Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits (DATA)

The sheer size of the millennial generation makes them a critical target audience, but data suggest that millennial visitors Read more

The Myth of Saving Your Way to Prosperity: Three Financial Realities for Nonprofit Executives

An organization attempting to “save its way to prosperity” actually paves its way to financial demise. Here’s why. It seems Read more

Some Nonprofits Are Overthinking Millennial Engagement (to Their Own Detriment)

Nonprofit executives are tricking themselves out of their own best practices. History repeats itself - even when it comes Read more

Death By Curation: The Exhibit Strategy That Threatens Visitation and Cultural Center Survival (DATA)

Indominus Rex would not have sparked a long-term increase in Jurassic World visitation anyway. Here’s a real-world, data-informed reminder Read more

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives (DATA)

Here’s a data-informed peek at what influences leaders in cultural institutions. I’m in the business of cultural sector evolution and Read more

Millennial Values Do Not Change With Age: What Cause Durability Means For Cultural Nonprofits (DATA)

Data suggest that a popular excuse for cultural nonprofits failing to innovate – namely, that the values of millennials Read more

Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits (DATA)

Data Show That Millennial Visitors May be Most Valuable Visitors for Cultural Organizations (DATA) {Know Your Own Bone}

The sheer size of the millennial generation makes them a critical target audience, but data suggest that millennial visitors may actually be the best visitors. Here’s why.

Millennials are the largest generation in human history. We know that they are a critical audience to engage now in order for cultural organizations to exist later. And, quite frankly, you’re probably tired of hearing about this public-service motivated, connected, social, educated, super-duper-special, hierarchy-hating, everyone-is-an-MVP bunch. (Heck, I’m a true-blue millennial and I’m right there with you!) However, all this talk about the need to engage millennials seems to still be met with an eye-roll and a “Here are even more things that we need to do for them” attitude from too many executive leaders. It seems that the size of this generation is the primary reason driving the need to engage millennials for many…and that’s an important reason. But it’s even close to the whole story.

Let’s change this attitude. Let’s do it with data.

Data suggest that millennial visitors are an organization’s most loyal – and they do much more loyalty-driving work for organizations than older audiences. When it comes to engaging millennials, a little is a lot more likely to go a long way. (But…that doesn’t justify organizations doing a little.) This generation is most likely to work for you. Overall, millennials are arguably a cultural organization’s most valuable visitors.

High-propensity visitors (HPVs, in my world (hold judgement on the acronym)) are people who possess the demographic, psychographic, and behavioral attributes that indicate an increased likelihood to visit cultural organizations such as museums, aquariums, gardens, performing arts organizations, historic sites, science centers, zoos, etc. These are the people who actually go to cultural organizations and data can bring to light what these folks have in common. Interesting findings arise when we take a look at millennial high-propensity visitors compared to non-millennial high-propensity visitors. Here are three, data-informed millennial visitor qualities that work to an organization’s terrific advantage compared to more traditional audiences:

High-propensity visitor indicators by age

(A quick note on the data: It comes from IMPACTS and the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations, first published in 2011 and updated annually thereafter. Since its initial publication, the study has tracked the opinions, perceptions, and behaviors of a sample population totaling 98,000 US adults, and is believed to be the largest and most comprehensive study of its kind.)

1) Millennial visitors are most likely to come back sooner.

Millennial high-propensity visitors have a shorter re-visitation cycle than even other generations of high-propensity visitors. In fact, millennial high-propensity visitors are 30.9% more likely to revisit an organization within one year than high-propensity visitors aged 55 or older. That’s a big difference. Moreover – and to the possible surprise of many – millennial HPVs are 20.5% more likely to join as a member than HPVs aged 55 and older. (Though those age 35-54 still take the cake when it comes to likelihood to become a members.) Millennials are an organization’s most loyal high-propensity visitors when it comes to driving repeat visitation. Capture us, and the data suggest we are most likely to come back – and relatively quickly!

 

2) Millennial visitors are more likely to spread positive word of mouth about cultural organizations to drive visitation.

As a reminder (that I provide on KYOB constantly): Data suggest that reputation is a key driver of visitation, and what other people say about your organization is 12.85x more important in driving your reputation than advertising. So what people say about your organization to one another is really important in getting people in the door. We millennial HPVs shine here compared to other HPV generations, and are 18.1% more likely to recommend experiences to a friend than those aged 35-54 and 20.5% more likely than HPVs aged 55 and older. Show us an organization that we like, and we are significantly more likely than older generations to endorse that organization to other people. Millennial high-propensity visitors are more likely than any other generational cohort to provide your organization with what data indicate is the single most valuable form of marketing.

 

3) Millennial visitors reach more people.

Why does being most likely to recommend a cultural experience to a friend particularly matter? Because millennial high-propensity visitors are crazy “super-connected.” This means that we are empowered to recommend experiences with a collective reach that’s like “traditional media” on steroids. “Super-connected” means that these folks are most likely to have access to – and be engaged with – the web at home, at work, and/or on mobiles devices. Admittedly, this can be an incredible asset or detriment to organizations based upon whether or not an individual had a positive or negative experience, but, provided that your organization is doing it’s best on the “satisfying experience” front, positive experiences can go a very long way.

We’re also much more likely than other HPV generations to make purchases online, further underscoring that if your audiences aren’t buying tickets online, it may have to do with your own organization’s online ticket buying strategy. As the world becomes more digital, more folks are making purchases online. Millennials are more than twice as likely to have made a large purchase online within the last year than folks aged 55 or older.

 

4) Millennials likely have the highest lifetime value.

This generation’s size and lifetime customer value suggest that organizations that successfully engage millennials stand to reap a big reward. Millennials are the youngest of the three generations (i.e. Millennials, Generation X, and Baby Boomers) currently visiting cultural organizations – meaning that millennials have the longest expected lifetimes to contribute value as customers. In addition, the large size of this demographic (nearly twice that of Generation X) compounds the composite lifetime value of engaging this audience.

Note that high-propensity millennial visitors are more educated than their generational predecessors. This is important to understand, because often when organizations say, “Let’s target millennials!” they mean ALL millennials. That’s not always a bad move. But, the reality is that millennials who currently profile as being likely to visit cultural organizations are a subset of the population just as high-propensity visitors from other generations are a subset of the population. Not everyone on the planet thinks, “Hey, I’ll do that!” when someone suggests visiting a cultural organization. For various reasons (e.g. free time, access to transportation, cultural background, income, etc.), that’s just not the case with some people. A goal of efficiently engaging millennial audiences is to tap into high-propensity visitors – those persons most inclined to visit in the first place (i.e. “the path of least resistance”).

