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Foreword
When we first began the conversations in the autumn of 2003 which led to the
development of what has become known as the MMM Programme of Work,
we were motivated both by frustration and passion. Frustration at the
inevitable catastrophe of the dominance of the status quo in the way the world
of the arts operated and a passion to help catalyse debate about issues of
sustainability which we hoped would lead to changes in mindset, approach
and working practices in the way the arts operate – changes which also had
the potential to release ever greater creative and artistic activity.
Eighteen months later our personal commitment to this agenda has grown
exponentially and our motivation to help necessary change succeed has
strengthened. There have been two primary reasons for this.
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As John Knell points out in his excellent report of the 7th of February
Conference below, “ MMM’s original analysis – that the sector is overextended
and undercapitalised – is right, and the two conferences have created a
greater appetite to address that fundamental problem. MMM has overall been
a successful initiative – it has built understandings, raised expectations and
dashed them simultaneously – the frequent outcome of a successful pilot”.
Despite these and other challenges we are all committed to moving the MMM
agenda forward, collectively and individually. As John Knell concludes, ‘the
revolution starts at home’. Conversations with a range of public and private
bodies about a third phase of activity are underway, the Advisory Group have
been working on objectives, principles, approach and an activity grid with the
aim of making a more detailed announcement shortly after the election.
In the meantime we hope that you continue to find all the material generated
so far and available on the microsite stimulating and helpful and that you
enjoy reading this conference report.
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Introduction
Since its inception in June 2004, the Mission, Models, Money (MMM) programme, an
initiative of Arts and Business (A&B) and the Jerwood Charity, has sought to explore
new approaches to financial sustainability in the cultural sector. Following the launch
event in June 2004, the MMM Advisory Group, supported by Fellows from The Clore
Leadership Programme, has been seeking to deepen our understanding of the
challenges of successfully managing for mission and money and to produce a
different type of professional conversation in the arts – honest about existing
weaknesses and bold about the need to adopt new approaches and models within
the UK’s artistic infrastructure.
The second MMM conference on February 7th 2005 sought to both review the
progress that had been made in examining the key issues and challenges, including
the case studies and international comparisons that had been generated by the
MMM work programme, and to propose a range of new approaches, new solutions
and possibly new models of doing business in the not for profit arts sector.
In addition to the conference summary this brief report also features an evaluation
report on the Conference, which is based on a participant survey conducted for the
MMM Advisory Group by the Research, Evaluation & Information team at Arts &
Business. Both the conference summary and evaluation report identify common
themes and issues in terms of the strengths of the MMM initiative to date, and with
regard to possible directions the MMM programme of work might take in the future.
The conference summary that follows does not offer a verbatim account of the day.
Many of the background papers for the event are available on the MMM micro-site,
and this document is designed as a compliment, rather than a substitute, to those
provocations and the case studies and policy papers produced by the Clore Fellows,
which we would encourage you to read in full.
“As in most things, divide and conquer would be an unhelpful strategy for sustainability in any
quarter; unite and triumph would be a better thing to think about” conference delegate
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Developing Financial Sustainability
• How can we create reserves /endowments and once created how do we
manage and control them?
• What strategic alliances could be developed between organisations to
achieve back office cost efficiencies and how could these be extended ‘front
of house’?
Given this breadth and depth of focus and contributions, it is impossible in this short
document to summarise in any detail the various sessions. Rather we have sought to
provide an overall summary of the key themes and issues that emerged throughout
the day’s discussions, in addition to providing a short summary of each of the key
breakout sessions1. We begin with a summary of key themes and issues.
Lots of voices
One of the important characteristics of the day was the wide range of views and
perspectives aired and discussed, producing both richness and complexity. For
example, most of the breakout groups ended up asking new questions rather than
answering the ones identified by the Clore Fellow papers, whilst the plenary sessions
provoked debate but not a lot of consensus or clarity.
Lots of agreement
Nonetheless, reviewing the Conference dialogue reveals lots of common themes that
emerged across the sessions, which included the following:
• Values and language matter – finding new ways of capturing what the arts
already stand for, and do, was a constant refrain through the day – reflecting
a desire to provide good answers to the ‘what are we fighting for’ question
1 Unfortunately due to recording problems, we are currently unable to provide a summary of the
breakout session examining the wider environment and how the cultural sector could better engage
with the changing demographic, technological and social environment. We are in the process of
exploring how best to generate an account of that discussion.
