(UY cee oven Melume z, boa Goll 499d The Creation and Development of Cultural Organizations: Towards a Modelling of the Process Marc Lecoutre, Pascal Liévre “WF 1 1989, we sought to clarify the process of creation and development of culeural organizations based on a survey conducted among such organizations in the Rhéne-Alpes region of France (Livre and Lecoutre, 1989). The work was financed by the French Ministry of Culture and the Rhéne-Alpes Services Agency for Cultural Organizations (ARSEC), a team of management consultants specializing in the cultural field. The survey enabled us to devise a model, in che form of a typology, of the process of creation and devel- ‘opment of culeural organizations. Centred on the notion of process, this model assumes particular position with respect to che differ- ent kinds of structuring of the cultural field found in the literature (Benghozi and Moire, 1986; Cardona and Rouet, 1986; Pasquier, 1986; Busson and Evrard, 1987). We give an account of icin what follows, treating first the methodological, then the theoretical, aspects of the construction of this model. The lengthy third part of this article is devored to the detailed presentation of each type identified, while che fourth part focuses on the different uses and contributions of this typology. Methodological Positioning “Phe construction of a model capable of 1 accurately describing the creation and 2 development of cultural organizations par- takes of the general problematics of model- ling. As Bernard Walliser reminds us (1977), the construction of a model, conceived as a system representing a real phenomenon, implies solving three types of problems by analogy with linguistics: pragmatic, syntactic and semantic problems. In terms of method- ological positioning, we propose to offer solu- tions to these three categories pf questions. The pragmatic issue corresponds to ques- tions as to the purpose of the model: What will it be used for? How will i be used? The work we undertook around the notion of the creation and growth of cultural organizations had co meet the needs of two different part- ners: ARSEC, a consulting firm specializing in the management of cultural organizations, and a department of the French Ministry of Culture, the Head Office of Public Services and of che Culeural Economy, which handles ‘economic development in this field. For the body specializing in management, the ques- sion was how to improve its consulting tools by perfecting its degree of coherence with regard to the logic of development of its client companies. It is faced with the question of adapting traditional company management rules to bodies which are the product of an idiosyncratic organizational logic resulting from diverse influences: public and/or private management rules, artistic and/or cultural dimensions of the activity, the existence of Mare Lecoute is Céreg Researcher in Sociology at the Research and Study Centre ofthe Clermont: Ferrand Business School (Groupe ES, Clermont, France), 2 centre associated withthe French Research Conte forthe Analysis of ‘Occupations, Vocational Education and Training (Céreg, Marel, France, is works deal mainly with the analysis ofthe relation between vocational taing and employment, andthe eal ientfeation of in vidual career patterns inthe labour market, particulary in the cultural eld, Pascal Live i Senior Lecture in Management Sconce atthe Blase Pascal University of Clermont- Ferrand His works dal mainly withthe workings of the labour mart, the mechani of Fim creation, and the logistical steering of organizations. He is a5so- ciated with the Transport, nd Logistics Research Cenve (Cet-Lo9) in ie Provence (France). INTERNATIONAL JOURNAL OF ARTS MANAGEMENTvolunteer and/or wage-earning workers in the organization, professional and/or non-profes- sional practices of members. Isic then possible to create, beyond this diversity, categories homogéncous enough to develop adequate principles in che management field? Here, we have to understand, in as fundamental 2 way as possible, these logics, which we will call hybrids, of the creation and development of cultural organizations. For our second partner, the Ministry of Culture, the objective was to have a tool capa- ble of describing the growch of firms in the cultural field. Tt would then be possible to focus on the most crucial stages in the history of chese structures and on those phases oftheir development which have a particular bearing on their Future, so as to better monitor them. From our partner's point of view, the model also had to be capable of identifying what kinds of organizations, from their inception, could or could not be helped, according 0 their probability of survival The second type of problem which we encountered in modelling, the syntactic one, is the problem of language, of the chosen means of formalization. Here, we used a hybrid language, one thac was both “texcual,” or literary, and “conceptual.” Ie was “textual,” in the frst place, so as to keep the qualitative richness of the history of these trajeccpries. Our language then became more “concepeual” ‘once we started talking about time, stages, and deciding factors. But in the work we carsied out, we distanced ourselves from a mathemat- ‘ical formalization insofar as ic consisted solely in an exploratory stage, the aim of which was essentially descriptive. Acthe end of our analy- sis, we chose an approach based on process, which takes che shape of a tree-like structure deliberately bound to time. Its aim is to describe the sequence of stages in the develop- ment of cultural organizations on the basis of three factors: the private or public nature of the genesis of the structure, the more or less public or private logic of its means of devel- opment, and, finaly, the profile of its creator ‘or manager. Thus, itis the private or public status of the person who created the structure which allows us to classify its genesis. Similacly, the percentage of its earned revenue in rela- tion to the institution’s total revenue enables us to describe, in part, the logic of its devel- ‘opment: a cultural organization will be quali- fied as public when che proportion of its earned revenue is almost nil. Ie will be consid- ered private when said proportion consticures the greater part of its revenue. Finally, the third factor to be taken into consideration in the construction of this tree-like structure is linked to the personality of the manager of the structure, We focused on cwo determining features: his/her entrepreneurial sense and his/her social and career path, that is, the way he/she combines the different stages of his/her life in various cultural and artistic fields, or che way helshe combines volunteer and salaried workers The third group of questions is related co the semantic problem of the degree of corre- ABSTRACT, KEYWORDS This aticle presents a typology of the creation and development processes of cultural organizations in France, the aim of whichis to offer experts or governments the opportunity to intervene rapidly in operations. Because we were aware of the great complexity of this field, we chose an approach based on process; that i, in terms of an organization's birth and history, of the meeting between an individual and an organization, and of the connections between an individual career and the different steps in the historical development of an insitu- tion. In this typology, three main factors have been taken into account: the social and professional path of com- pany managers, the conditions of emergence of cultural structures, and the way they usually develop. This ‘enables us to make a distinction between private organizations, with or without cultural objectives, associa- tions whose aim i to provide the creator with a main source of income, associations based solely on volunteers, ‘or a hundred-year-old pubic structure hindered by its apathy, etc So as to give this typology more consistency, wwe have presented it through emblematic examples, built up from empirical facts, though never real ones, which function as representatives of the trajectories of cultural organizations. Firm creation, cultural organization, modelling, empirical typology VOLUME 2, NUMBER 1 * FALL 1999 23spondence between the model and reality. Indeed, che model that we seek ro create must be sufficiently representative. The point is to have a global view of the different types of firms operating in che culeural arena. But how were we (0 define it? And how were we to reach a representative proportion of this pop- ulation? In adopting an appropriate survey method for the cultural field — here, for the area of culeural organizations ~ two methods stood in opposition to each othet. The first consisted in isolating 2 number of cultural organizations within a far larger field hanks to already existing lists of organizations (the SIRENE file and APE code from the INSEE, the French National Insticute of Statistics and Economic Studies, for instance), In this type of configuration, the main difficulty is one of compatibility between the definition of the cultural field and the usual sources of stais- tics. To what extent is ic possible to find the chosen field starting from the classical eco- nomic nomenclacures? The second step requires one to compile many lists from a v cexy of sources (institutions, trade unions, etc.). ‘The main difficulty is either to discard a cet- tain portion of the population or to count it twice. With the goal of our work in mind, we took as our reference population the file ofthe ARSEC. Comprising 3,175 records, this base reflects its practice of consulting for the last ten years within the Rhéne-Alpes region; we climinaced organizations whose activities were based on crafts or arts industries, ministries and their external departments, professional ‘organizations, and public bodies. We created a represencative sample of cultural organizations based on a random method of selection. From the 154 randomly selected organizations, 96 appointments were sec up for a 90-minute interview at home. The initial sample corre- sponded to a survey rate of about 1/21, and the final sample t0 a rate of approximately 1/33. The proportion of answers in relation to the sample is 62%. When we compare the sample of those actually interviewed to the chosen population, and if we take into account such variables asthe activity code and geographical location, the maximum gap reg- istered is 4.49, Nevertheless, the categories swe created in the typology must be considered first and foremost as ideal types (Weber, 1965); that is, above all else, as organizational structures whose features we modified slightly in order co favour the global logic of the whole, and to respect the internal coherence of each rype.! Now that these three problems are solved, wwe will move on to the theoretical aspects of this typological construction. A Typology of the Development Process of the Actors and Institutions ww: will now consider the typology we managed to build on a theoretical level. ‘Afr this first step in our work, ten categories appeared, among which we find the 96 orga- nizations interviewed. We will present these categories in the diagram below, which can be read cither horizontally, if we follow the time axis of the development of the organizations, or vertically, if we want to consider the way in which they were created. RésuME | article présente une typolgie des processus de création et de développement des entreprises cutueles en France ayant ‘pour Fnalité de peretire & expert ou au politique fenvisager des interventions rapidement pératovres. Compt tenu de a complet de ce secteur une approche selon le processus a U8 retenue:nalssance et histoire de Centeprise, encontre entre tun individ et une enreprise et articulations ene une trjectoreinivduolle et les tapes de développement dun étabiis- sement, Cette typologie a &t réaliske en fonetion de trois facteurs principaux, sit e parcours socoprofesionnel des entre rene, les conditions démergence (ginése) des structures clturlles et leur mode de développement facteurs permetant de dstingur les entreprises privdes avec ou sans poet culture des associations visant& assure le even principal ele crateur ou fonetionnant sur le strict mode du bénévoat, ou encore dune structure publique centenaie prsonnire de son inet, et. Afn de donner cope & cette typolgie, ls auteurs la présentet sous la forme de modes @earactive exenpaire, constits & pate de fits enpiriques mais non res, Figures « emblématiqus » de tajectores centrerises cultures. mors cués | citation Centeprise,entreprie culture, modalisation, typologie emprque ea INTERNATIONAL JOURNAL OF ARTS MANAGEMENT‘The vertical reading allows us to understand the degree of private or public logic in which the structure partakes: its creation may origi- nate ftom a private initiative (another organi- zation br person) or from a public initiative (public institution or body). Thus, from the start, the conditions of creation deeply deter- mine the structure’ belonging to a general type of specific logic. The organizations char- acterized by a strict private logic, whose only objective is profit, have been grouped together in the upper part of the diagram, In contrast, the public organizations or municipal boards which strictly refuse any entrepreneurial approach in che cultural field, barring in par- ticular any possibility of having earned rev- enue in their budges, have been grouped together in the lower part of the diagram. ‘Nevertheless, the differentiation we made berween the conditions of emergence of cul- tural structures, according co their respective share of private or public logic, must be refined. ‘The private initiative may come in several shapes, as the “traditional” organization or as the association. And the corresponding logics are different. Among the organizations arising from a private initiative, we must make a dis- tinction berween two groups, according to the type of status chosen. Some organizations choose to play by the rules of the business game, of the marker; straightaway, they assume the status of a “traditional” company (for instance, limited companies or limited liabi ity companies) and accept to take on the cor- responding consequences in terms of charges and constraints. Further on, we will find examples of departments in important French groups responsible for the installation and zommercial development of a cable TV net- work (type 1: ef. the figure of the typology below), tradicional bookshops (type 2), book- shops that organize exhibitions related to their work (type 3), and entertainment organizers (gpe 2 or 3), ete In the second case, the association status for- malizes the necessity to join forces in order to develop a personal or collective project, with- out there being, at least in the beginning, any economic dimension. These kinds of organi- zations are essentially made up of volunteer (unpaid) workers, at least in the start-up phase, and can be distinguished by the posi- sion of the veritable creator ofthe plan, as well as by the way he foresees is fulfilment. Here, wwe will find associations created by their prin- cipal salaried worker (type 4: an association created in order to enable the founder himself to earn a living), and others run by a group of volunteer workers, either “hard line” associa- tions (type 6: an association in which the founder does not receive an income and in which there are no salaried workers) or associ- ations forming a team of salaried workers, rep- resenting one of the means of implementing the plan (type 5: an association in which the founder docs not receive an income, but where there ate salaried workers) Lastly, in the case of other associations, the creator may have the objective of gaining public recogni- tion of the activity as a public service, so that ight be financed by the appropriate public structure (type 7: an association whose objec- tives the founder wants to be taken over by a public institution). The cultural enterprises stemming from public initiative can have different juridical esumen PALABRAS CLAVE fn ete antclo se presente una tpoogl de los process de creacén y desaralo de las empress cuturoes en Francie, aya | sntied es lade permit al exgerto 0 o pio emprendereperacones que resulten répidament operctivas Cnsderando la comlaided de este sector, 8 opt por un enfoque en téminas de proceso, es deci en tines denacimento y de historia, de lercvent entre un individu y una empresa, de aniculaiones entre trayectra individual etopos de desarlo de un estable- Ciniento Se relics eso tipolote de certo con tes fctres principales, el record soci-paesonl de los empresa, os condiciones de sugimiento (gins) de les estucturas euturales y su modo de desarl, lo que pemit cstioguir entre empresesprvodas con o sin proyecto cultural esecaiones que tuscan obtener una fuente de ingress pao su crodor © que funcionanesrictomete con trebjo valuta, extructura pice centenaria prsionea de su nee, et. Par voter conreta | ‘esta sipoigta se la presenta bao o forma de madelos de carécter ejemplo, cnstuides a parti de hechosenpinos pero ro reales, urs “emblematcns” de tayectoris de empress cultures, recion de empreso, empeso culture, medelizecié,tpoogta empirica VOLUME 2, NUMBER 1 © FALL 1999bases: state-owned companies, public organi- zations, asociations. But itis not according to this criterion chat we can make distinctions ecween, these structures: association. status, for example, takes on the most varied working forms, which allow them to adapt indiscrimi- nately to a private or public logic. As we will see further on, ic is the personality of the man- ager chosen by the local authorities (and the nature of his/her plan) which will truly enable us to differentiate chese structures. So, we find here different kinds of structures: for instance, traditional museums (type 10) oF those with publication activities (catalogues, postcards, ‘erc.) with the aim of self-financing (type 9), or even structures deliberately placed by their public developer in the area of the private sec- tor (ype 8). The horizontal reading of the diagram, from lefe to right, allows us to comprehend the = ATA PRIVATE INITIATIVE TYPOLOGY OF CULTURAL ORGANIZATIONS IN TERMS OF THEIR INSTITUTIONAL DEVELOPMENT PROCESS AND THEIR PARTICIPANTS’ LOGIC FU ay a private fim Without a cultural plan By an individual — Creation of an association Tn which the founder ‘doesnot receive —- K With a cultural plan [iin order to enable the founder to earn a living FT cut with salaried workers ae | ‘And without salaried workers FFT whose objectives the | founder wants take over by a public institution