Developed Musical Event in Albert Park - Case Study Example

Table of contents List of Figures 3 Executive Summary 4 1. Introduction 5 2. The festival in Albert park 2.1 Project overview 7 2.2 Definition of deliverables 7 2.3 Definition of the work packages 8 2.4 Identification of participants – distribution of roles 9 2.5 Resource availability 10 2.6 Cost management – budgeting 11 2.7 Time management 11 2.8 Key performance indicators 12 2.9 Critical success factors 12 3. Conclusions 13 4. Recommendations 15 Bibliography/ References List 17 List of Figures Figure 1 – Work breakdown structure for music festival in Albert park 8 Figure 2 - Attendance of cultural events in Australia (source: Australian Bureau of Statistics) 13 Figure 3 – Frequency of attendance of cultural events in Australia (source: Australian Bureau of Statistics) 14 Figure 4 - Concerts and other live performances (classical) 1994-'95 15 Executive Summary The development of musical events internationally cannot be doubted. In Australia the attendance of musical concerts has been extensively promoted the last few years and the response of the public has been immediate. In accordance with a series of statistics published by the Australian Bureau of Statistics (2008) ‘Of the performing arts activities, Popular music concerts had the highest attendance rate, with 25% of Australians aged 15 years or more attending at least one concert in the 12-month period’. The above data were revealed in a relevant survey that took place across the country for the period 2005-2006. This report focuses on the presentation of all stages related with the organization of a musical event in Albert park (Australia). In order for the promoters of this project to have a clear view on the processes, the cost, the time frame and the resources required for the realization of this project it is required that a thorough analysis of all parts of this project is presented to them. In this context, specific elements (parts) of this project are particularly analyzed taking into account their importance for the development and the success of the project. Apart from that, general issues related with the music industry are also presented in order to explain the sequence of issues throughout the paper. Generally, it is suggested that the specific musical event is expected to have a significant success not only because of the region and the time chosen for its realization but mostly because no other similar event has been organized in the specific region for quite a long. On the other hand, specific efforts (as analyzed in the report below) have been made in order to keep the price of the tickets at low levels offering the chance to people of all financial status to participate in the event. Appropriate solutions are also offered for the effective handling of specific problems (like the quality of the programme, the monitoring of the event and the resolution of potential disputes throughout the particular event). 1. Introduction One of the most challenging tasks for the people that organize these events is to arrange the appropriate distribution of resources available (for the realization of the relevant project) referring to supply chain management for all the stages of a particular musical event. Focusing on the necessity of supply chain management in modern business activities, Krishnan et al. (2001, 259) noticed that ‘supply chain management has become an important part of strategic planning in both large and small businesses since the 1990s as firms increasingly choose outsourcing as an externally-driven strategic growth path’. From a different point of view, Agrawal et al. (2001, 23) mentioned that ‘companies should decide which elements of the chain could produce the greatest efficiencies and then choose the exchange most likely to promote them’. Both the above studies refer to the case of supply chain management for business activities. In this context, similar assumptions could be adopted for the organization of a musical event in a specific region (referring to music industry as part of the economic life of a country). On the other hand, any error of managers in the particular industry can be regarded as having equal consequences with those expected in business (when the targets set by the managers are not achieved). For this reason, it is supported by Rand (1999, 97) that ‘businesses fail because management does not have effective control of the business as management is too far removed from revenue-producing processes’. For this reason it is necessary that people involved in the development of any project (especially when this one belongs to the commerce sector) have to follow specific rules in order to protect the customers (consumers) from potential damages. In this case, leaders are being called in order to retrieve the appropriate solutions for any problem appeared during the realization of a project (business initiative). In this context it is noticed by Neely (2002, 295) that ‘the key benefit in the process of deciding what to measure appears to lie in the fact that the process forces management teams to be explicit about their priorities’. Towards the same direction, Baker et al. (2005, 44) support that leaders in modern organizations (or those involved in the realization of specific business projects) should pay attention to the following issues (referring to the achievement of a specific business target): ‘1. Layout analysis; 2. Routing analysis; 3. Bottleneck identification; 4. Bottleneck management and 5. Work-in-process (WIP) management’. On the other hand, it is necessary when designing and applying a specific business plan to take into account the characteristics and the prospects of the industry involved. Referring especially to the music industry Laing (1996, online article) notices that the retrieval of