Heads-up: We also aren’t watching a lot of live TV. Those aged 55 and older are nearly 60% more likely to be watching more than 10 hours of weekly live TV than we millennials. So if you’re appearing on a morning news show, we’re less likely to be tuning in. It may be beneficial to record that segment and put it somewhere where we can see it later if millennial viewership is a particular goal

.

Compared to other generations, millennial high-propensity visitors are more likely to visit more often. They are also super-connected and more likely to spread an organization’s message, providing incredibly valuable word of mouth endorsement. All things being equal, millennial audiences may well be a cultural organization’s most valuable visitors.

Let’s stop rolling our eyes and get psyched about engaging these cheerleaders! (Too much enthusiasm? I’ll it step back.) Here: Let’s change how we frame the conversation. Instead of groaning about the “otherness” of millennials, let’s embrace this opportunity to engage a new cohort of folks who will visit us again and again, tell their friends, and – if we do our jobs right – will be around loving us for a long time.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ). Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment

The Myth of Saving Your Way to Prosperity: Three Financial Realities for Nonprofit Executives

The Myth of Saving Your Way to Prosperity: Four Financial Realities for Nonprofit Executives

An organization attempting to “save its way to prosperity” actually paves its way to financial demise. Here’s why.

It seems that many nonprofit marketing and communication departments are constantly being tasked by their executive leadership to “do more with less.” While cost-efficiencies are desirable in all types of businesses, nonprofit organizations seem to be especially prone to overlooking the cost of doing business.

My work with nonprofit clients at IMPACTS reveals that, more often than not, marketing leaders react to the “do more with less” mandate by desperately trying to “save their way to prosperity.” That is, they attempt to achieve goals not by optimizing spending to maximize the ROI (i.e. increasing their investments if the ROI warrants additional investment), but by saving as much as possible within their already woefully underfunded marketing and communication budgets.

Attempting to save your way to prosperity comes with a hefty price tag for organizations. Let’s hit this difficult topic head-on. It’s time to uncross our fingers and quit pretending that the prevailing forces of the economy don’t apply to nonprofit organizations. Here are three financial realities for executive leaders to consider:

 

1) Marketing is an investment, not a cost

Okay. It’s technically a cost – but when organizations think about it primarily as a cost rather than an investment, they do their organizations’ internal culture a grave disservice. Indeed, it costs money to “market” and communicate…but such is the basic cost of doing business. You need to spend money in order to get people in the door. There is a data-driven optimal investment of revenues required to optimize audience acquisition. If you don’t invest to connect with your audiences, then don’t be surprised when very few audience members choose to invest in your organization and programming. Sure, you’ll save money by not telling folks to come, but you also… won’t have anyone coming.

Compounding matters is the fact that some organizations still think social is “free” or low-cost, but social media networks are increasingly pay-to-play. Moreover, data suggest that things people say about your organization are 12.85 times more important in driving your organization’s reputation than your advertising. That fact may ostensibly sound like a great resource-hoarding angle to a CMO with a “save your way to prosperity” mindset but, instead, it should be acknowledged as a terrific investment priority to maximize support and achieve long-term financial solvency. In other words, social investment isn’t necessarily a replacement for traditional paid media – it is a cost-efficient opportunity for additional investment with additional benefits. If you don’t make the investment, then you cannot realize the return.

 

2. Costs to reacquire audiences are MUCH higher than costs to maintain and retain them.

Let’s say the “save your way to prosperity” angle is your thing, and you choose to save some resources from your already cash-strapped marketing department. You’re probably quite proud of yourself. And the CEO might be as well. At this time, you haven’t completed the engagement cycle (or, if you’re a cultural center, the visitation cycle) to see the impacts of your lack of investment yet. You’re looking and feeling like a penny-pinching rockstar.

Unfortunately for penny-pinching CMOs, it costs significantly more to re-acquire audience members than it does to maintain and retain them – as much as 7x more! Take a look at this often referenced analysis from Bain & Company that quantifies the value of investing in your current audiences:

Bain Retention Analysis

Also consider that the price of advertising is increasing. The “last year +5%” budgeting rule is out of play, making it more important than ever for nonprofit executives (CMOs and CEOs alike) to make wise investments. If you make a bad investment – or no investment at all – the bill will come due. You’ll lose your hard-earned audiences and need to spend more to get them back.

 

3) Deferred bills always come due.

Speaking of bills coming due, “deferred” doesn’t mean “dismissed” – and it especially doesn’t mean “resolved.” Inaction can be extremely expensive. Tiny deferred cost savings add up to very large bills.

While it can be tempting to put off inevitable expenses – particularly during times of financial stress – ultimately, this proves to be a shortsighted approach for an organization. Juggling expenses between operating quarters doesn’t actually change your organization’s performance during that same duration. Saving money by not fixing the roof doesn’t mean that you don’t need a new roof. Again, deferred bills always come due. These budget shell games are often designed to forfend scrutiny – but this is a short-term magical accounting game. We live in a spend a little now or a lot later world. And, failing to spend appropriately risks greater peril than merely mounting deferred expenses – your organization may be perceived as irrelevant.

You can’t save your way to prosperity. The best you can do with this mindset is spend less, lose loyal attendees and not acquire new ones, and “defer” costs that may risk lowering your organization’s reputation. That’s not “savings” and that’s certainly not “prosperity.” That’s actually spending your way to demise, or, the very thing your CEO is trying to avoid in the first place.

Don’t save your way to prosperity. Instead have a deep understanding of how your industry works and maximize your investments. If you’re a visitor-serving organization, here’s some help: 1) Understand the cost of advertising, 2) Know how to budget to maximize audience acquisition, and 3) Understand the need to invest and strategize to adapt to reach emerging audiences. Saving your way to prosperity is, at best, a short-term faux-solution. At worst, it’s a long-term recipe for disaster.

Know the cost of doing business. Learn what things actually cost. Get smart about your investments because to remain relevant, you’ll have to make them. Make sure you make the best ones possible.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ). Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Financial Solvency, Myth Busting, Nonprofit Marketing, Sector Evolution Leave a comment

Death By Curation: The Exhibit Strategy That Threatens Visitation and Cultural Center Survival (DATA)

Death by curation- a lesson from Jurassic World

Indominus Rex would not have sparked a long-term increase in Jurassic World visitation anyway. Here’s a real-world, data-informed reminder of the dangers of “Death by Curation” for cultural organizations.