FT Practising ‘an entrepreneurial form of management PUBLIC Creation of INITIATIVE [a structure FT interested in an entrepreneurial form of management [eaforclel management ie) Not interested in an entrepreneurial form of management 26 INTERNATIONAL JOURNAL OF ARTS MANAGEMENTgenesis of che structure and its means of devel- ‘opment (the logical axis of development) Indeed, differentiating the “traditional” orga- nization from the association, the public scructute, of the state-owned company, is not enough as far as cultural organizations are concerned. In particular, ic does not necessar- ily set them off one against the other. A second dimension is peesent; that of the development of these structures in time, Their logic of development will branch out according to the path the creator has chosen (the addition of a complementary training activity or of an activity, be it artistic or not) and che way he perceives its financing (the importance given to cared revenue). Having examined the differenc dimensions that make up the typology, we will now pre- sent each of the ten identified types in greater derail. Differentiation of Ten Types of Cultural Organizations According to Their Process of Institutional Development and the Logic of their Participants Ee, of organization is described fol- lowing the logic of the diagram; that is, according to che conditions of its creation and development. For a more convenient presen- tation, we have grouped these types together by distinguishing berween culeural organiza- tions created on the model of traditional com- panies, on the basis of a private initiative (§3.1), culeural organizations created like asso- cations on the basis of a private initiative (63.2) and, finally, cultural seeucrures created thanks to a public initiative (3.3). Among the 96 companies we interviewed, 78 arose from a private initiative (among which we found 23 of the traditional organization type and 55 of the association type) while 18 arose from a public initiative Cultural Organizations Created in the Form of “Traditional” Companies on the Basis of a Private Initiative Here, another branch in these development logics appears: the “traditional” cultural orga- VOLUME 2, NUMBER 1 © FALL 1999 nization may have been created by another private organization (type 1: 2 cases in our study) or by an individual (types 2 and 3: 21 cases) ‘Type 1 ~ Private Initiative: A Cultural Organization Created by a Private Firm ‘These organizations lie within the framework of a private group strategy. It can be a pub- lishing conglomerate, or a firm specializing in the development and use of new information media which are looking for investments in this field. For the publishing company, the objective is to strengthen a strategic position by using new informacion media. These com- panies were born recently; on average, they are 3 years old. Managers of such organizations usually hold a post-graduate degree and have been in charge of the company since its incep- tion. These companies employ approximately 20 people under open-ended contracts. These firms are young and have not yet balanced their budgets. They still encounter recruit- ment problems and have not yet settled in locally. sified know-how. Developing and implementing town services on behalf of local structures (purification and distribution of water, etc.) the G... group is now making in-roads in the construction industry and in the operation of cable-TV networks. In Nantes, one of its subsidiaries oper- ates the local network, Its strategy was designed on the basis of local and hational market studies. It offers cable-TV owners a subscription package that includes a dozen general or thematic TV channels, one of which i a strictly local channel. The manager is a young engineer from the Ecole Centrale, with a one-year training period in management (IAB), He started managing the Nantes subsidiary of the G... group after | a first experience as manager in charge of implementing the customer The infernational group, G..., benefits from long experience and diver- | survey department in a video film creation company, followed by two years in a film production company. This private company was created less than five years ago. Its budget amounts to several milion French | francs. Since i is stil young, fe derives its financial vesourees almost | exclusively fom the oroup itself, and does nat succeed in balancing is | accounts But this lies within the framework of a group strategy which | wants to minimize this deficit by comparing it with the stakes repre- sented by thelr presence on this new market. Only a handful of employ fees atthe time of the study, they number 20 people three years later: and despite the fact that Nantes isnot so fr from Pais, this company has trouble Finding skiled employees. Se 2‘Type 2 ~ Private Initiative: A Cultural Organization Created by an Individual Without a Cultural Plan ‘We arg referring, in this case, ro cultural orga nizations created by an individual. But they can belong to two types. These “traditional” companies do not necessarily have a culeural plan, and this will have an influence on their development. We have identified two types for which the development logic will be dif- ferent, depending on the presence (type 3) of absence (type 2) of a cultural plan. This dif- ference is revealed, on the one hand, by the importance of their turnover (about 34 mil- lion French feancs in 1988 for culcural organi- zations without a cultural plan, and 7 million French francs for companies with a plan), and, on the other hand, by the existence, ot lack of, volunteer (unpaid) artistic activity on the ‘manager's part. Other criteria can be consid- cred: the average level of education of managers in companies with a cultural plan is superior to chat of managers in the other category, with the former having the “baccalaureat” (A lev- el), and the lateer the BEPC (GCSE). The company with a cultural plan is older chan its counterpart and has never worked with volun- teers, whereas the other category usualy cals upon volunteer workers. Moreover, the percent age of earned revenue decreases from 100% to 97%, which indicates an evolution in the means of financing, once the notion of “cul- ture” appears in an economic structure. Finally, a last element permits us co disti guish them: the number of cultural or profes- sional stages the manager of an organization with a cultural plan has gone through is almost «wice as high as in the other category. For the type 2 category, we registered seven companies which did nor have a cultural plan ‘Among these, we find bookshops, advertising agencies and companies selling services ro cul- tural structures. For this kind of organization, the cultural field is no different from any other. And the manager's sole aim upon enter- ing this field is to make a profic. In our model (box 2), Eric could have developed his skills as an electrotechnician in any economic field, but his life took another direction. The absence of a cultural plan is obvious when we consider che company’s strategy: pursuit of rapid growth, turnover, ere. The only prob- lems mentioned are related to management. ey Eric is the young manager ofa company with 35 employees, which can solve any kindof technical problem in the entertainment Feld: scenery, Lighting, sound, et. His ‘craftsman-electrician’ style contrasts with his position as the manager of an already well-developed company and a Cultural field in which a fashionable image has a certain importance. However, his integration inthis area is complete, and his reputation, 2s regards lighting, i Firmly established. Ths ‘caftsman-elecirician’ style comes diecty from his father’ example, even if ric tried to choose his own way, Technology has been his only interest and passion since he | yas a teenager. With a high school diploma in electrotechnics, he went looking for work. Inthe classified ads, he found a position as technical. manager ofa smal theatre company called ‘Le Mado; in Lille, where he handled everything having to do with lights, but only received 25% of a normal salary. Having looked everywhere for other ways of earning a living, and after a certain amount of hardship, he eventually wound up | Gung peeanes wot freer compris, When the ado conpay | folded, he realized that cultural organizations other than thestrical | nes, and beyond that, structures organizing cultural event, were | interested in his work Through his conversations with many artistic | directors, hf became aware of the interest which they might have in dealing with a single company that would handle all their technical | needs. So he decided to create a cooperative production company, and with some colleagues, underwent a period of training in management. ‘tera year, the company required the help of many technicians in var- ious fields. After atime, it became a limited company ~ SCOP - with a capital of 300,000 French francs, turnover of 120 million French francs, and thirty fulltime workers. Its turnover comes entiely fom local Structures, arts centres or companies and artists. Increasingly, he has had to mest a wider range of customer needs, including the supply of costumes, the permanent technical fitting of cultural venues, or even scenographic studies But to keep the structure going in the wake of such rapid