2006 Strategic Plan

Strategic PlanAUGUST 1 , 2006

The Plan in Brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Mission and Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Setting the Scene . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

The Strategic Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Benchmarking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Strategic Goals and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Goal 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Goal 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Goal 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Goal 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Goal 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Financial Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Benchmarking Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Milwaukee Art Museum Strategic Plan Table of Contents

Table of Contents

The Calatrava–designed Quadracci Pavilion is a huge achievement for Milwaukee and now

serves as the city’s icon. The addition—the first Calatrava in the U.S.—has raised the profile

of the Milwaukee Art Museum locally, regionally, nationally, and internationally. It provides

a platform both in terms of facilities and in reputation for opportunities substantially greater

than could have been contemplated in the past. The Trustees of the past decade have

succeeded in creating a new excitement about Milwaukee and the Museum.

For the past ten years, the expansion project has dominated life at the Museum: for the first

five, it was construction; the second five, retiring the debt—all of which will be repaid by the

end of 2006—and establishing a vibrant exhibitions program for our audiences. This has

required an immense effort from our Trustees and staff.

Now, therefore, is the time to look ahead strategically: to review our mission and values,

which serve to outline our key goals for the next chapter within the broader context

of the community we serve and our peer group of art museums, and to place these

institution-defining strategies into a financial framework both feasible and sustainable.

The overarching goal of this Strategic Plan is to deliver on the promise of the building.

The community has invested $130m in the project. The Quadracci Pavilion is a masterpiece

in its own right. The Reiman Bridge links it dramatically to the downtown. The Cudahy

Gardens set both off with poise. Inside we have a great space for exhibitions in the

Baker/Rowland Galleries, amazing gathering spaces in Windhover Hall and the Baumgartner

and Schroeder Gallerias, the superb Lubar Auditorium, one of the best museum stores in the

country, the café on the lake—and the beautiful parking structure. All of this has raised the

level of expectation about what happens under the dramatic Burke Brise Soleil.

Milwaukee Art Museum Strategic Plan The Plan in Brief 1

The Plan in Brief

While the expansion in facilities has been accompanied by an expansion in people (both

visitors and personnel) and overall budget, we remain under-resourced. Through hard work,

we have continued to meet the high expectations that the Museum has defined for itself. We

are keenly aware of our responsibility, as a recipient of generous private support, to achieve

artistic excellence and to be as accessible to our community as possible. We need to grow into

our new scale and profile. This Plan sets out to solidify our foundations and infrastructure in

curatorial, education, marketing, development, and finances while planning for the future

growth. We are and have been doing well; radical change is not called for.

The Plan’s central goals are organized under five headings, and a financial section shows

the impact of implementing them: a modest increase in costs of some 20% by year five. This

covers, chiefly, rebuilding our curatorial team, investing in collection management, funding

ongoing audience development work, making adequate provision for long-term maintenance

and repairs of the Quadracci Pavilion, and securing some additional resources for core

support functions.

With earned and contributed incomes close to their upper levels—historically and by

comparison with peer art museums—we will eventually have to increase our endowment

both to reduce risk and to meet goals. Pre-Calatrava, our endowment met 20% of operating

expenses compared to only 8% now. Art museums in our peer group on average cover

nearly 25% of their operating expenses out of endowment income.

In the meantime, we will stay within a balanced budget and tailor our initiatives to the

financial conditions facing us year by year. The Plan allows us the flexibility to do so.

The Strategic Plan covers a period of five years, starting with fiscal year 2006/07. The first three

years are mapped out in detail with an indication of actions for years four and five. It is our

intention to review the Plan, adapt it in light of the circumstances, and extend it for an extra

year on an annual basis, with a fundamental review every three or four years.

The Plan has been put together by the Senior Management Team after extensive internal and

external consultation and was facilitated by AEA Consulting.

The key features of the five Strategic Goals can be summarized as follows:


Goal 1: Sharpen the Museum’s artistic focus to build our profile among ourpeers, nationally and internationally.

WE WILL:

• Place a stronger emphasis on the Collection as the foundation of the artistic program,

focusing on our core strengths in the art of Europe and the Americas.

• Plan and implement a gradual redisplay of our main galleries for greater visual and

intellectual impact.

• Continue to mount significant exhibitions for the Baker/Rowland Galleries, drawing more

heavily on our own expertise and Collection, while seeking ways to appeal to the diverse

community.

• Reduce the number of smaller exhibitions in order to reallocate resources to display,

research, and manage the Collection.