Considering my obvious museum nerdiness, you can bet that I was one of the folks contributing to Jurassic World’s $511.8 million opening weekend (in 3D glasses and parked eagerly in front of an IMAX screen on opening day, no less). I was giddy about the dinos, of course, but, throughout the film, I couldn’t help but focus on the data-denying stupidity of the Jurassic World business model (Of all things…). While watching, I mentally revisited data from a popular Know Your Own Bone post titled “Death By Curation”. In consideration of Jurassic World – and in the spirit of sequels – data about the realities of “death by curation” (or, “blockbuster suicide”) are worth a revisit for visitor-serving organizations. Let’s re-bust the myth of the blockbuster exhibit strategy. 

Also, in honor of Jurassic World, let’s do it dramatically (…but with real data).

Blockbuster exhibits sound nice, but they often create a negative cycle that threatens the solvency of the visitor-serving organizations that deploy them. Within this cycle, organizations (museums, zoos, aquariums, science centers, etc.) rely heavily on visitation from special exhibits – rather than their permanent collections – in order to achieve their attendance and financial goals. This is a case of “death by curation” – bringing in progressively bigger and bigger exhibits in order to sustain and grow revenues. It’s no secret that a true blockbuster exhibit can boost a museum’s attendance to record levels. However, a “blockbuster” is rare, and the fact that these blockbusters spike attendance so dramatically is an important finding: Blockbusters are anomalies – NOT the basis of a sustainable plan.

Though Jurassic World is just a(n awesome) movie, “Death by Curation” is an actual, data-informed problem jeopardizing the long-term existence of many entities. Thankfully, when cultural organizations commit “Death by Curation” in the real-world, the result is typically… well, much less literal than it was in Jurassic World.

 

1) Misunderstanding

We know the story well: a museum decides that the best way to increase long-term visitation and attract new audiences is to create or host a special exhibit. They hear of attendance spikes from other, similar institutions that host or create blockbuster exhibits, and they see the newspaper articles boasting increased attendance during the exhibit. This is an innocent enough start. Not all special exhibits are blockbuster exhibits. But the want for a “blockbuster” increases among executives who are unaware of the long-term consequences of this kind of special exhibit. So the organization hosts one.

The organization sees a spike in attendance, which dips when the exhibit closes. The museum wants to hit these high numbers again so it hosts a “bigger” exhibit and hopes for the same visitation spike. This is the beginning of a costly, ineffective cycle.

 

2) Dependence

If the exhibition is successful, then the sequel must be grander – and usually more expensive. The organization comes to believe that it cannot motivate visitation without rotating, creating, or (in the case of Indominus Rex) genetically modifying increasingly “blockbuster”/ “bigger and better” exhibits. And, by doing this, museums train their audiences only to visit when there is a new exhibit. Thus, they risk curating themselves into unsustainable business practices.

Organizations train audiences to respond primarily to blockbuster exhibits. I like to think of this as a sort of “Pavlov for the museum world” – except instead of inspiring behavior with a bell, we’ve decided to provide Monet, Mondrian and Picasso as stimuli. This is all perhaps well and good…but it isn’t sustainable.

Consider the 20-year attendance history of a museum client of IMPACTS (the company for which I work). Take a look at the “blockbuster” years.

Death by Curation special exhibit attendance KYOB

Still drunk with success from their blockbuster exhibit in year 2004, this museum went to the “tried” (but, not necessarily, “true”) blockbuster formula in year 2009. As you can see, in terms of visitation, history decidedly did NOT repeat itself. In this example (which I selected because it is representative of the experience of many museums), the “blockbuster” exhibit of year 2004 resulted in a 47.6% spike in visitation. What is perhaps most telling is how quickly – post-blockbuster – the client’s annual visitation returned to its average level. Does this suggest that the client shouldn’t pursue another blockbuster? Well, they did. But not with the expected results.

Let’s consider the same chart again – this time with the special exhibits costs by year also indicated:

Death by Curation cost verses attendance

This where it becomes additionally important to acknowledge that “expensive does not a best-ever exhibit make” (although sometimes it can help when the investment is intelligent). If the museum begins to believe that they are being successful with this strategy of rotating and/or releasing blockbuster exhibits, then the exhibits grow grander and the attendant costs often grow at unsustainable rates…but become conceptually necessary for the museum to keep their lights on. Organizations often need to pay more money in order to hit that same, first-time blockbuster exhibition spike.

Also, I’m just going to leave this little chart right here…

Death by curation sequels KYOB

Another fun fact that will surprise absolutely no one in the museum world – audiences are fickle! Their preferences shift quickly and they become increasingly hard to please. In fact, first-time-ever museum visitors rate their overall satisfaction 18.1% higher than persons who have previously visited any other museum. We call this “point of reference sensitivity”– the market’s expectations, perceptions and tolerances are constantly shifting and being re-framed by its experiences.

 

3) Alienation

What of the hopeful thought that visitors to blockbuster exhibits will become regular museum-goers? It is largely a myth. An IMPACTS study of five art museums – each hosting a “blockbuster” exhibit between years 2007-2010, found that only 21.8% of visitors to the exhibit saw the “majority or entirety” of the museum experience. And, of those persons visiting the sampled art museums during the same time period, 50.5% indicated experiencing “only” the special exhibition. This data indicates that these special exhibit visitors are not seeing your permanent collections and, thus, are missing an opportunity to connect with your museum and become true evangelists.

The museums in this cycle train audiences to respond to blockbusters, not to develop relationships with permanent collections and that hurts their bottom lines. More often than not, organizations that are caught in the “Death by Curation” cycle actually cultivate visitation that is generally unsustainable. Or, at least less sustainable than many executives believe when having conversations about hosting or developing blockbuster exhibits. If you’re a visitor-serving organization always focused on releasing something bigger, better, and newer, you must be cautious not to devalue your permanent collections, and continually reinvent them as well.

 

4) Deprivation

Here’s where things get really ugly. Not only are organizations engaging in “Death by Curation” (a.k.a. “Blockbuster Suicide”) training regular audiences to respond primarily to special exhibits, failing to inspire connections with permanent collections, AND getting caught in an increasingly-expensive and unsustainable exhibit cycle…they are also creating and cultivating less loyal members.

Even members, whom museums often assume are more connected to their permanent collections than the general public, have been trained to respond almost exclusively to “blockbuster” stimuli by those organizations that consistently highlight these “bigger and better” exhibits year over year. To wit: The National Awareness, Attitudes and Usage Study recently updated in March 2015 indicates that of lapsed museum members with an intent to renew their memberships, 87.5% state that they will renew their memberships “when they next visit.” Of these same lapsed members, 60.8% indicate that they will defer their next visit “until there is a new exhibit.” In other words, museums have trained even their closest constituents to wait for these expensive exhibits in order to justify their return visit. It’s an unhealthy cycle. When hosting a series of blockbuster exhibits, an organization may get “high” on an attendance spike…but a crash is right around the corner.

