Symphony: Financial Strengths

A1:

Symphony: Financial Strengths

The symphony has several opportunities for fund raising through the sale of performance tickets because they have over 200 performances a year. When combined with strategic marketing campaigns they have the ability for sell out performances.

The symphony currently operates in the black due to strategic planning. It is simpler to form an institute that is in despair due to bad debt.

The symphony at $3,868,513 generates $2,808,336 more in performance revenues then the opera at $1,028,177. Their financial surplus is $116,308 giving them a bit of a boost going into the next year.

Of all funding for the arts, 6% comes from municipal, state, and federal governments. (Ager, 2005) On average 25% of the symphony's funding comes from government grants, and is 19% greater than like establishments.

They've supported a workforce of 33 full time employees and 83 musicians. The performer talents continue generating ticket sales. There also is a prospect to profit from the performer talents by proposing seminars, music camps and other like projects to generate funding.

They have the capability to access an added $1,214,733 in funding getting closer to the $8.8 million average for like symphonies. The help of an experienced fund raiser would assist the symphony in quickly closing the gap amongst sustainability and closer.

Symphony: Leadership Strengths

The symphony leadership is engrossed in custom meaning they have a firm grip on the cultural ways their musicians embrace. Mr. Lockhart must embrace this knowledge and support conserving the unpretentious traditions through the merger process and into the future. Safeguarding these traditions will support conserving the integrity of this art for all those who wish to gratify themselves with its musical beauty.

Mr. Lockhart is well-known for his professionalism and experience in a director position. His experience and leadership of several other groups qualifies Mr. Lockhart for the Utah Symphony position. He clearly and decisively understands the operations level both financially and artistically.

Pronounced leadership has the capability to "attract world-class artist, maximize efficiency of administration and planning, give donors a greater return on their investment and create new educational opportunities." (Baker, 2002)

Symphony: Financial Weaknesses

The symphony has a ticket price increase coupled with an expected revenue increase at 1%, yet the total expenses are expected to increase at 2.5%. This generates a shortage of 1.5%. The symphony may no longer be able to greatly rely on the ZAP contributions as those funds might be taken away. (Ager, 2005)

There has also been a decline in revenues created from investment income and endowments. At present, one third of its value has been lost since January; re-investing funds by 33% has been taken away for next year. (Ager, 2005)

Because their facility is not owned, they risk losing that location if the rental agreement is not met or Salt Lake County deciding the location is better for their use. Local and state tax revenues have deteriorated for the organization due to fewer available funds; additional organizations are seeking those funds.(Ager, 2005)

The previous year's weak capital campaign failed to generate the support needed. There has been a decrease in attendance because of new economic limitations imposed across the nation. Last of all, the symphony has a contractual commitment to pay musician salaries. This contract has a 12.9% automatic payment increase from 2002 to 2003 and an additional increase of 6.8% the following year. (Ager, 2005)

Of all their funding combined, 33% is derived from ticket sales. Contributions and governmental grants complete 58% of their entire annual income. (Ager, 2005) These opportunities are not reliable for long term sustainment.

They border a continued deficit that has no ending. (Ager, 2005) $2,042 is their projected financial surplus, ultimately ensuring continued financial deficit by the end of the new fiscal cycle.

The Symphony's fundraising has a shortfall of $1,214,733 from other like symphonies that collect on average $8.8 million. This advocates that fundraising is a severe weakness for the symphony.

Symphony: Leadership Weaknesses

The symphony is immersed in tradition. This can be a weakness and/or a strength. At a time when organizational leadership is so submerged in custom, leading the organization forward into new possibilities can be exceptionally challenging.

Another leadership weakness is they see change as "recluse" and the emotion of fear is associated with change.

The leadership felt that there was no room for flexibility in their performance schedule making it difficult for other options to be considered during the merger.

Their CEO position is currently empty, leaving a huge role to fill in the symphony leadership. Because of the lack of a CEO position exists, major leadership responsibilities are now Mr. Lockhart's to bear. Also, being able to recruit another CEO with the knowledge and skills required to move the symphony forward would be extremely difficult to do.

First, Mr. Lockhart was fearful for his job; secondly, he was terrified of giving up management control of the symphony thereby being an ineffective leader. Nearly everyone views Mr. Lockhart as being the director (the head man) of the organization. (Ager, 2005) There is no pure understanding of how the symphony functions by the general public. There is however, respect given to Mr. Lockhart's actions, attitude and recommendations. Mr. Lockhart's sensitivities lie in the artistic vision and words, not toward financial responsibilities and guarantees - keeping the mission of the organization in mind.

There never has been a fervent affiliation between the musicians and the board. The board re-visited and revised the collective bargaining agreement to reduce the salary for the musicians which has caused distrust and anger.

Last but not least, symphonies are by and large slow to transform, meaning that the traditional group of leadership is dawdling when adjustment is required.

A1a:

To help weather the symphony's commitments and financial responsibilities, it's imperative to engender funds. Increasing the prices of tickets is a start, but so much more must to be done. As discussed earlier the symphony's investments have not been productive and has actually lost money. My recommendation is