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The Professional Infrastructure of the Performing and Visual Arts PERF-670 | Fall 2015 Week 5 | October 5, 2015 E. Andrew Taylor [email protected] cc Flickr GeneralMills Jonathan Borofsky's "Man With Briefcase" (1987) Negotiation Blues revisited Elements of the Deal Performance date Guaranteed fee (if any) to the artist Box oce percentage to artist (if any) [percentage of NAGBOR*] Percentage of merchandise sales retained by the presenter (the “House”) Other agreements or adjustments negotiated along the way *NAGBOR: Net Adjusted Gross Box Oce Revenue

The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

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Page 1: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

The Professional Infrastructure of the Performing and Visual ArtsPERF-670 | Fall 2015Week 5 | October 5, 2015

E. Andrew [email protected]

ccFlickrGeneralMillsJonathanBorofsky's"ManWithBriefcase"(1987)

Negotiation Bluesrevisited

Elements of the Deal• Performance date• Guaranteed fee (if any) to the artist• Box office percentage to artist (if any)[percentage of NAGBOR*]

• Percentage of merchandise sales retained by the presenter (the “House”)

• Other agreements or adjustments negotiated along the way

*NAGBOR: Net Adjusted Gross Box Office Revenue

Page 2: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

110

130

150

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190

210

230

250

270

110 130 150 170 190 210 230 250 270

Pat Patterson (agent) Negotiating Points

Terr

y Riz

zo (p

resen

ter)

Neg

otia

ting P

oint

s

Outcomes

425

110

130

150

170

190

210

230

250

270

110 130 150 170 190 210 230 250 270

Pat Patterson (agent) Negotiating Points

Terr

y Riz

zo (p

resen

ter)

Neg

otia

ting P

oint

s

All Possible Outcomes

Zoneof PossibleAgreement (ZoPA)

Best Alternative

to a NegotiatedAgreement(BATNA)

}

What makes a successful negotiation?

Page 3: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

1. Separate the people from the problem.

clarifyperceptions

acknowledgeemotions

focuscommunications

Listening means more than just waiting to speak.

2. Focus on interests

rather than positions.

“Your position is something you have decided upon.Your interests are what caused you to so decide.”

Fisher and Ury, Getting to Yes

cc flickr johnny goldstein

Page 4: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

3. Generate a variety of options

before settling on an agreement.

grow the pie before cutting it

“I cut,you choose.”

4. Insist the agreement be based

on objective criteria.

if you can’t agree on objective criteria,agree on an objective procedure

Preparing to Negotiate• Define your own underlying interests.• Rank those interests, most to least important to you.• Consider your counterpart’s interests, and their

relative rank.• Define your BATNA (be specific)• Consider your counterpart’s BATNA.• Consider how you can create value before you divide it.• Consider how your agreement will be enforced.

Page 5: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

imbalance of power or principles

BATNA“negotiation jujitsu”

mediation / middle-person

Conflict Continuum

ArtificialHarmony

Mean-SpiritedPersonal Attacks

Constructive Destructive

“IdealConflictPoint”

The Professional Infrastructure of the Performing and Visual ArtsPERF-670 | Fall 2015Week 5 | October 5, 2015

E. Andrew [email protected]

ccFlickrGeneralMillsJonathanBorofsky's"ManWithBriefcase"(1987)

Organizational

^

Page 6: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

Visual Arts

artmuseums

artsdiscourse

artsmarket

Visual Art Objects

Useful and reproducible (decorative arts)

Useful and unique (crafts)

Useless and unique (fine art)

Performing Arts

Nonprofit Commercial Volunteer

Artists Audiences

ArtsOrganizations Funders

Page 7: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

Performing Arts

Nonprofit Commercial Volunteer

before 1950: very few nonprofit arts organizations

today: ~100,000 registered 501(c)3

arts organizations*

*which leaves out many nonprofit arts initiatives

So, what the heck happened around 1950?

Page 8: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

VALUECOST

Whowould)indvalueinwhatyoudo?

Whatkindsofvaluemightthey)ind?

