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Harvard Case - Tradition and Transformation at the Spanish Riding School of Vienna

"Tradition and Transformation at the Spanish Riding School of Vienna" Harvard business case study is written by James Kennelly, Liza Nagode. It deals with the challenges in the field of Organizational Behavior. The case study is 23 page(s) long and it was first published on : Jun 1, 2016

At Fern Fort University, we recommend a strategic approach to transforming the Spanish Riding School of Vienna, balancing the preservation of its rich tradition with the need for sustainable growth and relevance in the 21st century. This strategy will focus on enhancing the School's financial stability, expanding its audience through innovative programming and marketing, and fostering a culture of excellence and inclusivity within the organization.

2. Background

The Spanish Riding School of Vienna, a UNESCO World Heritage site, stands as a testament to centuries of equestrian tradition. Its renowned Lipizzaner horses and the classical dressage performances are a global attraction. However, the School faces challenges: declining ticket sales, limited funding, and a perceived lack of relevance to a modern audience. The case study centers around the leadership of Elisabeth G'rtler, the Director General, who must navigate the complexities of preserving tradition while ensuring the School's long-term viability.

3. Analysis of the Case Study

This case study highlights the tension between tradition and transformation, a common dilemma faced by many organizations. Using a framework that combines organizational culture, leadership styles, change management, and marketing strategy, we can analyze the key issues:

Organizational Culture: The Spanish Riding School boasts a deeply ingrained culture rooted in tradition, discipline, and a strong sense of heritage. While this culture has been a source of strength, it has also created resistance to change and innovation.

Leadership Styles: Elisabeth G'rtler embodies a transformational leadership style, recognizing the need for change while respecting the School's heritage. However, her leadership style must be balanced with a participative approach to engage stakeholders, particularly the riders and trainers, in the change process.

Change Management: The School's resistance to change stems from a fear of losing its identity and compromising its artistic integrity. A phased implementation approach to change, with clear communication and stakeholder engagement, is crucial.

Marketing Strategy: The School's marketing strategy has focused primarily on attracting a niche audience of equestrian enthusiasts. To broaden its appeal, the School must adopt a multi-channel marketing approach, leveraging digital platforms, social media, and innovative content creation to reach a wider audience.

4. Recommendations

The Spanish Riding School should implement the following recommendations:

1. Financial Sustainability:

  • Diversify Revenue Streams: Explore new revenue streams beyond ticket sales, such as corporate sponsorships, educational programs, merchandise sales, and online content subscriptions.
  • Cost Optimization: Conduct a thorough cost analysis to identify areas for efficiency improvements, including streamlining operations, optimizing staffing levels, and exploring partnerships for shared resources.
  • Fundraising Initiatives: Develop a comprehensive fundraising strategy, leveraging the School's cultural significance and global appeal to attract philanthropic support.

2. Audience Engagement and Innovation:

  • Expand Programming: Introduce new programs that appeal to broader audiences, such as educational workshops, interactive exhibits, behind-the-scenes tours, and family-friendly events.
  • Modernize Marketing: Utilize digital marketing channels, social media, and content marketing to reach new audiences and build a stronger online presence.
  • Embrace Technology: Incorporate technology into the performance experience, such as virtual reality tours, interactive exhibits, and live streaming events.

3. Fostering a Culture of Excellence and Inclusivity:

  • Talent Development: Implement a comprehensive talent management program that fosters the development of riders and trainers, promoting diversity and inclusivity within the School.
  • Employee Engagement: Create a culture of open communication, collaboration, and recognition, empowering employees to contribute to the School's success.
  • Diversity and Inclusion: Actively promote diversity and inclusion within the School, encouraging participation from individuals of all backgrounds and abilities.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Mission: The recommendations align with the School's core competencies in equestrian artistry and its mission to preserve and promote classical dressage.
  • External Customers and Internal Clients: The recommendations cater to the needs of both existing and potential audiences, while also addressing the concerns of internal stakeholders, including riders, trainers, and staff.
  • Competitors: The recommendations aim to differentiate the School from competitors by offering a unique and engaging experience that combines tradition with innovation.
  • Attractiveness: The recommendations are expected to increase the School's financial viability, enhance its brand image, and broaden its appeal to a wider audience.

6. Conclusion

By embracing a strategic approach that balances tradition with innovation, the Spanish Riding School of Vienna can secure its future while remaining true to its heritage. The recommendations outlined above will enable the School to adapt to the changing landscape of the arts and culture sector, ensuring its continued relevance and success for generations to come.

7. Discussion

Alternatives not selected:

  • Maintaining the status quo: This option was not considered viable due to the School's declining financial situation and the need to attract a wider audience.
  • Complete modernization: This option was deemed too radical and potentially damaging to the School's cultural identity.

Risks and Key Assumptions:

  • Resistance to change: The School's deeply ingrained culture may present challenges to implementing change.
  • Financial sustainability: The success of the proposed revenue diversification and cost optimization strategies is dependent on market conditions and the School's ability to attract new sources of funding.
  • Audience engagement: The effectiveness of the marketing and programming initiatives relies on the School's ability to reach and engage new audiences.

8. Next Steps

  • Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsibilities for each recommendation.
  • Establish a change management team: This team will be responsible for communicating the change process, addressing concerns, and ensuring stakeholder engagement.
  • Pilot test new programs and initiatives: This will allow the School to refine its offerings and gather feedback before full-scale implementation.
  • Monitor progress and adjust strategies: Regularly evaluate the effectiveness of the implemented strategies and make necessary adjustments to ensure the School's continued success.

By taking these steps, the Spanish Riding School of Vienna can embark on a journey of transformation that will secure its future while preserving its rich legacy.

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Case Description

The Spanish Riding School (SRS) was an icon of Austrian national identity, the oldest riding school in the world and the primary exponent of the art of classical dressage (a "ballet" with horses). In 2012, 447 years after its founding, the School confronted a serious threat: how to survive its so-called "privatization" by the Austrian government. Elisabeth Gürtler, recently reappointed to a five-year term as Managing Director needed to address three interrelated challenges: how to counter the critics of the SRS and its leadership and the avalanche of bad press they had generated, how to consolidate the significant organizational changes she had implemented during her first five years as Managing Director, and how to generate additional revenue so that the SRS would continue to breakeven financially - and in the long run, achieving financial sustainability for the SRS and preserving both its exalted status as the world's foremost institution of classical dressage and its responsibility to preserve and improve the breed of Lipizzaner horses. Since her appointment (on a 5-year contract) in December, 2007, Gürtler had acted quickly to implement a series of initiatives aimed at reducing costs, increasing revenue, and improving organizational capabilities. While these changes appeared to be successful at staunching the SRS's financial losses, they were not without cost. Internally, a number of experienced riders had strongly resisted the changes and had been subsequently dismissed; externally, critics had initiated a media campaign claiming that the quality of the SRS's performances had declined and been "debased" as a consequence of the changes. As Gürtler looks to her second term as Managing Director, students are asked to evaluate her organizational change efforts, and consider her strategic options going forward.

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