When theaters do not empower the artistic individuals in their organization, they should consider vertical disintegration if they want to increase economic performance.

Over 40 years ago, Broadway had become more and more commercial. In order to respond, a small group of pioneers founded the American regional theatre movement. In the early years of the movement there was a certain organizational structure within these theaters. It was called a dichotomous structure; the artistic energy on one side and the administrative energy on the other (Whitehead, 2002). However, when the theaters become more popular and reached a larger audience , the administrative side of the theaters had become increasingly important in how the theatre operated. The people on the artistic side of the theater, were far away from the institutional decision-making centre of the theatre. The theatre now produces institutional art; instead of the artists, it's the institution who determines the ecology of artistic creation. Now there was a hierarchy; the various components in the theatre had very different access to and power over the budgetary process of the institution. The people on the administrative side, like the board, the administration staff and the marketing directors, had the most power. In contrast to the artists, producers and technicians, who are situated at the bottom of the chain and have therefore less power (Whitehead, 2002). To bring a better balance to the budget dialogue, the straight line would need to be curved into a circle, with greater connection and understanding among artists, administrators and board members.