Situated on the eastern slopes of the Rocky Mountains, the city of Calgary is better known for its world class sports: the 1988 Winter Olympics and its Stampede – ‘the biggest outdoor show in the world’ than it is for the fine arts. Yet, in a recent conversation with the Chair of the Alberta Ballet Board, a senior oil executive confided that the fine arts are a selling card when moving executives to Calgary. On a more formal level, a recent survey of participation in the Fine Arts showed that over 70% of the Calgary population regularly attended different fine arts events and felt that arts were important to the well being of the community. It is against this background that this case study on the crisis, challenges and changes in the Alberta Ballet (A.B.) is set. The first part of the case study outlines the history of A.B. since it began forty years ago. It emphasises the organisational structure and culture, the Board purpose and composition, the relationship with its audience and its fund raising. The second part of the study deals with the current crisis that challenges A.B. to re-conceptualise and re-create its mandate. The challenge strikes directly at how the Company is structured, i.e. its leadership and management model; how the Board governs i.e. its role and composition; how it is funded i.e. its entrepreneurial stance and how the organisational culture supports its artistic vision i.e. its accountability and advocacy.

In the Beginning

In the 1950’s Edmonton was the capital as well as the cultural and intellectual centre of the Province of Alberta. Its population had grown rapidly in the post war years with the influx of European immigrants. The demand for opera and ballet was strong. In those early years, it was Dr. Ruth Carse, then Director of the Ballet Program at Muriel Taylor School of Dance, who formed a small amateur troupe of dancers called Dance Interlude. Serving as a showcase for student dancers, Dance Interlude brought ballet to small, regional centers that were unable to accommodate the larger companies that occasionally performed in Calgary and Edmonton. The provincial government’s support of Dance Interlude grew and in 1960 the company was renamed the Edmonton Ballet. At the suggestion of the provincial government in 1966, the name was changed to Alberta Ballet Company.

Although founded in Edmonton, the A.B. completed a successful merger with Calgary City Ballet in 1990. The new organization relocated its core operations to the historic Nat Christie Centre in downtown Calgary, while maintaining an administration office in Edmonton.

The first performances followed traditional programming, full-length story ballets e.g., the Nutcracker, and some mixed repertoire e.g., pas de deux, Vienna Waltzes. In general, the audience was appreciative and loyal. There were no demands for a more avant-garde or unique programs for classical dance in either city.

The Company was structured with two senior managers: an Executive Director and an Artistic Director reporting directly to the Board. The roles and responsibilities of the Board were related to fund raising and financial management. At that time in the province, the oil industry was booming. Sponsorships and donations were relatively easy to find. There was financial support from municipal, provincial and federal governments. To date, the Ballet receives 20% of its funding from government. As recently as 1999, this percentage was at 12%.

In 1990, as the new structure of the Company developed, a larger administrative team lead by the Executive Director took on more responsibilities. For example, the company began to tour in the mid-1990’s to locations within western Canada. In the later 1990’s the company started touring further abroad, with New York, Atlantic Canada, the US Pacific Northwest and Toronto as destinations. In 1998 the company toured to the People’s Republic of China followed by more recent tours to Finland and Egypt. On going relationships with sponsors and donors were part of the Executive Director’s mandate as was fundraising, orientation of new Directors, etc.

The School of Alberta Ballet began in1991 as a part of the Company, adding to the structure and changing the administration of the Company. The school offers regular instruction through to professional division programs and operates a summer program as well.

In 1999 Mikko Nissenin began his term as Artistic Director. For Nissenin who came from the San Francisco Ballet this was on his first appointment as Artistic Director. He came with a clear vision of how to ‘grow’ the Company. After ten years of the former Artistic Director, this presented a challenge to the administration that had had; it is safe to say a strong role in all aspects of the direction of the Company. At the same time, the new Chair of the Board brought with her a desire to change the governance and the composition of the Board. She had an extensive knowledge and experience base from her position as Director for the Calgary Centre for Non-Profit Management whose mission is to connect people and resources to build capacity within the non-profit sector. She began to change the role and composition of the Board of Directors, as well as the work of the administration. Up until that point, the structure of governance i.e. two directors and the Chair had worked to provide financial accountability and sustainability. The Alberta Ballet had an enviable track record of being in the black. However the communication, team work and accountability needed for the ‘triumvirate’ to provide leadership in times of financial cuts, debts and competition among the fine arts as well as from other public sectors needed to be reviewed and developed (Dees 1998).

