Fixing Symphony Orchestras

Introduction
A friend was recently bemoaning the problems with his community's symphony orchestra. It got me thinking about approaching this problem strategically. I quickly put together my thoughts (see below). I think this is a good example of how to:

     1) Structure A Problem
     2) Establish Key Assumptions
     3) Develop Hypotheses
     4) Look for Analogies and Context
     5) Use Storytelling

After all, if you do not structure the analysis properly, you may not get the right answer for the right problem.

Core Assumptions

First, let’s start with a couple of core assumptions:

Core Assumption #1: Performance Art is Not Dead

There are lots of performers out there making tons of money, like the Dave Matthews Band and Circ de Soleil. Brittany Spears just sold out an extended engagement in Las Vegas.  So the problem is not being in the performance industry. Many have found a way to mine it for large profit.

Core Assumption #2: This is Not Just a Problem for a Single Orchestra

Location-based symphony orchestras all over the US are in trouble. The problem is not just what’s happening in in your community. The entire location-based symphony orchestra model (as currently operated) is broken.

So the problem to be solved is this: How do you change the symphony business model so that it can be more like that of successful performance artists?

Key Hypotheses for Orchestras

Now, let’s look at some key hypotheses about the problems with the Symphony business model:

Hypothesis about Performance Symphonies #1: The Target Audience is Small

Symphonic music has a fairly narrow appeal. There’s a reason why most classical music radio stations are heavily subsidized (including tax dollars). There’s not enough demand. “Pops” orchestras who perform with guest artists (outside of classical music) with a wider draw exist because the purer symphonic appeal isn’t large enough. It’s difficult to make a lot of money off your target market if the market is too small.

Hypothesis about Performance Symphonies #2: The Current Performance Approach is Not Very Compelling

The current typical symphony approach only offers the customer two things: music and snob appeal bragging rights (I was there with the elite crowd). The problem with the music is this:

1. As mentioned earlier, this form of music has a narrow appeal.
2. Most of the music is old stuff, performed hundreds of times by hundreds of others. There is no compelling reason to be at this particular performance of that music at this particular time.
3. You can get superior recordings of the same work by better performers to listen to in the comfort of your home for less money. So if you only want to hear the music, you have better alternatives.
4. Sometimes more obscure works are added to the mix, but usually there is a reason why those works are obscure—they aren’t as good. 

The problem with the snob appeal is that there are superior ways to achieve that snob appeal:

1. You can go to the traveling Circ de Soleil or Broadway Shows when they come to your town (which have similar bragging rights while offering what many consider a more compelling performance); or
2. You can travel to the meccas of performance art (Broadway, Carnegie Hall, Las Vegas, etc.) and get double bragging rights for the performance and the trip.
3.  In today’s social environment (particularly with younger generations) the status bragging rights are moving from consuming high culture to improving social conditions. They get more status capital out of going to Africa to build a school than in being seen plopped in a chair at a symphony (better stories to brag about and seen as less selfish). Getting involved in social causes is taking the place of high performance art as the place to put your efforts to improve your status.

Key Hypotheses for Performance Successes

Now for some hypotheses on why other performance models seem to be working:

Hypothesis About Success Models #1: They provide a reason to be right here, right now.

Some of the most successful touring performing groups that have endured for decades include The Dave Matthews Band, Phish, Ozric Tentacles and The Grateful Dead. They all have one thing in common—they are jam bands. They have a high degree of improvisation in their music. Each performance is unique and different. You never know in advance exactly what you’ll get (even the performers don’t know). This provides a sense of excitement. You never know if this particular performance is going to become the “classic” version of the song that gets talked about for generations.  People follow these bands from location to location for the excitement of hearing the different versions. They need to appear often to make sure they catch the special moments. Each performance has a special reason to be there.

It’s like sports (which is more popular than symphonies). One of the appeals of sports is that each game is different, and you do not know the outcome in advance. Contrast this with symphonies where they practice in order to eliminate the variability and surprise. It becomes a sterile, polished performance which is highly predictable. There is no special reason to be there to witness the surprise, because there isn’t going to be one.

Hypothesis About Success Models #2: They Create Winners and Losers.

Sports would be a lot less popular if they stopped keeping score and did not declare winners. Watching the struggle to win is exciting. Look at TV. The typical variety show format for performing is essentially dead. It has been replaced by contests like American Idol, The Voice and Dancing With the Stars. Performing plus winning is more exciting than just performing. How often do you see a Symphonic Battle of the Bands?

Hypothesis About Success Models #3: They Involve Audience Input.

