MEDIA Strategies Permeating Negotiation Strategies: Analysis to message to Media

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MEDIA Strategies Permeating Negotiation
StrategiesAnalysis to message to Media

• William Thompson
• University of Louisville
• wethom01_at_louisville.edu
• 2009 ICSOM Conference
• Norfolk, Virginia

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Realistic analysis goals

• Perform a sound budgetary analysis under extreme
  time pressures
• Contribute positively and credibly to economic
  discussion about your institution
• Position yourself with information that equalizes
  negotiation power
• Develop knowledge that guides musician philosophy
  toward orchestra operations

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Relying on audits

• provides financials legally certified as reliable
• BUT
• Has a limited set of data
• About a financial situation thats months out of
  date

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My observation musicians need

• Real-time financial knowledge
• Detailed enough to determine
• Problem areas
• Praiseworthy areas
• Sophisticated enough to develop a deep media
  strategy to support negotiations

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Financial Audits determine (by examining
finances in a single year)

• Whether your managers can be indicted for fraud
• Whether your managers could convince a bankruptcy
  judge that your organization can legally declare
  bankruptcy

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Organizational Audits determine (by examining
multiple data points, perhaps over a number of
years or even a number of institutions

• How your managers are performing
• How the organization could become more efficient
• What next years performance is likely to be
• What might become an additional future source of
  income

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At its essence,finance is simple

• If you expend a resource, you expect that
  expenditure will eventually pay you more than the
  value that resource cost you
• If you have more resources at your disposal, you
  should get at least proportionately equal returns
  as when you had few resources
• If your peers generate identifiable returns among
  a broad spectrum of activities, your organization
  should anticipate similar returns among the
  spectrum of activities tracked

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Three simple financial analysis tools

• Trend-line analysis
• Measure of cost-effectiveness
• Deviation analysis

The Keys to Each? Multiple Data Points Data
Overlays e.g., community wealth to development
income growth in marketing expenses vs. ticket
sales other markets government support vs.
yours
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Trend Line Analysis

• Answers questions like
• We cant develop next years budget because we
  dont know what next years revenue will be.

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Trend Line Analysis

• Definition
• A trend-line analysis assumes your organizations
  performance next year will roughly mirror this
  years. The accuracy of that prediction will
  increase for each additional data point we can
  include in reaching our conclusions

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Trend Line Process

• Determine increase or decrease in budget line
  item from previous year
• Repeat process for several years
  (I usually do seven years
• Sum changes, then average those changes to get
  sum of the mean
• Multiply most recent budget number by sum of the
  mean, then add to previous years budget number

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Trend Line Process
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Trend Line Analysisto thwart negotiation strategy
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Cost-effectiveness Measures

• Are your marketing development personnel,
  activities or expenditures achieving their
  self-defined goals?