Wednesday, July 30, 2008

Saving money....

As far as economy is concerned, or when doing business, it is your aim to generate money. Not only to cover your expenses of course, but, ideally, to make some profit too. Whether you will buy yourself a bottle of Champagne from this profit, or invest in your business is then up to you. In other words, people will regard you being a good treasurer, if at the end of the day, more money is remaining. In some cases, thrifty bookkeepers start making it their goal in life, to cut on costs as much as possible.

In earlier discussions - and when discussing art management professionally with clients - I highlight the notion, that cost allocation within cultural projects with very limited resources (or rather; no money available) is perhaps indeed a very day-to-day challenge, but most of all which should never allow us to become defeatist. Many musicians, however, are.

A couple of days ago, while driving home, a spokesman of an ambulance service was complaining about so many drownings happening over the summer-holidays. As the main reason, he mentioned the fact, that due to financial constraints, elementary schools had to cancel compulsory swimming lessons (as a part of physical exercise class). Politicians, who pursue very short-term vision, and keep on wrongly allocating the necessary funds, end up with a long-term problem for the community. Unfortunately, this example is of a very tragic kind.

In a country, that has one of the highest economic growths in the EU, such a financial short-cutting on the very basic thing like schools, is inexcusable! The truth is, that a lot of money is wasted on useless activities, or in the worst case; disappearing in someone's pocket.

The same happens to culture as well; Yes, you get little money, yes it has been like this for years. No, you should not accept this as being just a "reality". While in some countries, writers with a certain sense of social responsibility, appeal to politicians, why should not musicians be equally active to hold a mirror in front of society (and their leaders)? This is not just about saving money anymore - this is about drowning culture; drowning your job. Rescue it, while you still can!

MS

Saturday, July 12, 2008

Second EFA-Publication “Give, get or Get Off!”; Challenges of cultural networkign today


Throughout history, culture changed its importance within society depending on howmuch value the ruling class – or a sole ruler – would attach to it. Emperors and kings boasted with architectural palaces and court music without a limit. Moving the music scene out of the palaces of royalties or the aristocracy, a situation by the end of the 19th century, has given music bit by bit a different place in society, unfortunately… losing its prominence.


After the fall of communism, the world has changed – not just politically speaking, but especially in the economic sense. Partly, because of the political barriers were removed, but foremost also by the growing presence of computer technology and internet entering our homes. Right after the fall of the Iron Curtain, Central and Eastern Europe were - for music - a “goldmine” for record labels to reap profits thanks to quick and cheap money recordings and indeed the sky seemed the limit. Not for long.


Ever since the decline of the recording industry – even some tend to deny such, but let’s face it, music industry seems to be in a deep ditch, from which apparentlt there’s almost no way out. And interestingly enough, despite an economical level never attained before in world’s history (technological advance, wealth), music is generally speaking in a deplorable state.


Two publications from the European Festivals Association are addressing the issues, which have arisen from this situation. While the first one (“Still a lot to be done”) deals with a broader discussion on how to address the more general cultural music discussion – filosofically, politically – the second publication (“Give, Get or Get Off!”) is discussing the cultural networking of today. In other words, when music is in despair, seemingly being regarded as elitist – and therefore become more and more detached from a (potential) audience, almost having the feeling as if classical music is no longer bon-ton – how music institutions should be working on their network expansion and thus be able together to “sell” again their product: Music.


The articles, written by various members of the association, are accessible and clear to read. As both a musician and an arts manager in Slovakia, the 2nd book is interestingly enough tackling matters, that should appeal to my direct colleagues in Slovakia, but not exclusively. We must face the reality that the old structures no longer work (that is, where culture is directed from above, endowed by a wealthy aristocrat). We must realise that among ourselves that we should work on solid and efficient networks (co-operation) and therefore creating culture from the bottom. The book systematically analyses some feasible network constellations and possible variants, but underlining some basic requirements, which should be met, in order to be a successful network. Obvisously, the main problem lies in the fact, that while music should be more actively promoted, musicians are not trained to be business-like salespeople or be economically or managerially skilled. In the event, where they have the luxury of being able to afford (expensive) professional PR and marketing people, these are not always muscially oriented, therefore a gap between player and manager.


Also, among professional musicians themselves there are many misconceptions against branding, PR, modern-life’s dynamics and technology, which as a fact, is to be blamed on the old-fashioned (music) education system. Concurrently, also the public is regarding classical music completely biased. The necessity for a strong network is unmistakenly clear; to re-educate both the musicians as well as the audiences. From the effectivity of a network, a viable economic basis to function, fostering co-operations (nationwide and abroad), up to the application of real and virtual network projects; it gives a good direction of what we most of the time are lacking. Especially in Slovakia.


We may remain wailing in the repeating argumentation of being a small country, with no money, with no interest of the public, but we can also try to do something with it. There are smaller nations, who are far more successful, and after all it’s our job which is in danger if nothing is being done. Instead, let’s actively start doing something to get things moving into a better direction. Slovakia’s music culture and is worth working on it (and equally valid for any other culture, of course), because if we let it snow under our craving for 4x4 jeeps and hypermarkets and fashion-shopping, it might be lost forever. The EFA publications could give a good starting point, to construe together a networking with eachother – and not against each other, as is often the case – to make us visible again as another cultural centre close to Vienna, Budapest and Prague, contributing to the cultural richness of our region… and beyond.


more info on the EFA website here


MS

Wednesday, July 2, 2008

Outsourcing an orchestra (a light note on modern managment)