In today’s social media world, consumers expect to be a part of the process. They want a greater say in what they consume. Successful performers are getting more savvy about this. But even if we strip out all of the technological hoo-ha like twitter, there is the basic idea of taking requests. How many symphonies take requests at a performance? And what would a symphony do if everyone in the audience started singing along with the performers (which is common for other music performances)? Symphonic performances are one of the most passive venues alternatives for their audience. They are expected to just sit there. And that is not good. One of the big appeals at a Springsteen performance was that somewhere in the show he would pick out a beautiful girl from the audience to briefly dance with him on stage. That was a big deal. (I knew a gal who got that honor—she bragged about it decades later—and yes, she was stunningly beautiful). Have you ever seen people rush the stage at a symphony?

Hypothesis About Success Models #4: They Provide a long list of benefits.

As mentioned earlier, symphonies provide only music and status (and perhaps neither one as good as some alternatives). Other performance options provide much more, including:

1. Hero Worship. The “gods” of our culture are found on celebrity gossip shows and in the magazines next to the supermarket checkout. You go to the performances of these people in order to see your god in the flesh (regardless of how well they perform). The local symphony does not have this godlike status to offer for worship.
2. The ability to vent and express our emotions. Other alternatives are more open to yelling and screaming and dancing in the aisles.
3.  A socially acceptable opportunity to overindulge in alcohol (think Jimmy Buffett concerts or a sporting event).
4. The opportunity to experience something new (be there for the first offering). Symphonies rarely do a lot of brand new compositions.
5. And then there are the things mentioned earlier, like experiencing winning & losing, being involved in the process, surprise, and so on.

The more benefits you offer, the greater your appeal.

A Story 

I once heard a lecture by a music professor from Berkeley talking about what classical musical performance was like at its peak (like when Mozart was still alive). The professor said the symphonies of that day were like the National Football League (NFL) teams of today. Each major city had one and people rallied around the local symphony team like we do with our NFL team. Each team had its equivalent of the quarterback hero—the composer. The local composer was part of the local symphony team.  The symphonies would travel to each other’s cities to compete against their local symphony. Each symphony team would pull out its latest composition and perform it. The fans would often travel with the symphony teams to see these contests.

And there were strict rules about how a symphony was supposed to be structured (like the rules in football). And the audience was very familiar with these rules. If the new composition did not play by those rules, the crowds would get rowdy and boo at the symphony. (Remember the stories of the great riots caused by Igor Stravinsky when his Rite of Spring broke too many of the rules?) The professor said that Mozart played very well within the rules, while Beethoven went to the very edge of what the rules allowed. He was sort of like the 1930s Green Bay Packers American Football team who looked at the rules and saw nothing which prevented the forward pass (even though no other team at the time was doing it).

So what can we learn from these earlier performances?

a)      They had superior team bonding with the local community.

b)      They had the excitement of winners and losers

c)      They let the crowds get very emotional and expressive at the performance.

d)      They had the hero worship of the local composer (the rock star).

e)      They played mostly brand new material (the excitement of seeing it performed for the first time).

f)       By getting everyone involved in understanding the rules of play in composition, they broadened the appeal of the music.

g)      There was a compelling reason to be right there, right now because you never knew what would happen.

h)      They made the spectacle much more than just the music.

Conclusion:

Without getting into a lot of detail, I think symphonies need to do more of what they did hundreds of years ago and more of what successful performance acts of today do. They need to broaden the appeal by making it about a lot more than just the music. They need to get the audience more involved in the performance. They need to create winners & losers, heroes and goats. They need more spontaneity and surprise. They need more new stuff.

Strategic Planning Analogy #406: Reference Points

THE STORY
Recently, I was watching an old movie from 1992 on DVD, called “The Player.” The movie is about a guy who works at a movie studio. His job is to listen to writers pitch ideas for new movies. He hears thousands of pitches each year.

Because he has to listen to so many movie ideas in such a short time, he keeps telling the writers to limit their pitch to 25 or fewer words. Well, it’s hard to describe an entire movie in only 25 words, so the writers use short-cuts. Since everybody in the movie industry knows about all the prior movie hits, the writers explain their plots by referring to the other movies it is similar to.

A common approach used in the movie (and in real life) is for the writer to pick a couple of movies the new movie is like (we’ll call them “Movie X” and “Movie Y”) and then pitch their new idea as “Movie X meets Movie Y.”

Of course, the movie exaggerated the absurdity if you try to combine too many concepts.

In the move, a studio executive is trying to summarize a crazy, convoluted movie idea he’s hearing by saying, “So it's a psychic, political, thriller comedy with a heart.”

The writer agrees, saying, “With a heart, not unlike Ghost meets Manchurian Candidate.”

Not all possible movie combinations should be combined.

