encatc responding to the crisis with culture policy debate report 2013

7/29/2019 ENCATC Responding to the Crisis With Culture Policy Debate Report 2013

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n partnership with Supported by

Responding to the crisis with culture:Towards new governance & business models

for the cultural sectorPolicy Debate Report

5 July 2013 // Brussels, Belgium


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As consequence of theeconom ic c r i s i s , pub l i cexpenditures for arts and culturehave decreased dramatically.Arts-cultural institutions andorganisations find themselves at

a turning point where new waysof managing and funding cultureneed to be explored.

This was the concept behind the3rd Annual ENCATC PolicyDebate organised on 5 July inBrussels in the prestigiousBOZAR Centre for Fine Artsattended by over 90 participantsfrom Europe and beyond.

Like all other sectors affected,arts and culture organisations

and those who govern them arestanding at a crossing. Now isthe time to consider new modelsand funding systems. As thewaves of budget cuts continueto hit, many are asking ispossible to save costs while atthe same time increaserevenue? Can restructuring howcultural organisations operatelead to increased efficiency andbetter management practices?How will the role of culturalmanagers evolve in light ofthese structural changes?

This report includes summariesof the presentations given byeight experts on arts andcultural management, andr e p r e s e n t i n g m u s e u m s ,orchestras, cultural and creativeindustries, and heritage sharedtheir knowledge, inspiring casestudies, and suggestions fornew models of governance for

their sector. They engaged withd e b a t e p a r t i c i p a n t s o nconsequences of the financial

crisis on the cultural sector,

shared their professionalexperiences of impacts theyvewitnessed, and how culturalorganisations forecast to survivewhen European and nationalsubsidies are being cut.

All the experts agreed that theseare challenging times, but thecultural sector is in a uniqueposition thanks to its wealth ofcreativity and cultural productsthat it can use to come out of

the crisis if cultural operators,m a n a g e r s , a r t i s t s a n dstakeholders are ready to adapttheir traditional models ofgovernance to the values andbehaviors of todays society.This challenging period will alsobe an important moment forl i f e l o n g l e a r n i n g a n dprofessionalizing the sector ifcultural managers are tosuccessfully execute innovativeprojects and new models of

governance. Especially now,this is not a time for amateurism.When the stakes are high allplayers, big and small, need to

be on top of their game if they

are to react quickly, ensurequality and performance andweather this storm, said Jean-Pierre Baeyens, holder of theMarketing Chair at the SolvayBrussels School of Economicsand Management.

Many recommendations andbest practices shared during thepolicy debate called forenlarging audiences andnetworks, combining resources

(intellectual, financial, logistical,etc.), engaging with localcommunities, looking forinternational cooperation andpartnerships, and embracingthis opportunity for change andinnovation. Across the board itwas very clear that culturalorganisations who resist changeand cling to their traditionalmodels of governance will notbe important players in thefuture that is if they still exist.

INTRODUCTIONGiannalia Cogliandro Beyens

ENCATC Secretary General

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ENCATC Policy Debate 2013 Report

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Culture inchallenging times:towards new modelsof business andgovernance for the

cultural sector

The word crisis gets thrownaround a lot in todays culturalsector. But what kind of crisisare we facing? Is it a globalcrisis? An economic cyclecrisis? Or a financial crisis?Between 2000 and 2011 GDPfor the G7 countries decreasedfrom 65% to 50% of World GDP.Since the crisis began in 2008GDP for the United States,

Japan, Germany, Italy andBelgium have been slow torecover while China, India andBrazil have witnessed lessimportant impacts on theirGDPs.

How does culture fit into thiscrisis? Across the Europeancontinent, culture is still highlydependable on state subsidysystems, however the ongoingfinancial crisis brings into

question current cultural policysystems. Central and EasternEuropean countries culturalpolicy embraces a ministerialsystem rather than the Armslength approach employed bytheir northern and westerncounterparts. However, asculture budgets are seeing deepcuts between 20-30% indifferent European countries,more and more northern andwestern governments are

moving to towards ministerialcontrol . Post communistEuropean countries are alsomore aware of instability and areperhaps better prepared toaffront the challenges presentedby the ongoing economic crisis.Regardless of current culturalpolicy practices, the economiccrisis presents an opportunity toconsider new models andfunding systems for all.

