american shakespeare center

American Shakespeare Center

Stewardship, Innovation & Social Entrepreneurship

MBA 658David Kirby

Kevin HumphriesHans Hseih


AUGUST 6, 2009

Facts• Founded in 1988 - Home company of the Blackfriars Playhouse

• Over 360 performances per year, over 50,000 visitors, and 12,000 students and teachers.

• America's most traveled Shakespeare company: 47 states and 5 countries to date

• Center for Renaissance and Shakespearean Staging (NEH, 1995)

• Winner: VFH Award for the Advancement of Literature in Virginia

• $4.5 million investment in Blackfriars; $2.8 million annual budget; stimulated $20 million to restore Stonewall Jackson Hotel; and numerous other public/private investments. Sources: http //mbc.edu/shakespeare/partnership.asp

(Smith, A., 2009)


VisionMaking Shakespeare enjoyable for all

Mission• Performing Shakespeare and Renaissance drama in original staging

conditions

• Education – Mary Baldwin College’s MFA, elementary and high school students

• Scholarship - World-renowned actors, directors, scholars, and specialists will be a part of American Shakespeare Center and teach in Mary Baldwin College's MLitt./MFA program

http://mbc.edu/shakespeare/partnership.asp


Our Thesis

The American Shakespeare Center has the potential to be a great organization – one that delivers superior performance and makes a

distinctive impact over a long period(Collins, J. 2005)

Application through :Stewardship, Innovation, Social Entrepreneurship


Stewardshipholding something in trust for another and the careful and responsible

management of something entrusted to one’s care. (Smith, M. 2000)

Five Principles of Stewardship:– Balance– Interdependency– Regeneration– Diversity– Succession

(Smith, A. 2009)


Stewardship of the Stakeholders • Stewardship is founded on the belief that others have the knowledge and

the answers within themselves. (Smith, M. 2000)

• Stakeholders represent a potential source of hidden (organizational) value.(Laszlo, 2008)

• Valuing the Stakeholders adds balance to the organization as it gains a greater share of the public mind

• (ASC) exists in an interdependent and networked environment, and going it alone is a doomed strategy.

(Esty, D., Winston, A., 2006)


Stakeholder Map• The systematic mapping of all stakeholders and understanding the influence they exert will enable ASC to

achieve a sustainable advantage.


ASC

Founders

Staunton

Board of Directors

City Staff

Council

Mary Baldwin College

Citizens

MFA

Lines indicate relationships (solid = strong, dotted = weak, none = none). Size equals relative size of the client.

Color equals the client feeling about the product or service (green = very good, red = good, purple = some good/some bad)

Employees

Donors

Audience

Other Shakespeare Centres

Stewardship of the Mission


World's only authentic reconstruction of Shakespeare's indoor theatre

Located in downtown Staunton, just blocks from the Mary Baldwin campus

Serves as theater,classroom and laboratory

http://mbc.edu/shakespeare/partnership.asp

Stewardship of the Mission• According to Collins, great organizations focus on what they can do better

than anyone else can in the world. (2005)

• Pragmatic organizations fail more often than ones that did not compromise their principles to attract more revenue or profile. (Edwards, 2008)

• The distinctive characteristic of ASC is the Blackfriars Playhouse.

• Focus on doing Shakespeare in the Blackfriars Playhouse

• “Marketing is all about institutional vision and strategy. Know where you are and where you are going. You must understand what is sacrosanct to external audiences. You must acknowledge nostalgia.” (Oster et al., 2004)



• ASC must be managed for success because the supporters need to not only believe in the mission but also in the organizations capacity to deliver on that mission. (Collins, J, 2005)

• Developing core values

• Comprehensive business plan – strategies, objectives, financial, marketing, sales, metrics for measurement

• Governance Issues – board development

Stewardship of Capacity Building


Changing the "rules of the game"

ASC influences Staunton It drives economic developmentArts and culture & Globe development

Developing a sustainable culture and brand identity. Employer of choice.

ASC & community share a distinctive brand

Meeting unmet social needs

Stewardship of stakeholders for organizational and community development

Creating product differentiation

The mission focus - Only Blackfriars Playhouse reproduction in the world

Reducing costs (energy, waste)

Capacity building through management of resources

Reducing compliance risks

Stay ahead of the curve by engaging stakeholders – esp. on the government level

*Laszlo, Chris (2008). Sustainable Value

Sustainable Value Chain American Shakespeare Center

Risk

Process

Market

Product

Brand/ Culture

Business Context

Strategic Focus

Innovation • An innovative culture is one that takes advantage of

opportunity to add value to an organization

• Opportunities for Innovation

– Internal– External – 1st Order Innovation(Scalar)– 2nd Order Innovation(Relational)


• Limited stakeholder connection

• Failure in public perception

• Taxpayers of Staunton

• Opportunity • Go out, look, listen and ask• Connection with stakeholders• Educate – performances and mission• Open house events


Shake the “fear” off Shakespeare

– Interpret Shakespeare’s Language– Provide education in understanding of Shakespeare’s language– Connect with first time attendees– Spark interests for return playgoers

Seminars

– Increase geographic footprint


Downtown Arts and Culture District

• Taking the lead role- Demonstrates 2nd Order Innovation

• Connect with core stakeholders

• Collaboration- Constituents with similar interest, not necessarily in Shakespeare


External/Internal Relationships

– Dame Judi Dench– Expanding from local to global focus

Board of Directors- Shifting from local to regional and national

Value and Credibility


Touring Troupe

– Increase presence and earned income– Opportunities

» Public Events, » Outdoor Venues» Public gatherings» Paid or free» Generate interest in travelling to Staunton


Developing the Resource Engine

The resource engine is actually a hybrid….