The Crisis and the Challenge

The crisis was multifaceted. The following symptoms described the problem:

The 2000 touring agenda, which included the Maritime Provinces, Europe and Egypt lost money. This was in part due to the last minute cancellation of a portion of the Maritime tour because inclement weather and insufficient sponsorship to cover all costs associated with the tour. As well, corporate sponsorship overall had dwindled because of preference to support health and children’s issues. But the fact remained: A.B. was approximately $400,000.00 in debt.

Internal tensions had grown within the leadership of the administration and culminated with the resignation of the Executive Director, a long term employee of A.B.. It became immediately apparent that the role, its responsibilities and the criteria for accountability had not been reviewed formally since 1997.

The levels of funding – civic, provincial and federal were under close scrutiny and the proposals of A. B. did not receive the level of funding hoped for. After some deliberation, the Board decided that the new Executive Director should be given the major responsibility of fund raising. This was a departure from the past where the Board had played this role.

Given the debt, hiring a headhunter for selection of the new Executive Director was out of the question. Members of the Board were canvassed to form the selection committee and to construct a working paper that would re-define the role.

A new Director with extensive experience and contacts in marketing was invited to join the Board. Her approach was innovative and a departure from tradition. The new ideas were not widely accepted. The Board was divided on how to proceed with its marketing and its fund raising.

There was no strong planning: strategic, business or operational in place.

Roles and responsibilities as well as performance evaluation had been neglected. There was no evidence of best practices in human resources.

The mission and vision statements had not been revisited.

These are the factors that defined the crisis in which A. B. found itself in January 2001. It soon became obvious that these were the symptoms of a larger problem. A. B. needed to address the paradigm shift in leadership namely, ‘seeing culture as fitting into a business environment’ (Rentschler 2000). Like other arts organisations, A.B. needed to re-conceptualise its mandate, its structures, its leadership and management approaches, its understanding of fundraising and entrepreneurialism.

The Challenge and the Changes

This part of the case study provides an overview of the two frameworks being used to address the issues. First, a sustainability framework developed by the Not-for-Profit Management Centre serves as a template for A. B. to put in place strong business planning processes. The Model defines sustainability as the ‘implementation of effective governance, operational, financial, and knowledge management practices to achieve the short-term and long-term viability of an organisation’. It is also emphasises the need for ‘ongoing planning and review to ensure best practices’. Second, the conceptual and philosophical work on social entrepreneurship grounds A.B. as a social enterprise. Thus, its explicit mission is to make the world a better place to live in. Although debt is an anathema, creating social value does not necessarily lead to long term financial rewards. The lack of profitability does not equate to negative organisational performance (Dees et al 2002). Yet social entrepreneurship points out that in current economic environment, social enterprises need to balance business approaches with the creation of social values.

Leadership

The context for sustainability is defined by the leadership and management ideas and practices of the organisation. As Radbourne (2000) asserts our understanding of leadership is evolving. No longer defined by the solitary leader who is in ‘command and control’ or by ‘great man theory’, leadership is now understood as a product of ‘words and actions, images and artefacts’ (Sinclair 1998). Sinclair goes on to say that leadership ‘requires the complicity of leader and lead’. When leadership is seen as the result of relationships and reciprocal processes, the idea of a leader is no longer linked solely to position within a hierarchy. It transcends individuals, roles and behaviours (Lambert 1995). It is possible that anyone in the community can, may and possibly should, engage in the work of leadership.