After the “depravation” phase, many organizations cycle right back to “misunderstanding” and continue to spiral. Think of nearly any major museum that had made news with layoffs. Chances are that organization created a form of blockbuster suicide.

 

An alternative to blockbuster suicide

Here’s the good news: this cycle can be broken – or avoided entirely.

Museums and other cultural organizations often fail to recognize that the best part of the museum experience, according to visitors and substantial data, is who folks visit and interact with instead of what they see. Understanding that a museum visit is more about people than it is about exhibits can help organizations keep the relative success of blockbuster exhibits into perspective.

Instead of relying on the rotation (or new, ongoing addition) of increasingly expensive exhibits, many successful organizations instead invest in their frontline people and provide them with the tools to facilitate interactions that dramatically improve the visitor experience. Improving the visitor experience increases positive word of mouth that, in turn, brings more people through the door. Importantly, reviews from trusted resources (e.g. word of mouth, social media, and peer review sites) tend to not only inspire visitation, they also have the positive benefit of decreasing the amount of time between visits. People who have a better experience – which has a clear association with interactions with staff members – are more likely to come back again sooner (Okay, this is obvious…but when you bust outdated cultural business strategy myths for a living, it’s important to reexamine things that seem obvious, too).

KYOB intent to revisit based on satisfaction

The power of “with” over “what” has other positive financial implications for museums. If the institution focuses on increasing the overall experience (which, again, is a motivator in and of itself – as opposed to the “one-off effect” of gaining a single visit with a new exhibit), then the museum’s value-for-cost perception increases. In other words, it allows the organization to charge more money for admission without alienating audiences because these audiences are willing to pay a premium for a positive experience. (For you mission-driven folks shaking your head about how this potentially excludes underserved audiences, this is where your accessibility programs will shine. Admission revenues enable effective affordable access and increase their perceptual value as well.)

The “bigger, better, more expensive” business model is financially unsustainable and it alienates audiences. A better solution? Actually be good at fulfilling your mission/purpose and highlight considered experiences that support it.  

This isn’t to say that new content and engaging exhibits are not often critical to a museum’s success. Updating overall collections, keeping museums up-to-date, and developing timely, relevant programs is increasingly no longer optional for cultural center survival. It is to say, though, that times are changing. To sustain both in terms of economics and relevance, museums must evolve from organizations that are mostly about “us” (what we have is special and you’re lucky to see it), to organizations that are primarily concerned about “them” – the visitors.

Like it or not, the market is the ultimate arbiter of a museum’s success. Those of us with academic pedigree, years of experience, and technical expertise may well be in a position to declare “importance,” but it is the market that reserves the absolute right to determine relevance. In other words, while curators still largely design the ballots, it is the general public who cast the votes. In the race to sustain a relationship with the museum-going public, the returns are in and the special exhibit isn’t so special anymore.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 6 Comments

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives (DATA)

Influencing Leadership at Cultural Institutions

Here’s a data-informed peek at what influences leaders in cultural institutions.

I’m in the business of cultural sector evolution and – given that the cultural business model is in need of an update – we at IMPACTS have been looking at how the opportunity for evolution may be best understood. We work directly with many industry leaders (the Chiefs, or the “Cs”), and recently had occasion to scour the minds of these executives in order to better understand how they obtain information, and the roles that various information channels play in influencing their executive decisions. Potentially innovative, groundbreaking ideas risk dying on the vine if they aren’t understood and supported by an organization’s leadership. We wanted to find out more about how to keep that from happening.

The data below is from a survey of 306 executive leaders working at nonprofit visitor-serving organizations (e.g. museums, aquariums, cultural centers, theaters, orchestras, zoos, historic sites, etc.). The study identified the primary information channels that executives use to inform their decision-making processes, and further measured the relative trust and influence that these same leaders ascribe to the various information channels. These values are quantified on an index value basis – a way of assessing and comparing these measurements in relative terms (i.e. an information channel with an influence value of 200.0 is 2x as influential in the surveyed leaders’ decision-making processes than is an information channel with an influence index value of 100.0).

The findings of this study are relevant to anyone whose profession requires influence, motivation, and collaboration with or among leaders.  If we know what informs and influences leaders, then we can more effectively communicate with, and, in turn, influence leadership. Before you can change the world, you likely need to change some minds. Here’s data that will help:

 

1) Timeliness matters

KYOB IMPACTS - Sources of information  for cultural leaders

Let’s start with the obvious: It’s easiest to reach fellow leaders via the information sources that they are actually using.

Books and manuals generally have some influence power and are perceived as trustworthy and relatively influential sources (more on that in the charts that follow). This is frequently because book publishers employ credibility protectors such as fact-checkers, researchers, and editors, so leaders often regard this information channel as an expertly vetted, reliable source of information. But, it also takes time to write, edit, publish, and distribute (not to mention read) a book. That may be why the data suggest that leaders aren’t primarily relying on books and manuals for information (which they reference for information approximately 3.5x less often than they do online daily news sources). So, yes, books are potentially influential – if you can get the leader to read the book!

Data suggest that more timely information channels win the day when it comes to providing value as an information resource for leaders. Consultants/industry experts, peer-to-peer communications, and especially daily newspapers and blogs are timely by nature. Timely information sources are likely to be more right-now relevant than sources with more labored publication processes.

In addition to books, industry publications (often published periodically) and conferences (typically occurring annually) struggle to meet the timeliness requirement that agile leaders demand of their most important information sources.

 

2) Experts are far more valuable than participants

KYOB IMPACTS - influence of sources for cultural leaders

Perceived expertise is a significant driver of influence. Daily newspapers are definitionally timely – and the perceived prestige, credibility, and expertise of publications (think The New York Times, The Washington Post, The Wall Street Journal, The Boston Globe, etc.) inure to the benefit of their journalistic staff. There’s a high level of trust and influence embedded in these brands despite the fact that the web allows nearly anyone to be a “reporter” these days. Sources perceived as expert – such as industry experts, consultants and industry executives – dominate influence on leaders.

KYOB IMPACTS - Trust of sources for cultural leaders

Conversely, sources based heavily in participation don’t perform nearly so well. Not everyone who participates in something is an expert. This may be a challenge for industry publications and conferences – they often feature far more participants than experts. More heavily participation-based (versus expert-based) sources often supply unfiltered noise in the already-noisy world of an executive leader…a circumstance that may be the opposite of helpful in the eyes of the “Cs.”

