Management and Structure of The Symphony Orchestra

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Management and Structure of the Symphony Orchestra: A professional

orchestra case-study into the techniques and philosophy applied within the
industry
Thesis · December 2018

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CORSO DI LAUREA MAGISTRALE IN
COMMUNICAZIONE D’IMPRESA
Management and Structure of the Symphony

Orchestra: A professional orchestra case-study
into the techniques and philosophy applied
within the industry.
Tesi di Laurea di: Daniel BERTOLINI

Relatore: Prof: Sergio SPLENDORE
Correlatore: Prof: Luisa LEONINI
1
TABLE OF CONTENTS
ACHNOLOGEMENTS ............................................................................................................................. 3
ABSTRACT............................................................................................................................................ 4
INTRODUCTION .................................................................................................................................... 5
HISTORY OF THE SYMPHONY ORCHESTRA ............................................................................................... 8
RESEARCH QUESTOINS .......................................................................................................................... 8
LITERATURE REVIEW ........................................................................................................................... 10
METHODOLOGY ................................................................................................................................. 25
RESULTS STRUCTURE .......................................................................................................................... 32
PART 1 – INDIVIDUAL REPORTING ....................................................................................................................... 32
PART 2 – KEY ORGANISATIONAL AND FINANCIAL DATA OF THE CASE-STUDY ORCHESTRAS ................................................ 34
RESULTS ............................................................................................................................................ 36
PART 1 – INDIVIDUAL REPORTING ...................................................................................................................... 36
New York Philharmonic ........................................................................................................................... 36
Melbourne Symphony orchestra ............................................................................................................. 42
London Symphony Orchestra .................................................................................................................. 48
Accademia Nazionale di Santa Cecilia .................................................................................................... 53
PART 2 – KEY ORGANISATIONAL AND FINANCIAL DATA OF THE CASE-STUDY ORCHESTRAS ................................................ 59
DISCUSSION ....................................................................................................................................... 65
CONCLUSION ..................................................................................................................................... 75
BIBLIOGRAPHY ................................................................................................................................... 77
Acknowledgements
I dedicate this thesis to my father Joseph Bertolini Ph.D, without whose dedicated and
tireless help and support this would not have been possible.
2
Abstract
The purpose of this thesis was to investigate how professional orchestras can be run most
effectively to meet business and artistic goals. Areas of specific concentration were the
internal delegation of power and responsibilities, managing of the financial responsibilities,
and decisions regarding the choice of music and artistic engagement with the audience.
The means of investigation of these questions was through four orchestra case studies. The
sample of orchestras chosen were organisations that comprised full-time employed
professional musicians, located in different geographic regions that were economically
comparable. The New York Philharmonic (NYP), Melbourne Symphony Orchestra (MSO),
London Symphony Orchestra (LSO), and Accademia Nazionale Santa Cecilia (SC) were
chosen as the organisations for this study.
Research involved analysis of annual reporting, financial documents and historical

documents in order to understand the present-day constitution of the orchestra as well as
its historical development and previous iterations. This information was complemented by
analysis of the artistic choices made by the orchestra in order to meet the business goals in
the areas of artistry and developing its audience.
All orchestras presented diverse systems of organisational management, as well as differing

ideas and concepts for what the orchestra should perform and produce in order to meet the
core goals of increasing popularity and attendance.
The conclusion of this research is that professional orchestras function best in a system
where it is independently managed and not subject to government intervention. A greater
reliance on private philanthropic funding as opposed to government funding is also
preferable. Internal management should be overseen by an empowered CEO/Executive
leader and Artistic director, who are in charge of managing the artistic decisions of the
orchestra, with consultation from the orchestra. Concerts should be diverse in programming
and style, using a mix of standard and non-traditional pieces with the overriding motivation
to build and expand audience demographics through engagement and education.
3
Introduction
Orchestra management like many areas relating to the business elements of the creative
arts, is an area significantly overlooked in academic writing and research. However, it is an
area that requires in-depth investigation in order for greater understanding and the
potential for improvements. There are unique artistic and cultural dynamics that impact on
the make-up and operation of a symphony orchestra. These are typically the responsibility
of the musical director and the artists whose focus is achieving artistic aims. It is no less
important however to understand the economic environment in which the orchestra finds
itself, and the ability to use the best business and communication practices to ensure
audience engagement, and ultimately the sustainability of the orchestra.
This research examined the organisation and management practices of professional

orchestras operating in different parts of the world in order to develop an understanding of
how orchestras can meet the requirements and goals mandated by numerous stakeholders.
Orchestra face the challenge of striving for artistic merit yet are often financially constrained
as they are not-for-profit organisations.
Case studies were made of four orchestra’s operating independently from each other in
different countries and audience markets. Initially the history of the orchestra was
examined to identify cultural, political, social and artistic influences, together with the
adopted and evolved organisational structure, that have led to the current state of the
orchestra. Following this historical analysis, the current situation was critically examined.
The focus was on management structures, sources of funding, music and artistic choices.
A diverse source of information was used. Financial and annual reports published by the
orchestras was used extensively. In addition, direct contact was made with representatives
of the orchestras. The findings in this study were then compared and evaluated with
reference to other reports and research.
The data gathered, allowed a narrative to be established on each orchestra. The historical
development of these orchestras was able to be described. It was possible then to focus on
4
how they function given the hurdles and constraints relating to the orchestra musicians,
internal management, government influence, and meeting, as well as defining, audience
demand.
Analysis of the data in the discussion, allowed the identification of commonalities as well as
divergences in how these orchestras operate. The goal was to develop a theory for an
optimised system of orchestral management with respect to organisation, fund raising,
stakeholder management and audience engagement. It was found that orchestras are
significantly constrained in their ability to execute a management vision. The key constraint
is the nature of the external relationships that orchestras have with the government and
private donors, which they have limited power to influence. Each orchestra was significantly
dependent on external funding. Government oversight and expectations limited that ability
to engage in entrepreneurial activities and to explore means of engaging untapped
audiences or extending the repertoire. Funding seemed to be dictated by the wish to carry
on the historical perception of the orchestra, rather that engage in activities which attempt
to address the current cultural and demographic changes.
It was found the philanthropic practices in each country was an important determinant of
funding that flowed to orchestras.
With respect to internal management, each orchestra varied in terms of where the power
was held. This varied between musician power where there was a cooperative management
structure and essentially the musicians were shareholders in the orchestra, and a traditional
corporate structure, consisting of a privately elected board. This was again dictated by the
orchestra’s historical development and the external funding sources. Both structures are
proven to work as management systems, demonstrated by the countless professional
orchestras that use them to dictate operations and the organisational chain of command,
however both systems have flaws. In a corporate model the musicians in the orchestra are
not involved in artistic decision making, leading to alienation that can cause internal conflict
and leading to a lower level of musical product. In a cooperative system the orchestra
musicians hold majority of power. While this is positive for improving the artistic product, it
can result in administrative duties that require added expertise in areas such as finance and
5
legal deliberation being underserved, hindering an orchestra’s commercial activities. Is
there a less polarizing system that could serve both the artistic and management needs?
This research has shown that orchestras remain revered cultural institutions which continue
to be relevant today. However not being seen as mass entertainment, their financial
integrity is highly dependent on government, philanthropic and corporate sponsorship.
Unfortunately, this considerably constrains the ability of an orchestra to pursue a unique
vision with respect to management structure, fund raising or audience engagement. The
external restraints of finance and bureaucracy which an orchestra encounters, leads to an
attitude that it is better to function within the constraints, as opposed to fighting against
them. In terms of internal management, the key to success is stability, specifically balancing
the relationships between management and players. Players generally have been shown to
have diverging opinions when defining success for an orchestra but the key drivers are novel
repertoire, career opportunities and good working conditions.
The level to which an orchestra succeeds or stagnates, is reflected in its ability to adapt to
the constraints imposed for various stakeholders. It is clear that a strong communication
strategy is required within any orchestra. With appropriate communication and persistence,
change can be wrought.
6
HISTORY OF THE SYMPHONY ORCHESTRA
The symphony orchestra is an instrumental ensemble with more than 80 players. It
represents the cornerstone of classical music. Not only does it serve in the presentation of
classical music, ballet and opera, but it serves to present repertoire from the 20th and 21st
century and is used extensively in popular music and film.
The earliest forms of ensembles resembling the modern orchestra can be traced to royal
courts of European nobility, often as accompaniment to opera, dance and other visual
entertainment during the early 17th century. Court music remained the standard practice
and form of large ensemble music throughout the 17th and early 18th century. The earliest
examples of independent orchestras were formed during the 1700s. It is difficult in setting
an exact date is due to the fluid and evolving nature of large ensembles, which continued to
change for composer needs, public opinion, and advancements in instrument technology.
The culmination of this process was at the beginning of 19th century. The orchestra finally
becoming more than a popular ensemble format, and instead a distinctive a durable social
institution, that has remained a central feature of Western art music to the present day1.
With the diminishing presence of noble courts during the 19th century, and the increase of
music participation and music consumption, an activity of the growing middle class, the
public's role in shaping the modern orchestra increased and its presence in society grew. In
large European cities, amateur musical societies were being formed. As the importance of
the nobility diminished across Europe, orchestra musicians had more options, being able to
develop careers independently in orchestras not attached to a royal court 2. From these
amateur societies came civic orchestras, some of which developed into the first professional
orchestral groups, which addressed middle-class societies' growing interest and access to
the instruments and music of the orchestra.
1John Spitzer and Neal Zaslaw, The Birth of the Orchestra: History of an Institution, 1650-1815 (OUP Oxford,
2004), 14.
2Spitzer and Zaslaw.
7
Following on from these musically eventful centuries in which the modern orchestra was
developed, from the mid-19th century there has been little to no change in orchestra
instrumentation in terms of size and the types of instruments. It had apparently reached an
optimal level of size and diversity for composition purposes.
The evolution that has taken place since then has been more in the operations surrounding
the orchestra. The 19th shift by orchestras from amateur to professional ensembles, has
helped increase both the influence and the quality of the orchestra. A shift of this nature
creates issues and demands that go beyond that of purely producing the music. These areas
of management, financing, stakeholder man audience, development and ensuring ongoing
relevance and sustainability become key and competing issues along with the artistic
choices. These issues will be addressed in this thesis.
RESEARCH QUESTIONS
The following questions were used as guides to direct the line of research and the inclusions
of data for results and the discussion that was to follow.
- What are the key areas that effect sustainability of symphony orchestras?
- What can symphony orchestras do to build and sustain success on an artistic and
organisational level?
- What are the similarities and differences seen in the business and operations of the
orchestra’s in this study, and can the information gathered on each be used to
conceive an optimised model?
8
LITERATURE REVIEW
This literature reviews examines previous research work on the organization of orchestras
and challenges that they face with respect to obtaining financial support from various stake
holders, generating revenue from its activities and maintaining audience engagement.
Sources used covered different academic fields, with emphasis on musicology, social
science, economics and communications studies. Initial scoping work of relevant material
revealed that research had already been conducted into the importance of modernising and
developing the business approaches of classical arts organisations. There were also
examples of specific research on orchestras. Examinations of the challenges of balancing the
artistic and business demands of classical arts organisations have also been published. Most
of this work has been qualitative and broad – brush in scope. As a result, the discussion and
conclusions from this research tended to be subjective and reflected predominantly the
researcher's personal view regarding classical music.
Clearly there is need of a focused approach to identify the challenges facing the
contemporary symphony orchestra and identify the possible approaches to address these
industry issues. This thesis will perform a selective case study with the aim of delineating
practices which best serve the aim of ensuring the financial and cultural viability of the
orchestra.
My master’s coursework and related readings regarding human psychology, demographic

forces, and cultural analysis have allowed me to have an insight into marketing approaches
and digital media use that could serve orchestras in their advertising activities. This is
presented in the last section of the literature review.
9
- Historical forces impinging on the orchestra and changes in music provision
Until the mid 20th century, orchestral music was seen to be above the influence of business
and commerce. The music and performance were paramount no matter how this was
achieved. As described by French writer Théophile Gautier it was ‘art for art’s sake’3. In an
era when music and arts, in general was the domain of the aristocracy and dependent on
patronage, this is understandable. With the onset of the Industrial Revolution, the demise of
the aristocracy and the increasing financial dominance of the middle class, there occurred in
the 19th century the commercialisation and the rapid growth of orchestras and concert hall.
It should be remembered that this was before the onset of radio and recordings. Thus,
enjoyment of music was through live performances, whether professional or amateur, and
in private performances.
From the early 20th century, with the development of the radio, the gramophone and
movies and the increasing purchasing power of the working classes, mass entertainment
became an important economic force at the expense of art music4. This diminished the
central role of the concert hall and the symphony orchestra. The proliferation of different
music and entertainment genres and of modes by which consumers can access
entertainment has constituted to this day and in fact has accelerated.
Although it is recognised that that classical music represents one of the supreme
achievements of western civilization and that there are strong cultural and institutional
forces that will ensure its ongoing presence in society, it would be desirable that for the
cultural development of the society, its dissemination be maximised5.
During the course of the 20th century, there was major development of new corporate
structures, management practices, the application of phycological research in marketing,
advertising and communication. It was inevitable that these developments should influence
the organisation and management of symphony orchestras. This related to, not only with
3Théophile Gautier and Adolphe Boschot, Mademoiselle de Maupin (Garnier, 1880), ix.
4 Pierre Bourdieu, Distinction: A Social Critique of the Judgement of Taste, trans. Richard Nice and Tony
Bennett, 2010.
5 James Heilbrun and Charles M. Gray, The economics of art and culture, 2001.
10
respect to every-day management operations, but with respect to identify demographic
trends, developing appropriate marketing strategies for audience development but also,
with appropriate communication strategies manage a range of important stake-holders such
as governments, sponsors and philanthropic organizations. The aim is to ensure the
sustainability of the providers of the experience that can only be provided by a symphony
orchestra6.
Application of modern management practices to music