growth, he knows he will have to hire management and human resources specialists. eee ‘Type 3 — Private Initiati Organization Created by an Individual With a Cultural Plan ‘As we mentioned in the presentation of type 2, companies in this category differ from compa nies in the previous one by the presence of a cultural plan. Among the companies of this type (14 in our sample), we again find book- shops, but in this case they are bookshops that have pursued publishing activites, long with actual publishers, are galleries, film distribu- tion organizations, and video or disc producers. ‘Among the problems encountered, a common INTERNATIONAL JOURNAL OF ARTS MANAGEMENTconcern in this category and the previous one is that of management, although it seems to be more acute for organizations concerned mainly with culcure The horion of a cultural plan, which char- acterizes this type, is hard to define clearly. Let us just say thar one can speak of the existence cof a cultural plan from the moment the man- ager’s main strategy is not merely economic, but includes cultural concerns. In the case we selected here (box 3), a combination of factors is a play. The manager has inherited his mother’s passion for books. His professional path bespeaks the need to take part closely in the “production” of books, both as a book- seller and as a publisher-bookseller. He is also ateracted to technical books and interested in mountaineering. His personal object through this economic venture, is co fulfll more fundamental aspirations. This organiza- tional orientation, which allows him to satisfy more personal ambitions, is recognizable in the very structure of the organization: a rather low turnover compared with similar compa- nies without a cultural plan, the presence of subsidies, volunteer workers, etc. His career path is significant: a number of professional stages, involvement in many associational activities, a higher level of education, etc. clearly differentiate chis category from the pre- Cultural Organizations Created in the Form of Associations Based on a Private Initiative The other way ¢o create a cultural steucture on the basis of a private initiative is to adopt the status of an association. In our sample, 55 cul- tural organizations deliberately chose this association frame to stare with. However, these associations developed in 2 particular way, according to the logic selected. We differenti- ated three types: types 4, 5, and 6. Didier is now over fifty. Books are his life and professional ‘world. Not only does he manage a large bookstore in Chambéry, he also runs a publishing house. His family has been involved in banking for generations. His mother, a | passionate reader, has passed on to him her love of books. [After his A-levels in philosophy, he studied for two years in ‘a bookselling school, and, around the same time, discov- ‘ered rock-climbing in Fontainebleau. He worked in Paris for five years as a bookselle’s assistant in the bookstore, P..., which specializes in academic publications. He then became manager of the retail store for scientific publica- tions at 0... After an attempt at living abroad, he was offered, by the publishing house A..., the job of creating a | science and technology department in Chambery, which suited his taste for scientific and technical books, as well {as rock-climbing and skiing. He ran it for five years, then, after an abortive plan to work in Paris, he eventually chose, in the early seventies, to become permanently involved in working locally in Chambéry. He created and manages his bookstore "Sciences et Lettres”. His wife, a former French | iterature teacher, became head of the bookstore'slitera- ture department. He took part in the creation of the “Librairie et culture” association, which initiated the first French book fair, and became one of the trade-union offi- cials for booksellers in the Rhone-Alpes region. A few years later, the V... family appealed to him to buy ‘their company, which was filing for bankruptcy. He was won ‘over by the number of technical books they owned. He became president and main shareholder of the company. ‘The twenty-year-old publishing house, V,... publishes local works and schoot books, as well as technical books on, ‘mountaineering, topographical guide books on the massif, and maps. Didier has developed this area for the most part, combining his interest in books and mountaineering, He manages his publishing house independently, and is well aware of the presence of competitors. He is, first and fore- ‘most, a bookseller, remaining in contact with his customers and handling his own distribution network, and reviving the tradition of the bookseller-publisher Finally, not one to gamble on an enterprise, and in order to minimize costs, he finances his publishing activities by totaly re-investing his benefits before paying taxes. Asa limited company, with @ capital of 300,000 French francs, the V... publishing house employs six people, two of whom are part-time workers, It has a turnover of nine million French francs, exclusive of VAT, 98% of which js earned revenue. It has recentiy orga- nized, with financial assistance from the town of Chambéry, the first exhibition of technical mountaineering books, with the help of one person hired for the occasion and four volunteer workers. VOLUME 2, NUMBER 1 * FALL 1999“Type 4 — Private Initiative: Associations Created in Order to Enable the Founder Himself to Earn a Living ‘The aign of these associations is to ensure a principal source of revenue to those who initi- ated the plan, since such persons devote them- selves entirely to the artistic or cultural activity of the association. This objective is not always attained, but itis one shared by many organi- zations. ‘The association embodies, then, the ‘opportunity to develop an artistic or culeural plan and co move progressively into the cultural field, gaining recognition as one of its main members and reaching artistic maturity and renown, thereby allowing it co foresee its con- version into a real company with employees, with or wichour a change in its status, The pre- sent manager was, in most cases, the initiator of the plan, and the association has been working, for ewo years without salaried workers. The average annual turnover of these asso- ciations amounts to about 2.5 million French francs, with 569% of che budget coming from the companies’ earned revenue, With respect to their staff, such companies are characterized chiefly by their need to resort, in large part, to short, fixed-term contracts or to volunteer work. Employees with open-ended contracts are not numerous (10%). The individuals who create this kind of association often engage in different types of culeutal or artistic = or other types of — activities concurrently, jet as volunteers or salaried workers, pro- fessionals or amateurs. It is often their extra- cultural activity which provides them with a minimum revenue, whereas their teaching of artistic activities is usually done as a volunteer ‘worker: but here, volunteer work is nor neces- sarily synonymous with amateurism; it can also be synonymous with professionalism. Ie is hard to find a balance between artistic aspirations, which are not always well-paid, and non-rewarding jobs which provide a main source of income: itis a fragile balance, except ‘when che main source of income isin the area of culture, and allows one to make acceptable compromises. This is the case, for instance, for companies which choose a combination of training and creation. In these associations, we find essentially the creation of live cultural entertainment, independent local radio sta- tions and disc production. Our sample is composed of 22 structures of this kind. We 30 should note that chis category comprises orga~ nizations chat have both failed and succeeded in their development, ones ranging from an internationally famous theatre company, which possesses its own infrastructure, to a recently disbanded group of musicians. ‘Type 5 ~ Private Initiative: Associations in ‘Which the Founder Does Not Receive An Income, But Having Salaried Workers Here, in contrast to the previous category, the individuals who created these sructures do not draw their main source of revenue or employ- ‘ment from this activiey. volunteer work is the rule. That is what we could call a“non-salaried ‘wage process.” But, within this process, we had (o differentiate two types: some associations Born to a family of architects, Beatrice obtained a master’s degree ‘Modern Literature in Strasbourg. After an initial experience in a univer- sity theatre studio, she took part in training courses set up by profes- sional companies, later enrolling in an extension course and a bachelor’s degree in theatre in Paris. Throughout this period, she was in charge of fa children’s theatre course at a famous Parisian theatre, had several auditions, took part for a season in @ militant theatre group in the sub- turbs and received her first salary as an actress. Having no immediate | plan, she worked for a year as'a substitute French teacher in a subur- | han secondary School. She became involved in educational plans, she met the members of a children’s theatre company and set off on tour with them across the southern and eastern part of France. She became inter- ‘ested in directing