Case 13 Repertory Theater
Setting: Repertory Theater; Your Position: Executive Director
You are the executive director of a repertory theater affiliated with a major university. You are responsible for both financial and artistic direction of the theater. While you recognize that both of these responsibilities are important, you have focused your efforts where your own talents lie--on ensuring the highest level of artistic quality in the theater's productions.
Reporting to you is a group of four department heads responsible for production, marketing, development, and administration, along with an assistant dean who is responsible for the actors who are also students in the university. They are a talented set of individuals, experienced in working together as a team, and committed to the theater. Your confidence in them was confirmed during the last six months when you left many of the management decisions up to them while you were involved directing a play on Broadway. They dealt with problems very well and reported that "things work better when you are out of town." This is welcome news since your play's run may be extended, and you may need to prolong your stay in New York City.
Last week you received a comprehensive report from an independent consulting firm commissioned to examine the financial health of the theater. You were shocked by the major conclusion of the report. "The expenses of operating the theater have been growing much more rapidly than income, and by year's end the theater will be operating in the red. Unless expenses can be reduced, the surplus will be consumed, and within five years the theater might have to be closed."
You sent the report to your staff and are surprised at the variety of reactions that it has produced. Some dispute the report's conclusions, criticizing its assumptions or methods. Others are more shaken, but even they seem divided about what steps ought to be taken. None of them, nor anyone connected with the theater, would want to close it. The theater has a long and important tradition both in the university and in its surrounding community.