Strategic Challenges for the Sydney Theatre Company - Case Study Example

Managing Creative Enterprises Author’s Name Institutional Affiliation Instructor Date The Strategic Challenges for the Sydney Theatre Company in Meeting Its Current and Future Performance Goals Introduction Theatre is a type of fine art which makes use of live performers who present to a live audience the experience of an event, be it an imagined or a real event (Carlson, 2011). The performers communicate to the audience through different methods including the use of music, song, speech, and dance. Western theatre traces its origins to Athens, a Greek city around 6 century BC, and theatre in Australia has a very long history (Brockett & Hildy, 2003). Some of the earliest manifestations of theatre in Australia can be traced to the dances performed by indigenous Australians during certain ceremonies. Thus, theatre can be said to have been present in Australia from as early as 60,000 years ago. Indigenous Australians played music and performed various dances with costumes during the many ceremonies that they held (West, 1970). With the advent of White settlement in Australia from 1788, European theatre traditions finally gained a foothold in Australia (Brisbane, 1991). The European theatre differed from the traditional form of theatre present in Australia mostly due to the manner in which the production was done. George Farquhar is credited with writing the first European influenced production to be performed in Australia. The production, known as The Recruiting Officer, was performed by convicts in the year 1789 (Jordan, 2003). Australia’s oldest theatre is the Theatre Royal, Hobart, which opened in 1837. From the humble beginnings of the theatre in Australia, the field has grown in leaps and bounds. This paper will focus on one of the many theatres that are present across Australia, the Sydney Theatre Company. As part of the growth in theatre, the Sydney Theatre Company was founded in the city of Sydney, New South Wales (Parsons & Chance, 1995). The Sydney Theatre Company traces its origins to the year 1979 when the State Government issued a grant for the purpose of setting up the company. The theatre has been in operation ever since and has produced many actors who have gained fame in both the national and international arenas (Schafer, 2003). However, the journey for the Sydney Theatre Company has not been all smooth sailing. This paper will examine the strategic challenges that the Sydney Theatre Company faces in meeting its current and future performance goals. Discussion The operations of the Sydney Theatre Company are based at a heritage site in the wharf area of Sydney. The company’s new program dubbed Greening the Wharf has been the hallmark of Cate Blanchett’s leadership. The project has revolved around environmental conversation which has taken the form of putting in place measures to ensure energy efficiency, to utilize solar energy, and to harvest rainwater as well as implementing best practices in waste management (NSW, 2012). The program encompasses the company’s employees and engages the community while the company engages in educational activities and theatre productions that promote environment conservation. In examining the challenges facing the Sydney Theatre Company, this essay will look at various facets of the company that might have led to the less than desirable outlook of the company. The following sections will examine the Sydney Theatre Company’s organizational design, communication management, adaptability, and sustainability. Organizational Design Organizations dealing with performing arts have over time become more complex and hence challenging to run. It is therefore becoming increasingly difficult to balance between leading the artistic ventures and leading the business side of the organization. In terms of structure, the Sydney Theatre Company has many people on its payroll. The company boasts at least 230 members of staff, which makes it difficult to run the company smoothly. Even a simple task such as passing a message along to all employees becomes very difficult for the management since at no given moment is it possible to have all the members of staff available. In addition to the difficulty arising from the number of employees, the organization also involves various categories of staff members. Some of the members of staff are unionizable and do in fact belong to labour organizations, while another category of employees are not unionized. Additionally, the theatre company has another category of staff members who are engaged on a temporary basis or work in shifts (Jordan, 2003). Though it is unclear which employees are in the categories, it is evident that the temporary workers are not unionized. Even though workers at the management level are not unionized this is not a serious challenge. Because these different categories of employees are supposed to work in unison to achieve the goals set by the company, management faces an extremely difficult task in managing such a diverse group of employees. For example, one category may feel either superior to or threatened by another group of employees at the company. For example the temporary members of staff do at times feel inferior the those whose are on permanent and pensionable terms. Where there are different categories of people involved in the workplace, it become almost natural for friction and turf wars to arise. This is especially true when some people feel that their positions are threatened or that they do not receive equal treatment. A lack of total commitment by everyone in any given organization translates to a lower than desirable output for the organization, which in turn means everyone feels let down (Schafer, 2003). Communication Management Communication management refers to the systematic planning, implementation, monitoring, and revision of the channels that an organization makes use of within the organization itself or within other organizations. Communication management includes the organizing and sharing of new directives with respect to communication pertaining to the organization. It also involves the choice of the form of technology to be used for communication (Judith & Pauley, 2009). The Sydney Theatre Company has fallen short with respect to communication management. The weakness for the company lies in developing proper strategies to share corporate messages. With the lack of an established communication system, it