Posts Tagged ‘Jazz Fest’

LONG-TERM VS. SHORT-TERM

September 30, 2009

Every news outlet reported today on GM’s announcement to kill another of their brands, Saturn.  It seemed by everything I’ve read that Penske buying Saturn was a “sure thing”, but seems they’ve had second thoughts.  Now the brand that pulled-off one of the marketing coups of the century, by turning a car recall into a party with their first “Saturn Homecoming”, is closing after 23-years in business.  Guess GM had to make the move, but doesn’t it make you wonder why they were running so much advertising for the brand knowing they could be scuttling it any minute?  That’s what free government money gets you.  No accountability!  Maybe we are seeing a little of that in our business too.

One of the lessons they teach in the military is to “Prioritize Long-Term Over Short-Term Goals”.  They preach the same lessons in most MBA programs I’m sure, although it would seem that the folks on Wall Streethave a little trouble keeping those straight.  Anyway as an example in LT. CMDR. Jon Cannon’s book, “Leadership Lessons of the Navy Seals”, he talks about tracking a dozen terrorists in a particular region of the world.  If the terrorists knew the Seals were watching, they would pull up stakes and move.  If you take out only one or just a few of them by moving too quickly, the troops risk of missing the others and giving them a chance to re-group.  The solution of course is to wait for the opportunity to take out all 12 terrorists simultaneously.

In our business today, we are seeing a lot of short-term versus long-term thinking and this is no way to succeed!  To go back to the military for a second, sure there are times when short-term is all you can think about.  Trying to survive in a fox hole surrounded by enemy troops during the Tet Offensive would probably be one of those times.  But once that enemy has been pushed back past a safe perimeter, it is time for a long-term plan to win the battle…then the war.  That was probably our problem in Vietnam, and now.  The U.S. didn’t understand the loses Ho Chi Minh was willing to take.  They didn’t really calculate how many years the Vietnamese people had been at war, how extensive their tunnels, supply lines and fortifications were.  Instead we just had what we believed was a long-term strategy, “Stop Communism”.   The American people really didn’t understand what that meant. 

Back in the day, record labels let artists take time to develop.  An act wasn’t expected to break until their third or fourth album.  Promoters, managers, and agents used to look at a band and say “in 10-years they will be playing arenas.”  Now we expect that by an artist’s second tour.  Jazz Fest, Coachella, Warped Tour, all great businesses that we admire.  All lost money for their first few years.  Sure we all get lucky sometimes as Tom Petty once said, but mapping out your long-term goals with those you work with will give everyone a sense of purpose and direction.  Bump in the road, you can change course but the long-term plan is still the mission.  There is nothing worse for moral than your team hearing about your company’s plans, directions, new products, etc, from someone other than you.  How many times lately have you heard from employees at certain companies, “what do I know, I only work here?”

Quarterly earnings are for chumps.  Sure leaders have to pay attention to them, especially at a publically held company.  But for a second think about the beginning of Jack Welch’s tenure at General Electric.  Forget whether you think he did a good job, whether he cooked the books, whatever.  At first, Welch was far from the shoe-in for the job.  Once he got the job, he was going to take GE in places it had never been before and at the same time sell-off parts of the company that made them who they were (such as small appliances).  Selling Wall Street on Welch’s long-term plans for GE wasn’t easy.  You can imagine the look on investor’s faces the first time they heard the words “GE Capital”.  Making investors and Wall Street believe in his long-term plan is exactly what Welch did.  He showed how with investment (we won’t call in sacrifice) in the future… and education to his team, the street, investors, the press, and anyone who would listen, the long-term goals of transforming GE could be achieved thereby making it more profitable for years to come.   

No reason why you can’t try that today.  Instead of the accounting person in your office asking for your yearly or quarterly numbers…how about a 5-year plan?  And not just the numbers, but how you plan on achieving those numbers?  When Michael Rapino first took over what is now Live Nation he spoke a lot about “value proposition”.  Michael told us how he was going to re-invest in the customer experience.  Then Wall Street and quarterly numbers got in the way and the new message became…”well everyone has at least one or two artists they want to see in a year”.  I don’t know about you, but the Value Proposition stuff sounds better to me. 

Speak with you soon…

Jim

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Top 10 Ways to Make Your Festival Successful

November 27, 2008

Last week I had the honor of moderating the “Festival Panel” at the Billboard Touring Conference in New York.  I hadn’t really wanted to do these type of things since starting the Aspen Live Conference (Dec. 11-13 @ St. Regis, Aspen http://www.aspenlive.net), but when Ray from Billboard emailed me the list of panelist, it was an easy yes.  After all, we are talking about the best and most successful music festival producers in North America.