• Fill key curatorial posts to support our new emphasis on developing our artistic program

in-house.

Goal 2: Develop the Museum’s role as a premier educational resource and as a gathering place for the community to experience the arts.

WE WILL:

• Aggressively seek to maximize our audience within the parameters of our programmatic

and fiscal directives.

• Commit to market and audience research as central tools for informing a renewed

emphasis on developing our audiences and making future decisions.

• Increase our emphasis on institutional marketing and education to build lasting

relationships with audiences.

• Enhance the environment in and around the Museum, in particular the Quadracci

Pavilion, to deliver an exceptional visitor experience and encourage repeat visits.

• Maximize event-based programming opportunities as a way to bring a wide cross-section

of the community to the Museum to experience what we have to offer.

• Continue extending the reach of our school education and learning programs in line

with national, state, and local agendas.


Goal 3: Strengthen management systems and organizational capacity.

WE WILL:

• Improve our long-range planning and budgeting and cross-departmental work systems.

• Create a master plan for our IT infrastructure to support operational delivery across

the organization.

• Invest in staff training, development, and recognition in order to attract and retain

high-caliber and diverse staff.

Goal 4: Strengthen the Museum’s financial base by achieving a healthy andbalanced mix of funding sources—earned, contributed, and endowment.

WE WILL:

• Balance the budget each year.

• Build our family of major donors.

• Increase our membership base from 20,000 and raise the average per-Member

contribution through a Museum-wide recruitment and cultivation effort.

• Develop earned-income contributions to sustainable levels through enhanced business

practices and a wider product range.

• Prepare for an endowment campaign to establish a more stable and reliable source

of funding that will cover a greater share of our core institutional costs in line with

our historic norm and with not-for-profit and museum standards.

• Develop our relationships with volunteers and support groups to make best use of

opportunities to grow the Collection, cultivate donors, and develop audiences.

Goal 5: Enhance the use of the physical space available to the Museum tomaximize the potential of buildings, facilities, and outdoor spaces for theMuseum and its audiences.

WE WILL:

• Explore the possibility of expanding on-site to address current space needs and achieve

a better functional allocation of spaces within our resources.

• Enhance the Museum’s lakeside setting in order to increase its use as a civic space for

the community.

• Emphasize the importance of appropriate management levels of control over the physical

environment in buildings that are not under the Museum’s control. Stewardship of the

works of art is the Museum’s first priority.


Mission

This statement lays down why the Museum exists, what we do and for whom, and our core values.

The Milwaukee Art Museum collects and preserves art, presenting it to the community

as a vital source of inspiration and education.

TO DO SO, WE:

• Safeguard and preserve works of art in the Collection (including our magnificent building)

and carry out scholarly research;

• Acquire works of art in all media, particularly in areas of Collection strengths;

• Present the Collection, feature exhibitions, and public programs in ways that inform,

stimulate, and entertain a broad and diverse audience, while reserving spaces for quiet

contemplation;

• Educate our audience—particularly the young—to appreciate the creative process and

the power of innovative ideas;

• Contribute, as the icon of the city, to making Milwaukee and the region a better place to

live and work by providing a gathering place for people to experience culture events and

the exchange of ideas.

The audiences we serve are predominantly from our local communities and surrounding

areas. They deserve the best we can provide. By pursuing excellence in everything we do, we

will also grow our national and international reputation and reach.

Milwaukee Art Museum Strategic Plan Mission and Values 5

Mission and Values

Values

WE VALUE:

• the art, first and foremost;

• high professional standards in museum and collection management;

• showing respect, grace, and gratitude to visitors, donors, supporters, volunteers, and staff

• responding to the changing needs of the community we serve;

• fiscal prudence, transparency, and a balanced budget;

• boldness, with measured decision making and high standards of implementation;

• integrity; free and open discussion; a light touch, and a sense of humor;

• involvement of Trustees in the life of the Museum and the contribution of each person’s

talents and influence.

Milwaukee Art Museum Strategic Plan Mission and Values 6

The Strategic Environment

We will continue to face a range of economic, social, and cultural factors and trends beyond

our control. Most of these are challenging. Few are specific to us, and we share these with

many fellow institutions in Milwaukee and art museums across the United States. We are up

against the three Ds of demographics, distance, and the digital revolution and face a range

of art museum-specific challenges affecting our collecting and program activities.

The socio-economics of Milwaukee While we aspire to national and international reputation, our attendance, membership, and

donor base is very local. The further away people are from the Museum, the less likely they

are to come, to become members, and to be donors. Milwaukee is not a tourist destination

so there is no substitute for our local audiences. Thus, the health of the city and county

of Milwaukee and nearby is a matter of great concern to us.

