Capacity Building Initiative 04/05/2012 Learning Sessions

To invest, inform, and impact

the administrative capacity of arts organizations

toward artistic excellence.

Sustainability (Formerly the MODE Stabilization Program)

Accelerator (Formerly the MODE Intensive Services Program)

Incubator

Pre-Incubator

Capacity Building Initiative

PROGRAM: Pre-Incubator Incubator Accelerator Sustainability

Goal Develop orgs from

idea to start-up

Incubate orgs from start-up to growth

Accelerate orgs from growth to maturity

Sustain mature orgs through decline & turnaround

Partnership Term 12 months 36 months 12 months 12 months

Investment Limited awards of

$5000 - $7500

$15,000/year for three years

Up to $10,000 - $20,000

Up to $20,000

Services Management services &

capacity funding

Client residency, management

services, & capacity funding

Technical funding for multiyear strategic

planning or implementation

Technical funding for multiyear strategic planning

or implementation

Client budget size $10K - $75K $75K - $200K $100K - $750K $750K+

Client staff size (Full Time Equivalent)

0 – 1 FTE 0.5 – 2 FTE 2 – 4 FTE Staff > 3 FTE

25 Current Clients

Class of 2013 Art Cars of Houston

Aperio BooTown

The Back Porch Players Houston Blues Museum

Horse Head Theatre Company KASH

Lone Star Lyric Theatre Festival

Mildred’s Umbrella NobleMotion Dance

Stark Naked Theatre Company WindSync

Class of 2013 Brazilian Arts Foundation

Classical Theatre

Company

Dance Source Houston

Freneticore

InterActive Theatre

Company

Class of 2012 ArtBridge

Aurora Picture Show

Houston Center for

Photography

Voices Breaking Boundaries

Class of 2013 Hope Stone Inc.

Class of 2012

Houston Center for Contemporary Craft

Class of 2013 MECA

HITS Theatre

The Initiative at-a-glance

Sustainability clients inform Accelerators as …

Pre-Incubators establish critical infrastructure.

Building a Culture of Learning

Accelerator clients inform Incubators as …

Incubator clients inform Pre-Incubators as …

Important Dates

• Deadline to Apply with Required Support Materials:

– Friday, May 25, 2012 5:00 P.M.

– Not a postmark deadline

• Timeline:

– July 2012 - Panel Review

– August 2012 – Award Notifications Sent

– September 2012 – Program Orientation

• Grant Period Term: – October 1, 2012 to September 30, 2012

Capacity Building Initiative

Informational Workshop:

Accelerator & Sustainability Programs

Thursday, April 26, 2012 | 12:00pm – 1:00pm | at Houston Arts Alliance

Register now at:

http://haacapacitybuilding.eventbrite.com

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Accelerator Phase 1

Client:

Grant Term:

09/2010 – 08/2011 Contact:

Keelan Wackman

Executive Director kwackman@cityartworks.org 713-681-1331 www.cityartworks.org

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Use of Funds ISP Phase I (Strategic Plan) :

To engage consultants and the creation of a long-term strategic plan.

Process

• A Leadership Team was assembled.

• The Leadership Team reviewed consultants’ proposals and made a determination of whom to contract.

• In bi-weekly meetings the Leadership Team was guided by the consultant in reviewing materials, discussing values and objectives, as well as brainstorming ideas about CA’s present and future.

• Specific workgroups further discussed various aspects of the organization.

• Ideas were distilled, evaluated against objectives, and prioritized as they were integrated into the strategic plan.

• A three-year plan was finalized and approved by the Board of Directors.

Outputs

• Refined Mission/Vision statements, core values, and organizational value proposition.

• Specific and attainable goals were established and immediate progress was made in the areas of facility improvements, staff capacity, community engagement, and technological optimization.

• Work Groups continue to provide a valuable entre for new stakeholders and assist in progressing various initiatives while providing meaningful insight and connections.

• A newly formed Teachers’ Leadership Council is bolstering program quality and teacher/staff relations.

• CA Board and staff became better aligned in their understanding of the organization and keenly focused on shared goals with shared values.

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Develop a business plan which ensures financial stability.

A sound value proposition and thoughtful goals guides revenue development and stakeholder engagement.

