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Harvard Case - Deborah Cullinan and Yerba Buena Center for the Arts

"Deborah Cullinan and Yerba Buena Center for the Arts" Harvard business case study is written by Laura Callanan, Jane Wei-Skillern, Amy O'Callaghan. It deals with the challenges in the field of Social Enterprise. The case study is 24 page(s) long and it was first published on : Sep 15, 2014

At Fern Fort University, we recommend that Deborah Cullinan adopt a strategic approach to revitalizing the Yerba Buena Center for the Arts (YBCA) that focuses on social innovation and impact investing. This approach should leverage YBCA's existing strengths in community engagement, artistic excellence, and cultural diversity to create a more sustainable and impactful organization that resonates with a broader audience. This will require a shift towards a hybrid organizational model that combines traditional artistic programming with innovative social enterprise initiatives.

2. Background

The case study follows Deborah Cullinan, the new Executive Director of the Yerba Buena Center for the Arts (YBCA) in San Francisco. YBCA is a non-profit organization dedicated to presenting contemporary art, performance, and film to a diverse audience. However, the organization faces challenges including declining attendance, financial instability, and a disconnect with the local community. Cullinan is tasked with revitalizing YBCA and ensuring its long-term sustainability.

The main protagonists are Deborah Cullinan, the new Executive Director, and the YBCA Board of Directors, who are grappling with the organization's future.

3. Analysis of the Case Study

This case study presents a complex situation requiring a multi-faceted approach. We can analyze it through the lens of Social Entrepreneurship and Strategic Management.

Social Entrepreneurship Framework:

  • Mission & Impact: YBCA's mission to engage diverse communities through art aligns with the core values of social entrepreneurship. However, the organization needs to better define and measure its social impact.
  • Hybrid Model: YBCA can explore hybrid models that combine artistic programming with social enterprise initiatives. This could include:
    • Social Impact Programs: Developing programs that address social issues like poverty, education, or environmental sustainability through art.
    • Impact Investing: Partnering with investors seeking social and financial returns by investing in projects that align with YBCA's mission.
    • Social Enterprise Ventures: Launching social enterprises that generate revenue while addressing social needs, such as a community art center offering workshops and job training.
  • Stakeholder Engagement: YBCA needs to engage a broader range of stakeholders, including local communities, artists, funders, and businesses. This can be achieved through participatory decision-making, community-based programming, and collaborative partnerships.

Strategic Management Framework:

  • SWOT Analysis: YBCA possesses strengths like its location, brand recognition, and artistic expertise. However, it faces weaknesses like declining attendance, financial instability, and a lack of clear strategic direction. Opportunities lie in leveraging San Francisco's vibrant arts scene and growing interest in social impact. Threats include competition from other cultural institutions and funding challenges.
  • Competitive Advantage: YBCA can differentiate itself by focusing on social innovation and community engagement. This requires a shift from a purely artistic focus to a more comprehensive approach that addresses social issues and builds stronger community connections.
  • Growth Strategy: YBCA can pursue a dual-pronged growth strategy that focuses on both expanding its artistic programming and developing social enterprise initiatives. This will require careful resource allocation and a clear strategic plan.

4. Recommendations

  1. Develop a Social Impact Strategy: YBCA should develop a clear and measurable social impact strategy that aligns with its mission and addresses critical social issues in the San Francisco Bay Area. This strategy should be communicated to all stakeholders and used to guide program development and funding decisions.