becomes difficult to manage the flow of information in terms of the kind of information and the regularity with which such information reaches the employees In addition to difficulties experienced in communicating with the employees, very little air time is given to theatre on media outlets such as television or even radio. Members of the public must remember and gain interest in what they are exposed at every available opportunity. The sad reality is that the potential theatre-goers have what would be referred to as some form of a media blackout as far as the existence of the activities of the theatre are concerned. It becomes very difficult to maintain public interest in theatre or even attract new people since they receive very little or no information regarding the theatre—and as the old adage goes: out of sight, out of mind (Knights & Willmott, 2007). However, the theatre can reverse this by finding ways of informing members of the public of the advantages of theatre of other newer forms of entertainment. The kind of communication used by the Sydney Theatre Company also plays a part in the sustained failure of interest in the company’s activities. Referring to itself as a not-for-profit organization puts off many people who would otherwise have invested their resources in the theatre. Not-for-profit organizations do not have a lot of surpluses, but use of the word has a negative connotation (Jordan, 2003). Referring to the organization as a not-for-profit tends to show that it is a project which is not viable and hence it is only there to consume resources without any meaningful form of returns being realized. This is a mostly a misconception from the potential financiers. The company would better benefit from sharing a more positive message that gives confidence to people who would be interested in putting their resources into the project. This would include showing how productive its affairs are as well as how the financiers would stand to gain from collaboration with the theatre company. Sydney Theatre Company must also battle the long-held idea that the theatre company is just a social venture which has nothing specific to offer to the people. This misconception gives people very few or no reasons at all to have faith in whatever projects the theatre is involved in. People tend to strongly support an organization that has something to offer them. It is difficult to gain appeal for the theatre unless it proves that it addresses some of the issues that are of interest to the society (Parsons & Chance, 1995). The theatre could for example address topical issues such as climate change, technology as well as Australian troops serving as part of the North Atlantic Treaty Organization detachment in Afghanistan and elsewhere. The specific activities the theatre is involved in should be properly communicated to the people in a manner that is easy to understand. Clear communication should be intended to arouse the interest of the people and make them feel like they have a stake in the theatre so they will come out and support the Sydney Theatre Company to ensure that it succeeds. Adaptability The last few decades have seen unprecedented changes in the field of education and entertainment. Certain forms of entertainment and technology have become all but obsolete. The Sydney Theatre Company has not been spared from this reality. Television, social media, and mobile phone technology have taken up a huge chunk of the audience that would otherwise have gone to the theatre. Television sets offer many options, and they are conveniently located so that the viewers do not have to leave the comforts of their homes to access news, documentaries, or even entertainment. The use of social media has also turned almost every person into a source of entertainment, and it is very easy to share any kind of information, including educational and entertainment material, from one person to another. The advent of mobile phones, which have mutated since their first appearance, has also given the theatre a beating. Theatre generally appears to be trying to play catch up, and this has come at a very expensive price (Parsons & Chance, 1995). New smartphones can be used for many things which only a few years ago appeared to be just figments of imagination. It has become commonplace to utilize the computing capabilities of the mobile phone and other devices to download movies, music, and other forms of entertainment. The convenience of having a mobile phone means that people can receive almost any form of entertainment wherever they are. Because convenience is a key consideration whenever humans choose whether to do something or not, mobile devices have become quite popular. This makes it very difficult for theatre to gain more foot hold. This means that it is complicated to ensure that theatre achieves business objectives which partly entails making profits. Running a business has likewise become increasingly complicated. Running a theatre company is already complicated in itself, but it has become even more so due to the changing times. Almost everything about running a business in general and theatre in particular has changed over the past few decades, and competition has become very stiff. Managers are required to change or be swept into oblivion together with their business (Jordan, 2003). Modern times call for a review of how any business runs its affairs. The modern client demands more from the business, which means that only businesses that are more customer-oriented can weather the storm of competition and emerge even stronger. Changes in technology have required business owners to adopt technology to support their business. Just over two decades ago, one needed only to place an advertisement on the television, on the radio, or even in print media. In contrast, modern times demand that business owners maintain up-to-date databases, have websites, and have a presence in major social media sites. The kinds of products that are produced by the businesses should be tailor-made to meet the needs of the specific clients targeted by the business in question (Brisbane, 1991). Just like any kind of business, the Sydney Theatre company has found the going quite difficult. In addition to problems on the management side of the company, the Sydney Theatre Company faces a unique challenge with regard to hiring properly trained employees there has been a problem with a lack of formal training in the arts. In addition to problems