Developing an action plan Essay
Developing an action plan
The Utah Symphony has proven its ability to generate substantial sums of Revenue with both performance revenues and by securing large sums of income from governmental grants along with generous contributions from individuals, corporations and foundations. The Symphony’s ability to draw large crowds along with their demanding schedule length allows them to offer the community ample opportunities to participate. The Symphony provides sustainability for 83 full time musicians, and this allows them to concentrate on the goals of the Symphony without the worries of looking for other income opportunities.
Mr. Lockhart is a very talented and experienced music director that has a personal commitment to his symphony. Mr. Lockhart’s role as the music director comes with many challenges, it is through these challenges that he has elevated the Utah Symphony to the status they enjoy today. The musicians and Mr. Lockhart have developed a relationship of trust and respect, Mr. Lockhart has publicly acknowledged how important they are to the overall success of the symphony and his success as a director.
The Utah Symphony has a very demanding schedule and with it comes great expense; the symphony needs to look for cost cutting options to maintain operations. They are relying on generous governmental funding and other contributions that are simply not what the previously had been. The symphony will need to look towards the possibility of reducing its staff’s income and benefits, to overcome this shortfall, which is a hard situation to deal with. Mr. Lockhart will need to take a stronger leadership role and develop a plan to approach the musicians about the dire situation they are in and try to develop a strategy to cut cost, however his personal relationship with them present a challenge that is not easy to overcome. Another concern is Mr. Lockhart does not want be perceived as “playing second string” when it comes to his Symphony and will need to look at the bigger picture to see what is best for the Symphony.
Anne will need to be as straight forward and honest as possible about the realties that the symphony faces, with regards to budget management and cost saving techniques. She will need to gain the trust of the musicians much the same way Keith has by developing the understanding of the importance the musicians hold within the developing organization for the merger to be successful. She needs to develop a relationship with Keith and his position with the symphony that does not create tension within the merged organization.
The Utah Opera has developed a business strategy that works. They are running a very profitable organization that utilizes effective methods for fundraising and obtaining other contribution resources. They have appropriated their budget to allow them to maximize what revenue they attain wisely; they will have very little reduction in governmental grants, and a projected increase in contributions for individuals, corporations and foundations in the year to come. They have a large inventory of costumes and productions sets and own the building and land they operate in. With Anne as the head of the UOC she has grown the budget from 1.5 million to almost 5 million; she’s an accomplished fund raiser for the UOC. Anne bring many talents to the UOC from stage director, to general director Anne is a very crucial part of the success of the UOC.
The UOC faces a challenging future with the lack of performance revenues projected for the upcoming season and increase in production cost they may have to make adjustments to staff to maintain their level of security, however they have been running an impressive surplus of nearly half a million dollars. With the merger details made public they have had some staffing concerns and even the resignation of the Director of operations Leslie Petersen. Some members of the UOC staff feel they may be placed in the shadows of the Symphony and end up flipping the bill for the symphonies failures. Anne has undertaken a huge role within the merger of the organizations and she will need to make sure she doesn’t lose focus with the day to day operations of the UOC, since she is currently without a Director of operations. Anne has a proving record of running efficient organizations and may not be sensitive to the needs and desires of the employees from both the UOC and USO, due to her drive for efficiency.
Anne needs to place a Director of operations for the UOC as soon as possible. She will need to talk with her current employees and provide the assurance they need in regards to the important role they play in a successful merger. She will want to assure that the organizations will work together as one and the UOC will not be left flipping the bills from the shadows. Anne will want to continue to meet the needs of the UOC to maintain it level of success.
Analysis of Company scorecards
Financially the goals of the USO and UOC are quite similar they both are concerned with financial stability with increased profitability. Fund raising is realized as being very important to maintain that profitability with the USO focused more on keeping ticket prices the same as last year and the UOC with increasing their endowment being a priority, which has one to think that the UOC is more concerned with money then the artistic exposure aspect that the USO has. Both organizations have goals of increasing profitability, with the USO planning on a significant increased goal, the UOC just wants to increase the reserve funding (there security blanket).