I wonder if – as the most effective leaders increasingly play the symbolic role of a conductor within organizations – the influence, trustworthiness, and go-to value of professional staff will increase. That’s a tide that may necessarily turn as cultural organizations evolve: Leaders may need to trust the (increasingly nuanced and specialized) experts that they hire in order to simply run their organizations.

Fun fact: Leaders right now utilize printed newspapers far, far more frequently than the general population. Nope, it’s not because printed newspapers are different than online newspapers in terms of content – it’s because today’s head-honchos are generally educated Baby Boomers who simply still prefer getting their news in print.

 

3) It’s a small world after all

What leaders say to one another is far more influential than what non-peers say to leaders. This is evident when observing the high impact of peer-to-peer communications and industry experts. Leaders seek out and listen to other leaders.

While this may be slightly disappointing for non-Chiefs, I urge these future leaders to look at the very bright side of this finding: If you can influence a small group of leaders, then you may be able to influence the entire sector. Hopeful? Perhaps. But identifying this narrow band of very specific influencers could prove enlightening for both current and future leaders alike – especially considering the imperative to evolve the way that many nonprofits do business. Think of other relatively small groups of folks who knew one another and changed the course of history. The Beat Generation. The Lost Generation. The Cultural Institution Reinvention Generation? Perhaps change in this sector is not so different. Or, perhaps I just want an excuse to include references to both Jack Kerouac and F. Scott Fitzgerald in a post.

Ours is not a kingdom, it is a collaboration. To influence leaders, we must compellingly communicate a point of view…and it’s easiest to do this when we communicate in consideration of leadership’s most preferred, trusted, and influential information sources.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Image credit: Scientific American

Posted on by colleendilen in IMPACTS Data, Sector Evolution, Trends 2 Comments

Six Ways Personalization Trends Are Affecting Museums and Cultural Centers (DATA)

Personalization trend in cultural organizations

The personalization trend is here. And it’s affecting nearly everything visitor-serving organizations do.

 

Once in a while – usually when considering topics for a trend meeting with clients – I look over collections of recent IMPACTS data and glaring patterns emerge. Sometimes these trends are obvious – like myth-busting traditional ways of thinking that data suggest are now largely irrelevant. Sometimes they come together to tell a story about sector evolution and solvency. And other times – like today- they represent a connection so glaringly apparent (because it is already in the broader business media spotlight) that I’ve mentioned it only in passing.

Personalization has been an increasing and unrelenting theme in much of the data collected regarding visitor-serving organizations – and it is begging for more attention in the world of cultural centers. Typically, conversations about personalization within these institutions are interpreted as a need for crowd-sourced exhibits/programs or more creative, online initiatives. And those can be excellent ways to actively incorporate personalization into an engagement strategy! What’s decidedly NOT excellent is assuming that personalization doesn’t affect nearly everything in regard to operations and engagement these days. This goes way beyond new exhibit development and social media stunts. 

Personalization is one of the most important trends for brand evolution today and is predicted to continue to emerge as a hard-hitting trend. And, if you haven’t heard, 2015 is the year of personalization. Personalization has been sited – alongside transparency – as an increasingly required brand attribute and a prime example of how the Internet has changed the world in which we live.

From the Share a Coke initiative to the secret sauce of Netflix, Amazon, Hulu, Spotify, and Pandora, personalization initiatives are everywhere. Most of all, personalization serves as a helpful lens through which to consider initiatives and the evolution of engagement practices.

Gone are the days of one-size-fits-all communications online and offline. Personalization is actually playing a role in nearly all aspects of visitor-serving organizations – beyond the creative development of new exhibits and programs. Personalization has lead to the emergence of the following trends:

 

1) An increased need for onsite personalization to increase satisfaction levels

Data suggest that personal interactions between staff and visitors significantly increase overall satisfaction, improve value perceptions, and contribute to a more meaningful overall experience. IMPACTS data has uncovered that a single personal facilitated experience (PFE) during a visit can have a major impact on satisfaction levels. A PFE is a one-to-one or one-to few interaction that occurs between an onsite representative of the organization and a visitor.  And not only do PFEs increase satisfaction levels, but they also increase perceived value for admission, education value, staff courtesy, and entertainment value. See the data here.

IMPACTS satisfaction by daypart PFE

Organizations may even deploy PFEs as a mitigation strategy to minimize the impact of crowding perceptions on overall satisfaction! The chart above shows data points from a representative organization with whom IMPACTS works. Keep in mind: The experiences represented by PFE and non-PFE visitors are largely the same (same facility, same content, same basic experience) – except for the opportunity to have a personalized experience with a staff member.

 

2) A growing disinterest in group tours and standardized experiences

Your organization isn’t imagining things: It’s harder to attract leisure tour groups today than in the past. This mass, standardized experience business has been in decline – and the data suggests that it’s not because the salespeople suddenly got bad at their jobs.  It’s because people do not want to go on the same old, standardized group tours.  This makes sense: During a time in which audiences are leaning toward more personlized experiences, many group tours are currently the precise opposite – every experience is commonized.

IMPACTS group tours are fun way to visit museums

The Y-axis in the chart above indicates the mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale.  Anything much below 60 tends to indicate a level of disagreement (i.e. “not fun”).

Perception of the enjoyment of museum visits through group tours not only started out at less-than-impressive levels when IMPACTS began tracking the metric in 2008, perception has since been in steady decline. This is also the case in regard to group tours to zoos and even cities, suggesting that it isn’t the museum group tour that’s “broken” – it’s the group tour concept itself. Similar data exists for sporting events, aquariums, theme parks…you name it. Again, the personalization trend is at odds with the standardized experience of group tours – regardless of the venue. More on this here.

 

3) The expectation of social care on digital platforms

When organizations consider social media and personalization, they often think about creative initiatives. However, this may be missing the boat. There’s an ongoing expectation for personalization that may be more critical to your organization than more creative, additive endeavors.

The buzz term for personal, customer service-like community management issocial care” and it is hugely important for all organizations. Why? Online audiences expect engagement from organizations.

Consider this data by Lithium Technologies: 70% of Twitter users expect a response from brands they reach out to on Twitter, and, of those users53% want that response in less than one hour. The percentage of people who expect a response within the hour increases to 72% when they’re issuing a complaint. And there’s more: 60% of respondents cited negative consequences to the brand if they didn’t receive timely Twitter responses. That said, it isn’t only negative comments for which audiences seek interaction…

Lithium expect response within hour of tweet

This may all sound doom and gloom, but according to the same survey by Lithium Technologies, there’s a benefit to interacting with folks on social media sites:

Lithium positive response data

 

4) Promulgating connective content with personal meaning

By now, organizations likely understand that an organization’s number of followers on social media doesn’t matter. The quality of followers is more important than having thousands who do not promulgate your messages and are disinterested in acting in your organization’s interest.