From the mid 20th century modern management practices were increasingly used to ensure
the financial viability of orchestras. Marketing and communication were increasingly used to
target stake-holders who could support the orchestra sand attract people to concerts.
Through this agenda, the application of demographic studies and application of theories
relating to human psychology and cultural capital became key in aiding the development of
marketing and communication strategies. The late 20th century works of the French
sociologist Pierre Bourdieu, was very important in identifying key psychological factors
which had a bearing on the cultural environment of a society7. However, these were broad
sociological and philosophical arguments. Thus, Bourdieu developed the concept of cultural
capital. Cultural capital refers to the social assets such as, education, style, cultural
preferences, posed by a person who promotes social mobility in a society. Bourdieu used
this concept to explain differences in achievement by children within the educational
system of France. It follows that in a society with high cultural capital audience engagement
for a cultural institution would be high. Clearly this is a chicken and egg situation. But it
would not be feasible for any one cultural organisation to bring about an increase in cultural
capital and hence ensure audience engagement. Thus, it does not have any applicable
methodology for the running of an orchestral organisation.
6 Pascal Gielen, “The Art Institution in a Globalizing World,” Journal of Arts Management, Law, and Society;
Philadelphia, Pa. 40, no. 4 (October 2010): 279–96.
7 Pierre Bourdieu, The Rules of Art: Genesis and Structure of the Literary Field, Repr (Cambridge: Polity Press,
2014).
11
The book ‘Performing Arts-The Economic Dilemma’, by William J. Baumol and William G.
Bowen addressed the lack of research into the forces that impinge on the creative and
business requirements for producing the classical arts. The work was commissioned by the
think tank “The 20th Century Fund” in 1966, to provide an analysis of the financial state and
sustainability of arts organisations in the United States. Of note is the preface of the book.
The fund’s director states how “it was not easy to find economists who would give to the
performing arts prolonged and serious attention”, It suggests that even in 1966, the
sentiment from Gautier’s century old quote, “arts for art’s sake” still persisted and that that
the arts were still thought to be mutually exclusive from “mundane concerns” 8.
The book used standard economic and accounting practices to evaluate the financial state
of arts organisations. Thus, financial expenditure such as wages and production costs, and
revenue streams from government and donations were evaluated. The conclusion was
pessimistic. The view was that classical organisations would be incapable of achieving self-
sufficiency and would require constant public and government support to maintain financial
balance9. This is demonstrated by US statistics demonstrating the increases in production
expenses compared to ticket prices (Figure 1)10. In addition to these findings regarding
operational costs and revenue streams, the authors provide considerable data on audience
demographics with respect to age and disposable income and other relevant parameters.
8William J. Baumol and William G. Bowen, Performing arts: the economic dilemma: a study of problems
common to theater, opera, music and dance, 1966.

9Baumol and Bowen, 402.
10 Robert J. Flanagan, The Perilous Life of Symphony Orchestras: Artistic Triumphs and Economic Challenges
(New Haven, Conn.: Yale University Press, 2012).
12
Figure 1: Depiction of orchestra expenses compared to ticket prices in the US, 1987-2005.
A study was found that used a case-study approach to analyse the managerial and economic
difficulties faced by a professional orchestra. It is a PhD thesis by Stephen Couch, titled;
Class, Politics and Symphony Orchestras” The Sociology of Orchestral Structures in London
and New York11. It is identified that there is not a common global structure for orchestra
management, based on his analysis of the New York Philharmonic and orchestras based in
London and Continental Europe. He found that organizational structure and operation
reflected the aims of the initial founding of the organization, and was influenced by the
social and economic factors of the societies and countries in which they were based.
As a result, the New York Philharmonic developed from an amateur orchestra at the
beginning of the 20th century, into a large professional orchestra with a highly developed
private patronage system, with administrative power transferred from the musicians to
more financially adept professionals. London and European orchestras by contrast
maintained a musician-based power structure and relied predominantly on state funding.
The capitalistic ideology of America versus the tradition of aristocratic arts patronage that
had existed in Europe had clearly affected the organisational approaches used by the
American, English and European orchestras. In addition, other social and political
11STEPHEN ROBERT COUCH, “Class, Politics and Symphony Orchestras: The Sociology of Orchestral Structures
in London and New York.” (Ph.D., State University of New York at Binghamton, 1979),
http://search.proquest.com/docview/302995589/citation/422C84AA3B1C4F0EPQ/1.
13
developments of the 20th century were key factors in influencing how these institutions
developed12. During this period, both European and US orchestras appeared to mirror their
management structure to that of the overseeing government. In Europe this meant state
intervention and subsidy by socialist orientated government, which in many cases resulted
in orchestra being converted into a state-owned entity. In the US by contrast, the Capitalist
government did not see the need to subside orchestras, which remained independent and
reliant on private financing13.
- Specific aspects of orchestra organization and management

The typical management structure of a corporation consists of a hierarchy of
responsibilities. The highest level is the board of directors. This consists of a number of
people, of diverse background, who have no day-to day responsibilities in the operation of
the organisation, but are responsible for maintaining governance and ethical standards
within the organisation and reviewing the decisions of the management of the organisation
with an emphasis on strategic soundness and impact on the ongoing sustainability of the
organisation. The board has the responsibility to appoint the Chief Executive Officer or
equivalent who is responsible for the operation of the organization. The CEO in turn
appoints the head of functional departments such as heads of finance, marketing, human
resources, operations etc14.
In many aspects the organisational structure of arts organisations, including orchestras,

follow similar principles. However, there are unique differences and challenges. Firstly,
there is the competing tension of how to achieve artistic creativity while maintaining
financial discipline. The other issue is that there are two centres of power: the
organisational director or CEO and the artist director. While the artistic director typically
reports to the organizational director, the artistic director is an important determinant of
12COUCH.
13 STEPHEN ROBERT COUCH, “Class, Politics and Symphony Orchestras: The Sociology of Orchestral Structures
in London and New York.” (Ph.D., State University of New York at Binghamton, 1979),
14 Nicolae Bibu, Laura Brancu, and Georgiana Alina Teohari, “Managing a Symphony Orchestra in Times of
Change: Behind the Curtains,” Procedia - Social and Behavioral Sciences, Challenges and Innovation in
Management and Entrepreneurship, 238 (January 1, 2018): 507–16,
https://doi.org/10.1016/j.sbspro.2018.04.030.
14
the culture of the organization, is the public face of the organization and typically is prime
marketing asset. These relations have to be harmonious if the organization is to thrive15.
The organisational structure of orchestras has been assessed in a PhD thesis. It confirms vie
expressed above, that there should be balance between the creative needs of the
organisation and the operational requirements. The research is based on the study of
orchestras from New Zealand, the US, and UK, identified two principal models of
organisational structure of professional symphony orchestras: player-owned (cooperative)
or board owned (corporate ) 16 (Figure 1). There is a strong tendency for US orchestras to
follow a corporate model compared to the cooperative dominance of orchestras in the UK
and Europe. It was noted that there was considerable movement and transition between
these models in his home country of New Zealand. All orchestras function at some point
within these two extremes. If management favours either side too greatly, it can result in
organisational instability (Figure 2). The key difference between these structures is the
influence of musicians on the executive level. In the cooperative model, orchestra
musicians have positions on the board and thus can influence managerial and artistic
decisions. The board in a corporate model features a non-artistic majority, usually
containing people that hold outside power or have influence to positively affect the
orchestra philanthropic income and stakeholder relations (Figure 1). It is noted in the thesis,
that whichever model is adopted can affect the culture and operational focus of the
organisation:
The underlying ownership may influence the status and performance

of various operational aspects. For example, in a corporately-owned
orchestra, artistic imperatives might take second place to commercial
imperatives, just as commercial imperatives might take second place to
artistic imperatives in a cooperatively-owned enterprise17.
15David Throsby, “The Production and Consumption of the Arts: A View of Cultural Economics,” Journal of
Economic Literature 32, no. 1 (1994): 1–29.
16Lloyd Prior Williams, “Organizational Change in Symphony Orchestras: A Description and Comparison of the
Two Principal Organizational Structures Adopted by Professional Symphony Orchestras, Changes That Occur in
These Structures and the Reasons for Change or Stasis.” (University of Aukland, 2008).
17Williams, 12.
15
Figure 2: Organisational Tree of the Polar Cooperative and Corporate Models 18
Figure 3: Visual of the stability issues with polarised management models 19
18Williams, 12.
19Lloyd Prior Williams, “Organizational Change in Symphony Orchestras: A Description and Comparison of the
Two Principal Organizational Structures Adopted by Professional Symphony Orchestras, Changes That Occur in
These Structures and the Reasons for Change or Stasis.” (University of Aukland, 2008).
16
The view that the organizational structure can affect organisational stability is supported by
research by Allmendinger et al, 20 where a qualitative analysis was made of the professional
relationship between orchestra musicians and administrative staff, through surveying
members of orchestras in the USA, UK, West Germany and East Germany (the study was
undertaken between 1990-91, hence the separation of data for pre-unified Germany). One
of the aims of the study was to see the impact of the different management style of the
market orientated American orchestras and that of the cooperative system of London based
orchestras21. It was found that the level of power given to the orchestra players versus that
to upper-management was a strong factor in determining overall satisfaction. While
increased musician control on administration and orchestra finances resulted in greater
satisfaction amongst musicians, separation of these two elements resulted in greater
financial security:
The more say the board of directors and the managing director have in
orchestral decision making, the greater the orchestra's financial strength.
The more say players have about orchestra decisions-whether directly (for
example, through votes by the orchestra as a whole) or indirectly through
the negotiated contract the weaker it is financially22.
The concept of competing agendas in orchestra management is discussed further in the

research of Ruud. Similar, to Williams’ polar concept of orchestra management, Ruud refers
to the ‘artistic’ and ‘business’ code of the orchestra, which compete against each other for
organizational prominence23. The research showed that there were significant ideological
differences between executives and musicians. The most divisive area of conflict was
programming choices.
20Jutta Allmendinger, J. Richard Hackman, andErin V. Lehman, “Life and Work in Symphony Orchestras,” The
Musical Quarterly 80, no. 2 (1996): 194–219.
21Allmendinger, Hackman, and Lehman, 195, 216.
22Allmendinger, Hackman, and Lehman, 213.
23G Ruud, “The Symphony: Organizational Discourse and the Symbolic Tensions between Artistic and Business
Ideologies,” JOURNAL OF APPLIED COMMUNICATION RESEARCH 28, no. 2 (May 2000): 117–43.
17
The common solution of orchestras to address artistic friction between management and
the musicians, is to plan an annual program that includes a variety of “Masterworks Series,
Kickback Classics and SuperPops in order to meet a wide range of audience interests”24
allowing for music that satisfies both artistic and business codes. The balance between
these artistic choices are dictated by the balance of power created by the organisational
structure and internal relationships. Proper discourse and clear communication between
the artistic and executive bodies of the orchestra need to be institutionalised to allow issues
to be discussed and resolved and prevents internal conflict25.
- Programming and operations

