The arts sector may have the stigma of limited business acumen, but when delving a little further into the cultural world it becomes clear that business nous is critical to running a successful arts operation in the modern era.
Last week, Culture and the Arts Minister John Day announced that the Perth Institute of Contemporary Arts would continue its operations beyond 2010 with renewed support by way of strategic management consulting from the state government.
Yet no additional funds will be put towards PICA and the performance space and program will be managed within the existing budget, while a reduced program will be adopted for the next 12 months to allow PICA to meet it’s financial responsibilities.
The announcement came after speculation earlier in the year that PICA would close due to a lack of funding – whispers that had Perth’s arts sector concerned given the prominence of PICA in the state.
The PICA board renewed its commitment to operating the performance space and delivering its own multi-arts program, operating as an exhibition and performance space for artists and other organisations.
PICA chair Margaret Moore said the board recognised its role of stewardship of a publicly owned building and the organisation’s commitment to artists, companies and audiences underlined the board’s decision to maintain artistic management of performance at PICA.
“The board embraces a long-term view in surmounting the current operational challenges and welcomes the support of a consultancy led review of PICA’s position and direction.”
PICA is not the only arts organisation having to adopt a hard-nosed approach to business performance.
While Fremantle-based Deckchair Theatre received renewed funding from the Australia Council for the Arts last year on a triennial basis, along with continued support from the Department of Culture and the Arts for the triennium, the company had to actively diversify its income streams.
Deckchair had to restructure its program earlier in the year after it had a shortfall in box office income and sponsorship revenue.
In the company’s latest (2009) annual report, chief executive Chris Bendall outlined diversifying its income streams as one of the core aims of the company across the next 12 months.
This will be achieved by increasing revenue through philanthropic funding, corporate partners, private donations, education programs, venue hire and bar sales, increasing subscriptions and by regaining financial support through the Australia Council for the Arts.