Traditional reactions to the crisishave been for new marketingand partnership strategies,efforts to reduce costs and

increase productivity, rely onv o l u n t e e r s i n s t e a d o f professionals, and provideprogramming that promoteswell-known artists, popular and/or traditional cultural activities.Yet, these actions are no longerf i n a n c i a l l y s u s t a i n a b l e .However, before choosing amodel, cultural organizationsneed to ask themselves a seriesof important questions such as:

What are the values of a culturalorganisation in question? Why isthe organisation implementingits activities? For whom? Whatkind of financial orientation?(Cost savings vs. Revenueincreasing) What kind ofcompetences? What kind ofe x t e r n a l r e l a t i o n s h i p s ?(Stakeholders approach) Whatkind of role for new technologiesand digitalization?

The cultural monitor model is auseful place to begin because itstrives to be more than justcollecting vast amounts of data,but looks to measure culturalvalues and goals as well asstakeholders management andinternal management (Klamer:2013). This model develops anevaluation system to defineawards and values of highperforming activities andperformances within the cultural

organisation.

As Europes knowledge basesoc ie ty g rows , cu l tu ra lorganizations should considerthis development as animportant source for economicvalue. Postfordism and theknowledge based economy

(KBE) model are particularlyinteresting. With governmentb u d g e t c u t s a l r e a d yimplemented and perhaps moreare to come in the future, thismodel strives to replacetraditional state subsidies bylooking at the four Ps: partners,projects, people and place(Vlkerlink: 2013). It looks forflexible and innovative projectsand highly favors sponsorshipand collaboration. An excellent

example of a cultural institutionalready employing this model isthe MASS MoCA, one of thelargest centers for contemporaryarts in the United States.

Other models to considerinclude corporate governancefor the cul tural sector,cooperation vs. competition toshare resources, and thene twork perspec t i ve tocollaborate with other actors,

both public and private. There isno one perfect solution for thecultural sector to come out ofthe crisis. Arts and culturalorganizations need to take alook inwards to evaluate theirstructure, finances, mission,e n g a g e m e n t w i t h l o c a lcommunities and audiences,and relationships with publicauthorities to best define amanagement strategy that willtake them into the future. It is

likely that the organisation willneed to adapt and combinedifferent management methodsto respond to its unique needs,but it seems that a systema r o u n d k n o w l e d g e a n dcompetences instead of aroundtools and techniques would bemore efficient. It will bei m p o r t a n t t o r e l y o nmeasurement systems forevaluation, work on expandingcollaborative opportunities, and

be open to new technologiesand digitization.

ANNICK SCHRAMMEProfessor Annick Schramme is the

Academic Coo rdi nator o f the masterCultural Management (University of

Antwerp) and the master clas s Cul tur alManagement (Antwerp ManagementSchool). She teaches about cultural

policy, international cultural policy andcultural entrepreneurship.


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New businessmodels for artists inchallenging times

In these difficult times themarket has more creativepeople than ever while publicand private resources arediminishing resulting in lessincome for the often strugglingartist. Stable jobs are beingrapidly replaced by intermittentshort-term contracts. As theylook for financial stability, manyartists are being pushed to workon the black market to make aliving. Yet while this may ease

their financial worries, this illegalactivity forces them to hidewhich is contrary to the need ofthe artist and their artwork to beseen.

These conditions do not have tocontinue. To bring artists to theforefront means it is not a timefor isolationism or competition.Artists and creative personsneed to work together to co-produce, co-organise and

cooperate. This is where non-profits and networks can be ofenormous value to bring peopleand resources together. Tofurther these connections, it isthe right time to invest incollective tools that encouragecooperation and allow it tof l o u r i s h . A r t i s t s n e e dorganizations that will help themnavigate the often complex legalenvironments, gain access tofinancing and sponsors, actors

that will advocate on their behalfboth at home and abroad, andresearchers that provide usableand accurate information on

developments in the culturalfield.

To improve the current climate,artist and their ideas need to

circulate so they can shareworks of art and gain newaudiences, partners, andsponsors. Yet complex visap r o c e d u r e s a n d h e a v yadministrative burdens arepreventing easy circulation. Thiscalls for a need to reduce andstandardize procedures that willallow for artists and creators towork and move efficiently andfreely.

It is also vital that investments

are made in education andtraining. While both areessential at the beginning of anartists career, this type ofcareer path is one where anartist never has enoughknowledge coming out ofschool. Therefore, continuingadult education and training forartists and creators is extremelyimportant especially duringthese difficult times. Investmentin education at all levels, butespecially lifelong education willprofessionalise the sector.Thanks to these efforts, artistswill acquire new knowledge andskills needed to flourish intodays art market and be betterprepared to take on tomorrowschallenges.

