Run your business like a symphony orchestra concert, except...

In a symphony orchestra concert, the players have individually prepared for the collective experience of accomplishing the musical goal of excellence. They desire to perform the required music to the best of their ability and to interpret the music to please the conductor who works to adhere to the composer's music. The performers are unswervingly committed to exceptional performance and come together for the purpose of accomplishing a musical goal. They are willing to follow the conductor's leadership and accept instruction and correction from the conductor. Although the conductor is governed, to an extent, by a board, he or she has absolute power over the players and the music. If the individual musicians produce high quality individually, then the music comes together collectively under the guidance of the conductor, resulting in a high quality performance. Economics aside, many people with specialized skills work collectively under the guidance of one person to produce a quality product that was initially designed by someone else. This is an excellent business model, except...it is not efficient.

Unlike a business whose goals are profitability, the symphony orchestra is concerned with emotional expression and artistic excellence. Are these goals incompatible with profitability? Yes, due to the personnel expense problem. Symphony orchestras are financially inefficient and cannot function on ticket sales without donors, grants, and sponsorships. Customers enjoy the product and are willing to pay for the experience, but the revenue from the ticket paying customers does not support the expenses to produce the event. No business can operate in this way. Revenue must outpace expenses and dependence on donations is not a workable solution, although in the non-profit sector it is a reality. Advertising revenue, however, is a strong business model but difficult in certain kinds of limited markets with narrow demographic customers.

Given that symphony orchestras serve a public good, they are generally non-profit enterprises relying on goodwill for their sustenance. But for-profit businesses can benefit from the principles that make symphony orchestras special and unique...the never-ending quest for artistic perfection combined with the power of emotional expression. Another way to look at this is to have a relentless goal of making the music appealing to the listeners, for those in attendance who are customers of the orchestra.

Regardless of whether the business makes hamburgers, tacos, computers, clothes, cars, toys, perfume, or virtually any item or service such as mowing the lawn, building a skyscraper, cleaning houses, pet grooming, or preparing taxes, it must have customers and those customers must be pleased with what they receive for their money. Returning customers and new customers encourage sponsorships and advertising. This makes excellence and quality the primary goal of a symphony orchestra and one that it hopes brings in the customers.

Aside from the problem of personnel expenses, a symphony orchestra embodies the ideal business goals by striving for an experience that is greater than the cost. If the orchestra can figure out how to provide the product without the personnel costs, it will have the solved the business goals for profitability as a result of excellence. What would happen if the players were paid a percentage of the ticket sales? Would they desire a voice in programming, in collective preparation, in management, advertising? Likely, yes. Would such an approach be healthy for the organization or would it augur against all that it represents?

Meals on Wheels and Dogfood

Once again helping my wife deliver meals on wheels, we arrived at the main location to pick up the meals for the clients. Quite a system organized by type of food, dietary restrictions and preferences, all designed to serve people unable to provide for themselves. There are different reasons for the need including but not limited to poverty, health problems, old age, general weaknesses, and, for some, most likely poor decisions. The meals are not free but they are substantially reduced. Most of the funding comes from state support through grants, gifts, donations, and local sponsorships. The program is remarkably successful, serious, and serves a public good by providing meals for those who are unable to provide for themselves. It is totally dependent on volunteers, people who give of their time and energy to deliver meals to the indigent.

Delivering meals provides a welcome relief from the stresses of work and, yes, life. It is an opportunity to do the right thing, to serve those less fortunate, to put aside one's disappointments and make sacrifices for others. Just when your self-reflection reaches the limits of emotional stability, then you reach out to others, put aside your selfishness and become benevolent, charitable, giving. We drive around the neighborhood of small houses most of which are slightly more than shacks, knocking on doors and handing people their lunch. Most are very appreciative and most seem eager for the balanced meal.

But today we had a different experience. We delivered dog food to one house. Not sure how to react to this. Tax dollars, donations, charitable contributions and volunteers came together to deliver dog food to a house. Not a lot, just one fairly large bag. A large plaque stands in the main hall where we pick up the food to deliver. And on this plaque are the names of the founders of Meals on Wheels and the many initial contributors. Someone or several people had a dream of providing meals for those in need in the community and that dream was fulfilled in a glorious charitable organization making a positive difference in the lives of those who cannot take care of themselves. Did the founders envision providing meals for dogs?

Dogs were domesticated over 30,000 years ago and continue to be ideal pets for millions of households. No one can resist a puppy and dogs are trained to help with emotional support, comfort, protection, prevention of crime, care for the elderly, security, and many other highly beneficial activities. For someone alone, a dog provides companionship and even purpose while giving someone needed emotional support. Of course dogs can eat people food and anyone is welcome to share food with a dog, but the preferred food is designed for a dog and helps with keeping teeth clean and a good digestion system.

Yet even as I write these words, I question our tax dollars supporting dogs who support the indigent. When we deliver meals, inevitably the door opens to loud barking and someone fighting to keep the dog inside. Many times the home has a terrible odor and a quick glance shows poor hygiene, clutter, and general messiness. This is not always true, of course, and sometimes the dog is mannerly, calm, and seems to be a part of the home. But it is not unusual to find two or three large dogs inside a small home wreaking havoc on the household. Owners frequently correct the behaviors with a "stop it Bucky" or "settle down, Ranger" or even something more conversational such as, "Ginger, it's okay, they are just delivering our food."

