The Economics of Creative Social Enterprise

Case Studies of RESIDUE Limited and The DEAD Company

Time for new directions- Evolution or Renewal?

What do creative arts organisations, drama societies, musical ensembles, dance companies, crafts studios have in common?

• They share a passion for creativity and innovation; yes, almost certainly.  
• They are examples of triumph of motivation over hardship; agreed in most cases.
• They tend to be under-funded: probably but not always
• They are personality-led bastions of knowledge masquerading as teams; not always!
• They are successful and respected; mostly
• Their top managements are always open to advice and democratic in their pursuit of excellence; well, really?
• They are a creative form of cultural social enterprise; yes!

Creative cultural entrepreneurs bring these organisations to the market, mostly supported by sound vision and abundance of skills and motivation. Well, that is what makes the subject of discussion for the next few weeks. How is it that some cultural organisations are successful and secure in their existence while others need regular transfusions of energy and can be found wanting in their pursuit of risk-free gestation from concept to sustainable delivery? There are no easy answers but successful cultural organisations tend to be good models of creative social enterprises. They are driven less by the profit motive and more by their commitment to achieve success for their partners and collaborators.

Why should creativity and talent be constrained by market forces?

The study of creative social enterprises also shows that they are more likely to create employment opportunities for prospective artists and creative people who are more likely to go on to social entrepreneurs in their own right. Social enterprises can become secure multipliers of talent and value addition and where the budding entrepreneurs at the helm are able to secure good grounding in research, programme development and the ability to develop capacity, they are invariably successful and brings benefits to the society and the economies of which they are a part. One of the most distinguishing characteristics of social enterprises is their ability to ‘contain’ their creativity on the one hand and to channel their energies to address changing external conditions, that is, their ability to respond to market forces. Does this not sound too much like the language of business and economics?

How can we breathe life into RESIDUE Limited?

One of the most inspiring Asian drama companies that I was drawn to in the mid 1990’s became embedded in history as RESIDUE – Rapidly Expanding but Surely Insecure and Dramatically Undergoing Extinction. They were also a social enterprise but they created unlimited innovative productions for themselves; they were multipliers of output which mostly did not reach markets and when they did, they played to the same people every month. They were an enterprise without a rudder and they liked to go to the edge of the Victoria Falls each month only because they became predictable in blaming everybody else for their giant leaps to oblivion. The problem is that there are many creative cultural organisations which share the properties of RESIDUE.

What are the Seven Principles of Success?

During the next few weeks it would be good to study the RESIDUE type of cultural organisation only because they provided interesting pointers to failure. A very good friend who works as a banker in a high profile and well known company sent me a presentation featuring the Seven Principles of Success. Creative cultural social enterprises should do well by following these seven principles.  Can you help to identify them?

The Economics of Dance

The Arts Council have just published a seminal report following a consultative study known as Dance Mapping. This study started just as I was warming up to produce a series of papers on dance as an economic enterprise. I was lucky to be involved in the Dance Mapping Consultative Panel but unfortunately I could not work regularly with them owing to other unforeseen developments. What do the outcomes of Dance Mapping tell us about the vibrant and highly visible dance ‘sector’ in the UK economy? What is the size of this market and how does the study provide guidance on how to cross narrow bridges over dangerous precipices in the deserts of ice? Are there special lessons to be learnt by DEADCO of the dance world (Desperately Energetic Asian Dance Companies) if they do not learn to respect and respond to market forces as well as TESCO does?

Some of the vocabulary of ‘race equality’ betrays yesterdays’ thinking

I have been away for far too long. My visitor statistics show that a good number of you have been reading this blog. I think I do owe you a regular service! Many years ago I used to run a course on time management for senior directors and chief executives. They hated me for bringing up the issues but liked the content of the course.  

During the last few weeks I have been talking to many people in the cultural sector. In assessing these conversations, I have also formed some ideas on how I want to raise a few issues on this web log. The issues that have come up are:

 ·         Audience research and development: A client spoke at length about how attendances are falling in his concerts and why they cannot ‘afford to waste money on these esoteric exercises that the Arts Council is so fond of’. Ah well. How much does it cost to build audiences? Is everybody talking about the same things? Are we all asking the same questions, I mean the right questions? 

