AWARD-WINNING CASE — This case won the Best Case Award at the Administrative Sciences Association of Canada (ASAC) Case Competition, 2007.

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9B06M064 TURNING AROUND ORGANIZATIONS IN A CRISIS: THE CASES OF TWO MAJOR ALBERTA ORCHESTRAS Tom Ewart prepared this case under the supervision of Professor Tima Bansal solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail [email protected]. Copyright © 2006, Ivey Management Services Version: (B) 2010-04-08 In 2002, the Calgary Philharmonic Orchestra (CPO) and the Edmonton Symphony Orchestra (ESO) each faced a financial crisis that threatened their existence. The Calgary Philharmonic and the Edmonton Symphony were the two major professional orchestras in the Canadian province of Alberta. Both non- profit orchestras had similar revenue levels and long histories in their similarly-sized cities. They also had similar financial difficulties. By the end of the 1990s, many North American orchestras, in cities of all sizes, were facing bankruptcy. Some people blamed the American Federation of Musicians, which had been called “an international union every bit as power hungry as any in the public sector.”1 Others blamed irrelevant business models, poor governance, bad management, and decreasing public and government support. By 2005, the Calgary Philharmonic and the Edmonton Symphony balanced their budgets. To recover from their respective crises, the CPO’s Transitional Leadership Team (led by the Board Chair, Interim Executive Director, and Chair of the Players Association), and the ESO’s Managing Director, Elaine Calder, had each made a series of decisions that they felt were best in their respective contexts; however, observers were divided on which organization was best positioned for stability and growth in the future. CALGARY PHILHARMONIC ORCHESTRA: SEEKING A NEW BUSINESS MODEL The Calgary Philharmonic Orchestra was formed in 1955 from the merger of the Alberta Philharmonic and the Calgary Symphony. At first, its audiences were small but enthusiastic. By 2001, it was performing for approximately 90,000 people per year in Calgary and around the world. In 2002, the CPO had 65 musicians and performed a wide range of musical styles, including classics, baroque, popular music and music geared to children. Structurally, the orchestra consisted of four groups: the musicians, the management staff, the volunteer board members, and an 80-member volunteer chorus.

1 “Grasping the Baton,” The National Post, April 26, 2002, A19.

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