Rjft Task

12 December 2017

The opera has a projected P{2001 operating surplus of $473,002, which is 10% of their total expenses. Comparatively, the symphony has a 0.

01% surplus compared to expenses (Delano, 2005) Leadership Strengths C] Keith Lockhart is an experienced music director that has led the Boston Pops Orchestra, Cincinnati Pops and Cincinnati Orchestra (Group level). Keith Lockhart has also been a guest conduct of the Chicago, Cleveland, Dallas, Los Angles, Montreal, New York.Philadelphia, Singapore, and Toronto orchestras. Lockhart had recently led the Utah Symphony in the 2002 Winter Olympic Games and led the Boston Pops in the prename of Super Bowl XVII (Delano, 2005) 0 Keith Lockhart has past experience creating television shows on PBS (Delano, 2005) C] Scott Parker had spent his career prior to the symphony overseeing hospital mergers.This experience could be beneficial for this particular merger (Delano, 2005) 0 The muscular leadership (bargaining unit) understands that the symphony needs effective fund-raising, a budget strategy that supports a 52-week schedule, a mutually-agreed upon collective bargaining agreement, and an organizational structure that protects and enhances artistic excellence (Delano, 2005) Leadership Weaknesses Vacant CEO position that was responsible for leading the symphony as responsibilities that will need to be taken on by others (including potentially Anne herself) (Delano, 2005) 0 Key leadership positions (Keith Lockhart, Ms.Bravely) are skeptical of a merger being successful and are concerned that It would tarnish the image of the symphony (Delano, 2005) CLC Keith Lockhart is someone who needs to be in control of a situation, this could be a problem if he reports to Anne, who will need to make some changes in order to turn around a symphony that is on the verge off deficit rather than a surplus. He is adamant that the length of the season and the number of players not be reduced, so o the musicians to make tough decisions; as the musicians look to Keith to protect their interests.

Symphony board and management have had issues getting along Ninth the musicians in the past. Specifically when the board reopened the collective bargaining agreement to lower salaries. It is obvious that the musician’s leadership Mould be extra skeptical of any changes that would take place that might negatively Impact the symphony (Delano, 2005) AY a: Steps for Utah Symphony The first and most prevalent action for the symphony is around the decrease in surplus funds heading into FYI 2001. While income is increasing 1%, it is not keeping up with the increase in the expenses.There are several actions that Anne will need to take in order to reverse a continuing decrease in surplus. 1 . An increase in performance revenues might be due to the increase in the number of performances; however, the revenue from those increased performances is not keeping up with the increase in salaries to perform those extra nights.

Anne needs to look at why those performances are projected to have lower revenue. For example, would a location change with the same performance increase revenue.If the symphony is playing the same piece for two nights, would it be possible to play two of the five nights in different locations, such as Denver, CO, or San Francisco, CA? 2. Another action that Anne could take on this is to open back up the collective bargaining agreement and try to reduce the salary increases at the rate they are. 3. A third action would be to task a team representing the symphony on how to increase attendance at the symphony. For example, different promotions each night might bring in an audience that would not normally attend.

4.A survey could be sent out to he public to determine the customer satisfaction of the performances. Would the audience be willing to come back to see another performance? Why did the audience decide to come to the symphony performance to begin with? What was their perception of the ticket pricing? 5. Ann.’s marketing group could run a “last second” promotional campaign for reduce ticket prices a week prior to the performances. These reduced pricing could be tailored towards college or high school students, businesses for entertainment purposes, or even match-making web-sites as a last minute dating idea. .

Anne will need to look at the total organizational structure of the combined entities. It is highly likely that there will be a number duplicate positions that could be cut or changed. It is expected that at least $kick in salaries amongst the combined staff of the symphony and the opera could be cut. 7. Lastly, Anne could cut down on the number of performances to reduce the expenses (if the contract allows for that). From a leadership perspective, the main weaknesses are a ‘scant CEO position, which makes coverage for the responsibilities of that position difficult, especially in a time of a merger.Secondly, key members such as Keith Lockhart and Ms.

Bravely are skeptical and might be unwilling to support a merger. The following actions are recommended for Anne to take in order to alleviate the concern of these leadership Insaneness. 1 . Anne will need to look at the total organizational structure of the combined entities. It is highly likely that there will be a number of duplicate positions position (potentially added to the position of Leslie Peterson from the opera).There Nil also be duplicate positions of director of finance, director of marketing, director of developments, artistic teams and so forth. A merger would absolutely present duplicate position that will need to be cut or reorganized.