THE ANALOGY
Just as movies don’t get made unless they are successfully pitched to studio executives, strategies don’t come to life unless they are successfully pitched to management. And just like the movie studios, the business executives you are trying to pitch to are very busy. If you cannot crystallize the essence of the strategy in 25 words or less, the executives may never take the time to grasp what you are talking about.

Therefore, if you want to get your strategy implemented, you need to think and act like those writers trying to get a movie made. You need to use short-cuts—reference points with which your audience is familiar. For example, you could describe your strategy as being like “Competitor X meets Competitor Y,” implying that you want an assortment strategy like company X but add to it the service levels of competitor Y. This short-cut helps management quickly understand what you’re trying to do—in a way that they can easily visualize. And if they like what they see, it is easier for them to implement the plan, because they have those reference points to fall back on.

THE PRINCIPLE
The principle here has to do with reference points. The idea is that reference points can be a strategist’s best friend AND their worst enemy. Therefore, they must be used carefully.

The Benefits of Reference Points
We’ve already talked about many of the benefits of using reference points when pitching a strategy. It speeds the process, it makes it easier for the audience to understand, and it makes it easier for the audience to implement. These benefits occur because reference point help take an abstract concept more tangible.

For example, Zapmeals had an idea to try to get quality food quickly into the hands of people who didn’t want to waste time sitting in a fancy restaurant. Their idea was to use the internet to connect local chefs (who can provide the great meals) with local people (who want the great meals). To pitch the idea, they used a reference point of a success people were aware of: “eBay for takeout orders.”

The Dangers of Reference Points
Although there are many benefits to the use of reference points, there are also many dangers. Reference points refer to what the audience knows. And what the audience knows is what already exists. It is impossible to become an innovative leader if all you are doing is copying what already exists in the industry.

As a result, reference points can keep one locked into minor variations of the status quo, if used improperly. This is particularly true if all of your reference points come from within the industry.

In the worst case scenario, competitors start clustering around the current winning strategies in the industry, because that is the common reference point for success. With all that competition fighting for the same spot, a brutal war for market share will develop. There will be a race for the bottom as everyone cuts prices to gain share. In the end, all will fail.

For example, I knew of a retailer who described his company’s strategy as being like Company X, a direct competitor. I asked him how he planned to differentiate himself that retailer. He really didn’t have an answer. He just saw a successful competitor and wanted to emulate it. The problem was that this competitor already strongly owned that position and there was no way he was going to be able to take the position away from them. Therefore, his reference point was going to make him an inferior imitation—not a formula for success.

Great strategies tend to create business in a space that in currently unoccupied. You won’t find unoccupied spaces if you look for reference points among companies that already occupy a space.

There’s a reason why one finds very few original movies. They all tend to look like other movies you’ve seen before, because the reference points when they were pitched were movies you have already seen before.

Solution: Borrow from Other Industries
To get around this problem, one needs to use reference points which come from outside the industry. That way, you get the benefits of a reference point without all the problems which come from copying what is already in the industry.

As Clayton Christensen has pointed out in the Innovator’s Dilemma, most great new innovations tend to come from people who are outsiders to the industry. They are not trapped by conventional industry reference points, so they can come up with something entirely original.

You can do the same, by searching for reference points outside your industry. For example, I was speaking to someone in the banking industry who was using retailers like convenience stores as a reference point. He liked the way mass oriented retail stores created impulse sales through effective signing and display endcaps. He liked the way they could sell a lot through minimal service by creating self-service. He liked the way customers felt comfortable in a convenience store instead of the uncomfortableness people felt in a bank. He wanted to replace those scary desks in a bank with friendly aisles full of financial packages. In other words, he wanted to be “the 7-Eleven of banking.”

So, spend some time looking beyond the walls of your industry. Think about how others do their business. Look for principles you can transfer to your industry.

The idea here is to look for successes in areas totally unrelated to your industry and envision what would happen if you applied their success formula to your industry. It may turn out that a full space in one industry is actually an open space in your industry.

It is so difficult to get management to embrace a strategy in a space that is empty (they say “if it is so good, why is the space empty?”). Therefore, if you can point to tangible examples of other industries where that position is very successful, you have a better shot of selling the idea.

SUMMARY
Great strategies need to be sold before they can be implemented. And it is easier to sell the idea if you can relate it to a concept the audience already understands (a reference point). The trick is to look for comparison insight outside your core industry. Otherwise, you will end up just copying one of your competitors and become a weak imitation.

FINAL THOUGHTS
With over 400 of these blogs, I have shown how easy it is to understand complex strategic principles by finding analogies in unrelated fields. This same approach can be used to sell your strategy. Find a great analogy and then your selling process will be a lot easier.