Finding a balance between the business and creative aspects of an orchestra's is typically a
highly contentious point of discussion within orchestras operations. Often this depends
greatly upon the internal management as to whether there is a priority to create concert
programs that allow to achieve financial goals over artistic ones or vice versa. For
musicologist Lawrence Kramer this represents one of the biggest challenges for classical
music moving forward if it is to remain at all viable and musically relevant 26. He is of the
opinion that classical music has become irrelevant and needs to find ‘new sources of
cultural and intellectual energy’. It could be argued, although wrongly, that in the main
source of concert material; ‘classical music’, there is often very little variation in the
composers or even of the works of composers that are played. There is a desire to maintain
traditionalist values of presentation and the concert styling and principles of decades and
centuries past are elitist and formal and no longer compelling to modern upcoming
audiences. This is proving to be highly detrimental to the industry being able to exploit what
is in fact a valuable asset which is essential for the development of the cultural capital of the
society that the orchestra serves.
24Ruud.
25Allmendinger, Hackman, and Lehman, “Life and Work in Symphony Orchestras.”
26Lawrence Kramer, Classical Music and Postmodern Knowledge (University of California Press, 1995).
18
Statistical data presents a clear view of the nature of orchestral concerts in terms of
repertoire choices27. In the five years spanning from 2013 to 2017, the six most performed
composers have remained constant, the most contemporary of this list was Pyotr
Tchaikovsky, died in 1893. Amongst the 20 most performed composers the most
contemporary, Dmitri Shostakovich, died in 1975. Amongst the top 50 performed
composers there was only one who is currently alive, the Estonian composer Arvo Pärt28.
One argument regarding the reinvigoration of the symphony orchestra, increasing audience
engagement and bringing the pleasures and benefits of classical music to a wider audience,
is to embrace the performance of modern works by current or unestablished composers so
that audience may experience the turnover and novelty of experience encountered by
audiences of other musical genres 29. The current norm of using the repertoire of centuries
past as the most common choice is in itself relatively modern occurrence, as compositions
written and performed prior to the 20th century generally had a continuous turnover like
that of modern popular songs30.
Despite this sentiment echoed by composers and orchestra administrators alike, there is
evidence that such a shift would have the opposite effect. In a study by Turini on concert
programming choices made by orchestra’s in Italy and USA, attendance was correlated,
showing that choosing compositions of modern composers, and in doing so neglecting the
works of the most popular composers, would in fact be detrimental to concert
attendance31. A similar conclusion was also reached more than 50 years earlier, were
Baumol and Bowen concluded that “adventuresome” programming decreased concert
attendance by 20%32.
27Dénes Várjon et al., “Classical Music Statistics 2017; The Year in Statistics” (BachTrack, November 1, 2018),
https://bachtrack.com/files/73896-Classical%20music%20statistics%202017-EN.pdf.
28Várjon et al.
29Leon Botstein, “The Unsung Success of Live Classical Music,” Wall Street Journal, March 10, 2008.
30Alex Turrini, Michael O’Hare, and Francesca Borgonovi, “The Border Conflict between the Present and the
Past: Programming Classical Music and Opera,” Journal of Arts Management, Law, and Society; Washington
38, no. 1 (Spring 2008): 71–88.
31Turrini, O’Hare, and Borgonovi.
32Baumol and Bowen, Performing arts, 255.
19
- Government Funding and Philanthropy
A full-scale orchestra is by nature very expensive with around 100 musicians requiring
salaries. In addition, there are costs of production, administration and advertising. A recent
studying by Flanagan, of the current financial situation of orchestra management concluded
that orchestras do not have the ability to be financially self-sufficient, where costs equal or
fall below their rate of revenue 33. Because of this financial reality, orchestras must rely on
additional income via private and public subsidy.
Flanagan’s study into the alternate forms of funding serves as a contemporary update on
the work of Baumol and Bowen, who identified and analysed the “cost disease” of the
performing arts34. From the mid to late 20th century, there was large improvements in
productivity in all sectors outside of the arts as a result wages increased in these sectors in.
Wages in the arts industry needed to match these increases in order to attract and retain
staff. Initially costs were passed onto the consumer in the form of increased ticket prices.
However once price resistance was encountered, the gap between revenue and expenditure
needed to be addressed through a combination of philanthropy and government support.
The availability of many forms of competing entertainment (cinema, television, sport) and
the development of many ways to source music (audio recordings, streaming), results in
considerable competition for entertainment with time and the cost of music having
decreased. However, for an orchestra costs of production and management have risen,
creating an economic dilemma and untenable market situation. This scenario is detailed by
Heilburn and Gray in ‘The Economics of Arts and Culture’. Consistent with the notion of the
importance of cultural capital, they argue that there is a necessary societal obligation to be
met in order to maintain and uphold artistic values that enrich society and its culture
beyond a monetary bottom line. It can be said that orchestras and much of the arts operate
in a situation of ‘market failure’ and thus are required to receive funding and added
33Robert J. Flanagan, The Perilous Life of Symphony Orchestras: Artistic Triumphs and Economic Challenges
(New Haven, Conn.: Yale University Press, 2012).

34Baumol and Bowen, Performing arts.
20
compensation for the advantages they provide.35 The current support of orchestras by
government and donors, is not unlike what occurred historically where ‘the arts where
subsidized by Medici princes, Austrian emperors, Russian czars’ and the like’36.
The level of government support for orchestras varies according to the government policy of
different countries. Galinsky and Lehnman analysed the orchestras in the United States,
United Kingdom, East and West German in order to determine how they were financially
supported37. The contemporary situation of the orchestras in each region differed
depending on the historical origins, and the history of private giving in each country. The
regal origins of orchestra music in Europe allowed for a transition into a model of significant
public subsidy. Orchestras were seen as an important component of the cultural fabric of
society. In contrast, the ‘American model was characterized by individual, foundation and
corporate funding’, and received minimal public subsidy. American orchestras were not
seen as part of a region’s cultural capital, they are predominantly seen to represent ‘high
culture’ and lacking the diversity of appeal of other artforms, that could justify public
subsidy.
This level of government support provided to European orchestras are usually associated
with considerable influence in orchestra operations. German orchestras are used and
controlled as a means of ‘government-sanctioned culture’. The US does not offer this same
level of oversight and protection, considering each orchestra accountable for its own
sustainability and developing their own business plan. The UK employs a system that is
positioned midway between the two, with a mix of private and public subsidy 38.
35Victor A. Ginsburgh, “The Economics of Art an Culture,” ed. N. Smelser and P. Baltes, International
Encyclopedia of the Social and Behavioural Sciences, 2001, https://doi.org/9780080464756.
36James Heilbrun and Charles M. Gray, The economics of art and culture, 2001,199.
37Adam D. Galinsky and Erin V. Lehman, “Emergence, Divergence, Convergence: Three Models of Symphony
Orchestras at the Crossroads,” The European Journal of Cultural Policy 2, no. 1 (October 1995): 117–39,
https://doi.org/10.1080/10286639509358005.
38 Adam D. Galinsky and Erin V. Lehman, “Emergence, Divergence, Convergence: Three Models of Symphony
Orchestras at the Crossroads,” The European Journal of Cultural Policy 2, no. 1 (October 1995): 117–39,
https://doi.org/10.1080/10286639509358005.
21
- Developing new audiences
Baumol and Bowen undertook extensive analysis of orchestra audience demographics. The
key findings were that the average age of an audience member was 38, compared to the US
median age of 30.3 at the time of the research. The occupational status of the concert goers
were 63% professional and 2,6% blue collar workers amongst the men. This compared to
the respective national makeup of 12,7% and 57,5%. For women there was a higher
proportion of those with high income and high education attending concerts 39.
The breakdown of professional status has become more diverse over the past decade.
However, high-level professionals still made up the majority (51,5%) of audience
members40. Other research has found that there is a ‘general under-representation of
people from non-European counties in arts participation and arts audiences’.
This and other demographic information have provided the basis of devising targeted
marketing strategies to attract audiences to orchestral concerts. The aim should not only to
encourage repeat attendance by established enthusiasts but also attract a new audience.
Osborne and Rentschler have provided insight into the positive effects of prioritising diverse
targeting strategies on increasing orchestra attendance 41. Their thesis is if classical music
attendance is becoming more diverse, it creates a need to provide more varied programmes
that better resonate in a contemporary market.
To achieve this, it is important that there is a true appreciation and understanding of the
factors from the repertoire, and the corporate interface which can serve to develop an
overall authentic experience42. In the past it was perceived as adequate to create a passive
relationship with the audience who were beholden to the artistic and creative choices of the
39William J. Baumol and William G. Bowen, Performing arts : the economic dilemma : a study of problems
common to theater, opera, music and dance, 1966.
40Zunigo and Wolff, 17-19.
41Daragh O’Reilly and Finola Kerrigan, Marketing the Arts: A Fresh Approach (London, UNITED KINGDOM:
Taylor & Francis Group, 2010).

42O’Reilly and Kerrigan, 59.
22
orchestra43. However overall participation in orchestra concerts and appreciation of classical
music is decreasing. This is due to the great ease of access which consumers have to music
as well as the wider variety of music available which has long surpassed the overall
popularity of orchestral music. However, it is generally recognised that people can
appreciate many types of music and typically welcome the opportunity to develop
themselves culturally. These issues indicate that devising innovative marketing and
communication programmes and diversifying educational programs should be a key
consideration for professional orchestras and with persistence, offers the opportunity to
engage and attract new audiences.
- Aims of this thesis

This review has shown that symphony orchestras face considerable challenges in generating
sufficient revenue and attracting audiences in the face of competing musical genres and
ways of accessing music. However, the situation is not so dire. Symphony orchestras do
have a loyal following, their importance as contributors to the cultural capital in society is
recognised and they continue to receive considerable support from government, private
donors and sponsors. But things should be improved. Before any future plan can be
formulated to address the challenges facing symphony orchestras, knowledge of current
organizational structures, management practices, fundraising approaches and audience
engagement strategies should be surveyed to establish if certain approaches are preferable
to others. Thus, these parameters shall be critically assessed in diverse orchestras from
Australia, USA, UK and Italy. The aim will be to find if elements of best practice can be
identified which can be recommended to orchestras to adopt to improve management
efficiency, revenue access and audience engagement.
43O’Reilly and Kerrigan, 60-61.
23
Methodology
The purpose of this research is to investigate the organisational structure and operations
used in the managing of symphony orchestras. Previous research and literature have
determined that these are affected by nuanced factors within and outside of the
organisation, relating to finance, government and the relationships with the audience and
external stakeholders. It is the intention of this research to study these organisational forms
in greater detail and beyond the generalisations based on nations or continental norms
which has previously been done. It is appropriate to research specific orchestras that
represent a wide variety of management styles that operate in separate global markets. The
aim is to understand the ideological theories being employed, in terms of business as well as
artistic factors that influence the industry of professional symphony orchestras.
Professional orchestra predominantly operate in markets in which they hold either

monopoly or oligopoly. As a result, they develop independently of competitors, and are
influenced by the audience and governments in the respective markets. An orchestra’s
administrative process can be unique to that organisation, meaning that previous research
into the links, common ground and similarities from one orchestra to another is significantly
lacking. Through a case study process of data collection, observation and comparison, the
aim of this thesis will be to provide a concise overview of four separate orchestras. The aim
of these separate overviews is to discover the key factors that influence the orchestra in
terms of artistry and administration, and provide results that can be used to discuss for
further comparison.
24
Selections process and defining “Professional Symphony Orchestra”.
The purpose of this study is to research four organisations the work for and run professional
orchestras. This means that the study will not be relevant to amateur, university, or
community run organisations.
The following definition of ‘Symphony Orchestra’ was used as a starting point for the criteria
of the selection process, eliminating the possible invalid analysis of the management or
construction of other types of musical ensemble.
Symphony Orchestra:
A group of instrumentalists, especially one combining string, woodwind, brass, and
percussion sections and playing classical music.44
In developing my definition of a professional orchestra prior to the selection process, I

consulted the aforementioned ‘Life and Works in Symphony Orchestras’ 45 using the criteria
of this research as an initial guide for my own selection process;
We studied only professional symphony orchestras, which we defined as ensembles

(a) whose primary mission is public performance of those orchestra works generally
considered to fall within the standard symphonic repertoire and (b) whose members
are compensated nontrivially for their services. Both concert and broadcast
orchestras are in our domain, as are orchestras that perform specialized works such
as operas or pops programs in addition to the standard repertoire. Excluded are
chamber ensembles, orchestras that perform operatic or theatre works exclusively,
university orchestras, and amateur orchestras46.
44 “Orchestra | Definition of Orchestra in English by Oxford Dictionaries,” Oxford Dictionaries | English,

accessed July 1, 2018, https://en.oxforddictionaries.com/definition/orchestra.
45 Jutta Allmendinger, J. Richard Hackman, and Erin V. Lehman, “Life and Work in Symphony Orchestras,” The
Musical Quarterly 80, no. 2 (1996): 194–219.

46 Allmendinger, Hackman, and Lehman, 95.
25
This description matched the criteria which I decide to include, in addition to my own points
of points of selection regarding the administration and operational activities, used in order
to select orchestral organisations that would fulfil the purpose of this study, as well as
criteria relating to the orchestra size in terms of finances and corporate structure;
The following points represent the mandatory criteria for each of the orchestra’s studied;
- Each orchestra must have a musical performance staff made of up of a core of paid
musicians (note: this refers only to orchestral members and not to any members of
an attached choir).
- The orchestra functions as a registered not for profit agency and is therefore tax
exempt and mandated to disclose financial holdings and fiscal activities on an annual
basis.
- The orchestra has a dedicated predominantly full-time administrative staff
comprising of multiple management departments.
The orchestra’s chosen for this study are;