2. It will be critical for Anne to layout the groundwork for the merger with defined goals, and cascade those goals down to the opera and symphony so that all parties are aligned. The opera and symphony would each determine their own sets of goals that would support Ann.’s goals on the merger.Of course Anne would need to approve each group’s goals, but by having each group create their own goals, buying to the merger is much easier. 3. Anne also will need to start a cross-functional team, made up of opera staff and homophony staff that would work together on the details of the merger, such as organizational structure and needed staffing, upcoming productions to ensure that the merger is not interfering, and the team could be an ear for Anne to hear any issues or successes that are happening in each of the segments.

. Anne will need to Nor with Keith to help drive fundraising ideas and projects to increase the fundraising to keep the symphony in a healthy position. Keith knows that Anne was successful in increasing the opera annual budget from $1. 5 million to $5 million (Grittier, 2010). While Keith is not excited about a potential structure that Mould have him report to Anne, his bigger concern must be the overall success and financial strength of the symphony. 5. Anne must gain the trust and support of Ms.

Bravely in order to better work with the symphony and the community that support the symphony. If the symphony and community know that Ms. Bravely does not support the merger, then Anne will have a difficult time implementing a difficult merger. 6. An inspirational appeal is a tactic that Anne could use to build a merger with Keith Lockhart. Both Keith and Anne want the same things, to have successful artistic expression to their communities. Both Keith and Anne offer strengths that a merger will allow, and a merger might be the only way that the symphony will survive.

7.In order to appease the personality of Keith Lockhart, it is recommended that Keith directly report to the board, but with a dotted line reporting relationship to Anne. Anne and Keith need to be aligned with the goals and objectives of the merger and ensure that their shared goals are aligned with the strategic direction of the merged entities. With Keith Lockhart directly reporting to the board, his artistic reputation is not sacrificed and he would be willing to work Ninth Anne better. A dotted line structure through Anne would be for the benefit of alignment of goals related with the merger, expenses, revenues, and performances.Q: Utah Opera Strengths and Weaknesses Financial Strengths ere opera has a projected PAYOFF operating surplus of $473,002, which is 10% of their total expenses. Comparatively, the symphony has a 0.

01% surplus compared to expenses (Delano, 2005) ere opera contributions is projected to increase from PAYOFF ($2. 190 million) to ($2. 844 million). The PAYOFF contribution represents 56% of the total revenue for the opera. The PAYOFF contribution was 46% of the total revenue, so the opera’s efforts to make up for a declining performance revenue and government grant were achieved greatly with a much higher contribution.In comparison, the symphony has 37% contribution compared with its total revenue in PAYOFF (Delano, 2005) Financial Weaknesses 0 Performance revenues are only 14% of the total revenue and contribution, as compared to 33% of the symphonies performance revenue (Delano, 2005) 0 The opera has an income of $365,999 projected for the rental of its props to other opera companies; however, the expenses related with the opera renting props ND such is $474,672. Compared with a costume inventory valued at $4.

Million, the rental income seems abnormally low (Delano, 2005) 0 The management and general expenses for the opera represent 11% of the revenue and contributions generated. Comparatively, the symphonies management and general expenses represent only 5% of its revenue and contribution (Delano, 2005) Leadership Strengths 0 Anne Ewers has a strong reputation among both the opera and symphony committees as being a good leader (Delano, 2005) Anne Ewers is a proven leader in the operatic business, with retiring a debt of $kickEn she served as general director of the Boston Lyric Opera (Delano, 2005) Anne Ewers is proven at fund-raising, growing the Utah Opera budget from $1. Million annually to over $Million (Delano, 2005) Anne Ewers has good intuition and seems to understand the difficulty of merging artistic entities that seem to have a totally different culture. Leadership Weaknesses 0 Anne Ewers has never led a symphony prior to the opportunity to be the CEO of both groups. Anne Ewers has a reputation of being autocratic, which seems to be proven with her reluctance to have Keith Lockhart port directly to the board so that she is not under minded when making tough decisions. AAA: Steps for Utah Opera Financially, the opera is in a better position than the symphony for long-term success. However, in comparing the two, there are some actions that the opera could take in order to share the synergies of a merger.

1.Anne needs to have the directors of finance, marketing and ticket services from both entities to get together and determine of the opera ticket prices are aligned with prices need to go down (which could drive up revenue with a much higher increase in sales). . The renting of equipment is upside down for the opera. The director of production for the opera needs to analyze the rental charges to others that rent from the Utah Opera, and the rental charges for the Utah Opera to rent other equipment or costumes.Additionally, another goal would be to take an inventory of all equipment and ensure that equipment is not being rented that either the opera has inventory Of, or existing inventory would satisfy the need. 3.

