The Theatre Budget
The case titled The Theatre Budget was a short journal about a frustrated Vice-President of a performing arts theatre that had a Board of Directors more concerned about artistic values than how they would pay the bills. Janet Dobbs was Vice President for Administration and President-elect for this small taxexempt organization called the Greater Euclid Little Theater (GELT). It is obvious in the case that there is a divide between industries; business administration/accounting and the arts. One can only imagine the frustration Dobbs faced trying to inform and educate a Board of Directors about the financial crisis at hand to only have it fall on deaf ears and have blunt resistance. Being a non-profit organization means
GELT needs to be very careful with their resources and how they obtain and distribute their funds. The
Theatre Budget demonstrates how important it is to have a strategic plan meet the goals and objectives of an organization whether it is quantitative or qualitative.
With the acquisition of a new Artistic Director (Andy Spaulding), the small theatre grew to become quite successful after eleven years of operating; with its new found success, GELT adopted a new mission statement: “to provide professional quality theatre at an affordable price for the families of the greater
Euclid area.” (Tucker, H., 2003, p.1)
The beginning of a budget formulation needs a strategy; Chapter 7 of the text discusses how managers must understand the linkages between their programs and the organization’s overall strategic directions
(Young, D., p.149). In the case, GELT’s treasurer informs Dobbs that prior to 2001, Spaulding’s salary had been paid for by the tuition from the students taking classes from him at the theatre. Spaulding decided he didn’t want to teach the classes in the future which was going to result in a significant loss of revenue. Spaulding would not be convinced that realistic budgeting was necessary for GELT and that there was a direct
GELT needs to be very careful with their resources and how they obtain and distribute their funds. The
Theatre Budget demonstrates how important it is to have a strategic plan meet the goals and objectives of an organization whether it is quantitative or qualitative.
With the acquisition of a new Artistic Director (Andy Spaulding), the small theatre grew to become quite successful after eleven years of operating; with its new found success, GELT adopted a new mission statement: “to provide professional quality theatre at an affordable price for the families of the greater
Euclid area.” (Tucker, H., 2003, p.1)
The beginning of a budget formulation needs a strategy; Chapter 7 of the text discusses how managers must understand the linkages between their programs and the organization’s overall strategic directions
(Young, D., p.149). In the case, GELT’s treasurer informs Dobbs that prior to 2001, Spaulding’s salary had been paid for by the tuition from the students taking classes from him at the theatre. Spaulding decided he didn’t want to teach the classes in the future which was going to result in a significant loss of revenue. Spaulding would not be convinced that realistic budgeting was necessary for GELT and that there was a direct
Cited: Tucker, H. (2003). The theatre budget. The Electronic Hallway, University of Washington, Seattle. (hand out) Young, David W. (2010). Management control in non-profit organizations. Cambridge, Mass: Crimson Press.