1) MSO - Melbourne Symphony Orchestra (Australia)
2) NYP - New York Philharmonic (USA)
3) LSO - London Symphony Orchestra (United Kingdom)
4) SC - Accademia Nazionale di Santa Cecilia (Italy)
Note: The above abbreviations will be used when referring to the orchestras in the
subsequent sections of the thesis.
Research design
The research reported in this thesis used a multiple-case study design47. Data and
information on orchestras with respect to organizational structure, management systems,
revenue sources and programming strategies was collected and analysed. Comparisons
between orchestras were made in an attempt to correlate various organisational,
47Robert K. Yin, Qualitative Research from Start to Finish, Second Edition (New York, UNITED STATES: Guilford
Publications, 2015), http://ebookcentral.proquest.com/lib/unimelb/detail.action?docID=2008479.
26
operational and artistic management approaches to outcomes associated with financial and
artistic viability.
Data and information were gathered through a ‘collection method’ 48, using documents
relevant to the research question. Sources included annual reports and financial documents
readily available or obtained by approaching government departments, universities and
libraries in relevant countries. In addition, direct enquiries were made to the orchestras.
Through this approach a comprehensive set of data and information was gathered, which
allowed the research questions to be addressed.
Scholarly research published in academic journals and books and cited in the literature
review. These influenced the areas of inquiry chosen, how the results and information were
analysed and conclusions drawn.
The PhD thesis of Lloyd Williams; Organizational Change in Symphony Orchestras was an
influential source document 49. The research reported in the thesis was based on a case
studies on professional orchestras from separate geographical locations. It analysed the
organizational and management structure of orchestras and categorised them as falling into
either a cooperative or corporation model. Using interviews and available data he
correlated performance outcomes to the organizational structure of orchestra in the US, UK
and New Zealand. Contact was made with him and the discussions were useful in
developing the hypothesis and the methodology for this research.
The qualitative techniques of Maitlis and Laurence50 and Almendinger et al.51 were also
used. The aim was that by using their approach in the present work, it would ensure reliable
data and information collection, and valid analysis and conclusions. The former is a study
48 Yin, 154.
49 Williams, “Organizational Change in Symphony Orchestras: A Description and Comparison of the Two
Principal Organizational Structures Adopted by Professional Symphony Orchestras, Changes That Occur in
These Structures and the Reasons for Change or Stasis.”
50 Sally Maitlis and Thomas B. Lawrence, “Orchestral Manoeuvres in the Dark: Understanding Failure in
Organizational Strategizing*,” Journal of Management Studies 40, no. 1 (January 1, 2003): 109–39,
https://doi.org/10.1111/1467-6486.t01-2-00006.
51 Allmendinger, Hackman, and Lehman, “Life and Work in Symphony Orchestras.”
27
into the management strategy of a British Orchestra (name of actual orchestra is not
provided) and provides a breakdown of factors that made the strategy used unsuccessful.
The second presents the results of a study into the management of 78 orchestras from four
countries (USA, UK, West Germany, (former) East Germany), using archival information,
interview, observations, and player surveys to assess the differences between orchestras in
these countries. The use of comparison and analysis of the management and strategy
aspects of the orchestra were deemed an applicable tool to be used in the research
undertaken as part of this thesis.
Amendments of the research plan

The intention of this research was to analyse four orchestras. However initially, it was
undertaken to collect data from multiple orchestras from various geographic areas. The
purpose of this was to identify orchestras which would cooperate in providing information
and data and there was convenient and archival document access. As an example, on the
basis of this criteria, the Milan-based ‘Orchestra Sinfonica di Milano Giuseppe Verdi’ was
replaced with the Rome-based ‘Orchestra dell Accademia Nazionale di Santa Cecilia’. In
initial research on the Milan orchestra it was learnt that this orchestra was founded in 1993.
This recent foundation was in contrast to the other case study examples which date to the
beginning of the 20th century or prior. This would have limited the possible analysis of the
historical development. Additionally, the available annual reporting was not professionally
structured and published, creating doubts as to its validity. The final and most importance
factor for its removal from the case-study was the lack of financial data, which was not
available beyond one year.
28
Limitations of this research
- Small sample size
This research is limited to a sample size of four orchestras. Therefore, it can only be viewed
as a pilot study to establish if there is the possibility of significant findings and to establish a
network of other researchers in the field that can be consulted with sources of data and
research. It was necessary to restrict the size of the study given the time and resource
constraints.
The focus on a small number of orchestras allowed a detailed analysis of organizational

management parameters and their impact on financial and artistic outcomes. Although,
Maitlis’ and Almendinger looked at the general themes of orchestra management over a
large geographic area, the conclusions were very general and no specific insight was
obtained into practices associated with individual organisations and associated outcomes.
The effectiveness of detailed analysis through specific case studies to identify organizational
and managerial patterns is seen in the work of Williams. This work established that
concentrating research on a small number of orchestras allows for a more detailed analysis
of orchestra operations, to see the integrated design of the organisational management.
The large sample sizes used my Maitlis’ gave insight into the overarching themes of
orchestra management and internal relations in different geographic regions. In contrast
William’s research provided analysis with greater orientation towards detail, looking at
individual relationships within the orchestra.
- Diversity of place and social, political and economic environments

Each of the orchestras are in a different country. Each country has unique social, political
and economic environments. Thus, relating the internal organizational and management
practices of the individual orchestras to outcomes could be confounded by broad country
specific factors.
However, it should be recognised that that the world economy is globalised and there has
been significant convergence of management practices among developed economies. The
chosen orchestras are all based within a densely populated city and in countries with a per
29
capita GDP of above $30.000US 52. Thus, it is considered valid that the external factors,
although they exist, would not mask any unique management strategies adopted by an
orchestra that would lead to specific outcomes.
Each country’s environment provides unique challenges that each organisation needs to
contend with. This includes government oversight requirements, labour laws, political
interference and economic performance. However, every country has issues in this area to
some degree and any variance here does not negate comparing orchestras from different
counties. On the other hand, it would expected that some perceived disadvantages could be
associated with certain advantages. Thus, increased government oversight and political
interference can provide a means of obtaining increased government support.
Each of the orchestras publish financial reports. This is reported in the currency of the
country. All financial data reported in this thesis has been reported in Euro(€). The currency
exchange used was based on the rate at time each document was published, based on the
historical exchange rate taken from XE.com53.
- Detailed organisational comparison

It would have been of interest to perform a detailed comparison of the organisational
structure of the various orchestras. By detailing the type of functional departments and the
number of people engaged in certain managerial operational activities, it would be possible
to compare difference in resource allocation, differential managerial and productivity
between the orchestras. This comparison was found to be too difficult to be undertaken. It
was found that there were many unique regulatory and managerial factors that needed to
be addressed by the specific orchestras. This prevented the analysis of specific orchestra
positions, with many positions unique or overlapping with multiple positions in other
orchestras. As a result, it was deemed to be unsuitable to directly compare the types and
numbers of personnel in different departments. Instead broad comparisons are made
52 “GDP per Capita (Current US$) | Data,” The World Bank, accessed June 19, 2018,
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2016&locations=IT-AU-GB-
US&name_desc=true&start=1960&view=chart.
53 “XE - The World’s Trusted Currency Authority: Money Transfers & Free Exchange Rate Tools,” accessed
November 16, 2018, https://www.xe.com/.
30
between the artistic, administration and executive sections. The only direct comparison
involves the ‘orchestra musicians’ and ‘board of directors’ which is common for all orchestra
organisations. A detailed comparison of orchestra managerial and operational productivity
would be an interesting area of research, providing useful data to arts administrators,
government bodies and potential donors.
Results Structure
In response to the research process the results were separated into the information specific
to each orchestra. Subheadings were used to segment the information into key areas of
importance. The following is a template describing the subheading sections and their use in
addressing the research questions.
The results were split into two main sections, the first showing the separate results for each
of the orchestra, including an overview of key historical development, administration, and
artistic mission of each organisation.
o Part 1 – Individual reporting

- Introduction
Providing a brief overview of the origins of the orchestra, so as to understand its place in the
society where it based and the overall mission and impact it has already had and plans to
have.
- Organisational Structure
By accessing the documentation outlining the various organisational departments and the
type and number of employees who hold key positions. Through the gathering of this
information it would be hoped to understand what functions in each orchestra receive the
greatest priority and attention and which are more sparing and possibly overlooked.
Through results of this area it would be hoped that comparisons can be drawn between the
structures of each orchestra, so as to identify correlations or differences and their relation
to the strengths or weaknesses in the organisation. Additionally, in this section will be
presented the organisational structure of the executive, administrative and artistic bodies.
31
Using this information and resources gathered through reports and personal
correspondence, this was used in order to construct an organisational tree. The tree was
simplified to demonstrated the links between the bodies of the; symphony, executive
administration, and operational administration. This tree is based on the templates used by
Dr Williams depicted in Figure 254, but with the added information I have gathered on the
specific orchestras I plan to construct a more specific template, depicting with greater detail
the administrative nuance and differences between the orchestras. In distinguishing
between different the different forms and levels of superiority and oversight between the
different bodies, the following links will be used;
Solid line – Use of a solid line will be to refer to links that are part of the
direct chain of command, signifying direct answerability and distinguishing
between the more senior or junior positions in the company.
Dashed line – Links made with a dashed line will be used additionally to solid
links to symbolise partial accountability between different bodies,
symbolising where there is a superiority but with indirect or a partial level of
accountability and power that falls below that of the direct chain of
command. Greater detail to these relationships will be given in the attached
description to each map, giving context to the specific and unique
relationships which require this denotation.
- Public and Government support

This section will seek to provide context to the sources of funding that aid and enable to the
continued operation of these non-profit organisations. In addition to the management of
their own revenue the ticket sales and other performance revenue, there will also be a
concentration on the use and access to funds given through the private sector through
donations and sponsorship, and the public sector through the likes of government grants
and funding. With each orchestra operating in a different country and economic zone,
54Williams, “Organizational Change in Symphony Orchestras: A Description and Comparison of the Two
32
information will also be assessed from the government bodies who hold influence and
affect the aforementioned funding.
- Engagement Artistic activities

This section will provide analysis of the artistic choices being made by the orchestras. This
will be included consideration of the repertoire, concert planning, as well as choices made in
terms of soloists and other artistic staff. While again the main scope of this section will focus
predominantly on the 5-year range maintained in the other part of the result section, note
will be given to any major shift or developments in the concert structure on a more
historical context, that have served to develop the current status and norms.
In addition, the section will look at the methods being used to build the audience and the
orchestra brand. Taken into consideration will be the choices made in term of market
segmentation and use of targeting particular groups or demographics. It will discuss the
general and wider scope of the activities and initiatives being employed, with analysis will to
already concluded concerts and programming choices.
Part 2 – Key organisational and financial data of the case-study orchestras_

The second section combined numerical data and key information of the orchestra as part
of the integrated analysis. It includes further external data in response to the orchestra
finding, to provide better context and validity to what the orchestra results show. Further
details regarding the template and structure of these two results sections can be seen in the
subsequent sub-chapter overview.
The results in this section were compiled in response to the orchestra analysis. It considered
the discoveries made during the research and analysis of the orchestra. It was deemed
necessary to include further sources and compilations to provide better context for readers
and provide greater proof of validity when discussing the results. Part of this section
involved compiling the figures and results of the financial data from the individual
orchestras. The following table and figures are used to represent these compilations;
33
- An overview of key management structure parameters and of sources of income of
the case-study orchestras (Table 5).
- Pictorial representation of Orchestra position between Cooperative-Corporate poles
(Figure 8).
- Sources of Orchestra Income for 2017 financial year (Figure 9).
- Profit-loss 2017 financial year (Figure 10).
Following the compiling of the financial data and the research into the effects of
government intervention, there seemed to be an evident connection. In response to this I
chose to include an additional table;
- Total Taxed Income % GDP (Figure 11)
This table gives context to the differences in government and private financing which the
orchestras receive, a topic which became a key discussion point.
34
Results
Part 1 - Orchestra overview

The results in this section aim to identify differences or similarities in: reasons for
establishment, organizational sand management structures, level of financial resources and
artistic and performance philosophies.
New York Philharmonic.

The New York Philharmonic (NYP) America’s oldest and most prestigious orchestra, was
founded in 1842. It was established as a player owned cooperative group managed and
owned by the players in the orchestra. In 1909, following a period of financial strain the
orchestra transitioned from a cooperative to a corporate model in which artistic and
managerial decisions were taken from the musicians and given to the Committee of
Guarantors became the main source of funding. This managerial transition also marked the
transition of the orchestra into a professional orchestra 55.
Today the NYP is considered as one of the best orchestras in the world, with some of the
world’s best musicians, and the ability to produce spectacular performances. The ability to
produce high quality productions is made possible by its strong financial position. It has the
largest private financial endowment of any orchestra in the world 56. Performance, rehearsal
and administration facilities are based in the Lincoln Centre on Manhattan’s upper-west
side. The NYP is the only professional symphony in New York City, giving it a relative
monopoly in orchestral music in the New York metropolitan area.
55 Lloyd Williams and David Barry, “Professional Symphony Orchestra Management: A Melting and Melding of
the Polar Caps.” (Canada: HEC Montréal), accessed August 31, 2018,
http://ernest.hec.ca/video/pedagogie/gestion_des_arts/AIMAC/2003/resources/pdf/C/C09_Williams_Barry.p
df.
56 New York Philharmonic, “New York Philharmonic Annual Report 2016-17” (New York Philharmonic, 2018),
https://nyphil.org/~/media/pdfs/publications/2017-annual-report-v2.pdf.
35
Organisational Structure
The NYP has a complete management structure consistent with that expected for a large
modern organisation. This is needed to meet the large scale and number of operational
activities it undertakes. In addition to more than 100 full-time employed musicians, it has a
management and administrative team of similar size.
It has a Board of Directors of 45 full-time members57. This large board allows the orchestra
to access a large and varied source of revenue. A board member’s ability to access new
ways to bring capital to the orchestra is a key criterion for their selection to the board. The
large size of the board allows for it to be spilt into different standing committees which
address areas such as marketing, public relations and finance. Membership of these
committees are made depending on the background of the board members and aims to
utilise the skills of their professional background58. The role of a board of directors is to hire
the CEO of the organisation, devise the overall strategy of the organisation and assess the
execution of the strategy by the management, in order to ensure the ongoing sustainability
of the organisation. As the NYP is an artistic organisation, the board also has considerable
input into the choice of the artistic director. In addition to traditional governance activities,
the overwhelming majority of time and energy of the NYP board is directed towards
fundraising and building private revenue for the orchestra.
In the NYP there is distinct division between business operations and artistic decisions.
Decisions regarding operations choices are the full responsibility of the CEO and the
functional heads that report to that position. All aspects of artistic and performance issues
are addressed by the artistic director. It should be noted that following the 8-year tenure of
Alan Gilbert as Music director from 2009-2017, the orchestra appointed Jaap van Zwenden
as artistic director, and Deborah Borda as the new CEO 59.
57 Jacqueline Cardinal and Laurent Lapierre, “Company Profile: Zarin Mehta and the New York Philharmonic,”
International Journal of Arts Management 6, no. 1 (2003): 64–73.
58 Zubin Mehta, “Managing the New York Philharmonic in Today’s World,” International Journal of Arts
Management 5, no. 3 (2003): 4–11.