Both organization have similar goals with respect to notoriety however due to the size and scope of the entertainment they provide, the USO has a more world vision on success with the UOC is focused on national and regional recognition. Both organizations realize their success depends on great performances and talented performers; they remain very similar in that aspect. The crowds say it all and both the UOC and USO know that feedback and attendance is very important, but they have different views on how to gauge this with the USO focused on feedback directly from exiting customer and the UOC judging this by the ability to producing sell out performances.
The internal processes of the two organizations are quite different with the USO maintaining the staff of it musicians tear round, and the UOC gaining new performers for different performances, they face different sets of challenges they both negotiate salaries for the performers and talents with profitability being a major tactic. They measure the success of the internal process differently as we with the USO depending on improving ticket sales and returning customers the UOC is depending on reviews and profitability measurements for success.
With respect to learning and growth, the organizations differ slightly. They are concerned with increasing the amount of performances, with the USO focused more on gaining a younger crowd the UOC is just trying to keep sales growing. They both realize the importance of ticket sales to their success with the UOC again is concentrating on having the increase in bottom line, where as the USO wants greater returning audiences.
The scorecard does address some of the strengths and weakness, I developed prior but should have a better focus on what the organizations can do to improve and assure they will be successful in the future. The balance score card may not align with all the strengths and weaknesses of an organization but it more approximately focuses on what direction the organization desires to go to meet its desired outcome.
USO & UOC Balanced Scorecard
·Strategic Goal: Being Financially stable with increased profitability ·Critical Success Factor:
Maintaining highly successful fundraising efforts to maintain ticket prices and endowments.
·Measure: Increase profits providing Surplus deficits.
·Strategic Goal: Providing Top notch performances and gain Notoriety
·Critical Success Factor: Acquiring quality performers
·Measure: Ticket sales and exit surveys
·Strategic Goal: Attracting top talent while improving profitability
·Critical Success Factor: Negotiating contracts closely to assure profitability ·Measure: Improved profitability, and ticket sales.
Learning and Growth
·Strategic Goal: Increase of productions to more appealing crowds
·Critical Success Factor: Increased profitability with Larger demographic
·Measure: Return sales and exit survey results
The weakness of the merged organization with regards to the financial stability will be how to distribute the profits; they both have goals to increase profitability which is a good starting point, they will just need to develop a solid plan. With regards to the customer the organization wants to increase its overall notoriety and exposure to different demo graph’s and this is a great strength they share and can benefit from.
With regards to Internal processes the current goals they share to maintain profitability while negotiating salaries is a weakness due to the inherently different classes of talents the organizations face and how they can balance that difference while maintaining peace.
The organizations share the goal of increased growth and exposure to a varied age group while increasing production so this should be a strength that they both will benefit from and have little trouble adapting to.
With the balance scorecard in place, the financial issue that could arise would be how the profitability of the organization should be allocated, whereas the UOC is more focused on maintaining its endowment the USO is more concerned with keeping ticket sales stagnate while keeping the musicians happy.
The Humans resources department will be dealing with two very different groups of talent and with the USO musicians union to deal with they will have a very challenging task with the merger. When dealing with customer satisfaction, due to the organizations producing very different types of productions they have a level of frustration and confusion with scheduling and production run times. The best way to educate customers on the performances will be through advertisements and customer interactions such as exit surveys and questionnaires.
The new merged company executive will want to develop a detailed business strategy that will show how the organization will be able to maintain its level of profitability while achieving all the financial goals it has developed. The new executive must help the Human resources department understand their roles and assemble this department from both organizations to be successful. As with any company customer satisfactions should be a priority and by educating the public about the benefits of the newly merged company and the great performances you provide can greatly increase your exposure to a larger customer base.