data related with the music industry is a challenging task; only specific sources, like the following ones, can be used in this case: ‘a) government statistics on the arts and on the employment of musicians; b) market research on concert audiences; c0 membership and other data from musicians' and organizations… and so on’ (Laing, 1996, online article). Generally, it would be stated that the design and the implementation of a specific business plan (in this case a musical event) should follow specific rules in order to be effective. More specifically, the following issues are expected to have the highest importance for the success of the whole project (musical event in Albert park): a) use of resources available, b) cost and time management for the completion of the project, c) provisions for handling potential negative outcomes and d) monitoring of the event. All these issues (followed by others, also important for the success of the project) are presented below trying to highlight the reasons for the choices made (in all parts of this project) and the gains/ benefits expected from the specific event both in the short and the long term. 2. The festival in Albert park 2.1 Project overview The specific project refers to the development of a musical event in the area of Albert park (Melbourne). The participation of the public is expected to be high (the targeted audience has been estimated to 5,000 people). The duration of the event will be short – only one day – however it will be quite interesting in terms of the participants (bands and singers invited) and the type of the music represented; it will be an event ‘dedicated’ to the pop music of the 80’s. The particular parts of the relevant project are developed below trying to identify the importance of the specific event for all the people living in the community but also for the music industry of the country (significant representatives of this type of music come from Australia). 2.2 Definition of deliverables In accordance with a definition given by Entrepreneur (2008) ‘a deliverable is the product of work done on a project; the finished result of a step of work; deliverables are sometimes described as inputs or outputs; one person's outputs, are the next person's inputs, until the project is complete’. In a similar definition given by the Information Engineering Technology (2008) ‘a deliverable is the smallest discrete component of a project that is individually versioned and controlled’. In the musical event of Albert park, the term ‘deliverables’ refers primarily to the music pieces that are expected to be performed by the singers and the bands that will participate in the musical event. Other activities related with the realization of this project (as described in Figure 1 below) can be also characterized as ‘deliverables’; these deliverables will refer to the work of the other persons that contribute to the completion of the project (supporting the work of artists that participate in the musical event). Figure 1 – Work breakdown structure for music festival in Albert park 2.3 Definition of the work packages It has been supported that ‘a work package is the basic building block of a work breakdown structure; it can be considered as a sub-project; it is composed of one or several tasks’ (Visitask, 2008). For the particular musical event, the following work packages can be identified: a) the identification of the place, the booking of the place for the specific event and the decoration of this place in accordance with the event’s demands, b) the contact with the musicians and the arrangement of all the issues related with the compensation of the musicians, the promotion of the event and the price of the ticket, c) the cost management of the event (as described in the third column of Figure 1), d) contact with supportive services (security, catering and media) and e) contact with medical staff in order to provide their services during the whole event (insurance provisions belong in this category). 2.4 Identification of participants – distribution of roles As it is already highlighted in the preliminary plan of current report, the development of this project is based on the participation of several subcontractors: ‘the security company, the catering company, the paramedics & safety team, the transportation company for the musicians and other aspects of the band, the media, the website developer, the decorating company, and the accounting firm to draft and make estimates on the budget’. In other words, the human resource management of the particular musical event is a quite challenging one demanding the cooperation of all sub-contractors in order for the project to be completed successfully. The identification of the role of the sub-contractors belongs to the project planner who will set the criteria on which the distribution of the roles among the sub-contractors will be based. In this context, the literature applied in the business sector will be of particular importance. Towards this direction, we could refer to the study of Korman et al. (1999, 221) who stated that ‘of critical importance is the nature of fit; organizations need more versatile managers and are finding fewer candidates available with the skills they need. The issue of ‘organizational fit’ stated above should be carefully examined taking into account the cost of any relevant initiative (involvement of a sub-contractor in the project, provision for the existence of the necessary fund for the payment of all sub-contractors). In fact, the cost of human resource management should be a decisive factor when having to proceed on a specific HR management decision. In this context, it is noticed by Walker (1989, 9) that ‘costs of human resource processes and initiatives (investment of money, time, and other resources) are best measured in relation to their outcomes’. However, it would be preferable that the appropriateness of human resources decisions is tested in advance and not afterwards (after the completion of the project) – because of the potential financial losses that could follow such an initiative. 