theatre, attending a course on the subject in Marseilles, ‘where she settled for the Long term. She teaches a theatre course in a famous theatre in the town, which provides her with a regular salary, ‘and acts professionally in various. companies and occasionally in TV films. She met a theatre director who persuaded her to devote herself ‘to directing, After a first experience with actor friends of hers, she cre- ated an association and staged her frst street play. She went on to teach theatre in schools on the outskirts of Marseilles. The association. was active for two years, with ten part-time actors and a budget of 60,000 French francs. Finally, thanks to public subsidies, Béatrice attended 2 course in Pars on cultural association management, while an ‘engineer friend of hers managed the association without pay. Next came a new step for the association: the beginning of a joint production on an ambitious play in the arts centre of the town of F..., which provided | the association with steady income and jobs for six people, Beatrice then received her first income as a theatre director, though she is still involved in teaching theatre. Thus, the budget of the association now | ‘amounts to nearly 500,000 French francs, 60% of which is earned revenue. INTERNATIONAL JOURNAL OF ARTS MANAGEMENTwill never have salaried workers (see type 6, below), whereas the associations in this cate- gory do have some. This may seem paradoxi cal at firs glance. In fact, these are associations created by individuals who have a professional activity, often outside the culeural area, and who find means of expression in this area, as volunteer workers. They manage these associ- ations as would professionals, and succeed in transferring know-how from their main activ- ity. These associations become increasingly large and eventually need (0 hire salaried workers; but payment in wages is considered here as the means to ensure the proper func- tioning of the structure; they have secretaries, technicians, etc., who are hired on a tempo- rary basis. The annual budget amounts co about 750,000 French francs, nearly 65% of which comes from the associations’ earned revenue. The first salaried workers appear after four years. The five associations in our sample belonging to this category are mainly involved in festivals or in the management of entertain ment establishments; they have been in oper- arion for 10 years on average. ‘Type 6 — Private Initiative: Associations in ‘Which the Founder Does Not Receive Income, and Having No Salaried Workers As in the previous case, the first objective of the creators of these associations is not to become their employees. However, these seructutes (17 cases in our study) are different, because they have, as a rule, chosen to extend the principle of volunteer work to the whole association, some of them even taking a mili tant attitude toward the question. As a result, they do not have salaried employees. The asso- ciation’s budger is proof of ths stance: an aver- age of 60,000 French francs, 77% of which is earned revenue. The activities of these associa- tions are quite varied: they include art gal- leries, museums, publishing houses, but also film or music creation, and cultural activities in many artistic fields. On average, chese asso- ciations have been in existence for about 20 years and have serious problems keeping long- term members: the role played by the presi- dent is essential in their development. These structures are interested in sponsorship and marketing, and che main problems encoun- tered concern staff training and quality of the services provided. sce Born to a family of Breton fishermen, Michel studied in merchant marines school, then worked for a few years on supertankers. He then became a full-time | activity leader in the marine cooperative association, specializing in fishing: First of all with young French fishermen, then | in Afica, where he developed fishermen’ co-ops. This culture soon fascinated him and became his passion. Back in France, he began working with a new chain of travel agencies, in full expansion, then underwent @ period of training in man- agement and logistics, later becoming assistant to the manager in a 30-person | structure, During the same period, his taste for associative structures led him to take on new responsibilities in the Arts Centre of the small town where he lives. In the context of his work, he was asked to become partner in a local plan for an African Arts festival, which failed after a vyear. He decided to seize the opportunity, and resumed work on this project with the help of the arts centre, Thanks to the members of the board of directors and to a widespread network of acquaintances (carriers, accountant, etc.), he assembled ‘2 group of about ten volunteers. who ‘would run the festival. Financial backing from the town (subsides, permission to use the Arts Centre) and a loan consti- tuted the initial resources. After a few years, the festival increased in scale (plastic arts, then music and films, etc). The professionalism required of the man- ‘agers, confronted with an increasing num- | ber of tasks necessary to the smooth operation of the festival, and the specific nature of this activity ~ an intense period over a few days of the year - compelled them to surround themselves with salaried workers, for varying lengths of time, in order to cope with secretarial work, cer- | tain technical aspects, or reception during the festival. Resources coming from spon- sors and the association's earned revenue (admission fees) are the most important, representing more than 70% of the budget. VOLUME 2, NUMBER 1 * FALL 1999 31| The Amateur Film-Makes’ Assocation was bom in Paris in 1930, Flowing the example of pho- toctophets’ clubs, it began organizing meetings to discuss and develop this new technique: the | members produce amateur fils, and discuss them during showings. Plere has been a member of the film society from the early fifties. An at ducing short films since the age of twenty. He vid movie-goer and film-lover, he has been pro- | has often taken part in festivals or competitions crcartzed by the fim-scities networkin Hance, Inthe meantime, he has pursued studies and”) became a dentist, a profession he chose so as to be able to devote more time and money to his | passion. Known to have a strong personality and to be a smooth talker, Pierre was given the | Reponsiility of program planning on the association boar, a position he occupied for twenty | | Years Various events slowly added to his renown: his amateur film-making, his program-plan- | hing responsibilities, or his invitation to sit on the juries of festivals, The association became | own thanks to its lm-makes (ho garnered many medals, prizes, etc). In 1975, Pierre |. pecame president ofthe association, which had entered a dynamic period, with’ more than 16) young members, and the production of numerous fins. The association was even granted |. exceptional subssies fora large-scale event. Ten years later, the members had all but disap- peated (some of them becoming professionals or leaving the region), the meetings had become |e fequent, emus was waning te subset president cid not know how to cope with | change. Pere, now in his sbcties, was asked once more to become president, to give @ new Structure to the meetings and an accurate program, to envisage new projects with the advent | |. Gr vide, etc. The association had alyay functioned ona volunteer bathe member sub scriptions providing the main source of resources (currently 20,000 French francs) and enabling the rental of a movie theatre. It is a place where anybody can come to exchange ideas and learn, There is something init for everybody. They have no projects requiring an excessive num~ ber of volunteers, as this would rapidly exhaust their means and force them to face the prob- lem of salaries. i “Type 7 — Private Initiative: Associations ‘Whose Objectives the Founder Wants ‘Taken Over by a Public Institution ‘Thhs isthe third and final category of associa tion based on a private initiative: in these steuctures, the volunteer workers, having cre- ated and developed such scructures, wane the service offered by their structure to be recog nized as a public service and to be financed by the community. In this category, we grouped together mainly youth clubs and arts centres (MJO), music schools and libraries (12 case). This kind of structure, when itis financed by local authority, can have its status changed, for instance, into that of a state-owned struc~ ture, Wich an annual budget of abour 500,000 French francs, 47% of which comes from earned revenue, these structures exploit the whole range of work contracts: from the open-ended employment contract, to volun teet work, or to state employees on second ment. The people who assist in the emergence and development of these structures are already integrated within the cultural field, ‘and, though more rarely, in the area of the arts, We identified in such structures a major ‘rend towards socio-economic considerations, which comes about as a consequence of their ‘members facing problems of integration, or of their managers’ gradual familiarization wich actual entrepreneurial processes when rev- enues are scarce. Cultural Organizations Based on a Public Initiative ‘Among the structures