BKMAI 4-6 Theory of Change

The Barr-Klarman Massachusetts Arts Initiative Draft dated 08/01/2022 ZEITERION PERFORMING ARTS CENTER – BKMAI Years 4-6 Theory of Change (Fall 2021 – Fall 2024) Problem Statement: Founded in 1923, Zeiterion Performing Arts Center (“The Z”) has become a cultural destination in New Bedford encompassing decades of history while being dedicated to nurturing the next generation of artists and entertainers.

Amidst continuing shifts in the local community, performing arts world, and economic landscape, The Z must think about how to broaden its reach and remain relevant in the life of its community.

Goal Statement: With support from the Barr and Klarman Family Foundations, Zeiterion Performing Arts Center seeks to: (1) establish a better understanding of its financial data; (2) clarify and communicate its sense of self and place in order to remain a relevant institution in the local community; and (3) become a better, more culturally aware community partner. The Z believes strengthening the organization in these areas will allow it to better fulfill its mission of being a cultural destination that nurtures the next generation, engages the community, and energizes the city of New Bedford.

Goals

What is the longterm change you wish to see as your goal in this area?

Financial Health: 1. Establish a better understanding of financial data so that the organization can make informed financial decisions and identify areas of improvement.

2.Improve the Z’s capitalization position.

3. Identify types of capital needed during and after improvement project

Assumptions and Background

Why do you think this goal is the right one?

The Z has not had a good understanding of our financial story up to this point due to staff capacity and resources.

Gaining a better understanding of the “story” told by financial data will allow for informed decision-making that will support financial stability.

A better understanding of historical data, and a better system for making decisions in real time, will have significant benefits for future planning.

In order to be considered financially stable, the Z needs to make programming decisions without worrying about cash flow.

Maintaining financial stability will allow the Z to take more artistic and financial risks in their programming.

Having a degree of risk-tolerance is a sign of financial health for the organization.

Strategies and Tactics

Outputs

Outcomes

What organizational and programmatic steps will you need to take to bring about change in this goal area?

What will be the measurable effects and direct products of your organizational and programmatic steps? What is the approximate timeframe (i.e. years) for when you expect to see these effects or products?

What are the wider benefits of your organizational and programmatic steps? What is the approximate timeframe (i.e. years) for when you expect to see these wider benefits?

(Note: it could be beyond the 6-year Initiative.)

FY24 Hire a Director of Finance

The Z has a clear picture of the impact of its season programming on its overall P&L.

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The Z will take the following steps to better analyze their financial information: Hiring a consultant or staff person to perform analysis on financials and make recommendations based on the findings Investing in software that would assist in capturing and analyzing data Establishing in house analysis processes by tapping into the skills and expertise of staff and/or providing further training for staff Informed by financial analysis, The Z will establish criteria for a framework which will inform their decision-making around programming and risk-taking.

2. Identify and improve on areas of potential increased revenue: • e.g: Planned giving, major gifts, leveraging building’s capacity for rentals, concessions, analysis of market in relation to ticket prices, advertisement, and sponsorship opportunities • Identify strategies and formulas that maximize the net potential of each revenue stream • Develop a new organizational chart to account for long-term staffing (postCOVID + post-renovation) and interim staffing (post-COVID, pre-renovation).

Implement zero based budgeting process that includes: • Identification of goals and priorities for upcoming fiscal year • Equity goals built into budget (see equity section) • What programs need funding, what programs are covered by earned revenue • New staff positions

Create a decision-making framework around programming and risk-taking by FY 23.

By FY 23, use financial analysis to: • Build in discounted and free ticket projections to individual programs’ revenue projections.

• Identify programming mix within a given season that will lead to financial stability.

• Identify the room for risk within a given season portfolio.

By understanding the impact of season programming, the Z will be better able to make projections – financially and in terms of audience size.

The Z will be able to take more risks in programming while maintaining financial stability throughout a balanced season.

The Z will have indicators for where future resources are needed; more longterm financial awareness.

By FY 23, expand analysis to focus on other potential areas of revenue.

By FY 24 identify dollar related outcomes for cash flow, risk-taking and increasing all revenue streams

FY23, board approves operating reserve

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The Barr-Klarman Massachusetts Arts Initiative Draft dated 08/01/2022 ZEITERION PERFORMING ARTS CENTER – BKMAI Years 4-6 Theory of Change (Fall 2021 – Fall 2024) Risk-taking will encourage organizational growth and development, as well as contributing to the evolution of the Z’s artistic voice in the community.

If the Z is fully capitalized its future would be more secure; we could consider an endowment or reserve fund;

Goal 3: • create a policy and structure for an operating reserve to be presented to the board • create a plan to deploy operating reserve during year prior to, during, and after construction Goal 3: • Build structure for facility reserve • Consider facility fee added to ticket purchase

FY23, begin zero based budgeting practice (see equity goals) for the FY24 budget

An operating reserve is necessary during construction phase of capital improvement project and for at least one year after reopening All programming should be considered and evaluated holistically with mission impact at the center despite having different economic structures behind each program There are areas of untapped potential in both earned and contributed income revenue streams; financial analysis will help the Z identify these areas and develop strategies to address them.

Currently The Z is reliant on ticket sales from mainstage programs (50+% of revenue); shifting balance of revenues so we’re not too dependent on one source will make the organization more resilient and adaptive

Adaptive Capacity: 1.

Articulate and communicate the core values that define the Z and inform strategic decision-making.

2.

Strengthen existing community bonds to fortify the Z’s integral role in the

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The Z has an identity that is not fully communicated internally or externally.

The organization has a shared sense of core values and principles, but these must be distilled and tweaked to support decisionmaking.

A distilled set of values, communicated externally, could support stronger community bonds.

The Z will use/be guided by a set of core values that inform its decision-making. Value based metrics will be identified that include: • How does the Z define “success”? What are the dimensions it cares about?

• Given this definition of success, how does the Z define and deal with “failure”?

In addition to stated values, The Z will be specific about terms and definitions to ensure that everyone is working from the same definition Enacting Values: • Identify behaviors and outcomes for each values • Use values in decision-making, program development, and organizational culture • Review employee handbook and update with intention of defining and communicating organizational culture and values

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Conduct market research by FY 21 [see equity]

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Review and distill guiding values by FY 21. [in progress]

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Determine next steps for using guiding values in decisionmaking processes by FY 21.

FY23: operationalize values with a set of behaviors that define internal culture [in progress]

The Z feels that it is a relevant and leading performing arts center in the community; this sentiment is reciprocated by the communities it serves.

The Z is able to make long term, mission and identity-driven decisions based on a clear understanding of their goals and values as an organization.

The Z gains a broader range of experience from expanding opportunities

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The Barr-Klarman Massachusetts Arts Initiative Draft dated 08/01/2022 ZEITERION PERFORMING ARTS CENTER – BKMAI Years 4-6 Theory of Change (Fall 2021 – Fall 2024) community regardless of changes in programming or economic landscape.

Organization practice would benefit from a shared definition of “success” that encompasses more than revenue and attendance.

2.

The Z has connections in its local community but wishes to create deeper bonds that persist through external change.

We need a more adaptive, proactive programming model—challenging the traditional ways we book touring artists. If we’re truly going to serve our community, we’ll need to be more creative about how we engage partners.

We need to invite partners and stakeholders into the formation / creation or our work, rather than just building it and then asking to show up: shifting from “we built this for you” to “we built this together.”

The Z will take the following steps after compiling data on their market: • Contract an expert to aid in analyzing the data • Foster an internal culture of listening to the community and thinking about how that informs The Z’s identity and core values.

• Use said data to determine what people who live in the community are looking for.

Use these findings to inform core values and other decisions rather than relying on anecdotal evidence.