Taking into account the currenteconomic and social landscapeand the needs of artists,SMartBe is an example of an

organisation investing ininnovative solutions to helpindividual artists. From alreadytaking on some of the

burdensome administrativetasks (such as invoicing), toproviding pre-financing andvirtual meeting places, SMartBeis also looking to future

possibilities to be more involvedin artistic projects as co-producers and invest funds todevelop new services formembers.

Artists and creators need thesupport of organizations andpolicy makers that are looking tonew models and new tools thatwill facilitate cooperation,execution and output. The workof an artist is to create however

its not to say they should beexempt from the managementa n d a d m i n i s t r a t i v eresponsibilities that are a part ofany workforce. By providingthem with knowledge, tools andsupport to alleviate these timeconsuming tasks will allow themto concentrate on their on theirart and develop their craft for thebenefit of society.

JULEK JUROWICZAn engin eer by trai ning, co -founder anddirector of the Mutual Society of Artists

(Smart) Belgium, Julek J urowicz isManaging Director and responsible forthe automation and computerization of

procedures (2000) for the servicesoffered by this non-profit organization.

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New governancemodels for culturalorganizations inchallenging times

In organizations of all kinds,

good governance starts with theboard of directors. These wordsspoken by Lesley Rosenthal ofthe New York Lincoln Center forthe Performing Arts areespecially important duringchallenging times. Those wholead arts organizations arefaced with difficult decisions asthey react to the on-going crisiswhen they set strategy, appointtop management, overseemanagement performance,

decide on major investments,and control financial affairs.Especially now, this is not a timefor amateurism. When thestakes are high all players, bigand small, need to be on top oftheir game if they are to reactquickly, ensure quality andperformance and weather thisstorm.

Traditional management modelsare dying. We see this in the

aviation industry, banking,television, music and others. Ascultural organizations looktowards new governancemodels in these challengingtimes, two are particularlyinteresting: the entrepreneurialmodel and the cellular model.The first, by taking a moreinternal orientation reinforcesk e y c o m p e t e n c e s a n d

encourages entrepreneurialthinking, focuses on searchingfor opportunities, seeks acompetitive advantage, andallows to continuously test newideas. In this case the boardserves as a stimulator to

achieve these objectives andpractices. The cellar model onthe other hand, takes anexternal orientation and has theboard working as a facilitator,meaning the focus is on cellsw o r k i n g a l o n e o r i ncollaboration. These cells canbe teams, task forces, workingunits or operational partners.This model also rel iesextensively on online networksand technology in order to work

efficiently.Those governing culturalorganizations also need toevaluate their internal/externalv i s i o n . M o s t c u l t u r a lorganizations today executetheir activities with an internalvision by focusing on theirartistic product. In museums forexamp le th i s i nd i ca tesmanagement is likely run bycurators and conservationistswho are preoccupied first andforemost with the heritage andcollection the museum houses.Those who consume the art arenot the main consideration whendefining how to design andimplement the organisationsactivities.

Moving closer to the externalvision, a cultural organisationcould take on a customerorientation. Focusing on thecustomer who pays to have the

artistic experience is taboo in

some circles, especially forpurists who think the art shouldalways come first. Despitetaboos, many organizationshave shifted their focus towardsmaking sure their payingaudiences get the most out of

their experience and will returnwanting more.

One notch higher on theexternal vision is the societalo r i e n t a t i o n . H e r e a r t sorganizations will focus theiractions to be a real player insociety and contribute tosolidarity and well-being ofcitizens and using their art tomake a difference.

Finally, the most extreme on the

path to a total external vision isthe wiki orientation. This is themost open of all the orientationsand lets the people into thecultural organisation to voicewhat they want to experienceand be a part of creating thatexperience. For this vision to besuccessful, technology andsharing are crucial.

The crisis has led many culturalorganizations to question theirgovernance and strategies. It isdoubtful that the cultural sectorcan continue with its traditionalgovernance models and shouldlook to new models that are intune with societys values andconsumer behaviors. In order toweather this crisis and come outstronger than before, culturalorganizations must evolve froman internal to an external vision.If the focus is inward they arelikely not to survive.

JEAN-PIERRE BAEYENSJean-Pierre Baeyens is a graduate of

Harvard Business School (MBA, class of79). Previously, he graduated with a

Master i n Sciences in Management fromSolvay Business School (Universit

Libre de Bruxelles, Belgium, 1975). Hesprofessor of business administr ation atSolvay Brussels School of Economicsand Management where he holds the

Chair of Marketing.

