Transcript Paul Nicholson – Strategic Planning

Oregon Nonprofit
Leadership Conference 2012
Workshop on Strategic Planning
April 24, 2012
Presenter: Paul Nicholson
Workshop on Strategic Planning
April 24, 2012
Outline
First Section: Introduction
• Introductions/mapping
• What is strategic planning?
• Elements of a LRP
Second Section: The Process of Planning
• Who should be involved?
• Challenges
• The process in detail
Third Section: The Plan Components
• Mission
• Vision
• Values
• Situational analysis
• Goals/Strategic areas
• Action programs
• Assumptions/Financial projections
• Supporting information
• Discussion; Questions and Answers
Fourth Section: Operationalizing and Executing the Plan
Discussion / Q & A
Elements of a Strategic Plan
• Mission
• Vision
• Values
• Situational Analysis
• Goals
• Action programs
• Assumptions/Financial Projections
• Supporting information
The Process of Planning
Who should be involved?
• Internal
• External
How Much Time is Involved?
The Plan - Components
• Mission
• Vision
• Values
• Situational Analysis
• Goals
• Action programs
• Assumptions/Financial Projections
• Supporting information
Mission
Mission Statements
1983-1987
The Oregon Shakespeare Festival is a professional theatre company dedicated to production of the plays of William Shakespeare
and other works of high literary quality. The style of production is dictated, first and foremost, by the demands of the text and the
vision of the author, secondarily by the talent and sensibilities of the company, and finally, by contemporary taste and experience of
the audience.
1988-1992
The Oregon Shakespeare Festival is an association of professional theatre artists, artisans, specialists, and other interested people
dedicated to production of high quality of William Shakespeare’s plays and other works of literary and theatrical value. We seek to be
a significant cultural force with a heterogeneous audience drawn form a wide geographical area. Our style is dictated, most
importantly, by demands of the text and the vision of the author as interpreted by the director. It is further conditioned by the nature
of our playing spaces, the sensibilities and talents of our company, and the taste and experience of our audience.
1994-1998
The mission of the Oregon Shakespeare Festival is to bring to live the essential event of the theatre: the creation of a passionate
communion between artist and audience. The Festival exists to expand and enhance that communion, to illuminate and broaden the
boundaries of shared human experience, and to explore and embrace that which is unique to the theater. Using the plays of William
Shakespeare as our standard and inspiration, we are committed to producing theatre of the highest artistic quality while maintaining
and developing a skilled and flexible professional company; we are committee to performing in repertory a broad range of plays
chose to celebrate and investigate the breadth of vision and the depth of insight that we find in Shakespeare; we are committed to
seeking and nurturing a divers, active audience, drawn from a wide geographical area, a an essential creative partner.
1999-2003
The mission of the Oregon Shakespeare Festival is to create fresh and bold interpretations of classic and contemporary plays in
repertory, shaped by the diversity of our American culture, using Shakespeare as our standard and inspiration.
2003-2007
The mission of the Oregon Shakespeare Festival is to create fresh and bold interpretations of classic and contemporary plays in
repertory, shaped by the diversity of our American culture, using Shakespeare as our standard and inspiration.
2009-2013
Inspired by Shakespeare’s work and the cultural richness of the United States, we reveal our collective humanity through illuminating
interpretations of new and classic plays, deepened by the kaleidoscope of rotating repertory.
Vision
Vision Statements
1988-1992
The shared vision of the theatre, what it is and what it can become, must be constantly clarified and
sharpened for all the Festival’s constituent elements. We must be willing to move within reasonably
restricted and achievable budget, and we must move with a vivid recognition of priorities. The proud
history of achievement extending over half a century will not be advanced over the next five years
through mere growth of audience or personnel but through discipline, dedication, and devotion.
1999-2003
The Oregon Shakespeare Festival’s vision is to create theatre of extraordinary quality in which we
proceed with daring to fulfill our artistic dreams.
2003-2007
We envision the Oregon Shakespeare Festival as a creative environment where artists and audiences
from around the world know they can explore opportunities for transformational experiences through the
power of theater.
2009-2013
OSF will balance its roles as a major arts organization, national leader and pre-eminent resource for the
theater field, with being nimbly responsive to challenges and opportunities, both artistic and economic.
Anchored by an inspired company creating exceptional art, we will be guided by thoughtful resource
stewardship and a deep commitment to education and audience engagement.
Values
Values Statement
These are the values we hold at the Oregon Shakespeare Festival. They are at the center of
everything we do, and describe how we work together. While we recognize the need for
balance among them, these values guide us in all our decisions:
Excellence: We believe in constantly seeking to present work of the highest quality, expecting
excellence from all company members.
Inclusion: We believe the inclusion of a diversity of people, ideas and cultures enriches both our
insights into the work we present on stage and our relationships with each other.
Learning: We believe in offering company members, audiences, teachers and students the richest
possible learning experiences.