2.5 Resource availability As already noticed above (in sections 2.2 and 2.4) the realization of the particular musical event requires the participation of sub-contractors including musicians, administrative and PR staff, caterers and security guards. In this context, the project planner will have the responsibility for the identification of the appropriate sub-contractors and staff taking into account the general requirements of the project in all their aspects. An issue that should be noticed here is the fact that the project planner has the responsibility to check the availability of all the resources involved in the project (referring not only to the human resources but also to the facilities involved in the project as well as the funding requested for the appropriate development of the plan). The allocation of the resources should take place in advance and their availability should be checked quite before the beginning of the project possibly using relevant contracts in order to ensure the availability of the resources chosen in the day(s) that the musical event will be realized. 2.6 Cost management – budgeting The success of the musical event is based heavily on the availability of the financial resources required for the development of all its parts. In this context, it is necessary that an accurate estimation of the cost involved in the realization of the project is prepared in advance despite the fact that possible alterations in the cost of the particular services (as a result of the continuous inflation) may lead to the differentiation of the prices estimated at a preliminary level. The cost of the specific musical event includes the following sub-costs: a) rent for the place used for the event, b) compensation of the musicians, c) remuneration of staff (including security guards), d) expenses for the media (coverage) and the promotion of the event to the public, e) expenses for insurance purposes. 2.7 Time management The duration of the specific event is just one day. However, many days will be required for the successful development of the project. In this context, it would be expected that the place should be available to the musicians at least two days before; appropriate decorating of the place and installment of the necessary sound machinery would require several hours especially if taking into account the area in which the event will take place. On the other hand, time management should be used in order to achieve the arrival of musicians on time in the day of the event, the presence and the co-operation of the sub-contractors as well as the beginning and the end of the event at a specific time (as suggested by the project planner and arranged with the sub-contractors and the musicians). These two details, the end and the beginning of the project should be appropriately published on time. 2.8 Key performance indicators In order to evaluate the performance of the specific project, we need to set specific elements/ criteria that will operate as indicators towards the above target. The specific issue was examined by Gomez et al. (2002, Ch. 15) who supported that ‘the following ‘stages’ of the firm’s operation management should be examined: inputs (materials, energy, information, management, technology, facilities and labor), transformation (or conversion process) and disposition (marketing and sales)’. All the above criteria could be also used as indicators of the performance of the project taking into account the goals set by the project planner. In fact, the key performance indicators of the project could be summarized as follows: a) the performance of the musicians, b) the time and the cost required for the completion of the project, c) the co-operation of the sub-contractors, d) the profits achieved by the specific musical event and e) the protection of the environment (if appropriate plans have been included in the relevant project or not). 2.9 Critical success factors It is already mentioned above that the performance of the project will be monitored using a series of criteria/ factors that have been named as ‘key performance indicators’. Taking into account these indicators, we could state that the success of the project will be depended on the following factors: a) the cost of the project (in total) – if this will be within the framework set by the beginning or not, b) the performance of the musicians, c) the effectiveness of the supply chain management and the smooth cooperation among the sub-contractors, d) the precise (as possible) application of the time framework set for the whole project (and its sub-parts) and e) the level of the profits of the project. Generally, it could be expected that the specific musical event would be successful if taking into account the response of the public in similar events as it is revealed through the data presented in Figure 2 below. Persons attending selected cultural venues and events(a) - 2005-06 Number of people attending Attendance rate(b) Venue or activity '000 % Art galleries 3 630.7 22.7 Museums 3 611.9 22.6 Zoological parks and aquariums 5 699.8 35.6 Botanic gardens 5 390.9 33.7 Local, state and national libraries 5 454.5 34.1 Popular music concerts 4 035.9 25.2 Classical music concerts 1 508.1 9.4 Theatre performances 2 723.2 17.0 Dance performances 1 625.0 10.2 Musicals and operas 2 613.9 16.3 Other performing arts 2 655.0 16.6 Cinema 10 431.4 65.2 Figure 2 - Attendance of cultural events in Australia (source: Australian Bureau of Statistics) 3. Conclusions It is clear from the issues developed above that the specific musical