You Want to Fly Who?! Avoiding Surprises in Production Costs
It’s probably happened to every theater producer. You think your expenses are under control. Ticket sales may be booming or they may need a kick in the seat, but production costs at least are manageable. Then—like bad Shakespeare—expenses come out of nowhere. Petty cash is nearly disappearing out of the box. Receipts for reimbursement are piling high. Your designers want to order ostrich feathers, moving lights, fog machines, and goldleaf paint—or they have already. And your director is adding costumes, sets, cast members, and talking about flying characters that you never imagined leaving the ground.
How does a producer get back in control of expenses? It’s possible, but it takes moving back a few steps to do it best. Here are some ideas for managing production costs.
- Read smart. A producer should be able to read a script and estimate production costs. It’s easy to count the characters and set locations, but there are dozens of other clues in a script too. Is the show set in a specific period or location? Anything other than modern costumes and common locations may cost more than expected. Are there costumes changes? Is any special make-up necessary? Are there any unusual set pieces or props that may need to be bought or built? How about special effects? Even without plotting a light design, it may be possible to guess if any specials may be needed. How about things like fog, haze, pyrotechnics or flying? Each of these effects can drive up a production budget. Knowing what costs to expect when first reading a script is the first step in avoiding surprises.
- Get the director involved early. A producer should have a good idea of what sets, props, lights, costumes and special effects may be involved in a production, but it’s the director who actually decides how the show will look on stage. To ensure that a producer and director are on the same page (and have the same production in mind), get a director involved in planning and budgeting early. Budgets of course may be limited or already decided and approved, but carefully reviewing a production budget with a director lets both parties know what to expect. If the production budget is already set, give the director a copy and ask about any possible shortfalls. Nine times out of ten, the director will say that it’s not enough. In that case, talk about plans for casting, sets, lights, props, costumes, and effects and how the budget can best be used. If possible, borrow from one production area to fund another—taking money from lighting for example to add to costumes. Having the director aware of the budget, and being aware of the director’s vision, could save some conflicts later on.
- Attend production meetings. Meetings with a director and budget discussions shouldn’t stop after a first budget review. Once designers and other artistic and technical staff are involved, part of regular production meetings should involve reviewing the budget. If any new production elements are asked for or added, discuss whether the remaining budget will cover the cost. If one element of production appears to be going over budget, discuss whether there may be savings available in another area. Staying in contact with the director and designers is the best way to estimate how production costs may end up—and there’s no better time or place to do that than at production meetings.
- Set—and follow—strict guidelines for petty cash, purchase orders, and receipt reimbursement. Chances are that even with budgets set, reviewed and approved, someone will need, order or buy something unexpected that threatens to throw off the budget. This is what rules are for. The first production meeting should include a discussion of how petty cash is distributed, how purchases are to be made, and how receipts may be reimbursed. If there are limits to how much petty cash is given at once or to whom, say it up front. If purchase orders are required, emphasize that and explain the system—and (this is important) communicate to regular vendors when purchase orders are required so that nobody can go around the rules. If reimbursements are made only up to a certain amount, say that up front too. A producer shouldn’t be responsible for a team member who spends more that what was authorized and expects reimbursement. Set rules and explain them—whether it’s that the guilty party must return the item, be responsible for the cost, or be reimbursed only if budgeted funds are available at the end of the production.
- Go to rehearsals. Like attending production meetings, going to rehearsals is one of the best ways to track and estimate costs. If the director is talking about scene changes, costumes changes, or effects that a producer didn’t know about, bells and whistles should go off. I don’t recommend confronting a director about this during a rehearsal or in front of the cast, but there should certainly be some discussion later. Very likely though, if a producer has been meeting with the director and attending production meetings, there won’t be any surprises. Going to rehearsals has other benefits too—it communicates to the director that you’re involved, supportive and available. It sends the same message to the stage manager, designers who may be at rehearsals, and production staff, cast and crew.
