From the President

October 2008

Building Our Business:  New Audiences, New Friends

An Update

You read in this space recently about a brand new initiative that we have just launched at the Saint Louis Symphony Orchestra called Building Our Business:  New Audiences, New Friends.  This plan takes a highly proactive approach in building new audiences and new supporters in order to combat downward trends experienced in recent years.

The Saint Louis Symphony Orchestra is a great orchestra with a deep history.  It holds an important place in the music world today and is a flagship institution for Saint Louis nationally and internationally.  Music Director David Robertson continues to be one of the most dynamic conductors on the international music scene today.      

Specifically, our goals now are to reinvent and reinvigorate this orchestra with its deep tradition and great musical brand, making it more relevant than ever to people here in Saint Louis, while making Powell Hall the place to be and a true destination location for all kinds of music with the SLSO at the core of the action.  We also need to finish the job of removing the remaining financial clouds over the SLSO by closing an operating deficit that has averaged $3.5m in recent years, and in doing so, secure a healthy future so that we can fully realize our artistic and community vision. 

To accomplish these objectives, Building Our Business, has been launched.  A key focus is the creation of diversified programming to reach new audiences while building our business through investments in revenue generating programs.  This new revenue generation plan takes a proactive, two-pronged approach: build audiences and re-invigorate the SLSO brand making the SLSO and Powell Symphony Hall the place to be; and build the donor base for enhanced institutional commitment and donations. 

FY2008

There is already some important progress to report that I would like to share.  The SLSO completed its 2008 fiscal year on August 31, 2008.  Encouraging progress was made in key areas as follows:

• Classical concert attendance stabilized, representing a notable reversal from a 22% four-year decline
• Successful launch of the brand new Casual Classics summer series resulted in
  • Sold out concerts
  • Revenues surpassing goals by 35% leaving the series “in the black”
  • With nearly 30% of households as new customers
• Our Annual Fund surpassed its goal resulting in a 6% increase over FY2007, representing a major turnaround after a 3-year, 16% decline between 2004 and 2007.  In addition, our donor base increased 12%.
• The projected $3 million operating structural deficit (which is a funded deficit) for FY2008 represents an 11% decline in the deficit from prior year, and 8% under the budgeted deficit for FY2008.

These results provide a strong springboard to the kind of progress that we expect to make in key areas of audience development and financial stability in the years ahead.

Audience Building

Going forward in audience building, our focus is on generating excitement, momentum and a sense of occasion around Orchestral Series “events” like the recent very successful opening night with the Rachmaninoff Piano Concerto No. 3.  It continues with many exciting performances throughout the season including Beethoven’s Symphony No. 9, the Verdi Requiem, a dance festival featuring Hubbard Street Dance Chicago, John Adams’ stunning oratorio, El Niño, and many other works.  Looking ahead, the 2009-2010 Season will allow us to make further inroads in audience development with festival programming, a spring focus on outstanding violinists, as well as orchestral blockbuster favorites balanced with highly innovative commissioned projects and lesser known works. 

And by the way, Orchestral Series this year becomes The Wachovia Securities Orchestral Series.  This relationship is a major step forward in another area of important opportunity and development for the SLSO, building our sponsorship program.   

Another key component in new audiences is the launch this season of SLSO Presents, which is introducing popular-oriented programming as part of the SLSO offerings.  The series recently debuted with The Lord of the Rings Symphony, playing to sold-out houses.  And more than half of those in attendance were new to the SLSO and Powell Hall.  SLSO Presents continues this season with The Wizard of Oz, a Broadway-focused Valentine weekend, as well as non-orchestral presentations including The Five Browns and Preservation Hall Jazz Band.  Next season, SLSO Presents will be expanded to include additional specials similar to those begun in 2008-09 and will include movie-based performances, a video games symphony show and animation-inspired special, as well as a “classic” Broadway musical in concert version.  In short, SLSO programs will offer something for everyone.     

A Very Special Gift

There has also been big news in the area of major gifts to the SLSO.  Recently we announced a spectacular $5 million anonymous visionary donation to support general operations and specifically audience development initiatives, revenue-enhancements, capacity-building and research & development.  This gift signifies a major commitment to the future direction of this great orchestra, and very specifically, a commitment to building our base.      

Looking Forward

So, as you can see, we are highly focused on making new connections and building a strong future.  Through Building Our Business, we intend to:

• Make audience development a key focus
• Build fundamentals, innovation, flexibility and a results-based culture
• Grow annual, repeatable revenues to be vibrant, and invest to do so
• Reduce and eliminate operating deficits, enhancing fiscal stability with a special Building the Business Campaign as annual operating revenue streams are built
• Continue artistic investment, and nurture our artistic brand
• Build on an historic, trend-setting commitment to community service and education
• Create a vision and roadmap to the future with a new strategic plan

 
I look forward to keeping you updated on our progress as we move into what we know will be an outstanding 2008-2009 Season, and beyond.

Sincerely,

Fred Bronstein