event has many chances to be successful especially if it is appropriately planned and monitored. The role of the project planner is in this case significant; in fact it can be compared with the role of the leader within modern organizations. In this context, Ashforth (1995, 97) supported that ‘leaders may persuade with logic, but they motivate through emotion; leaders must come to grips with the challenges of emotion, a key driver of productivity, quality and other factors that lead to business success’. Remaining in the business sector, the performance of any business plan is usually evaluated using a series of criteria; regarding this issue it is noticed by Santos et al. (2000, 2) that ‘according to its characteristics, objectives and the resources available (human, physical, financial etc.), each company prioritizes some competitive criteria’. On the other hand, the success of any business initiative is usually depended on the profitability of the relevant initiative either in the short or the long term. For this reason, Robertson et al. (1995, 547) supported that ‘because private sector organizations are driven primarily by market or consumer preferences, organizational effectiveness is more readily measured in terms of efficiency and profitability’. The reference to the above issues regarding business planning and operation is made in order to explain the importance of certain issues for the success of any project within the modern commercial sector. Frequency of attendance at cultural venues and events - 2005-06 FREQUENCY OF ATTENDANCE(a) Once only 2-4 times 5 times or more Total % % % % '000 Art galleries 36.5 46.1 *17.3 100.0 3 630.7 Museums 50.4 38.9 **10.6 100.0 3 611.9 Zoological parks and aquariums 47.9 43.4 **8.7 100.0 5 699.8 Botanic gardens 37.7 45.1 *17.1 100.0 5 390.9 Local, state and national libraries 4.9 24.1 71.0 100.0 5 454.5 Popular music concerts 34.7 46.8 *18.5 100.0 4 035.9 Classical music concerts 42.1 *42.0 **15.8 100.0 1 508.1 Theatre performances 46.6 41.9 **11.5 100.0 2 723.2 Dance performances 54.4 *37.0 **8.6 100.0 1 625.0 Musicals and operas 54.6 39.0 **6.3 100.0 2 613.9 Other performing arts 63.8 *29.4 **6.9 100.0 2 655.0 Cinema 9.5 36.4 54.1 100.0 10 431.4 Figure 3 – Frequency of attendance of cultural events in Australia (source: Australian Bureau of Statistics) The specific musical event seems to have all necessary characteristics in order to be a successful one; in accordance with the data presented above (Figure 3) a percentage of 46.8% of people that attending musical events use to go to these events at a frequency of 2-4 times annually; the specific event will take place in a region where no other similar event has taken place at least for 3 years; therefore, its success would be regarded as definite. However it is necessary that specific issues are reviewed and take into consideration by the project planner regarding all stages of the project. These issues, as developed above, are expected to help towards the improvement of the performance of the whole project in terms of the benefits resulted both from its planners and the investors involved in the specific initiative. 4. Recommendations As it can be observed in the table presented below (Figure 2) the level of revenues from musical events is high (although the relevant prices present significant differentiations among the particular states). For this reason, the specific musical event, if appropriated planned, it would be expected to be profitable for all parts involved.   Concerts Audiences (in millions) Orchestras Opera / ballets Choirs Revenues (in millions of ECU) Musicians Austria# 5,629 4.3 n/a n/a n/a n/a 4,952* Belgium n/a n/a n/a n/a n/a n/a 1,000 Denmark 100* 0.9* 6 11 1,200 n/a 750 Finland 1,600 2.1 28 21 500 3.0 1,300 France 1,300 1.1 84 15 n/a n/a 2, 800 Germany 19,100 12.2 151 n/a 20,513 370.0 11,216 Greece 34 0.1 3 1 4 1.3 600 Ireland 280 n/a 5 n/a 3 1.8 400 Italy 20,000 4.9 300 300 n/a 54.3 10,000 Netherlands 8,440 4.5 11 40 4,500 n/a 1,500 Portugal 2,107 n/a 12 49 n/a 1.3 500 Spain 4,772 5.6 224 68 1,687 20.0 7,000 Sweden 15,000 n/a n/a n/a n/a n/a 1,400 United Kingdom 2,200 13 130 n/a n/a n/a 3,000 (#) 1993-'94; (*) ballet and opera only Figure 4 - Concerts and other live performances (classical) 1994-'95 (sources: EMO, government statistics, authors societies, in http://www.icce.rug.nl/~soundscapes/DATABASES/MIE/Part1_chapter03.shtml ) In other words, at a first level, the specific musical event would be a profitable investment for all the persons/ firms that will provide the necessary funds for its realization. However, a few issues should be taken into consideration: a) the plan of the project should be followed carefully through all its stages (any change to the initial plan should be carefully reviewed and appropriately verified by the project organizer and the investors involved), b) accurate cost and time management plans should be included in the relevant project, c) the whole effort should be appropriately advertised and d) the development of the plan should be carefully monitored through all its stages trying to keep the cost at low levels. If the above issues are taken into consideration, the success of the specific musical event should be considered as highly expectable. Bibliography/ References List Agrawal, M., Pak, M., (2001). Getting Smart about Supply Chain Management. The McKinsey Quarterly, 22-24 Ashforth B. E. (1995). Emotion in the workplace: A reappraisal. 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Factorial analysis of organizational performance. Administrative Science Quarterly, 12:377-95 Visit Task (2008) online available at http://www.visitask.com/Glossary.asp?criteria=work+package&allwords=0&x=9&y=3 Walker, J.W. (1998). Are We Using the Right Human Resource Measures? Human Resource Planning, 21(2): 7-10 Read More