•20 more classes at elementary schools in spring 2012 than in spring 2011. •Host committee for new membership drive of over 50 people. • New CA Scene events will entice more participation, awareness, and revenue.

Increase staff capacity to better manage work load.

New staff and adjusted roles and responsibilities make best use or staff resources allowing CA to grow programming in multiple new directions.

• A Program & Marketing Coordinator hired in the summer of 2011 has increased stakeholder communication in all arenas and recruited additional volunteers. •Program Director became a full time position encompassing curriculum development. •Short –term, project specific Contract positions created.

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Technology use is optimized. Better hardware and software is increasing staff efficacy and improving organizational functionality.

• New software allows CA to combine event management, class registration, database , and online marketing. •Donated computers and printers improve function of the office. •New staff increases utilization of social media drawing more stakeholders.

Financial analysis will ensure best use of resources and provide financial stability.

Financial analysis yields real-time pricing and budget metrics. Financial procedures are documented. Cost savings measures are identified and acted upon.

• Budgets and tuition costs move toward reflecting actual expenditures. • Staff and Board are aligned and planning for succession. •Annual and monthly savings in vendor relationships are realized. •Fixed and variable expenses are better understood.

Outcomes • What is different now compared to the

beginning of the grant term?

– Procedures have been created, documented and utilized to ensure thorough systems are in place in all aspects of the organization.

– Board and community have new opportunities to engage with CA.

– Renewed vision aligns all communications and is infused into decision making at every level.

– Staff and Board capacity is recognized as the keystone to realizing CA’s vision.

• Are these changes that will last?

Keys to Success

• List significant accomplishments and strides made throughout your grant

– The Leadership Team and work groups were inclusive of Board, staff and community members.

– The need for change and improvement was diplomatically discussed ensuring that the legacy and past efforts of the organization were not devalued.

– Meeting facilitation allowed for unique view points and candid dialogue about the organization strengths and opportunities.

– Strategic goals were based on shared values and objectives allowing them to be implementable.

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Lessons Learned

• What were your course corrections?

– The amount of time which staff and Board members needed to focus on strategic planning was underestimated. Timelines had to be adjusted to allow for other programmatic priorities as necessary.

– Managing new initiatives along with existing work load is challenging without the staff and monetary resources needed. Thoughtful change management is needed to ensure continued staff buy-in as roles and responsibilities grow and change.

– Consistent and clear communication of the details of the plan must be infused into all conversations to be sure all stakeholders are kept in the loop.

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Summary of Future Plans

• Three-year strategic initiatives will be distilled to specific and measurable yearly goals.

• Additional resources will be sought to implement aspects of the plan enabling CA to be well equipped for growth.

• Efforts to broaden our base and engage new stakeholders will focus on revenue development, programmatic collaborations, and building the Board of Directors.

• A fund-development/ grant-writing position will be formed as budget allows.

• A new community studio/office will be sought after and the resources needed to realize this dream will be evaluated.

• Increased PR and Marketing efforts will be infused with powerful and consistent messaging to build our brand and leverage our value proposition.

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Accelerator Phase II

Client:

Grant Terms:

09/2005 – 08/2006

09/2007 – 08/2008

09/2009 – 08/2010

09/2010 – 08/2011

Contact:

Deborah Lugo

Executive Director dlugo@mercurybaroque.org

713-533-0080 MercuryBaroque.org

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Use of Funds To engage consultants and increase organization capacity through a hire of a new full time:

1) Executive Director 2) Marketing Director 3) Development Director

Activities 1) Executive Director Main Goal: To build a healthy organization

•Transferred all management tasks from the Artistic Director and Founder to the new Executive Director.

•Board Development •Fundraising •Budgeting and Planning •Marketing •Concert production

Activities 2) Marketing Director Main Goal: Audience Development • Created a new Marketing Campaign that focused on freshness and accessibility

• 1st time musicians were showcased in pictures

•Launched Mercury to the 21st century by establishing our web presence: Youtube, podcasts, e-newsletter and new website. •Developed new relationships with the media.

Use of Funds 4) To Increase organization capacity through the hire of a part time staff member to

support new marketing initiatives and increase earned income from ticket sales.

Activities 3) Development Director Main Goal: Grow Contributed Income • Brought new contributed income opportunities in the areas of individuals, foundations and corporations. •Developed the Patron Program and the Adopt an Instrument Capital Campaign. •Assisted in organization of the Gala . •Managed and expanded silent and live auctions.