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• We need more peer-to-peer learning – a virtuous circle of ‘find, share,
celebrate, learn’
• We’ve barely begun to get good at creatively managing the tensions between
money, mission and models
• We need to invest in the skills and capabilities of the people who work in arts
organisations, and be clearer about the core competencies arts organisations
require
• It’s all about relationships – coupled to a sense that we need more honesty
and transparency in our key relationships and practices
• We need to value our own skills more, whilst also becoming more critical of
what we need to learn
• Whilst accepting that there is no one best way forward - there are lots of good
principles and tried and tested approaches which are being unevenly applied
across the sector
Lots of dissent
As you would expect, there were also significant disagreement expressed over
priorities and the best routes forward. Some of the key points here included:
• Support for an MMM type conversation, but also a tangible fear that it will be
reduced to an unsophisticated managerial or CPD agenda
• Some see irreconcilable tensions between the mission and the money –
others see creative opportunities
• Weak levels of common agreement over what key concepts and issues mean
(reserves, commerciality, governance etc)
• Lack if clarity over who the prime customer is and what this means for
mission and money
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• Exceptionalism is a strong default attitude in the sector– informing ‘it’s
different for us’ mentalities
• Tied to a sense that the diversity of the sector makes common approaches
difficult and counterproductive
• Some see the sector has having made great strides and progress on reach
and openness, others regard it as unprepared for the shape of future
developments and big picture drivers
• A lack of clarity over who leads, who’s responsible, and how the sector can
collectively punch its weight
“it seemed to me that if it’s become difficult to discriminate between the living and the living-
dead amongst UK arts organisations, that should be sometimes a question that anyone
concerned about the quality of UK public life should be concerned with” conference delegate
“I’m struck by the radicalism, the free-radicalism that is sometimes a feature of private
conversation about the arts; it’s not a feature of the public conversation in the UK about the
future of the arts. Our challenge is to make it so” conference delegate
• Acknowledging how weak the near cash position is for the sector as a whole
• Acknowledging that as a consequence the leaders of many arts organisations
live in a constant environment of risk & heroic leaps
• Focusing on the skills and capabilities challenge for arts organisations around
these issues
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• Those types of economic models and approaches which most effectively build
reserves
• The successful reserve strategies that have been adopted by organisations
• Talking more about assets and asset allocation, rather than narrow, cash
money definitions of an organisation’s assets
• What a reserves strategy might look like for organisations of different sizes
• How to create better incentives, rather than disincentives, for reserve creation
• How to create ‘better line of sight’ in terms of financial accountability inside
arts organisations – with all staff internalising financial disciplines
• What we actually mean by reserves and their role in short-term activity and
long-term planning
• What it might mean to have a more far sighted asset allocation strategy,
building new sources of value and revenue
• The degree to which lead bodies (ACE, Local Authorities) support the
creation of reserves as a sign of organisational health
“I think it might be useful instead of talking strictly about reserves to just talk about assets and
asset allocation strategy” conference delegate
Strategic Alliances
What strategic alliances could be developed between organisations to achieve back
office cost efficiencies and how could these be extended ‘front of house’?
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• International experiences as well as UK based examples of practice.
Various examples emerged from around the country and abroad of diverse
collaboration:
- University of Manchester – cohesive strategic approach for museum, gallery
and library
- A consortium of businesses in Manchester including The Bridgewater Hall,
Harvey Nicholls, Selfridges developing frontline service training with potential
support from North West Development Agency.
- Barbican – creating a community of small-scale arts organisations
- Newbury – three small-scale arts organisations combining to approach
Vodafone for funding. Success in combined approach
- Philadelphia Orchestra and Kimmel Center exploring a merger
• The degree to which artistic collaborations and alliances carry with them the
risk of diluting artistic identity
• How best to ensure that sharing resources does not lead to an erosion of
organisational individuality
“I don’t think that, as a sector, the leaders of this sector are working hard enough to define
what it means for arts organisations of different sizes and scales to live well, creatively and
organisationally” conference delegate
Governance
What are the priority issues with regard to governance in the not for profit arts sector
and what changes need to occur to reflect the changing landscape arts organisations
are operating in?
“the boards of most major arts organisations are more effective than the Vietcong at
defending lost causes, and they’re often better in hand-to-hand combat” conference delegate
• Recognising there are no single answers for the sector and we need to build
flexible approaches
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• Recruit for skills and competence needs not for status and fund raising
possibilities (contribution & capability not charisma and cash)
• How best to engage and interest new and existing board members
• An advice line for trustees and board members won favour and support
• How best to manage, appraise and utilise talented boards and trustees
• How far codes, and of what sort, should be used to drive good practice
• Whether the established charity model has had its day – do we need new
structures and models
• Defining what is the appropriate ‘reach’ for different size and types of arts
organisations (‘reaching everyone’ is not a suitable strategy for all arts
organisations)
• Deepening understanding of customer (audience/visitor) base and key issues
such as why people feel they do not want to participate
• Linking data better internally across discrete activity areas (box office,
marketing, development) and externally between arts and other organisations
• Integrating marketing into the whole organisation
• Normalising entrance into arts spaces as a ladder to participation (Sage
Gateshead tea dances)
• De-mystify and/or re-develop vocabulary around marketing and participation
• Identifying better mechanisms to share knowledge and good practice
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• Systems and data usage which extends and deepens participation
• Leading edge work by art educationalists, and the network of audience
development agencies around the UK
• Widening public participation, particularly in diverse and excluded groups
• About audience behaviour and visitor patterns
“I firmly believe that if you understand your market you don’t have to compromise on your
product and your art form” conference delegate
“in a world where the old will soon be the majority, the old, over-50s, have 80% of the wealth
now, and 40% of the leisure time, our attitude that the old are really, really boring and
conservative, which, looking round the room, you’d think the population here would disprove,
is perhaps something we need to question.”conference delegate
Key Competencies
What are the key competencies arts organisations need in order to manage mission-
led strategies which are successful both in terms of mission and financial
sustainability?