Content is no longer king. Connectivity is king. Content can operate in isolation, but connectivity requires a kind of “passion match” between the organization and the potential supporter or advocate. This “passion match” is personal, and – while indeed many exhibits or specific programs are being developed for more unique audiences – the understanding that personal connection is the goal is driving the content strategies of intelligent organizations to post not what the most people on social media will like, but what actual, potential supporters will find most meaningful.

 

5) The availability of more diverse membership structures

The concept of personalization may begin with allowing for alternate gateways to engagement and understanding that the “one-size-fits-all” approach to membership simply isn’t optimal anymore. One data-based example of this can be seen in IMPACTS work with a large (over one million visitors per year) visitor-serving organization with a mission related to conservation. More on this finding here.

IMPACTS- Benefits of membership

Adults under thirty-five provide a sneak-peak into the need for organizations to create alternate programs to cultivate new and emerging audiences. Extant data indicate that members of Generation Y are public service motivated and appreciate a feeling of belonging and connectedness with one another and with a cause. This is consistent with the responses gathered from millennials in the data above. Instead of being interested in the more “transactional perks” of membership, this generation desires a feeling of connectedness with a broader social good. Creating a range of membership programs that engage different audiences allows for more personalization in approach. Is the primary “passion match” between members and your organization actually transactional? For some it may be. But what about the increasing majority that care about impact and connectivity?

 

6) The evolution of digital platforms and technology usage

Thanks to the personalization trend, the role of email has changed. It is no longer effective for “spamming” groups of people, but rather for cultivating individual audience members based on their “passion matches.” Personalized emails deliver six times higher transaction rates, but seventy-percent of brands fail to use them.

Moreover, data suggests that static websites and homepages are no longer the digital platform motivating visitation decisions.  Increasingly, social media plays an important role in this process thanks to the personalization and perceived transparency that it provides. Simply put, folks can log onto social media sites and see how well an organization actually “walks the talk” of its mission by way of the content that it posts – and make decisions about the organization on their own.

There is buzz about the importance of utilizing mobile devises to hone in on personalization opportunities. This is a particularly good idea right now because Google has announced that there are now officially more searches taking place on mobile devices and tablets than laptops and desktops. Let the personalization trend continue!

 

Ours is an era of personalization – every experience is increasingly tailored. And data suggest that more standardized experiences suffer in comparison. It’s time that cultural centers ingrain this brand attribute into overall organizational strategy in order to future-proof their experiences and offerings, and better attract and retain donors and supporters.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Digital Connectivity, Financial Solvency, Fundraising, IMPACTS Data, Millennials, Nonprofit Marketing, Sector Evolution, Trends 5 Comments

Visitation to Increase if Cultural Organizations Evolve Engagement Models (DATA)

Tipping pointAttendance to cultural centers is on the decline, but data suggest that forward-facing organizations may see improvements by 2020. Here’s why.

Overall, data suggest that attendance to visitor-serving organizations is in a general state of decline relative to population growth – and this may suggest a problem with the current visitor-serving organization business model. For organizations that fail to adapt their engagement strategies to respond to emerging audiences, there’s abundant reason to believe that their attendance levels may continue to stagnate or decline. However, data suggest that those organizations willing to evolve their thinking about emerging audiences and access programming stand to benefit by overcoming the negative substitution trends that are currently depressing attendance. There is a reasonable expectation that evolutionary, agile organizations will experience sustained increases in attendance as this century enters its second decade.

Here’s what your organization needs to know about negative substitution, acculturation, and access programming opportunities…and how they are shaping the future of visitor engagement:

1) Negative substitution of audiences is affecting attendance (and it is happening NOW)

While the US population continues to grow, the historic audiences of visitor-serving organizations (i.e. those audiences with the demographic, psychographic and behavioral attributes that indicate a propensity to visit) have been in a state of general decline. One of the reasons for this circumstance is the negative substitution of audiences. Negative substitution is quantified by a deficiency of “replacements” for the historic visitors who exit our markets. For every one person who exits the market, there is fewer than one person to replace him/her.

Currently, for every one high-propensity visitor to visitor-serving enterprise that leaves the market (through death, relocation, or migration), only 0.948 similar high-propensity visitors are entering the market (typically via birth or relocation). When people leave the market without a sufficient number of “replacements,” we have negative substitution.

Why is this happening? For one, affluent, educated white people (i.e. historic audiences) are having fewer children and/or getting older and/or relocating to emerging markets, and visitor-serving organizations on the whole have yet to sufficiently cultivate the engagement of a newer kind of high-propensity visitor. In other words, on the whole, we’ve done a relatively poor job becoming places where emerging audiences (e.g. millennials, Latinos, etc.) feel comfortable declaring “This place is for people like me.” We refer to this as attitude affinity – a perceptual measurement of if a particular market segment believes that an organization is welcoming to them.

Incidentally, emerging audiences (most commonly Latino and other historically underserved populations) are playing a major role in population growth. Historically “underserved” audiences are increasingly the mainstream audiences of the future…and failure to cultivate their engagement may risk a generational alienation from our organizations.

Ultimately, this downward trend demonstrates the failure of access programming within visitor-serving organizations. If the past few decades of access-motivated initiatives had been successful, then we would not be experiencing negative substitution. Instead, we would have cultivated these audience members to become our current visitors. Demographers and researchers have been writing about this inevitability for some time.  If our programming had proven responsive to this opportunity, then we would be experiencing audience visitation that increases alongside population growth. That’s not what’s happening.

 

2) Misunderstanding access programming jeopardizes long-term sustainability

Many organizations incorrectly consider “access” primarily in terms of affordability.  If simply offering a reduced admission was a cure-all to access issues, then very few organizations would still have underserved audiences at all.  The presence of a continually underserved audience indicates the failure of an organization’s access programming.  In the past, organizations could perhaps put access issues on the back burner and get it away with it – there were enough traditional high-propensity visitors to support the organization.  However, as the traditional market shrinks and historically underserved audiences grow to become an increasing majority, the issue of access can’t be de-prioritized any longer.  The future well-being of many visitor-serving organizations hinges on their ability to connect with these audiences. The reality is that effective access programming engenders trial and usage by cultivating new audiences as eventual regular visitors – an organization’s lifeblood.  Access isn’t primarily about price. It’s about eliminating every barrier to engagement.

