Dayton, Ohio combines the Dayton Philharmonic, Dayton Ballet and Dayton Opera into the Dayton Performing Arts Alliance
In the face of deficits in the business world, mergers and acquisitions can save companies bottom lines. Yet Orchestra's, Ballet's and Opera's have all acted independently in most major cities while costly borrowing performers from each other for their seasons. Dayton, Ohio has provided a first-of-its-kind solution! Declining ticket sales and decreased profitability led them to do a merger of three completely separate, yet dependent performing arts organizations.
From the news release in February 15, 2012:
"Artistic directors Tom Bankston of Dayton Opera, Karen Russo Burke of Dayton Ballet and DPO music director Neal Gittleman will be retained under current orchestra manager Paul Helfrich, who will be the new group’s president and chief executive.
A single board of trustees also will be formed.
Mergers in the arts world are unusual and generally include two closely associated groups, such as a pair of museums. There is no known precedent in the U.S. for an arts group incorporating three varied organizations with budgets of more than $1 million" (Dayton Daily News, 2/15/2012)
This is an incredible effort of consolidation that is needed in the arts world. I heavily applaud Dayton's new Performing Arts Alliance and I encourage everyone in the area to support this new concept.
The genius in this merger comes from combining business structures. Operating an orchestra is a difficult job for a Chief Financial Operator, but certainly not one that needs 9-5 with evenings and a large staff. Operating the budget for three different organizations now forces the business structure to grow and act more efficiently as a result, thus creating synergy! It's like how many of my friends get a lot more done when they have way too much to do, but can't finish a simple project when they have nothing to do.
“The merger of the Ballet, Opera, and Philharmonic represents some of our best collaborative thinking as a community,” said Dick DeLon, Dayton Philharmonic Board Chair. “We are planning for future success by creating a single management structure and business operating unit, while preserving and promoting the integrity and identity of each of the participating arts groups” (Culture Works 2/15/2012).
While creating cost efficiencies is probably the primary focus of the merger, I think the more exciting part about this merger is the potential for collaborations and better community outreach. With all performing organizations operating so close together, there is sure to be a lot happening in Dayton in the coming years! Bravo!
If you want to read more, Culture Works has a fantastic article highlighting the merger.