Lincoln Art Center, NYCCurtis Cronn CC BY-NC-ND 2.0


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New businessmodels for museums

in challenging times

When the ICOM internationalcouncil of museum launchedits call in April 2013 on TheLisbon Declaration to SupportCulture and Museums to Facethe Global Crisis and Build theFuture, they asked publicauthorities to at least maintainsubsidies for museums. Theyclaimed these subsidies wereessential considering then u m e r o u s e x t e r n a l i t i e smuseums provide for societyand especially in economic andsocial domains. Nevertheless,

museums have to be realisticand foresee an innovativebusiness model that will makethem less dependable on thesubsidies. Therefore, it isimportant to challenge thecommon idea that museumscannot be considered as arat iona l dec is ion-mak ingutilitarian that is to say aneconomic agent being able tomaximize efficiency and willalways rely on public subsidies

and private donations.

Across Europe and around theglobe, public subsidies formuseums have droppeddrastically. Spain has cited a35% decrease over the past twoyears1, while the United Stateshas reported a dramatic drop instate funding for 47% of itsmuseums last year2. With thisworrying decrease in publicresources, many museums aresoliciting private donations, but

understandably these too havebeen impacted by the economiccrisis. Private funding is not onlyunable to make up for the loss inpublic subsidies, but is in factdecreasing. What are museumsto do in these challengingtimes?

Museums are in a uniqueposition in that they possesssome of the worlds greatesttreasures, but are struggling for

transforming these non-sellable

assets into profitable goods andservices. Internationalizationmay be the solution. In arecently published article3, thisstrategy was applied tointernational touring exhibitions.It presents three models of

internationalization and thedistortion on their cost model:coproduction, co-organization,and export with differentbusiness models resulting in anincrease of revenues due to thereducing of costs production andthe increase, in some case, ofresources.The first international touringmodel is the co-producedexhibition. This model offers adiverse catalogue, engendersintellectual resources bybringing together scientists andhistorians, and finally poolscosts and creates economies ofscale. A recent example of a co-produced exhibition is the 2012"Matisse, Czanne, PicassoL'aventure des Stein" -presented in Paris, New Yorkand San Francisco - thatcombined many resources, suchas transportation items. The co-production allowed them to save65% of this item in the initialbudget.

Another successful model is theco-organised exhibition that is acollaboration between severalmuseums, but unlike co-production there is an identifiedtechnical producer and only onem u s e u m i s f i n a n c i a l l yresponsible. This model is alsoeconomically advantageousbecause it pools costs and

allows the technical producer tosell the scientific creation. TheVictoria and Albert Museum ofart and design has been apioneer of this model. Thismuseum has a range ofexhibitions available forhire thathave successfully travelledacross Europe and all over theworld to North America, theMiddle East, Asia and Oceania.

The last of the international

touring models is the export

exhibition. This model involvesone museum producer withseveral c l ients . Theseexhibitions are often calledpocket filling exhibitions byprofessionals, as there are littleor no production costs, onlyrevenues. Some of these turn-key sales now generaterevenues of several millionEuros. This kind of exhibitiona l lows in terna l iz ing themaximum of items curator,

t r a n s p o r t , c o n s e r v a t i o n ,s c e n o g r a p h y , d e r i v a t i v eproducts ensuring a maximumof economies of scale. TheMuse National Picasso, Pariswas very successful with thetouring exhibition of Picassom a s t e r p i e c e s t h a t h a drenowned international success.

By combining financial andintellectual resources museumsdont need to face the crisisstanding alone. Overal l ,

internationalization strategieshave a positive influence on amuseums business models as itincreases their own resourcesand makes them morefinancially sustainable. The goalis not to make an apology forpublic cuts in culture, but tohave a long-term perspective.Public authorities can help andaccompany museums to be lessdependable on public andprivate subsidies.

REBECCA AMSELLEMResearcher Rebecca Amsellems field of

expertise include internationaleconomics, economic impact of culture,

cultural indicators and economics ofmuseums. Presently she is a PhD

cultural economics student at SorbonneUniversity and is developing a PhD

thesis about the int ernationalization ofmuseums and its impact on their

economic models.