Risking great criticism from pet owners, I have to question the practice of providing food through a charitable organization for dogs, and I further question the practice of keeping pets in a household that cannot afford even the basic necessities. Does the pet inadvertently contribute to the perpetuation of poverty? Maybe. Yes, it is their choice and for many it is a good choice. For others, however, it is not a good decision to keep a pet and our providing dog food seems to be enabling what may not ultimately be beneficial.

A Great Thanksgiving

Deciding to have a mini-vacation in Ruidoso, we got up early on Thanksgiving day and drove the 6 hours plus to Ruidoso, New Mexico. A beautiful region with pine trees, deer, mountain air, and plenty of hiking and activities, we always enjoy our time in Ruidoso. Arriving in the afternoon, we settled into the cabin owned and operated by Hardin-Simmons University. Although we brought snacks for supper, we also planned to run to a grocery store for something quick, knowing most restaurants would be closed for Thanksgiving. After buying a couple of frozen dinners to heat up in the microwave, we drove around the small town as the sun gave way to the darkness of the evening. Seeing my favorite coffee shop/restaurant called Sacred Grounds with cars in the parking lot, I mentioned that we might pick up something sweet to eat after our frozen dinners.

Heading up to the front door, someone outside said the open door was around the side. Slightly confused but still wanting a dessert of some kind, we walked into the back room to find a small group of people watching a football game on a large screen against the wall. Neither welcoming nor hostile, the people were focused on the game and paid little heed to us, almost as though our presence were normal and expected. Warm and comfortable, we settled down and watched the game with the people whom we did not know. After a few minutes, however, and feeling awkward since nobody was eating and no waiter came to take our order, I decided we should quietly leave during the next commercial. But as we got up to leave, a man came out and got everyone's attention. He said the food would be ready at the end of the game and the buffet would be in one room with the desserts in another. He then announced before we eat, he would play a recording of a poem to serve as our blessing.

The feeling of awkwardness increased, and I decided to go visit with the man as he made his way back to the kitchen. He said they were not officially open but had invited patrons to bring food for a Thanksgiving dinner. The owners had made a ham, turkey, and several casseroles in addition to what others brought. I thanked him but told him we were not residents and had unintentionally walked into the private gathering. He looked at me with direct but friendly eyes and said, "We want you to join us for this meal." I gave several reasons why it would not be right for us to stay, but he countered by insisting we be a part of the group. The game soon ended, we listened to a beautiful poem, and people stood up to get the food and enjoy the feast! Turkey, Ham, green bean casseroles, salads, cranberries, Yams, dressing, and rolls adorned the banquet hall (actually a small room with a large table!).

We ate with great enjoyment and began conversing with the people. Soon we felt a part of the group, and I realized the joy of Thanksgiving was not the food but the fellowship. The evening was special and filled with unusual love that can only be found among people who cast no judgment but, instead, offer their time and food to strangers. We walked in as strangers, soon became guests, and, by the end, we were part of their family. Leaving to return to our cabin, our bodies were full of great food and our souls were full of the joy that comes from the gift of openness and benevolence.

What a treat and what a great place. Ruidoso may have gained a new future resident! Sacred Grounds is sacred because of its love of strangers, of which we are no longer.

Increasing customers in higher education

Every business needs customers and higher education is no exception. Over the years I have seen a few businesses that did not appear to have consistent customers and had no interest in the few customers present. These businesses, however, were not selling anything and had not real need for additional customers to improve their business. I can think of 4 of these and all were museums that operated from an endowment. The earnings on the endowment paid for the utility costs, staffing, facilities, taxes, and any development. While it was a pleasure to experience these museums and exhibits, I also wondered if the lack of a drive for profits might contribute to complacency and indifference in the product from both the managers and the customers. Maybe not, but the concern is real.

The need for customers can drive a business or an institution forward and provide impetus for development and improvement of the product. Endowments, although sought after and necessary for non-profit organizations, can impede creativity by disincentivizing development and progress. Ironically, the same is true of restricted donations that insist on funds being used in specific ways. True, when money is working, it can free human capital to work on other aspects of the business. But a reliance on funds supporting funds without progress are at risk of losing customers and product development.

The answer for more customers is not improved marketing methods, not that such endeavors are without merit. Higher education, as an excessively complex institution, markets its quality of education, of student life, of degree programs, athletics, facilities, employment statistics, faculty to student ratios, completion rates, student experiences, and institutional reputation. Schools use recruiters, websites, brochures, digital resources, media, posters, calls, visits, and personal contacts to market its product. All these and more are beneficial and contribute to continued and new customers for the institution.

But in the end, marketing efforts aside, customer (students) growth must occur for the business (university) to thrive. Regardless of the marketing efforts, a business needs paying customers to remain in the business and such is true of higher education. Students, unless they have an income producing trust fund or have inherited significant wealth, have a driving need for a life filled with meaning and enough income to meet their needs and fulfill their intended professional goals.

The concern for universities is to provide a learning environment that meets the immediate needs of an education that includes experiences, entertainment, learning, excitement, safety, connections, life skills, and certification of the process. Students (parents) are willing to pay for this product in the hopes of a return on their investment. While having a college degree does help income level over a lifetime of earnings, there are many choices for how and where to pursue that degree. Students and parents have to wrestle various concepts while considering what is best for the student. Keeping in mind that a degree is a big investment of time and money, the customer of the institution must examine all facets of the institution while thinking long-term for the return on the investment.

Managers of small and large businesses or educational institutions constantly analyze expenditures to determine which are necessary for operational improvement, marketing needs, or quality improvement. Decisions to keep customers happy and returning are the essence of financial and operational management. The need for customers makes higher education no different from a business. Where the difference occurs is in the delivery of the product.