Public spending on culture is coming under noticeable pressure. In many places, the share of the budget allocated to culture is declining. At the same time, the trend toward impact-based funding is gaining momentum: funding agencies are increasingly seeking demonstrable results rather than distributing flat-rate grants. For cultural institutions, this is both an opportunity and a challenge. Those who act strategically and demonstrate impact can face new funding models and questions of relevance with greater confidence.
The situation is clear. In many countries, culture is a discretionary responsibility within local government. At a time when there is barely enough money even to fulfil mandatory duties, opportunities for savings are naturally being sought in this area. A particular challenge lies in the fact that, in many local authorities, institutional funding in particular has grown automatically in recent years, without cultural institutions having to undergo comprehensive impact assessments or evaluations of their work. As long as sufficient funds were available, new ideas could be financed without questioning existing structures. However, museums, theatres, libraries and the independent arts scene are increasingly coming under pressure to justify their existence. Many funding bodies are critically questioning previous funding policies and seeking new ways to support culture where it matters most. Increasingly, they are turning to impact-based funding.
If the intended impact is not achieved, funding cuts follow. This reality is uncomfortable, and it is precisely for this reason that we are called upon, as an institution, to take a proactive approach to the issue. Those who develop their own logic of impact, design measurable indicators wisely and visibly reach their audience will transform from the object of evaluation into the subject of the narrative: not justifying actions after the event, but leading the way in advance. Role models for this include, for example the ROC in Berlin, those who have established their own impact management systems under Anselm Rose, or the Staatsphilharmonie in Reinland-Pfalz, which, under Beat Fehlmann, has placed the impact achieved by its concerts at the heart of its strategy. In both cases, the focus is not on one-dimensional measurement of key performance indicators, but on a multidimensional assessment of various factors that make impact measurable in both social and artistic terms.
The key lies in action rather than reaction
The examples show that an impact logic requires a robust impact architecture with a clear mission, a transparent impact model (from inputs through activities and outputs to outcomes) and a balanced set of qualitative and quantitative indicators. There is no single ‘correct’ system of indicators. Impact and its measurement always depend on the specific objectives. Accordingly, an impact logic can be developed top-down (for example, when a local authority redesigns its funding programme to be impact-oriented) or bottom-up (when an institution convincingly demonstrates why its work is effective and how this can be substantiated).
In practical terms, this may involve cultural institutions developing an impact strategy or impact architecture, or establishing a system of key performance indicators – including qualitative indicators – and using these impact factors to engage in a structured funding dialogue with their funding bodies. On this basis, organisational structural changes (e.g. adjustments to departments, roles and processes) can also be successfully implemented, as currently recommended in the „Zukunftspakt Bühne“ (Future Pact for the Performing Arts), which is also supported by the Deutsche Städtetag. The foundation of any impact measurement lies in a high level of data literacy, for example in ticketing, audience research and the ongoing monitoring of all management control systems.
actori can support you through this process. Working alongside you, we develop not only strategies for greater reach and financial efficiency, but also a transparent impact pathway that removes the ‘cost-saving’ argument from funders’ hands, because impact is not merely claimed but proven. In other words: those who define, measure and communicate impact today will negotiate from a position of strength tomorrow.
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An article by Franziskus Linsmann, Project Manager.