1 Maurot, Elodie, En Espagne, la crise frappe durement la culture, La Croix, 2 June 20132 American Association of Museums3 Rebecca Amsellem (2013): International Touring Exhibitions: Toward a Profitable Business Model for Exhibitions?, The Journal ofArts Management, Law, and Society, 43:1, 36-5

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New businessmodels for the music

sector

The Brussels Philharmonic hasa history of looking towardsinnovative models andpractices; long before manyother cultural organizations wereforced to reflect on theirpractices in reaction to therecent financial crisis. BrusselsPhilharmonic was established in1935 under the aegis of thepublic broadcasting network.When the orchestra was cutloose in 1998 to be anindependent culturalorganisation, this independence

meant the Philharmonic was leftto survive with a smallinexperienced staff and noofficial rehearsal space. Seeinga lack in Brussels culturalscene, the organisation seizedthis opportunity to position itselfas the Brussels Philharmonicand has since successfullycarved out a distinct imagethanks to innovative practicesand risk taking marketingstrategies. Success and stability

rose to where the orchestratoday rehearses in two ofBrussels most prestigious andsought after performance halls:Flageys Studio 4, which ranksamong the best in the world interms of acoustics, and inBOZAR, the Centre for FineArts.

Today while others arestruggling under the pressuresof the crisis, panic and stressare not present in the Brussels

Philharmonic office. Of course,the organisation is aware of thecircumstances and impact of thefinancial crisis, but this is not thefirst time the orchestra has hadto surmount a difficult period.Thanks to some luck from a littleindependent film called TheArtist, the BrusselsPhilharmonic rose to world-widefame when the film won the2012 Oscar for Best MusicalScore which the orchestra hadrecorded in Flagey's Studio 4 inBrussels. This recognition hasbrought great international

visibility to the orchestra, but ithas by no means halted the

organisations thirst forinnovative ideas to advance withtechnology and societysbehaviors.

Brussels Philharmonic is alwayslooking to set itself apart on theinternational scene. Goodmusic, wonderful concerts, andexcellent recordings are all vital,but it is not enough. It is lookingto preserve the traditions ofclassical music, with a twist of

creativity, innovation andsustainability. The orchestracaused quite a stir in November2012 when they performedwithout the traditional paperscores. Instead, the musicalscores sheets were on individualSamsung GALAXY Note 10.1tablets equipped with theNeoScores software. Whilethere are still someimprovements to be madebefore Brussels Philharmonic

could potentially make theswitch from paper to digital, thisinitiative demonstrates theorchestras appetite for new andinnovative ideas.

With the aim to spread classicalmusic actively among as broada public as possible, in 2012Brussels Philharmonic, incollaboration with Leo BurnettBrussels, developed classicalmusic ringtones to promote theclassical orchestras own recordlabel. 12 initial ringtones werecreated based upon recordingsfrom the major symphonic

repertoire. In the first three daysof the ringtone launch, BrusselsPhilharmonic had over 10,000downloads making for quite asuccessful initiative.

More recently, the orchestraembarked on an innovative

project to provide musicians withthe best sounding instruments.The sound quality of stringinstruments greatly enhancesthe quality of the entireorchestra; however a top qualityviolin for example can costabout 70,000 Euros, an amountthat would be difficult for mostprofessional musicians to afford.In 2013 Brussels Philharmonicset up an investment fund inorder to help its musicians playon the highest qualityinstruments possible. This isalso beneficial for theinstruments original owner orinvestor since an instrument thatis played increases in value.The aim is to bring in investorswho love music and who canwait until their investment paysoff. After five years, investorscan choose to sell theinstruments on the market (likelyat a higher price, since in themeanwhile instruments increasetheir monetary value) or toreinvest in the instrument forother five years. And theres norisk to the investors either sincethe instruments are insured.

These are just some examplesof how an organisation in themusic sector can safeguardtradition all while beinginnovative and ensuring itssustainability through this

crisis or the next.

VRONIQUE BOSSAERTVronique Bossaert is the

communications administrator for theVlaams Radio Orkest (later on Brussels

Philharmonic) and the Vlaams RadioKoor, and is still with the ensembles

today where she has created two strongbrands and focused on a constantincrease of quality, creativity and

connection with the public.

SamsungTomorrow CC BY-NC-SA 2.0


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New business andgovernance modelsfor the culturalsector: Case studiesfrom the USA

The United States art sectorhas a long tradition of interest infunding the arts and culture.Unlike their Europeancounterparts, an American artorganization cannot rely on thelittle public funding that exists. Inthis context, arts organizationsacross the states are often onthe lookout for new models forgovernance and fundraisingopportunities.