·         Race Equality: I did a presentation for a major client and shared my thinking with them. I think some of the vocabulary of race equality betrays yesterday’s thinking. Now, don’t get me wrong! I am fully committed to diversity and I do spend a great deal of my time promoting and implementing it in my own work and for my clients. But I think that for those people who are converted and creative and like to approach the issues imaginatively, the vocabulary of diversity should no longer suggest that it is an unpleasant imposition. Respect for equality is critical starting point and must form the basis for organisational development. How we develop audiences by carefully integrating diversity into policy and planning is a challenge. The recent review of diversity in drama and theatre left unpleasant messages. How are we going to tackle them? I am planning a conference.  

·         London 2012.  We are going through exciting times and many people are approaching L2012 with vigour. I think we need to share our thinking and benefit more from synergy. I am going to get the ball rolling in future posts.  

·         Networking and partnerships.  Asian Arts Access, the organisation that I launched in 1989, made its mark by challenging some of the thinking on networking. A large number of arts and cultural organisations have produced excellent track records during the last 15 years by developing network thinking and implementing it with discipline and vigour.  Its time for stocktaking.  

But, by the way, where is my book on time management? I need to read my own notes.

DCMS Creative Economy Programme (CEP)

Creative Economy and Diversity  

DCMS has been leading this major initiative which is aimed at identifying opportunities, proposing strategies and recommending actions for sustaining the role of the creative industries in economic development in the UK.  The work of CEP has been progressed through specialist working groups which have been working on the following key areas during the last few months: 

• Infrastructure
• Competition and Intellectual Property
• Access to Finance and Business Support      
• Education and Skills     
• Diversity      
• Technology     
• Evidence and Analysis 

A draft report, which forms the basis for an extensive consultation highlights the benefits of “creating a level playing field between all groups and practices whilst bearing in mind that as with all complex problems, there is no single proposal that can provide a solution.  The best approach to diversifying the creative industries is to understand the people and businesses we are dealing with, identify the barriers to greater diversity, and take action on all of the barriers simultaneously.  But, by focusing on skills and chances that minority groups seem to find particularly challenging the proposals are likely to work in their favour.  In the short term, this may benefit the same groups currently profiting from the creative industries.  In the long term it would tackle deeper systemic problems, providing a wider range of groups with a route into employment and more support for achieving their potential.  There is scope to tailor these recommendations to the needs of specific groups where they are seen to face a particular challenge”. 

The Diversity Working Group has identified a number of priorities for action. These will be discussed in future posts and consist of:

• Learning     
• Choices      
• Skills
• Access
• Opportunities      
• Infrastructure      
• Leadership, and      
• Market Making  

I am a member of the DCMS/CEP Diversity Working Group, which has published its draft report for consultation and also produced an executive summary. These reports, which are now public, inform the critical debate that I intend to progress here. Links to the documents are provided below. 

Key Links:  

The link to the main site for the DCMS Creative Economy Programme is http://www.cep.culture.gov.uk  

The link to the full reports of all working groups is http://www.cep.culture.gov.uk/index.cfm?fuseaction=main.viewSection&intSectionID=340  

The link to the full draft full report of the Diversity Working Group is http://headshift.com/dcms/mt/archives/blog_36/Diversity%20-%20final.doc  

The link to the draft executive summary of the Diversity Working Group report is http://www.cep.culture.gov.uk/index.cfm?fuseaction=main.viewSection&intSectionID=340

Creative Economy Programme

DCMS Creative Economy Programme

The Government’s Creative Economy Programme is summarised as follows on its website at http://www.cep.culture.gov.uk

” The Creative Economy Programme aims to make the most out of the great creative talents thriving all round the country, and is the first step in its goal of making the UK the world’s creative hub. The Programme is now entering a stage where its goal is to produce a Government policy paper for the Creative Industries. We want this paper to