The chart shows that over half of our attendance comes from the nearest counties. Indeed,

17% comes from the two nearest zip codes, and 84% comes from a ninety-mile radius.

Milwaukee Art Museum Strategic Plan Setting the Scene 7

Setting the Scene

0% 10% 20% 30% 40% 50% 60%

Attendance as a Function of Proximity

Milwaukee Area Milwaukee Co. Waukesha/Ozaukee Co.

Remaining WI

Illinois

All Remaining Areas

The city of Milwaukee continues to lose population as others gain. Milwaukee, which was the

eleventh largest city in the nation in 1960, is now twenty-second and falling.

The city of Milwaukee reflects two national demographic trends:

(1) From frostbelt to sunbelt. Those who leave tend to be the relatively more affluent.

(Public Policy Forum Regional Report May 2006).

(2) From city to suburbs and exurbs. All over the U.S., population growth is taking place

in the suburbs and the exurbs—farther and further away from city centers.

Suburbanites who used to commute to the cities are now exurbanites who commute to

office parks, drive to local malls, and base much of their social life around mega-churches.

Arts centers such as the Sharon Lynne Wilson Center in Brookfield provide venues for culture

with easy parking and a new focus for local philanthropy.

The local city, once seen as a place of excitement and glamour—a necessary nerve center—

is now perceived through the lens of the nightly television news as a place of crime and fear,

a place that is not friendly to cars, a place that can be dispensed with. Those who want a dose

of city life and specialty shops go to the big cities, and we have one just down the road.

However, the condo boom is an indication of a revival in the fortunes of the city. As Milwaukee

strives to draw attention to the quality of life, the Quadracci Pavilion is a crucial step in

changing the image of Milwaukee—as much for its neighbors as for the wider world.

CocooningTrend forecaster Faith Popcorn coined the phrase “cocooning” in 1996 to describe the growing

tendency to spend more money on homes and more time in homes for work, relaxation,

and socializing. 9/11 and the digital revolution have accentuated this. The average size of

a new house is now 62% larger than a home built in 1970. The business of installing home

entertainment centers is booming. High-definition, large-size plasma screens and surround

sound fed by broadband cable, satellite, and Netflicks provide an incredible level of sound

and vision. The Internet is becoming ever more addictive as streamed video is added to

sound, text, and more elaborate graphics. We need to make an ally of digital: upgrade the

website and make it more interactive, allow visitors to download gallery tours to their iPods,

use e-marketing more actively. However, we also need to have more events in the Museum

that emphasize human rather than virtual interaction, calling attention to the authenticity

of contact with the one-off original work as opposed to the endlessly repeatable digital.


Common issues facing art museumsThe spiraling inflation in the art market puts increasing pressure on acquisition budgets.

Exhibitions cost more to mount because of higher insurance premiums, transportation costs,

and loan fees. Public scrutiny of museums over restitution and provenance has increased.

The impact of No Child Left Behind and continuing cuts in inner-city education budgets have

squeezed the teaching of the arts in schools—a threat to long-term audience development.

All of these developments are putting pressure on our operating environment and, by and

large, our cost base. We are not alone in facing these, and it is difficult to predict how they

will evolve during the period covered by the Plan. We need to remain alert to evolving

circumstances and respond with foresight and imagination in order to limit the impact.

This also implies sharing experience and working in ever-closer partnerships with our

peers with whom we share these challenges.

On the positive side, we are living in a highly visual culture, and curators and educators

are responding in ever more imaginative ways to the demands of a changing audience.

Exhibitions continue to attract audiences in search of a narrative exploration of an artist,

an era, or a theme and can generate the excitement of a special event. Competing for

people’s time, museums are more adventurous in public programs. In short, the museum

has an increasing role as a cathedral of culture in contemporary society.


Benchmarking

How does the Museum today compare with the Museum before the addition? How does

it compare with other art museums in similar metropolitan centers?

SizeSquare feet/total

1957 Saarinen Building 42,000

1975 Kahler Building 157,000 199,000

2001 Calatrava Building (Garage 48,000) 142,000 341,000

According to the Association of Art Museum Directors statistics, in terms of gross square

footage, we are the sixteenth largest art museum in the U.S. For comparison, the Met is

2.2m square feet, the Art Institute of Chicago is 1.2m, Detroit Institute of Art is 682,000,

and Cleveland Museum of Art is 389,000. (Figures are not completely comparable because

of uneven treatment of parking and sculpture gardens.)


