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Governance

 

 
HUTT ART: THE NEXT FIFTY YEARS
 
Part 1: Governance Plan 2010
 
 
Introduction
 
The Hutt Art Society was founded by artists, for artists, but in addition, over the last 50 years it has considerably enhanced the cultural fabric of the city – a fact that has been recognised by successive city administrations. It was founded in 1958 by Elizabeth Harper, herself an artist, and a group of her friends.  Over the years it has grown to encompass pottery, sculpture, spinning and weaving, embroidery, china/porcelain painting and silk painting, plus others like wood turning, doll making and floral art which have come and gone. In 1972, in dire need of a home, the Society obtained a long term lease on 9 Myrtle Street from the City Council. Six years later it obtained an extended tenancy on 11 Myrtle Street, next door. It started customising the rooms, to better serve the needs of its members, and planning to link the two buildings with a gallery in which to display the members’ work. In 1979 the Odlin Gallery was opened (1).
 
Hutt Art currently has about 200 members and is growing slowly. A little under half these are practising painters, the remainder are potters, ceramic painters, print makers, other artisans and non-practising supporters. Irrespective of their levels of skill, almost all are amateurs. In this increasingly electronic age, there is a disturbing trend of smaller art and cultural clubs facing financial problems. Many are in decline and some have even lapsing into recess.  The biggest issue we face for the future is:
 
 How can we best support grass-roots art in the Hutt Valley for the next 50 years?
 
 
Status Quo
 
Currently Hutt Art is administered by a President and Council elected from the membership.  It employs a part-time office administrator, but cannot afford any permanent staff. Essentially the council has two aspects to its function:
 
·         Management function ie short term running of the organisation such as building maintenance, cleaning, and public relations; and
·         Strategic and financial planning to ensure the organisation has a future   
 
Together these are called governance which may be a new word for some people. Briefly it means the persons (or committees) who make up a body for the purpose of administering something and the processes and systems used in administration.
 
All council members are willing and able to handle the day-to-day running of the Society but few have any PR experience or high level corporate skills such as strategic and financial planning. 
 
It would be fair to say that the bulk of the membership of the Society just want a place where they can practise their art in (ideally) a stimulating environment, which is not too expensive. 
 
It is the task of the current administration to plan for the future but, by and large, they lack the skills to do so.
 
A number of other culturally-based organisations eg The NZ Ballet Company and The Orpheus Choir, have faced this dilemma and solved it by seeking expertise from philanthropic members of their community who have these skills. It is a growing trend both here and overseas. This inevitably will mean a change to the administrative structure for Hutt Art.  Overseas there are even consultants who specialise in the governance of voluntary and non-profit organisations.
 
 
First Steps
 
The experience of other cultural organisations has shown that there are professional people who have an interest in the arts, who would be willing to help us. We need their expertise to:
 
·         Help the City Administration and community understand the need for the work of Hutt Art.
·         Develop plans for a sustainable future of the organisation
·         Develop goals to move the organisation towards its agreed future shape.
·         Anticipate future financial changes and adjust policies accordingly.
·         Develop proactive policies instead of reactive ones.
·         Monitor the effectiveness of the strategies and policies.(2)
 
Before we can start to identify likely people who might be able to help, let alone imagine the possible shape of the new organisation, the members of Hutt Art must decide and agree on what their Society stands for, both now and in the future. In other words it needs formal Vision and Mission Statements. In most organisations these are separate statements but our mission is so loose, that the two could be combined into one.  Here is one as a starting point:
 

 
Hutt Art: A vibrant, financially-sound organisation, which forms an integral part of the city’s culture
 

 
At some point in the not too distant future, members will be asked to endorse this vision or propose a more appropriate one.
 
 
An Organisational Model
 
What will the new administration look like? All the literature emphasises that there is not a single governance model which will fit all organisations. Nathan Garber, a Canadian consultant, states that . . . “Non-profit Boards tend to follow one of five different approaches to governance.”(3) Each approach has different roles and responsibilities for members of the Executive Board which reflect different relationships between the Board and the organisation and differences in size, purpose and history of the organisation. Each carries its own strengths and weaknesses.
 
Advisory Board Model
 
In this model the Executive Board’s role is primarily as an advisor to the CEO (or in our case the Management Council). Individual board members may be quite active and consequently feel that they are making a valuable contribution. Board meetings tend to be informal and task-focussed with agendas set by the management council. This type of model can work quite well for a short time, but inevitably the question will arise about where the control lies – who is running the ship?
 
 
Patron Model
 
This model is similar to the Advisory Board Model but in it, the Executive Board has even less control. The board is usually composed of wealthy or influential individuals and serves primarily for fund raising purposes. Board meetings are infrequent because the real work is performed outside the boardroom. The Patron Model is of little value for such governance tasks as vision development or organisational planning.
 
