Tips from Magnetic: Why Business Strategy is Key to Success
Tips from Magnetic: Why Business Strategy is Key to Success
September 12, 2019 by Taylor Studios
Magnetic: The Art and Science of Engagement by Annie Bergeron and Beth Tuttle – Cover Art
Do you know business strategy? If you don’t, your museum,
nature center, zoo or other visitor-serving organization will not be
successful. It may even die. This was one of the most striking themes in the
book
The book was published back in 2013, but I believe it is only
becoming more relevant as time passes.
This year’s theme for the included phrases such as:
Our industry is speaking the language of business. According
to Magnetic, “we have become business people.” With the double threats
of reduced government funding and increased competition for people’s charitable
donations, you need to learn business strategy to survive and thrive. Here are
a few more business-oriented takeaways from the book.
Magnetic shared the success stories of six different
organizations. In each story, the organization created a strategic plan, and
then followed up on that plan. Most strategic plans included a vision, a mission,
values, financial management, market analysis, goals, and action plans. Many
set BHAGs (). Steve Snyder, vice president of The Franklin Institute
said, “Our success…started with the fact that we had a plan, and we followed
the plan.”
Success requires relentless effort to enlist others in forming
the vision, direction and implementation of the plan. There are five key
stakeholder groups to engage:
I call this engagement strategy business-minded because it
does not focus solely on collections or your resource. Instead, it centers on
figuring out how to engage both your internal and external audiences. Business
skills such as marketing, customer service, networking, leadership,
organizational structure, process, culture, planning, and management are key to
developing this engagement. You also have to invite your audiences in, teach
them business principles, and ask them to participate in achieving objectives.
Fiscal accountability, viability, and sustainability is a
common theme throughout Magnetic. The organizations featured in Magnetic
are disciplined about financial management. They use data to help them make
decisions, benchmark performance, and measure progress. The Franklin Institute
has a mantra, “no margin, no mission.” The institute was historically strong in
its programs and exhibitions. Now, it is equally distinguished by its business
performance. Another organization in the book, Conner Prairie, needed to think
differently about their business model when their investment portfolio was
reduced. They quickly had to learn to be entrepreneurial, self-sufficient, and
financially viable. Eventually, they made a commitment to financial
sustainability through new revenue streams. All organizations in Magnetic
had to earn their place in the world. They excelled by gaining market insight,
and by strengthening their business and financial performance.
As an entrepreneur I’ve hungrily read and learned as much as
I could over the years about running a successful business. I’ve hesitated to
discuss or share my enthusiasm for business with my clients because I assumed
they would not be interested or find it of value to themselves. Recently, with
the theme at the AAM Annual Meeting and Museum Expo, phone calls from clients,
and reading Magnetic, I think I was mistaken. Sharing and learning
business concepts is of great value to the people in this industry. It is a
must for those of you wanting to grow and sustain your organizations. I
encourage you to read this book and to embrace learning more about business.