AttendanceThe Museum’s methodology for counting admissions has changed over the years and is now

conservative. The Museum only counts visitors who buy tickets for general admission or for

exhibitions and programs. Visitors who come for drop-in Family Sundays events or to visit the

building are not included, whereas they were counted when we charged for access to the

Quadracci Pavilion up until November 2002. The chart shows monthly attendance (without

tours) from May 2001.


Monthly Attendance Without Tours Since Reopening

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

May

'01

Aug '01

Nov '0

1

Feb '0

2

May

'02

Aug '02

Nov '0

2

Feb '0

3

May

'03

Aug '03

Nov '0

3

Feb '0

4

May

'04

Aug '04

Nov '0

4

Feb '0

5

May

'05

Aug '05

Nov '0

5

Feb '0

6

May

'06

TotalMembers

Rolling AVG

Chihuly

Leo

Brooks

Degas

It is estimated that attendance before 2001 was some 160,000 a year. In 2001/02, it rose to

467,000. In 2002/03, the year of Leonardo da Vinci and the Splendors of Poland (150,000) and

of the Harley 100th anniversary exhibition (about 40,000), attendance rose to 487,000. Since

2003/04, attendances have been around 320,000—though this number may fall to 285,000

in the current year ending August 31.

A paper by Maxwell Anderson, now director of the Indianapolis Museum of Art, argues

that art museums should take into account metrics other than attendance to measure

their performance, such as the quality of the visitor experience and the scholarship of

presentation. These qualitative elements should certainly be measured, but having invested

$130m in the Museum, the community has a legitimate interest in how well we are doing

in connecting with the public. And footfall gives life to the Museum—as well as admission,

store, and café revenue.

We believe that the novelty of coming to see the building has largely worn off, and that in

spite of the factors outlined in the previous section on the strategic environment, we should

aim to grow attendance. This is an ambitious goal. The table below shows attendance at peer

museums as a percentage of the metro area. Many of our peers do not charge for admission

and have high numbers as a result. Taking free museums out, the average is 12%. Milwaukee’s

356,000 visitors in the year analyzed as a percentage of the 1.7m in the metro area was 21%—

much higher. It is also worth noting that we had the fourth highest school attendance.


Museum

Metro population

(millions)

Free

admission

Attendance

('000)

as % of

metro

Schools

('000)

Membership

('000)

Endowment

MV ($m)

Excl.

acqu.

Cincinnatti Art Museum 2.0 yes 271 14% 36 8 49 32

Cleveland Art Museum 2.9 yes 638 22% 65 22 388 217Columbus Museum of Art 1.5 no 157 10% 19 7 9 6

Dayton Art Institute 1.0 yes 272 27% 16 11 23 23Denver Art Museum 2.6 no 488 19% 55 35 7 7

Detroit Institute of Art 5.4 no 303 6% 35 64 49Indianapolis Museum of Art 1.6 no 196 12% 15 6 347 328

Minneapolis Institute of Art 3.0 yes 597 20% 78 26 96 82Nelson Atkins Museum 1.8 yes 311 17% 34 10 242 233

North Carolina Museum of Art 1.2 yes 303 25% 27 16 12 6Portland Art Museum 2.3 no 366 16% 29 19 36 34

St. Louis Art Museum 2.6 yes 421 16% 41 16 72 56Toledo Museum of Art 0.6 yes 339 57% 63 9 154 108

Virginia Museum of Fine Arts 1.0 yes 212 21% 27 12 112 82Wadsworth Atheneum 1.2 no 132 11% 23 8 72 47

AVERAGE 2.0 334 20% 38 16 112 87

Excl. free admission 274 12%

Milwaukee Art Museum 1.7 no 356 21% 51 22 22 19

FinancesThe costs of running the Museum doubled from about $5.4m to $10.4m after the expansion.

Compared with peer museums, Milwaukee’s operating expenses are:

• $36 per visitor versus an average of $45

• $38 per square foot versus an average of $55

• $4,800 per hour open to visitors versus $6,000

On just about any criterion, Milwaukee is doing more with less than all comparable art

museums.

Milwaukee has been successful in building membership, from 11,000 (households) in 2002

to a peak of 23,580 in 2003 down to 20,000 currently—a much smaller decline than in

attendance.

Membership revenue together with the annual campaign has risen strongly from $2m in

2002 to over $4m in the current year. This is in spite of the continuing capital campaign.