- Hold post-mortem meetings. Whether everything has gone perfectly right and come under budget, or gone horribly wrong at many times the expected cost, a post-mortem production meeting is a good idea. If there have been problems, everyone involved should discuss what went wrong and how to avoid it happening again. The meeting shouldn’t be about finding or placing blame—it should be about finding solutions. If communication was a problem, be honest about that and ask for input on ways communication can improve. On the other hand, if something went especially right—particularly if some new problem was worked out or a new way to do something was involved—that should be discussed too. In that case, you want to be sure that you can repeat what happened. A post-mortem meeting is also a great time to thank everyone involved and to stay in contact about possible future projects together.
These are just a few suggestions for controlling production costs. Obviously there are other ways—ways such as researching prices, buying things like lumber or paint in bulk when possible, borrowing items, or seeking out donations. To keep the production team budget conscious though—and feel supported—frequent communication is the overriding suggestion.
Good Growing: Read This Before Hiring Anyone
Recently I’ve spoken with managers from a few small theaters who are adding (or considering adding) employees to their management staffs. This is something that any successful business eventually considers. New employees mean more payroll expenses of course, but at some point continued growth demands it. When a young theater company begins producing more shows or working on more projects, expands its marketing or development efforts, or moves into a new space, often more work is created than its founding members and volunteers can handle. They begin to wonder whether they should hire a managing director or general manager, a production manager or technical director, a business or finance manager, maybe a marketing or development director, or even a consultant to do or help with any of these things.
When I encounter theaters at this point in their growth (and especially if they’re already financially stable) the opportunist in me wants to shout, “Me! Hire me!” But, as a consultant, I lean toward making them question whether they’re really ready to hire anyone and who that should be.
Certainly a new team member—whether a consultant, contract employee, or staff member—can help in many ways: in carrying out more ideas from directors and board members that time constraints might limit; in contributing new suggestions and systems of marketing, sales, development, or production; and in providing more staff consistency and permanence than volunteers might be able to provide. But, some ground work and careful thought needs to be done before hiring anyone.
When I speak to theaters about hiring new managers, I always recommend creating a formal job description for the position. This document helps to reveal whether a new position is warranted, it creates a list (whether specific or general) of requirements and expectations, and it serves as a tool to establish and continually develop the relationship between a new team member and existing management.
A job description, of course, is not a static document, but evolves as an organization continues to grow. As a starting point, however, I always recommend making three lists. The first list should include management items that should be done, but currently aren’t due to time constraints or other factors. The second list should include jobs that current directors, employees or volunteers are performing, but that should or could be delegated to another person. Finally, the third list should include any additional projects, systems, ideas or goals that the theater would like to implement either soon or as it grows (for example, online ticketing, group sales, or new fundraising events or campaigns). In this last list, some items may be long-term goals, but others may be realistic projects with additional management help. The three lists can then be combined—and edited—to create a workable job description. It doesn’t necessarily need to be in any particular format, just clear to anyone reading it. In addition to responsibilities and requirements, the job description should also show whom the employee reports to and who reports to the new employee.
Once a document exists that outlines the requirements and goals of a new management position, a theater will be best equipped to decide whether it would benefit from hiring a consultant, contract employee, or staff member. And, with the new job description as a guide, the transition for everyone involved will be all the better.
There Are No Small Parts
Researching facts and figures prior to starting my consulting business, I learned several things about theater in Connecticut that I hadn’t know before. Read on even if you’re not in Connecticut—this applies to you too.
Obviously one of the first things I looked for was potential clients. I found quite a few web pages with theaters around the state listed and linked. When I started looking closely and combining those lists though, I realized that there are over one hundred theater companies in the small state of Connecticut. (There are only one hundred sixty-nine towns in this third-smallest state.) And that number of theaters doesn’t include many children’s and summer theaters or most of the theaters at colleges and universities. It certainly doesn’t include theater programs at high schools or middle schools or many other drama conservatories or clubs either. A large list of professional and community theaters in Connecticut is now located here at this website. (If you know of one that I’ve missed, please comment or email and let me know.)