“as well as the Arts Council stabilisation and recovery programmes, and stuff like that, there
would be the Arts Council’s assisted euthanasia programme” conference delegate
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• Income generation & commerciality
• Jointly celebrating tangible managerial competencies and less tangible values
based, artistic leadership skills
• Celebrating what we’re good at
“We want arts organisations that are both mission-led and financially sustainable. Now that
sounds really simple but actually it requires quite a change of mindset for some organisations”
conference delegate
• Effective leadership
• creating development centric organisations
• getting the small stuff right
• building better organisations
• how to become more transparent
• cost control and embedding financial acumen
• and the skill of saying ‘no’.
“I think that you have to completely embrace the idea that the future for most arts
organisations is more mobile, more fluid, less tied to a fixed cost base” conference delegate
“we need some disruption. We all know things need to change” conference delegate
2 This section of the report was written by Catherine Bunting, Head of Research, Evaluation and
Information, A&B
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Firstly, survey respondents were keen to praise the quality of the two MMM events
and the associated research and opinion papers. Participants felt that relevant issues
were tackled in a grown-up, intelligent and collaborative way and appreciated the
passion, commitment and energy invested by the speakers and authors. The quality
of the audience was also seen to be a key strength – the seniority, experience and
diversity of the delegates allowed for stimulating debate and created important
networking opportunities. For one delegate, “day 2 was one of the best days of its
kind I have attended”.
Overall, then, a successful event – but did it make a difference? The most significant
outcome to date appears to have been an increase in awareness and understanding
– over 60 per cent of survey respondents felt that the MMM initiative had increased
their understanding of the challenges facing the cultural sector to a ‘large’ or ‘very
large’ extent. Several respondents have taken this heightened understanding back to
their organisations, where it appears to be driving and informing fresh approaches to
the challenges of long-term planning, governance, income generation and impact
measurement. Informed by the debate at the first conference, one organisation has
already been able to make a successful application to the Arts Council for a grant to
research potential income-generating activities. Overall, the feedback indicates that
MMM has provided a new lens for examining challenges and exploring solutions, one
that is already being put to use by a number of individuals and organisations across
the sector.
The survey results also indicate that MMM has encouraged greater collaboration
between organisations; several respondents anticipate the development of a new
range of strategic alliances forming on the back of MMM and a group of Executive
Directors in theatre have already “agreed to work more closely together in looking at
the challenges facing our type of organisation”.
Unfortunately, it’s not all good news. Whilst MMM has raised individual awareness of
key challenges and encouraged a more collaborative approach to meeting those
challenges, there remains a significant degree of scepticism regarding its ability to
stimulate sector-wide transformation. Less that 40 per cent of survey respondents
are ‘confident’ or ‘very confident’ that MMM will lead to the development of new
practical approaches and models and nearly 70 per cent are unconvinced that the
initiative will activate the changes required to create a more sustainable future for the
sector.
In this respect the respondents outlined specific limitations in the second MMM
conference, in particular identifying the main weakness of the day as a failure to
identify priority action points and responsibilities and to articulate next steps.
Delegates reported a loss of focus in the last session of the day, and were left
unclear as to how the agenda would be taken forward and the momentum
maintained. One respondent summed up the general feeling: “There seemed to be a
positive intent to make the day action oriented, but no-one went away with real and
agreed tasks, nor a process through which those tasks would be assigned in the
future”. Another delegate went on to ask: “Is MMM over – and if not, how can I
know?”
Whilst the quality of the audience was seen as a key strength by most respondents,
there was also a sense that some voices weren’t being heard. In particular, several
delegates felt that the initiative would have benefited from the input of more small
and mid-scale arts organisations and recognition that many such organisations are
already “financially secure without traditional arts funding, are cross cutting, are very
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sophisticated in the way they present to their non-arts audiences and funders”.