 
Co-operative Model
 
For a variety of reasons some organisations try to avoid hierarchical structures. The board may consist of official board members, staff members and ordinary members of the organisation (not that we have ordinary members). Decision making is typically carried out by consensus and is often slow and convoluted. It works well when all members share a common vision and goals. When this happens it provides great strength and unity to the organisation. The model has two weaknesses. Changing personnel within the board may change the ‘group think’ that this model relies on, and there may be accountability issues if/when things go wrong.
 
 
Management Team Model
 
This is easily the most commonly seen governance system for non-profit organisations, especially where there is no paid staff. In this case, Board members assume the management role and frequently split into specialist committees such as management, finance, fund-raising, strategic planning. The model works well for ‘hobby’ groups such as ours. In fact most texts on governance of non-profit organisations written before 1990 cite this as the ideal model. Deficiencies in the model revolve around the different requirements of management practices and governance practices.   
 
 
 
Policy Board Model
 
This model revolves around the ‘means’ and the ‘ends’. The board confines itself to policy, strategy and planning (the ends) and leave the execution of it (the means) to the staff or in our case the management council.  The board then only has to monitor how its ‘ends’ are being met, to ensure that the organisation is running properly. In this model the ‘ends’ are always more important than the ‘means’.(4)
 
Which model is the right one for us? The above list is not exhaustive. The model finally chosen might be none of these, but there is a good chance that it will be a version of one of them. It is too soon to make that choice because some of the most important players are not yet ‘on board’.
 
 
Where To From Here?
 
It is not too soon for the owners of Hutt Artie the members, to start thinking about what type of organisation they want to see in the future. Here are a few questions which might help focus our minds(1)
 
·         Do we need an Executive Board or can the organisation survive without one?
·         Do we have a clear understanding and agreement on the purpose of our organisation? Is it written down?
·         Do we have any basic values that guide our organisation? Are they written down?
·         How do we know the value of our organisation to the community? Does it have a future worth planning for?
·         What financial resources do we have? What are our financial needs likely to be, for the future? What sources of finance can we rely on in future?
·         What will we expect members of our Executive Board to contribute? Why?
·         What mechanisms will be put in place to ensure that the strategies and planning that the Executive Board will put in place, will meet the needs of the owners?
 
 
 
Conclusions
 
There are no recommendations in this paper but there are conclusions.
 
·         The current administration of Hutt Art are basically artists and do not have the high level corporate skills required to ‘future-proof’ the organisation. These skills are not in evidence elsewhere in the Society.
 
·         There are culturally-aware professional people within the community who would be willing to donate their skills to ensure the survival of the organisation. We would be placing a great deal of faith in these individuals. To co-opt these people into the organisation will require some degree of change to the administration of Hutt Art.
 
·         Tried and tested governance models do exist. Great care must be taken to ensure the model chosen fits both the needs of the owners (ie members) and those who are willing to donate their time and skills.
 
·         The first step is for the members to decide what Hutt Art stands for, both now and in the future.
 
 
References
 
1.      Strachan, Caroline; A History of the Hutt Art Society 1958 – 2008
2.      Volunteer BC; A – Z Directory for Board Governance
3.      Garber, Nathan; Governance Models: What’s Right for Your Board
4.      Carver, John; Boards That Make a Difference
 
 
 

 
 
 

 

HUTT ART: THE NEXT FIFTY YEARS

 

Part 2: KNOWING OURSELVES

 

 

Introduction

 

This paper follows on from the Hutt Art Governance Plan 2010(1).  In it, we made the point that in order to future-proof our organisation for the next 50 years, we needed the expertise of members of the business community who can see value in our continuing existence.  These people do exist.  We borrowed a series of questions from Nathan Garber(2), a Canadian consultant on the Governance of Non-profit Organisations.  Paraphrased slightly, these questions are:

 

·         Do we really need the expertise of the business community or can the organisation survive without it?

·         Do we have a Vision for the future of our organisation?  Is it written down?

·         Do we have a clear understanding and agreement on the purpose of our organisation?  Is it written down?

·         Do we have any basic values that guide our organisation?  Are they written down?

·         How do we know the value of our organisation to the community?  Does it have a future worth planning for?

·         What financial resources do we have?  What are our financial needs likely to be, for the future?  What sources of finance can we rely on in future?

·         What will we expect members of the business community to contribute?  Why?

·         What mechanisms will be put in place to ensure that any future strategies and planning that may be put in place, will meet the needs of the owners?

 

These questions will require answers before we can proceed further.  The questions were brainstormed by your Governance Sub-committee but in order to make the results meaningful, they will have to be endorsed by the owners ie the members.

 

 

Do We Need the Expertise of the Business Community?