studied, 18 belong to this category. This type of organization can assume one of three forms of juridical status: the state-owned company, the public struc ture, and the association. But itis nor this sta- tus which enables us to divide this group in terms of an entrepreneurial form of manage- ment. We had to resort to two other criteria: the firse was linked to the organization and what guided us was the proportion ofits earned revenue in relation to its overall budget. Those INTERNATIONAL JOURNAL OF ARTS MANAGEMENTMrs T... worked for 3 years with the French post office and telephone service, then stopped workigg in order to raise her children. Since 1960, she has lived with her husband, an indus~ try executive, in a small town near Montpellier, where she also works as a town councillor. | Being a book-lover, she was convinced that the town should offer the services of a municipal | By ht we ha een ply ed, Ae AEE T... decided to create | | a “Friends of the Library Association,” which lends books to the residents of the small town. || The association operates thanks to the generosity of volunteer workers and book donations. Two years later, there were more than 200 members, and the volunteers were snowed under with work, The town finaly got involved in the service by granting funds to the association for its equipment and adding to its collection of books. Mrs F..., a highly motivated volunteer, was offered training and attended evening classes to initiate her in the work of a librarian, subse quently becoming manageress of the association. The president, Mrs T..., reached her goal when the town offered Mrs F.. a new training period to enable her to become the actual librar- ian, and when it put up the money to pay for the library premises and collection. The asso- ciative structure was preserved because of its management flexibility. In 1980, Mrs F... became the library's first salaried employee and was given tenure as a part-time worker. In 1990, the library employed 18 part-time volunteer workers, three local-government officals, and had a budget of 450,000 French francs. The library staff now lends CDs and audiovisual equipment, and is contemplating the necessity of computerization, of new premises, and of telematics. Mrs F... tries to meet readers’ needs and to improve the quality of the services offered. public structures showing the lowest percent- age were taken to be the ones corresponding to the most public management method, and vice versa, The second criterion was related to the managers curriculum vitae (education, career path) and to his interest in the entre- preneurial method. Thus, three categories of structures can be differentiated according co the extent to which they include an entrepreneurial form of man- agement in their logic, or in their manager's logic. Thus, a frst category groups together the public structures thac choose an ensrepreneur- ial-type form of management (type 8), combin- ing the desire o gain structural auronomy and the pursuit of earned revenue, often through the diversification of their activities. The sec- ond (type 9) groups together structures which are interested in this form of management, but have never implemented it. And, finally, the third includes the structures with no interes in this entrepreneurial form of management. ‘Type 8 - Public Initiative: Public Structures Practising an Entrepreneurial Form of Management In this category, we find a dance academy, a youth club and arts centre (MJC), a regional VOLUME 2, NUMBER 1 © FALL 1999 association for the promotion of music (ADDIM), museums and a library. The aver- age annual budget amounts to approximately 2.5 million French francs, of which the struc- ‘ures’ earned revenue accounts for almost half (47%). The majority of the employment con- tracts are fixed-term contracts. Open-ended contracts represent only 30% of all contracts Some of these public structures work with the help of an association, in order to avail them- selves of the work of volunteers. This type of organization has been in existence for more than 25 years, while the current manager has been running the company for about ten years. The experience of these managers is differ- ent from that of managers in the other evo categories: on the one hand, they have a higher level of education (A-levels and an average of ‘wo years university, whereas the average level for the other managers in public structures is ‘Aclevels). On che other hand, they have all pursued of al still pursuing artistic activities, as volunteers, parallel wich their cultural pro- fessional acivity. The problems specific to this type of structure are linked to their start-up period, when the image of the company has to be defined. They have already undertaken mar- kee research, but, according to them, every- thing on the subject remains to be done. 33| an opéra-allet with which to enliven the place gradually took shape at the same time. In | Yo00s, the opéra-ballet of M... was created. For fifteen years, the troupe depended exclusively | on th opera hous, and appeared only on its stage. In 1985, atthe end ofa full carer, Eléna In the early sities, the town of M.. decided to renovate its opera house. The idea of having | | became the artistic director ofthe troupe. She is of Russian origin andi considered 2 bi name ‘in ballet, with intemational experience and recognition. She had been a ballet dancer, @ bal- let mistress, a teacher and an artistic director, and has produced several opéra-ballets. She set tled in France in 1980, where she worked for a time with the Ministry of Culture and as an artistic consultant for many European towns. The success ofthe ballet “Cinderela” on her frst arrival gave afresh boost to the troupe. Eléna then accompanied the whole troupe on a world | tour made possible thanks to important ministry subsidies, but also thanks to her acquaintance tour mate sl a pas manage, Tol tarsfome by ths or te Loupe | discovered new artistic ambitions. The M... audience was enthralled by the increasing quality of the ballets, which permitted the troupe to reopen negotiations with the town officials on the troupe's goals and the amount of its subsidies. However, the tours remain financed by the troupe itself, independent of the subsidies: having the opportunity to appear on international | stages constitutes 2 real challenge for the troupe each time. With 40 individuals, of which only 30% are under open-ended contracts, the association has a budget of 13 million French francs, | Tore of which is eared revenue. l nics SN east ‘Type 9 - Public Initiative: Public Structures Interested in an Entrepreneurial Form of ‘Management ‘An orchestra, a regional association for the promotion of music (ADDIM), an arts cencre and various museums belong to this category. ‘The average annual budget is three times greater than in the previous category: that is, 7 million French francs, but there is almost no cearned revenue: 596, or ten times less. In most ‘cases, employment contracts are open-ended (679). These organizations are, as in the pre- vious type, 25 years old; however, the man- agers have been working in their structures for 6 years (instead of 10, asin the previous case). Generally, these managers have attained their ‘Aclevels, and their careers include few volun- teer ot professional artistic activities. They ate somewhat interested in cultural marketing. Specific problems mentioned by these man- agers include staff management, training and recruitment. The daughter of an accountant for a small company, Elisabeth was born in 1948. During her secondary school years, she became an activity leader for younger children | and participated in editing the school newspaper. After her | Artevels, she began working as a teacher, first in an insti- tute of agricultural training, then in a school in Lorraine, where she developed a taste for helping young people dis- cover reading, She then settled in O., and was hired by the town library as a regular employee. Six years later, and after several training periods in tibrary management (in Paris, London, etc), she obtained her diploma as a librarian (CAFB). In 1984, she decided to create a reference library: she was appointed to prepare its opening, then manage it. The whole structure was intended to serve as a real arts u centre, with a library, an audiovisual department, an exhibi- tion space, and a lecture hall or theatre with a seating ‘capacity of 130. Elisabeth, who prefers to lead activities rather than simply manage a collection of books, fit in well {in this plan, even if she did not succeed in realizing a study of users’ needs. Tt is a structure with 20 full-time workers, and if we consider the numerous goals it set itself, the bud- {get of § million French francs is not sufficient. Thanks to careful program planning, the theatre generates some bud- get surpluses. Moreover, the financial participation of visi- tors to the exhibitions, the sale of a catalogue it publishes | with a local photographer and a printer allow it to have earned revenue (70% of the operating budget), which it uses for the organization of literacy campaigns. INTERNATIONAL JOURNAL OF ARTS MANAGEMENT‘Type 10 - Public Structures Not Interested in an Entrepreneurial Form of Management A library, 2 music school, an academy of drama and museums belong to