...weakening economy, internet bubble bursting, stock market collapse, events of September 11, 2001, support for the arts has been on the decline. A proposal has been presented that would merge the Utah Opera and the Utah Symphony. The belief is that this merger will help to cut costs and improve the perception of the two organizations, thus bringing interest back to the arts. Below is a list of the key players: Anne Ewers – General Director of Utah Opera since 1991. Known to be a very capable person and was presented with the opportunity to become the CEO of the newly merged organization. During her tenure Ewers has successfully eliminated a $450,000 debt left by her predecessor, increase the budget from $1.5 million to $5 million and increased the number of productions. Scott Parker – Chairman of the Board of the Utah Symphony since 1999. Background had been in healthcare where he oversaw the merger of several hospitals. Parker was the originator of the proposed merger to help offset some of the financial burden each organization was bearing. Parker approached Anne Ewers with the opportunity of becoming CEO. Bill Bailey – Chairman of the Board at the Utah Opera. Mr. Bailey opposed the merger saying the opera had financial strength that the symphony does not have. This is in regards to the reserve fund the opera had. Mr. Bailey also felt due to this financial strength the opera was more flexible than was the symphony. He is also concerned that the opera will lose its...
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...MERGER OF UTAH OPERA AND UTAH SYMPHONY 1 Laurie Taggart WGU / JFT2 Task #1 July 13, 2014 MERGER OF UTAH OPERA AND UTAH SYMPHONY A1. Bill Baily – Vroom’s Expectancy Theory Expectancy theory is the belief “…that people are motivated to behave in 2 ways that produce valued outcomes.” (Kreitner, 2013) This theory is best applied to situations that present two or more alternatives. As in the case of the merger between the Utah Opera and Utah Symphony. Bill Baily, Chairman of the Board for the Utah Opera will have to consider whether or not he will support the merger and if the merger will produce valued outcomes. There are three concepts that are key in Vroom’s expectancy theory: expectancy, instrumentality, and valence. Expectancy is the belief...
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...I have been asked to develop an action plan for Anne Ewers as she moves forward with the ongoing merger of the Utah Opera and the Utah Symphony. A balanced scorecard has been provided for both organizations, and this document will include analysis of the strengths and weaknesses of each organization and recommendations that Ms. Ewers can take to address the weaknesses. Additionally, I will analyze the four aspects (including strengths and weaknesses) of the scorecards for each company and finally identify one highly probable issue that could arise during the merger process in the areas of finance, human resources, and customer satisfaction. Recommendations will be made for how the merged company executives can mitigate each of these issues. A1 - Utah Symphony – Strengths & Weaknesses Financial Strengths Financial Strengths | 1. No long term facility liability. Facilities | 2. Top Tier of Group II Symphony Orchestras – USO endowment was $10 million in 2002 | 3. Rising Revenue/Contributions (Projected) | The Utah Symphony has several financial strengths to their credit pre-merger. 1. According to the case study, the Symphony does not own the facility in which they perform. Instead, the facility is owned by Salt Lake County. This can be viewed as a strength because it lessens the Symphony’s long term liability in terms of mortgage/tax costs and other expenses related to the long term ownership of such a facility. 2. Pre-merger, the USO...
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...in America. Approximately 6% of the funding for the performing arts is from federal, state, and municipal governments; 46% of the income is generated from tickets sales and individual contribution, remaining 36% from business and foundation giving; and 12% is from investment income. Scott Parker, chairman of the board of Utah Symphony, clearly stated that the Orchestra is extremely close to being in financial deficit. Their contractual obligation to pay salaries to their 83 employees in a weakened economic climate has impacted them adversely. Utah Opera will be in a similar situation as most of their financial support is from local and national foundations, corporations and individuals. In order to rescue the arts organizations, Anne Ewers was asked to contemplate the position of CEO of the combined Opera and Symphony organization of Utah. Given that these two have very divergent cultures, there will be great deal of challenges to unite these organizations. One of the main challenges to unite both organizations is that the Symphony environment is slow to change, while the Opera is more adept to change. Two examples of similar mergers in the past is the merger of the Madison Symphony Orchestra and the Madison Opera in 1963 and the Chattanooga symphony and the Chattanooga opera in 1985. The Madison Symphony and Opera eventually separated citing that they each wanted their...