The panel; Chris Shields from Festival Productions (New Orleans Jazz and Heritage Festival, Newport Folk Festival, Playboy Jazz Festival, etc),  Charlie Jones from C3 Presents (Austin City Limits Festival, Lollapalooza, etc), Tony Conway from Buddy Lee Attractions (CMA Festival, Nashville…formerly Fan Fair), Chuck Morris from AEG-Live, Rocky Mountains (Mile High Festival, Rothbury), and Ashley Capps of AC Entertainment (Bonnaroo, Vagoose) really are the best at what they do.  Our Canadian representative got sick and was unable to…well represent.  The basic question that we were dealing with was the health of the festival business in North America.  Is there room to grow?  Are there enough headliners to go around and still have each festival keep its identity?  The easy answer to all is yes.

Tony Conway pointed out that the CMA Festival actually raised their ticket prices this year and are at this point well ahead of last year’s sales to date, without announcing a line-up (the event takes place in the spring).  On a call prior to our panel, Charlie Jones talked about how the Austin City Limits audience “must be trained or something”.  The fact is they are…trained to expect that the event will be well run, with great music and food, clean port-a-johns, plenty of places to get a bottle of water that doesn’t cost $4, amazing transportation system, and a friendly staff.  The ACL and CMA audiences are trained to expect quality and value.

Based on my notes from our panel, here is what the experts had to say…at least on that day is the TOP 10 THINGS YOU CAN DO TO MAKE YOUR FESTIVAL SUCCESSFUL!!!

1)      Know Your Market There is so much that goes into a festival’s workings, that without knowing about traffic patterns, neighbors, law enforcement, political issues, competition, and a whole host of other issues, you are setting your festival up to fail.  Chuck Morris pointed out that artists that aren’t big around the country can draw in Colorado.  One reason being radio station KBCO in Boulder.

2)     Community Relations – Each of our panelists at the Billboard Touring Conference had at least one story of how building relationships with community and business leaders, neighborhood associations, law enforcement, fire and rescue, parks & recreation officials, health department, and others gave them some kind of advantage.  Whether it was bidding on a new project, going into a new city, or getting into trouble and needing help, there is no substitute for being a good citizen.

3)     Over Deliver – Especially in year one, it is important to over deliver for your consumers and talent.  Even if it means the difference between breaking even and losing money, spend the extra to WOW the audience.  It keeps them coming back…”trains them”.

4)     Price – Price is very much tied to knowing your market, but for some reason, festival pricing is much more sensitive than regular live entertainment pricing.  Your customers really want to feel they are getting their money’s worth since there is an assumption that what ever they are going to see will be watered down (music act will play a shorter set without their production, food festivals will give you smaller portions than the restaurant would, etc).

5)     Transportation & Housing – This really should be 2 if not 4 separate departments of your festival team.  Certainly if you going to have 2 departments you need to separate responsibilities between those that handle transportation or housing for artists and crew and those that will get the audience from place to place.  Housing is a place not to be overlooked.  Every try to get a hotel in a city where there is a large festival?  Good luck!

6)     Booking Talent – The strong message here is that anyone can book a really big headliner; it is the whole package that makes a festival. Remember, a festival is more than a line-up it is about passion.

7)     Camping vs. “City” Festivals – Our panel all believed that the growth in North America would be more in the non-camping festival model (ACL, Jazz Fest, CMA Fest, etc).  With that said, Rothbury only started-up last year in Michigan and it is a camping festival.

8)     Food & Beverage – Every producer will tell you about the part that food and beverage play in the overall feel of your festival.  With festivals like New Orleans Jazz & Heritage and Austin City Limits, the food has become almost as much of a draw as the music.  Also price was a big topic.  Some people just have a problem with $4.50 for water.

9)     Technology Is Your Friend – Use technology whenever and wherever possible to make your fan’s experience more enjoyable.  Things like an event schedule that consumers can customize to plan their day at your festival have become necessity.

10)  Build a Model – All of our panel’s festival producers pointed out that once you had a model that worked, you could reproduce that model in other cities and with other festivals.  The key here is experience.

If there was an 11, it would have to be staying out of trying to do a festival if you have no experience.  Better to partner with someone like those listed above who already have their “models”, and can make things run smoothly for you.  Going in head first without learning to swim can make all of us drown.

Talk to you soon,

Jim