There are some good examplesof federal public fundingopportunities many that linkthe arts to communitydevelopment and culturaleconomic development suchas the Federal CreativePlacemaking grants from theNational Endowment for theArts. Communities across theUnited States are leveraging thearts and engaging design to

make their communities morelivable with enhanced quality oflife, increased creative activity, adistinct sense of place, andvibrant local economies thattogether capitalize on theirexisting assets. These grantsawards $25,000 to $200,000 toarts organizations for theirprojects that contribute to thelivability of communities andplace the arts at their core.

At the local or state level thereare also cultural economicgrants. One such example is theAdams Art Programme thatsupports projects that revitalizecommunities, create jobs, growcreative industries, and increaseengagement in cultural activitiesby Massachusetts residents andvisitors.Since its launch in 2005,the Adams Arts Program hasinvested $9.4 million in morethan 100 projects statewide,

from Pittsfield to Provincetown,involving more than 950nonprofit organizations,businesses, and localgovernments.

Another popular policy in the USis One percent for art. Thispolicy will vary from state tostate or by city, but in generalsome percentage of a publicworks project cost (at least onepercent), is reserved to fund and

install public art. However, is itnot uncommon for this onepercent be reduced orredirected entirely to anotherbudget line if the project isfacing delays or unforeseencosts that threaten the projectsoverall budget and execution.

There has been some successin arts advocacy thanks toonline technologies that bringtogether the power of

individuals. It is common to seeonline campaigns that call forindividuals to directly email theirelected officials in order toswiftly influence policy andbudget allocations for arts andculture. These can be eitherindividual campaigns or led bylocal advocacy organizationssuch as MASS Creative inMassachusetts. Thisorganization works with creativeleaders, artists, arts educators

and arts and cultural supportersto empower creativeorganizations and the publicwith a powerful voice toadvocate for the resources andattention necessary to buildvibrant, connected, and creativecommunities.

The American cultural sectoralso has tradition of individualdonations, big and small.However with the economic

crisis citizens arent able toreach as deeply into theirpockets as before to support theartistic programs and activitiesthey enjoy. As such artsorganizations are looking to newmodels to earn needed revenuethrough such initiatives as newticket pricing, membership andVIP programs, new partnershipsto share expenses (production,operating costs, etc.) andrenting of space.

Overall there has not beenmuch change in the federalmoney being poured into thearts sector. State budgets

however go up and down withthe economy and while theremay be important local interest,there is perhaps no moneyavailable. Some of the biggerdonations from either largefoundations or corporations arealso dwindling. Their interestsare shifting to larger, moreglobal social problems andcorporate social responsibility.

What is clear is that artsorganizations need to lookexternally. So much of what theydo can and impacts their localcommunities and many grantopportunities are awardingcultural organizations thatreinforce this connection. Thismeans building sustainable localpartnerships of leaders in thenonprofit, public and privatesectors, engaging withvolunteers (but not replacingstaff) and finally looking for waysto connect their art to thecommunity can lead to newopportunities and sustainableoutcomes.

RICHARD G. MALONEYRichard G. Maloney is Assistant

Professor and Assistant Director of theArt s Adminis trat ion graduate program at

Boston Universit y where he teachesclasses in performing arts management,fundraising, and cultural policy. As an

arts administrator, he previously servedas general manager of an international

classical music ensemble.


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Redesigning thebusiness model ofculturalorganizations in atime of economic

crisis

What is crisis? Is this somethingto fear or an opportunity? In factin the Chinese symbol for crisisit is both. Crisis is made with twocharacters put side by side:danger and opportunity. Thisperiod may be a disruptive one,shaking up how the culturalsector is managed, and whilefailure is always a risk there aremany new opportunities to be

had as well.Over the last years theeconomic crisis has deeplyaffected cultural organizations. Itis well known that there havebeen big cuts in governmentalbudgets for culture all aroundEurope having a direct impacton cultural organizations.However, while on one hand thecrisis can be seen as a dangerfor the survival of thoseorganizations, on the other handit is also a possible starting pointto redesign the business modelof cultural organizations and togenerate new opportunities.

In the cultural field value cantbe identified just by monetaryvalue. The main dimensions ofvalue comprehend alsoaesthetics and social values.The final value delivered by anorganization can be understoodby better analyzing its business

model which is the rationale ofhow an organization creates,delivers, and capturesvalue (A.Osterwalder & Y.Pigneur, 2010).

