Cultural undertaking & investment:from intuition to decision making
AcknowledgementsWe would like to thank the following individuals who agreed to    n baudouin MICHIelS, CeO and Managing Di...
ForewordFinancial and social crises, budget discipline all over the world… rarely has an environment been sohighly strung,...
Contents Ever more culture! Being alive and anchored in its era, culture                                                  ...
How do we invest in culture?From intuition to decision-making:project cycle and reference framework                       ...
Cultural undertaking & investment: from intuition to decision makingEver more culture!Being alive and anchored in its era,...
l Everything becomes cultureWhat is culture? The answer to this ques-                    FESEl, Managing director of the r...
Cultural undertaking & investment: from intuition to decision makingl Major economic impactThe economic weight of culture ...
The investment costs (land pur-chase, construction, etc.) were70 million Euros, co-funded bypublic entities (10 million by...
Cultural undertaking & investment: from intuition to decision makingl New investors and projectsThe interviews allowed us ...
another. These producers seek to differenti-             Investments in the establishmentate themselves by producing conte...
Cultural undertaking & investment: from intuition to decision making  n The organisation of annual events with            ...
When they concentrate together, the cultu-               of new professions and new trainingral and creative industries im...
Cultural undertaking & investment: from intuition to decision makingToday, though, thanks to the strengtheningof digital t...
commercial and marketing strategies are            n To support new practices (mobility,thus developed in order to acceler...
Cultural undertaking & investment: from intuition to decision makingIs investment in culture an investmentlike any other?H...
l ROI, risk management, investment sustainability:  when the rules of traditional finance also partly apply  to cultural p...
Cultural undertaking & investment: from intuition to decision makingvalue is based on cultural excellence. This          a...
from individual patronage. The Festival               revenue thanks to a lot of activity on thiscan count on community of...
Cultural undertaking & investment: from intuition to decision making                                                      ...
affairs as much as to the Google brand, the          Director of the project. The “Art Project”expected performance of its...
Cultural undertaking & investment: from intuition to decision makingHow do we invest in culture?From intuition to decision...
Development cycles for innovation projects                           a n d s a f e g u a rd s . Fo r t h i s              ...
Cultural undertaking & investment: from intuition to decision making  Centre to the opening to the public in May          ...
as it is by the public-sector when provid-          cultural investment projects. In this context,  ing inhabitants of an ...
Cultural undertaking & investment: from intuition to decision making Typology of stakes and examples of evaluation criteri...
At the territorial level, new indicators also          Singaporeans’ knowledge about their her-appear.                    ...
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making
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Kurt Salmon : Cultural Undertaking & investment : from intuition to decision making

  1. 1. Cultural undertaking & investment:from intuition to decision making
  2. 2. AcknowledgementsWe would like to thank the following individuals who agreed to n baudouin MICHIelS, CeO and Managing Director of theanswer our questions: belgacom Art Foundation (non-profit organisation) belgiumn Peter AAlbAek JeNSeN, Filmproducer Zentropa, Denmark n Marc MOSSe, Head of Public and legal Affairs, Microsoft,n Alain AbeCASSIS, Director General of the Conference of France University Presidents, France n Michel OUeDRAOGO, Managing Director, Pan African Filmn Hammou AllAlI, Chief executive at the Real estate and Festival (FeSPACO), burkina Faso Housing Investments Department, Caisse des Dépôts & n Robert PAlMeR, Head of the Cultural Division, Council Consignations, France of europen S. ANAND, Director of the Navayana publishing house, India n Marie-Pierre PeIllON, Head of financial and non-financialn Ibon AReSO, First Deputy Mayor, bilbao, Spain analysis, Groupama Asset Management, Francen Christine de bAAN, Director of the programme, Dutch Design n Philippe PeYRAT, Head of sponsorship, GDF-Suez, France Fashion Architecture, Netherlands n Jean-Paul PHIlIPPOT, General Administrator, RTbF, belgiumn laurent bIZOT, CeO of the No Format! label, France n lydie POlFeR, Alderman for Culture, luxembourg,n Valérie bOAGNO, CeO of the “le Temps” newspaper, luxembourg Switzerland n Aline PUJO, Curator of the Foundation of the Neuflize ObCn eric COMPTe, Chief Financial Officer, Culturespaces, France bank, Francen Renaud DONNeDIeU de VAbReS, Advisor on strategy, n Jacek PURCHlA, Director, International Cultural Centre, kracow, development and culture to the Allard group and a former Poland Minister of Culture, France n Philippe ReYNAeRT, Journalist and Director, Wallimage,n kurt eICHleR, kulturbetriebe Dortmund, Germany belgiumn Hamza FASSI-FIHRI, Alderman for Culture and employment n Jean-Michel ROSeNFelD, Advisor to Pierre MAUROY (former Training, brussels, belgium mayor of lille), Francen bernd FeSel, Managing Director, european Centre for Creative n Oliver SCHeYTT, General manager, Ruhr 2010, Germany economy (eCCe), Germany n Amit SOOD, Project manager, Google Art, Google, Unitedn bernard FOCCROUlle, CeO, Festival of lyric Art at Aix-en- States Provence, France n Alain STeINHOFF, President, Metz Federation of Traders,n Xavier FOURNeYRON, Deputy director general in charge of France Culture for the urban community of the Greater lyon, France n kjetil THORSeN, Architect, Norwayn Divina FRAU – MeIGS, Associate Professor, media sociologist, n barthélémy TOGUO, Artist, Cameroon New Sorbonne University, France n David THROSbY, Professor, Macquarie University, Australian Didier FUSIllIeR, Director of “lille 3000” and “Maison de la Culture”, Créteil, France n Xavier TROUSSARD, Head of Unit, Cultural Policy, Diversity and Inter-cultural Dialogue Unit, General Directorate for educationn Antoine GOSSeT-GRAINVIlle, Deputy director general, and Culture, european Commission. Caisse des Dépôts & Consignations, France n Androulla VASSIlIOU, Commissioner for education, Culture,n Jérôme GOUADAIN, Secretary General of the Diversum Multilingualism, Sport, Media and Youth, european Commission. association, France n Philippe VAYSSeTTeS, CeO, Neuflize ObC bank, Francen Xavier GReFFe, Professor of economic Science and director of masters program in cultural products, University of Paris, n Prof. Peter VeRMeUleN, Head of the Culture Department, Panthéon-Sorbonne, France Mülheim, Germanyn Nizan GUANAeS, CeO of the AbC Group brazil n Aline VIDAl, Contemporary art gallery owner, Paris, Francen Florence et Daniel GUeRlAIN, Founders of the Guerlain n Christian WUlFING, e.ON Ruhrgas AG, Germany Foundation, France n Patrick ZelNIk, CeO, Naïve label, Francen Scott HUTCHeSON, Advisor to the Mayor on cultural economy, New Orleans, United Statesn Steve INCH, former executive Director for the development And the following people who worked on preparing this study: of the City of Glasgow, United kingdom n The board of Directors and the Advisory Committee of then José Ramón INSA AlbA, co-chairman of the INTeRlOCAl Avignon Forum and in particular Axel GANZ, Vice President network: South-American network of cities for culture, of the Avignon Forum Saragosse, Spain n The Avignon Forum team: Rebecca AMSelleM, projectn Thierry JeAN, Head of Metz Metropolitan Development, Deputy manager, Alexandre JOUX director of the Avignon Forum, Mayor, Metz, France laure kAlTeNbACH, CeO of the Avignon Forumn Michael kOH, CeO, National Heritage board, Singapore n Claudia AMbRUOSI, Sustainable Development, Vivendi, Francen Amit kHANNA, CeO, Reliance entertainment, India n laurent beNZONI, professor at the Paris 2 Panthéon-Assasn Reihnard kRAeMeR, Deputy director of the Department of University, France, Culture, Government of the State of North Rhine, Westphalia, n Irène bRAAM, Vice President Government Relations, Germany