• PESTLE analysis by Alison O’Hara, Chief Executive ANE. PESTLE is an analysis of the external macro environment (big picture) in which a business operates. Alison will explore the political, economic, social, technological, legal and environmental factors affecting the cultural sector now and in the near future.

1. PoliticalEconomicSocialTechnologicalLegalEnvironmental Alison O’Hara Chief Executive Audiences North East 1

2. Political 2 The Big SocietyPhilanthropy

4. Five priorities:

5. Give communities more power

6. Encourage people to take an active role in their communities

7. Transfer power from central to local government

8. Support co-ops, mutuals, charities and social enterprises

9. Publish government dataJay Gunn brings his animal encounters to Centre for Life Halloween 2010

11. “Not difficult but different”

12. “It’s not the individual and not the state”

13. “Giving something back”

14. “Valuing the individual contributions to work and the community”

15. “‘Edge to centre’ – moving people from the edge of activity to centre stage”

16. Liverpool abandoned its Big Society pilot project as the cuts have hit voluntary groups who were to take over some of the services under the programme

17. Voluntary sector faces estimated £1.14bn cut in local government grants this year4 The Big Society Tyneside Cinema. Image: Ronnie Hackston

19. Established by Arts & Business and National Campaign for the Arts

20. How the arts and heritage contribute to the Big Society

21. Streamlining the government’s involvement in arts and heritage

22. Working with reduced public funds

23. Developing corporate support and philanthropy

24. Education

25. Contribution to new economic growth

26. Social enterprise

27. Scaling up

28. Clarifying the state’s role on arts and heritage5

30. Government review of how it can encourage philanthropy

31. More visible recognition of philanthropy – thanking donors

32. Developing fundraising skills and capacity

33. Promoting and increasing planned giving

34. Supporting long-term development of endowments

35. Harnessing digital technology to boost philanthropy

36. Increasing giving from international donors

38. Collaborations?

39. Upskilling eg tapping into philanthropy?

40. But earned income ↑16% whilst philanthropy/sponsorship/trusts ↓10%

41. Focus on demand (ie audiences’ desires)?7

42. Economic Great Street Games part of Great North Run Cultural Programme and Juice – Newcastle Gateshead’s festival for children and young people 2009. Image: NorthNews 8

44. Reduced support for tourism

45. Local authority cuts

46. Funding cuts

47. Less disposable income

48. Business investment in the arts and heritage at its lowest point since 2004 (falling by 12% last year to £144m from an all-time high of £172m in 2006/7).

49. In-kind sponsorship and corporate memberships increased (8% and 2%) but cash fell by 18%

50. Arts & Business Private investment in culture 2009/10Downturn 9

52. 2.5m people over 16 are unemployed, 7.9% of the workforce

53. 21.2m full-time workers (down 5k on previous year), 7.9k part-time workers (up 224k on previous year)

54. Less public sector jobs

55. Increased use of volunteers (30% increase on previous year). Employed/contractual staff grew by only 3%.

56. ACE RFO key data Jan 2011

57. Number of men claiming unemployment benefit fell by 5.4k

58. Number of women rose by 7.8k

59. One in five 16-24 years olds are out of work

60. ONS December 201010

62. Organisational development?

63. Sweating our cultural assets?11

65. mima has teamed up with an arts website ‘we did this’ to raise funds for a piece of work by Richard Forster

66. Target of £15k has been set for the online appeal

67. 90 days to raise funds

68. Those donating a sum such as £20 will be able to join in discussions between the artist and curator and those contributing £100 can have a say in the creative process by asking questions and making suggestionsmima 12

70. In the last year the management team has developed a new organisation, Northamptonshire Arts Management Trust, to deliver finance, administration, sales, marketing, human resources, IT programming and management services for both Royal & Derngate and a new theatre, The Core that opened in November 201013

72. Significant contribution to income stream with plans to extend

73. Images from 450-guest Asian wedding, extensive liaison with London-based wedding planner, coverage in the Journal14

75. Always oversubscribed so created an online version to cope with demand and generate income

76. Exclusive videos and advice from award-winning writers including Lee Hall and Alan Plater

77. Five step-by-step modules

78. Two levels of entry – ‘solo’ £95 and ‘interactive’ £495

79. Most of solo version is additional income

80. Interactive version more resource heavy still sees c60% of the fee form additional income

81. Video extracts will be updated 3 times a year

82. Liaising with UK Trade and Investment with view to developing a US audience for the project15

83. Social Star and Shadow Cinema 16

84. 2011’s big event? 17

85. The Royal Wedding 18

87. UK retail sales ↑2.3% on last January helped by discounting ahead of VAT rise and December weather prevented shopping