59 New York Philharmonic, “New York Philharmonic Annual Report 2016-17.”
36
In order to maintain engagement and morale of the musicians of the orchestra, a
democratic approach is taken in making many decisions. The artistic director is expected to
consult with the orchestra musicians on artistic issues and programming. They also
unofficially have the final say regarding the appointment of the CEO and artistic director.
Although this officially the decision of the board, it is accepted that to go against the wishes
of the players would create an untenable situation 60.
The organisational structure of the NYP is shown in Figure 4. It can be seen that a large
amount of control is held by the orchestra’s CEO. The position has full control of the chain of
command. He has the capability of influencing the artistic director (music director). It can be
seen that the Board has considerable responsibility being able to dictate to the CEO, the
artistic director and the executive director. The organisational structure shows the position
of executive director. He has the dual responsibility in overseeing finances and general
operations. This leaves the CEO to concentrate on the broader picture. Undoubtedly this
would include, strategy, Board communication and communication to financial, community
and political stakeholders.
60Williams, “Organizational Change in Symphony Orchestras: A Description and Comparison of the Two
37
Figure 4: Organizational structure of the New York Philharmonic
38
Public and government support
The NYP receives government support at a local, state, and federal level from the following
four groups;
- New York City Department of Cultural Affairs
- National Endowment for the Arts
- New York State Council on the Arts
- National Endowment for the Humanities
Table 1: Government and public support of the New York Philharmonic for 2016
Government financial revenue – 2016 €259,500 ($300,000US)61
financial year (ending 31/8).
Public and private sponsorship revenue – €63,249,572 ($73,120,892US) 62
2016 financial year (ending 31/8).
TOTAL €63,599,072
Engagement and Artistic activities

In 2017 the NYP performed a total of 218 concerts. This included 109 subscription concerts,
and 24 dedicated to younger audiences 63.
The orchestra runs a series of educational programs aimed at all age groups. For younger
children the orchestra has developed an online website “Kidzone”, providing access to
educational games and an interactive service providing information on the orchestra and
the instruments. It provides a wide variety of live programmes which includes: Children’s
Promenades and Musical Story Time. In addition, it provides ‘School Day Concerts’ for
teachers and their classes.
Part of the NYP ‘s annual programming involves free concerts. This includes a free outdoor
concert held in Central Park and free public concerts performed in the surrounding New
61 Internal Revenue Service, “Return of Organization Exempt From Income Tax,” accessed September 8, 2018,
https://nyphil.org/~/media/pdfs/support/990-NYPhil-2016.pdf?la=en.
62 Internal Revenue Service.
39
York boroughs. Since 1992 the orchestra have presented an hour-long free program on
Memorial Day concert at the Manhattan’s St John the Divine Cathedral64.
Concerts involving the use of Films with live music are now a regular item in the annual
programming of the orchestra. That aim is to have a broad range of content to attract a
diverse and younger demographic of audience65. This has involved screening an
accompanying cinematic classic such as ‘2001 A Space Odyssey’ and ‘There Will Be Blood’
for film aficionados, and then ‘Home Alone’ and ‘Bugs Bunny at the Symphony II’.
Concerts involving unique and challenging ideas are also present in the programming. In
2018 the orchestra premiered the piece Ricochet involving orchestra performance together
with the sounds of ping pong tennis being played live on stage66.
The wide variety of performance style extending from traditional symphonies to

experimental works demonstrates the stated artistic agenda to develop an innovative and
engaging concert experience.
64 New York Philharmonic.

66 Andy Akiho, “Ricochet, Concerto for Ping Pong, Violin, Percussion, and Orchestra,” n.d., 2.
40
Melbourne Symphony Orchestra
The Melbourne Symphony (MSO) is one of the largest and most eminent orchestras in
Australia. Originally founded in 1904, in 1965 it became the first Australian orchestra to
perform internationally through a tour of New Zealand67. It continues to tour regularly
outside the Asia-pacific area to Europe, USA and China. The main concert and operational
venue for the orchestra since 1982 has been Hamer Hall (previously known as the
Melbourne Concert Hall) which is in in Melbourne’s Arts Centre complex. The orchestra
currently operates under Managing Director Sophie Galaise and Chief Conductor Andrew
Davis.
Its concert programs demonstrate for both continuing to present the favourite traditional
repertoire but also expose the audience to less well known and contemporary pieces.
Organisational structure
The MSO was founded as a player owned cooperative of amateur musicians in 1904. It
remained an amateur organisation until 1946. The then government’s media broadcaster –
The Australian Broadcasting Commission, made the decision take management control of
the major orchestras in each state capital, and create professional orchestras that would
function autonomously but under government support and control 68.
The creation of these six institutions gave each orchestra and the ABC a monopoly on
professional orchestral music across the entire country. Until the end of 20th century the
orchestras operated under this government - run corporate model. Each orchestra served as
an individual branch of a single ABC music division69, and with all artistic and business
decisions coming directly from a central government run administration.
67 Zubin Mehta, “Managing the New York Philharmonic in Today’s World,” International Journal of Arts
Management 5, no. 3 (2003): 4–11.
68 “History of ABC Orchestras and Brands” (Australia: Australian Broadcasting Corporation, 2012),
http://www.abc.net.au/corp/history/75years/timeline/orchestras.pdf.
69 Stephen Boyle, “Beethoven Inc: The Corporatisation of Australia’s Symphony Orchestras,” Asia Pacific
Journal of Arts and Cultural Management 2, no. 2 (June 12, 2008),

http://apjacm.arts.unimelb.edu.au/article/view/59,123.
41
In the 1990s the MSO and each of the respective ABC orchestras was restructure to remove
government intervention and instate individual orchestra management. The aim was to
allow each orchestra to market and self-manage itself. It was thought that more
management agility and self-management responsibility would promote efficiency and
marketing innovation. It was generally agreed that while “central management of the
institutional framework” had been key in developing the MSO70, it was stifling the further
development of the orchestra. The divestment process began with the dissolution of the
‘Concert Division’ of the ABC and the eventual severing of connections with the government
run music department71. The divestment process culminated in the complete separation
from government control and oversight in January 2007 72.
The MSO has a ten-person board which oversees the philanthropy and executive
management of the orchestra. It is a under the chairmanship of Michael Ullmer 73. Under the
MSO constitution this board can hold between 3 to 13 members 74. The makeup of this
board includes a broad range of professions including banking, information technology,
philanthropy, and at least one current player in the orchestra75. The board as expected,
functions in developing and fostering the private financial revenue of the organisation and
developing the general operating strategies. The board’s influence does not extend to
affecting the artistic activities of the orchestra. The Board additionally hold executive power
in the appointment and termination of the Managing Director and Chief Conductor.
The organisational structure for the MSO is shown in Figure 5. The current Managing
Director is Sophie Galaise, who is responsible for the overall administration of the orchestra.
The financial management of the organisation is the responsibility of the Chief Financial
70 Boyle, 124.
71 David Garrett, “The Accidental Entrepeneur - How ABC Music Became More than Broadcasting” (University
of Wollongong, 2012), http://ro.uow.edu.au/cgi/viewcontent.cgi?article=4682&context=theses, 181.
72 Boyle, “Beethoven Inc.”, 124.
73 “Board,” Melbourne Symphony Orchestra, accessed August 24, 2018, https://www.mso.com.au/about-
us/governance/board/.
74 Melbourne Symphony Orchestra, “Constitution of MELBOURNE SYMPHONY ORCHESTRA PTY LIMITED,” Pub.
L. No. Corporations Act 2001, ACN 078 925 658) (2007),

https://acncpubfilesprodstorage.blob.core.windows.net/public/50f85724-39af-e811-a960-000d3ad24282-
6c195f0f-888a-41ef-8582-1dfbc9fe6758-Governing%20Document-b3c30a0c-48b0-e811-a960-000d3ad24282-
47078925658_Gov.pdf.
75 Jennifer Lang, “Research Inquiry - University of Milan,” August 28, 2018.
42
Officer (CFO). Other management and operational activities are the responsibility of the
Managing director who oversees the artistic choices and operation managed by the
Department Directors who report to the Managing Director. However, there is the
possibility of the CFO to go directly to these directors 76. The power of the CFO to directly
intervene in the function of Departmental Directors, clearly shows the significance of
financial control in the MSO culture.
76 Melbourne Symphony Orchestra, Constitution of MELBOURNE SYMPHONY ORCHESTRA PTY LIMITED.
43
Figure 5: Organisational structure of the Melbourne Symphony Orchestra
44
The MSO receives government support at a local, state, and federal level from the following
three groups:
1) City of Melbourne (Local)
2) Creative Victoria (State
3) Australia Council (Federal)
The sources of revenue of the MSO are shown in Table 2:

Table 2: Sources of revenue of the Melbourne Symphony Orchestra in 2017.
Government financial revenue – 2017 €8,639,520 ($13,814,402AUD)77.
Public and private sponsorship revenue – €2,777,720 ($4,413,897AUD)78.
TOTAL €11,417,240
Engagement and artistic activities

In 2017 the orchestra has made 157 performances. This is included concerts at their home
venue of Hamer Hall in Melbourne, at regional venues within the state of Victoria, as well as
six engagements which were hired privatly. In presenting concerts and performances, the
orchestra has put emphasis into both providing opportunities for Australian artists. It has
provided opportunities to 32 Australian performers and the premiered of 14 new Australian
compositions79. In addition, it has endeavoured to be a world class orchestra and therefore
over this time, it has engaged globally diverse artists comprising of 43 conductors and
soloists from 18 counties 80.
In addition to paid concerts, the orchestra presents a number of free concerts aimed at
engaging non-regular attendees and people without the means or access to attend paid
events. In 2017 this included the MSO ‘Secret Symphony’ series, an initiative where
77 “MSO Annual Report 2017, 71.”

45
impromptu concerts were performed at secret locations around the city of Melbourne. The
aim was to bring a new modern style and perspective to the classical music experience81.
Since 1959 the orchestra has presented a series of summer open air concerts. These are free
event for families and younger listeners. Concerts consist of works that would be considered
more of an ‘easy listening’ genre such as Tchaikovsky’s 4th Symphony and Ravel’s Boléro
being examples of two of the well-known popular works that have been being performed82.
81“MSO Annual Report 2017, 34.”

82“2018 Sidney Myer Free Concerts,” Melbourne Symphony Orchestra, accessed August 28, 2018,
https://www.mso.com.au/whats-on/2018/2018-sidney-myer-free-concerts/.
46
London Symphony Orchestra
The London Symphony Orchestra is the oldest of the 4 major orchestras in the city. It was
formed out of pool of players from the now defunct Queen’s Hall Orchestra following wage
disputes83. This dispute lead to a pool of 46 players from the former orchestra to establish
their own self-governing cooperative orchestra in 1904.
As one of the largest orchestras in terms of value and esteem in the UK, this reputation has
developed and maintained over the years, allowing the orchestra to be at the forefront of
innovation. The Orchestra has operated out of the Barbican centre in the centre of London
since 1982, a multipurpose performing arts complex owned by the City of London. Through
its reputation and high artistic merit, the orchestra has been able to attract some of the
world’s highest calibre musicians and conductor. This includes the recent appointment of
Simon Rattle as the new artistic director in September 2017 84.
The business model of the London symphony orchestra follows the Cooperative Model, one
that is adopted by the symphony as well as two of the other professional orchestras based
in London (London Philharmonic and Royal Philharmonic Orchestras) 85. Key to this
management system is ownership of the orchestra by the players themselves. The orchestra
is governed by a 14-member board of directors of which a nine-person majority are
musicians and executive administrators (6 musicians and 3 administrators). The position of
Chairman and Vice-Chairman of the board are always made of the musician board
members. The remaining 4 positions are for external directors from the London business
community86. This board is split into two Committees; the first is the Orchestra Committee
which is made up of only musicians and the managing director. The second is the Finance
83 Zenone, “London Symphony Orchestra: New Vision and New Policies through Self-Governance.”
84 “Press Release: Sir Simon Rattle Appointed Music Director of the LSO,” March 3, 2015,
https://lso.co.uk/images/pdf/Press_Release_Sir_Simon_Rattle_appointed_Music_Director_of_the_LSO.pdf.
85 Lloyd Williams and David Barry, “Professional Symphony Orchestra Management: A Melting and Melding of
the Polar Caps.” (Canada: HEC Montréal), accessed August 31, 2018,
http://ernest.hec.ca/video/pedagogie/gestion_des_arts/AIMAC/2003/resources/pdf/C/C09_Williams_Barry.p
df, 3.
86 Zenone, “London Symphony Orchestra: New Vision and New Policies through Self-Governance, 38.”
47
Committee which is made up the Managing Director of the external directors and one
musician. The agendas of each committee are split, with the Orchestra being in charge of
the day-to-day decisions of the orchestra, while the Finance committee maintains the
orchestras finances87.
The managing director Kathryn McDowell serves as the head of the organization. In the
context of the organization she is in charge of administrative duties regarding relations with
government agencies and corporate sponsors, whilst also setting the agenda on artistic
matters for the orchestra.
The organisational structure of the LSO is shown in Figure 6. The Cooperative model of the
LSO creates a partial link between the orchestra and the Board of Directors, as a result of
the majority representation. The influence the orchestra has through the board power
means that there is direct command held regarding artistic and management decisions in
the organisations, reflected in direct link to the Managing Director. The Managing Director
serves as the head of the head of the organisation, delegating the financial and
management responsibilities to the Company Secretary, which leads to the respective
Department directors and administration staff.
87“London Symphony Orchestra - Constitution,” accessed November 13, 2018,

https://lso.co.uk/orchestra/constitution.html.
48
Figure 6: Organisational structure of the London Symphony Orchestra
49
The LSO receives government support on a local and federal level from the following two
groups88;
- City of London
- Arts Council England
Table 3: Government and public support of the London Symphony Orchestra for 2017
Government financial revenue – 2017 €4,636,789 (£4,181,050)89
Public and private sponsorship revenue – €3,109,064 (£2,786,197)90
COMBINED TOTAL €7,745,853
Engagement and Artistic activities