Whereandhowwilltheyexperiencethatvalue?

Whereandhowwilltheydiscoveryou?

Howmuchwilltheyorcantheypayforwhatyoudo?

Whatpeopledoyouneed?

Whywouldtheyjoinyou?

Howwillyoualigntheirworktothegoal?

Whatthingsorservicesdoyouneed?

Howwillyougetaccesstothose thingsorservicesforyouruse?

CostAlternatives

Volunteerlabor

Discountsandsubsidies

“Fiscalprivilege”

Deferredinvestment

Other“Customers”

IndividualDonors

Foundations

Corporations

Governments

Whatdoyouwanttodo?

Howwillyoudeliver thevalueofwhatyoudo?

Howwillyoucaptureresources?

Whatdoesitlooklike whenyoudoitwell?

Whatpeople,things,orservices doyouneedtodoit?

E. Andrew Taylor | American University | Survey of Arts Management | 2015

“We shape our buildings, and afterwards

our buildings shape us.”

Winston Churchill

Page 9: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

“We shape our contracts, and afterwards

our contracts shape us.”

“We shape our organizations, and afterwards

our organizations shape us.”

{a short detour into} Systems

Page 10: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

“A system is an interconnected set of

elements that is coherently organized in a way that achieves something.”

Donella Meadows

“A system is an interconnected set of

elements that is coherently organized in a way that achieves something.”

Donella Meadows

System or not?• Can you identify parts (elements)?• Do the parts affect each other?• Do the parts together produce an effect

that is greater than their sum?• Does the effect, the behavior over time,

persist in a variety of circumstances?

Page 11: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

System vs. Heap?• Can you add or take away without

significant impact?• Add or remove rice from a pile?• Add or remove from a cow?

SOURCE: Flickr user scjody SOURCE: Flickr user Anna Briggs

VALUECOST

Whowould)indvalueinwhatyoudo?

Whatkindsofvaluemightthey)ind?

Whereandhowwilltheyexperiencethatvalue?

Whereandhowwilltheydiscoveryou?

Howmuchwilltheyorcantheypayforwhatyoudo?

Whatpeopledoyouneed?

Whywouldtheyjoinyou?

Howwillyoualigntheirworktothegoal?

Whatthingsorservicesdoyouneed?

Howwillyougetaccesstothose thingsorservicesforyouruse?

CostAlternatives

Volunteerlabor

Discountsandsubsidies

“Fiscalprivilege”

Deferredinvestment

Other“Customers”

IndividualDonors

Foundations

Corporations

Governments

Whatdoyouwanttodo?

Howwillyoudeliver thevalueofwhatyoudo?

Howwillyoucaptureresources?

Whatdoesitlooklike whenyoudoitwell?

Whatpeople,things,orservices doyouneedtodoit?

E. Andrew Taylor | American University | Survey of Arts Management | 2015

System or not?• Can you identify parts (elements)?• Do the parts affect each other?• Do the parts together produce an effect

that is greater than their sum?• Does the effect, the behavior over time,

persist in a variety of circumstances?

Page 12: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

Three Rules of Flocking

• COHESION: Move toward birds near you. • ALIGNMENT: Turn to match their direction.• SEPARATION: But don’t run into them.

Software: NetLogo

Page 13: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

The Professional Infrastructure of the Performing and Visual ArtsPERF-670 | Fall 2015Week 5 | October 5, 2015

E. Andrew [email protected]

ccFlickrGeneralMillsJonathanBorofsky's"ManWithBriefcase"(1987)

Organizational

^

Systems of

^

Charles Leadbeater “The era of open innovation”

“open” vs. “closed” organizations

Page 14: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

“special people, special places”

the two camps

the “intelligent closed” organizations

Page 15: The Professional Infrastructure of the Performing and ......power or principles BATNA “negotiation jujitsu” mediation / middle-person Conflict Continuum Artificial Harmony Mean-Spirited

“A system is an interconnected set of

elements that is coherently organized in a way that achieves something.”

Donella Meadows