The creative and culturalindustries and the publishingindustry in particular, haveperhaps seen a greater andmore rapid change than othercultural sectors. Looking topublishing, the traditional

players were the publisher, theprinter, the distribution companyand the bookseller. With thearrival of e-books new players

have come onto the scene:digital warehouses, onlinestores, telecom companies andproducers of electronic devices.There are some interesting new

business models that are beingdeveloped more recently. Forexample, the introduction ofeBooks has ushered in newactivities (digitalization,electronic distribution, etc.) andconsequently players in thepublishing value chain. A smartexample of a company using aninnovative business model isLulu.com, a multi-sided platformthat serves and connectsauthors and readers with a longtail of user-generated nichecontent. Over 1.1 million authorsfrom 200 countries useLulu.com to publish and selltheir books. This businessmodel works because books areprinted only to fill actual orders.Therefore the failure of aparticular title to sell is irrelevantto Lulu.com and it incurs nofinancial loss.

An innovative business model

that is becoming more and morepopular for the funding ofcultural projects is crowdfunding. The rationale behindthis model is to put togethersmall financial contributionsfrom lots of people to achievethe financial capital required tosuccessfully implement aproject. Successful examples ofcrowd funding projects includeKickstarter and KissKissBankBank. Since the launch in

2009, Kickstarter has had morethan 4.5 million people pledgeover $723 million that has gone

to funding more than 45,000creative projects. Kickstarterclaims in fact that its businessmodel is based on tradition ithas just been amped up for the

21st century: Mozart,Beethoven, Whitman, Twain,and other artists funded works insimilar ways not just with helpfrom large patrons, but bysoliciting money from smallerpatrons, often calledsubscribers. In return for theirsupport, these subscribers mighthave received an early copy orspecial edition of the work.Kickstarter is an extension ofthis model, turbocharged by theweb.

To conclude, it is clear that thereis not one single innovativemodel for the cultural sector.There are many of opportunitiesand options and we just have tohave the will and curiosity andfearlessness to discover them.

JEAN-DOMINIQUE SEROENJean-Dominique Seroen is a p rofessor atHaute Ecole ICHECISC Saint Louis and

specialises in economy in the field ofMedia and Culture, e-Business economy,

and e-Learning management.

MeganTraceCCBY-NC

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New businessmodels for theHeritage sector:

A case study of theIMC

How can the heritage sectorachieve greater financialsustainability especially in timesof crisis? Heritage preservationand conservation are extremelycostly and demand millions ofEuros. Taking a closer look atthe case of the Institute ofMuseums and Conservation(IMC) may provide some goodpractices and insight into howPortugals largest public body

for the management ofmuseums and built heritagetakes on this challenge.

The IMC is responsible for thefinancial oversight of 28museums and 4 nationalpalaces. Even before the currentcrisis, financial health of theorganisation was worrisome tosay the least. In Portugal since2003 there has been aconsecutive reduction in thenational budget for the Ministry

of Culture. Then following theseyears of budget cuts, in 2010the IMC had an outstandingdebt of around 1,837,008 Eurosdue primarily to the serviceproviders for security andcleaning. The governmentfunding that was available andany earned incomes were usedexclusively to pay running costsand staff salaries.

After six months of research into

the IMCs finances and

management and lookingclosely at the workings of theorganization, this researchsought out measures that couldbe taken to improve theInstitutes financial stability.Consequently, the following

topics were addressed: ticketingmodels; how to improve the flowof money within theorganization; on-line brandingand content; the tourismindustry as a source of revenue;museum shop management;stakeholder participation andtransparency. Despite beingorganization specific, the resultsaddress broader deliberationsregarding the sustainability ofmuseums and built heritage,

touching on possiblebenchmarks when consideringEuropean-wide debates on thesubject.

The main potential source ofrevenue for the IMC was seen tobe ticketing that represented58% of the total income earnedin 2010. To this end, theresearch looked at the diverseset of ticketing managementmodels and the possiblebenefits these could bring. Thestudy also looked at broader keydebates regarding ticketing andculture such as price-elasticityand the number of freeadmission days.

As a public organism, the IMCsuffers from certain restrictionsregarding the flow of moneywithin the organization thataffects the running of Portugal'spublic museums and heritage. Itwas important to look at models

developed in Portugal and

elsewhere to overcome theseobstacles, providing suchexamples as: public-privatepartnerships, friends of themuseum and fiduciaryagreements amongst others.

Regarding on-line content and

branding, the IMC homogenizedits image to be easilyrecognisable. Actions andupdates were taken to make thewebsite user-friends and toembrace new media and thepossibilities it opened forengaging with audiences indifferent ways.