this category, but chey‘are state-owned or public structures: swe do not find an associative status, in con- trast to the previous cases. The annual budget is similar to that of the previous category; that is, 6.5 million French francs, and the percent- age of earned revenue amounts to only 19%. Mose of the jobs (90%) are based on open- ended contracts. The particularity of these organizations is that they have been in exis- tence for much longer ~ ewice as long, in fact ~ than their equivalents (as if the “kinetic” energy of che structure was slowing down the entrepreneurial process), while the current ‘manager has been working in the structure for an average of seven years. The majority of the individuals we met had cheir A-levels, and, generally speaking, chose who engaged in any professional or amateur artistic activities ac the beginning of their career have totaly given them up. They are totally opposed to cultural ‘marketing, and the only specific problem they mention concems their premises and equipment. Having examined these various types in detail, we shall now turn our attention to the way in which this model meets sponsors’ demand, and analyze the possible relevance of this typology. Relevance of This Typology Primer contoon mare presented at this point. First, we presented 2 typol- ‘ogy of creation and development, which is an interface berween a private and public logic. ‘Among the exemplary cases advanced, the first = the private organization without a culeural plan and subsidiary of a big industrial group — belongs to a purely commercial logic; con- versely, the centh ~ a company not interested in an entrepreneurial approach ~ follows the management rules of public economy. The nine other examples are intermediate cases, which we clearly identified thanks to the use of other criteria. In response to the concerns of the sponsor, a management consultant for cul- tural organizations, itis therefore possible to conceive specific management rules for each of VOLUME 2, NUMBER 1 © FALL 1999 — ‘The Limoges Music School was created in the 19th century. In 1910, it obtained national school status. Then, in 1950, it became the Academy of Limoges, classed in the top category. Its manager, Bernard, comes from a family of primary schoolteachers in the region. After a first job | as manager of a municipal music school in the North of France, he | passed his National Director exam, became the director of the Vendée | Music School, and then returned to Limoges and his current position. Meanwhile, he teaches musical composition in various music schools, and gives organ concerts, The Academy numbers about 1.000 pupils, ‘and employs 60 people, including 46 musicians (98% of open-ended contracts). For Bernard, teaching is the primary goal of an academy, though he does take part in promotional campaigns. They do not sell products: the knowledge transmitted has no financial equivalent, The Academy's budget amounts to 1.5 million French francs, and resources | come exclusively from subsidies, 10% of which comes from the state. | Registration fees are only a token amount, for art and money must not | be mixed up. these types, according to their respective degree of involvemenc in a public or private logic. Secondly, cis typology takes the shape of a process. We clearly show the circumstances of the creation and the different steps in the development of each structure, as wel as some of the ways in which these link together. This is particularly relevant for organizations which have had a juridical associative structure from the start, and which follow very different log- ics and have different opportunities of devel- ‘opment. This improved comprehension of the differenc steps in the life of these associations may enable public authorities to form more adequate and accurate policies regarding sub- sidies Moreover, the question is one of inte- grating, in this study, the time frame spent for each of these different stages, which consticure learning periods for the agents Thialy, we wanted to underline che impor- tance of the combined activities of managers of cultural organizations in their social and professional careers (Lecoutre and Litvre, 1994), which must be taken into account as an essential component of the creation and development processes of cultural organiza- tions. Thus, for instance, i is amateur dancing which allows an individual ro one day earn enough to finally become a professional and to earn his living from his art. And this becomes possible even though the individual's 6first job was totally different from his artistic activity. Another example is provided in the story of the culeural organization that springs from ghe amateur activity of an individual. This acciviey will progressively improve, until ic reaches a technically professional musical level, but without ceasing to be entirely vol- unter work: a meeting with other musicians will enable him or her to create a band that will perform regularly in concert and receive its first fees. The following year, an association ‘can be cteated; two years later, two persons can become salaried workers thanks to this artistic activity; and at last, the following year, the town council will provide the band with premises, juridically making it a limited com- pany. If, in some rare instances, certain paths are, however, rather straightforward, most of them are, asa rule, quite complex Fourth and lastly, we showed that a balance is hard co strike between, on the one hand, artistic aspirations ~ which are not always lucrative = and, on the other hand, jobs that, while not really rewarding, provide a mini- mum income. This equilibrium is often unsta- ble, except when the main source of income comes from the cultural field, and thus allows acceptable compromises. This is, for example, the case in organizations which associate a training activity with an artistic passion, This type of compromise seems to work particularly well for structures in the area of live shows. The results of these last two points may seem contradictory. Indeed, on the one hand, swe describe the variety and the illogical nature of the career paths of managers of cultural organizations. And, on che other hand, we define organizational standards, which make performance possible, privileging certain forms over others. We have, then, two results jin our research, which are important as regards their political consequences; the path of the cultural organization is complex and rarely logical, a fact we must accept as such. The chaotic path implies that there is much trial and error, many successes and failures, and that everybody has to learn. In the mean- time, itis possible to spot specific situations in welbidentified areas, and. organizational. methods which can favour the durability of the struc- ture. A cultural policy must, at the same time, favour a variety of paths, admit failures, avoid neglecting che necessary periods of apprentice- 36 ship, and also direct the agents towards viable organization types. Conclusion tur work consticutes one step in the investigation of a complex field (Unu- date, 1986): the process of creation and devel- opment of cultural organizations. Ic allowed for a significant advance: we created a typol- ‘ogy atthe interface of public and private logic. We took new dimensions inco account: the process itself, che time required, and the story of che life of seructures. We brought to the fore the importance of related activities in the ‘managers’ social and professional career paths. However, it does not totally solve the prob- lems mentioned initially, which should be considered the starting point for further research. For instance, the question concern- ing the comparative performance of organiza- tions according to cheir chosen juridical frame and their cultural and/or artistic activities. Finally, from a methodological point of view, ic would be possible to pursue this study (Morin, 1990) on the complexity of the cul- tural field by explicidly adopting a complexity method (Lemoigne, 1989). The last point of our conclusion is the possible adaptation of ‘our work to an Anglo-Saxon context, where such a public logic is not as developed as in France, We have suggesed a method to desaibe this hybridization between 2 public logic and a private logic that is viable in a French context. ‘The Anglo-Saxon context is different, and if we wanted to study this context, we would have to take into account the specific combi- nation of the logics, and not only the logics themselves. This typology is a means of inves- tigating this Anglo-Saxon hybridization, but certainly not a way to describe ic. Ic is possible to study the Anglo-Saxon cultural field with this tool, but new categories should be cre- ated, while others should be suppressed. So, only the cheoretical basis is easy to transpose; that is, the careful study of the origins of the structure, of the developmental logic, in rela- tion to the proportion of the company’s own funds used co run the structure, along with the combination of the artistic, culeural, financial, volunteer and entrepreneurial logics. INTERNATIONAL JOURNAL OF ARTS MANAGEMENTNotes 1, Bocase ofthe song empiil ealiy ofthese conse tions, we can wonder if hey ar “ideal pen” a1 Weber ells them. According he, the “idea ype” permits one wine Sy che eager of a realing a eaiactony invention at repads ie eral coherence, and strongly elated wo well tsblihed theoceeal positions is sim ise emble us to trdestand a phenomenon, while knowing thatthe ype men- tioned does nor exis empizaly. The constructions we man- gel © daboate, cater constitute arhesyper of empl ‘elite, examples which maybe wed dels. More pe ny we alle mode wih an examplaryamenin based on empirical face ower, here ae ot real cates, contrary €0 Erchespes, tha i releases which cn be wed as model, 22 This is also relevant for asociarions tha re ouside of the cola i References Bango, Pl, and ©. Moir, “Opém de Quatsous" Economie et Culere, Val. Il, La Documentation Frans, 1986. Basson A. and Y. Evrard, Poreraits domomigues dele ‘leare, La Documentation Frans, 1987. Cardona, J and F Rouet, “Comment structurer le champ culture" in Ezonomie er Calter, Aces du Colloque d’Avignon 1986, La Documentation Frangise, Vol. I 1986, Lecoutre M, and B Lieve, "Technique didendifi- cation des aciviésenchevérées dans les parcours socioprofesionnels d'entepreneuts cultures,” in Lanalye longitudinale du marché du travail Journtes tee di Cireg et de 1: Cnr Asc, Toulowe 7-8 mars 1994, M. Oureau, and P Werquin (eds), Céreq, Document n° 99, Séminaines seis, September 1994, p. 97-115 Lecoutre M,, and B. Lieve, “Création et dévelop- pement denirepriscs culeurclles: vers une modé- tsation de procssus” in Pracedings of the 24 International Confrence on Arts and Cultural ‘Management, June 23-25, 1993, Pass: Groupe HEC, 25 p. Lemoigne, JL, La modélsation des gstdmes comple, Dunod, Coll. AFCET Systemes, 1989. Lieve, By Anabse di proces de eration dactvn ‘Clermont-Fetrand: A2RT, 1986. Lew, P, and M. Lezoute, Création t développement ces entreprises culewel, Clermont-errand: Resel Edition, 1989. Moria, E. Inraduction 3 ls pene complex, ESE allection Communication et complexié, 1990, 158 p. Pasquier, » "image starsique de Vartisee,” in Ezo- romie et Culture, Actes du Colloque Avignon 1986, La Documentation Francaise, Vol. 1, 1986, UNU - IDATE, Université des Nations Unies, ‘Science ex pratique de la complevtt, Paris: La Docu ‘mentation Frangaise, 1986. Walser, B., Sutdmes er models, Paris: Seuil, 1977. Weber, M., Est sur la shéorie de le science, Paris: Plon, 1965 (1904). é VOLUME 2, NUMBER 1 © FALL 1999 Fo[ ! | oo ‘OF CULTURAL ORGANIZATION PERFORMANCE Measuring the Performance of Cultural Organizations: A Model Ian Gilhespy Introduction his paper is one of the outcomes of research project which was designed to investigate whether methods of performance measurement are appropriate and sensitive mechanisms for evaluating the per- formance of arts and cultural organizations. “The principal aim of this paper isto present a model of a performance measurement sys- tem for application to and by cultural organi- zations. The contention of the paper is that the objectives of cultural organizations may be rendered down into a number of strategic options that may be pursued in relation to one another, and, further, that the achievement of these strategic options may be measured with a degree of sensitivity. The data were generated from a semi- structured interview schedule. A total of 27 interviews were completed, all with key pro- fessionals in the management of arts organiza- tions in the South of England. The interviews were conducted with the managers of cultural facilities. (characterized as arts centres by Southern Arts, one of the regional arts boards in England) that run programs including dif- ferent types of cultural performance, display and education. Three of the facilities were the ‘homes’ of producing companies, although two of these companies had their own man- agement. The data were interrogated using a 38 Grounded Theory framework (Glaser and Strauss, 1967), in which theory “evolves during, actual research” (Strauss and Corbin, 1994, p. 273). The investigation included a livera- ture review which drew upon materials from the disciplines of economics, politics and ‘management theory. “The interviews were succeeded by quantita- tive research into the development and appli- cation of specific measures of performance by cultural organizations. This research will be reported in another paper (Gilhespy, forth- coming) Context ane (1993) has written that the rapid expansion of the public sector in the 1960s and 1970s implied a basic change in the relationship between the public and private spheres. This rapid expansion meant that “a considerable portion of the resources of soci- ety is mobilized by national or local govern- ments and allocated by these bodies to various programs, thus reducing the scope for mar- kets” (Lane, 1993, p. 190). Following this period, the 1980s and 1990s have been char- acterized by a resurgence of economic liberal- ism in Britain and elsewhere in the West, with a strong political commitment to markets and competitive individualism (Hutton, 1995). Tan Githespy hasbeen tec- turing and researching inthe areas of lesure and tourism management, the sociology of esure and cultural statis for ten yar INTERNATIONAL JOURNAL OF ARTS MANAGEMENT“This period has seen the re-examination of some of the functions of the state (Knox eral, 1992). This re-examination is nor of the rela- tive merits of a planned economy contra a market economy but, first, of how to strike a balance between the public and private see- tors, or as Lane (1993, p. 190) puts it, “what types of goods and services are to be allocated by means of the budget and through mar- kets... and are there possibilities for mixing public and private modes of interaction?” ‘Second, this re-examination concerns the eval- uation of public sector programs. Ic is the lat- ter element of this re-examination which is the ‘main focus of this paper. ‘This re-examination led to government policy aimed at improving methods of accountability in public expenditure (H. M. ‘Treasury, 1983). The basic elements of these methods were that the objectives of any activ- ity which used public money should be iden- tified and defined, and that appropriate means should be developed by which the achieve- ment of these objectives could be measured. ‘This type of scrutiny is known as performance ‘The reason put forward for monitoring or ‘measuring the performance of an organization which receives public money is to provide information about whether the organization is achieving what it is supposed to achieve (H.M. Treasury, 1983). To this end, it became government policy that monitoring systems (ie. sets of performance measures) should be developed that are appropriate for evaluating the achievement of an organization's objec- ves (Audit Commission, 1986). Monitoring, therefore, was developed as a process which provided data with which such evaluation could be made. The output of the monitoring processes, as developed in the early 1980s (Carter, 1991), was an analysis of the success of the organization in the fulfillment of its objectives. Importantly, in the carly 1980s, “objectives were to be defined by the providers rather than the consumers, a point I shall dis- cuss later in the paper. In Britain, with the influence of the National Audic Commission and the Chartered Institute of Public Finance and Accountability (C.LPEA), the triumvirate of cconomy, efficiency and effectiveness of ser- vice — known as the Three ‘E's — have come to be regarded as the fundamentals of monitor- ing (Jackson and Palmer, 1988). These terms | are significant to this paper and the meanings they entertain require some elucidation. Efficiency, broadly, has wo interrelated ‘uses in this paper. The first use of the term efficiency is a technical one drawn from the Tierature on performance measurement and considers the best possible relation: between inputs and outputs (Gratton and Taylor, 1992). This use of the term stares that efficiency is ourput divided by resources con- sumed or, alternatively, that efficiency is a measure of unit cost — the cost of inputs divided by the ourput (lackson and Palmer, 1988). The second of these uses has been neatly summarized by Towse as follows: “The social efficiency case for intervention in the market is basically chat free market forces can- hot work to provide the socially optimum out- come” (1993, p. 3). Social efficiency, therefore, relates to what is socially . ‘The second term is effectiveness. The term effectiveness also has a technical meaning in the literature on performance measurement (ackson and Palmer, 1988). Effectiveness is defined as how far the ourput achieves objec- EUS UTTas) The principal aim of this paper is to present a model of a performance measurement system for application to and by arts and cultural organizations. The contention developed is that it is possible to render down the var- fous and multiple objectives of arts and cultural organizations into a relatively small number of options. These ‘options are clarified and presented in the form of a matrix. It is argued that the matrix provides a series of strategic options for arts managers that may be pursued in relation to one anther. This process is presented in the form of a model. It s further argued that the achievement of these strategic options may be measured with a degree of sensitivity. Paani) ‘Arts, management, performance, indicators, evaluation, culture VOLUME 2, NUMBER 1 © FALL 1999