Globalisation and modern communication technology has brought our planet more closer together than it was let's say 50 years ago. Modern management (a product from America) is being practised all over the world, whether from Anchorage to Zilina, or Reykjavik to Cape Town. In whichever country you come, all managers seem to think and (re)act the same uniform way. Much to the astonishment to any logical thinking mortal being. Most managers look like clones. Let's look at a fictitious scenario (but yet, perhaps not too detached from present-day reality). Setting: A symphony orchestra in despair - a realistic situation, yes - but here comes the modern, eager, pro-active, assertive, ambitious and shrewd manager. Watch him:

Scene 1 (at an office, some panic is in the air...)
Board-member A: Our financial status is causing some concern (= we're bankrupt)
Board-member B: I'll resign from the Board and you'll hire me as an external consultant and I'll give you a solution.
A: will it help financially?
B: yes, guaranteed

Scene 2 (a week later, same office)
B (now an external consultant): I made an case-study, and the solution is to outsource your orchestra. Just look at the flow-charts. Here's our projected budget. This is the time-frame. All worked out for you.
A: Outsource???? Whaddayamean?!?!?!?!
B: Let me explain... The financial problem is, that your local musicians simply cost you too much money. Not to mention your music directors. Well, the answer is; get cheaper ones.
A: Impossible. We have labour unions, minimal wages, fixed overhead...
B: No, possible: We have labour unions, minimal wages HERE... simply get them some place else.
A: Huh?... where???
B. Doesn't matter. Anywhere. As long as it is not here.
A: But we have to perform concerts HERE, don't we?
B: Dear friend, never noticed how we hold overseas on-line video-conferences? Who cares where people sit nowadays?! All you need is a big screen, satellite connection, and the audience won't notice the difference. They're used to flat screens already!
A: Insane!
B: But cheap, that's what you wanted!
A: We cannot do that!!!
B: I promise you a financial solution which will work!
A: Hmmmm... I don't know...
B: Trust me. All worked out.

Scene 3 (B is having a talk with the Project Manager 1 (Change Management) and Project Manager 2 (Implementation Team) in an office some place abroad)
B: did we find suitable musicians?
Project Manager 1: We lack a few instruments.
B: Never mind, it's good enough. At least we safe more costs.
PM1: But it does not meet the customer's requirements!
B: Who cares - we offer cheap prices so they should be content with that! We'll do with this.
PM2: Could I perhaps note that not all musicians are in fact ... er... musicians... I am afraid they hardly know how to play.
B: So what?! They have an instrument, that will do.
PM1: But the customer will hear the difference.
B: We promised that we would provide an orchestra, not quality sound. If they want quality sound, then they would need to cough up more dough.
PM1: Aren't we getting in trouble? How about the service level agreement to the customer? We cannot meet the quality requirements
B: Don't patronise me with service levels! You know what? You're having a negative attitude which badly affects our team. You're out!



Scene 4 (B meets A to prepare the implementation)
B: We are ready to go live!
A: Is the orchestra ready?
B: Yes, as promised
A: Where is it situated?
B: Not important: we found a suitable and really cheap location. People are eager to work, qualified, ... it's a success-story of the century!
A: Can we see it?
B: Sure!
....
(B is switching and adjusting the screen on the wall)
A: I don't see a thing....
B: That's 'cause perhaps our systems are incompatible
A: ??? Explain please...
B: Well, we deal with different standards of video output and versions of software...
A: But what can I do, to see it them then????
B: I would need extra budget for ITC upgrading...
....

Scene 5 (4 weeks later; B meets A to prepare for implementation - 2nd attempt)
B: Aren't you pleased with the view? (Looking at the screen)
A: Er... I expected to see a symphony orchestra
B: That's a mere technicality - a matter of definition
A: But I thought we will perform the same type of concerts to the public!!!! I fired the whole orchestra and now I have this?!?!?
B: Look - they have instruments, right?
A: ... right, but...
B: So it's an orchestra, which you wanted!
A: But not a symphony orchestra!
B: That's retro! This is the 21st century answer!
A: But you promised an alternative, the same stuff.. and a financial improvement!!!
B: This is an alternative all right. Never talked about the same stuff... just a bit different... And the invoices, which you paid, have improved my finances.
A: I think I am getting a bit unwell... Can they at least play???
B: I guess so.
A: what do you mean by "I guess so"??? Didn't you check???
B: Now hear: We never talked about quality - you wanted cheap replacement, because you were in the red. I got it for ya. That was the deal. They got some mass-produced instrument, so they can make a sound, which is basically equal to music. And what would you expect from these people, for such a low wage, you will not get skilled people.
A: I think I am getting extremely unwell!!!!
B: What for?! You got what you wanted! I gave you a solution. It's cheaper than your old situation.
A: But it's not what we had!!!!
B: That's in the past. You have to live with what you have now. This will be the wonderful future of orchestra problems! A wonderful concept, isn't it? By the way - here's my last invoice....


This was just a kind of humorous narration with a certain undertone. Nevertheless, it is a reflection of what I have witnessed a few times and therefore the undertone is not quite funny. The bottom-line: Management is nowadays a bit overrated. Decisions are sometimes nonsensical, objectives out of scope, requirements of the client completely ignored, only to be focussed on short term profits and prestige. And yet the manager is highly and highly overpaid and acting like an untouchable. Outsourcing is, as I described here - fortunately - not an issue in the music world; but somehow, it wouldn't surprise me, if a wiseguy will suggest such a solution... and some orchestra managers in despair enthusiastically follow such suggestion, only to get rid of the burden then to realise too late, what harm has been done....

Managers, and especially orchestra bosses... in fact: all of us! Let's realise what you are managing and what your management school training and guidelines have made you into. Don't end up like this fictitious scenario. Although it is a mirror of two real life projects, this was rather meant as an entertaining summer-holiday reading (although I wonder, who will recognise his/her situation anyway and feel a bit uneasy...).

regards
MS