Financial Health: We believe in continuing our long history of financial stability, making wise and
efficient use of all the resources entrusted to us.
Heritage: We believe that the Festival’s history of almost seventy-five years gives us a heritage of
thoughtful change and evolution to guide us as we face the future.
Environmental Responsibility: We believe in making responsible choices that support a sustainable
future for our planet.
Company: We believe in sustaining a safe and supportive workplace where we rely on our fellow
company members to work together with trust, respect and compassion. We believe that the
collaborative process is intrinsic to theatre and is the bedrock of our working relationships; we are
committed to the Festival’s Communication Credo. We encourage and support a balance between our
lives inside and outside the Festival.
Situational Analysis
•
Environmental Scan
Internal
External
•
SWOT
Strengths
Weaknesses
Opportunities
Threats
•
Break Analysis into appropriate areas
Artistic/Programs
Audience/Clients
Facilities
Finances
Organization
GOALS
• Aspirational
• SMART
Specific
Measurable
Achievable
Relevant
Timely
Oregon Shakespeare Festival
2009-2013 Long Range Plan
Key Strategic Areas
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Artistic quality
Program development
Use of technology
Audience/client growth
Outreach/Touring
Education activities
Facilities development
Financial stability
Contributed Income development
Endowment Fund growth
Company development
Diversifying the organization
Board development
Connection with the community
KEY STRATEGIC AREAS
1. Artistic Quality
• What is our aesthetic?
• What is our present artistic level? How do we rank?
• What is the level we can realistically aim at?
• How do we know when we’ve reached the next level?
• How do we continue to get better?
• What risks can we take?
2. Program Development
• What programs are effective? Ineffective? How do we define effectiveness?
• What should we not do?
• What programs does our community need that we should fulfill?
• What programs should be expanded?
• If we had half a million dollars, how would we spend it?
3. Use of Technology
• To what degree do we want our productions filmed for TV, Video etc?
• What is the role of CD ROM technology? Opportunities?
• How will technology affect our productions in the future? Administration?
4. Audience Growth
• What long term pricing philosophies should we adopt?
• To what extent do we anticipate diversifying our audience?
• What changes do we see taking place in our audience over the
next five years?
5. Touring
• What are the benefits/costs of touring?
• Where should we tour?
• How would we make touring an integral part of our operation?
6. Education
• What is the role our education programs play in preparing our
audiences?
• What about the role they have in developing audiences for the future?
7. Facilities
• Are our present facilities adequate?
• What do we need to do our best work?
• How much money will it take? Can we raise that amount?
8. Financial Stability
• What resources will be necessary in the future to support the artistic vision?
• What level of working capital reserves should be maintained in the future?
• Is our budgeting process accomplishing what we want?
9. Contributed Income
• What is our current balance of Earned and contributed income? Should this
change in the future?
• What challenges do we face in developing contributed income?
10. Endowment Fund
• What level of support should we aim for from an Endowment Fund?
• Can we raise the money necessary to produce that support?
11. Company Development
• How do we provide the most creative environment for people in the company to
do their work?
• How do we balance experience and loyalty with innovation and new energy?
• How do we constantly achieve a freshness if we regularly focus on the classics?
• How diverse can we be? What steps should we be taking to create a more
diverse work space?
12. Diversifying the organization
• How do we define Diversity?
• How diverse is our organization? How diverse is the work we present?
• How committed are we to diversity in our staff, Board, audience and volunteers?
• Who are the leaders in diversity? What can we learn from them?
13. Board Development
• How will our Board change in the future to reflect our organization’s vision?
• How do we maintain cohesiveness and involvement?
• How active should our Board be in fund-raising?
• What information does our Board need to be effective?
14. Community Development
• What are our existing community partnerships?
• How do we sustain those partnerships?
• Are there new community groups with which we should be partnering?