88. However, industry beginning to suffer – comparison to snow-hit performance in 2009

89. Later in the month, sales of non-food goods slowed

90. British Retail Consortium and KPMG February 2011

91. Housing Market 7%↓ in demand in January – E Midlands, Yorkshire and Humberside suffered most drops

92. RICS January 2011Shopping habits 19

94. Online collectives eg incahoot.com, groupon.com using bulk buying to negotiate special rates and discounted deals

95. Co-operatives – not a new idea, government White Paper on proposals to encourage everyone to join their local co-operatives eg to buy groceries

96. Local discounts – old fashioned face recognition (eg Starbucks, the Scarf Shop, Petals) or apps such as Vouchercloud

97. Flash sales – time limited offers that encourage impulse buysValue for money Newcastle City Hall Sunday for Sammy 20

99. Random acts of kindness – consumers’ cravings for realness, the human touch

100. Brands randomly picking up the tab to sending a surprise gift

101. Actually need to know what is happening in consumers’ lives – tapping into social networks to find this out

102. Interflora launched a social media campaign in the UK designed to brighten up the lives of Twitter users by sending them flowers. As part of the campaign, Interflora monitors Twitter looking for users that it believes might need cheering up. Once found, the users are contacted by tweet and sent a bouquet of flowersRandom acts of kindness 21

104. Mobile healthcare applications – 17k healthcare apps

105. Heaviest use of healthcare apps is by young adults aged 18-29

106. Strollometer – new mother’s strolling routine, Fit4Mum.com

107. Sleep on it – tracks nightly sleeping patterns

108. DirectLife – builds up detailed record of daily activities

109. Park runs

110. Free, weekly, 5km timed runs, open to everyone, free, take place in pleasant parkland surroundings and encourage people of every ability to take part www.parkrun.comWellthy 22

112. Sidelined art, music, design, technology and RE

113. Music Review February 2011 with national plan to be published later this yearArts education Image: David Arandle 23

115. Awareness of value for money? Not just ticket price but whole cost

116. Segmentation – looking for the easy wins?

117. Rewarding loyal customers?

118. Genuine random acts of kindness?

119. Tapping into getting fit/participation in ‘active’ artforms?

120. Alternatives to classroom learning for the arts?24

121. Technological Freshest Bairns at Dance City. Image: Barry Self 25

124. UK’s largest display advertising publisher

125. Third highest number of video viewers behind YouTube and the BBC

126. Facebook products include photos, gaming with many inter-connected TVs with built in Facebook

127. The Social Network

128. Research Information Network Social Media – A Guide for Researchers27

130. Dell Idea Storm was created as a channel for customers to make suggestions to Dell and has been used by thousands of customers since then28

132. 15k followers

133. Group members bought M&S shares and had planned to tackle the company’s CEO on the issue of the ‘tit-tax’ at the company’s AGM

134. Marks & Spencer launched full-page ads in national newspapers to apologise for its decision to add a £2 surcharge on the price of larger bras

135. The ad says that the company had decided to charge more on the basis that larger bras cost more to make, but admitted they were wrong “so as from 9 May the storm in a D cup is over”

136. M&S reduced the price of its larger bras by £2 and offered 25% off all bras for a two-week period (May 2009)29

138. Trial community ‘book points’ and e-book readers will be piloted in Northumberland and County Durham – book clubs, book donations and informal book swapping

139. The two county councils joined forces on the Future Libraries Programme and their joint bid – Going Digital, Going Local – was one of 10 chosen from across the country as pilot schemes

140. Local people will be able to request books by phone or using the library online catalogue, email and text messaging will be heavily used by the library service to keep in touch with customers

141. The scheme will also assess the effectiveness of e-books in providing the reading needs of over-60s and low-income familiesNew approaches to location 30

143. Resources for reactive and proactive?

144. Identifying opinion formers?

145. Defining your organisation’s ‘voice’ in social media?

146. Infrastructure for IT in rural locations?

147. New locations for public engagement?31

148. Legal Performance at Durham Streets of Play 2010. Image: Martin Cunningham 32

149. Social Media 33 Editorial or marketing? Celebrity endorsement of products and companies on blogs Facebook promotions guidelines Like It and Land It

151. Paid bloggers?

152. Facebook rules?

153. Competitions?34

154. Environmental Tall Ships Race 2010, Hartlepool 35

156. Rise in eco-superior products – not just eco-friendly but superior in other ways

157. Consumers actively seeking out green products reaching a plateau

158. Mainstream consumers question value and efficiency of going green

159. While 40% of consumers say they are willing to purchase green products, only 4% of consumers do when given a choice (Journal of Marketing September 2010)Eco superior Audience interaction with a water sculpture at The Alnwick Garden 36

161. Reactive or proactive?

162. Links with ‘wellthy’ trend?

163. Complete offer – eco friendly and high quality?37

164. 2011’s big event? ‘Temenos’ by Anish Kapoor and Cecil Balmond, the first of the ‘Tees Valley Giants’, the biggest public art project in the world. Image: Alan Jukes 38