bertelsmann brussels liaison Office, bertelsmann, belgiumn Alexandra lAFeRRIeRe, Director of Institutional Relations, Google, France n Anne FlAMANT, director, Neuflize-ObC bank, Francen bernard lANDRY, former Prime Minister of Quebec, Canada n Carolina lOReNZON, Director of International Affairs, Mediaset, Italyn Count Jean-Pierre de lAUNOIT, Chairman of the Queen elisabeth Competition, belgium n emmanuel MAHe, Project manager for digital and cultural porjects, Orange - France Telecom, Francen laurent lebON, Secretary General of the Pompidou Centre, Metz, France n Stéphane MATHelIN-MOReAU, director of the Neuflize-ObC entreprises bank, Francen Jacques leGeNDRe, Senator and chairman for the Culture, education and Communication Commission, France n Marie SellIeR, Head of Corporate Public Affairs and Intellectual Property, Vivendi, Francen Jean-bernard leVY, CeO, Vivendi, France n Pascale THUMeRelle, Director of Sustainable Development,n Michel MAIGReT, Head of the Renaissance Mission for the Vivendi, France urban community of the Greater Nancy, Francen emmanuel MARTINeZ, Secretary General of the Pompidou Centre, Metz, Francen bénédicte MeNANTeAU, Managing Director, Admical, France As well as the kurt Salmon consultants who participated inn Philippe MeTTeNS, Committee Chairman for the Department interviews and in the drafting of this study: of Federal Science and Cultural Policy of belgium, (belSPO), n Monica bOSI, Arnaud bReTON, Anne MAGNUS, belgium Alexandre MOeNS
  3. 3. ForewordFinancial and social crises, budget discipline all over the world… rarely has an environment been sohighly strung, impacting on all economic activities. And yet, in this lacklustre environment, culturalconsumption increases and the numberof cultural offerings available on the inter-net explode... as if culture forms part of theanswer to the questions and expectations ofcitizens and consumers; and even more so inthis crisis environment.However, this climate is forcing more andmore cultural “investors” to ask themselvesnew questions:n Which project to invest in?n What are the qualitative and quantita-tive criteria for evaluating an investment inculture?n How to evaluate “soft” projects?n How will these investments pay off in thefuture?All this in a context in which, even if the Jeff WAll, Children, 1988, © of the artist.investment is long-term, innovation and deci-sion cycles are forever getting shorter and new business models and cultural offerings are appearing,largely thanks to new technology.It is only by meeting these challenges that cultural investors and entrepreneurs, whether they are inthe public or private sphere, can benefit from this pivotal period: a period in which culture is changingits status and is becoming seen as a profitable investment or generating profits for both the economyand society as a whole.In 2009 and 2010, we studied the links between the culture and attractiveness of different regions.For the 2011 edition, we chose to investigate the decision models linked to an investment in a culturalproject. Our goal: to define a useful framework for decision makers, highlighting the different indica-tors – economic and qualitative – to be taken into account and how to combine them.Our goal here is not to create a decision matrix in the strict sense of the term. It is more to plot out ageneral framework that can help with decision making, each situation remaining unique as it is ulti-mately tied to a structure, geographical area, context and the particular nature of the project.In carrying out this international study, we relied on interviews with nearly sixty public sector andprivate sector decision-makers, promoters, artists and creators, as well as experts focused on acultural-based investment (infrastructure, events, products, etc.) who had to take this type of decisionat one time or another.Happy reading,Vincent FOSTY, Marco lOPINTO, Marie-Joëlle THeNOZ, Jean-Pascal VeNDeVIlleCopyright: © Fotolia - p. 1: Dora Percherancier - p. 4-6: Virtua73 - p. 4-16: Minerva Studio - p. 5-22: Denis babenko - p. 5-30: Jose Alves - p. 5-36: gemini62 -p. 8 : Mike Thomas - p. 11: HaywireMedia - p. 13: AlcelVision - p. 14a: Andy - p. 14b: Julien Tromeur - p. 15: PinkShot - p. 18: Sashkin - p. 20a: GiordanoAita - p. 20b: beboy - p. 25: Surub - p. 27: barbara Helgason - p. 29: Artcop - p. 32: i3alda - p. 33: Jeancliclac - p. 34: lvnel - p. 35: N-Media-Images - p. 45:Sgursozlu - p. 47: Pei ling Hoo. 3
  4. 4. Contents Ever more culture! Being alive and anchored in its era, culture 6 is ceaselessly welcoming new disciplines. This type of opening is essential for maintaining contact with the public. 7 everything becomes culture 8 Major economic impact 10 New investors and projects 12 Industrialisation and professionalization: the requirements of modern culture 14 How technology has changed everything, including “traditional” culture16 Is investment in culture an investment like any other? How is the decision made for a cultural investment? For many of the players we asked, the process of decision making begins like it does for any other type of investment. 17 ROI, risk elements, investment sustainability: when the rules of traditional finance also partly apply to cultural projects 18 The new patrons of culture or how to find novel types of funding 19 leaving one’s mark: how companies and local authorities try to attract their public with culture 21 Culture as a source of employee motivation? The experience of large private-sector groups 4
  5. 5. How do we invest in culture?From intuition to decision-making:project cycle and reference framework 22for cultural projectsCultural projects are being initiated in a mutuallybeneficial balance between passion and businessrationale, societal and economical objectives,creation and management.22 Artist/Manager: on-going and mandatory dialogue24 When the public sector is concerned about profitability and the private sector is considering the “non-economic” aspects, the lines are shifting25 Appraisal time: how to measure the non-economic impact?27 Creativity in funding models28 The common imperative: exemplary governance30 Cultural undertaking & investment: what about tomorrow? The financial crisis has not spared Culture; patrons and donors are cutting their contributions just like many countries engaged in political consolidations of their public finances are doing. Our belief: it’s time to invest.Annexes36373940 Reflections and objectives of 2011 study 2011 study definitions and scope Methodology for the 2011 study Case studies: examples... 42 44 46 The Festival d’Aix-en-Provence: an example of investment in a cultural event Digitisation project of the Royal library of belgium: an example of investment in digital content production DUTCH Design Fashion 36 Architecture: an example of to follow? investing in the implementation of40 The Pompidou Centre, Metz: installation conditions of cultural an example of investment in and creative industries in the the creation of a cultural facility Netherlands 5
  6. 6. Cultural undertaking & investment: from intuition to decision makingEver more culture!Being alive and anchored in its era, culture investors, focused on new types of projects;is ceaselessly welcoming new disciplines: in particular, efforts to attract creativethe latest to enter the cultural field are industries to an area are increasing. Public-video games and cooking. All of our private partnerships are created for projectsexperts stress the importance of this type at an unprecedented rate. At the same time,of opening which is essential for maintain- working in the cultural arena is de facto aing contact with the public. In its broadest matter for professionals; as well as artisticsense, culture demonstrates its direct and sensibilities, management skills are becom-indirect economic value: if so many new ing indispensable. Other new skills requiredprojects are being developed, it is because by these developments include all thoseboth private and public investors know that related to digital. Many players in the cul-a well-run cultural project not only gener- tural scene have put information technologyates profits but can also allow an entire at the heart of their development strat-economic system to develop within a given egy and are already achieving remarkablegeographical area. In this profitable environ- results. Talent remains, of course, the mostment, culture sees the emergence of new essential ingredient.