  2. Embrace a Hybrid Organizational Model: YBCA should adopt a hybrid organizational model that incorporates social enterprise initiatives alongside its traditional artistic programming. This could include:

    • Launching a Social Enterprise Incubator: YBCA can create an incubator to support the development of social enterprises that leverage art and creativity to address social needs.
    • Developing Impact Investment Programs: YBCA can partner with impact investors to fund projects that align with its social impact goals.
    • Creating Community-Based Art Programs: YBCA can develop programs that engage local communities in artistic activities and address social issues through art.
  3. Strengthen Stakeholder Engagement: YBCA should prioritize stakeholder engagement by:

    • Building Partnerships: Establishing partnerships with local communities, businesses, government agencies, and other non-profit organizations.
    • Creating Participatory Programs: Developing programs that involve community members in the creative process and decision-making.
    • Utilizing Technology: Leveraging technology to enhance communication and engagement with stakeholders.
  4. Develop a Sustainable Funding Model: YBCA should diversify its funding sources by:

    • Exploring Impact Investing: Seeking out impact investors who are interested in supporting organizations that generate both social and financial returns.
    • Securing Grants: Applying for grants from foundations and government agencies that support arts and social impact initiatives.
    • Developing Corporate Partnerships: Partnering with businesses that are interested in supporting community engagement and social responsibility.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies & Mission: The recommendations align with YBCA's core competencies in art and community engagement, while also expanding its mission to address social issues through creative solutions.
  • External Customers & Internal Clients: The recommendations cater to the needs of YBCA's diverse audiences, including artists, community members, funders, and potential partners.
  • Competitors: The recommendations position YBCA as a leader in social innovation and community engagement, differentiating it from other cultural institutions.
  • Attractiveness: The recommendations are attractive to potential investors and funders who are seeking to support organizations that generate both social and financial returns.
  • Assumptions: The recommendations assume that YBCA has the capacity and commitment to implement these changes, and that there is a sufficient market for social enterprise initiatives in the San Francisco Bay Area.

6. Conclusion

By embracing a social innovation approach and adopting a hybrid organizational model, YBCA can revitalize its operations, strengthen its community connections, and achieve long-term sustainability. This strategy will require a commitment to change management, stakeholder engagement, and a willingness to explore new and innovative business models.

7. Discussion

Other alternatives include:

  • Staying the Course: YBCA could continue its current operations, hoping to attract more funding and increase attendance through traditional marketing efforts. However, this approach is unlikely to address the organization's fundamental challenges.
  • Focusing Solely on Social Enterprise: YBCA could abandon its artistic programming and focus entirely on social enterprise initiatives. However, this would alienate its core audience and potentially weaken its brand identity.

The recommendations involve risks, such as:

  • Resistance to Change: Some stakeholders may resist the proposed changes, particularly those who are comfortable with the status quo.
  • Financial Uncertainty: The success of social enterprise initiatives is not guaranteed, and YBCA may need to invest significant resources to develop and launch these ventures.
  • Competition: Other organizations may also be pursuing social innovation strategies, increasing competition for funding and resources.

8. Next Steps

  1. Form a Task Force: YBCA should form a task force to develop a detailed implementation plan for the proposed recommendations.
  2. Conduct Stakeholder Engagement: The task force should engage with key stakeholders to gather feedback and build consensus.
  3. Develop a Pilot Program: YBCA should launch a pilot social enterprise initiative to test the viability of this approach.
  4. Secure Funding: YBCA should seek out funding sources that support social innovation and impact investing.
  5. Monitor and Evaluate: YBCA should regularly monitor the progress of its social impact initiatives and make adjustments as needed.

By taking these steps, YBCA can embark on a transformative journey that will position it as a leader in social innovation and community engagement, ensuring its long-term sustainability and impact.

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Case Description

The case study describes the work of Deborah Cullinan during her tenure as executive director of Intersection for the Arts and in her new role as executive director of Yerba Buena Center for the Arts (YBCA). The case begins as Cullinan is conducting a strategic refresh of YBCA, and deciding how to navigate an array of opportunities and challenges. Some of the challenges include staff fatigue resulting from a constant push for innovation under her predecessor; skepticism that the focus on the community will diminish artistic excellence; questions about Cullinan's ability to manage a large institution; changes to the Yerba Buena Gardens complex that may affect YBCA's tenancy and 14 percent of its revenue; a fraught environment in which artists and community members are being priced out of San Francisco by the influx of tech companies and their highly-paid workers, potentially altering the character of the city forever.

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