I also learned, from a December 2006 study released by the Connecticut Commission on Culture and Tourism, what a significant economic impact the arts have on the state. As a whole, the arts (which includes dance, music, opera and visual and literary arts as well as theater) provide more than 27,000 jobs in the state and support a total of 44,000 other jobs. The gross state product generated annually from the arts is more than $3.8 billion including $2.6 billion in personal income. Combined with other cultural sectors (film, history and tourism), cultural jobs account for ten percent of the state’s labor force and $14 billion in economic activity. That’s more jobs created and more gross product generated than by either the aerospace or the pharmaceutical industries in Connecticut—both of which have a significant presence in the state—but not as significant, apparently, as the arts.
Putting all of this information together, it’s clear that the great economic impact that the arts have on the state of Connecticut doesn’t come only from bigger organizations such as the Long Wharf Theatre or Hartford Stage. It’s not coming only from Yale University art museums or the Wadsworth Atheneum. It’s a combined effort of the hundreds of arts organizations—both large and small—that operate, employ, and culturally and economically impact Connecticut.
Certainly, these facts and figures aren’t unique to Connecticut. In New York, the Alliance of Resident Theatres has long noticed that the fastest growing sector of its membership is smaller theaters with budgets under $100,000. And New York is definitely aware of the economic impact that the arts have in the state as well. Across the country, theaters and other arts organizations are generating income, paying employees, encouraging patrons and volunteers to spend money in restaurants and shops, and circulating those monies in their communities.
Why is this important for every theater to know? Because it’s the information that donors and sponsors and patrons need to hear—that they’re not only supporting culture and a few hungry artists, but that they’re contributing to a significant economic impact in their communities as well.
So, if you’re not in Connecticut, go find some comparable facts and figures for your own state. In any state, mention these facts in a few marketing materials and funding applications. And congratulate yourselves for having made such an impact.
Why Hire a Consultant?
Consultants today are hired by major corporations, small businesses, government agencies, and nonprofits. Often, the reason for hiring a consultant is a temporary and very specific need for specialized skills or expertise. When they’re hired for a specific period of time or for a special project, consultants are also a cheaper alternative to hiring a full-time—or even part-time—employee.
Employees might sometimes consider a consultant to mean major corporate restructuring and downsizing; they might think that they’re getting an Office Space shake-up. But that’s not always—not even most often—the reason or results of hiring a consultant. Using consultants to supplement and support the staff for strategic planning or project management is much more common. Sometimes, a consultant’s help may even involve only a couple conversations or one day’s work. Consultants can help theaters of any size or type, because all theaters, no matter how large or small—and like any other business—face challenges in both management and production every day.
What are the benefits of hiring a consultant? Here are just a few.
Consultants can offer a new perspective. A fresh and objective point of view—from someone who’s already dealt with similar issues—can lead to creative solutions that anyone too close to a situation might not have considered or be too involved to suggest. Consultants can review anything from season programming to staffing to marketing and fundraising plans to offer feedback that adds ideas and presents all of the consequences—potentially positive and negative—that a decision might cause.
Consultants can motivate and inspire. When consultants offer feedback to a theater, they’re not only giving their own objective opinion, but can motivate a theater’s board and staff to work harder and think more creatively too—the board and staff should even be inspired to work and communicate better on their own. Even consultants working on new programs or initiatives can help boost staff morale throughout an organization.
Consultants can be quick and thorough. Often, a consultant can complete a project more quickly and more thoroughly than a staff member. This isn’t because the staff member isn’t capable or valuable—it’s simply because the consultant can focus full efforts on the project while the staffer probably has a workspace covered with other issues to deal with.
Consultants can handle unfamiliar situations. Because theaters and other arts organizations depend so heavily on creative staff, they’re often organized without all of the management expertise they need to sustain them over the long run. Even theaters with skilled managers can benefit from consultants when they face new issues such as unfamiliar contracts or agreements, board and staff development, long-range planning, or transitions.
Consultants add to the workforce. Consultants might be hired for a special project, for review, input or motivation, or even as interim or temporary management during a transition. In any situation, consultants add to your workforce and allow everyone to best focus on their own jobs.
So, why hire a consultant? Maybe you need some specialized experience, want a fresh outlook, or just have too much work to handle. Whatever the reason, working with a consultant can have advantages you might not have even thought of.
