Context
With its five artistic disciplines, Theater und Philharmonie Essen GmbH (TUP) ranks among the leading multidisciplinary performing arts institutions in the German-speaking world. Like many cultural institutions, TUP faces the challenge of responding strategically and structurally to changing financial conditions. Against the backdrop of the city of Essen’s strained budgetary situation, the City Council decided to develop a plan of action for the sustainable financial consolidation of the company. At the same time, there was a lack of a shared strategic vision for the institution’s future development. The central challenge was to develop viable paths toward economic stabilization while simultaneously safeguarding all five artistic disciplines and the TUP’s artistic capabilities.
Approach
actori supported TUP and the City of Essen over a period of about six months through a three-stage process. At the outset, a comprehensive analysis of data and more than 20 interviews were used to develop a well-founded picture of the current economic and organizational situation. A benchmarking analysis with eight comparable institutions allowed for the evaluation of key performance indicators in the areas of services, personnel, and finances. Building on this, qualitative and quantitative optimization strategies were developed and, in part, jointly discussed and further refined during a cross-departmental workshop with approximately 20 participants from TUP and the city administration.
The analysis identified potential for optimization amounting to several million euros for the 2030-31 season. These measures do not entail significant cuts to operations but rather include revenue increases – such as program adjustments, higher ticket sales, and expansion of third-party funding and venue rental activities – as well as cost reductions in the form of potential staff reductions, additional personnel measures, and optimization of operating expenses. Subsequently, actori developed three future scenarios and evaluated them in terms of their financial, artistic, and social impacts. The results were presented to the TUP Supervisory Board and at a cross-party informational event; they provide a sound foundation for political decisions regarding the institution’s structural development.
Impact
- The study, which included a benchmarking analysis of eight comparable institutions, provided clarity on TUP’s positioning and identified specific areas for consolidation and optimization.
- The identified optimization potential – independent of any specific scenarios – allows for the initiation of initial steps to improve results even before a political decision is made.
- The future scenarios provide the shareholder and the Essen City Council with a robust and transparent basis for decision-making regarding the structural development of TUP.
- The assessment of financial, artistic, and social impacts supports balanced and sustainable political decision-making.
–
The project has been implemented by Matthias Gutheil and Michaela Herrmann, consultants, as well as Dr. Nora Pähler vor der Holte, Associate Partner.