As a major source of revenuelinked primarily to heritage, thetourism industry was looked at

and broken down. The researchidentified a variety of key factorsto consider when regarding thestructure of the industry andhow greater bonds can bedeveloped between the culturalheritage sector and tourism.

Museum shops also play anessential role in the branding ofthe site, and it is essential to payattention to issues such as thedidactic qualities of museumshops, how they are sight,mission and location specificand the need to understand themuseum shop clientdemographic.

Finally, this case study has a listof measures to be consideredwhen working to ensure thefinancial stability of museumsand built heritage. It can provideheritage operators with insightfulexamples to apply to their ownmuseum or heritage site.

LUIS RAMOS PINTOLuis Ramos Pinto holds a MA in Art

History from the University ofManchester and a MA in Art Business

from the Sothebys Institute of New York.It was at the Sothebys Institute that Lu is

conducted his r esearch on is sues ofmuseum management and financial

sustainability.

ntra UNESCO World Heritage Site in Portugalm Gallagher CC BY-NC-ND 2.0


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The University of Antwerp (UA) was founded in 2003 after the merger ofthe three universities that were previously known as RUCA, UFSIA andUIA. The university has approximately 15,000 students, which makes itthe third largest university in Flanders. Foreign students from all over theworld make up 12% of the total student population. At any one time, there

are around 100 foreign researchers working as part of UA research teams. The University of Antwerpparticipates in all European educational programmes. Student and staff mobility, both inside and outsideEurope, is very important, which is why strategic partnerships have been established with universitiesaround the world. The UA is proud to be one of the institutions of higher education in Europe which weregiven in the past the European Credit Transfer System-label by the European Commission. www.ua.ac.be

The Cultural Contact Point (CCP) Vlaanderen is issued onbehalf of the European Commission's Directorate-General forEducation and Culture. With the newsletter, the website and the

information sessions, the CCP Vlaanderen informs the Flemish cultural sector about the objectives andrules of the European Culture Programme (2007-2013). The Cultural Contact Point gives Flemish culturalorganizations advice when submitting their application to the European Commission. The CCP also refersto other Flemish and European funding opportunities for Flemish cultural organizations through grantopportunities. Culture is a Community competence in Belgium, so there was both a Flemish CulturalContact Point as a CCP for the Walloon and German-speaking Community was founded.www.cjsm.vlaanderen.be/ccp/index.shtml

Cultural Contact Point (CCP) Wallonie-Bruxelles supports and informs culturalactors on the Culture Programme and the European issues in this field. Counselingand information center on Europe and its cultural funding, it offers advice andtechnical assistance tailored to cultural operators. The CCP supports culturaloperators in their efforts and European projects through: promotion of open culture(mainly Culture 2007-2013) programmes, technical assistance for the preparation ofapplications, and dissemination of information on cultural events and communityprograms. Since 1999, the mission of Cultural Contact Point has been entrusted by

the Federation Wallonia-Brussels and the European Commission to the Agency Wallonia-BrusselsTheatre / Dance, co-managed agency of the Ministry of the Federation Wallonia-Brussels and Wallonia-Brussels International (WBI), and supported by the Walloon Export Agency (AWEX) and Brussels Export.www.pcc-europe.be

BOZAR is a cultural hub that imports the greatest artists to the heart of the capital ofEurope and exports its own productions to places as far away as China! Its

commitment, accordingly, is not only to the provision of a range of artistic activities, butalso to achieving a total experience. Whether with friends, as a family, alone, as acouple, in a group, or with a class, whether young or old, fans of video or of stringquartets, you are all invited to feel, to breathe, to view and to check out the atmosphereof the Centre for Fine Arts. To let yourselves be seduced by the strange beauty of a

building that is at once imposing and intimate. To appreciate, day after day, the remarkable quality of theevents programmed here. To discover that, when it comes to art, total experiences are the most intenseand the most precious, that they cannot be repeated, that they represent, each time, a unique experienceCinema, theatre, dance, literature, architecture and arts education are all part of this exciting activity, furtherenriched by some 250 partners a year, such as the brand new CINEMATEK and its collection of foreignfilms. www.bozar.be


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ENCATC is the leading European network on Arts & CulturalManagement and Cultural Policy Education. It is an independentmembership organization gathering over 100 higher educationinstitutions and cultural organization in over 40 countries. ENCATC

was founded in 1992 to represent, advocate and promote culturalmanagement and cultural policy in higher education and to createplatforms of discussion and exchange at the European andinternational level.

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