In the 2017 financial year, the orchestra performed approximately 70 concerts at the
Barbican Centre and 49 at their private London venue St Luke’s. Additionally, the orchestra
has maintained an extensive touring schedule of 15 countries that included China, South
Korea, the USA and numerous European nations 91 .
The orchestra has maintained its efforts to build a younger and more diverse audience base,
with a free open-air concert for 7000 viewers held in Trafalgar square. Other free concerts
held through its educational programs organised through the LSO Discovery program aim to
engage schools, people with special needs, as well as under-5 concerts aimed at fostering
and building audience relationships from a young age.92. The program is founded in 1990
88 “London Symphony Orchestra Limited (Consolidated) Report and Financial Statements For the Year Ended
31 July 2017” (London Symphony Orchestra, 2017, 7.
http://apps.charitycommission.gov.uk/Accounts/Ends91/0000232391_AC_20170731_E_C.PDF.
31 July 2017, 23.”

31 July 2017.”
31 July 2017, 4.”

92 “London Symphony Orchestra - Concerts for Under-5s,” accessed September 5, 2018, https://lso.co.uk/lso-
discovery/discovery-families/concerts-for-under-5s.html.
50
and has grown to now engage with 60,000 people yearly, with 946 workshops (an average
of 3 a day) being hosted by a rotation of orchestra members, to main engagement and one-
on-one communication with a diverse audience base93.
Part of the LSO’s strategy for building their coverage is through developing new ways to
advertise their product outside of concert halls. In 2000 following a ten year decrease in the
orchestra’s investment in producing classical recordings, a move was made to internalise
recording productions, and so the orchestra founded its own record label called LSO live.
Through the shortening and consolidation of the supply chain, the orchestra has been able
to increase the revenue and scope of records that have penetrated digital markets through
an innovative rights management model that allows for greater control than would be
possible through an outsourced record company, with further recent developments also
including the live video access to concerts over the internet free of charge94.
93 “LSO Discovery at 25,” accessed September 6, 2018,

https://issuu.com/londonsymphony/docs/lso_discovery_25_issuu.
94 A. Aguilar, “Negotiating Liveness: Technology, Economics, and the Artwork in LSO Live,” Music and Letters
95, no. 2 (May 1, 2014): 251–72, https://doi.org/10.1093/ml/gcu021.
51
Orchestra dell'Accademia Nazionale di Santa Cecilia (Rome, Italy)
The Orchestra of the Accademia was founded in 1908. Previously existing as an academic
ensemble of a Roman musical academic society of the same name founded in 1585, it was
transformed into a private ensemble managed and mainly populated by musicians and
academic staff95. The orchestra was created as a response to the declining popularity of
symphonic music in Italy over the course of the late 1800s in favour of opera, becoming the
first Italian orchestra to dedicate itself to the performance of symphonic works. The first
performance taking place on February 16th under the conductorship of Giuseppe Martucci 96.
In 1912 Italian conductor and former student of the conservatory Bernardino Molinari was
named the inaugural music director.
The orchestra remains Italy’s largest and most eminent symphonic orchestra. It has built its
reputation through the 20th century through collaborations with eminent conductions
including Mahler, Debussy, Saint-Saëns, Strauss, Stravinsky and Sibelius97. Since 2002 the
orchestra has been based at ‘Auditorium Parco della Musica’, providing the facilities for
rehearsal, administration, as well as both indoor and outdoor amphitheatre performance
spaces.
The management of the organisation functioned as a cooperative of musicians in the
orchestra prior to the second world war. Additional administrative responsibilities were
handled by the academic staff from the Music Society, which had transitioned into a
conservatory in 1886.
Significant management changes occurred as the result of a national overall on the

performing arts sector taken by the Italian government. This involved centralising the
95 Accademia di Santa Cecilia, “Integrated Balance Sheet 2016” (Accademia di Santa Cecilia, 2017),
http://www.santacecilia.it/file_gallery/bilancio/Bilancio_2016_Inglese.pdf.
96 Accademia di Santa Cecilia, 11.
97 Accademia Nazionale di Santa Cecilia, “Orchestra / Accademia Nazionale Di Santa Cecilia,” accessed
September 13, 2018, http://www.santacecilia.it/en/chi_siamo/orchestra_e_coro/orchestra.html.
52
management of arts organisation under government control and funding. The motivation
for this change was to increase the cultural and social education of Italian society98.
A 1967 resolution (Italian Law 800/1967) reclassified 13 Italian artistic organisations (SC
being the only national orchestra included) as non-profit public bodies. Following this legal
change, the orchestra and other major artistic institutions became professional, run through
direct government oversight and funding. Government funding and management were
further streamlined by Law 163/1985 that established FUS (Fondo unico per lo spettacolo)
to reduce bureaucracy.
This period of government autonomy was ended in the 90s through the government
decision to re-privatise the orchestra and other artistic organisations. Laws 367/1996 and
134/1998 transformed SC and other effected organisations into private non-profit
foundations, whilst maintaining indirect oversight on funding and operations. Since then the
orchestra has continued to move operation and financial activities further towards
independence, reducing government intervention in favour full private management 99.
The current day-to-day management and operation of orchestra activities are overseen by a
President-Superintendent, Vice-president and 13 additional members of the Board of
Directors. All members are granted a 5-year term with the possibility of a maximum of only
two consecutive terms. The orchestra has been under the Musical Directorship of Antonio
Pappano since 2005, who has aided in developing the modern international reputation of
the orchestra through international touring and acclaimed recordings. The role of President-
Superintendent is currently held by Michele dall’Ongaro. He serves as both the head of
orchestra management and the artistic decisions, which in other orchestras are separate
roles that may be held by a CEO and an Artistic Director.
The orchestra now operates separately from the Conservatory and educational foundation
of the same name, but the academic board still hold power in the appointment of board
98 Accademia di Santa Cecilia, “Integrated Balance Sheet 2016, 4.”

99 Accademia di Santa Cecilia, 4.
53
members and the ability to influence artistic decisions. Influencing these artistic decisions is
the Assembly of Academicians, a group of 60 lifetime appointees that must be Italian
citizens.
The construction of the Board of directors is made under the following criteria.
- 7 orchestra representatives (President, vice-president, and 5 Academician
appointees).
- The Mayor or Rome/ a representative of their choice.
- Appointee of the Ministry of Heritage, Culture and Tourism.
- Appointee of the State region (Lazio).
- 5 members representing the non-statutory founders (largest sponsors).
The Organisational Structure for SC can be viewed in figure 7. It demonstrates that the
orchestra functions under external regulation mandated by the government. In addition to
the board positions held by government officials, there is also the position of ‘Government
Auditor’ to oversee and regulate financial and budgetary positions of the orchestra. The
board of directors has oversight and power to set guidelines in the management and artistic
direction of the organisation. The dual title of President-Superintendent and Artistic
Director represents the same function as a Director or CEO, serving as the leader of the
organisation and bridging the managerial divide with administration staff, while additionally
having added authority over the artistic operations of the conductor and orchestra than is
the case in comparable roles of other orchestras organisations.
54
Figure 7: Organisational structure of Accademia di Santa Cecilia
55
Public and government Support
The Santa Cecilia Orchestra receives government support on a local, state, federal and
continental level from the following groups;
- Region of Lazio.
- City of Rome.
- Italian government (Ministry of Goods, Cultural Activities and Tourism).
- European Union.
Table 4: Government and public support of the Accademia Santa Cecilia for 2017
Government financial revenue – 2017 €16,949,900100.
Public and private sponsorship revenue – €5,380,000101.
COMBINED TOTAL €22,329,900
Engagement and Artistic Activities

The orchestra maintains an intense performance schedule with around 256 performed at
the Parco della Musica in Rome, and a further 59 at other Italian or international venues 102.
with numerous tours and performance also taking place in other European and international
cultural centres.
Repertoire is made up overwhelmingly by symphonic and concerto works, often involving

the soloist participation of highly established and revered international musicians. As part of
the orchestras effort to increase its international presence and develop new and younger
audiences, it has founded the ‘Music Up Close Network’, creating a network amongst other
major orchestras around Europe as a pilot co-operation network to experiment and share
100 Accademia Nazionale di Santa Cecilia, “Budget Economico Annuale Anno 2017” (Fondazione Accademia
Nazionale di Santa Cecilia, 2017), 54.
http://www.santacecilia.it/file_gallery/bilancio/Bilancio_preventivo_2017.pdf.
101 Accademia Nazionale di Santa Cecilia, 54.
102 Accademia Nazionale di Santa Cecilia, “Integrated Balance Sheet 2017,” Annual Report (Rome, Italy, 2018),
http://www.santacecilia.it/file_gallery/bilancio/Integrated_balance_sheet_2017.pdf.
56
new strategies and approaches to connect the orchestral music with youth audiences 103.
The orchestra also provides strong subscription and ticketing incentives to younger
audiences, with those age 30 and under provided with subscription offers in excess of a 50%
discount and those 18 and below having access to further discounted offers.
Through the orchestra’s strong links with the conservatorium there are strong integrated
education programs that are aided by the orchestra’s administration. “JuniOrchestra” is an
education program founded in 2006 involving the running of 5 separate junior orchestra’s
for students aged from 5 to 21104. The program provides introductory lessons and an
interactive introduction to classical music for children.
In addition, the orchestra also has programming dedicated to young-adult audiences,

including intimate informal concerts named ‘Musica in-attesa’ dedicated to those with
newborns or expecting children in the near future.
103 “Project,” Music Up Close Network, accessed September 21, 2018, https://www.musicupclose.net/project/.
104 Accademia Nazionale di Santa Cecilia, “Integrated Balance Sheet 2017.”
57
Key organisational and financial data of the case-study
orchestras
Table 5 presents some key information on the organisational details and sources of funds of
the case-study orchestras. It can be seen that only the LSO has a cooperative structure.
Consistent with this it has high representation of musicians in the board. All the others have
a corporate structure with low musician membership of the board. In fact, NYP has no
musician membership. The NYP also has a very large board. This is reflecting the fact that
the major funding sources for the orchestra are private sponsorship and philanthropy. It is
known that the NYP relies on the business and professional networks of its board members
to source funds, and in addition their skills in fund-raising, public relations, marketing,
communication and stake-holder management.
Table 5. An overview of key management structure parameters and of sources of income of

the case-study orchestras.
New York Melbourne London Orchestra
Philharmonic Symphony Symphony Academia
Orchestra Orchestra Orchestra Santa Cecila
Founded 1842 1904 1904 1908
Year of transition to 1909 1946 1904 1908
professional status
Dominant organisational Corporate Corporate Cooperative Corporate
structure
Board of Directors. Ratio 0:45 1:9 6:8 1:13
of orchestra musicians:
external appointments/
executives
Largest funding source Private Government Operational Government
sponsorship and income
philanthropy
58
Figure 8 depicts pictorially the dominant organisational structure of the orchestras on the
cooperative to corporate spectrum. The position is primarily determined by the relative
representation of musicians on the board. It can be seen that that the LSO exhibits the most
cooperative model and the MSO and SC in an intermediate position. The NYP has essentially
complete alignment with the corporate model.
Figure 8 – A comparison of the dominant organisation model of the orchestras on between