 

Do we really need the expertise of the business community, or can the organisation survive without it?  Although the operating climate is becoming more difficult year by year, we feel confident that Hutt Art will be able to survive in the short term, in its present form.  Apart from running the day-to-day administration, we the Hutt Art Council, must also plan for the future.  We lack the high level corporate skills such as PR, strategic and financial planning that will allow us to thrive in the 21st century.  There is a great deal of difference between ‘survive’ and ‘thrive’.

 

Our Vision for the Future

 

Do we have a Vision for the future of our organisation?  Is it written down?  A Vision Statement should be short and inspiring, but does not have to be time-bound.  At the moment Hutt Art does not have an agreed Vision Statement but here is a proposal:

 

Hutt Art: A vibrant, financially-sound organisation which forms an integral part of the city’s culture.

 

 

Our Purpose (Mission)

 

Do we have a clear understanding and agreement on the purpose of our organisation?  Is it written down?  The short answer to both questions is no.

 

Hutt Art was formed by artists for artists.  The members are in effect, the owners of the Society.  Although the purpose of the Society, to our knowledge, has never been stated, over the last 50 years its purpose has become evident.

 

·         To support ‘grass roots’ art within this community

 

·         To provide mutual encouragement and commitment for its members

 

·         To provide opportunities for learning both for its members and the community

 

 

Our Values

 

Do we have any basic values that guide our organisation?  Are they written down?

A value is an orientation or an idea that an individual, or group of individuals, considers to be correct and important.

 

·         To encourage members to strive for personal excellence and artistic growth

 

·         To provide the best environment possible, to enable this to happen

 

·         Not For Profit.  Any income is channelled back into the organisation

 

 

Hutt Art in the Community

 

How do we know the value of our organisation to the community?  Does it have a future worth planning for?

 

To our knowledge, the value of our organisation to the community has never been measured.  If indeed this is possible.  We have however, received continuing support from a succession of city administrations, over a long period of time(3).  This would lead us to believe that intuitively we are seen as an important element in the cultural fabric of the community.

 

 

Financial Needs and Resources

 

What financial resources do we have?  What are our financial needs likely to be, for the future?  What sources of finance can we rely on in future?

 

Our financial resources are:

 

·         Member’s subscriptions

·         Hire of our rooms to outside organisations

·         Commissions on the sale of art work through the Odlin Gallery

·         Grants and Donations

 

Here is the nub of the issue.  This is only just enough to meet the existing needs of the Society.  We cannot fund any growth.  This is the start of a downward spiral which, if left unchecked, will lead eventually to our demise.

 

In future we can only rely on the first three above.  We cannot budget for grants and donations because we have no control over the amounts we receive; and there is a limit to the amount of income we can generate through subscriptions. 

 

In order to thrive we need further sources of income, but we lack the financial skills to obtain them.  Without them we will be unable to achieve our Corporate Vision.

 

 

What Skills Do We Need?

 

What will we expect members of the business community to contribute?  Why?

 

We will not be asking members of the business community to contribute financially, but we will be seeking their assistance in:

 

·         Strategic planning and direction

·         Financial expertise and planning

·         Business acumen

·         Personal contacts

 

As outlined in the first paper, there are art-loving members of the business community who would be willing to help voluntarily.  They would do this for the satisfaction of knowing that they are providing invaluable assistance to the art scene within this community.

 

 

Safeguards

 

What mechanisms will be put in place to ensure that any future strategies and planning that may be put in place, will meet the needs of the owners?

 

Hutt Art was set up primarily for artists – we must never lose sight of that fact.  It is very likely that the solutions proposed by businessmen, will be vastly different from anything the existing administration could come up with.  How can we be sure that these solutions will lead us in directions that we want to go?  No doubt the businessmen (or women) will want to have input into addressing this requirement, so we cannot be too pedantic about the mechanisms.  Two principles should be upheld:

 

·         Elected officers of Hutt Art should be involved in all stages of financial and strategic planning

 

·         Any strategies adopted should reflect the values of the Society – which is all the more reason for us to get the values right at this stage.

 

 

Recommendations

 

It is recommended that:

 

1.      The direction of governance outlined in the papers be endorsed by members at the next Annual General Meeting.

 

2.      Irrespective of the outcome of that vote, the Vision, Mission and Values statements be endorsed by members

 

·         Vision:  Hutt Art: A vibrant, financially-sound organisation which forms an integral part of the city’s culture.

 

·         Mission:

-          To support ‘grass roots’ art within this community

-          To provide mutual encouragement and commitment for its members

-          To provide opportunities for learning both for its members and the community

 

·         Values:

-          To encourage members to strive for personal excellence and artistic growth

-          To provide the best environment possible, to enable this to happen

-          Not For Profit.  Any income is channelled back into the organisation

 

 

References

 

1.      Balm, David;  Hutt Art:The Next Fifty Years.  Part 1 Governance Plan 2010

2.      Garber, Nathan;  Governance Models: What’s Right for Your Board

3.      Strachan, Caroline;  A History of the Hutt Art Society 1958 – 2008

 

 

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