2013 – 2016 Strategic Plan Conclusions

Download Report

Transcript 2013 – 2016 Strategic Plan Conclusions

Cantare Con Vivo

Strategic Plan Summary 2013-2016

For complete strategic plan, please contact the Cantare Con Vivo office at (510) 836-0789 or [email protected]

1

2013 – 2016 Strategic Plan Conclusions

Cantare will focus on three strategic paths – 2013 – 2014 • For the balance of the fiscal year, focus on income development and cost reduction in baseline operations and reinvest in critical organizational infrastructure changes 2014 – 2016 • Continue to invest in business development via a focus on new market opportunities • Invest in additional organizational infrastructure changes 2

Four Priority Strategies

• • • • Financial Management – Increase CCV annual income, earned income, and financial metrics. Also to rebalance income across donor contributions, grants, corporate sponsorship, tuition, and introduce planned giving and other earned income opportunities Program Development – Increase CCV’s exposure and presence through new and unique collaborations with other performing arts organizations along with the introduction of new performing art opportunities for underserved groups in the arts, i.e. seniors, multi-language and cultural citizens Succession Planning – Sustain the Cantare vision and community efforts through expanded presence, internal development of leadership resources, and a continuum for the organization’s leadership into the future E&O Program – Further develop and support Cantare’s presence in the youth/education community through enriched instruction, expansion of the existing programs and the introduction of new value added education and performing opportunities, i.e. school assemblies, a Young Men’s Choir 3

Methodology

• • • Each team conducted numerous meetings, focus groups, and idea exchanges among themselves and then back through the central committee where their ideas and suggestions have been synthesized and reprioritized for recommendation to the board for adoption. All in all, some 12-16 potential strategies have been thoroughly vetted (4-5 per group). The Top 2-3 will be selected by the ad hoc leadership team to determine how and when these strategies should be implemented.

The final selection of strategies recommended for approval to the board of directors is limited to those with the most promising potential to impact the following Cantare metrics: –

Reasonably expand over 3-5 years providing for measureable and sustainable growth

Meet the requirements of best business practices.

Continue to espouse the spirit and intent of the Cantare Con Vivo mission and vision.

Be economically feasible as well as reasonable.

4

Business Planning Strategic Assumptions

2012 – 2013 Operating Revenues

Costs Reserves (estimated at 12.23% Annual) R:C Ratio Debt Ratio (based on report no current debt) Burn Rate Income Partitions • Adult Org • Children’s Org • GA (Staff) Expense Partitions • Adult Org.

• Children’s Org • GA (Staff) Marketing Driven Revenues Development Driven Revenues Baseline Driven Revenue

512K

447K 22K 1:.87

0 37.2 / mo.

Not Avail Not Avail Not Avail Not Avail 90 to 95%

2013 – 2016 Projections and Assumptions Operating Revenue

Cost Reserves (estimated at 12.23% Annual Project surplus R:C Ratio Debt Ratio Burn Rate

535K (2012-13)

544K 66K 0 .98:1 None 45.3K / Mo

600K (2013 14)

581k 73K 10K 1:.97

None 48..4K/Mo.

642K (2014 15)

585K 81K 73K 1: .91

None 48.8K/Mo

687K (2015 16)

626K 84K 87K 1:.91

None 52K/Mo Revenue Adult Choir Youth Program Staff & G/A Total Expense Adult Choir Youth Program Staff / GA Total 204K 304K 28K 535K 189K 207K 158K 544K 228K 336K 36K 600K 197K 221K 163K 581K 243K 360K 39K 642K 197K 221K 167K 585K 261K 385K 41K 687K 207K 237K 192K 626K Assumptions (1) Marketing and development resources will be funded. (2) a 7% year over year growth rate is applied to rev. Expense are held flat through 2016 reserves are funded at a rate 12.23% of annual income. Assumes reserve baseline 2013/14 of 65K. (3)Additional resource required are funded out of a one time 2013/14 budget reduction of 8% (approx. 44K).This budget will fund baseline and all other opportunities must fund themselves through additional income development.

5

Seven Year Cantare Expense Summary Forecast Total Expense

650 000 600 000 550 000 500 000 450 000 400 000 350 000 300 000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Seven year expense analysis indicates 24% growth in organization costs year one to year seven.

6

Revenue Seven Year Summary / Forecast Total Revenue

750 000 700 000 650 000 600 000 550 000 500 000 450 000 400 000 350 000 300 000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Seven year revenue analysis indicates 34% growth in organization income from year one to year seven.

7

High Level Trend Analysis of CCV Baseline Growth Potential

Strategic Business Factors

Total Assets Avail 2012-13 2013 -14 2016-17

512K Total Presented * Excluding Wong Fund Adult Choirs Children’s Program General Admin % Growth 2012 Distribution of income by general opportunity Not Tracked Not Tracked Not Tracked 4% • • • • • • 85 to 90% considered baseline growth with the major contributors being: Children’s school program, funding – 25% Adult Tuition – 8% Individual Donors – 21% Ticket sales – 13% Foundations – 10.6% Misc Fundraising – 11% 535 K 204K 687K 261K 304K 385K 28K 41K % Growth 2013/14-16= Ave 5% Distribution of proposed income by general opportunity.

In addition to already estimated baseline growth Cantare should look for revenue growth of approximately 7-15% through marketing and development for the balance of the year.

Does not include reserves and new income.

• • • • • • Distribution from growth opportunity should focus on the following: Reasonable baseline Corporate sponsors Planned Giving Focus on R:C Income and expense per member Concentrated Marketing and Development effort 8

2013 – 2016 Cantare Strategic Applications

Financial Assurance & Management

– Focus on new market opportunities and revenue funding sources—in particular, corporate sponsorship for planned performance activities, philanthropic corporate donations, planned giving, and foundation support, etc – Monitor cost-to-revenue business ratio to establish ample reserve funds and to establish a set of critical success factors by which to measure progress – Develop product marketing strategies to realize better earned income from concert and performing event ticket sales – Implement strategies to increase current individual donor base – Make Cantare Board of Directors more accountable for the achievement of the organization’s strategic business goals and objectives •

Programing

– Initiate collaboration concerts with instrumental ensembles including orchestras and various chamber groups – Collaborate with various arts organizations, including dance, art, museums, etc., to grow audience base and further develop artistic engagement – Introduce non-auditioned adult ensembles, (one annually, targeting identified groups of people for 8 week series) – Commission work for CCV’s 30 th anniversary in 2016-17 9

2013 – 2016 Strategic Applications Continued

• •

Succession Planning

– Hire administrative staff to assume appropriate priority tasks in need of transitioning from the responsibility of the artistic director – Collaborate with other choirs and guest choir directors routinely designed to broaden the value Cantare brings to the area and enhancing the experience of the Cantare performers – Invite guest director(s) to host entire series (including rehearsals) with either Cantare Chorale or Chamber Ensemble

E&O

– Expand administrative and teaching support staff – Expand in-school educational class offerings with partner schools – Provide monthly school sing-alongs and guest artist performances with partner schools – Provide additional funding for professional development opportunities for teaching artists – Begin a new choral ensemble targeting young men ages 13-21, in the East Bay 10