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New tactic: Hired a business continuity / emergency preparedness consultant, which will help us boost our adaptive capacity not just to respond to the crisis but to help plan for the future.

FY23 Tie values to work plans

because of being more open to taking risks and failing.

FY23 Update employee handbook

FY23, new Strategic Plan complete with organization wide goals and metrics

Hire a strategic planning consultant to: • Set a 5-10 year vision for the organization • Develop a three year strategic plan in a participatory process that includes board, staff, and community members • Develop overarching goals and metrics for org that inform work plans for staff/programs/etc.

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The Barr-Klarman Massachusetts Arts Initiative Draft dated 08/01/2022 ZEITERION PERFORMING ARTS CENTER – BKMAI Years 4-6 Theory of Change (Fall 2021 – Fall 2024) In order to achieve its goal of engaging the community and energizing the city of New Bedford, the Z needs to build stronger social bonds with the community it serves Existing community partnerships and connections offer the Z a strong starting point, but more internal training and planning is needed in order to thoughtfully broaden the Z’s reach into the community.

Equity: Improve our ability to identify, listen to, and reach the cultures in our community.

We believe that focusing on antiracist work and becoming an antiracist organization will enable us to tackle broader issues of equity and justice.

We’ve been challenging our definition and assumptions around the word “community”— and wondering whether we need a different word that allows for greater specificity and intention.

Sometimes we were using “community” as a code word for subordinated groups / underserved populations.

We are a white dominant organization that has traditionally made decisions based on that whiteness and we need to challenge that thinking and way of doing

We have to be explicit about intersectionality in equity goal: anti-racism, LGBTQ, economic, abilities, gender identities – umbrella being all group identities racism and white supremacy are the most oppressive power dynamics present in the nation and shaping our organization—and therefore, the most imperative work. The shift in the national conversation forced and allowed us to get specific on our language and rationale.

The Z has the following initial hypothesis about the steps it will take to achieve this goal: • Determine if the Z should invest resources in directly reaching a particular community, versus connecting through other affiliated organizations.

• Engage in training programs to be better informed about the communities they wish to engage with.

The Z has the following hypothesis about how to build relationships with local communities: • Rather than approaching groups with programming, listen first • If it is more beneficial, connect communities to partner organizations rather than the Z holding the relationship (act as facilitator and convener rather than programmer) • Programming partnerships will help to build stronger bonds with smaller arts and social service organizations, positioning The Z as a resource and a capacity builder Incorporate equity goals into financial budgeting process (moral document) • Implement zero based budgeting process • Set goals for each of the three years covered by this Theory of Change • Identify financial implications of those goals • Include in budget with funding opportunities Analyze organizational chart structure to create a more equitable, transparent, inclusive organization: • Evaluate current salaries and payrates • Develop structure for salary bands and make them more transparent • Publish salary with job postings Strategic Plan – equity will be the central component and lens through which the organization’s strategic plan will be formulated Establish anti-racist values, goals, commitments, and metrics that we can be held accountable to (i.e. APAP 10/20/30)

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FY20: Complete BKMAI cultural competency training [complete]

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FY22 Market Analysis that addresses perceptions of The Z as it relates to community engagement/racial equity/inclusion

FY23 Strategic plan that embeds equity into all facets of the organization [in progress]

the z is a place where the rich mix of cultures of NB are reflected in programs, audience, board, staff, and supporters The Z is an accessible, inclusive place where everyone belongs

FY23 Analyze management structure of org and salary bands [in progress]

FY22-24 Transition away from “membership” program

Transition Membership program: build equity and inclusion into philanthropic goals of the organization; no more “the more you give the more you get” mentality

This work is ongoing, deeply embedded, and never complete

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The Barr-Klarman Massachusetts Arts Initiative Draft dated 08/01/2022 ZEITERION PERFORMING ARTS CENTER – BKMAI Years 4-6 Theory of Change (Fall 2021 – Fall 2024) Other strategic priorities (optional):

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