When Rising Costs Force Arts Organizations to Get Smarter
The New York Times recently reported that none of the 18 commercial musicals that opened on Broadway last season have made a profit yet. With production costs skyrocketing - some shows now requiring $20-30 million just to open - the economics of live performance are fundamentally broken.
After two decades in the intersection of arts and technology, I'm seeing cost pressures reveal operational inefficiencies that have been lurking beneath the surface for years.
The Hidden Technology Crisis
Broadway's financial crisis highlights something I see across all arts organizations. While everyone focuses on rising labor and material costs, there's another expensive problem hiding in plain sight: operational inefficiency driven by fragmented technology systems.
I've worked with venue management platforms like ArtsVision, Artifax and Momentus for years. They were all built assuming dedicated administrators would input everything and distribute reports through hierarchical organizational structures. That model worked when organizations had executive assistants managing information flow and clearer departmental boundaries.
Today's reality is different. Remote and hybrid work models mean staff members collaborate asynchronously across departments and time zones. Yet I regularly see organizations where people sitting at adjacent desks will Slack each other rather than have a conversation. This shift toward digital-first communication creates both opportunities and chaos.
Critical event information now lives in multiple places - venue management systems, shared Google Drives, Slack channels and individual Airtable databases. Without proper version control and centralized coordination, nobody's entirely sure which calendar is current or which document contains the latest updates.
Why Process Discovery Matters More Than Ever
When a Broadway revival can lose its entire $26 million investment despite grossing $90 million in ticket sales, the problem isn't just high costs - it's operational complexity that makes those costs impossible to manage effectively.
The same challenge exists whether you're producing "Cabaret" on Broadway or managing a local performing arts center. When your calendar system requires manual updates across multiple platforms and critical operational knowledge lives in individual staff members' heads, you're bleeding money every day.
The Process Discovery Bootcamp starts by mapping how information actually flows through your organization. What systems do people use? Where does data get duplicated? What workarounds have become "standard procedure"?
The Real Innovation Opportunity
Organizations are using digital streaming to extend their reach and reduce per-show venue costs. Smart venue management systems can optimize everything from scheduling to inventory management. The need for asynchronous working environments with proper version control is increasingly critical as teams work across different schedules and locations.
But technology only creates value when it aligns with how people actually work. The most sophisticated venue management system won't save money if half your team maintains spreadsheets because they don't trust the "official" system.
Getting Ahead of the Crisis
Broadway's struggles offer a warning for the entire arts sector. When operational costs rise faster than revenue, efficiency becomes essential for survival. Organizations that streamline workflows, eliminate duplicate data entry and create reliable information systems will thrive. Those that don't will join the 90% of shows that lose money.
The Process Discovery Bootcamp helps organizations understand exactly where operational inefficiencies cost them time and money. In an environment where even successful shows struggle to turn a profit, every hour spent on manual data entry is an hour stolen from your artistic mission.