on the management side of the company, the Sydney Theatre Company faces a unique challenge with regard to hiring properly trained employees Though the situation has changed for the better, it was difficult to find the right kind of people to run and work for the theatre company in Sydney. It is now possible for college students to combine art studies with another field of studies which enhances their capacity to make positive changes in theatre unlike the previous situation where arts were not taught at all. Education and training are very important, especially in the arts. Through training, people come to realize that they are greatly talented; in turn, nurturing those talents enhances the qualities of theatre productions (Knights & Willmott, 2007). The provision of training opportunities also means that the government is explicitly endorsing art as an important aspect of life, which encourages people who would otherwise have had second thoughts to take up arts as an option. The government should encourage exchange programs between art students in Australia and those from other countries. The interactions would result in an exchange of ideas and a more robust theatre industry in the country (Brisbane, 1991). The Sydney Theatre Company has been affected by what would loosely be referred to as inbreeding. Many of those running and managing the theatre company have largely been born and bred within Australia, and the lack of infusion of new ideas from elsewhere has meant that theatre has stagnated due to a lack of better ideas. These challenges have meant that the theatre company has not been able to live up to what is expected in modern times. In addition to training, competition is another challenge facing the theatre company. Intense competition has eaten into the fortune of the Sydney Theatre Company. The theatre industry is filled with other players, and other forms of entertainment are available. This environment has caused ticket sales to drop to very low levels (Linda, 2004). The theatre company has also experienced lower numbers of people subscribing, which has translated into lower sales; consequently, the levels of income for the theatre company have taken a beating (Jordan, 2003). Many people are opting to attend cinemas, sports events, and other forms of entertainment events, causing the theatre company’s fortunes to dwindle. This is a marked departure from the past, when there were fewer alternatives available for entertainment and people would therefore naturally take what was offered. During what would be referred to as the “good old days,” the theatre company made modest returns out of the high number of people who turned up for its events (Jordan, 2003). More recent figures have not been very pleasing, especially with the youths, a new demographic that the theatre company needs to address. The youths appear not to appreciate the essence and the need to engage in theatre, let alone attend events that are brought by the Sydney Theatre Company (Milne, 2004). The stiff competition is bound to get tougher, and the theatre company must develop innovative ways to overcome the tide that does not seem to be going its way. Adaptability requires the company to ‘fit in’ into the modern times. This requires the company to a number of thins and these include looking at different things which include training. The company should also be concerned about being able to appeal to every demographic group. Sustainability With the ever-changing world, the Sydney Theatre Company is also experiencing a problem with competition for resources. Resources, and mostly financial resources, have not increased with the level of demand not only in Australia but also in the world at large. Money is needed in many areas, especially for the average citizen, so resources are often given to projects that are considered more urgent; hence, little money is left for activities and projects beyond the basics (West, 1970). Like individual citizens, State and federal agencies must prioritize how they spend their resources. Unfortunately, the finite nature of resources calls for a tough balancing act. Because the various entities have to take care of all areas that require the meagre resources, the amount of financial resources allocated to theatre has dwindled as the years go by. As such, the theatre company has found itself in dire financial straits with the management being forced to make do with little or even cancel some of its planned projects altogether. Even where there is a substantial amount of money available to the theatre company, it finds itself with many projects which require the money (Jordan, 2003). The financial hardships are likely the biggest handicap the company faces. This could probably be the biggest handicap facing the company. The businesses and organizations that would finance the Sydney Theatre Company’s operations have not been spared from the effects of the poor economic outlook resulting from the global economic meltdown in recent years. The effects of poor business performance are that those businesses that would ordinarily donate funds to community-focused initiatives such as the theatre tend to keep money to themselves (Parsons & Chance, 1995). Potential donors are reluctant to spend money while the sad reality is that their business is losing money. The theatre company is forced to scale down both in terms of the projects it can undertake and the number of members of staff that it can employ. The government has also had to manage the effects of the economic crises and direct resources to measures which are meant to mitigate the effects of the global economic crisis. What this situation shows is that the theatre company is at times at the mercy of forces beyond its control (Linda, 2004). Would-be donors have also advanced other reasons as to why financing has not been forthcoming. For quite a number of years, the Sydney Theatre Company has been posting deficits (Carlson, 2011). It becomes quite difficult to convince any donor as to why they should provide funding to a company which is doing poorly financially (Brisbane, 1991). This would be tantamount to acquiescing to poor management of the resources. Many donors would be comfortable identifying with success stories, but unfortunately that was not the story at the theatre company. The reluctance by donors has proved to be tantamount to rubbing salt in the wound since the company’s financial challenges are now the stumbling blocks to turning