  7. 7. l Everything becomes cultureWhat is culture? The answer to this ques- FESEl, Managing director of the regionaltion is not the same as it was during the agency for the support of creative indus-last century and will no doubt continue tries (ECCE1), refers to a 2009 study carriedto evolve in the future. Without denying out by the German federal government forthe importance of traditional disciplines defining the scope of intervention in the(painting, music, literature, theatre, etc.), sector. This study defines 11 branches of theall experts have noted that new disciplines current creative economy: CD’s, books, art,are regularly given the label of “culture”. A films, radio, theatre, performing arts, design,recent example? The video games sector, architecture, the press, advertising, multi-which, since the mid-Noughties, has pro- media and video games. For him, the listgressively gone from being an entertain- could go on as it does not include cookingment industry to acquiring the status of which, for many players, is already part ofcultural industry. This was consecrated in the cultural sector. Since November 2010, in2009 when UNESCO included this activity fact, French cooking and the Mediterraneanwithin the scope of its cultural statistics. diet have been included in the UNESCO listIt is this capacity to integrate the new that showing the intangible cultural heritage ofkeeps culture alive and assures its longev- humanity: proof, if any be needed, that theity. The timeline below shows how the cul- very notion of the cultural field has not fin-tural field has constantly been open to new ished evolving.activities.This expansion is experienced daily by theplayers we interviewed. In Germany, Bernd 1- European Centre for Creative Economy. The expansion of the cultural field with the integration of cultural and creative industries l Fashion design l Cinema l Video games l Cooking l Radio, TV & video l Photography l Advertising l Design et graphics Visual arts (painting, sculpture) / Arts and Crafts / Performing Arts Architecture / Heritage / Publishing and Books 19th century 1959 1986 2007 2009 End of 2011 Creation of 1st UNESCO 1st Eurostat Revision of Extension of cultural the Ministry statistical cultural the UNESCO statistics in the EU27 of Culture in classification statistics Statistical ESSnet/Eurostat France framework 7
  8. 8. Cultural undertaking & investment: from intuition to decision makingl Major economic impactThe economic weight of culture is growing or 11.32 million jobs and contributed 2.45%around the world. to GDP with a turnover of 47.6 billion Euros.In 2005, within the European Union, the These figures naturally inspire decision-cultural sector employed 3.1% of the total makers in the public and private sectors: foractive population of the Union. This is about many of those we interviewed, investment7.2 million people or more than the active in culture is an effective way of attainingpopulations of Austria and Denmark com- development goals and achieving economicbined! And the movement is intensifying: recovery.whilst total employment declined in the EU It is not only a question of creating directbetween 2002 and 2004, employment in employment: culture also brings consider-this sector increased by 1.85% during the able leverage.same period. This is underscored, for example, by theProduction in the sector is also growing: in economic analysis carried out this year2005, it represented 2.6% of the EU’s GDP for the Avignon Forum by the firm Teraor more than 654 billion Euros. This is more Consultants on the database created inthan the chemical, rubber and plastic indus- 2009 and 2010 by Kurt Salmon for an inter-tries (2.3% of GDP). national panel made up of 47 cities from 21 different countries. This analysis shows that “if public expenditure on culture by cities only accounts for an average of 0.7% of GDP per capita, this same expenditure is, however, statistically correlated to about 9% of GDP per capita”. This correlation does not mean, of course, that there is a strict relationship of cause and effect: many other players need to be taken into account when explaining the performance of cultural investment. Nonetheless, the econometric analysis certainly shows the leverage cul- tural investment has on GDP growth. For a town, investing in culture does not only serve to improve the well-being of inhabit- ants or develop social living: it’s also a way to boost their economy. The well-known example of Bilbao, with its Guggenheim Museum, illustrates this lever-This effect is felt even more strongly in age effect well. Indeed, the 132 million Eurosthe rest of the world: in the United States, that was invested in the project were fullycultural industries employed 8.41% of the amortised in the first year since the directworkforce in 2002 and produced 12% of spending by visitors caused the GDP forGDP for the same year, or 1.25 billion dollars. the city to increase by 144 million Euros.In Canada, meanwhile, they contributed 10 years later, the leverage is increasing.to 3.8% of GDP and generated 40 billion Now, 210 million Euros is brought into thedollars in revenue for 2002. This is more city each year by the Guggenheim Museum.than the mining, gas and petroleum sectorsand even the agricultural and forestry This is not an isolated case. The city of Metzsectors. Finally, in China, the cultural sector is undergoing the same dynamics follow-employed 1.48% of the workforce in 2006, ing the opening of the Pompidou Centre. 8
  9. 9. The investment costs (land pur-chase, construction, etc.) were70 million Euros, co-funded bypublic entities (10 million by theDepartment, 10 by the Region,4 by the State, 2 by Europe andthe rest by Greater Metz), whilethe operating budget for theyear 2009 totalled 12 million(9 financed by grants and 3 bytheir own revenue). A year afteropening, the first benefits ofthe Pompidou-Metz Centre areas follows:n The development of tourismwhich results in significantincreases in overnight staysand hotel business.n Metz traders also estimatethat 35% to 40% of visitors to Pilier tulipe ©Centre Pompidou-Metz.the museum then go on to visitthe city; thus profiting the shops and espe- But the positive effects of these culturalcially the restaurants. investments go far beyond the economicn An accelerated pace of urban develop- sphere: they frequently also become realment, notably the restoration of the amphi- catalysts for creativity. This is somethingtheatre quarter which will include 1,600 that affects the whole society and all itsresidences and 40 businesses with private sectors.investments amounting to 460 million Euros “Creativity is essential for promoting innova-and a public investment of 160 million. tion in the economic sector”, notes Davidn The re-branding of the city, which is more THROSBy, Professor of Economics at thedifficult to evaluate in the short term but Macquarie University (Australia). “Creativewhich is nonetheless felt to be important by ideas are an essential ingredient of innova-inhabitants and economic players; this has tion, whether that applies to a product or toalready resulted in an increase in demand a process. These innovations lead to techno-for business premises and building permits. logical change which in turn fuels economic growth. There is an undeniable link betweenThe “Bilbao effect” is no exception. It shares the creativity of companies and their eco-many similarities with Metz: in both cases, nomic performance and with economies inwe can refer to medium-sized cities that general”. At a more institutional level, thehad no prior cultural institution of renown. strategy of the European Commission forIn order to support these cultural projects, the period 2010-2020, entitled “Europeboth cities developed additional infra- 2020: a strategy for intelligent, sustainablestructures (restaurants, hotels, parking) and inclusive growth”, develops a lever ofand regarded these projects from the organisational, technological and socialvery beginning as levers of development, innovation.integrated into a more global economicstrategy. 9