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...Financial Strengths and Weaknesses of the Utah Symphony Before the Merger The financial state of the Utah Opera before the merger was grim. It was understood by the symphony’s chairman of the board, Scott Parker, that the situation was getting worse. This was aggravated by the downturn of the economy and the event of 9/11. However, even before the economic downturn and 9/11, the symphony was very close to a deficit situation (Delong & Ager, 2005). Scott Parker assumed the chairmanship to try to mitigate the situation. The average endowment or contributions for a Group II orchestra like the Utah Symphony is $8.8 million in FY 2001-2002. The endowment for the symphony is considered in the top end within its group. To be able to accumulate more than the average Group II orchestra is a financial strength. In January 2002, the total endowment for the Utah Symphony was $10 million. At the same time that the symphony is above the average orchestra within its group, it is also spending substantially. Artistic costs constitute the major expense category of expense for the orchestra (see Table 1). The symphony does not own its facilities. The building that houses the offices and the Abravanel Hall where the symphony performs are owned by the county. Most of the symphony’s cash (+90%) is allocated to orchestra and development (fund-raising) staff salaries, benefits, and payroll taxes. The orchestra musicians are unionized with annual salaries of $50,000 to $85,000...
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...Task 2 Diane Jackson Organizational Management Articulation of Response I was asked to analyze the Utah Symphony and Utah Opera merger proposal as Anne Ewers goes forward to manage the merger. I had to plan a proposal for Anne Ewers as she develops new strategies for measuring the success of this ongoing merger process. This art industry depends highly on donations from businesses and foundations. From many struggles, the art industries have developed low revenue, however; the Utah Opera and Utah Symphony need to integrate this merger for reduction of expenses for both organizations. Anne will need to implement other strategic goals that included, retain the audience platform and contract for musicians and key employees. Additionally, I had to implement a scorecard for both organizations showing weakness and strengths with recommendations of these formalities as to how Anne can mitigate these issues through the merger. A1. Utah Symphony Strengths and Weaknesses Financial Strengths Financial Weaknesses Endowment revenue High expenditure structure Profitability Low revenue from fundraising Leadership Strengths Leadership Weakness Keith Lockhart’s positional power as a music director for a symphony and opera. Unfilled CEO position Keith Lockhart’s experience to expand their performances Domineering in his position/partiality with staff A1a. Steps for Utah Symphony (Recommendation) Financial Strengths of the Utah Symphony are endowment revenue and profitability...
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...organization in the western part of the United States for decades. They have a rich, long history. Many strengths have contributed to this success and continue to do today. Financially, the organization is able to raise money through various means. For the fiscal year 00-01, the symphony was able to raise $3.8 million through performance revenues, $3.1 million through government grants, and $4.5 million through fundraising. With another $1 million coming from investments other minor sources, they had an operating budget of $12.4 million for the year. This puts the symphony well over its Group II, as designated by the American Symphony Orchestra League, orchestral peers that average an operating budget of $8.8 million. The symphonies fundraising and performance revenues are projected to increase for the 01-02 fiscal year, proving these a strength despite a slowing economy. A major financial weakness that the Utah Symphony must confront is the full-time salaries of the musicians. The symphony employs 83 musicians and they receive a salary between $50,000-$85,000 along with benefits. These partnered with the associated payroll taxes accounts for almost 60% of the symphony’s budget. In the next two fiscal years, the symphony’s problem isn’t looking better with the musicians set to get a 12.9% increase for the 02-03 fiscal year and another 6.8% for the 03-04 fiscal year. In terms of leadership, Keith Lockhart represents a great talent that contributes directly to the...