Why Aren't You Blogging?
I write one, in fact I write for a few. You’re reading one.
A blog or “web log,” as you probably know, is an online journal with regular updates written by either one person or a few, and usually allowing either blog subscribers or any readers to add their own comments and reactions.
Blogs evolved in the early 1990s from simple online diaries. With the popularity explosion of websites in the later 1990s, not only personal homepages but also corporate websites included updated news sections. Blogging spread with the development of software to simplify the maintenance of blogs and allow for readers’ commentary. These software tools expanded blogging beyond those who had the know-how to draft their own web pages and blogging gained popularity.
By 2001, several still-active blogs had become popular by focusing on specific topics such as political commentary or specialized news. The next year, popular blogs were receiving up to one million visits a day. In 2004, Merriam-Webster declared “blog” as the word of the year, and politicians and celebrities were joining the blogosphere. Bloggers and other contributors to websites with user-generated content were the reason for Time magazine naming “you” their Person of the Year in 2006.
Today, Technorati, a popular blog search engine, tracks more than 70 million blogs and many of them are recognized as legitimate news sites. Even the Columbia Journalism Review now covers blogs and blogging, and Harvard Business School has recommended to all businesses that they have a blog.
Blogs have grown far beyond personal diaries and soapboxes for individuals. Among the millions of corporations and organizations that blog are Fortune 500 companies in the tech industry (such as Dell and Google) and those not so techie (such as Nike, General Motors, Kodak, and McDonald’s). Print and television media have blogs at their websites (such as The New York Times, The Boston Globe, Time, NBC Nightly News, and The Today Show). Respected schools and universities have joined the blogosphere (such as Columbia School of the Arts, Columbia School of Journalism, and Harvard Law School). Even Internet networking sites include blogs in their pages (such as LinkedIn and Facebook).
Blogging hasn’t completely passed by theaters. Some of the most established, most active, most creative, and “hippest” theaters are already blogging: Hartford Stage; The Guthrie Theatre; American Conservatory Theatre; Trinity Rep; Arena Stage; Seattle Rep; and Chicago’s Steppenwolf Theatre. Without a doubt, blogs are helping to sell tickets at these venues. Concerned that your theater couldn’t possibly update a blog as often as these big players? No problem. A blog can be updated as often as you’d like, can keep readers involved in what’s going on “behind the scenes” during non-production times, and can give them “backstage” progress reports during rehearsals and performances.
Still not convinced that a blog is for you? Read on.
Blogging is a relatively cheap yet invaluable means of marketing over which bloggers have complete control. If you knew a method of quickly and easily sharing up-to-the-minute news and information with members, subscribers, patrons, donors, volunteers and anyone who could potentially be any of these, would you use it to your advantage? That’s exactly what blogging is.
Aside from the obvious communication and marketing uses of blogs, blogging has other advantages. A blog can give a human voice to a website, whether it’s that of a theater director or staffer, an administrator or writer hired specifically for blogging, or a ghost writer—as long as the writer connects with the theater and the blog’s audience in a personal way. Compared to traditional advertising and publicity, a blog should be personal, informal, and even quirky. It’s an opportunity to have fun with your readers, to let them feel that they’ve read some “privileged” information. Blogging will also make readers feel like they’re part of your company. Especially if they comment on a blog post, they’re going to feel that they’re involved in what you’re doing, and be more committed to your organization.
Blogs can also provide some “free” market research. Comments (which, by the way, can be moderated, deleted, or turned off and on) can let you know what your readers think and want. Where else can you publish information that you’ve written and have responses and opinions come right back at you for free?
Last but not least, blogging—and making your community aware of your blog—will draw visitors to your main website on a regular basis. They’ll return daily, weekly, or (through feeds or readers that notify them of updates) as soon as there’s new content to be found on your blog.
Have you ever tried to search for the website of a company or organization only to find out that the place doesn’t have one? In 2007. Frustrating, isn’t it? It may not be long before consumers expect businesses to have a blog too. Blogging may still be evolving, but it isn’t going away. So the question remains: Why aren’t you blogging?