Long Range Plan
Assumptions
Artistic
Number of Productions
Number of Performing Weeks
Number of Actor Weeks
Equity % of Actor Weeks
Number of Actors (Average)
Average Salary $
Audience
Number of Performances
Theatre Capacity
Total Season Capacity
Growth in Capacity
Attendance as % of Capacity
Total Attendance
Ticket Prices $
Average Ticket Price $
Change in Average Ticket Price %
Facilities ($000)
Expand Production Building
Theatre Equipment Initiative
Security System Upgrades
Other Capital Expenditure
Finances
Expenses Growth Rate %
Salary & Benefits Increases over Previous Year %
Investments (Av.) $000
Return on Investments %
Contributed Income Growth (over previous year) %
Numbers of Members
Payout from Endowment Fund $000
Organization
Staffing Levels (Full-time Equivalents)
Board Composition
Volunteers
Financial Projections
OREGON SHAKESPEARE FESTIVAL
LONG RANGE PLAN FINANCIAL PROJECTIONS 2009-2013
EARNED INCOME
Ticket Sales
Other Sales
Educational Programs
Publications
Concessions
Interest
Endowment Payout
Other
Total Earned Income
2007
Actual
2008
Actual
2009
Budget
2010
2011
2012
2013
15,487
206
223
266
311
216
1,494
522
18,725
15,797
172
225
285
312
(296)
1,579
685
18,759
15,115
156
218
291
294
93
1,503
567
18,237
14,836
153
218
286
287
46
1,337
494
17,657
15,422
159
219
291
287
72
1,216
538
18,204
16,279
168
220
307
290
150
1,157
536
19,107
17,233
178
221
325
297
208
1,182
589
20,233
8,400
6,077
2,408
829
821
1,331
1,006
2,530
283
213
130
528
8,643
6,212
2,475
854
847
1,372
1,037
2,605
290
218
155
559
9,107
6,504
2,548
880
873
1,422
1,068
2,683
298
225
170
665
9,425
6,796
2,623
907
899
1,475
1,101
2,764
307
232
175
903
123
24,679
126
25,393
132
26,575
138
27,745
OPERATING EXPENSES
Artistic
Production
Marketing & Communication
Education
Development
Box Office
Plant Management
Administration
House Management
Concessions
Capital Equipment & Projects
Depreciation
Artistic Operating Fund Exps
Contingency
Total Operating Expenses
8,303
5,987
2,552
837
821
1,332
1,101
2,574
281
221
130
567
8,785
6,438
2,679
836
850
1,396
1,152
2,832
303
220
137
571
24,706
10
26,209
8,829
6,243
2,313
807
799
1,309
985
2,464
290
215
64
566
350
25
25,259
EARNINGS GAP
(5,981)
(7,450)
(7,022)
(7,022)
(7,189)
(7,468)
(7,512)
1,955
416
2,245
205
214
439
457
5,931
3,188
365
1,440
64
205
279
662
394
6,597
3,244
370
1,362
92
75
294
776
459
350
7,022
3,244
370
1,362
92
75
294
776
459
350
7,022
3,309
377
1,389
94
77
300
784
459
400
7,189
3,441
392
1,445
98
81
315
823
473
400
7,468
3,613
412
1,517
103
85
331
864
487
100
7,512
(853)
-
-
-
-
-
60.3%
33.5%
25.2%
71.2%
59.8%
35.0%
27.8%
70.6%
60.1%
34.0%
28.5%
70.4%
60.7%
34.0%
28.3%
70.6%
61.3%
34.3%
28.1%
70.6%
62.1%
34.0%
27.1%
70.1%
2.0%
-4.3%
-3.6%
-1.8%
-2.3%
3.9%
2.9%
5.6%
4.7%
5.9%
4.4%
CONTRIBUTED INCOME
Memberships
Bowmer Society
Major Gifts
Other Annual Fund
Support Groups
Government
Foundations
Corporations
Artistic Opportunity Fund
Total Contributed Income
OPERATING GAIN/(DEFICIT)
FINANCIAL RATIOS (% of Total Expenses)
Ticket Revenue
Artistic Costs
Contributed Income
Payroll
Growth Ratios
Ticket Revenues
Operating Expenses
(50)
Examples Of Supporting Information
Appendices
• Outline of programs
• Attendance/clients served – numbers revealing trends – statistics
• Past financial information: Activity Statement, Balance Sheet
• Education activities – numbers
• Comparisons with other similar organizations – Key statistics
• Facilities – maps, square footage allocation
• Board Structure
• Board Committees
• Organization chart
• Volunteer groups
Operationalizing and
Executing The Plan
Paul Nicholson
Executive Director, Oregon Shakespeare Festival
Paul Nicholson assumed the position of Executive Director of the Oregon Shakespeare Festival in
November 1995. He joined the Festival in 1980, serving as general manager for 16 years.
A New Zealander, Paul was the administrative director of Downstage Theatre, New Zealand’s
largest and longest-established professional theatre, for six years. Prior to becoming involved in
professional theatre, he worked for ten years in the corporate world as a planning manager,
management accountant and systems analyst.
Paul has a graduate level business degree from Victoria University, Wellington, New Zealand. He
has been a guest lecturer at Stanford University, Victoria University of Wellington and the
University of Oregon, and is a frequent speaker at the Oregon Non-profit Leaders conference.
He has consulted with many U.S. arts organizations and is actively involved in arts advocacy for
the state of Oregon, currently serving on the board of the Oregon Cultural Advocacy Coalition.
He was a founding faculty member of the Western Arts Management Institute and in 1984
became an adjunct professor at Southern Oregon University. In 1991, he was featured in the PBS
series on management, Nothing Ventured. He has participated on many panels for the National
Endowment for the Arts and the Theatre Communications Group (TCG).
Paul has served or serves on many local boards including Southern Oregon University Advisory
Board, Ashland Rotary, Ashland Community Hospital, the Ashland Chamber of Commerce and La
Clinica. On the national level, he served for many years on the board of TCG.
2012 marks his 33rd season at OSF.