Regional Theatre of the Year 2010

Northampton Theatres Trust Business Plan 2011 – 2014

Contents Page

5 Executive Summary

6 Introduction

9 Aims

14 Securing resources and developing the organisation

16 Financial review

18 Monitoring and evaluation

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Our Vision

To be a national, regional and local centre for creativity, entertainment and innovation.

Our Charitable Objectives

The Trust’s objectives are to provide a cultural experience which will enlighten, entertain, educate and stimulate appreciation of the arts for the public at large, and in particular the residents of Northampton and the East Midlands.

Our Values

CREATIVITY: We put creativity at the heart of everything we do

COLLABORATION: We believe productive collaboration is the foundation for achieving excellence in all aspects of our work

INCLUSION: We ensure that all of our staff, volunteers, trustees and our communities are involved and represented

AMBITION: We are ambitious for the future of our organisation, thriving on change and embracing new challenges

Our Aims

We will achieve our vision through the delivery of five core aims, which are:

• Hosting a mainstream, quality programme that makes our audiences and staff proud

• Improving the customer experience that we offer to encourage more frequent audience attendance

• Increasing engagement with young people, families and the wider community

• Producing challenging and surprising theatre that develops the art form and the artists who make it

• Providing strategic leadership for the cultural sector locally, regionally and nationally

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Executive Summary

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BACkgROUNdFollowing extensive consultation and building on our Vision, Charitable Objectives, Values and Aims, the Business Plan has been developed to cover our work for the next three years and to give an indication of our direction for the longer-term.

Our aim in the Plan is to increase our impact. The intention is not to grow for growth’s sake but to concentrate our continual development in areas where we can make most impact. We anticipate that our growth will lead to greater stability and resilience for the Charity as well as for the region’s performing arts sector.

CURRENT CONTExT In 2011, Royal & Derngate was awarded Regional Theatre of the Year in the inaugural Stage 100 Awards. Royal & Derngate currently welcomes over 300,000 attendees and participants to our Northampton base. Refurbished in 2006, the complex consists of a 1,200-seat multi-purpose auditorium that presents a mixed programme of touring shows and artists all year round (Derngate), a 450-seat Victorian playhouse that hosts our award-winning in-house produced theatre productions that form our Made in Northampton series (Royal), and a 120-capacity studio dedicated to our work for children and young people (Underground). Increasingly, we work with commercial co-producers to tour our in-house productions nationally and within the last 12 months have seen productions open at the National Theatre and the West End.

Political During the last three years, we have been successful at building relationships, based on sound business partnerships, with our colleagues in the public sector. We receive positive support from the Executive at Arts Council England, Northampton Borough Council and Northamptonshire County Council and have benefitted greatly from the advocacy of the political representatives on our Board. We appreciate that spending cuts, driven by a new coalition national government, are making a severe impact on our partners. In the future we will need to consider how we better serve their agendas, perhaps by delivering directly on their behalf.

Economic Since April 2010, Royal & Derngate receives management services from Northamptonshire Arts Management Trust (NAMT), an independent charity that was developed by the senior management team of Royal & Derngate to deliver cost effective management services for the cultural sector in the County. NAMT also provides services for the new charity operating the theatre The Core at Corby Cube.

We continue to rigorously monitor and communicate our economic impact on the town and region. Northampton is fairing well during the recession, with unemployment levels stabilising in comparison to the rest of the County and region. There are particular concerns for the economic position facing Corby and the north of the County, a fact that the organisation needs to be mindful of given the special relationship that has been established between Royal & Derngate and Corby recently.

Introduction

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Northampton town centre is subject to many regeneration plans, which could have a transformative impact on the County town within the next 15 years. Northampton is the 4th largest town in the UK, with discussions about city-status and Northampton Borough Council becoming a unitary authority ongoing. Vital work is being done to further establish the County as Motor Sports Valley, building a new economic environment based on the high-tech engineering sector. Northampton is centrally located with good rail and road links to the rest of the UK.

The Charity continues to wrestle with the challenge of a final salary pension provision but has made good efforts to improve the working conditions of all employees, although the arts remain poorly paid with many staff in receipt of minimum wage. Our reserves position is a healthy one, but given the interest rate situation, our cash is not working as hard as it could do.

We recognise that there will be increased competition for funding from Trusts and Foundations and that central government is talking about the importance of developing relationships with philanthropists in order to secure its Big Society agenda.

Social The projected population explosion for the County has stalled during the last 18 months, but short term migration remains prominent. There have been no major changes in the cultural mix of the town, but there are obvious signs of an ageing population and a widening class divide. There is a perception that crime rates are increasing in the town, with anti-social behaviour considered a major deterrent for town centre visitors. Graduate retention in the town is low, although not thought to be worse than similar UK towns. The town centre has few professional offices, with shift-working and night-time working thought to be more typical than other towns in the region.

