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?
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