International Association of Libraries and Museums of the Performing Arts

Société Internationale des Bibliothèques et des Musées des Arts du Spectacle

Commercial Reality - Improving the Bottom Line

Professor Terry Stevens
Steven & Associate
(Heritage and Tourism Consultants)

Winds of Change - New Technology

21st International Congress

Helsinki, 31 August - 6 September 1996

Content of Presentation

This will be primarily a visual presentation using both acetates and transparencies. The aim of the presentation is to raise awareness of the opportunities to exploit new sources of revenue income and capital funding for museums and heritage attractions. the presentation will explore success stories and examine the positive and negative aspects of these plurality funding strategies. A wide range of examples will be used to identify good practice and to explore the issues associated with some of these activities.

The primary objectives will be to stimulate ideas about the new commercial reality facing museums and to provoke discussion amongst the audience about the issues and the opportunities. There will be little theory, rather the emphasis will be upon the translation of ideas into practice.

The presentation is not, however, designed to solve the financial problems facing museums.

Given the particular focus of the conference, special attention will be paid to the role of new technology in assisting museum professionals achieve better financial management and produce opportunities for merchandising and other secondary sources of income. This will draw upon the results of the 1995 European Union's 'COMETT' programme entitled, "The Future of Europe's Past - New Technology and Heritage Tourism" (James and Stevens 1995).

The following schedule will be used for the presentation. The attached figures will be used as the acetates and the basis for the lecture.

Introduction

• Background of 25 years professional experience planning and managing heritage and visitor attractions, including World Heritage sites, the Welsh Folk Museum, and a major outdoor sculpture park
• Reflections on the changing pressures on managers of heritage sites and museums in a cost-conscious environment
• Some anecdotes and basic laws of commercial visitor attraction management

Museums in a Cost-Conscious Environment

• Changes in public sector funding and accountability
• The need to improve management within museums, especially financial management
• The search for alternative sources of capital funding
• The search for alternative sources of revenue funding
• The objectives of raising finance and being self-sustaining

The Marketing Context

• Product and pricing
• Visitor needs and expectations
• The competitive environment
• The response of museums

Plurality Funding - The Future for Museum Funding

• Sources of revenue in detail and the implications of developing a pluralist approach
• The need for strategy, planning and management
• Responding to visitor needs and expectations
• Examples of good practice
• The potential of new technology in assisting these strategies

Words of Warning - Opportunities, Dangers, and Issues

• A review of the wider benefits and the opportunities for developing new revenue streams
• The dangers associated with some of these activities in the context of museum ethics and traditional management
• The issues associated with the development of alternative funding sources

Conclusions

• Summary of the main findings and the key issues to emerge
• The challenge to the museum profession in the next five years "Improving the Bottom Line"

Pluralistic Funding

Developing the Typology

Lease of Land or Buildings

Key Qestions

Are museums sustainable without significant contiiibutions of public money?

How far can you diversity the revenue base before you compromise the core business?

Sourcing new revenue streams demands resource commitment - what are they?

Sources of revenue income - a typology

• Direct
• Admissions
• Retail
• Events
• Catering
• Private hire
• Interpretation
• Lease

"...we have to go out and make money for ourselves... I feel the evil of admission charges is a lesser one than further decline..."

Dr. Neil Cossons, Director, National Maritime Museum, Greenwich

Ways of Seeing....

Providing opportunities for generating income actually enhances the overall experience...

• Visitors wish to commit to muesums
• Enhancing the experience
• Increases satisfaction
• Meets basic needs and interests

Danger Zones...

• Distraction from primary purpose
• Revenue strategies lead planning
• Copycat solutions to unique problems
• Censorship and influence

Issues

• Staff acceptance and training
• Reliability of new sources
• Strategic planning essential
• Cost control balanced with income generation
• Budgetry controls and incentives

OHP

"... If one is serious about reconciling opposites we must remain open to the possibility of balancing the core purpose of a knowledge based organisation with one or more businesses... doing this will require a firm sense of purpose, the necessary expertise to operate commercial activities, and the unswerving commitment to the fact that the business ventures exist to serve the Museum and its needs and not the other way around..."

R. Janes
Museums and the Paradox of Change 1996

References

Allden, A. & A. Ellis: "Management - The Flavour of the Month". In: Museum Development. November 1990

Boylen, P.: Museums 2000. Museums Association 1992

Corner, J. & S. Harvel: Enterprise and Heritage. Routledge 1991.

Griffiths, B.: "Financial Management". In: R. Harrison (ed.) The Manual of Heritage Management. Butterworth 1994.

Harrison, R. (ed.): The Manual of Heritage Management. Butterworth 1994.

Herbert, D. (ed.) Heritage Tourism and Society. Mansell 1995.

Hooper-Greenhill. E.: Museums and Their Visitors. Routledge 1994.

Janes, R.: Museums and the Paradox of Change - A Case Study in Urgent Adaptation. The Glenbow Experience. Calgary: The Glenbow Museum 1995.

Moore, K.: Museum Management. Routledge 1994.

Seaton, A. and M. Bennett: Marketing Tourism Products. Thomson 1996.

Schouten, F.: "Improving Visitor Care in Heritage Attractions". In: Tourism Management. Vol.16. 1995.

Stevens, T.: "Heritage as Design". In: Herbert, D. (ed.) Heritage Tourism and Society. Mansell 1995.

Professor Terry Stevens
Stevens & Associates
Coastline House
Corporation Road
Loughor
Swansea
SA46D
Tel (44) 1792 229090
Fax (44) 1792 899467

21st Congress

URL: http://www.sibmas.org/congresses/sibmas96/hels01.html