Anne will need to look at the total organizational structure of the combined entities. It is highly likely that there will be a umber of duplicate positions that could be cut or changed. Duplicate positions of director of finance, director of marketing, director of developments, artistic teams and so forth should be obvious once the structure is defined.A merger would absolutely present duplicate position that will need to be cut or reorganized, which will lower the management cost ratio that is higher on the opera side than on the symphony side. Between Ann.’s lack of experience running a symphony and her reputation for being autocratic, Ann will need to take the following actions. 1.

In order to appease he personality of Keith Lockhart, it is recommended that Keith directly report to the board, but with a dotted line reporting relationship to Anne.Anne and Keith need to be aligned with the goals and objectives of the merger and ensure that their shared goals are aligned with the strategic direction of the merged entities. With Keith Lockhart directly reporting to the board, his artistic reputation is not sacrificed and he would be willing to work with Anne better. A dotted line structure through Anne Mould be for the benefit of alignment of goals related with the merger, expenses, revenues, and performances.Having Keith reporting directly to the board sends a signal to the symphony that Anne understands the significance of Kith’s contribution, and that her goal in the merger is not to be an autocratic “my Nay or the highway’ mentality. 2. Anne also will need to start a cross-functional team, made up of opera staff and symphony staff that would work together on the details of the merger, such as organizational structure and needed staffing, upcoming productions to ensure that the merger is not interfering, and the team could be an ear for Anne to hear any issues or successes that are happening in each of the segments.

. It will be critical for Anne to layout the groundwork for the merger with defined goals, and cascade those goals down to the opera and symphony so that all parties are aligned. The opera and symphony would each determine their own sets of goals that would support Ann.’s goals on the merger. Of course Anne would need to approve each group’s goals, but by having each group create their own goals, buying to the merger is much easier. AY: Scorecard Aspects Both the symphony and opera are focused on increasing their financial reserves or being more popular.This ells me that they both are driven to succeed long term.

Interestingly, both entities Ant to increase fundraising as a critical factor to being financially stable. From a customer-centric standpoint, the two entities are quite different. The symphony goal IS to meet expectations of being world-class performers through hiring of top talent. Being regionally and nationally acclaimed (rather than world-class like the symphony). The opera will focus on sold-out or near sold-out performances as their measure to achieve the goal as compared to the symphony which will use patron surveys for feedback.The two measures are distinctly different, with the sold-out performances being a direct representation of their regional success and also contributing to their financial goals. Internally, both the symphony and opera have similar goals, which is to be more financially stable.

ere opera will do this through negotiations with selected performers, whereas the symphony must renegotiate their contract as their critical success factor. The symphonies goals are an effort to control expenses due to fundraising gaps but the opera’s is more for improved financial stability.It is evident in the internal process Laos that the symphony is not a secure in the finances as the opera. As a measure, the opera will give their performers reviews, which is different than the symphony Which doesn’t have a measure rating their musicians). On the learning and growth part of the balanced scorecard, the opera and symphony are also quite different. The symphony is focused on variety of performances to attract younger and varied audience. The symphony will measure this through ticket sales and a returning audience.

The opera however isn’t looking for variety, but the number of performances increasing to five per year. The critical success factor would be to have increased endowment and ticket sales and will be measured by ticket sale revenue to be able to cover the capital needs of an increased number of shows. The symphony addresses the unfavorable profitability trend through their financial, internal process, and learning and growth sections of their balanced scorecard. The symphony is also addressing the increase in expenses through their internal process strategic goal. He symphony strategic goal for learning and growth does call for a variety of symphonies, but it does not call out Keith Lockhart experience in television as a attention means for that variety. The symphony does address the needed improvement in fund-raising through the financial strategic goal. While a critical success factor for the symphony in the internal process is to renegotiate contracts, it isn’t addressing the distrust that the musicians have for the board of the symphony.

There might need to be a metric or a goal for gain sharing tied into the salaries of the musicians in order for all parties to be aligned to be more profitable.The opera has addressed their financial stability strength through their financial, customer, internal process, and learning and growth strategic goals. By having all four strategic goals aligned to their financial, all metrics are aligned to their profitability. Having a strategic goal in the learning and growth to cover their extra capital for the increased number of shows is aligned to a weakness of being negative in rentals. While their internal process is aimed at getting the most out of top performers for the money, it does not address a weakness of management overhead being 11% of their revenue as compared to the symphonies of 5%.There is also not a strategic goal for addressing Anne Ewers autocratic, which may affect the moral of the opera in time. B: Merged Company Balanced Scorecard Combined for symphony and opera performances.

