Does UK Theatre Have The Wrong Business Model?
Most businesses focus on their core activity and outsource the rest - why does theatre do it the other way round?
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If you have ever worked with a creative entrepreneur you will have noticed how they do everything. They are creating, they are posting on social media, they are following up payments and trying to sell their services. And it’s not just creatives: in fact any small business owner will tell you that the most frustrating part of running a business is not having time to actually do the thing their business is about!
When I help creative consultancy clients to develop their practises and businesses we look at all the things they do and all the roles they play. We then try to work out what are the most important and valuable actions each creative needs to do. For example, the most valuable task a painter can perform is to paint, and for a choreographer it is to create dance. While Insta posts can seem important because they provide us with a series of little dopamine hits every time we get a like, they are, at best, an ancillary activity that helps publicise a business’s main activity but are not the main activity in themselves - and we have all been down that rabbit hole! A creative’s most valuable activity is creating and the work I do helps creatives recognise this. Our ambition as creatives is to get to a place where all we do is create and everything else is taken care of by a specialist or outsourced.
From the 1980s onwards one of the strongest trends in business has been to outsource activities that are not defined as ‘core’. This means that companies can focus on doing what they are really good at (and what is most valuable) and they can leave other functions to other people who are really good at them. Large companies that have dining facilities in their offices hire a catering company to provide that service for their staff, cruise lines will hire specialists to provide retail and spa services onboard and how very few companies employ full time graphic designers because it is not a core activity for most organisations - they use it when they need it. This theory in its purest form is designed to allow for focus on a core activity but it also helps companies save money (and grow their profits).
When a company’s key activity is connected to a high level of skills such as restaurants with chefs, airlines with pilots or Rolls Royce with skilled coach builders then there is no benefit in outsourcing those activities. This is down to two factors: control over product and public perception. Do we want an agency chef preparing our expensive meal or a temp pilot flying us across the Atlantic? But, more importantly, in order to maintain a quality product a company needs people who are good at the job that the company is known for.
And this brings us to theatres. If you were to carry out a business analysis of a theatre you would start by identifying its core activity. What is the one thing that a theatre does that is different to its competition and which makes it unique? Theatre is competing with many other forms of culture and entertainment. It is different from live music in that it tells a story and different from cinema in that it tells the story with live performers.
You might think then that creating and performing stories would be theatre’s core activity and that each theatre would prioritise hiring people with the skills to deliver this. Outsourcing theory tells us that everything outside of these skills and activities is ancillary to the core activity and should be done elsewhere. Because without a live performance there is no theatre. There could still be a building and an auditorium but, in the same way that cinemas became bingo halls in the 70s, the theatre would be a piece of real estate - with a bar!
And this is what is confusing about UK theatre because theatres in the UK do not have performers on their payroll on a full time basis. In fact the only people who are on short term and low paid contracts are the performers and creatives who, supposedly, have the most important role in the building.
I am not naive enough to think that there are not a myriad of financial and organisational reasons that could be brought out to justify this state of affairs. But I would also suggest that none of these reasons stand up to any meaningful scrutiny because we are consistently told by theatres that they have terminal financial problems and falling audiences.
Part of the UK problem is from the Conservative Government’s decision to reduce funding for arts subjects in schools coupled with a reduction in arts funding more widely. This is all exacerbated by complete mismanagement of the arts by Arts Council England which prefers questionnaires and dogma to actually supporting creatives - but I digress! Take a breath!
Why do I think that theatres’ justifications for their organisational structures don’t stack up? Firstly, the business model is not working. It protects the jobs of ancillary staff but not the core activity which is why there are mid-size regional theatres with large marketing, promotions and engagement teams but no capacity to actually produce theatre. These same theatres will insist that visiting producers provide their own promo material and give split contracts that mean that the touring show has to invest heavily in promotion in order to make a profit. This way of operating leads to theatres becoming little more than promotion and advertising organisations that put on shows.
Of course it is important to market, promote and advertise theatre and of course UK theatre would benefit from more state support both directly and in the wider context of education. However, the business model for the majority of UK theatres is not working and has been drifting away from core activities for the last three decades. Once upon a time bars were a service for patrons whereas now they are profit centres. Seasons and even weeklong runs have almost vanished and from a programming perspective there is a reliance on a continual string of one night stands. But theatres keep doing this same thing and keep expecting something to change. And we all know where that leads.
Theatre is full of creatives who come up with new ideas. So let’s think of a new way of organising our national cultural jewels. Why not have a theatre hire a permanent cast of actors and actresses who could develop their skills through constant work and build connections in the community over a period of time before moving to other jobs like people in ‘normal’ professions? These companies could be supported when needed by an outsourced team of marketers, social media professionals and programming assistants - much like in other industries.
Let’s look at the ridiculous way that funding is distributed and the insane amount of admin that goes with it. Where is the professional actor apprenticeship scheme? In every other industry companies have to invest in training, including apprenticeships, or pay the equivalent amount in tax. Right now there are only two drama based apprenticeships advertised on the UK Government website: a drama teacher at a private school and a finance assistant at a London theatre school. If you search for engineering apprenticeships you will find mechanical engineer, manufacturing engineer, civil engineer and maintenance engineer all on the first page. The Arts Council offers apprenticeships under the heading ‘You don’t have to be an artist to work at the Arts Council’ - and what are those Arts Council apprenticeships? The answer: marketing, customer service, grant management, finance or HR. No sign of acting, musicianship, art or creative skills.
In performer and creative focused theatres, strategies could be built around seasons, years and decades rather than having to book whatever touring tribute shows and TV comics were available. Theatres could run exchange programmes between themselves so costs could be shared, audiences better served and best practises spread around the industry.
There would still be a place for touring shows and one nighters in order to offer variety for audiences and time off for cast and creatives. There would still be input from marketing experts and engagement specialists that would help craft seasons and ensure that expert advice is on hand for creative and artistic directors. But above all theatres would be able to focus on what their core activities are and become what they always should have been - the home to great stories well written, well told and well enjoyed.
The JasonWard Creative Substack is for readers like you. I really appreciate your time spent here and invite you to support my work by taking out a subscription. A paid subscription gives you access to exclusive content plus the entire archive of over 100 articles, reviews, interviews, podcasts and playlists all full of creative insight designed to help you develop your creative projects and practise.