Nationally there are signs that political discontent will develop over the coming year, in response to central government austerity measures.

Technological The demise of theatre and live performance has long been heralded, but we remain confident that audiences continue to seek “liveness”. As a sector we are not strong at communicating the value of the live experience. However, during the last three years we have benefitted considerably from the TV profile of stand-up comedy, with new, younger audiences seeking the live experience with us.

Northamptonshire is due to have a high speed broadband upgrade which will potentially encourage more people to lead their lives in virtual communities. Through our social media strategy we hope to encourage them to be part of a real one.

Technology has changed customer behaviour as they seek to give instant feedback, want instant results and plan less.

Environmental The last three years have seen a considerable shift in attitude and action to ensure we buy locally, reduce energy consumption and make our town and County safe places to live. Our sector makes a significant and negative ecological impact but is taking action to mitigate against this. Long-term we face the possibility of dramatically shifting weather patterns, with shorter summers and harsher winters expected. Taxation policies will adjust to incentivise sustainability.

Legal As we respond to central government initiatives we face a more legalistic future, with commissioning and Service Level Agreements being more commonplace. We anticipate a strengthening of the unions and increased human rights and environmental legislation.

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IdENTIfIEd ISSUESThis is a period of significant change for our society. The need for our business to evolve becomes paramount, but equally important is the role we should play in shaping the changes ahead. We need to be clear about what changes we want to see and how we can best contribute to making this happen. This plan, as well as the actions that will result, is intended to bring this clarity.

During the development of the Business Plan we undertook extensive external and internal consultation. This raised a number of areas which we will address over the next three years, including:

• Revisiting our financial and business model to ensure we are more resilient

• Revising the programming approach to achieve a financially viable and consistent quality programme across the produced and presented work

• Animating the building all year

• Ensuring our facilities are suitable for our ambition

• Knowing our audiences and building stronger relationships with them

• Ensuring recognition for our work is as strong in Northamptonshire as beyond

• Confirming our role as a significant producer

• Shouting more about our achievements in all areas

• Sharing the engagement activity that already happens more overtly

• Reviewing the role we can play locally and regionally as our public stakeholders deal with a period of significant change

• Being aware of the evolving funding priorities of our stakeholders

Purpose of the plan This plan will be used to develop a series of strategies and action plans that will enable us to achieve the aims articulated here. Each of the three years will have an over-arching priority theme in order to enable us to continue on the trajectory toward an enhanced and bigger role for the organisation.

Year 1: Income generation, consolidation, investment and developing our assets. In the short-term we need to generate an increased spend of £1.50 per person based on 2010/11 attendances (to reduce impact of end of Sustain funding) as well as deliver our sales targets in order to balance budgets and deliver our current vision.

Year 2: Transition and a new working model. In the medium-term we need to have planned all significant changes and have secured necessary resources to deliver our vision. This will rely on us being entrepreneurial.

Year 3: Building our role at the centre of the development of theatre in our region and beyond. We should begin to see the outcome of our growth plans.

In the following pages, we give an overview of our plans under each of our five aims over the next three years:

• Hosting a mainstream, quality programme that makes our audiences and staff proud

• Improving the customer experience that we offer to encourage more frequent audience attendance

• Increasing engagement by young people, families and the wider community

• Producing challenging and surprising theatre that develops the art form and the artists who make it

• Providing strategic leadership for the cultural sector locally, regionally and nationally

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We have been successful at maintaining our position as an independent venue and concert hall to deliver a broad programme in the Derngate auditorium. However, following independent research, we have identified that we currently present too many events, with audience and staff expectations occasionally being unfulfilled. Our current programming model accommodates some events that neither contribute artistically nor financially to the extent we should expect.

In achieving this aim we will have:

• Achieved our sales targets

• Made better use of our marketing expertise and resources

• Received positive feedback from our audiences

• Ensured the programming team see more work

• Diversified the presented programme in both auditoria

• Developed a balanced programme which allows us to promote classical music and dance

• Ensured that promoters and bookers call us first as a venue of choice

• Established preferred suppliers

• Put in place the right deals and been unafraid to say “no”

AIM ONE: Hosting a mainstream, quality programme that makes our audiences and staff proud

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We have been successful at reaching a very large proportion of the potential audiences, but our research has indicated that improved sales performance is dependent on us further encouraging greater loyalty from our attendees.

