    1381

    2792

    4173

    776 629

    1405

    -3

    -2

    -1

    0

    1

    2

    3

    4

    5

    Male Female Total

    Full time Part time Self employed

    000s

    Change in employment status, 1971-2005

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

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    Arts Council England

    The artist as catalyst

    Traditional concepts of theartist

    The importance of

    individuals and artisticorganisations as creative

    catalysts

    Organisational, facilitativeand financial strands of the

    creative process

    The role of creative catalystin the growing integration ofarts initiatives with wider

    social initiatives

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    Arts Council England

    The rise of the city region

    Increasingly mobile workforce

    Gravitation towards cities seen as

    tolerant and outward looking, andhaving good public spaces and

    culture

    The focus on the rehabilitation ofurban centres as marketable

    popular cultural venues

    Safe cultural choices and the

    predominance of corporateownership can lead to the

    homogenising of culturalexperiences

    Cultural innovation often occurs intemporary, marginal areas

    Source: Henley Centre; RichardFlorida, the Rise of the Creative Class; Chatterton & Hollands, UrbanNightscapes: Youth Pleasures, Pleasure Spaces and Corporate Power(2003); Archis 2003; Hakim Bey

    Historic, residual andalternative forms of nightlife

    are increasingly

    marginalised over-regulated till they

    disappear orbought out

    under the weight of urbanrenewal and gentrified

    leisure

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    Arts Council England

    Key questions

    What are the key qualities of arts organisations in our model?Which are shared by every quadrant? And which are peculiarto 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 organisationalpractice?

    In what ways do arts organisations differ from otherorganisations?

    How best can arts organisations ensure they are sensitive toconsumer or audience demands?

    How best can arts organisations manage their resources toensure quality and innovation?

    What methods of funding best support this?

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