  10. 10. Cultural undertaking & investment: from intuition to decision makingl New investors and projectsThe interviews allowed us to identify several of Artists at Bandjoun Station, in the East oftypes of investment: Cameroon. His idea is to establish contact between the rich, traditional culture of the Four main types of cultural investments region and contemporary art; to preserve this culture within Africa and to allow it to Investments in Investments in encounter artists from around the world. cultural facilities and cultural events, But above all, it is a place for living, expres- building heritage support for creation and collections sion and exchange, aiming to welcome the local population within a cultural context. At another level, this type of investment in cultural events is attracting more and more Investments in Investments in initiatives. Didier FUSIllIER, the director the establishment cultural industries in charge of the lille European Capital of of conditions of and the production Culture project in 2004, noted that, “this attractiveness and of content accommodation event attracted so few candidates before for stakeholders in the Noughties”. Today, on the contrary, the cultural industries craze is such that more and more cities are applying to organize this event. Investments in cultural industriesInvestments in cultural facilities and the production of contentand building heritage The creative and cultural industries haveThis is a question of conserving and enhanc- seen a significant expansion in the last 20ing existing heritage sites and cultural facili- years and are mainly investing in contentties (museums, monuments, etc.) but also producers that make use of technologyof building new sites. The public sector and digital. The CD sector is thus a hall-retains a significant role in this area but the mark activity of this type of production inprivate sector also takes possession of these which major international companies andmatters. So we see “Culturespaces”, a sub- smaller producers work alongside onesidiary of GDF-Suez, running and manag-ing monuments and museums entrusted tothem via delegations of the public services,both in France and Europe. The companydecided, at the end of 2010, to diversify andacquire for the first time, a piece of listedheritage with the purchase of the Hôtel deCaumont, the current conservatory of thecity of Aix-en-Provence. The goal is to trans-form the site into a space for temporaryexhibitions by 2014, something that will alsomeet the needs of the city as the site willremain open to the public and will enrichthe range of cultural offerings.Investments in cultural events,support for creation and collections ©Forum d’AvignonMore and more artists and project creatorsare engaged in creating individual enter-prise projects. The visual artist BarthélémyTOGUO has thus chosen to create a House 10
  11. 11. another. These producers seek to differenti- Investments in the establishmentate themselves by producing content that of conditions of attractiveness andis less commercial but which focuses more accommodation for stakeholders inon the cultural diversity of their artists. “This cultural industriesis the goal that the No Format! label haveset themselves”, explains laurent BIzOT, This type of investment is experiencing athe label’s director and founder. Created new approach. Public, private and mixedin 2004, this production house positioned structures are being created in order toitself as a discoverer and pillar of musical provide players in the creative industriesdiversity. The origins of the project lie in with support and assistance, even witha refusal to conform with regards to the spaces and infrastructure suited to theirrecording industry. development. This is the goal, for example, of the regional agency for the support ofNo Format! provides a place for artists that creative industries (ECCE) in Germany,offer atypical, cross-bred works that do not which followed on from the “Ruhr, Europeanfit the formats of the large production com- Capital of Culture 2010”.panies. Since 2004, 18 albums have been To support the cultural and creative indus-produced with 15 different artists. The chal- tries in the region, the agency has organisedlenge for this type of structure is to ensure its activities around four key themes:economic viability. This is why No Format!have relied on a model that minimizes pro- n The development of existing centres ofduction costs. In addition, they also offer creativity and the creation of new spaces;their artists and producers consulting serv- n The intensification and structuring ofices in legal matters (representing 30% of exchanges between players and network-their turnover). ing them together; 11
  12. 12. Cultural undertaking & investment: from intuition to decision making n The organisation of annual events with mainly by government subsidies, displays international appeal; the same kind of ambition: strengthen n The development of good commu ni- the international position of three sectors cations. of activity (design, fashion, architecture) through partnerships with national playersBefore supporting or funding projects, (organisations, professional associations,ECCE expects entrepreneurs to develop a companies) and international ones. Amongmid-term regional strategy for their sector, the many projects initiated, the Dutchof which the project must be the corner- Design Workspace in Shanghai, opened instone. The task of the ECCE is to moderate September 2010 as a business incubator, isand facilitate the process of strategy buil- one of the most significant. The goal: helpding with all players involved in the project Dutch entrepreneurs from one of theseand later on the implementation of that three disciplines to set themselves up instrategy and not to organize the projects China or expand their activities there. Thethemselves. programme includes an evaluation of a busi-For its part, the Dutch Design Fashion ness plan, advice for setting up a business,Architecture (Dutch DFA) inter-ministerial legal and administrative information and anprogramme, created in 2009 and financed introduction to high-level networks.l Industrialisation and professionalization: the requirements of modern cultureThe cultural sector remains highly fragmen- Finally, the degree of industrialisation variested with SME’s being over-represented. It is greatly depending on the sector.to be noted that there is a strong entrepre- n Some are still relatively unstructured orneurial spirit with a large number of SME have a multitude of players present (e.g.start-ups being created. The entrepreneu- performing arts);rial culture seeks to innovate both in termsof the creation of products and creative n Others, however, are concentratedprocesses. around industrial conglomerates (e.g. film industry majors). Size of enterprises by sector across creative and cultural industries % 100 90 Number of 80 employees 70 60 250 + 50 50-249 40 30 10-49 20 4-9 10 0 1-3 s n n ic . ng ur e es sig hio de o us ts TV ub rts isi t Pr s Vi Ar o & eP lA er t ec & De Fa M ar ua dv hit ok & ing adi s A Ar c Bo lm rm R ftw Vi Fi fo So Per Source: Study of the entrepreneurial dimension of cultural and creative industries in Europe (2010), Utrecht School of Art for the European Commission 12
  13. 13. When they concentrate together, the cultu- of new professions and new trainingral and creative industries implement an courses.ever more structured industrial dynamic. For successful evolution, the sector needsWe see, for example, the emergence of geo- to recruit new talent with versatile profiles.graphical concentrations and/or centres of Apart from what is traditionally expected,excellence in the form of clusters. The goal: new requirements are emerging:reach critical mass in terms of resourcesbut also create synergies in terms of skills n The more the sector becomes indus- trialised and attracts entrepreneurs, theand expertise, particularly of brand capita- more it needs economic expertise. Firstly,lisation and the creation of derivative pro- to carry out projects properly, in terms ofducts. It was in this way that the Imaginove management, commerce and marketingcluster was formed in the Rhône-Alpes but also to manage partnerships, espe-region of France, concentrating on cinema, cially with financiers, related to culturalaudiovisual, video games and animation projects and this implies controlling theand multimedia. Today, it brings together financing mechanisms (banks and finan-more than 200 Rhône-Alpes companies in cial institutions, sponsorship and dona-search of a common goal: to develop syner- tions etc.).gies between these sectors by encouragingforward thinking and stimulating professio- n Advances in technology continue tonal innovation. require the recruitment and permanent training of technical specialists, notablyAnother major change: as regards digital technology matters. n The professionalization of cultural This area of expertise has become crucial players and the consequent appearance for many projects.l How technology has changed everything, including “traditional” cultureAs technological progress advances, digital intangible assets, including the Château detechnology affects the entire culture, par- Versailles brand, by means of multiple part-ticularly through two objectives: nerships. The initial goal of the digital Grand Versailles project, which was launchedDigital technology as a means to in 2005, was very pragmatic: to test andenhance heritage then deploy digital applications that areThe Château of Versailles: an example of useful for visitors and for spreading knowl-heritage enhancement and brand develop- edge, as part of a global effort to improvement using digital technology the welcome experienced by the public.The Château has made these new tech-nologies an important focus of its develop-ment strategy. In addition to a website thatattracts some five million virtual visitors ayear, the Château of Versailles presents itselfas a real laboratory of innovation: geolo-cation, virtual visits and augmented realitywith “Versailles live”, in conjunction withOrange, image recognition, 3D videos etc.New ideas are constantly being tried out.The Château of Versailles has also investedin social networks and the blogosphere inorder to reach a younger public and has ledan aggressive policy of valorisation of its 13