The reporting structure of the A.B. did not change. However the understanding of how to lead and how to influence the direction of A.B. did. In the period following the resignation of the Executive Director, the Artistic Director and the Chair worked in harmony with the Board, the dancers and the staff. Sharing opinions and perspectives in key decision making processes was encouraged. This heralded a new era as employees realised that their perspective was being sought and listened to. One of the observable outcomes is a greater sense of ownership. Although it would be a mistake to attribute this solely to the practices of social entrepreneurship, one of its cited outcomes is greater spirit, energy and commitment.

This sense of renewal and optimism is growing not only in staff but in the Board and among volunteers. It was enhanced by the retreat on strategic planning which launched a new mission and vision of the company. Thus began the bridging of the schism between the ‘traditional’ leadership and its mandate and the emerging understanding of the Board’s role, its mandate and associated activities.

Leadership And Power

To believe in the capacity of individuals to influence the mission and vision of the organisation and its course of action means embracing different concepts of power. First, the concept of personal power is crucial. Personal power means that each individual has a sense of control over the outcomes they have chosen; an image of themselves as competent, effective and able to implement their ideas (Lips 1981). In effect the Chair and Artistic Director created a culture for personal power. The decision to involve the staff and dancers in key discussions changed the relationships between individuals and broke down the bureaucratic culture, which had emphasised position and authority. Culture is often defined as the product of human relationships. Inclusion of all staff is one of the turning points in shaping organisational culture. As a result, relationships in A. B. changed and so did the culture.

Organisational culture is also described as ‘the way we do things around here’. Changes to the taken for granted ways of dealing with issues have begun to happen. Staff are taking more initiative and responsibility in their roles. Processes are under review. In a paradoxical way this has highlighted one of the challenges to entrepreneurialism: building organisational capacity (Dees et al 2002). In the near future, roles and responsibilities will have to be assessed. Professional development opportunities will become a priority.

Second, power is about more than dominance. It also involves the ability to impose a definition of what is possible, what is right and what is real. Like leadership, power is ‘ a product of human activities’ (Fishman 1983). The Artistic Director used his vision of the ballet to define what classical dance meant within A.B. and to the audience. A standard of excellence was brought to bear on how dancers were evaluated and selected. The program of dance began to expand to include ‘New Works’. The choreography of the Nutcracker was revisited and a new version launched in December 2000. Slowly but surely the audience has learned to expect a varied program and international standards.

Dees (1998) describes the factors which are key to balancing commercial initiatives with the mission of a social enterprise. They must exist in a dynamic, fluid, mutually affirming balance. In fine arts organisation, another point of balance is between the traditional ‘product’ and the entrepreneurialism. For example, recently, the Artistic Director of the National Ballet of Canada took an entrepreneurial stand. He recast the dance program. They packed houses with new, populist and more easily accessible programs of dance. However, in so doing, he lost the confidence of the dancers and the Board. Long term patrons of classical ballet were outraged and voted with their feet. His new ‘product’ upset the balance between entrepreneurialism and traditional and new modes of classical dance.

Recognizing that the deficit would mean no touring in 2002 – and acknowledging the importance of touring to the dancers, the Artistic Director used his network to explore the possibility of a video project. Although this has not eventuated, his entrepreneurial attitude and approach won kudos from the dancers and Board alike. Again, using his networks, the Artistic Director brought two internationally renowned teachers to work with students as well as professional dancers. This sense of standards influenced the School of Ballet as well.

Board Governance, Vision and Ownership

As a result of the strategic planning retreat, the vision and mission statement of the A.B. are featured in issues of governance, ownership and planning. The Board is reviewing its governance model in order to develop one that supports the new role of advocacy and accountability. The new model will reduce the power of the Executive Committee and require all Board members to make responsible and informed decisions. The Board will maintain a Finance Committee and a Resource Development Committee to lead the effort to eliminate the deficit in a timely manner.