Another delegate suggested that those currently engaged in the debate are “only
interested in preserving the status quo” and questioned whether these really were the
people “who will find new models”. There were also calls for greater contributions
from academics, local authorities and the private sector – particularly shared learning
and the transfer of skills, approaches and models between the arts and business
sectors.
“Quality is an increasing problem for people. In an era when equity and access and
participation are the key words that are judging art by its social value, it seems to me that
people are scared to make qualitative judgements” conference delegate
Survey respondents were keen to provide suggestions as to how the issues raised by
MMM might best be taken forward. There were strong calls for action, particularly the
development of a series of small-scale pilot projects – practical experiments serving
as action research and informing future policy and practice. Other suggestions
included “some kind of bonus scheme for best practice examples of change”, “a
MMM conference confined to a specific geographical area, or to a specific part of the
sector” and “ a fundamental review delivering a keynote paper on the key issues
facing the arts”.
However, there was debate – and no real consensus – around responsibility and
ownership: who should drive the agenda forward from here, and what should the
roles of DCMS and ACE be? Several respondents were keen for the initiative to
retain its independence; MMM’s collegiate approach – the fact that it is not ‘owned’
by any one organisation – is seen as one of its great strengths. One respondent
identified a need for “some organisation which will spearhead and champion the case
– and which has teeth/a cutting edge to the way it operates…and is also free from
government subsidy itself”. Yet there was also a palpable belief that buy-in from
policy-makers and funding bodies would be critical to the success of any continuing
programme of work; there was a call to “bed the initiative more firmly into current
political/funding structures so it cannot be seen as an add-on”.
“ The development agencies for the sector, those organisations that are absolutely mandates
to help you in that endeavour to become more adaptive and innovative, they have to develop
themselves rather more effectively than they have done so far” conference delegate
Whatever form MMM takes in the future, the evaluation to date gives rise to three key
recommendations:
Finally, the Advisory Group can be assured that there is a strong will in the sector for
the continuation of MMM, and a network of enthusiastic individuals that are
committed to making it work and ready to invest their passion and energy in driving
change. In the words of respondents, MMM “is a crucial initiative and must be
continued”, “has a strong role to play as a catalyst for change” and “needs to be
sustained over a longer term”. The overall message was keep the debate alive.
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“if every one of us doesn’t take away the various rubrics for action in all those six areas,
whichever ones we thought were the two most important, then we are kidding ourselves, and
anybody who doesn’t go through that list and say, yes, I’m doing this or no, I’m not doing that
and then takes a very hard look at the things that they aren’t doing and if they do nothing
about it there’s simply no point in complaining that the sector has not been
transformed”conference delegate
Firstly then, has MMM made a positive contribution in generating debate and new
insight into how best to generate new approaches to financial sustainability in the
cultural sector? :
• And forward in the sense that it is vital to keep the momentum and energy
going by keeping the conversation broad, challenging and stretching
Given these achievements and expectations, what might be some of the principles
and practices that need to shape the development of the MMM initiative? :
• Any future programme of work needs to sweat the ‘small stuff’ and the ‘big
stuff’. The MMM programme has powerfully shown that the cultural sector
urgently needs to professionalise its practices (often by focusing on the ‘small
stuff’ of day to day continuous improvement) and to transform its thinking
about its mission, role, and modus operandi (the ‘big stuff’). The strength of
MMM has been to trigger an insightful conversation at both of these levels,
and it should continue to try and do so in the future.
• Any future MMM programme has a crucial ‘roles and responsibilities’ function
– i.e. to make sure those who need to drive forward progress in the future are
not ducking their responsibilities. The evaluation feedback confirmed that
delegates felt unsure about whether key agencies were really committed to
taking forward the MMM agenda. The ongoing development of MMM as a
public good, public interest project, with a wide range of key stakeholders and
agencies, is dependent on engaging more actively than hitherto the main
players, and ensuring that they make firm and tangible pledges to what they
will deliver within any new MMM programme of work.
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• The key objective of MMM has always been to trigger a greater desire and
capability within the cultural sector to creatively balance the needs of mission
and money. Its message must remain that ‘the revolution starts at home’ –
with each individual and arts organisation accepting the need to think better
and to execute better
The Mission, Money and Models initiative originally sprung from the insights,
concerns, and capabilities of the Jerwood Charity and Arts and Business. However,
as this conference summary and evaluation report has confirmed, its future success
is dependent on others to find common cause and bring to bear their expertise on
how best to create a more vibrant cultural community in the UK built on a more solid
platform of greater organisational and financial sustainability.
In this respect MMM has created a fantastic opportunity for the sector to realise these
ambitions – but it remains only an opportunity. Grasping it demands that MMM
continues its work, and that the key development agencies in the sector drop their
shoulders more firmly behind the wheel.
John Knell
Intelligence Agency
April 2005
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