The one area where we are below our peers is endowment.

For other details on benchmarking, see appendix.


GOAL 1: Sharpen the Museum’s artistic focus to build our profile among our peers, nationally and internationally.

The central tenet of the curatorial strategy is to balance the continuing importance of

exhibitions with a focus on the Collections as a greater part of the institution’s artistic

program and identity. Furthermore, we need to focus Collection-based activities (presentation,

research, interpretation, acquisition, and collection management) in the areas of greatest

strengths and to build upon those strengths. We need to develop curatorial expertise to

focus on the Collection and individual works that are already of national and international

artistic distinction.

Milwaukee Art Museum Strategic Plan Strategic Goals and Objectives 14

Strategic Goals and Objectives

OBJECTIVE 1.1: Curatorial approach focused on the Collection. RESPONSIBILITY: Joe Ketner

The main collections in the Milwaukee Art Museum are in the art of Europe and the

Americas from the 1800s to the present, with some outstanding individual objects

and collections outside of this area. They are of national and international quality and

are the foundation on which to build the artistic program.

A program that focuses on the Collection needs to manifest itself in two areas: a gradual

reconfiguration of Collection display; and an acquisitions strategy that prioritizes on building

groups of objects within our Collection and on cultivating the collectors’ community.

The redisplay of the Collection can be conceived using the metaphor of a cathedral, with the

core collections occupying the nave and the secondary collections displayed in chapels along

the nave where the works of art are interpreted in the context of the principal collections.

The entry point will feature a Collection Interpretation Center to orient visitors. This would

present works of art that represent the Museum’s core collections and signal the identity

of the institution. To do so, we will initiate a master planning process to develop a cultural

narrative and analyze the space for a reinstallation. Over the next three years, we will test

these ideas in discrete installations of the contemporary art collection and the American

art collection.

As regards acquisition, in order to utilize limited acquisition funds most effectively, we will

build groups of objects around particular time periods, styles, ideas, or media within our

Collection. In this way, groups of objects become bodies of work around which one can

curate exhibitions and produce programs. The foundation of these acquisitions will be

important works by significant artists that epitomize the focus of the acquisition program.

Simultaneously, we will cultivate collectors to acquire collections or significant works that

will complement or supplement existing holdings. Support groups will continue to play

an important role in cultivating and identifying collectors.


ACTION: Reconfigure Collection displays to integrate the finest works of art in a visually

contiguous display that relates a narrative of cultural history.

TIMETABLE

• 2006–07

– Create Collection Interpretation Center (see Objective 2.3)

– Develop intermediate-sized focus gallery

• 2007–08

– Develop reinstallation master plan

– Reinstall contemporary art collection

• 2008–09

– Design reinstallation master plan

– Reinstall integrated American collections, inc. fine, decorative, and folk arts

• 2009–10 & Beyond

– Fundraise for master plan implementation

– Continue phased reinstallation of the Collection

ACTION: Develop acquisition strategy to focus on core collections.

TIMETABLE

• 2006–07

– Draft acquisition plan building on Collection assessments

– Establish collector database

– Initiate collectors-based exhibitions (Conley Asian Collection, Pathways, and Going

Out of Style decorative arts exhibitions)

• 2007–08

– Develop collectors cultivation strategy and implement program

– Create collectors-based exhibition on self-taught artists

OBJECTIVE 1.2: Exhibition program focused on the Collection and areas of expertise, positioning the Museum as an originator of exhibitions.RESPONSIBILITY: Joe Ketner

The Museum’s distinguished 117-year tradition of organizing landmark exhibitions,

predominantly in the arts of Europe and the Americas since 1800, while supplementing the

program with important exhibitions of early European art and the art of other cultures, is a

legacy the Museum will continue. We will organize special exhibitions of the highest quality


that present significant art, artists, and ideas in order to create rewarding art experiences that

make a contribution to the cultural heritage of our diverse communities and to the field of

visual art (see Goal 2.1). We will strengthen the position of the Museum as a recognized

producer of traveling exhibitions.

Over the next three years, we will reduce the number of smaller exhibitions and reallocate

resources. The majority of our exhibitions will emanate from the expertise of the curatorial

staff and the Collection. The temporary exhibitions program will balance the time period,

media, monographic, and thematic shows. We will continue to produce three high-profile,

ambitious shows a year (two of which will, in time, be originated in-house) in the Baker/

Rowland Galleries, capable of attracting significant attention and acting as a major draw for

our audiences. A reduced number of smaller exhibitions, increased public programs, and

ongoing reinstallation of Collection displays will supplement this. The process of organizing

the exhibition schedule will take into account marketing, development, and education

alongside curatorial considerations.

