I planned ArtBiz as a twelve-part series, this topic the fourth installment. However, as I begin this chapter, I realize there are two related but very different and equally important issues here. So I'll split this topic to create 13 total. By coincidence, 13 is my personal lucky number (lucky numbers have to be special, besides, everyone else picked 7!!).

I shouldn't be surprised that the process of creating this ArtBiz series runs close parallels to its subject matter. Often (too often?) we're faced with more decisions than we have time to deal with. Time, our greatest asset, never seems to buffer us in excess. But if we recognize the potential for gaining a step (or two) on the time we have by developing partners to assume some of the responsibility, then there might just be a moment or two left in the day to do what directors do best -- dream, create and dream!

That being said, I'm sure you're wondering how all this remotely relates to the topic, even in the broadest of ways?  Well, read on Dear Horatio, all will soon be as clear as the dream that woke within you when you chose this career path as the leader of an Arts Organization.

The choices we have face often generate what I refer to as indecisive inertia, which can plague company leaders when they discover they are literally at a point of no return in developing their company. To this point, they have invested hundreds of hours formulating plans, evaluating community needs and confirming the practicality of and support for their chosen company ideologies. Now, a turning point is at hand. The organization had centered its growth and purpose around (and behind) one or two individuals who sparked the creative genius of those they banded together. Focus must be redirected towards melding the leaders' artistic excellence with the business acumen of an elected body that by definition will assume the responsibility for managing the company.

The fear is that they have to give up some part of the responsibility for and control of the company to 'outsiders.' But to grow any further a Board of Directors must be chosen and empowered. This can be a founder's worst nightmare. It is a very frustrating and anxious time for new arts organizations.

Moving forward could mean loosing control of the company they have, quite literally, birthed. The obvious analogy to a mother's angst once she realizes she cannot forever assume complete control and responsibility for her children is a valid way to describe what goes through Artistic Directors at this point, and should not be lightly dismissed.  While few of us would argue against the need for children to grow and to exercise their independence, it is not unusual for leaders to fear the natural process of a company's growth. In either case, preparation for the inevitable is best begun in early, formative months. The greatest successes occur when creators focus on providing a proper and sound foundation that insulates, protects and provides for the child's needs at the point of maturity.

Similarly, the preparation of an organization for maturity requires careful thought, planning and focus but again, as with the child-to-adult scenario, it is a natural course. This development curve, carefully planned, frees Artistic Directors from the more mundane, administrative tasks that may keep a company alive but do little to appease an artist's drive to create. I suggest that you respect all that it implies but do not fear it, embrace it! 

In the USA, an organization must file an executed series of documents, commonly referred to as Articles of Incorporation, with the appropriate State agency, usually: the Secretary of State's office. These, and the company's By-Laws they contain, begin the documented process of establishing a corporation licensed to conduct business within the State. Most all locales (in the USA) operate similarly, but you need to verify your specific requirements with your state or regional government offices. I offer my apologies to readers outside the US, I admit to possessing a profound ignorance of specific international ordinances/requirements, but this should still provide a solid jump-off point for most of you.

The Articles will define the structure of the Board of Directors you choose to guide and assist you. We have already covered the fact that the Board is obligated to assume, in varying degrees, the responsibility for the development and management of the organization and all it's assets. The manner in which the Board addresses its responsibilities is within your provenance to clearly and irrevocably establish in the Articles and By-Laws you submit. You have this one opportunity to select either an Advisory Board or a Governing Board (a.k.a. Managing Board) of Directors. And, yes, there is a world of difference between the two options:

• Advisory Board: persons, elected/appointed for a specific duration, who in their capacity of advisors, meet regularly for review of the organization's successes, funding, challenges, and growth, stability and/or directions. An Advisory board is teamed with an Executive Board (officers), the governing body. The executive board often consists, at least initially, of family – biological or metaphorical. (more on this in the next chapter) and is constructed to partner well with the AD or founder.

• Governing Board: as the label indicates, persons, officers, directors and members, elected/appointed for a specific duration. Together they will govern the company, manage its assets and assume the authority/power, through majority vote, to enforce its decisions.

Just ahead of intermission's curtain, you find yourself at that precipitous point closing Act I. Here attention is riveted to placing the final cog in the Business Plan, by identifying those who will assume responsibility for the company, to what level they are empowered and how they will execute their obligations. The ramifications of this decision must be carefully considered.

This is not a time for haste.  It is a time when the personal instincts, that may have served so well up to now, must jete to all time highs. You are about to decide your future and how your organization will be managed/governed. Ultimately you are determining how you choose to be held accountable to the community you serve. Ah, I thought that might get your attention! Plan carefully; the wrong choice may someday yield:

• Challenges to your decisions regarding artistic expression/development of the company
• Power struggles (which you may loose) within the very organization you founded
• Your replacement, or worse, the dissolution of the company

As I illustrated at the start of this chapter, my focus is about the choices that you come face-to-face with in creating your organization. Act with resolve and fortitude. You need to revisit your original goals for the organization, and select how they will be best served by the manner and system in which you choose to manage the company.

Perhaps you will select a Governing Board, populated with the right persons (next chapter) and perhaps you will be right. If that is your choice, the odds for long term success are against you. I prefer to approach Arts as a Business from a positive viewpoint, but I have witnessed too many disasters, AD's fired, founding members ousted, long established organizations dissolved -- folded away so quickly you'd wonder if they really did once exist.

An element of trust is crucial in almost every part of our lives, but there is no room for blind faith here. This is business. You are formulating a plan for what you hope to be (at least in part) your livelihood.  If for no other reason than the preservation of the artistic merit that you bring to the table, you owe it to yourselves, your supporters and your community to install sufficient safeguards that will ensure your company will continue to operate and contribute to the dream.

As the Board of Directors are responsible to support and manage the organization, reality dictates that your job grows to include managing the Board. Your Board can and should be an asset to you, following and supporting your artistic lead.  In business, this can be best achieved if you truly are partners -- but with you, as the source of the artistic force, at center.

I do not believe that all Governing Boards are inherently evil entities, something akin to an AD-killer. But people are individuals with idiosyncratic goals, egos and agendas that sometimes are subject to complete and irrevocable change.  When this happens to members of a Board, the results are seldom visually stimulating.  My suggestions:

• always opt for an Advisory Board
• pay attention to the needs of your Board members
• involve the membership, make them feel welcomed, and useful
• learn the fine points of Board Room politics -- read The Art of War, if necessary
• embrace the essence of charismatic diplomacy; it's far different from what goes on at class or during rehearsals

If you've a Governing Board in place, learn the intricacies of diplomacy, for politics and compromise will always occupy the seat next to you at the board table. That is, as long as you retain that seat………..

Next:  Part II Picking Your Partners