In achieving this aim we will have:

• Created an atmosphere where customers feel valued, wanted and welcomed

• Listened and responded to feedback from our customers

• Improved the environment and the building and developed our catering offer

• Implemented plans to make the building more family friendly

• Ensured that all our customers have a quality experience from their first encounter onwards

• Understood the barriers to attendance

• Identified the most appropriate pricing model

• Implemented a considered and appropriate marketing strategy and digital strategy

• Targeted the outer areas of catchment

• Reinvigorated our group bookings

• Developed our use of volunteers

• Developed our customer services assistant training and improved retention

• Built our ancillary sales

• Assessed feasibility of developing a microplex cinema facility

• Made a significant economic impact on the region

AIM TWO: Improving the customer experience that we offer to encourage more frequent audience attendance

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We engage with over 2,000 young people a month, but have outgrown the facilities within the current building. The profile of this area of our business amongst potential participants and funders remains low, with very little recognition of the extent of its impact. We are keen to review the content of the programme of activity, expecting that it could appeal to a broader spectrum of our community. We have ambition to further develop the work that we undertake with schools. The potential to grow this area of work is as huge as the resource is limited.

In achieving this aim we will have:

• Developed the audiences and artists of the future

• Created an atmosphere that supports ideas and creativity

• Supported the development of a more mobilised and thoughtful group of young people i.e. developed young decision makers and influencers

• Identified key community groups and prioritised programmes of activity

• Contributed formally to the education system including HE/FE

• Assisted schools in delivering their agendas

• Encouraged more boys to engage with the arts

• Contributed to community cohesion in Northampton

• Developed activity that is so successful it self-advocates and has a strong identity

• Contributed to the cultural development of the County

• Developed a new facility (The Third Space) to house increased activity and provide a different point of engagement

• Produced new theatre works specifically for children and young people

AIM THREE: Increasing engagement with young people, families and the wider community

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We have been successful at regularly commissioning and producing new work, as well as producing more established and popular titles in an innovative manner. However, we have concerns that our success is not sustainable without a properly embedded research and development programme eventually housed in a new building (The Third Space) that contributes to the development of theatre nationally.

In achieving this aim we will have:

• Continued to produce highly acclaimed theatre productions, Made in Northampton

• Regularly produced musical theatre

• Exploited our touring product and co-production opportunities

• Being entrepreneurial and taking advantage of commercial opportunities

• Resourced and established a programme of research and development

• Structured a programme for artist development

• Worked with emerging artists and theatre companies, enabling them to move to the mid-scale

• Ensured we are at the forefront of mid-scale musical theatre development, establishing Royal & Derngate as a sector leader

• Provided a wide range of entry points to the organisation for artists

• Further explored cross-artform work in a development context and on our stages

• Developed our audiences to appreciate and regularly attend a wide range of surprising and diverse work

• Developed work in alternative and non-theatre spaces, including outdoors

• Revised the production workshop facilities

AIM fOUR:Producing challenging and surprising theatre that develops the art form and the artists who make it

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The cultural infrastructure in the County is vulnerable. Royal & Derngate is the highest profile of all the organisations and takes its role as an advocate and broker seriously. We have already commenced work in this area, by initiating the Strategic Arts Network and by developing the NAMT model for shared services. We will also build upon our recent national acclaim to engage with the sector on a national level, developing best practice and creative partnerships.

In achieving this aim we will have:

• Created a more stable and resilient cultural sector in the region

• Ensured that Royal & Derngate has a presence in the key networks and is central to conversations about the development of the town and the County

• Re-energised and reshaped the Strategic Arts Network

• Capitalised on the opportunities the Northamptonshire Arts Management Trust provides

• Proactively sought partners with whom to share our resources and experiences

• Been recognised for developing a national model for creative and business innovation

• Developed the Made in Northampton brand

* Demonstrated that a healthy cultural sector is one that actively benefits our growing county

AIM fIVE:Providing strategic leadership for the cultural sector locally, regionally and nationally

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To be able to deliver our aims over the next three years, we need to continue to increase our income, investment and support, and to develop our staff, Board and volunteers.

Securing Resources

By year 3 of the plan (2013/14) our key income goals are:

• For income to reach £9.5million – representing average growth of 11% throughout the period

• For trading income (ticket sales, bars, café, and merchandise) to reach £7.5million – average growth of 6%, with trading contribution to reach £1.4million; partly achieved through improved ticket sales, increased touring, and expanding our bars and café offer

• For Grant Income to reach £1.9million – representing average growth of 5%

• For Development income to reach £204,000 – representing average growth of 3%

• Maintaining tight control over costs, and benefitting from alliance with NAMT

• We anticipate developing closer partnerships with our key funders as well as further developing our relationships with major trusts and foundations and the corporate sector

• To increase our range of donors, by broadening opportunities for individuals to engage with the Charity whether through memberships, individual giving, sponsorship, give as you earn schemes and legacies. We commit to improve our relationship with everyone who donates and supports the Charity

• To optimise the use of restricted and unrestricted funds – through a more effective management of our reserves and investments

• To secure capital and operational funds to deliver our ambition for a Third Space, dedicated to artist development

Securing resources and developing the organisation

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developing the organisation

There are some key areas where we want to develop our capability.