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...In analyzing the Utah Symphony and Utah Opera merger case study, it was obvious that many factors, finances, personalities, and even the community would be involved. The wide reaching affects of a merger between these two types of organizations was eye opening. At the time of the proposed merger, the Utah Opera had a stronger financial footing and was not in danger of closing. The Utah Symphony however, was sliding down a dangerous financial slope. The organizations were structured differently in their number of employees and financial compensation packages. These differences would prove challenging in a merger and could be the basis Bill Bailey would use to oppose such a merger. Bill Bailey, Chairman of the Board of the Utah Opera Organization, could site Adam’s Equity Theory model in opposition to the merger. This theory basically states that an individual’s behavior is motivated by feelings of inequity or injustice (Kreitner & Kinicki, 2010). The inequity between the two organizations is vast. The opera is financially sound and has very few full time employees as compared to the symphony. The artists for the opera are hired for the individual performances and not contracted year round like the symphony performers. The symphony also has four times the number of employees and these are unionized contracts. So in Bill Bailey’s eyes, the opera is being used to bail out the larger symphony with it’s more financially sound budget. Also, the symphony performers...
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...Anne Riley Laid Off: One of the most interesting topics covered in class for me was that of emotions and moods. I have a hard time understanding when and how to express my emotions. This has been a real problem for me in all of my relationships, both professional and personal. Though I have never been laid off I feel I relate to the case of Anne Riley to some degree. Anne was able to better understand and recognize her emotions and in the long run benefited from that knowledge. The case begins with Anne Riley meeting with a recruiter from Goldman Sachs’ Private Equity Group. She is hoping that this interview will eventually pay off with a permanent job upon her graduation. Throughout the case many descriptive words were used so that I, the reader, could better understand the emotions felt during each stage of the case. Though no words describe how Anne felt about the interview the reader gets the feeling that she in unfazed. Anne is confident in her ability to answer the recruiter’s questions and concerns. The case progresses, however, and Anne is caught off guard simply by a comment made by the interviewer. The Goldman Sachs representative mentions her background is similar to that of Anne’s in that she also worked for a private equity firm before beginning her MBA program. As the case states, “Riley’s heart began to beat a little faster; she worried.” I have interviewed for multiple jobs in my history. I remember when I was caught off guard by some questions...
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...income supposed increase by 1% in future. Expense increases expected of 2.5% High revenues from concerts Decline in public subsidies Increase in competition of public funding Low deficit at the end of the year. Carry burden of pledges not paid Leadership Strengths Leadership Weaknesses Experienced conductor in the Orchestra organization. Resistant to change Has a great background in TV (helps in marketing) Would prefer to cling to existing model for organization. Has the ability to lead Spends too much on fundraising efforts. Helped the Orchestra obtain the top orchestra spot in the 8 rocky mountain states. Protects his employees and ensures that opinions are heard The hardest part for Anne will be addressing these weaknesses. There are steps that Anne can take in order to address these problems. The steps that need to be taken are shown below: 1. Sit down and analyze the increase in expenses. 2. Come up with ways to combat the increase in expenses. Look into more fundraising. 3. Increase public awareness of the problems facing the Symphony. 4. Apply for more public subsidies, regardless of the decline in them. 5.Increase awareness of concerts to...
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...Task 1- Organizational Management A1. Bill Bailey Bill Bailey is opposing the merger of the Opera with the Utah Symphony for several reasons. Using the Adam’s Equity Theory, Mr. Bailey will have the opportunity to persuade the members of the board to reject the proposed merger. Adam’s Equity Theory states that employees perform at a higher rate if they feel that they are being treated fairly. Equity is obtained when a worker perceives that the reward for the amount of work performed is equal to that of a relevant worker. Negative inequity is perceived by employees as when the relevant worker receives greater rewards for the same work. Positive inequity is perceived as the relevant worker receiving fewer rewards for the same work. By using the Adam’s Equity Theory, Mr. Bailey can introduce several arguments to dissuade board members from approving the merger. The first argument would center on the financial operations of the Opera. The opera has been operating in a financially responsible way, while the symphony has not. The opera has been able to retire its major debt, and has created an endowment to facilitate future operations. Currently the opera has also successfully obtained financial support from several local and national foundations. The symphony is a large organization which has a full time staff and pays the symphony members a full-time salary. Additionally, they are classified as a Group II symphony and so they receive a smaller endowment than Group I symphonies...