Part earned incomePart contributed support

Both provide ASC with clean energy


Improving Earned Income

• Community interaction, vignettes, local promotion• Raise ticket prices (NEA says attendance not tied to price)• Distribute more complimentary and discount tickets• More “plain English” Shakespeare• Another non-Shakespeare production; e.g. “1776” or related historical

production on Independence Day• More efficient facility schedule to allow for fee based outside use• Consider options to generate revenue at Globe site


75

80

85

90

95

100

105

2003 2004 2005 2006 2007 2008

Relative Earned IncomeEarned Income of Nonprofit Theaters

Since 2003, attendance at spoken theater events nationwide has declined by 16%

There are twice as many nonprofit theaters today as there were in 1990

Source: NEA, 2008


ASC’s Earned Income Since 2003

In remarkable contrast to industry trends, ASC’s earned income

INCREASED BY 50%

from $1.3 million to over $2.1 million. Source: Guidestar


Revenue Mix of Nonprofit Theaters


Dealing with the Unexpected Discovery:An Opportunity for Innovation!

• ASC has been challenged on the bottom line.• “Look elsewhere from the problem to find the solution” (Ackoff, 2008)• ASC bucks the industry trend for earned income.• With 16% less relative contributed support that its peers, ASC may have an

opportunity• Perhaps some ways to increase, but not the obvious solution once

perceived.• ASC has had fundraising success, but it’s fundraising efforts have been

crisis generated, not regenerated.


“ASC should sell its mission, not its fear!”

• Formal fundraising mechanism needed• Build emotional connection with stakeholders• Employ diverse mix of appeals

• Healthy attendance record and trend + Local constituent demographics = Capacity for sustainable contributed support

• Grants and contributions are a source of strength because they connect the organization and its stakeholders

(Edwards, 2008).


Balanced Approach• Annual Giving Program

– Programmatic – Giving levels with quid pro quo rewards– Number of subscriptions and seat location improve as donors move

through giving levels• Grants need to be a part of fundraising mechanism

– Invest in mitigating cyclical restrictions– NEA reports that its funding has been a catalyst for attracting

sizeable contributions from other sources• Planned Giving Program

– Cultivates larger estate and trust gifts


Benefits

• Fits with Stewardship goal of a better connection with stakeholders• Connected to core program and mission• Takes advantage of ASC’s fundraising capacity relative to industry

peers (NEA, 2008)• Helps to balance ASC’s overall revenue mix• Has potential to be a turning flywheel (Collins, 2005)• Large gifts could provide source of capital to reduce or eliminate

debt


“To Be or Not To Be”….a Great, Mission Driven, Flywheel Turning Organization

What does will it require of ASC? Balance Governance Inter-dependent on local culture Regenerating fundraising program Diverse revenue generating stream Succession planned, not crisis saved

Smith, A. 2009


In conclusion, our journey with ASC was a process of innovation as a result of some unexpected findings

• Sticking with the mission is an appropriate strategy• Connection with stakeholders on a deeper level will yield results;

board diversification is a good place to start• The level of earned income is not the problem• A strong, programmatic fundraising mechanism could eliminate the

need for crisis appeals

So, for the board, management and staff of ASC, we think our findings and recommendations are……..


“As You Like It!”


• References:• Ackoff, R. (2008, December 12). YouTube. Message posted to

http://www.youtube.com/watch?v=MBrEJjT-dWU&feature=related

• Collins, Jim. (2005). Good to great and the social sectors. New York:Harper Collins.

• Drucker, Peter. (1985). Innovation and entrepreneurship: Practice and principles. New York: Harper & Row.• Edwards, Michael. (2008). Just another emperor? The myths and realities of philanthrocapitalism. New York: The Young

Foundation.

• Emery, F.E. and Trist, E.L. (1965). “The causal texture of organizational environments.” Human Relations, Vol. 18, No. 1, 21-32. Sage Publications.

• Esty, Daniel and Winston, Andrew. (2009). Green to Gold: How smart companies use environmental strategy to innovate, create value, and build competitive advantage. Hoboken: John Wiley.

• Guidestar. (n.d.). Non Profit report section. Retrieved August 1, 2009, from http://www2.guidestar.org/ReportNonProfit.aspx?ein=54-487955&Mode=NonGx&lid=531476&dl=True

• Laszlo, Chris. (2008). Sustainable value: How the world’s leading companies are doing well by doing good. Stanford: Stanford University Press.

• National Endowment for the Arts. (2008). “All America’s a Stage: Growth and Challenges in Nonprofit Theater”. www.arts.gov

• National Endowment for the Arts. (2009). All America's a stage. Retrieved July 27, 2009, from http://arts.endow.gov/research/TheaterBrochure12-08.pdf

• Oster, S., Massarsky C., and Beinhacker S., (eds.) (2004). Generating and sustaining nonprofit earned income. San Francisco: Jossey Bass.

• Smith, Anthony. (2009). Stewardship design principles. Presented at Global Forum 2009 on Business as an Agent of World Benefit, UN Social Compact and Case Western University, Cleveland, OH. June 2-5, 2009.

• Smith, Marilyn. (2000). Steward-leadership in the public sector. Presented at 23rd Annual Conference on Public Administration Teaching. Fort Lauderdale, FL.

http://www.youtube.com/watch?v=MBrEJjT-dWU&feature=related

http://www2.guidestar.org/ReportNonProfit.aspx?ein=54-487955&Mode=NonGx&lid=531476&dl=True

american shakespeare center

Documents

missionperforming shakespeare

traveled shakespeare

stakeholders stewardship

date center

principles of stewardship

mary baldwin campus

program http

laboratory http