the cooperative and corporate poles. The prime determinant is the degree of musician
representation on the board.
Figure 9 presents the sources of revenue for the various orchestras for 2017 but 2016 for
NYP. All of the financial data is from the audited financial documents. With consideration of
the stated ‘Limitations’, the data has been converted to Euros(€) and is segmented into
three categories:
- Operation income: Earnings made through ticket sales, recording revenue and hiring
fees.
- Private (Sponsorship/Donations): Earnings received through donations received
through individuals or privately-owned organisations, and sponsorship agreements.
- Government: The combined earnings received through government grants specific
contributions.
59
There is a clear difference between the orchestras. The NYP obtains the bulk of its funds
from private donations, the LSO from operational activities, such as ticket sales, recordings
and contract engagements, SC obtains significant government support. The MSO relies
predominantly on operational earnings and government support, with private sources of
funding the smallest of all the orchestras. It would worth identifying why this is so. It is
possible that Australia being a new country does not have a strong philanthropic tradition.
The absolute total revenue of the NYP of approximately Euro 85 million is considerably
greater than the other orchestras. The next biggest orchestra with respect to total revenue
is SC with an inflow of approximately Euro 31 million.
100%
90%
29.1% 25.8%
80%
46%
70% 59.1%
60% 17.1%
50%
13.1%
40%
73.9%
30% 16.4%
53.8%
20% 40.9%
10% 24.5%
0.3%
0%
SC MSO NYP LSO
Opeational Income 9,158,015 9,724,452 22,070,481 11,199,961
Private (Sponsorship/ Donations) 5,380,000 2,777,720 63,249,572 3,109,064
Government 16,949,900 8,639,520 259,500 4,636,789
Figure 9: The distribution and absolute value of funds in Euros received by the orchestras
during 2017 (NYP 2016)
60
5 year annual Profit/Loss
20000000
15000000
10000000
5000000
-5000000
2013 2014 2015 2016 2017 5-Year Total
SC 338757 5514 49137 52236 54898 500542
MSO 412711 618,268 -355340 526,041 944,276 2145956
NYP 12,760,273 5640210 -914535 3,697,903 -2,301,897 18,881,954
LSO 251196 54,559 -359201 8320 634110 588984
SC MSO NYP LSO
Figure 10: The profit and loss for the orchestras for individual years from 2013 to 2017 and
the accumulated surplus at the end of this period
Figure 10 shows the orchestra’s profit loss based on the annual orchestra activities for the
last 5 years. All values are in Euros. The final column shows the accumulated profit-loss for
this period. The formula used to create these values is as follows
- Cash inflow – Cash outflow = Gross Margin
All of this data is from the annual financial filings listed by each orchestra. These are all
publicly available as a result of the non-profit status of all orchestras studied. In all cases
the, the Gross Margin Value had already been calculated and stated in audited public
reports, ensuring validity of the results. The annual cash flows of the MSO, LSO, NYP, are not
subject to any government tax. However, in the case of SC, there is an income tax applied to
the end of year surplus, mandated as result of Decree 367/96. This requires that a
percentage of the surplus be returned to the government, with the exact percentage being
calculated annually ‘on the basis of a realistic forecast’105.
105 Accademia di Santa Cecilia, “Integrated Balance Sheet 2016, 49”
61
Figure 10 also shows the total positive or negative surplus left in the orchestra’s possession
at the end of each financial year. For consistency, the tax required to be paid by SC was
included as part of the ‘Cash outflow’. This did not require any additional calculation
because both final values, with tax removed or included, were also provided in the original
report.
The profit and loss data show that each orchestra typical ran small profits or losses. The NYP
had significant profits in 2013, 2014 and 2016. The reason for this is not known. At the end
of the five-year period the NYP had accumulated significant reserves of approximately Euro
19 million. This is substantial. It can be concluded that this would provide the NYP resources
to engage in any artistic endeavour that it chose.
Figure 11 shows the percentage of GDP collected as tax in the various countries where the
orchestras are located. Tax revenue is defined as the revenues collected from taxes on
income and profits, social security contributions, taxes levied on goods and services, payroll
taxes, taxes on the ownership and transfer of property, and other taxes. Total tax revenue
as a percentage of GDP indicates the share of a country's output that is collected by the
government through taxes. The tax burden is measured by taking the total tax revenues (all
national taxes) received as a percentage of GDP.106
106“Tax - Tax Revenue - OECD Data,” theOECD, accessed October 15, 2018, http://data.oecd.org/tax/tax-
revenue.htm.
62
50 Total Taxed Income % GDP
45 43.9 44.05
43.46 43.29 42.87
41.86 41.91
40
% Taxed revenue
35 33.51 33.21
32.59 32.76 32.57 32.53
32.18
30 28.22
27.11 27.33 27.6
26.06
25.42
25 26.23
25.65 25.93 26.02
23.9 24.07
23.49
20
2010 2011 2012 2013 2014 2015 2016
Australia Italy United Kingdom United States
Figure 11107: Tax paid as a percentage of GDP tax for the countries in which the
orchestras of the case studies are located.
The inclusion of this data was to made to place the source of operational funds shown in
Figure 6 in context. One would expect that in a high taxed country there would be more
government support of the arts and vice versus. In fact the higher tax rate in Italy aligns with
the increased provision of government support to SC. The contrasting lower tax rate in USA
is associated with the lowest rate of government funding. However if one considers
Australia, its tax rate is comparable to that of the USA, but government support of the MSO
is substantial. The UK has relatively high tax rates but government support of the LSO is low.
All in all, this data suggests that tax rates of a country are not predictive of possible
government support of orchestras. It is likely the specific ideologically influences
government policies; society expectations and political pressure may be prime
determinants. The role of these forces would be worthy of further study.
107 “Tax - Tax Revenue - OECD Data.”
63
Discussion
The development of the symphony orchestra commenced in the middle of the 18th century
and culminated in the modern form by the late 19th century. The symphony orchestra
remains today the corner-stone of classical music. It provides an unsurpassed capability of
expression for composers. Symphony orchestras are recognised as major contributors to the
cultural capacity of society, providing an important effect on the social development of
society. Music produced by symphony orchestras allows for the expression of cultural
values, brings people together, exposes people to innovative art and provide intellectual
enrichment. Together these have the capability of contributing to the development of an
innovative, engaged and knowledgeable society.
Symphony orchestras, since the start of the 20th century, have faced increased competition
for the time and money available by consumers for entertainment 108. Despite the increased
economic earning power of the working and middle classes, the development of mass
culture, such as sport, popular music and cinema, has drained audiences away from
symphony concerts. This has been aggravated in recent times by the alternative ways of
accessing music, which commenced with the development of broadcasting, disc recordings,
and progressed to high quality digital recording and streaming options.
Classic music is challenging and often does not have immediate appeal. Classic music has a
reputation of being intellectual and serious which also keeps potential audiences away.
However classical music offers a wide range of styles and experiences which could be
marketed to attract more audiences.
This study was undertaken to establish if certain cultural and historical factors,
organizational structure, management practises, revenue models, programming and
audience engagement strategies were effective in terms of sustaining the financial health of
a symphony and ensuring cultural relevance through artistic excellence and audience
engagement.
108 Baumol and Bowen, Performing arts.
64
The key findings of this work are presented in what follows.
A common trait of the orchestras studied was their amateur origins of the orchestra and
being initially managed by the musicians. Over time they evolved into professional
organizations. This required the implementation of formal management systems, in order to
administer to the increased complexity of the organization, manage revenue streams form
government and donors and develop or adopt procedures to reduce costs. Thus todays
professional orchestras have a traditional corporate structure comprising of the board
which defines the strategic direction of the organisation and monitors a diverse range of
external factors which could impact on the organisation. In addition there is the executive
management headed by the CEO, which addresses the operational issues, and the artistic
management headed by the artistic director, which is responsible for defining and executing
the programme.
However, within this general corporate structure, it has been shown that that the
organisational structure of orchestras can be classified as reflecting either a cooperative or
corporate model. In the former the focus is on financial management and outcome. In the
latter there is increased involvement of musicians into management decisions. As would be
expected, musicians provide a different perspective to various management issues and have
greater focus on artistic outcomes, when compared to business management professionals.
In practice orchestras fall somewhere within this spectrum and reflect adaption to local
political factors, the philanthropic environment and preferred management style of the
country. In this work it was found that the USA based New York Philharmonic (NYP) had the
most corporate structure. This relates to the need to have a very organised professional
system to encourage philanthropic donations. Italy’s Saint Cecelia (SC) orchestra also had a
very corporate structure possibly reflecting the bureaucratic and highly regulated nature of
government support to the arts in Italy. The Melbourne Symphony (MSO) from Australia
was in the middle of the two extremes. This reflects the balance between private and public
65
support for the orchestra and a pragmatic approach to management in Australia, and the
desire to balance financial control and musician engagement in the orchestra in order to
maximise artistic standards. The London Symphony orchestra maintains a system of
musician-orientated power. This reflects an internal philosophy of the orchestra to
maximize musician engagement
Even when an orchestra has a clear orientation to one of the two models, measures are
typically put in place, in the form of advisory committees or representatives on the board of
directors, to ensure collaboration between the artistic and management factions of the
organisation. From their foundation as cooperatively owned orchestras, each has changed
in stages and have moved further away from a pure cooperative to a corporate model with
a strong emphasis on financial management. With the increased reliance of orchestras
on financial aid from private and public sources it is inevitable that there should be an
increased corporate power. Considering the financial and audience engagement hurdles
faced by orchestras and classical music it is probable that this trend will continue.
Does choosing a corporate or cooperative management structure give any advantage to an

