Universitat Internacional de Catalunya - BarcelonaTools for Managing Culture
Main language of instruction: Catalan
Other languages of instruction: Spanish
In the 21st century it is impossible to think of Culture and Management as two separate spheres.
As cultural managers, we are mostly managing “cultural products” in an open market, open to an unlimited set of audiences, consumers and stakeholders. In addition to appreciating the spiritual and magical power of the Mona Lisa smile, we need to understand the dynamics that affect the price of this artwork and other such “products” in the market.
As cultural managers, we need to understand the language of the market for artistic and cultural products (goods and services), and a good point to start is to get accustomed to the most relevant language that the market understands:
Assets and liabilities, revenues and expenses, balance sheets and cash flows, present and future values, investment decisions and opportunity costs, debt management and liquidity ratios, budgeting and forecasts…these will be some of your tools and companions along the road to your position as cultural manager.
A passion for art and culture, and a desire to understand how they can be managed in a professional context.
Some financial background can help, and the same applies to art and cultural studies. However, the course is designed for students from all backgrounds.
The ability to analyze the business environments and the ability to apply the adequate cultural management tools in managing cultural products and enterprises.
Block I: Organizational (General Context) Tools
1- Introduction: Management as an “Art”, Culture as a “Product”
The principles of management and the peculiarities of managing culture
2- Forms of Business and Non-Profit Organizations
Proprietorships, Partnerships, Corporations, etc.
3- Analysis of the Environment
External and Internal (Micro and Macro) Environments
4- Human Resources
Personnel, management and evaluation
Block II: Financial Analysis Tools
5- The Basic Financial Statements (part 1)
The Balance Sheet and the Income Statement
6- The Basic Financial Statements (part 2)
The Cash Flow & Changes in Equity
7- Financial Ratio Analysis
Comparative trend and peer analyses
8- Considerations, Uses and Limitations of Financial Analysis
Understanding the story behind the figures
9- Applying the financial analysis tools to cultural entities
Review and case-studies from the cultural world
Group Presentation
The British Museum vs. the Metropolitan Museum of Art
Block III: Investment Evaluation Tools
10- The Time Value of Money
Interest Rates, Present and Future Values
11- Investing in Culture
Opportunity Costs, Cost-Benefit Analysis and Internal Rate of Return
Block IV: Forecasting (Budgeting) Tools
12- Analysis of Cost Components
Variable, Semi-variable and Fixed Costs and their behaviour
13- Forecasting Considerations
Factors that affect forecasts and shape future prospects
14- Budgets – Types and Formulation
Pro-forma statements, budgeting and budget adjustment
15- Application of Investing and Forecasting Tools to Cultural Entities
Review and case-studies from the cultural world
Chapter Sessions
Course Material:
Slides for each session are uploaded to the Intranet in advance (in PDF format).
Two case-studies are printed and handed to the students each session.
Course Methodology:
The course comprises 18 lectures and over 30 case studies and practical cases.
Apart from the lectures and the case-studies, relevant activities are realized.
Attendance & Class Participation 20%
Group Presentation 30%
Final Exam (Written) 50%
Making Money, Making Meaning: Directions for the Arts and Cultural Industries in the Creative Age. Lisa Andersen and Kate Oakley. Cambridge Scholars Publishing; new edition (January 12, 2008)
The Economics of Arts and Culture. James Heilbrun and Charles M. Gray. Cambridge University Press; 2 edition (April 23, 2001)
Management and the Arts. William J Byrnes. Focal Press; 4 edition (October 13, 2008)
Managing a Non-Profit Organization in the Twenty-First Century. Thomas Wolf. Fireside / Simon & Schuster; Revised & Updated edition (June 15, 1999)
Art Management: Entrepreneurial Style. Giep Hagoort. Eburon Publishers, Delft; 1 edition (February 15, 2004)
Principles of Accounting. Needles / Powers / Crosson. South-Western College Pub; 10 edition (January 12, 2007)
Essentials of Managerial Finance. Weston / Besley / Brigham. South-Western College Pub; 14 edition (May 24, 2007)
Creative Industries: Contracts between Art and Commerce. Richard E. Caves. Harvard University Press (June 30, 2000)
Management and Creativity: From Creative Industries to Creative Management. Chris Bilton. Wiley-Blackwell; 1 edition (September 18, 2006)
Managing Creative People: Lessons in Leadership for the Ideas Economy. Gordon Torr. Wiley (June 3, 2008)
The Cultural Industries. David Hesmondhalgh. Sage Publications Ltd; 2nd edition (April 13, 2007)
Entertainment Industry Economics: A Guide for Financial Analysis. Vogel Harold L. Cambridge University Press; 7 edition (April 23, 2007)
Managing Cultural Assets from a Business Perspective. Laura Price and Abby Smith. Commission on Preservation & (July 2000)