  14. 14. Cultural undertaking & investment: from intuition to decision makingToday, though, thanks to the strengtheningof digital technology as a major focus ofdevelopment, the Château has positioneditself as a real laboratory for the use of newtechnologies.Moreover, the Château of Versailles isthe first French museum to have joinedthe “Google Art Project”, a network of 17museums from around the world that offersvirtual visits of exhibition halls, with accessto works of art in very high definition, thephase two of which is to be launched inthe spring of 2012. This project has beenan important source of visibility for themuseum due to the fallout in the media.There were no less than one million virtualvisitors to the Château of Versailles duringthe first month. with regards to independent cinema),Finally, the museum has invested in mobil- however, a drop in cinema attendancesity, an essential aspect of modern prac- and the emergence of new modes of con-tices. The mobile site of the Château de sumption (such as DVD’s, VOD, download-Versailles alone accounts for nearly 15% ing from the internet), this sector needsof overall use of online tools. The Orange to reinvent itself in order to meet theseassistance application for visiting the challenges and ensure its future. To thisgardens offers the visitor a geolocation end, Hollywood is now focusing on digitaltool which also applies to content. At technologies with the development of 3Dthe forefront of innovation, it is based on in order to address piracy and be able tothe technology of augmented reality and offer rich cultural content and new visualincludes the highlighting of hidden spaces. experiences to the audience.Faced with the challenge of presenting The new 3D technology has trans-visitor information presented by these formed data for the film industry:gardens, the museum and Orangecreated together an interactive n Ticket sales for the 3D filmstool which even offers visitors offered in North America have aloneexclusive content such as inter- generated growth of 11% in recentviews with curators, architects, foun- years;tain engineers and gardeners. n The number of digital projection rooms in the world increased by 86%Digital technology, a tool for in 2009 alone (16,000 theatres equippeddeveloping cultural products and in 2010).services At the same time, we are witnessing alos Angeles: A reorganisation of the film decompartmentalisation of the cinema andindustry focusing on digital technologies as video games sectors towards an enlargeda lever for cultural strategy. hub of excellence aimed at taking advan- tage of technology and related expertise.The American film industry is a primeexample of a cultural and creative indus- For Hollywood, a firmer alliance with thetry and one that has developed an indis- video games sector is a source of techno-pensable model for the industrialisation logical innovation, especially in the graphicof cinema. Faced with the development of arts. Video games also benefit from thenew patterns of production (in particular, visual style developed by the cinema. New 14
  15. 15. commercial and marketing strategies are n To support new practices (mobility,thus developed in order to accelerate the access to information, development of Webprocess of releasing a video game based 2.0 and 3.0, geolocation, value-added serv-on a popular film or, conversely, produc- ices etc.);ing a film based on the scenario of a game, n To perpetuate the effects of a culturalthe goal being to be able to offer a more initiative (increase the lifespan of an eventcomplete range of quality products to a beyond the event itself by capturing video,loyal mass audience. An example of this allowing users to talk about it etc.);strategy’s implementation is the adapta-tion of “Harry Potter” as a video game n To change professional working practicesby Electronic Arts, which sold more than (for example, the restoration of works of9 million copies in 5 months. art in Florence now uses lasers);In a more global sense, then, digital n To create new cultural products (intro-technology allows cultural practices and duction of 3D to cinema, in video games,methods of conceiving new works to be visual arts etc.).renewed, in particular: The fact remains though, that the talent of artists and creators is still the basis for cultural innovation. 15
  16. 16. Cultural undertaking & investment: from intuition to decision makingIs investment in culture an investmentlike any other?How is the decision made for a cultural goals to be met. This first step is essentialinvestment? For many of the players we in order to convince investors and to thenasked, the process of decision making make the project concrete. It is thanks tobegins like it does for any other type of this approach that project developers areinvestment: feasibility studies, the drawing increasingly able to find new partners. Forup of a business plan, targets, risk assess- even if the state or large companies main-ment, implementation of control and tain a dominant cultural role as patrons,monitoring systems etc. One goes from their contribution tends to decline, whicha logic of means – investment in culture then obliges project developers to diver-based on “passion and intuition” rather sify their sources of revenue. For their part,than an a priori strategy – to a logic of private companies try more and more to estimate the indirect impact their cultural investments have on their clients, partners, shareholders or employees and managers. Public sector and private sector are both changing their mode of decision making, each incorporating new elements in their thinking. 16
  17. 17. l ROI, risk management, investment sustainability: when the rules of traditional finance also partly apply to cultural projectsThink, first of all, in economic terms, find n The credibility of the producer and histhe quantified arguments: this is the domi- team;nant mode of decision making in the field n The budget available.of cultural investment, both in the publicsector and the private sector. Such was Structured governance was also put in placethe approach, for example, of the City of in order to analyse candidates and chooseGlasgow. During the 1980’s, this city suffered projects to be financed, consistent with thethe full force of the decline in traditional objectives of the fund. Candidates came toindustries (steel, textiles etc.) and the mass defend their project in front of a committeeunemployment that followed it. “We then which then reported to the administrativeundertook an analysis of the opportunities board. Finally, each project is rated on thefor development that might exist in order basis of the selection criteria listed above, into revitalize the economy”, explains Steve order to make a rational choice.INCH, former Executive Director for devel-opment for the City of Glasgow. “Preliminarystudies carried out at the time showedthat the city had an interest in developingculture, among other things, on its territory.A development programme was drawn up,giving the city measurable goals (usually ofan economic nature) and a road map settingout the results to be achieved”. It is thanksto this goal-oriented method that policy-makers could be persuaded to make theseinvestments and that the projects could beeffectively run and monitored over time.This approach has also been followed inBelgium by Wallimage, a public fund del-egated by the public service to restructurethe audiovisual industry for the Walloon Guillaume Canet et Marion Cotillard à liège pour le tournage de « Jeuxregion. Philippe REyNAERT, its director, d’enfants » ©Wallimagetold us that when selecting which projectsto finance, the institution looked at the In the private sector, Renaud DONNEDIEUfollowing: DE VABRES, advisor on strategy, devel-The cultural nature of the project; opment and culture for the Allard Group, argues that, “the cultural projects in whichn It’s structuring effect on the audiovisual the group has invested were set up not justsector in the region; on the basis of artistic or aesthetic tasten The viability of the project and the return but with a real conviction that a new eco-on investment for Wallimage; nomic model exists in which the creation of 17