its fortunes around. The Sydney Theatre Company is by design quite difficult to organize. The company is divided into roughly three areas: arts, business, and community. The goals for the arts side of the business might slightly differ from those of the business and the community sides. Some of the decisions made by the theatre company might not make business sense, and this is one area of conflict (Brisbane, 1991). For the company to be sustainable, it must be involved in projects which ensure a constant flow of income to its coffers. The theatre company must also engage in community projects. The company endeavours to engage with students among other sections of the community. The projects undertaken at the community level might seem irrelevant to a person who is concerned about the potential of such activities to generate money for the company. It is very difficult to find a person who is knowledgeable in the three areas and thus ensure that the company runs harmoniously; as such, it is difficult to avoid conflict since people tend to have different viewpoints depending on their areas of training or interest. The lack of quality directors and actors can be attributed to the previously skewed college education where it could be rightly argued that colleges did not produce holistic graduates. These would be people who would be in a position to understand the different aspects of theatre (Judith & Pauley, 2009). Because of its complicated organization, the Sydney Theatre Company faces challenges concerning the various facets of its operations. Coordinating between business and community projects is challenging. The Sydney Theatre Company is engaged in community projects which would bring in the amount of money that would be necessary to ensure that it can be sustainable. The management must therefore, as a matter of necessity, consider all the areas which are meant to ensure the successful running of the company (Jordan, 2003). The company runs a number of projects which should be profitable so as to ensure that the generated income can sustain and nurture the community projects. Some of the projects include purchasing stocks and securities as well as organizing events where people pay on attendance. Even when the finances to be invested are available, the management faces another challenge in determining how such finances should be invested. Investors should offer advice on the best forms of investments which would probably be less risky for the company and ensure modest returns. As would be expected, most of the people in the management of the company would rarely have the different skills required to run a profitable outfit and at the same time run community projects (Carlson, 2011). What this portends for the theatre company is that one aspect could potentially face neglect, but none of the areas of the company can be ignored since all of them are key aspects of the company. The other aspect, running successfully as a business, comes as a matter of necessity to ensure that the theatre operations can be sustained in the long term even with the diminishing financing from outside sources (Cartledge, 2002). Sustainability is very vital and hence the need to deal decisively with it since it is central in determining whether the company shall be available in future. Other Challenges The quality of the actors and the directors at the disposal of the company affects the quality of the productions that result. The company has been lacking the right quality of directors and actors who would enhance the quality of its work so that it gains prominence. Directors and mostly actors are the face of the company. If the company produces work which is of very high quality, then the company’s as well as the country’s name gains prominence. Actors act as cultural ambassadors. Without the very best of the directors, it would be difficult to bring out the best of the available actors (Brisbane, 1991). Apart from a lack of visionary leadership, the other challenges that have dogged the company would not make it easy for any good director or even actor to decide to work with the company. The right quality of actors would also translate into more finances for the company since the donors always go out of their way to work with success stories. This tendency is understandable since sponsoring an organization that is doing very well translates into the sponsoring company gaining a lot of good exposure; in the end, it becomes a win-win for the sponsoring company and the theatre company. Addressing the Challenges The foregoing does not paint a very rosy picture regarding the current state of affairs at the Sydney Theatre Company. As a matter of necessity and urgency, the Sydney Theatre Company must address these challenges to ensure that the company is able to have a greater impact on the community (Schafer, 2003). This goal can be achieved only if the company has a constant and reliable source of income. The society must also be involved. Only after a majority of members of the society are able to identify “what’s in it for me” can the theatre company expect to succeed (Carlson, 2011). After years of poor performances and posting deficits in addition to a myriad of other developments, it is only fair that a sober assessment is made. To ensure successes in the future, the Sydney Theatre Company must address the following areas- audience, communication, business plan and going international. The company should identify when it starting losing audience and income to help identify the root cause of the problem (Judith & Pauley, 2009). The company must also understand the kinds of challenges it faces at this particular point in time. Finally, the company must set a vision as to what it expects to achieve in the future. This process of introspection and planning ahead should be as inclusive and consultative as possible to ensure that no vital input is inadvertently left out. The management should acknowledge that no magic solution will turn the company around and that any solution will involve hard work, hard work, and more hard work. It is, however, important to note that some of the measures meant to address the sorry state of affairs are being addressed (Brisbane, 1991). As noted earlier, one of the problem areas for the theatre is communication. The theatre company has developed a project known as Greening the Wharf which is meant to address a number of environmental concerns such as use of clean energy, conservation of