orchestra in providing long-term financial, managerial and personnel stability? In practice it
is best to combine traits of each into a hybrid management system that meets the
organisational requirements and is suited to the economic environment of the market.
Power dispersion amongst management, the musicians and stakeholders are an important
factor in effectively running an orchestra that functions smoothly. Social and psychological
imbalance occurs when one party has full power. In an orchestra this could result in
alienation and animosity, especially amongst the orchestra players. As the music is the
prime product of an orchestra, musician morale, contentment and retention are important
goals. Problems in this area can impact on business sustainability.
From the foundation the symphony orchestra to the present, each orchestra has move
through multiple power dynamics and management systems. Common for each is the
evolution from musician managed amateur groups to a corporate management system. The
evidence suggests that this is the preferred organisational structure, especially as the cost
economics of orchestra continued to rise and put more strain on these organisations.
66
However, it should not be forgotten that the core purpose of the orchestra is to in create an
artistic product and add to the cultural capital of society. The aim is to advance music and
generate new sound experiences. Often composers are ahead of their audience. Thus if
orchestras only play music which will attract audiences, this would be welcomed by the
corporate management, art and society would be the poorer for it. Clearly there needs to be
a balance between artistic and commercial agendas. Professional orchestra management is
needed to meet financial obligations, while artistic input is required to ensure continued
development and innovation in concert concepts and programming. The aim should be to
accommodate both the artistic and operational requirements of an orchestra.
This work clearly showed the importance of the board in orchestra organisations. Boards
can have considerable expertise in fund raising, public relations, communication, marketing
and stake-holder management. These can be utilised to address the challenges of the
orchestra. The possession of certain skills was a prerequisite for selection to the NYP board.
As a result, the NYP is very effective in being able to obtain private funding.
Adequate and ongoing sources of revenue is essential for the sustainability of any
organisation. When confronted with an imbalance between revenue and costs organisations
have the option of reducing costs by decreasing expenditure or passing on costs to the
consumer. In many organisations increased productivity as a result of changes in
management practices and technology, allows an increase in salaries. This has
consequences in sectors that have experienced low growth in labour productivity. This is
demonstrated by Baumol’s cost disease, where salaries rise despite no improvement in
labour productivity 109. It occurs because these industries have to compete for employees
who could get jobs in industries that have experience increased productivity. The original
study identifying this occurrence by Baumol and Bowen was done through an analysis of the
performing arts sector. They noted that although the same number of musicians required
to perform a piece has remained the same, the real wages for musicians and operational
staff has increased significantly since the 19th century.
109 Baumol and Bowen.
67
Orchestras confronted with Baumol’s cost disease and a limited capacity to pass on the full
cost of a music performance to the audience need to identify a means of establishing an
ongoing source of supplementary revenue. The analysis of the four orchestras in this study
identified for distinct revenue sources. Each approach had its advantage and disadvantage.
The SC orchestra received more than half (53.8%) of its annual revenue from government
agencies. Following the instillation of democratic government in Italy after the Second
World War, arts institutions were considered the responsibility of the state. This was
considered appropriate given the country’s high tax rate. At one stage the orchestra was run
directly as a government institution.
In direct contrast is the NYP. The NYP was originally founded independently by musicians.
From its early history and after the transition to a professional orchestra in 1909, the
orchestra has maintained its independence and reliant on private subsidy from philanthropy
and sponsorship, as a result of the minimal American government support of the arts.
The MSO has gone through number of managerial transitions in its history. A one stage it
was totally funded by the government. Today it continues to receive government support,
but it has an active programme to obtain support from philanthropic foundations and
sponsorship.
The LSO is a unique orchestra among those studied. While it was initially totally funded by
the government, when it was divested the musicians insisted on a cooperatively managed
orchestra with significant musician input into management decisions. Although the
orchestra receives some government support, it receives considerable philanthropic money,
but interestingly, the majority of income comes from the operational activities, that is ticket
sales, contact performances and recordings (59.1%).
It should be noted that all orchestras have Non-profit status which allows each to operate
with tax exemption. This is of considerable assistance to the orchestras. This can be viewed
as an added government subsidy.
68
Each orchestra has a different relationship to the relevant governing bodies. Each orchestra
operates independently, there is varied levels of government influence that still takes place.
There was a direct correlation between the amount of funding provided by the government
and the level to which government is able to impose itself on the orchestra’s power
structure. For SC a large amount of decision-making power still lay with government
agencies. Local, state and federal government made up one-third of the places on the board
of directors and a government appointed Auditor Supervising Board provided oversight of
orchestra spending.
The other orchestras who do not have this level of government dependency, have total
financial management autonomy, with the ability to end the year in a negative balance thus
demonstrating the higher flexibility in the use of funds. This capability is desirable if
considerable investment or expenditure has to be made in one year, but the returns will be
received later.
It could be argued that increased reliance on government funding could affect the artistic
freedom of orchestras. The research undertaken here does not support that cotention.
Although government may provide money, all of the orchestras are now separate from the
government and function as private non-profit organisations. In no cases are government
intimately involved in operational and artistic decisions. Even for the SC orchestra
government involvement is limited to government representation of one-third of the board.
It should be considered that the other board members, the CEO, the artistic director and the
musicians are key forces in an orchestra. Privatisation has been embraced by management
and musicians alike as it is seen to allow orchestras to operate with greater financial
freedom and make more progressive programming artistically positive choices.
It can be seen from the above that there are a number of sources of revenue that can be
exploited by an orchestra: government funding, private donations (philanthropy and
sponsorship) and operational earnings. Clearly all potential sources should be exploited. This
will require the formulation of key strategies and implementation skills by the management
69
of an orchestras. Personnel with formal communication skills would be essential in
achieving any defined strategy.
For ongoing cultural relevance and in order to be able to generate revenue from concert
performances, it is essential that orchestras have concert programmes and audience
engagement strategies. To achieve this, concerts must include music and provide an
audience experience that appeals to a wide demographic. The encouragement of
attendance to concerts of people beyond the current small demographic which has strong
appreciation and understanding of orchestra music is of significant importance.
One of the aims of this study was to identify any programming practices utilised by the
orchestras surveyed which were particularly effective in attracting audiences. Ideally it
would have been desirable to have access to detailed audience data. However, it was not
possible to obtain these. Thus qualitative data on descriptions of the nature of various
concert programmes of the orchestras and data for revenue earned from performances was
used.
Each orchestra typically had a range of concert programmes aimed at retaining and
attracting different types of audiences.
All orchestras present concert programming comprising a diverse mixture of musical works,
including those by modern and upcoming composers, as well historical pieces that are part
of the standard concert repertoire, which are appreciated and held in in high esteem by
regular concert goers. These concerts typically included famous conductors and soloists.
These are important factors that can attract an informed audience. Concerts with the focus
on popular well recognised classical pieces are also programmed.
Concerts aimed at attracting younger audiences are also presented. This can include playing
a blockbuster movie soundtrack during the live showing of the film. These events typically
have multiple performances and a lower than average ticket price. This is clearly important
if millennial and younger audiences are to be attracted. These concerts tend to be very
profitable as capacity audiences are obtained. Hiring of famous conductors or soloists for
70
these concerts is of low importance, as name recognition of classical performers is low
among non-regular attendees. This has the advantage that the cost of putting on a concert
is reduced. These concerts promote audience engagement and remove the idea that
orchestras and classical music are elitist entertainment. This is important for the ongoing
development of audiences. It is important that as many avenues of activity be taken by an
orchestra, to achieve exposure and to market the orchestra brand to as broad an audience
as possible. Other engagement activities include having concerts in more informal settings
such as public parks. These are usually free.
Educational activities are an important way where orchestras promote engagement and
develop new audiences. This can include providing pre-concert talks so that new audiences
understand the significance of the music that they are about to hear. Concerts for younger
audiences are also used, where they interact with musicians and get to explore the
capability of instruments and the expressive capability of the orchestra and musicians. Each
of the orchestras demonstrate a high level of commitment to delivering education
programs. There is a universal understanding that developing relationships with potential
audiences at a young age is a necessary to activity build and maintain audiences for the
future. It is priority for all of the orchestras and transcends differences in management,
funding structure, and the other points of differentiation between the orchestras.
What are these specific activities used by the orchestras studied to attract audiences?
The NYP provides a highly varied range of programs across many genres. This included the
performance of recognisable works, which would include the most notable soloists and
conductors from around the world. Concerts of broader appeal are also programmed
separately, including concerts for younger audience as well as movie and modern music
concerts. There is a clear desire to present highly experimental and avant-garde
performances. A 2018 Lunar new year concert, involved the incorporation of a match of
ping pong as a percussion instrument. This is clearly an example of the courage and
creativity in the artistic choice exhibited by the CEO and Artistic Director. For the NYP with
considerable financial reserves, there is considerable freedom to experiment with new
programming formats.
71
The MSO presents a diverse array of modern and Australian repertoire in addition to the
standard orchestral classical music. In 2017, 13% of programming were special concerts
such as ‘film set to live music’ and children-orientated concerts. This accounted for 38% of
ticketing revenue110.
A large part of annual concerts involves outreach activities involving touring to regional
areas within the Australian state of Victoria. These are achieved with the aid of Government
funding. These regional and metropolitan concerts outside of their main concert venue are
often be free and include informal settings suited to youth attendance. There is an evident
intention to present music of wider appeal in addition to the traditional classical repertoire,
and to engage with audiences with audiences in the rural parts of the state who do not have
ready access to concerts.
LSO programming maintained a diverse concert programming featuring regular

performances of the all most well know works. There is an evident push to regularly include
the works of eminent English composers regularly. A notable absence from the
programming is live film music. Overall concert programming and structure is very
traditional.
SC’s annual programming is divided between orchestral production and regular chamber
performances. Chamber concerts will include a rotation of orchestra members
accompanying prestigious soloists. The programming typically includes inclusion of well-
established Italian repertoire. Performances of works such as music from Leonard
Bernstein’s musical ‘West Side Story’, and John Adam’s ‘The Gospel according to the other
Mary’111 demonstrate a willingness to bring modern works to a wider audience. Family and
child orientated concerts, and an orchestra education program are important parts of the
organisation’s activities. This shows a commitment to the ongoing development new
orchestra attendees.
110“MSO Annual Report 2017, 5.”

111Accademia Nazionale di Santa Cecilia, “Stagione Sinfonica 2018-19,” 2018,
http://www.santacecilia.it/file_gallery/Stagione_Sinfonica_2018-19.pdf.
72
The power structure within an orchestra are a strong determinant of any artistic decisions
that can be put into action. The MSO, SC, and NYP clearly exhibit an audience engagement
orientation, through the regular presentation of educational, family or regular live-movie
concerts. This is consistent with the corporate structure adopted by these organisations and
the desire to profit from potential audiences, for example the existing fan base for film
soundtracks. In addition, they realize that you can introduce new people to orchestral music
and lay the foundations of a future audience. In contrast the LSO has never included
accompaniment to live-film as part of their programming. In a cooperative system where
programming choices are made by the musicians, the use of the orchestra as secondary to a
film is not seen as appealing despite making economic sense. The LSO’s decision reflects the
priority of the artistic agenda in cooperative management. Instead of concerts that could
serve to increase the orchestra’s wider appeal, the preference is to play challenging works
of high artistic merit a more conventional array of classical repertoire.
With respect to quantitative data to allow assessment of the relevant success of the
different programming strategies of the different orchestra, audience data is required. As
has been mentioned it was not possible to find this. The MSO earns a considerable
proportion of its revenue from film performances. The evidence suggests that its
engagement programmes, include the presentation of film/music events accounts for a
significant proportion of this. The LSO also earns a considerable proportion of its revenue
from ticket sales. However, it does not engage in film/music events. It is likely that its focus
on high artistic standards, using renowned conductors and soloists allows it to attract its
audience. The fact that London is a frequently visited tourist city, may mean that the LSO
attracts a steady stream of music tourists because of its prestige. Interestingly the
proportion of revenue earned by the NYP from concerts is relatively small when compared
to the MSO and LSO – although the absolute value is high. The fact that the NYP has a
considerable amount of private donation revenue may skew the results. It would be
interesting to know what the price of tickets is to NYP concerts. It could be possible that the
NYP maintains affordable ticket prices in order to attract concert goers.
73
Overall the results show that orchestras recognise the differing nature of the potential
audience population and endeavour to provide concerts that would suit the individual
requirements. The orchestras play a considerable role in music education and bring music to
school children. This serves to improve the cultural capital of the society and serves to
provide future audiences.
Conclusion
Based on the results of the findings reported in this thesis it is possible to reach a conclusion
on what factors are best serve to ensure the ongoing viability of a professional orchestra.
For a modern orchestra the best management system is one that leans to a corporate
model. The most pressing challenge for an orchestra is revenue. A most lucrative source of
income is from sponsorship and philanthropy. The best way to address this need is through
the appointment of external board members with connections and professional expertise
that can best aid in these fundraising efforts. The board can also provide professional
expertise in a number of areas such as stake-holder management, marketing and
communication, which to build and promote the reputation of the orchestra. The board
should endeavour to appoint a capable CEO to lead operational activities
It should be that the music reputation of the orchestra is an important marketing asset.
Thus the orchestra should endeavour to appoint a renowned Artistic Director and attract
the best musicians.
It is important for there to be a good relation between management and the musicians.
Thus an official system of musician representation should also exist. This could take the
form of an elected member represented to the board of directors or the creation of a
musician lead advisory council.
74
Operational income and private philanthropy should be prioritised as the main sources of
income. Income through government agencies should be utilised if that option is available
However this is not always reliable and overreliance on this form of revenue can leave the
orchestra open to government interference. This could disrupt the corporate management
model and have adverse effects on the music and performance quality.
The programming and management of concerts must be varied so as to attract a diverse

audience. The core concert repertoire should remain orchestral music extending from the
baroque to the modern era.
Additional repertoire should include works of popular music that are contemporary or is
music that the general audience can associate with.
Programming should also incorporate, more experimental forms of music and provide novel
concert experiences. This would to attract new audiences and retain dedicated concert
goers whose engagement could wain through lack of diversity.
The overall concert experience must be made more casual by removing the stereotype that
it is a posh activity for a cultural elite. It must be advertised and marketed as recreational
activity that can be a valid choice amongst comparable entertainment options of going to
the cinema, football match or popular music concerts
These proposed managerial and artistic decisions derived from the research for this thesis
represents arguably, an effective means of ensuring the ongoing viability of orchestras and
their continued cultural contribution.
75
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Management and Structure of the Symphony Orchestra: A professional

Thesis · December 2018

The user has requested enhancement of the downloaded file.

Management and Structure of the Symphony

Tesi di Laurea di: Daniel BERTOLINI

Research involved analysis of annual reporting, financial documents and historical

All orchestras presented diverse systems of organisational management, as well as differing

This research examined the organisation and management practices of professional

My master’s coursework and related readings regarding human psychology, demographic

Application of modern management practices to music

common to theater, opera, music and dance, 1966.

(New Haven, Conn.: Yale University Press, 2012).

- Specific aspects of orchestra organization and management

In many aspects the organisational structure of arts organisations, including orchestras,

The underlying ownership may influence the status and performance

Figure 3: Visual of the stability issues with polarised management models 19

The concept of competing agendas in orchestra management is discussed further in the

- Programming and operations

(New Haven, Conn.: Yale University Press, 2012).

Taylor & Francis Group, 2010).

- Aims of this thesis

43O’Reilly and Kerrigan, 60-61.

Professional orchestra predominantly operate in markets in which they hold either

In developing my definition of a professional orchestra prior to the selection process, I

We studied only professional symphony orchestras, which we defined as ensembles

44 “Orchestra | Definition of Orchestra in English by Oxford Dictionaries,” Oxford Dictionaries | English,

Musical Quarterly 80, no. 2 (1996): 194–219.

The orchestra’s chosen for this study are;

Amendments of the research plan

The focus on a small number of orchestras allowed a detailed analysis of organizational

- Diversity of place and social, political and economic environments

- Detailed organisational comparison

November 16, 2018, https://www.xe.com/.

o Part 1 – Individual reporting

- Public and Government support

- Engagement Artistic activities

Part 2 – Key organisational and financial data of the case-study orchestras_

Part 1 - Orchestra overview

New York Philharmonic.

Management 5, no. 3 (2003): 4–11.

Engagement and Artistic activities

The wide variety of performance style extending from traditional symphonies to

64 New York Philharmonic.

Journal of Arts and Cultural Management 2, no. 2 (June 12, 2008),

L. No. Corporations Act 2001, ACN 078 925 658) (2007),

76 Melbourne Symphony Orchestra, Constitution of MELBOURNE SYMPHONY ORCHESTRA PTY LIMITED.

The sources of revenue of the MSO are shown in Table 2:

Engagement and artistic activities

77 “MSO Annual Report 2017, 71.”

81“MSO Annual Report 2017, 34.”

87“London Symphony Orchestra - Constitution,” accessed November 13, 2018,

Engagement and Artistic activities

31 July 2017, 23.”

31 July 2017, 4.”

93 “LSO Discovery at 25,” accessed September 6, 2018,

95, no. 2 (May 1, 2014): 251–72, https://doi.org/10.1093/ml/gcu021.

Significant management changes occurred as the result of a national overall on the

September 13, 2018, http://www.santacecilia.it/en/chi_siamo/orchestra_e_coro/orchestra.html.

98 Accademia di Santa Cecilia, “Integrated Balance Sheet 2016, 4.”

Engagement and Artistic Activities

Repertoire is made up overwhelmingly by symphonic and concerto works, often involving

In addition, the orchestra also has programming dedicated to young-adult audiences,