• Raise awareness and understanding of the Creative Industries
• Set out a vision for the Creative Industries which can be shared at a national, regional and local level and across the full range of stakeholders
• Produce policy ideas for improving the productivity of the Creative Industries, and making them fit for purpose
• Produce some brilliant and innovative projects in partnership between organisations

This policy will first be introduced as a Government consultation paper allowing all stakeholders a chance to contribute further.” I have been working on the CEP as a member of the Diversity Working Group and have also been following the developments in other working groups. an executive summary. I will be discussing the key outcomes form this important work here. Please see the page, marked Creative Economy to access the draft report. It is included in the list of pages shown in the top right hand corner.

 The full report of the Diversity Working Group, along with the reports of the other groups can be seen at http://www.cep.culture.gov.uk/index.cfm?fuseaction=main.viewSection&intSectionID=506

What are your reactions? I welcome your comments and feedback.

Note: This site is independent and does not reflect the opinions of any groups and organisations with which I am connected.

Markets

The Markets for Culture and Creative Diversity

 In the UK, the markets for culture are not homogeneous.  There are creative and diverse producers who are producing artistic work to reach markets; all markets are culturally diverse, where the content and extent of diversity varies according to time and place.  All producers are culturally diverse, not just the people from minority backgrounds. Any mainstream producer working for the BBC, a mainstream media producer as well as a market, also aims to produce work for a diverse market. The producer may even target certain pieces of work to address sub-sets of the main BBC market. Just as mainstream producers aim to serve the needs of a large and rich mainstream market, they also target their work at the culturally diverse markets at the same time. There are culturally diverse producers who do the reverse – they aim to serve the needs of the main market and many do succeed.  Applying this analysis to geographically defined markets, there are a  large number of diverse producers who produce their work for the UK main market and its various subsets. It is a large market with high levels of purchasing power to attract work from outside the country.The UK market also consists of several subsets which attract only certain pieces of work.  This process of targeting markets also extends to world markets, which are also not homogeneous and which also have sub-sets of markets.  

Analysis

Objectives of the Critical Debate 

There is a need to identify new approaches to the definition and expression of creative diversity.  This forum for creative diversity does not suggest a  single definition which ‘fits’ all situations and contexts of planned initiatives, ongoing projects and strategic development of arts production, educational projects and programmes and organisational development initiatives. For us, creative diversity is a continually evolving concept and its adoption and reflection in arts and cultural presentations is based on innovation and experimentation. We are interested in promoting and sharing new approaches and for reaching new and existing audiences. We are interested in disseminating information and promoting critical debate on

• What  are the emerging definitions and expressions of creative diversity? We believe that there is no single definition that meets the requirements of wide cross-sections of commissioners and presenters of culturally diverse work.

• How  arts and cultural organisations are engaging people from different backgrounds in the definition and presentation of new work that is aimed at culturally diverse markets and audiences. This includes the adoption of policies and frameworks for integrating diversity into an organisation, the recruitment and selection policies and retains paid staff and volunteers at all levels of their organisation.

• How boardrooms, senior management and sponsors are ensuring that cultural diversity policies reflect a major commitment to diversity and how policies must be strategically driven and become proactive in their implementation.   ·       

Focus

 Are you working to develop Creative Diversity?

This is a term we use to promote the creative development and promotion of cultural diversity in the arts, business and professional organisations. Are you interested in influencing the development of action-led-programmes and the formation of partnerships? If so, now more than ever before, diversity planning and development warrants a new and in-depth look at resources, especially human resources. For further information on recruitment, please see ‘About Creative Diversity’ above. Creative Diversity Planning starts with a challenge of the strategic objectives for the business plan. We then examine the structure for delivery. Next, detailed attention is given to resource management, especially the human resources. A challenge of systems and procedures follows to ensure that the systemic functions in the organisation are helping to maximise the gains from creative diversity.The objective setting exercise should have set clearly defined and measurable targets for attainment. We examine the monitoring and evaluation process to ensure that performance management is working effectively. Finally, we recommend action to ensure that the organisation is steered effectively to remain on course.