Mr. Harrington introduced me as a management consultant, which I am, but let me say at the outset that no one realizes better than I the hazards of trying to run cultural and art operations as if they were business organizations. That is something you cannot do, and we never advise our clients that they should. Sound principles of management are, however, applicable to nonprofit organizations, and good management is of the utmost importance to them. Experience has shown that much can be done to improve management in the performing arts without impairing the cultural or artistic ends to be served.

It is essential for an arts organization to have an effective board of trustees and competent management in addition to talented artistic direction.

Sound management appeals to donors who prefer to support an organization that is well run to one that functions in a state of chaos. Arts organizations cannot be run like profit-making enterprises, but there are efficient and there are wasteful ways of handling money entrusted to nonprofit organizations. There are orderly and disorderly ways of operating and, in the arts, we are talking about annual budgets that range all the way from a quarter of a million dollars to over two million dollars - substantial amounts of money. (p. 129-137)

  1. Approach to administration.
  2. Need for long-term planning.
  3. Need to establish objectives and develop plans for reaching them.
  4. Need for analysis of the audience to be reached.
  5. Problems involving the governing boards.
  6. Problem of subjectivity in management.
  7. Problems of administrative organization.
  8. Unwillingness to face up to difficult decisions relating to unsatisfactory personnel. 
  9. Failure to pay what good management costs.
10. Problems of outmoded financial administration.
11. Problems in the areas of supporting services.
12. Outmoded systems and equipment.
13. Problems relative to contractual arrangements.
14. Poor customer relations.
15. Failure to organize the membership and to make effective use of volunteer strength.
16. Ineffective handling of fund raising programs.