  18. 18. Cultural undertaking & investment: from intuition to decision makingvalue is based on cultural excellence. This and project developers who rid themselvesis the logic of an entrepreneur that tries to of any logic based on results and remaindevelop an activity in emblematic areas of committed purely on the basis of their cul-heritage whilst seeking a valorisation strat- tural sensibilities.egy based on culture. At the same time, it Moreover, amongst those that explicitlyis necessary to find a profitable business mention the need to objectify their invest-model, something which will be provided by ments with business criteria, the vast major-an additional private-sector partner”. It is, ity also refer to qualitative criteria, basedthen, the combination of a cultural project for some on their sensibilities, when talkingwith economic goals that attracts the about their cultural investments. Thesegroup’s investments. types of investment, providing as they doOf course there are exceptions to this positive values and connections betweenrequirement when generalising about eco- individuals, cannot, in fact, be limited tonomic rationality: we also met policymakers economic indices alone.l The new patrons of culture or how to find novel types of fundingInvesting in culture is a common practice BNP, National lottery etc.). The fidelity offor banks, public funders and many large its investors has guaranteed the continuitycompanies. Cultural patronage, with its of the competition and its independenceimplications in terms of business strategy with regards to public subsidies.(branding, employee cohesion, taxation), This situation, though, is changing: Inis an important source of funding for cul- France, for example, patronage is nowtural projects. Among the many examples much more oriented toward educationof recourse to patronage, we can cite the and health. This is revealed in the latestQueen Elizabeth Competition in Belgium, ADMICAl-CSA study entitled “Businesswhich was created in 1937 and aims to Patronage in France”. Culture and herit-reward young talent in classical music, its age accounted for only 380 million Eurosresources mainly coming from sponsors in 2010, against 975 million in 2008. Theyand private donors (Belgacom, Delhaize, thus lost their third place they held in industry-funded patronage. States and local governments too are reducing their financial commitment. It is up to cultural project developers to find new investments and develop innovative business models. This is, for example, what the organizers of the Aix-en-Provence Festival have managed to do. The event was able to diversify its sources of financ- ing by focusing heavily on patronage from individuals and national and international companies. Sponsorship revenues thus account for more than 17% of the global budget, or 3.35 million Euros. This is as much as the contribution of the State (17.4%) and the local government (16.6%). 85% of sponsorship revenue comes from national and regional companies, 15% 18
  19. 19. from individual patronage. The Festival revenue thanks to a lot of activity on thiscan count on community of 260 individual network and a significant local presence.patrons, 120 of whom are French, 90 are This example shows that in the performingAmerican and 50 are of other nationalities. arts there are ways to add to the supportTo achieve this result, the Festival created a provided by the public authorities usingbusiness club in order to mobilize regional other sources of financing.companies, with contributions rangingfrom 6,500 to 50,000 Euros. Despite the The difficulty today, for some players, liesdecline in cultural patronage, the event has in finding financing and reassuring or con-been able to retain its level of sponsorship vincing investors and patrons.l leaving one’s mark: how companies and local authorities try to attract their public with cultureFor many players, culture has become moreand more a way of differentiating them-selves and responding to new demandsfrom the consumer, customer or citizen.local areas as well as companies are happyto promote culture as a vector of communi-cation and valorisation of their image.In 1990-1991, in the context of exiting com-munism, the new democratic government ofPoland decided to create a cultural institu-tion in the City of Krakow, the InternationalCultural Centre, attached to the Ministryof Culture and Heritage, explains JacekPURCHlA, Director of the Centre. The activ-ity of the ICC focuses on a multidimensionalapproach to cultural heritage. Its interestsfocus on: the cumulative legacy of Europeancivilization, Central Europe’s multicultural-ism, memory and identity, dialogue betweencultures and societies, preservation of his-toric sites and artefacts, cultural policies,the phenomenon of a historical city andalso the origins and development of modernart. Its aim is to renew the image of Polandat an international scale and to provide aspace for cultural encounters between Eastand West in the field of heritage. Thus theICC hosts representatives of culture, poli- Adrian SCHIeSS, Malerei, 2005 @ SAbAM belgium 2011; Ann Veronica JANSSeNS, Yellow yellow skyblue, 2005tics, economics and media from all over theworld, organizes conferences and seminars,as well as playing an educational role for published by the ICC are a way to reachheritage experts, researchers and youth by international readership while the exhibitionproposing a research grant programme, programme of the ICC Gallery familiarizesresearch seminars and postgraduate study the public with a wide range of develop-courses, international summer courses and ments in the world’s art and architecture.programmes for children and young people The key adjective to describe ICC’s activitybased on our exhibitions. Multilingual books is interdisciplinary. 19
  20. 20. Cultural undertaking & investment: from intuition to decision making their professional activity that will one day, on the sale of their businesses or catalogues, become private customers of the bank. It is mainly for this reason that Neuflize OBC has become the leading financier of French cinema, with 8 films out of 10 financed by the bank and with a 70% market share in this sector. The bank also brings its commitment to the world of culture to the attention of its customers, most of whom are individual art lovers. “Our role today, as banker and corporate citizen, is to assist in pro- tecting the heritage that was built in the past andIn the private sector, the Neuflize OBC developing the cultural wealth of tomorrow.bank has opted for lateral positioning with Whether one considers the heritage aspectregard to the world of culture as they aim or the creation of wealth, culture is stronglyat a clientele that invests in art but equally associated with these objectives, hence ourbecause they assist entrepreneurs from desire to associate the image of culturethe cultural sector, a particularity which with the bank, notably with respect to ourdistinguishes them from the large invest- customers”, explains Philippe VAySSETTES,ment and retail banks. The focal point of CEO of the Neuflize OBC bank. A specialthis strategy is to support entrepreneurs in offer has also been available since 2001 for supporting the sellers of art (galleries, antique dealers, auction houses) in their entrepreneurial projects. Private customers are also supported in their art purchases. Neuflize OBC offers customers financing backed by their art collections, rather than their real estate, something which dem- onstrates a break with the usual practices of the industry. The bank has developed original marketing for customers, oriented towards their cultural interests with cultural events or representations of a work of art or photograph on the back of their customers’ cheque books. Elsewhere, Google has designed their “Art Project” in order to demonstrate the com- pany’s attachment to culture and the pos- sibilities offered by technology, allowing the bonds between works of art and the public to be strengthened. The investment here is based on considerations related to public 20
