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Heather Newill considers ways of avoiding difficulties with capital projects.
Wrong place, wrong time, wrong design, wrong builders, wrong customer, wrong stone... ! These are just some of the many excuses offered by our leading cultural institutions to the justifiably irate taxpayer in explanation of why they failed to deliver their much-publicised capital development projects on time and within budget. But who is really to blame?
A report commissioned by MPs earlier this year into capital Lottery expenditure in the cultural sector found that £337.3m had been spent on 15 flagship schemes, of which £19m was allocated to two new buildings that subsequently closed: The National Centre for Popular Music in Sheffield and the Dovecot Visitor Centre in Stockton-on-Tees. A further £78m was tied up in five other major projects that experienced financial difficulties and delays and four came in over a year late.
Cultural leaders face many challenges and require diverse skills, but most are totally unprepared for the task of working as a lone voice amongst an army of designers, architects, builders, surveyors and councillors. The cruel truth is that, whatever the cause of the problem, the end result will ultimately rest and reflect on their management ability. Thus, for many, the initial celebration of their Lottery millions turned into a nightmare of sustained pressure, stress and tension ? leading in several cases to burn out, breakdown, resignation or sacking. Directors felt trapped in the development process, unable to fulfil their creative potential but too loyal to the project to escape and move their careers on.
Fortunately, since 2001 and following the government?s recommendations in February, Arts Council England (ACE) has taken steps to address these issues and learn from experience. A stringent health check is now required before an award is made of more than twice an organisation?s turnover and the organisation must fulfil three criteria:
- All aspects of the building project must be robust
- The organisation must show a surplus each year; and
- The staffing structure must demonstrate the capacity to manage throughout the project and after the building opens.
In addition, ACE now awards up to £70,000 for capacity-building ? to be used for training in marketing, commercial expertise, improved financial management or governance. To encourage and support the vision and commitment of new project champions, past directors of some of the original flagship schemes have been invited to participate in seminars around the country, offering advice on the pitfalls and mentoring and coaching where needed.
Those leaders who have lived through the trials and tribulations of managing capital-development projects have unanimous advice for the uninitiated: raising money, filling in application forms, attending meetings, inspiring and motivating staff all take an inordinate amount of time and this should not be underestimated. Therefore, ensure the organisation is properly resourced with additional administrative support and a project manager with arts knowledge to work alongside the builders and make informed decisions. A box office or a backstage lift situated in the wrong place will have long-term implications on the success of operations.
Be realistic in the business planning ? a new building will not necessarily attract double the audience or visitor numbers, but it will cost a lot more to run. It is also surprising how many capital projects end in litigation, so a large contingency should be budgeted even if it means foregoing something else. Communication with customers and members throughout closure is vital to maintain profile and loyalty and you should not be pressurised into opening too early. Most venues use new technology in key operational functions and if it fails the whole system collapses (remember the opening of the Royal Opera House?) so several weeks of trials are advised. After spending millions on the new building, it is also important to invest the time and money to train staff to run it to the standards that its new customers will expect.
Finally, look beyond the opening date and plan for the legacy of the next 25 years. A new building needs a lifetime of ownership and must be invested in for the long-term future.
Heather Newill is Managing Director of AEM International, a search firm specialising in placing senior executives for Arts, Entertainment and Media companies.
e: hnewill@aeminternational.co.uk