Do the data suggest letting everyone visit for free?  No.  Of course not.  The data indicate that time is more valued than money for the vast majority of audiences.  A person thinking about visiting a zoo on a Saturday in June is very unlikely to delay their visit until a Tuesday in November simply because of cost.

Access programming is significantly less about affordability than strategic sustainability. This is where organizations are being inappropriately emotional about business matters, and misguided ideas about “affordability” are lessening the solvency of some organizations. Today, there exists compelling, data-informed science that suggest that cost is overstated as the primary barrier to engagement (schedule reliably trumps cost). Think of it this way: If $34.95 proves unaffordable to select audiences, so will $24.95 or $29.95…or any other realistic “discount” from the general admission basis. In terms of true affordability, nearly any price diminishes the visitation potential for our most affordability challenged audiences.

Price is not panacea when it comes to affordability. And affordability is not antidote for access. Price is a revenue optimization tool that provides organizations with the resources to support access programming that, in turn, cultivates the engagement of future audiences.

If you want to be relevant to the audience of tomorrow, you better be working to engage them today.

 

3) Acculturation improves future outlook (provided organizations update engagement models)

IMPACTS- HPV substitution ratios

But there’s hope! Check out this graph from IMPACTS. It demonstrates substitution ratios derived from a predictive modeling process for US visitor-serving organizations. The Y-axis indicates the antecedent term (the first value) in the substitution ratio.  Thus, an antecedent term <1.00 indicates negative substitution – for every one person exiting the market, there is less than one person to replace them.

Why does the trend improve in the future?  Acculturation. Emerging audiences tend to adopt “mainstream” behaviors over time – including, potentially, engaging with visitor-serving organizations such as museums, zoos, aquariums, performing arts centers, etc.

Think of the observed differences between first, second, and third generation immigrants to the US. For example, the first generation of immigrants may not speak the language, may have gone to school overseas, may tend to live in clusters of like ethnicities, etc. The next generation was born and raised in the United States – and may be more acculturated than their parents…but still retain certain behaviors due to household customs (English as Second Language, etc.). However, the third generation tends to be even more acculturated, with fewer traces of “old country” behaviors.

Because population growth is being driven by births of second and third generation Americans, acculturation represents a tremendous opportunity to engage these emerging audiences – provided, of course, that organizations have cultivated a relationship with these audiences before they enter the mainstream. Significant research indicates that relationships with brands are often cast during a person’s early, formative years – a failure to cultivate the engagement of a less acculturated first or second generation audience member may effectively preclude the future engagement of a fully acculturated third generation audience member.

The good news about this data? Organizations that intelligently and diligently evolve their engagement models during this critical time stand to benefit from the positive impacts of acculturation in the near future. The perhaps challenging news? Organizations will need to be thoughtful and actively evolving before 2020 (i.e. the predicted “tipping point” in the audience acculturation projections) so as to cultivate the support of these future audiences before they enter the mainstream market.

This isn’t a “Let’s just wait until 2020 to get serious” situation. This is a “If you start thinking strategically and work hard now, then you’ll see a payoff in 2020” situation.

Interestingly (and unsurprisingly), technology accelerates acculturation. This means, of course, that utilizing digital platforms and cultivating real-time communications with emerging audiences is critical for organizations. This is also another compelling reason for leaders to listen to PR and social media staff members throwing around the word “innovation.” In many ways, the industry doesn’t need to “pivot” (that mindset created many of the challenges that visitor-serving organizations are facing today) – it needs to reset.

Organizations that invest in cultivating more strategic “access” models today will be able to take advantage of the engagement benefits suggested by the predicted acculturation trends. Yet again, the time-proven lesson proves true: You reap what you sow.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment

Group Tour Interest in Decline: Why Museums Should Invest Elsewhere (DATA)

group tours

Investing in attracting tour groups is an increasingly futile endeavor for museums. Here’s the data and what to do instead.

Many visitor-serving organizations increasingly bemoan the challenges associated with the leisure group tour market. (This being a different attendance category – and revenue line item – than school groups.) Typically, visitor-serving organizations have salespeople dedicated to the process of soliciting tour groups. In other words, their job is to get group business.

This business has been in decline – and the data suggests that it’s not because the salespeople suddenly got bad at their jobs.  It’s because people do not want to go on group tours.  This makes sense: Ours is an era of personalization- every experience is tailored.  Group visits are the exact opposite – every experience is standardized.

Your organization isn’t imagining things: It’s harder to attract leisure tour groups today than in the past. Here are three, data-based reasons to utilize full-time staff (FTEs) in a way that is more likely to drive actual visitation than futilely increasing investments in the leisure tour group market:

 

1) People do not think group tours are a fun way to visit a museum

IMPACTS group tours are fun way to visit museums

The Y-axis in the chart above indicates the mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale.  Anything much below 60 tends to indicate a level of disagreement (i.e. “not fun”).

Perception of the enjoyment of museum visits through group tours not only started out at less-than-impressive levels when IMPACTS began tracking the metric in 2008, perception has since been in steady decline. This is also the case in regard to group tours to zoos and even cities, suggesting that it isn’t the museum group tour that’s “broken” – it’s the group tour concept itself. Similar data exists for sporting events, aquariums, theme parks…you name it. Again, the personalization trend is at odds with the standardized experience of group tours – regardless of the venue.

We decided to look into this a bit more, and the outcomes to this inquiry were also extremely telling (although perhaps altogether unsurprising)…

 

2) Group tours do not likely have a sustainable future

 IMPACTS group tours are fun chart

Like the previous chart, the data above also demonstrate a mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale. Again, dipping below 60 tends to indicate a level of disagreement (i.e. “not fun”). The data here is unassailable: The market – and especially millennials – do not think group tours are fun.

Millennials represent the single largest generation in human history and will make up the largest consumer segment of the market for the next 40 years at minimum. These folks don’t think group tours are fun – and their perceptions are declining rapidly. “We aren’t trying to attract millennials with group tours anyway,” you say? Well, the general market (even excluding millennials) doesn’t think group tours are much fun either.

This trend toward the negative perception of the enjoyment of group tours – like most evolution within the industry – mirrors the general market preference for more tailored experiences. On social media, the ads that come up in your newsfeed are picked just for you. Email has evolved to become a more personalized way to tell important stories than an opportunity to “spam” with broader messages. Audiences want to decide what they think of organizations for themselves. Today, everyone’s a curator. Group tours embody the opposite of these market preferences – the regulated, homogeneity of a common experience.