  21. 21. affairs as much as to the Google brand, the Director of the project. The “Art Project”expected performance of its engineers and displays online works selected by museumsthe consistency of its management. In fact, in very high-definition and creates a virtualthe project was initially thought up during visitor space based on Google technology.the periods of “creative free time” which the Everybody can create their own virtualcompany allows its employees. The Google gallery. An initiative for the general public,Art Project is about “showing that technol- in a context in which digital technology isogy can be of service to art but above all it ever more present in the field of cultureis about providing access to culture to those and where internet users are increasinglythat are deprived of it”, explains Amit Sood, inclined to new cultural experiences.l Culture as a source of employee motivation? The experience of large private-sector groupsFor an increasing number of companies, contemporary art (photos, paintings, sculp-culture can also be used to support inter- tures, videos, prints) in the different buildingsnal communication. This means federating belonging to the group. “Belgacom wishedemployees and developing their pride in to make the place more human by givingbelonging. all its employees the chance to live every day surrounded by works of art and to thusIn Belgium, the telecoms group Belgacom become familiar with contemporary artisticcreated a foundation in 1996: Belgacom Art. creation”, explains Baudouin MICHIElS, Pre-What was its mission? Integrating contem- sident and CEO of the foundation. Guidedporary art in all its forms with the working tours, followed by creative workshops, areenvironment of the groups employees. also offered for the children of employeesToday, the foundation displays 450 works of during the summer. Francesco CleMeNTe, by fire or by water, 1990 21
  22. 22. Cultural undertaking & investment: from intuition to decision makingHow do we invest in culture?From intuition to decision-making:project cycle and reference frameworkfor cultural projectsl Artist/Manager: on-going and mandatory dialogueWhen deciding to invest in a project linked another element plays a major role: the intui-to culture, the players that we interrogated tion, even passion that the initial idea pro-generally proceed as they would for any vokes in the decision-maker, depending onother innovative project: by following the his sensibilities. He must subsequently haveidea-concept-feasibility-implementation- the conviction that the investment will haveevaluation cycle. But as it is a cultural project, positive consequences and not just finan- cial ones: it may be a question of attractive- ness or of notoriety, of social cohesion or of human development. The decision-maker must, then, take into account other signals, apart from those connected to a business rationale. It is on this condition that his investment can have positive effects on the entire ecosystem, beyond a logic that is purely tied to the market. 22
  23. 23. Development cycles for innovation projects a n d s a f e g u a rd s . Fo r t h i s reason, these investments are not subject merely to the law of supply and demand. Evaluation This partial protection does Distribution not prevent cultural projects Implemen- from still being perceived by tation decision-makers as riskier than Feasibility “traditional” investments. Concept Indeed, assessing the impact of a cultural project remains Idea difficult because it always falls within the logic of the prototype: Didier FUSIllIER, InTuITIOn DECIsIOn Director in charge of the lille European Capital of Culture 2004, recounts an inaugural party that was organised to launch theGiven the increasingly innovative nature of event. Attendance was expected to be low,cultural projects, especially those involving around 40,000 people. In the end, 700,000R&D, the decision cycle and the develop- people attended the event. The organisersment cycle (from design to implementation) and partners simply could not estimate theare tending to become shorter. This is par- degree of enthusiasm of the people andticularly found in “technological” projects, their desire to celebrate the city together.where the risks of obsolescence restrict Similarly, when budgetary planning forthe life-cycle of the service/project. Hence the event was carried out, the authori-the necessity of putting in place a process ties expected a balance sheet deficit. yetof joint-construction for projects, mixing the investment (74 million Euros, 20% ofteams and expertise in order to accelerate which were publicly funded) turned out tothe implementation of the project. be profitable: 2.5 million Euros profit wasThe specificity of the cultural object, its made after tax.function as carrier of a message – identity, Another imperative highlighted by ourculture, values – is widely recognised. That experts: Take the long-term into account.is why these investments sometimes benefit Indeed, a cultural project generally involvesfrom a specific legal framework. This is a long duration because:the case, for example, in certain countries,with the principle of the cultural excep- n A long time is needed between the ideation, which is debated in the context of free and delivery of the project. A culturaltrade agreements under the auspices of facility, for example, needs between 8 andthe World Trade Association. This principle 10 years to be built. The Pompidou Centreallows cultural industries to be protected in Metz took 7 years, from the choice ofwith the application of special obligations Metz in 2003 to house a new Pompidou 23
  24. 24. Cultural undertaking & investment: from intuition to decision making Centre to the opening to the public in May European Capital of Culture, for instance, it 2010, as Emmanuel MARTINEz, Secretary takes 10 years from the moment of applying General of the establishment, recalled. before the impact can be felt. n It is part of the logic of reiteration. Our conviction today – and that of our inter- Taking this dimension into account right viewees – is that it is necessary to promote from the start is essential in addressing ongoing dialogue between all the parties the issue of durability and to be able to involved in an investment project rather than forecast how resources and organisation putting the cultural dimension of projects in need to evolve in the future. opposition to economic assessment. n It is part of a programme of develop- In this sense, Aline VIDAl, contemporary ment on a larger scale and of a longer art gallery owner in Paris, observes that duration. the relationship between artists and otherThe impact is only measurable in the players has considerably evolved over themedium and long term, especially if is a last 25 years. “With the development of ahighly innovative project that may require more global world and communicationtime to build public support. With the tools, a new, well-informed generation of artists has appeared.”l When the public sector is concerned about profitability and the private sector is considering the “non-economic” aspects, the lines are shiftingPublic-sector and private-sector decision- cultural industries and the creativemakers have both changed their positions economy (for example, the creation ofwith regard to cultural investments. The centres of excellence, such as the one inplaying field is changing and the interests of lille, the image-culture-media centre, viathese two worlds can converge, especially the “Pôle Image” centre and the “Plainein response to changing patterns of public Image” development) and a much morecultural consumption cross-sectional approach to culture withA number of trends emerge: regard to other policies or parts of the company. n The strategies put into place in the cultural sector fit within a more global n The need to take into account the eco- strategy. We are seeing, then, an increase nomic dimension of cultural investments in the number of initiatives to help the is more and more marked, especially on the part of public-sector players. They too are looking The convergence of interests for financial equilibrium for their projects, by means of sources other than subsidies. Public stakeholders Convergence zone n Social cohesion and the cre- ation of social bonds (within Donors & Patrons Qualitative a community) are highlighted evaluation in projects, even by private- sector players. Collectives of investors Economic evaluation n The importance of culture in Private stakeholders the environment is recognised as much by the private-sector, who use it as a lever in recruit- ing and retaining employees, 24