Activities 4) Marketing Initiatives and Part time Staff Main Goal: Increase Earned Income •Implemented new marketing strategies with the purpose of growing our audience. •Purchased a new database and ticketing software to be able to handle all ticket sales in house and offer the best service to our patrons. •Hired a part time Marketing Associate to implement and oversight all these tasks.

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Executive - Increase the overall revenue of the organization

- Higher revenue than expected from contributed and earned income

- 45% revenue increase in one season

- Add new board members and increase level of giving

- More members were added and board contributions were also higher

-The board grew from 13 to 15 members -Board contributions increased by 53%

- Grow Audience - Increase concert attendance -Ticket revenue grew by 38%

-Transfer management tasks from Artistic Director to new Executive Director

- Able to transfer most tasks. Some artistic administration tasks remained under the AD position

-Due to increase in revenue and controlled expenses, we had a 9% surplus at the end of the season

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Marketing - Increase ticket sales

- The growth in ticket sales was evident

- 77% revenue increase in one season

- Retain subscribers - High renewal subscription rate for the following season

- 83% of subscribers came back

- Develop relationships with the media

- Strong relationships were established. Part of the ISP funds were used to contract a publicist who helped with the relationship building.

-Received free advertisement in the Houston Press and Houston Chronicle. - 002 Magazine became our print sponsor for the season . - Several articles about us were written in the Chronicle.

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Development - Increase contributions from Foundations, Corporations, Government and Individuals

- Contributed income increased almost $100,000. From $439,743 to $535,917

-Highlights include $75,000 from the Houston Endowment, a two-year $40,000 grant from the Brown Foundation, $25,000 from JPMorgan Chase and $12,000 from NEA, our first grant from them

- Assist with the Gala fundraiser - Even more successful than the previous year

- $105,000 net revenue, up from $75,000 the year before

- Develop new programs - Two new programs were created: Patron Program and the Adopt an Instrument Campaign

- 22 members joined the Patron program at $2,000+ per year - One violin ($10,500) was adopted

Outcomes & Indicators ANTICIPATED SHORT TERM OUTCOMES

(beginning of grant)

ACTUAL SHORT TERM OUTCOMES (end of grant)

INDICATORS (Indicators measure whether or

not a program achieves its expected outcomes. )

Earned Income -Increase our sustainability by growing earned income

-Extremely successful in achieving our main goal

- Earned income grew 88%, from $208,000 to $391,000

- Pick 3 for $45 Campaign - The outcome of this campaign was better than imagined

- 254 Pick 3 Packages sold.

- Purchased new database and ticketing software

- Successfully implemented - All ticket sales are handled through the office. -Has transformed the way we do business since all staff members can access the patrons’ information. -Improved customer service -Most importantly: we know our patrons and they know us.

- Hire a part time Marketing Associate

- The person hired was able to implement and oversee all the different tasks

- Very successful. The position was made into a full time position for the following season

Outcomes • A Healthy Mid-Size Organization focused on

artistic excellence, passionate and intimate performances, education and accessibility

– A 436% revenue growth in 7 years

– 6 Staff Members (4 added through ISP grants)

– 27 Board Members

– Performing over 50 concerts a season

– Established partnerships and collaborations with many organizations in Houston

– A strong education program

– International touring to France, Ecuador and Mexico

– A loyal base of supporters

Keys to Success

• Have a clear understanding of the organization’s needs. Make sure that what you are asking in the application is really what is most needed for the organization.

• Plan, plan, plan

• Convey your needs in a way that everyone on the panel understands it. Make sure the proposal is clear, specific and well-written.

• Talk to the HAA staff member before submitting the application.

Lessons Learned

– Stay on track. Make sure you revise the activities and outcomes necessary to be successful at the end of the grant period.

– If hiring a staff member, think carefully about who the right person for the job is. This is critical. Once hired, stay on top of the training and explain what the expectations are and how their work will be evaluated at the end of the season.

– Keep track of all of the receipts and expenses.

Summary of Future Plans

• Mercury has been able to keep all the staff positions that were added through the ISP grants. We will continue to add personnel as funding permits.

• We continue to focus on growing earned income. This is a must in order to continue to build a sustainable organization.