Here’s a quick synopsis and links to the chapters. The consultants will be in town this weekend and at the council meeting on Tuesday.
CHAPTER ONE – MODEL, GOVERNANCE, PERFORMANCE STANDARDS AND TRANSITION (6 pages)
– Arts Centers don’t make money and need to be subsidized by donors.
– The term sheet does not go far enough, or provide enough detail regarding board composition and functioning.
– The Term Sheet also imposes heavy reporting requirements on 201 State, but avoids specifics as to what would constitute failure and/or default. These reporting requirements will simply slow down the Board’s and its management’s ability to succeed, whereas highly specific performance standards and consequences for not achieving them will insure more effective functioning and results.
– I suggest a board of 25 persons, 21 “civilians,” and 4 ex officio (voting) public officials. The Mayor would be a member, and he would appoint another person, who would not have to be an elected official. The Mayor, h/herself, could send a proxy to meetings, but the proxy would not have voting rights. The President of the Common Council, in consultation with the Mayor, would appoint 2 Alders to the Board. The Alders could not send proxies to meetings. One of the 4 ex officio members would serve on the Board’s Executive Committee. This person would be chosen by the Mayor, in consultation with the President of the Common Council.
– Board meetings would be open meetings and specified as such in the Board’s bylaws. Matters related to personnel and donor relations could be discussed in executive sessions. Executive sessions could include staff members when appropriate. The Board Chair would be responsible for calling executive sessions. It would not be a matter decided by a vote of the Board.
– The Advisory Council should be appointed by the Board, with input from its Nominating Committee. It should contain 15 members, with a Chair chosen by the Board’s Nominating Committee and approved by the full board
– The Board must keep in mind that its role is: policy, resource development and matters fiduciary.
– Clear and defined financial standards are essential. When financial trouble hits, the nearest municipality becomes the financial “go to,” or “backstop.” We all know that these civic monuments cannot be allowed to shut down, to be boarded up, as the image of the City would be surely besmirched. Usually after intense and painful negotiations, deals that involve taxpayer money are hammered out. The lesson here: even if it is painful now setting specific financial performance standards, do it and avoid future misunderstandings and grief.
– Community Involvement and Engagement standard can be measured with 3 numerical factors: Overall aggregate budget of education and community engagement programs; Total number of citizens directly touched by these programs, and; Number and variety of programs offered.
– A knotty issue that needs resolution concerns who would manage the transition period. Who’s in charge, so to speak? There’s a legal question to be answered, and then there’s the question of who leads it, and how.
CHAPTER TWO – STAFFING AND SALARIES (2 pages)
1. Is the staffing model adequate to get the job done successfully? Yes. Perhaps even more so than to meet revenue expectations. It appears that the Focus Model adds approximately 6-7 positions to Overture’s existing staffing. Some of this addition will be essential, e.g. a new leader in the area of fund-raising. Others will add horsepower to the education and marketing efforts
2. Are the salaries in line with the market? The salaries, with the exception of the senior executive one, are generally in line with the local and regional market. Salaries for chief executives in similarly-sized performing arts centers, but in larger cities, are approximately double that listed in the Wolff Focus Model. This being said, the Madison market does not seem willing, and given its size comparison to much larger markets, able to support this level of salary.
3. Is the union arrangement as outlined in the Term Sheet workable? From my analysis and viewpoint, there is no one solution that meets everyone’s concerns. It appears that the solution proposed in the Term Sheet is workable, and should be allowed to move forward. 201 State and its senior management team will need to pay special and dedicated attention to staff and their concerns, especially insuring openness in its future negotiations with AFSCME Local 412 and IATSE.
4. Are there special leadership issues that need attention?
– One, the Wolff Focus Model is not a contract; it is a highly detailed, but a hypothetical plan. The salaries are in line with local standards (except as noted on the senior executive one) and the staffing model is quite standard, and certainly adequate to get the job done. Board and senior executive levels must relate well and cooperate, demonstrate high levels of expertise in leadership, and be open, listen and respond artfully to a wide range of community concerns.
– Two, given the angst that the community has experienced throughout this entire process, and assuming that the Private/Public plan moves forward, the chief executive will need to demonstrate extraordinary human relations and communications skills to “right the ship” in the City of Madison.
– Three, the resident companies matter – a lot! Overture management must keep its eyes on the balance between its operations (size of staff, level of salaries) and those of its resident companies. Open and regular communications with the resident companies is highly recommended.
CHAPTER THREE – MARKETING AND SALES (3 pages)
– Broadway Ticket sales projections are down but seem reasonable.
– Overture Presents series projections are reasonable, but volatile.
– Given the relatively modest impact the educational and community outreach efforts have on the overall marketing expense and revenue projections, historical trends were not analyzed.
– The average facility fee of $3.35 is in keeping with industry standards, however the per-ticket surcharge average of $2.90 appears somewhat low, but may be appropriate for the Madison area.
– I did not find any revenues calculated for the per-order charge of $3.50 applied to most events currently sold on the Overture Center website. This revenue may be unidentified and embedded in other projected revenue lines.
– Marketing budget is consistent with historical trends.
– Marketing staff seem appropriate. It will be critical that the marketing team structure either be augmented to include a staff position for this area, or employees are identified who bring the needed skill set to the team in one or more of the Advertising Specialist positions. Salary levels appear competitive for the region.
CHAPTER FOUR – FUNDRAISING (2 pages)
– The plan is sound and attainable and they have a strong base for several reasons.
CHAPTER FIVE – ADVISORIES (2 pages)
There are a number of issues, some already covered, that deserve isolation here.
1. The question of who owns Overture may be a moot point but the public would not allow an important downtown landmark to close its doors and be boarded up. In my opinion, there’s no getting around this issue of de facto ownership. Whether in the end the “deal” is described as private/public or private/private, it won’t matter; It will be private/public.
2. Leadership, leadership, leadership: the success of Overture will not result from the model, but because of who the people who run it.
3. The charge of elitism is a weapon and needs to be understood and responded to as such. This implies responses that are multi-faceted, original-to-Madison, and sincere.
4. The Overture donors asked that their names not be placed on Overture, or on any space in it. They were wise in asking for this. I advise that no name ever be put on any space. My advice: make no naming a rule.
5. Set strict performance standards and reasonable reporting requirements, not fuzzy performance standards and overwhelming reporting requirements. Let management do its job.
6. The unionized workforce provides invaluable service to Overture. Recognize this and make them friends.
7. Adopt an operating principle of always “doing more with less.” At all times, even in times of economic prosperity, at least one of the resident companies will be experiencing economic difficulties. By demonstrating that Overture is doing its business with economy, all parties who “live” there will have a basis for being happy families.
