Sustainable business models for the visual arts

My name is Susan Royce; I am a chartered accountant and change consultant who has worked in the arts for over 10 years.  I have also been the chair of Axis for the last 8 years and collect contemporary work when my bank balance permits.

Image: Susan Royce

In response to requests from the Turning Point Network, I have been asked by the Arts Council to look at what makes a sustainable business model in the subsidised visual arts sector.  

Virtually all of the literature on business models assumes that the business itself is profit making and that its main goal is long term shareholder value so my first challenge has been to consider how to think about the sustainability of businesses which are mission-led, subsidised and set up as not for profits.  

My first major conclusion is that you cannot understand or explain business models in this sector if you confine yourself to the numbers.  It is vital to consider all of the resources which an organisation attracts and deploys - cash, of course, but also people's time, the organisation's brand and the networks it and its staff are a part of.

Building on this I believe that sustainable business models exhibit 3 traits:

1. They are attractive- their mission, vision and values attract support from a wider range of sources
2. They are agile - their organisational culture, internal processes and financial structures allow them to operate flexibly responding to both opportunities and threats in good time and without derailing the organisation
3. They can deliver - their culture, people and processes promote the efficient and effective use of the resources at hand

I shall be enlarging on all these themes over the next few weeks and I would really welcome any and all feedback.  

Susan 

Turning Point Network update

Back at the end of April (which seems so long ago in this fast moving landscape) we held a meeting of the Turning Point Network Chairs and Co-ordinators (and Project Managers - sorry Amanda King!) to discuss our collective progress.

The aftermath, and Andrew Brown's reflection in the monitor (that's the only photo of the camera-shy Andrew I'm likely to get!)In advance of the meeting each of the eleven groups that make up the network submitted a short written update (actually, only ten of the eleven did because poor Julia Bell was stranded in the US - darn the ash cloud!). These can be downloaded today, or you can wait to see the more detailed progress report that Annabel Jackson is currently writing, and which will include a logic model for each group's work as well as some learning about the value of the network.

On the day the group discussed the evaluation; began to consider the future of the network beyond the pilot phase (something that will be covered in more depth at the next meeting, on 22 July 2010); and initiated working groups to address three key areas of work:

• National advocacy for the arts, and the visual arts
• Knowledge Sharing
• National Event planning

Chairs were asked to nominate regional group members to sit on these working groups, and they are close to being formed - I'll be sure to publish the final membership of those groups on here in due course.

During the meeting Vivienne Bennett reminded the group that specific pieces of work were being commissioned nationally to address the challenges raised by the sector at last year's national event (click here to download the notes from the event). These include a piece of work being undertaken by Susan Royce and looking at sustainable business models for the visual arts. I will be steadily publishing information about this and other national programmes over the coming weeks and months, so please do subscribe to the website today.