Sustainability | aspirations and actions
Katharine Ford
laughing with Ronald Grant, Co-founder of The Cinema Museum
Photo: Julie Reynolds |
I specialise in sustainable business models and
practices and in this guise I was asked by The Cinema Museum in Lambeth to help
them review their business model and buy their current home from the South
London & Maudsley NHS Trust. I`d
been prepared to have to win hearts and minds on the wider sustainability
agenda but was stunned how much sustainability was already reflected in The
Cinema Museum’s aspirations and actions.
At the time I wondered if this was rare museum practice but increasingly
I am seeing that it is not!
Let’s consider financial sustainability. A topical issue in these dire times, where
competition for limited resources is high and trying to find innovative ways of
working better than ever and at a fraction of the cost is nearly everyone’s
focus. One of the solutions offered to
this problem is to `become a social enterprise’ but I get annoyed when museums are
invited to think about this because most of them are already operating a social
enterprise business model. And really well. Let’s
look at how and why.
Firstly,
what is ‘social enterprise’?
The old definition of social enterprise was created
in early 2001 by the Department of Trade & Industry and was based on the
notion that a social enterprise was a socially beneficial organisation that
derived in excess of 70% of its income from trading. The charitable/voluntary
sector lobbied against this definition because it excluded and denied many
organisations access to the large funding pools and support available to ‘social
enterprises’ at the time. This lobbying
heralded a decade of ongoing renegotiation of the definition of ‘social
enterprise’. The lobbying organisation’s purpose was to gain access to funding
that was ring fenced for social enterprises and the politician’s purpose was to
extricate themselves from the hot water their ever changing definitions kept
dipping them into. However, the leaders of the social enterprise movement’s
purpose was to direct all parties towards consensus around an accurate definition
that worked in practice and was not ‘ever-changing’. It was and still is a
political minefield and the debate trundles along albeit around a much looser
definition.
There
is nothing new about social enterprise. Essentially
social enterprises are organisations that engage in some commercial activity in
the way in which they deliver social, environmental, educational or cultural
benefit. The profits of which are used
to increase the level of benefit the organisation delivers rather than retained
for personal gain.
So,
how is a museum a ‘social enterprise’?
Clearly the museum complies with the above
definition. The evidence on the ground is powerful; museums demonstrate an
impressive array of profitable income streams and cost saving measures that most
‘non-for-profit organisations’ can only dream of. Museums deliver on
government contracts and generate income from shops, cafes, educational
programmes, image loans, membership, hire of facilities and film shoots as well
as being expert fundraisers. Museums are also expert in running on
a shoe-string, working with volunteers, and collaborative working; they understand
the environmental impacts of their activities and have done pioneering work on
energy saving.
Museums have a strong sense of why they exist. They adapt to create activities and income
streams that match their aims and comply with the core values of their public mission
statement. The social capital that emerges from their work and the social
benefit that they deliver epitomises financial, social and environmental
sustainability. Many museums embrace sustainability in its wider context by working
with local supply chains and developing environmental practices that parallel
their strong ethical culture Museums engage warmly and well with the human
spirit and deliver a finely balanced combination of financial, social,
educational and cultural profits. This is complex product development and social
enterprise brand management at its best. Indeed, it is clear that museums’
business models are characterised by the type of innovation, diversity and
robustness that ensures financial sustainability and effective ‘social
responsibility’.
Museums
as a business model of well-being and sustainability
At a time when people no longer trust high street
banks, have lost faith with hollow commercial brands and are tiring of thin,
poor quality public services a transactional gap is opening up between people`s
time and money and what they reasonably and rightly want in return. People don`t have this consumer frustration
with the museum sector. Museums are
places where people find quality and a depth of experience where they are
encouraged, respected and challenged. The museum experience is one of well-being
and calm enrichment. It is unique,
improving and heart warming. It offers value
for money. Because of these factors the sector is trusted and its consumers confer
respectability around its products, services and wider offerings. The public’s affection towards museums is an extraordinary
business phenomenon and one that few sectors enjoy with their customers.
The museum’s business model is based on
sustainability and is a classic example of the successful early adoption of the 'social
enterprise model'. So, my protective hackles rise when I hear people asking a museum if
they have ‘thought about becoming a social enterprise’. Museums are amongst the earliest pioneers! Indeed,
if I were advising the museums sector at the moment I might be suggesting that
they add 'social
enterprise business advice' to their range of products and services.
Tips
and hints
Learn the language of social enterprise so that you
can enter the debate, access support offered to social enterprises and address
business-planning questions. You will
get more value from advisors, consultants and board members if you can clearly
articulate your business model and its relationship with sustainability and
social enterprise.
Don’t be alarmed by terms that you may be
unfamiliar with; they are often names for activities or models that you are
already implementing.
Share
offer
Are you the CEO of a museum? Do you have any questions on the social enterprise
business model and how it links to sustainability and museums? Please see my
offer on Share London and I will be happy to answer any of your questions.
Author | LMG Member Katharine Ford, GK Partners and
consultant to The Cinema Museum, Lambeth.
With thanks to the Cinema Museum and Katharine Ford for in kind support by hosting LMG events.
With thanks to the Cinema Museum and Katharine Ford for in kind support by hosting LMG events.