PLANNING FOR THE FUTURE: TREAT YOUR HISTORIAL ORGANIZATION LIKE A BUSINESS

By Ellen Maurer, Director, Milan Historical Museum

Local History Notebook, November / December 1994

Long Range Planning

The concept of long-range planning is not new. Businesses routinely project financial stability, marketing strategies, and production goals at least once a year. Beyond that, businesses project themselves three to five years into the future. They do this because they are aware that introspective examination of annual operations and future courses of action is necessary in a competitive world.

Systematic planning by historical societies and museums is a relatively recent phenomena. Historical organizations have, of course, always been involved in planning. However, the sphere of planning within historical organizations has generally been based on immediate need due, in part, to limited funds and personnel. As a result, stress has been placed on short-term goals that have either enhanced or simply maintained the organization or site.

The reasons for historical organizations changing their perception of long-range planning are subtle. In many cases, present day historical groups began as small repositories for gifts of local historic significance, perhaps one individual's personal collection or the bequest of a historical building. A handful of volunteers oversaw the curatorial and record-keeping duties required to physically and financially maintain their organizations. Very quietly and with almost no one realizing it, these organizations have "grown up." One professional in the field agrees. "The last fifteen years have seen a spectacular growth in heritage interest and activity. Much of the growth has focused on the construction of new museums, the expansion of existing institutions, and the renovation of exhibitions based on new concepts of public access. This upsurge of activity has been accompanied by an awareness of the fragility of the material evidence of our culture. At the same time, greater demands are being made upon the collections by a larger and better educated public. After almost two decades of hectic growth, the importance of the proper planning of museums has become apparent to those most intimately involved in their operation".(1) This consistent growth in the arena of museums and historical societies still must take into account the fact that, financially, the industry maintains a conservative income and functions with minimal full-time staff. The key to success for the "business" of museums and historical societies is long-range planning.

Governing Documents

Before you can build a skyscraper you need to establish a solid foundation. The same holds true for your organization, whether it is structured as a society, a trustee-run museum, or supported wholly or in part by another agency. The foundation consists of a mission statement, vision statement, constitution, and bylaws. This structural framework directs the governance of the museum or society. If portions of any of these important documents are irrelevant or outdated, it is time to review them in light of where you are now and where you envision your organization being in the years to come. The examination of the mission statement, vision statement, constitution, and bylaws, often lengthy and tedious reading, is not generally a high priority for organizations whose time might appear to be better spent with day-to-day operations. For such a review to be worthwhile, consider the following self-help questions: Do your numbers (membership, trustees, officers, committees) reflect the size and needs of your organization? Are the duties of officers, staff, and committees clearly spelled out? Is the "chain of command" (who is responsible to whom) made very clear? Are your documents readable? Do not allow legalese or run-on, confusing sentences to needlessly complicate the context of any of your governing documents.

Now that your mission statement, vision statement, constitution, and by-laws fit your needs and establish all the ground rules needed for an efficient operation, use them! These documents not only belong in the administrative file and in a safety deposit box, but also in the handbook of every trustee and officer. To work, they must be referred to often and followed to the letter. For every new trustee, these documents should be considered required reading. And they should be discussed and understood by all.

Policies and Procedures

Akin to the guidelines established by the governing documents are policies and procedures that apply to the relationship among the trustees, staff, volunteers, and your "clients," the general public and potential donors. The policies established by various societies and museums differ according to their function, structure, and facility. A policy may be as simple as--"Taking photographs in the museum is prohibited unless prior arrangements are made at the office."-to a comprehensive disaster plan that is a step-by-step guide for staff members and volunteers under various emergency situations. A collections policy, well-written by defining what will and will not be accepted by the institution, streamlines the job of curatorial staff. In turn, a carefully thought out set of procedures indicates to the public (in particular, would-be donors and society members) that your organization is operating in a sound and professional manner.

There is Another World Out There

When making plans for various areas of the historical organization, there is another important resource that should be tapped, your consumer. For-profit agencies constantly go to their audience for feedback because their livelihood depends on success in the "marketplace." Societies, museums, and historical sites can benefit by allowing the consumer, their visitors and members, to have a voice in planning. These people can be one of your best mirrors for what your institution is doing well, and, at times, not so well. Verbal polls or written questionnaires can give you insights into such areas as:

Surveys of the Milan Historical Museum's visitors indicated that travelers consistently expressed a desire to spend more time in the local area and asked about accommodations, restaurants, and shops. Some expressed confusion about directions returning to major highways and the routes to nearby attractions. A simple but effective "FYI" handout answered their needs.

Plans for Funding

The for-profit business world is an example of an organized, hopefully successful operation. Now let us look at another goal--realizing as much potential and profitability as possible. The roadblock for organizations such as ours are the financial restraints that come with the territory--encumbered trust funds, uneven state or county support, and fluctuating income generated by admissions, donations, sales, fundraising, and grants. Within this conservative framework lies the real challenge--how to take what you have and make it work to your benefit.