 

3) There are areas in which staff resources for group tours may be reallocated in order to truly drive visitation.

I think it’s interesting that some organizations that claim to not be able to afford to augment their social teams still maintain group salespeople.  The alternative use of those same funds would likely have a better ROI more broadly engaged to support the communications effort.

Digital engagement isn’t the only area in which data suggest alternative investments may yield more visitors and donor support. Indeed, any position that supports more personalized experiences has been proven to drive both reputation and satisfaction levels within institutions. Investing more in front-line staff and deploying personal facilitated experiences is an urgent need that many institutions are overlooking.

In short: Museums often have full-time staff dedicated to managing a program that many folks don’t even want. At the same time, there are data-supported audience “touch points” that may not be receiving adequate investment. Once a month, one of us at IMPACTS seems to get asked, “What can we do to improve our leisure group business?”  The answer is: Get out of the group business (and get into the personalization business)!

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 
Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

 

Posted on by colleendilen in Community Engagement, IMPACTS Data, Millennials, Myth Busting, Trends 8 Comments

The Evolution of Nonprofit Leadership: We Need More Conductors

Conductor 1

Nearly everything has changed in today’s digital world – including the most important duties of executive leaders in successful organizations.

I’ve recently been involved in conversations exploring the new roles of executive leadership (the Chiefs) in today’s evolved world. Everything related to managing effective organizations seems to be changing – audiences, engagement mechanisms, desired public values, and even the roles of institutions themselves. Organizations are “flattening” hierarchical structures, opening authority, and some are even letting staff members work from home. Even the role of email and websites has changed. These are all very different and far more prevalent situations than they were even five years ago. As such, the way that executive leaders lead must evolve, too.

Today’s evolved world demands that Chiefs play the role of symphony conductor rather than first chair of an instrument within their organizations. In other words, the days of the Chief as “expert practitioner” have past. It’s more important than ever that Chiefs “conduct the symphony” rather than getting lost in the weeds (a place that – let’s be real – some Chiefs have been known to camp out)!

In this bad metaphor of Chiefs as conductors, the role of the CEO is to make sure that all of these departmental orchestras develop a cohesive symphony that is consistent with the organization’s overall values and objectives.

Today, organizations need conductors because even the most renowned first chair requires a maestro. Indeed, many of the most successful Chiefs have long been playing the role of “conductor” – and this skill has never been more valuable or in-demand. The world moves too quickly for Chiefs to be “expert” at everything in their department or organizations – and successful Chiefs benefit by orchestrating the collective talents of their entire team to achieve success.

Here are three reasons why the need for conducting skills has never been greater:

 

1) We are in the midst of revolution

The Digital Revolution (emphasis on the word “revolution”) is so named for a reason – nearly everything has changed. To ignore this unassailable fact is to actively refuse to evolve an organization to keep pace with the surrounding world. It is the equivalent of choosing irrelevance.

Further compounding the challenge of the revolution is that fact that it’s still happening. For example, Facebook algorithms change and the very tactic that works best one month can hurt your organization’s virality the next. New technologies create new advertising efficiencies – last season’s “tried and true” may be obsolete this season. It’s several full-time jobs just keeping up with the various aspects that go into a department. For instance, at IMPACTS, we are increasingly observing smart, forward-thinking organizations “outsourcing” aspects of their advertising strategy to more expert practitioners. This is not a knock on internal expertise – it is a compliment to the self-awareness of organizations that recognize the functional impossibility of maintaining expertise in an increasingly esoteric, evolving space. The advertising world is incredibly dynamic – it takes true experts who live and breathe it every day – to work with maximum efficacy. Increasingly, it’s simply too much for an individual working for one organization (without a grasp on the broader industry and without devoting significant resources to keeping up with day-to-day changes) to optimize an advertising plan.

Even a magical Chief who could stop time could not possibly hope to fully catch up on any one branch of their department – let alone all branches. Organizations increasingly need real experts. And organizations need Chiefs to hire these experts and trust them. Chiefs may benefit by realizing that – as awesome as they may be – it is unrealistic to think that they need to be more expert than the experts they’ve hired when it comes to the details.

When a leader plays the popular, “Now explain every aspect of this new thing to me while I fire back with actually-irrelevant, pre-digital revolution logic” game, the organization loses. If you’ve hired a good person, the only things a leader needs to consider are: “Will this work?” and “Does this fit with our organizational values?” and “Does this bring us closer to achieving our goals?”

 

2) Someone needs to preach to the choir

Sounds counter-productive, doesn’t it? In today’s world, though, it’s increasingly necessary. One of the most important roles of a good Chief is managing successful internal communications.

It’s difficult for conductors to successfully conduct when the sheet music hasn’t been distributed to the musicians. Worse yet, it’s even more difficult to sound like a brilliant symphony without hours of practice. Yet, in a rush to engage external audiences in our fast-paced world, organizations regularly underestimate the critical importance of taking a moment to get everyone on the same page. This is increasingly glossed over, and yet this is arguably more important than ever before given our real-time, digital world!

Reputation plays an important role in an organization’s success when it comes to garnering support – and managing reputation is a duty that every department – and the CEO and Board, of course – must work to carry out in concert. A good Chief communicates purpose and reinforces the “why” of the organization within their respective department and organization. Without this, nobody plays the same song at the same pace. Without first aligning internal messages – a function of relentless communication – it’s impossible for staff to successfully communicate externally.

 

3) You cannot rule from the mountaintop while stuck in the weeds

Organizations must be accessible 24/7 on real-time, digital platforms to answer questions and/or provide information from nearly all departments. The opinion of one, connected individual can have a real impact on an organization’s bottom lines.

If CEOs of the past needed to stand on the mountaintops to get a view of their kingdom, now they need to look out from space shuttles. Simply stated, today’s world demands that leaders develop a wider view of the institution and how it is perceived in order to develop strategy and confidently maintain an agile organization. If a leader is spending a disproportionate amount of time on one aspect of the organization (or one department), then they may miss the larger, more important, “big picture” aspects of the overall performance that they are supposed to be conducting.

More constantly-evolving areas of expertise (as we have in today’s world) mean more details with which Chiefs may unknowingly distract themselves. Real leaders don’t hide in the weeds – especially when their organizations need them most.

The opportunity here isn’t to simply encourage leaders to stop micromanaging.The opportunity is to clarify structures and roles to meet the opportunity of an evolved world. Today, successful leaders are conductors – they bring talented musicians together, communicate the song for everyone to play, and work hard to create beautiful music.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Sector Evolution, Trends Leave a comment
1 2 3 4 5 6 7 8 9 10 ... 16 17   Next »