Strategic management in the live, nonprofit, professional, performing arts : an analysis of professional symphony orchestras and development of a performing arts prescriptive model

Strategic management as it is practiced in the live, nonprofit, professional, performing arts was the focus of this research. In late 1985 and the first two quarters of 1986, investigations were made on: (a) the performance of the process; (b) the types of strategies that resulted; (c) the quality of those processes and structures; and (d) any benefits to organizational performance associated with the use of strategic management. To complete this research, a method for assessing the quality of a strategic management process and resultant plans was devised. After a three-orchestra pilot study was completed, four in-depth case studies of metropolitan orchestras were conducted. Internal and environmental factors were examined to provide a context for both the orchestra and strategic management. Organizational performance, measured in total revenues and attendance at full orchestra concerts, was assessed over a minimum of five years to discern if strategic management's use had had any effect.

The results were that four distinctions could be made between the two stronger and the two weaker organizationally performing orchestras. The stronger orchestras had; (a) at least one member of the management personnel taking the "leader" (Mintzberg, 1973) managerial role; (b) three or more full-time administrators; (c) managerial personnel that had foresight and perceptivity demonstrated in their responses to stimuli; and (d) used strategic management. The weaker orchestras had none of these characteristics. These distinctions were true regardless of recent organizational history, the organizational structure of the orchestra, the physical facilities used, or the services provided. Among the external variables that could have affected organizational performance, none discriminated between the weaker and stronger performers.

While some arguments could be made for good managers choosing to use strategic management instead of strategic management's use improving managerial abilities. Orchestra G's case tended to dispel a self-selection explanation. In live, nonprofit, professional, performing arts organizations, strategic management had been beneficial; it had provided continuity and direction.