The first step in financial planning is to know your sources of revenue. Identifying your income and tracking it over several years will give you an idea of the weak points that need to be addressed and the areas in which your strategy has been successful. Monies controlled in part or wholly by outside entities (trust officers, investors, county, and state officials) can be a substantial percentage of annual income. Your inquiries into the structure of such funding arrangements deserve direct and informative answers. A review of this type of income should be scheduled between representatives of your historical group and officials responsible for the budget and income sources once every six months.

Flexible income, such as monies generated through tour fees or special funding events, can be maximized provided you allow a generous time frame for planning. A year or two is not extreme when planning a change in your flexible income structure. The following is one scenario of how planning ahead will help with the decision-making process.

Say, for example, that you have charged the same entry fee for years. While your annual visitation has remained fairly constant, your expenses have risen steadily. If you decide that an increase in ticket prices would now be a logical step, consider this self-examination: What and how many printed materials indicate our fees?

If you have brochures on hand that will last one or two years, are you gaining anything by a reprinting or would the cost be counter-productive to your goal of increased profit? Any change in admission fees, open hours, or information contained in widely distributed materials requires adequate lead time to alert your patrons prior to the enactment of a new policy.

Fundraising is the one facet of income generation that is linked most directly to long-range planning. The public is most apt to respond to your request for monetary donations when:

Proof of your organization's commitment to a project is the well-organized PLAN accompanied by a FINANCIAL PLEDGE. The financial pledge can be in the form of a preestablished fund earmarked for special projects or a line item in your budget that reflects a percentage of your income directed to capital improvements.

What is Our Product?

As not-for-profit entities that are dedicated to collecting and preserving historical artifacts and sites and to interpreting these things to the public, we really do not need to be concerned with "production goals," typical business jargon. Or do we? Let's take a look at what our product is. As educational, not-for-profit organizations, historical societies and museums have an obligation to use their resources to positively impact society. As a result, public exhibits, programs, and outreach efforts become the product of our most basic function, that of collecting and preserving.

Before such organizations can deal successfully with their "product," one of the most basic functions of historical organizations should be seriously addressed--that of collections management. Many organizations will attest to the fact that within recent years more attention has been placed on their curatorial responsibilities because of their continued collecting over the years. Such growth demands progress in the areas of collection storage areas, conservation, and decisions concerning what to exhibit, all of which place a burden on both the facilities and the staff. Planning with regard to collections management should examine:

All of these components point to a collections policy. Such a policy needs to be a positive statement that clearly indicates to your staff and the public what direction will be taken in regards to collections management by your organization. The policy should address such issues as:

With an understanding of your institution's mission, combined with budget guidelines and staff restrictions, you can now develop interpretive exhibits and projects in keeping with a long-range plan that allows the necessary preparation time for a quality product.

As museums and historical groups move into this new era of growth, accompanied by a great need for vocal and financial support, two groups have come to the forefront--the institution's immediate community and the community of historical organizations. If part of our "production goals" is to establish and build a solid ground-work for future generations, then we must make ourselves accessible to these two audiences. Historical groups can no longer stand alone as they once did, often perceived by the public as self-serving social groups or supported solely by the philanthropy of one individual. Historical societies and museums can build on their role in the community by stressing their impact in the areas of local economy and education. Representation by trustees or members in local government, business groups, and chambers of commerce keeps awareness of the direct relationship between your organization and the business sector ever present.

Marketing the Past

Directly related to the "product" of historical organizations is one of the for-profit world's greatest concerns (and expenses)--that of marketing. The term has been known to agitate many historians who feel, and perhaps rightly so, that our product of the past can stand on its own merit. The truth is that the 'profit" for the not-for-profit historical society or museum is staying financially afloat. Historical organizations should not be afraid to examine the typical marketing strategies of the business world and apply them to their own promotion activities. To plan for successful marketing your institution should:

Summary

There is no formula for the successful operation of a business, be it for-profit or not. There are, however, time-proven strategies that have worked in the business sector that need to be adopted by historical societies and museums if they are to survive economically in the future. These measures in no way are meant to negate the ultimate mission of our organizations: to collect, preserve, and interpret. It is now that we must all be fully aware that our fragile business is not guaranteed to be a success. Survival of our buildings, manuscripts, and artifacts will depend on creative management by people who recognize the value in one of Thomas Alva Edison's favorite sayings, "There's a better way. Find it."

Suggestions for Further Reading

Dorothy Weyer Creigh. A Primer for Local Historical Societies. Nashville: AASLH, 1976.

Laurence R. Pizer. A Primer for Local Historical Societies. 2nd edition. Nashville: AASLH, 1991.

The Local History Notebook is edited and published by the Ohio Historical Society's Local History Office in order to bring useful information to people working in the local history field. The selection of subjects and authors is based on the OAHSM Editorial Board's and the Local History Office's determination of issues which are timely in nature and lasting in scope. The reference inserts are copyrighted 1994 by the Ohio Historical Society. Reprints are available individually or as a complete set. For further information, contact: