Organizational Management JFT2 Task 2:
Task A.1. Write an action plan for Anne Ewers by analyzing the financial and leadership strengths and weaknesses of the Utah Symphony before the merger.
Utah Symphony Financial Strengths
1. The symphony shows a strong diversity of revenue sources coming from performances, grants, contributions, investment income, guild income and box office fees and rentals. They raised over $12,000,000 in the 2000-2001 season.
2. The symphony operates with a healthy surplus of $116,308 for the 2000-2001 year.
3. The symphony has significant performance revenues and contribution revenues of over $8 million in 2000-20001 which are performance and community support related. Other income that could less reliable like grants, investment income, guild income and rental income make up about $4,000,000 of the revenue source mix.
4. The symphony is anticipating 11% increase in total revenue based on 2001-2002 financial projection based on raising more contributions and raising ticket sales by 1%.
Utah Symphony Financial Weaknesses
1. Although the symphony is forecasting 11% revenue increase for the next season, they are also forecasting an overall 12% expense increase. This will cause a negative profit trend.
2. Based on the symphony forecast the surplus goes down from $116,308 in 2000-2001 to a forecasted $2,042 in 2001-2002. Even though they are a non- profit organization they should avoid deficits and negative trends.
3. The symphony’s overall expenses are forecasted to increase by 2.5%
4. There are declines in public subsidies, especially at the state level, as well as decreases in the endowment investment income, which threatened the financial viability of many orchestras.
5. State and local tax revenues used subsidize orchestras had also stagnated.
6. Because of agreements with the union salaries are set to increase for the symphony by 12.9% from 2002 to 2003 and by 6.8% from 2003 to 2004.
Utah Symphony Leadership Strengths
1. Keith Lockhart has experience working with and bargaining with union employees.
2. Keith Lockhart is a very talented director it connected more than 600 concerts and created 50 television shows.
3. The union employees place much trust in Keith Lockhart to protect their interests.
Utah Symphony Leadership Weaknesses
1. Although Keith Lockhart is a talented symphony leader he lacks business leadership experience.
Task A.1.a. How will Anne Ewers compensate for the financial and leadership weaknesses of the Utah Symphony?
Anne has several strengths that can compensate for the financial and leadership weaknesses in the symphony. She is a strong business leader as well as a talented artistic leader. She was able to pay off a $450,000 debt she inherited from her former general director at the Boston Lyric Opera. She grew the budget of Utah Opera from 1.5 million to 5 million. She is very good at fund raising and getting donations from outside of the state. Where Keith is strong at the artist leadership...