The business model is to be financially stable in order to continue excellence utilizing top talent that is part of our organization. Financial 0 0 0 Strategic Goal: Integrate the business processes of the two companies Critical Success Factor: Identify best practices of the opera and symphony Measure: Increasing fundraising realized Customer 1 .Strategic Goal: Maintain audience base for both the Utah Opera and the Utah Symphony. 2. Critical Success Factor: High quality performances in a variety of littorals and locations 3. Measure: Attendances rates for performances above 85% to capacity of building where performances are located. Internal Process 0 0 Strategic Goal: Reduce overall expenses as a percentage to profit Critical Success Factor: Maintain top talent through merger while eliminating / reorganizing duplicate positions.

0 Measure: Expense as a percentage of profit should be decreasing.Learning and Growth 0 Strategic Goal: Identify and pursue synergistic opportunities between the two companies. 0 Critical Success Factor: Cooperation in partnership twine the newly merged management and performing employees 0 Measure: Improving profitability with improved ticket sales. C: Merged Company Strengths and Weaknesses Financial Strengths: The organization IS projecting increased fund-raising, so the integration of the business processes strategic goal will should show a positive trend in the next fiscal year.Financial Weaknesses: The overall company’s profitability is decreasing in PAYOFF , so it will be critical to identify the synergies of the two organizations quickly in the upcoming fiscal year. Customer Strengths: The organization is aligned to maintain its audience base and improve ticket sales. With that focus, the customer should see performances that are equal to or better than the performances prior to the merger.

Customer Weaknesses: With the strategic goal of reducing overall expenses, the customer might see less in the form of the size of the symphony or in the quality of the rentals for the opera.This will need to be balanced with the quality of the show, as to not hurt the strategic objective of maintaining the audience base. Internal Process Strengths: With a strategic goal of pursuing synergistic opportunities, the eely formed company should be positioned to be more efficient in its fund-raising, promotion, training and other areas. Employees should see a more focused company that is sharing resources for the betterment of the company. Internal Process Insaneness: Elimination of positions is inevitable with the strategic goal of reducing overall expenses.This could affect moral and the ability to retain key employees as they could be worried about their own future. Anne Ewers will need to be quick to identify the key talent so that early communication is done prior to the worry of these employees.

Learning and Growth Strengths: The company should be in a more solid financial position after the merger, which will make expansion for the number of n fundraising will improve the symphonies abilities to achieve a 52-week schedule, Inch was important to the musicians.Learning and Growth Weaknesses: The merging of the two cultures will be difficult and will take time for the two parties to get to know each other. If Anne can’t merge the cultures quickly, the sharing of synergies between the two companies will be slowed, which will not suppress for improving ticket sales, and ultimately profit. D: Issues Finance: There could be a risk of contributions decreasing from individual, corporations, or foundations in the near term, especially if the confidence in the giving party is frustrated with the merger or lacks the confidence that the merger will be successful.Human Resources: Either or both the support or the performers could become frustrated with the merger and quit, or strike via the collective bargaining unit. Customer Satisfaction: Customers are going to demand that their investment in ticket for a performance is worth the price of admission. If performances are not as DOD or better than prior to the merger, then word will spread quickly and the public perception will severely decrease ticket sales and put the merger in real Jeopardy of surviving financially.

Del: Mitigating Actions Anne must convince the newly formed company that with no change, survival will not happen. Anne needs all employees to embrace the needed change for the merger to be successful and for the symphony and the opera to have a solid future. Anne must unfreeze (Grittier, 2010) the newly combined attitudes that they can survive on their own. The combined company must Ely on each other in order to survive, by sharing ideas and strengths and applying those towards the improvements needed to get the company stable.Once this sense of urgency is established, then Anne can form a cross-functional team to help with the merging efforts; such as communication of changes, inputs to the scorecard, sharing of ideas and a sense of collaboration between the two companies. When Anne and her cross-functional team have the merged plan worked out, this must be communicated to the appropriate parties. The new company must understand the level of change such as the scorecard, the organizational structure, and the new policies based upon the synergies of the merger.

Finally, Anne will need to refreeze (Grittier, 2010) the change to establish it as the new company culture. Newly formed cross-functional teams will be formed to address different areas of the scorecard, gain-sharing can be introduced to give employees empowerment and rewards for hitting goals and to ensure alignment to the scorecard. E: Sources Delano, Thomas and Eager, David (2005). Utah Symphony and Utah Opera: A Merger Proposal. Harvard Business School. Grittier, Robert and Snicks, Angelo 2010). Organizational Behavior.

McGraw-Hill Irwin.

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