the B rooklyn A cademy of M usic

1. A Stage-Gate Process for the Brooklyn Academy of Music PC | November 2007

3. A little bit about BAM • Located in Brooklyn, NY • BAM is a not-for-profit organization • First performance in 1861 • Facilities include Opera House, Theater, BAM Rose Cinemas (including BAMcinématek), BAMcafé and BAMshop • Recognized internationally as a preeminent, progressive cultural center with a ticket buying database of 250,000 people and an average atendance capacity of 85%

4. BAM faces some challenges • Audience overall is getting older • Location is removed from the main theater circuit • New entertainment competitors • Fundraising no longer in vogue

5. BAM embraces innovation • Renaissance started in 1967 under Harvey Lichtenstein • Lichtenstein installed the Next Wave Festival 25 years ago – a festival that brings together New York City’s most adventurous performers (music, theater and dance) and most curious audiences every year

6. But what is innovation? • “One way to arrive at a useful definition is to rule out what innovation is not. It is not invention. (...) These days much innovation happens in process and services.” The Economist, October 13th, 2007

7. BAM needs innovation to • Attract newer and wider audiences • Promote their performances more effectively • Assist customers in buying tickets and getting to the venue • Convince customers to come back • …and become lifetime BAM members

8. BAM needs a process for innovation • The average ROI for successful new products is 96.9 percent, with average payback period of 2.49 years. • Sounds good? • For every seven new product ideas, about 4 enter development, 1.5 are launched, and only 1 succeeds. • Winning at New Product, Robert G. Cooper • BAM needs to shoot for the winning idea every time.

9. The Stage-Gate process • A process to support the selection and development of the best products for BAM to achieve its goals(right now and in years to come)

10. Objective is to create products that • Provide unique features for our audience • Beat competition • Confirm high quality of delivery • Reduce audience’s obstacles in joining BAM • Confirm BAM’s legacy of innovation and novelty

11. The Stage-Gate process covers • Programs • Services • Tools

12. The Stage-Gate process doesn’t cover • Performances

13. The Stage-Gate process contributors • Executive Management • BAM Staff • Board of Trustees • Patrons • “Friends of BAM” • General Audience • Artists, Producers • Community, Neighbors

14. The Stage-Gate process evaluators • Executive Management: Managing Director • BAM Staff: Creative Director • Board of Trustees: Head of Marketing Committee

15. The Stages and Gates

16. The Stages and Gates • Set-Up • Organizational Goals • Business Unit Goals • Strategic Direction • Establish Criteria IDEA BANK

17. Stage 1 • Discovery • Internal Assessment • Stakeholder interviews • Board discussion • Survey of active members • Gate 1 • Filter ideas through our • pre-establish broad criteria • (items that define the mission, • vision, goals and objective for • this product) }

18. Stage 1 • “Firms have too many ideas and too much emphasis on creativity—more ideas merely choke the funnel even more.” • Harold Sirkin, Boston Consulting Group, co-author of “Payback” (book on innovation strategy)

19. Stage 2 • Research & Strategy • Surveys, focus groups • In-venue questionnaire • Competitor analysis • Community, neighborhood • Gate 2 • Filter ideas through a • surface evaluation • (a gentle scan against specific • criteria: potential, risk, legal, • compatibility, fit, barriers, etc.) }

20. Stage 2 • “Firms need really harsh discipline to weed out ideas quite quickly.” • Niklas Savander, Nokia

21. Stage 3 • Scope • Action Plan • Recommendations • Timeline, budget, staff • Funding options • Gate 3 • Detailed evaluation • (in-depth review of ideas • and commitment needed) • ONE idea is selected }

22. Stage 4 • Development • Fundraising, sponsor recruit • Engage vendors, consultants • “Friends of BAM” • Brainstorm, mission, tactics • Gate 4 • Review of development • (In line with vision, mission • and goals? Did we develop • the product that passed • the in-depth analysis?) }

23. Stage 4 • “Like a dog with a bone, people don’t want to give them up.” • Mark Little, GE’s head of research

24. Stage 5 • Testing • Focus groups • VIP members/Board dry run • Soft launch • Gate 5 • Validation of Testing • (Right questions, design? • Skewed? Neutral referees?) }

25. Stage 5 • “Innovation is a loser’s game, as we know most initiatives fail. But the truly innovative companies know how to deal with losing.” • Ron Adner, INSEAD

26. Stage 6 • Production Stage • Full production • Launch • Promote • Post-Mortem Stage • Review of what’s been learned • (Did we fulfill the original • criteria? Costs? Profit? Team? • Strengths/Weaknesses?) }

27. Stage 6 • “A crisis is a terrible thing to waste.” • Vinod Khosla, founder Sun Microsystems

28. Stage-Gate Recap • A process to • Formalize a new system • Consider different viewpoints • Evaluate financial commitment • Speed up decisions • To result in • Quality products • Direct dialogue with customers • Overcome competition • Increase donations

29. Thank You