Q$.$ CASE STUDY $15\mathrm{.}1$

Benchmarking

PART $1$

TST$,$ a local performing arts association, has been experiencing several years of financial prosperity. Their board of directors feels that it is time to update the formal strategic long range plan $($SLRP$).$ The purpose of the SLRP is to focus and guide the thinking and activities of the board of directors and staff of the organization. The implementation of the SLRP is the responsibility of the board as well as of the staff.

Members of the board are very enlightened about total quality management and are determined to put their knowledge to use in creating the new SLRP$.$ They begin their revision with the creation of mission and vision statements to guide the activities of the organization.

The vision:

Our performing arts association will advance a national reputation of excellence to ever$-$expanding local and touring audiences. In addition to performing, the performing arts association will embrace vigorous and respected educational and community outreach programs, which will include a school and associated preprofessional performance troupes.

The mission:

The purpose of the performing arts association is to educate, enlighten, and entertain the widest possible audience in the city and on tour by maintaining a professional company characterized by excellence. Its purpose is also to maintain a preprofessional training company and a school. The performing arts association will develop and maintain the artistic, administrative, technical, and financial resources necessary for those endeavors.

After developing the mission and vision statements, the board has decided to determine the viability of their organization when compared with other, similar performing arts associations. They have chosen to do benchmarking for this reason.

PART $2$

Following the steps suggested by texts on benchmarking, the performing arts association begins its benchmarking process with a brainstorming session to determine the focus of the benchmarking activities. The three general areas the board feels are indications of viability ar resource development, artistic excellence, and marketing effectiveness.

Resource development involves the financial aspect of the performing arts association. The associatio receives income from several sources, but all revenue cas be classified as either unearned income$-$corporate an individual gifts, agency$/$government funding, and contr: butions $-$ or earned income$-$ticket sales. Revenue is use to pfy staff, purchase shows, employ performing ar ists, naintain the theater, market upcoming shows, an spor for educational programs that are presented pric to the performance. Marketing efforts include adverti ing and promotional and discounted tickets. Staff men be s$.$ as well as volunteers, devote a significant amou ti ne to efforts to solicit contributions from agenci for orations, and individuals. These efforts are vital the ability of the association to offer a wide variety performances.

Artistic excellence involves such aspects as the progra mif offered during the year, the performers themselv their age and training, the number of community outrea p$.$ ograms, and preperformance lectures. Marketing eff tifeness is based on the relationship of attendance, tic shles, and dollars spent on marketing.

The results of the discussions are helpful in understa ing the company, how it is viewed both internally xternally. Using their focus areas $($resource developm rrtistic excellence, and marketing effectiveness$)$ as a be hing, the board must determine what to measure.