The financial constraints for many museums have reached a level that requires big ideas, and we find ourselves obligated to approach the long-standing problem with creativity. Fortunately, creativity is something that comes naturally to those who steward these institutions.
One big idea to consider is the potential for museum mergers. Business mergers are commonplace in the for-profit sector and becoming increasingly common in the broader nonprofit sector. Although they are not new to the museum sector, they are not yet common.
This post will outline two museum merger examples to highlight the different structures possible as well as outline the benefits and challenges.
Rethinking Museum Mergers as Proactive Business Strategy
Mergers are often seen as a last resort and alternative to closing, but their benefits and the problems they can solve should encourage us to consider them before we start hearing the death knell.
It’s also important to note that one doesn’t need to commit to a merger to experience merger-like benefits by way of creative museum partnerships. Shared staffing models are becoming increasingly popular for both administrative and specialized staff.
Example 1: The Demuth Museum and Lancaster Museum of Art
The business merger of the Demuth Museum and the Lancaster Museum of Art provides a case study in resource pooling while maintaining distinct public identities.
Merged in 2014, these two nonprofit visual art museums (both located in Lancaster, PA) share critical back-of-house resources like a single board and shared staff. They operate as a single business entity but maintain separate facilities, collections, and public-facing identities, exhibitions, and educational programming.
Key Features at a Glance
Here’s the information of their merger at-a-glance:
- Both are nonprofit entities
- Both are visual art museums
- Both are located in Lancaster, PA
- Shared mission
- Shared board and staff
- Separate identities maintained
- Separate exhibitions and educational programs
- Separate facilities
- Separate collections
Example 2: The Fort Collins Museum of Discovery
The Fort Collins Museum of Discovery provides an example of a successful public-private partnership (PPP), with the 2008 merger of the municipally owned Fort Collins Museum and the private nonprofit Discovery Science Center.
This unusual model used co-leadership to represent both city and nonprofit governance and successfully blended their collections and exhibits. Another flavor of a “separate but together” approach where everything is mostly merged with the exception of individual governance responsibilities. This strategy is a great example of how merging museums can still meet their governance requirements when they’re different entity types.
The merger resulted in pooled support that raised $27 million for a new facility, a feat unattainable by either entity independently and highlights the potential power of structural and community support consolidation.
Key Features at a Glance
Here’s the information of their merger at-a-glance:
- A private nonprofit and municipal entities
- Different collection types
- Both located in Fort Collins, CO
- Shared mission
- Integrated staff (but either city or nonprofit-paid staff)
- Co-leadership to represent city and nonprofit governance
- Blends collections and exhibits
- Pooled community support led to bond approval and $27 million raised
Benefits of Museum Mergers and Shared Services
Mergers provide organizations a pathway to sustainable financial operations. Part of the power in mergers is the ability to strategically align institutions. Efficiency and shared expertise can present new opportunities in fulfillment of a shared public mission.
The benefits of museum mergers include:
- Pools resources
- Cuts costs
- Grants access to expertise previously unavailable
- Supports easier cross-collaboration
- Offers possibility for expansion in collections management, exhibits, and event programming
- Improves process
- Improves collections management
- Creates broader awareness
- Gathers community support
Challenge and Risks of Business Mergers for Museums
Despite the clear operational and financial benefits, the path toward a successful merger or lighter shared services model is not without significant hurdles that require proactive management.
These ‘big ideas’ often involve difficult human resource decisions and require meticulous strategic planning to ensure smooth integration of different cultures, collections, and operational priorities. Addressing these complexities is essential for long-term success and stability.
Here are the challenges museums face when navigating mergers:
- Staff layoffs
- Overloaded staff
- Competition for resources
- Conflicting messaging regarding priorities
- Culture differences
- Difficulty committing to 1 identity or maintaining 2 identities
- Increased administrative complexities
- Navigating areas that may be separately held as proprietary
Carefully Consider How to Implement Big Ideas
The concept of museum mergers is a fascinating possibility for museums facing hard choices to remain operational.
However, these structural changes aren’t without inherent risks. Success hinges on carefully navigating challenges like potential staff layoffs, managing resource competition, and clearly and consistently laying out shared institutional priorities.
As these models become increasingly considered within the sector, the conversation shifts from if we should merge to how can we implement these “big ideas” thoughtfully and sustainably to secure the future of our institutions.
Resources
Museum mergers and even “just” shared personnel are big topics to consider. The following is a brief list of resources to get you started:
- American Alliance of Museums (AAM), “Management Agreement and Memorandum of Understanding,” (approved April 5, 2006).
- AAM “When Dual Leadership Works, 1+1=3,” (February 22, 2019).
- Cultural Strategy Partners, “There is an alternative to closure or selling off collections: Sharing,” (April 2009).
- Eileen Cunniffee, “One Museum, One Future—Two Locations, Two Names,” Nonprofit Quarterly, (September 26, 2014).
- Museums Association, “Merging museum services,” (November 1, 2013).
- Russell Pomeranz, “The Role Mergers and Acquisitions Can Play in Enabling Nonprofit Arts Organizations and Museums to Survive, Grow, and Prosper, Claverack Advisory Group,” (April 15, 1997).
0 Comments