Leveraging the balanced scorecard to reformulate the strategy of a performing arts theater: a stakeholders' perspective

ABSTRACT

Purpose: This study expands the performance management literature by developing a strategy map and balanced scorecard (BSC) for a large performing arts theater (PAT). Design/methodology/approach: First, interviews with significant stakeholders identify key success factors (KSFs). Next, a survey is administered, and a structural model is employed to determine the importance of each KSF and their interdependent causal relationships within the PAT. Each KSF's controllability and room for improvement are also measured to facilitate implementation strategies. Findings: The results reveal that the Financial Perspective plays a critical role in the PAT's success, while significant changes can be enacted by focusing on the Internal Processes Perspective. Regarding the individual KSF, the following emerge as the most critical excellent reputation, attendance growth, increasing sponsorship and donation, and supporting the local arts community;however, PAT managers will have to be creative to enact change through these KSF as some are difficult to control or have little perceived room for improvement. Research limitations/implications The data were collected prior to, or at the beginning of the coronavirus disease 2019 (COVID-19) pandemic. Post-pandemic priorities for the organization may have changed. Practical implications By highlighting the relationships between different KSFs, this study provides PAT managers with a frame of reference for developing their BSC and performance metrics. It also offers PAT's managers a structured and adaptable approach for prioritizing their strategic choices and developing implementation plans for improved outcomes. Originality/value This study exemplifies the need for applied BSC studies in various sectors, including nonprofit organizations. Specifically, this study extends the performance management literature by providing an example of a large PAT's performance measures, the inter-relationships among KSF and the resulting strategy map. The results are significant because arts management is a unique discipline based upon a specific body of knowledge (Weinstein and Bukovinsky, 2009). © 2022, Emerald Publishing Limited.