The Executive and Artistic Directors and the Chair continue to address consciously how to lead as a triumvirate within the organisational structure. A part of the exploration is the naming and claiming of values and beliefs that are being put in the new mandate. Given their understanding of leadership, greater emphasis is being placed on skills at negotiation, advocacy and communication. A win-win attitude is growing slowly.

Fundraising and Social Entrepreneurialism

With the new Executive Director in place, the Chair began to recruit new Board members with competencies in specific areas as well as fund raising connections. This is part of defining the new work of the Board addressed above (Taylor et al 1996). For example, a parent from the School of Ballet undertook the chair of the Resource Development Committee. His perspective and commitment as a parent has enhanced fundraising and the links between A.B. and its audiences. Advocacy, planting and nurturing audience loyalty as well as new fundraising initiatives is a cornerstone of the organisation. Key fundraising special events were placed with new Directors who had their own approaches and connections within the Calgary and Edmonton communities. Freed up from the detail of events, long term Directors presented proposals for sponsorships with major companies.

A new Director who is president of a marketing company brought the issues of high profile advertising, marketing and branding to the Board table. This approach broke with traditional fundraising practices. The Board was split between the ‘old guard’ who fought such a commercial approach and the new Directors who saw it as a prime opportunity. The discussions during and after the Board meetings were heated. However, this approach has gained credibility and is being used for seeking sponsorships from large corporations. Although a major sponsor has yet to be identified, it is a successful advertising tool. Companies who had little interest in the fine arts are commending A. B. for its new profile.

The new Executive Director is reorganizing the fundraising structure to develop in-house talent to maximize individual and corporate philanthropic giving in addition to securing performance sponsorship from corporations. Today, the Board of Directors is being used as a resource to secure funding rather than the primary means to secure funding. At the same time, and for the first time, Board members are being asked to meet a level of donations ($5,000 each) to help offset the financial situation of the company.

Future Organizational Issues

The A.B. is coming out of the crisis but by no means is in a stable and secure place. Many of the following issues need to be addressed in the coming year – and others over the foreseeable future.

Planning

A strong emphasis is being placed on business planning. For the first time, the organization will move from a one-year strategic plan to a five-year business plan. The plan will encompass artistic vision, production, marketing, communications, human resources, technology, administration, partnerships, financials, governance as well as risk analysis and contingency.

Orientation of new Directors to the Board

As the Board addresses the knowledge and skills it needs to fulfill its new mandate, new Directors will be invited to join. Their role will be fundraising and equally importantly providing expertise in key areas: human resources, knowledge of the not-for-profit sector, broad experiences and knowledge of the role of fine arts and the development of a world class city. Directors should be knowledgeable about the social and financial context for A.B.. The current financial situation must not be repeated in the future.

Currently, there is no orientation to the Board. In the future, this must be addressed. A well-developed program will enhance the teamwork on the board, the understanding of the mission, vision and mandate. There are plans to include a mentoring/coaching program so that new Directors are quickly up to speed with the culture, values and decision making processes being used.

Social Entrepreneurialism, Marketing and Fundraising

The social and economic context is changing rapidly in Alberta and across the world. The merger of major companies means that fewer dollars are available for sponsorships. Recent experiences at fundraising would suggest as well that a smaller percent of the companies’ revenues are being dedicated. The plight of children and refugees is claiming a larger attention from the public, as are the needs to reclaim the environment. Within this context, the fine arts are facing serious cutbacks and competition. Recent discussions around the Board table suggest that new approaches and processes are needed. First, the nurturing of loyalty among donors must be seriously addressed. Many fine arts organisations are losing long-term supporters due to the lack of appreciation they have received. Second, new markets and marketing approaches must be developed. For example, small, professional businesses such as dentists and doctors have been neglected. A package and a website are being developed so that all potential donors have ready access to information and ways to donate. Third, like other fine arts organisations, A.B. has the daunting task of identifying the primary customer i.e. the one whose life is changed by the Ballet and who would like to enhance its legacy.

Finally, early discussions around marketing for the fine arts are coming up with new perspectives. For example, Alberta is known for its world class sports and its physical environment. However, little has been done to develop the concept of a ‘world class’ i.e. any place which is ‘world class’ has quality fine arts, museums, etc. as well as sports. Partnering with other Arts organisations under the umbrella of ‘world class’ could enhance the profile of the Arts and increase audience participation as it has in other areas (Scheff and Kotler 1996). Collaboration between numerous arts organisations with a business or multi businesses has also proven highly effective.

Conclusion

The crisis, challenges and changes met by Alberta Ballet in 2001 are clearly a global phenomena. The economy, values and how business is done are changing. The nonprofits are not immune to these changes. Alberta Ballet has incorporated approaches from business into its organisational structure, governance model, fund raising and leadership. As the changes were incorporated, we realised intuitively that business models were necessary but not sufficient. As Dees (2002) points out that the nonprofit sector is “where you are measured by how well you serve your social mission”. The literature on social entrepreneurship has enlightened and informed our sense of balance, our purpose and our place within the financial community.

In conclusion, the crisis for A.B. has been salutary. There is a new energy, commitment and sense of hope in the future. We are a long way from being in a stable financial situation and we know that the future holds challenges. Nonetheless there is a feeling of confidence and energy in A.B. that we have the capacity and commitment to meet future challenges.

References

• Dees, J. Gregory. 1998. “Enterprising Nonprofits” Harvard Business Review. January-February p. 5-6
  
  
• Dees, J. Gregory, Jed Emerson and Peter Economy. 2002. Enterprising Nonprofits: A Tool Kit for Social Entrepreneurship. John Wiley & Sons.
  
  
• Fishman, P. 1983. “Interaction: The Work Women Do,” in Language, Gender and Society, Thorne, Barrie ed., Rowley: Newbury House, p. 89.
  
  
• Lambert, Linda. 1995. The Constructivist Leader. Teacher College Press. p. 29-30
  
  
• Lips, Hilary M. 1981. Women, Men, and the Psychology of Power. Prentice Hall, Inc. p. 82
  
  
• Rentschler, R. 2000. Preface to “Passion, Performance & Prosperity: the profitability of arts leadership, J. Radbourne. Deakin University Press.
  
  
• Ryan, William P. 1999. “The New Landscape for Nonprofits” Harvard Business Review. January-February p. 128
  
  
• Sinclair, Amanda. 1998. Doing Leadership Differently: Gender, Power and Sexuality in a Changing Business Culture. Melbourne University Press p. 12
  
  
• Taylor, Barbara E., Richard P. Chait and Thomas P. Holland. 1996. “The New Work of the Nonprofit Board” Harvard Business Review. September-October. p. 4-5
  
  

Appendix A

The Calgary Centre for Non-Profit Management- Sustainability Model – Definitions Of Key Concepts

Sustainability

the implementation of effective governance, operational, financial, and knowledge management practices to achieve the short-term and long-term viability of an organization. Sustainability is also defined by ongoing planning and review to ensure best practices.

Vision

a broad statement of the future that an organization seeks to create.

Mission

a concise statement that identifies an organization’s purpose, activities and key stakeholders.

Values

the fundamental beliefs underlying an organization’s mission and vision that provide the context for day-to-day operations.

Governance

the processes and structures that direct and manage an organization’s operations and activities. Governance establishes mechanisms to achieve accountability and fiscal responsibility among stakeholders, the Board of Directors and management.

Strategic Plan

a three-to-five year plan that is designed to lead, manage and change an organization in a well-integrated fashion based on core strategies. The strategic plan should drive and inform the business plan.

Business Plan

a one-to-three year plan that serves as the principal operating tool for an organization and outlines strategies for operational and financial sustainability. An effective business plan will include plans/strategies for:

• governance
• marketing and communications
• human resources
• resource/fund development
• financial management
• administrative procedures, and
• technology supports.

The business plan should drive and inform the operational plan.

Operational Plan

a one-year plan that provides details of annual operations linked to the budget.

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