water, and proper disposal of waste. Unfortunately, not everyone understands why the company should engage in such an activity which seems not to be central to its concerns. People who think in terms of business and returns would probably think that the funds would be best utilized in more income-generating activities which would ensure that the financial future of the company is more or less secured. However, it is important for the stakeholders to understand the rationale behind the company becoming involved in such activities (Schafer, 2003). The theatre company should inform everyone, and most importantly the community, of why certain measures should be taken. The community efforts are informed by addressing the issues that affect the community generally. When the theatre company gets involved in environmental conservation efforts, then it is easier to identify with the community. In this way, the company would be spearheading projects aimed at securing the future and the wellbeing of the community, which would obviously generate a positive response from the community at large. Just as a traveller would require a map and a compass, a business cannot operate without a sound business plan. A business plan refers to a formal statement in which are contained the goals of a business. The business plan also gives reasons for believing that such goals can be achieved and discusses what plans have been identified to attain the set goals. A business plan could also have some information on the background of the organization that intends to achieve the goals that have been set. A business plan could be used to introduce the brand and the perception by the customer and the community at large, among others (Cartledge, 2002). The Sydney Theatre Company has come up with a business plan which is aimed at transforming the management of the company and thus changing its fortunes forever. The developed business plan focuses on the three areas in which the company is involved: art, business, and community (Schafer, 2003). The business plan aims to remove the conflicts that have existed in running a company with different goals. The company has realized the need to rationalize its operations so that there are no internal conflicts, which will help keep the management and other members of the team from getting sidetracked from the key goals of the company. The Sydney Theatre Company also seeks to have an international audience. This goal can only be realized through having an international market. The company therefore seeks to have sponsors who would ensure that it is able to stage its performances in different parts of the world and not just limit itself to New South Wales or even Australia. The company also seeks to distinguish itself through its vision and mission statements (Schafer, 2003). Most business organizations appear to have similar aims, but the company has realized that being distinct would give it an edge and help it appear different from other organizations (Schafer, 2003). In this regard, the theatre company aims to be distinct, fun, intelligent, and interactive. It is only after people realize what sets the company apart that they can then partner with it in its endeavours. The theatre company also seeks to streamline its management structure. As should be the case always, structure should follow strategy. Only after developing the business strategy can the company decide on the best form of structure to employ in order to meet its set goals. To attain financial security, the company has realized that it requires a customer relationship system. As such, the company should designate a person or a department responsible for handling customer relations. The company has also realized the need to have a middle level manager who would act as a link between the top management and the workers in the lowers levels. The need for a human resources manager has also been recognized. Managing the members of staff requires proper structures. In addition to staff management, a new corporate strategy should be developed. The company has also realized the need for developing a new corporate strategy so as to remain relevant and competitive and this includes greening the wharf initiative. The company also aims at being able to bring the members of staff together to facilitate sharing of ideas and ensure that everyone understands clearly what the company is all about and how it is different from the others. The company also aims to change the traditional top-down management style and adopt a more friendly approach where every person feels important and valued (Judith & Pauley, 2009). In addition, the Sydney Theatre Company aims at not only being different but also enhancing creative capacity in the community and exploring social issues of the day. The challenges are many and not quite easy to resolve. However, means must be identified through which the Sydney Theatre Company can navigate through the period of uncertainty. Conclusion It is evident that theatre has a very long history, and it is clear that Sydney Theatre Company occupies a very important position. Theatre plays a pivotal role in many aspects of human life. Theatre has been used as a medium to educate, critique, and entertain while also providing employment and a source of livelihood for many people and their families. Owing to the importance of theatre, it would be a tragedy for this invaluable treasure to be left to die. Unfortunately, this is the direction that the Sydney Theatre Company appears to have been headed; to avoid this fate, its management must change to ensure that it not only survives but also thrives. The company faces many challenges and must pay the price to reform the organization to ensure that it meets the challenges of today and has a viable future. Although a myriad of challenges exist with respect to the Sydney Theatre Company, all is not lost. If the necessary steps are taken to remodel the organization to suit the changing times, then current and future generations shall benefit from this treasure. References Brisbane, K. (1991). Entertaining Australia: An illustrated history. Sydney: Currency Press. 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West, J. (1970). Theatre in Australia. Stanmore, NSW: Cassell Australia. Brockett, O. G., & Hildy, F. J. (2003). History of the theatre. Boston, MA: Allyn and Bacon. Milne, G. (2004). Theatre Australia (un)limited: Australian theatre since the 1950s. Amsterdam: Rodopi. Read More