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...principal and philosophical logic behind equity theory. As the name implies, equity theory is model of motivation that describes the feeling that interpersonal relationships should be fair and equitable in the workplace. More specifically, Adam’s motivational theory seeks to explain how an individual’s motivation to behave in a specific manner may be fueled by perceived inequity or lack of justice. There are two components to Adam’s equity theory; inputs and outcomes. Input can be things such as high caliber work, seniority, and expended effort or other intangibles a person puts into their ‘work’. Outcomes are items such as pay, benefits, promotions, and perceived job security. For example, Bill has expressed some concern regarding the fact Anne Ewers will...
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...Need for Affiliation – individuals have the desire to spend time doing social activities and forming social relationships. Mr. Bailey can utilize the McClelland Need Theory in the following ways: · Need for Achievement – Mr. Bailey can convince Anne Ewers that the merger can benefit her both personally and professionally. Ewers had already achieved great success at the Opera and she can showcase these achievements by utilizing her talents with fundraising and helping to increase the annual budget. Mr. Bailey can help the staff gain the need for achievement by encouraging them to help with fundraising activities and think of new ideas that would make the merger more efficient. Asking instead of telling is always helpful when in a position of authority. It’s important that staff feel they are listened to. · Need for Power – This need can be utilized in several ways. The board members can be led to understand that the merger will benefit both parties by focusing on the one thing they desire to improve: the public’s awareness and love for the performing arts. When two organizations merge, they are able to have double the talent and may be able to increase performances throughout the year which could increase revenue. Anne Ewers will have a new position that will put her in a position of power and this will give her the power to influence the members of the board and staff to recognize that change...
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...Utah Symphony and Utah Opera- A merger proposal Course instructor: Course: Name: Utah Symphony and Utah Opera- A merger proposal A Before the merger, Utah Symphony managed numerous budgetary issues. A significant budgetary shortcoming with the symphony is its powerlessness to arrange the compensations of the workers. The greater part of the symphony's representatives are under contact that abandons them with the money related load of needing to pay rates paying little heed to the ticket deals. A fiscal quality of the symphony was the above normal gifts. The symphony was acknowledged to be at the high end of a Group II symphony ensemble and gained an above normal enrichment for its status. An initiative quality for the symphony was the way that they had two pioneers, one for its performers, Keith Lockhart, and Scott Parker, who was the executive of the board. The symphony's CEO reported his abdication in 2002, which is an authority shortcoming. Needing to swap a CEO in an association as the symphony is a troublesome undertaking. Discovering an expert and prepared individual to be the CEO of the symphony was a real issue for them throughout this time of pressure. Preceding the merger, Utah Symphony battled with a few budgetary challenges including a prevalent shortcoming described by its failure to arrange gotten representative's pay rates. The latter is a PR shortcoming because it kept them from any adaptability viewing ticket deals as they were committed to paying...
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...Section A1. UTAH SYMPHONY FINANCIAL STRENGTHS 1. Performance Revenues: The USO is projecting an increase in performance revenues in the amount of $679,795. 00. By bringing in more money from ticket sales, the USO will help mitigate some of the damage done by the weakened economy. To reach this increase the USO increased their concert schedule and will likely need to modestly raise ticket prices. 2. Contributions: Fundraising was very strong for the USO. An increase of $619,772 in contributions is projected for the upcoming year. Giving the symphony much needed funds with the loss of some government grants. 3. Box Office Fees and Rentals: Projected to be a huge boon in 2002, the symphony will likely go from $3,829 to an astounding $243,000 dollars. By expanding the fees on ticket sales for the symphony, the organization will be able to tap into a resource that is almost brand new for the group. UTAH SYMPHONY FINANCIAL WEAKNESSES 1. Government Grants: The symphony depends on government grants for the arts like many other institutions around the United States. But after the terrorist attacks on New York City and Washington D.C. on September 11, 2001, the bubble bursting in the internet boom and other factors, the government was forced to make cutbacks on funding for the arts. The symphony is projecting a loss of $220,687. That is a big hit to the budget that needed to be made up for the group to function and pay their expenses. 2. Orchestra Salaries: Related...
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