• Developing our people, so that our skills better match our scale of ambition:

• We will better use the strengths and talents of our staff

• We will improve our performance management systems

• We will continue to invest in the skills of our own staff and set targets for posts to be filled internally

• Developing our thinking about what it means to be a strategic leader locally and regionally

• This is about how we listen and are open to external influences and learning

• It is about how we make decisions

• We need to consider the implications for the organisation of having a wider focus and remit than before

• Building capacity and capability to realise our ambition to tour nationally

• We need to consider the implications for the Northampton team to be able to be national facing

• We need to develop greater commercial expertise

• We recognise the significant financial benefits in taking control of where our produced work is presented, but also the potential risks for doing so

• Being a training organisation

• We will develop formal alliances and partnerships with learning organisations

• We have an ambition to develop formal apprenticeships

• In order to be a training organisation, we will need to reassess our staffing structures

• We will identify opportunities that encourage organisational learning

• We will need to become an organisation that copes well with change

• Occasionally, things may go wrong – we need to learn from these mistakes

• Relationship with NAMT

* This demonstrates that we are innovators. We need to share our ideas and successes with others

• We need to recognise that senior managers have many priorities – and we need to set up mechanisms for clearer prioritisation

• We need to continually assess the value of the alliance

• We need to be resourced to enable NAMT to grow as well

• This is a ground-breaking model for the arts and we need to recognise our role as innovators

• Improving accountability to stakeholders

• We will need to implement new monitoring and evaluation systems, in order to be better equipped to report our impact

• We will need to better understand the priorities of our stakeholders and audiences

• We accept that we may have to deliver directly for funders

• Assessing and improving our environmental impact

• In the context of realising our ambition to tour and distribute our work nationally, we need to ensure that our own internal policies and ways of working minimise our environmental footprint

• We need to communicate more effectively the measures we are implementing

• We need to consider how technology can assist in reducing our impact

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Income

During the plan period total Income increases by £986K to £9.5M, surpassing the levels achieved in 2009 of £8.5M pa.

Fundraising income through grants to increase by £565K and trading income from box office to increase by £267K between 2012-14. Income from all other activities to increase by £154K pa.

Development activity to increase by 3% in the plan period.

Included in trading activity is secondary income through bars, café and kiosks, which we aim to increase by £231K on current 2011 levels, with an increase of £65K during the plan period.

Expenditure

Expenditure to increase by £758K over the period (9%), including increased payments to promoters to match increase in trading income.

Continued savings to be made on overheads through relationship with NAMT.

This should enable us to start increasing reserves by 2013.

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Financial review

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Net Contribution and Margin

We would expect to make use of our reserve fund in the first year of the plan but from 2013 onwards the aim is to achieve a positive net contribution to increase with net margin stabilising at the 2009 level of 1%.

Reserves

Reserves Policy based on minimum reserves held £120K or equivalent of 2 months basic fixed costs.

Maximum holding £500k, built up to cover any major downturns in income streams.

The reserves policy will be continually reviewed, ensuring sufficient reserves are retained for unanticipated events and unexpected opportunities.

Net Contribution

Net Margin

Central to our work going forward will be a strategic approach to monitoring and evaluation. As a complex organisation in a rapidly changing context we recognise that it is vital that we understand how well we are performing. We will undertake monitoring and evaluation with three aims in mind:

• Decision making – to contribute to our decision making and ensure we are undertaking evidence based, timely decisions about our current and future activity

• Learning and development – to ensure we learn about what is working and what is not, allowing us to build on previous activity and assess how well we are doing and what we can do better

• Accountability – to ensure we can show all our stakeholders how effective we are being

We will be monitoring and evaluating the overall performance of the Royal & Derngate as well as specifi c performances, activities and projects. This process will identify:

• Good practice - what has worked well and why it has worked

• Constraints – areas where we have faced obstacles or barriers

• What hasn’t worked and why

• What has been done for those taking part

• Impact - what difference it has made to individuals, groups and the wider community

• What has been learnt by staff and volunteers

• Unexpected consequences or outcomes

• How the money has been put to good use

• What we would do differently next time

* What risks do we need to consider

Monitoring and evaluation

Aims/underlying assumptions

Confi rmation of the

assumptions and drivers

underlying the activity/project or programme including aims

Identifi cation of the key

inputs

The actions that took

place

details of what was

delivered and immediate

results

Longer-term benefi ts..

Changes in policy and practice.

Observable changes in knowledge, skills and

behaviours

The intended and

unintended changes

brought about by the activity/

project or programme

Inputs Activities Outputs Outcomes Impact

Our approach to monitoring and evaluation will be based on the following framework:

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