  25. 25. as it is by the public-sector when provid- cultural investment projects. In this context, ing inhabitants of an area with a pleasant their interests can converge. living environment. The example of the DUTCH Design Fashion n The new practices and the “need for Architecture programme for the support of culture” on the part of customers/users creators from these three disciplines, which are fully appreciated by the different was mentioned previously, illustrates this players. Better understanding between change in position on the part of public- the public and private sectors is taking sector players. This initiative was conceived place, allowing better coordination of more with capacity building and project skills and means in order that everyone incubation in mind rather than seen as a reach their goals. “window” for subsidies. It illustrates the factOverall, public and private sector players that a concerted strategy between the dif-are moving towards similar operating ferent players involved, involving a targetmodel. Both need to invest in new areas and market and having common objectives,seek new partners in order to carry out their works for the benefit of all.l Appraisal time: how to measure the non-economic impact?The qualitative impact of a project isincreasing, even for private-sector players.In addition to the cultural efforts undertakenon behalf of their customers, in 1997 theNeuflize OBC bank created a Foundationfor Photography. Each year, a selectioncommittee shows the bank’s 1,000 employ-ees a series of works by contemporaryphotographers. The employees are invitedto select their favourite and the photog-rapher’s works are then purchased by theFoundation. This is quite an original systemwhich is both an element of social cohesionfor employees and a method for promotinglesser known artists.In the public-sector, the City of Brusselshas created the NO KAO festival of urbanculture. The idea being to provide a stagefor urban music culture and to strengthen during the evaluation and assessment stagesocial cohesion, notably by recognising if such an impact has been successful?forms of musical expression coming out of There is no universal, analytical frameworkthe large Congolese and Moroccan commu- that allows this type of information to benities, who then have their own place in the synthesised and standardised. This is some-festival programme. thing which is perceived as a gap by the players faced with an investment decision.It is, then, understood by the majority ofplayers that cultural investments must also Without claiming to be exhaustive, our inter-produce results other than economic ones. views have allowed us to identify the majorA real difficulty remains, though: how to types of issue that cultural projects candefine, at the moment of project design, address and identify evaluation criteria. Forwhat the qualitative impact should be? And each of these themes, we have proposed sug-how, in certain cases, can one determine gested criteria for assessing their success. 25
  26. 26. Cultural undertaking & investment: from intuition to decision making Typology of stakes and examples of evaluation criteria ECONOMIC DIMENSION REACH AND REPUTATION ECONOMIC ECONOMY OF KNOWLEDGE HERITAGE DEVELOPMENT VALORIZATION n Development of brand n Development of a qualified image n Entrepreneurial higher education n Valorisation of n Development of cultural dynamics (creation, n support for research / tangible heritage tourism installation innovation n Valorisation of n national and international and business n Development of the intangible heritage viability development) qualification of human n Valorisation of the n Employment capital and development brand n Consolidation of of know-how sectors n Access to culture SOCIETAl DIMENSION SOCIAL COHESION / SOCIAL DEVELOPMENT OF CREATIVITY AND COMPANY CULTURE RESPONSIBILITY CULTURAL ACTIVITIES ARTISTIC EXPRESSION n Promotion of pride in n Development of a n Development of uses n Development of belonging common culture n Development of supply amateur practices n Adherence to identity values n Improving equal n Development n Promotion of cultural opportunities social of professional diversity diversity practices n Winning loyalty of the public, the population and employeesSome business rating agencies have begun aegis of the United Nations and Europeanto be interested in the cultural dimension of Union.the companies they assess. Other players have not explicitly set up thisThus, in 2007, the Diversum association in type of rating but are thinking about doingFrance launched the first ratings service for so. “Today, the cultural dimension for us ismeasuring the contributions that organi- not a criteria in the social analysis of compa-sations make to cultural diversity. Since nies”, reveals Marie-Pierre PEIllON, direc-December 2008, the association has issued tor of financial and extra-financial researchthe Diversum finance label. This gives a for Groupama Asset Management. “But thisguarantee to all investors – institutional or aspect could be correlated with the humanindividual – that at least 25% of their cash capital of the company, with an analysisfunds or of their investment portfolio will be of its impact on the ability to attract andused for financing companies that promote retain talent”. For her, this field should becultural diversity. The label is granted for the subject of a research project in order toone year on the basis of checks carried out standardise the data to be processed andby the Diversum association. Note that it allow analyses to be carried out in the sameis not the companies themselves that are way as they are with accounting records.granted the label, rather, by means of a two-step mechanism, it is the financial products Vivendi, for their part, have includedused in the companies. The methodology support for cultural diversity among theirseeks to determine the “cultural footprint” strategic goals for sustainable developmentof each player (i.e. its contribution to cul- and has integrated this dimension into thetural diversity) by studying general attitude variable remuneration paid to the group’sand impact on local cultures. The rating executives. The objectives and indicatorsspectrum now includes 1,200 companies in have been fixed. To assess the achievementEurope and in North America, 650 govern- of these objectives, the group requestedment offices of member countries of the support from the non-financial ratingEuropean Union, Canada, the United States, agency Vigeo, based on data supplied byMexico and Switzerland as well as 150 insti- subsidiaries and the supporting documentstutions or organisations operating under the submitted. 26
  27. 27. At the territorial level, new indicators also Singaporeans’ knowledge about their her-appear. itage, history and involvement in culturalIn Singapore, Michael KOH, CEO of the life. This young nation, which has beenNational Heritage Board, explained that, independent for 46 years, can distinguishsince 2002, his city-state, in conjunction itself from its competitions in Asia withwith the university, has developed a spe- regards its quality of life and its promotioncific indicator, the “Heritage Awareness of culture. The HAI is also a way of measur-Index” (HAI). This indicator measures ing a pride of belonging felt by its residents.l Creativity in funding modelsIn a context of growing scarcity of sources debited once the required budget has beenof funding, new models are being created obtained. As with “My Major Company”,for finding investors. Buoyed by the phe- they are remunerated according to the rev-nomenon of social networking, groups enues generated by the film.of players are gathering around commoncentres of interest to help finance projects.One example is the “My Major Company”initiative created in 2007. This is the firstcommunity-based music label in France.This internet platform allows artists, internetusers and music professionals to connectwith each other. The artists use the plat-form for offering their music to the public.Interested internet users can either investin the production of an album, or else finan-cially support the artist. They will then beremunerated depending on the success ofthe album and the amount of their initialinvestment. There are different reasons forinvesting and speculating: some peopledo so in order to express their support foran artist that they like; others do so out of Another pioneering example: the creation ofcuriosity, in order to learn more about the a private structure for a public-sector playerprocess of making an album and about the to ensure the economic feasibility of theworld of music in general; and finally, some project.people speculate in order to try their luck This is the approach taken by the Belgianand potentially make some money. Federal Science Policy Office (BElSPO). InSimilarly, in the film production business, 2011 they launched a programme to digitizethe “People for Cinema” site offers internet the heritage stored in the federal museums,users the chance to take part in the financ- as part of its mission to conserve federal, cul-ing of a film by partnering with French tural heritage. In order to find the 150 milliondistributors. To attract investors, the site Euros that the project initially required, aprovides users with exclusive information public-private partnership (PPP) was formed.on the subject of the film, the synopsis, This PPP was without precedent in Belgiumthe casting, the marketing plan etc., as and in Europe and it brought together thewell as financial information (repayment public player, experts, scientists and curatorsthreshold, expected return). Internet users from BElSPO around a consortium of com-invest in increments of € 20 but are only panies involved in the digitization of content. 27

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