ACTION: Establish exhibitions policy, procedures, and approval process.

TIMETABLE

• 2006–07

– Draft exhibitions philosophy and metrics of measuring success

• 2007–08

– Review and align exhibitions planning/production processes

ACTION: Focus resources on fewer temporary exhibitions.

TIMETABLE

• Current fiscal year

– Reduce print, drawing, and photography exhibitions to three a year

• 2006–07

– Consider rotation gallery for prints, drawings, and photography


OBJECTIVE 1.3: On-site and web research resources on the Collection andexhibitions available to staff and visitors to enhance knowledge, visibility, and access to the assets of the Museum and the expertise of its staff. RESPONSIBILITY: Joe Ketner

The Museum requires a solid foundation of scholarship based on access to information.

The core of this aspect is curatorial research—and the proper resources with which to

perform it. We will develop a body of research resources, both in literary and digital form,

which supports the needs of the staff, docents, and volunteers in their research of the

Collection and exhibitions. In addition, the curatorial staff will produce scholarly studies,

catalogues, and interpretation of the Collection. Our long-term plan is to make the Museum’s

archives available for study and include space for an expanded library and archival study area.

ACTION: Reopen the Museum library and make the Museum’s archives available for

staff and visitors.

TIMETABLE

• 2006–07

– Reopen Museum library

• 2007–08

– Reorganize Museum archives

– Assess space need for expanded library and archival study area and feed into master

planning process (see Goal 5)

ACTION: Research collections to support Collection displays and exhibition program.

TIMETABLE

• 2006–07

– Develop individual research plans

• 2008–09

– Produce new Bradley and Herzfeld Collections catalogues

ACTION: Produce web-based collection catalogue to enhance staff, volunteer, visitor,

and teacher access to the Collection.

TIMETABLE

• 2006–07

– Define needs and priorities with education


• 2007–08

– Development brief

– Secure funds to digitize the Collection in order to foster scholarship, develop teacher

resources, and make the Collection available to staff, volunteers, and visitors

• 2008–09

– Roll out digitization project

• 2009–10

– Continue rollout of digitization project

• 2010–11

– Complete digitization project

OBJECTIVE 1.4: Curatorial departmental expertise aligned with the Museum’sartistic objectives.RESPONSIBILITY: Joe Ketner

The Museum needs qualified, educated people with expertise in key positions that parallel

the core collections and key functions of the curatorial department. We will ensure that

the key functions are adequately staffed for the amount of work that is to be accomplished.

A key priority is to hire a curator to manage the American art collections, one of our most

significant assets. In addition, the curators of modern and contemporary art need a curatorial

assistant to help manage research, administrative, and support group duties. In order to

meet our conservation requirements, we need to increase the hours of the part-time staff.

The exhibition coordinator is critical to managing this central function of the Museum.

Other areas to be examined are the curatorial needs of the folk art/Haitian/and self-taught

collections as well as the print study-room coordinator.

ACTION: Fill key curatorial posts.

TIMETABLE

• 2006–07

– Fill Fellowship in American art post

– Hire curatorial assistant in modern and contemporary art

– Hire assistant curator of early European art


• 2007–08

– Increase hours of part-time conservation staff

– Establish exhibition coordinator position

– Address curatorial needs of folk art/Haitian/and self-taught collections

• 2010–11

– Hire print study-room manager

OBJECTIVE 1.5: Collection-management systems meeting current professional standards.RESPONSIBILITY: Joe Ketner

The collection-management systems need to be updated to keep up with current

professional standards in the basic areas of acquisition, deaccession, conservation, storage,

loans, and rights and reproduction. We will conduct basic provenance research to observe

contemporary ethical and legal obligations with regard to ancient, ethnic, and Nazi–era

works of art.

The conservation, care, and preventive maintenance of the Museum’s greatest asset have

stalled over the past few years due to the time demands of the temporary exhibition program

and budget. It is time to move collection care beyond emergency care to a proactive program

of conservation and preventive maintenance.

ACTION: Develop Collection/archives policies and procedures.

TIMETABLE

• 2006–07

– Draft acquisition policies and procedures

– Begin provenance research project

• 2007–08

– Introduce new Collection database

ACTION: Embark on deaccessioning project in modern art, photography, prints,

and drawings.

TIMETABLE

• 2006–07

– Revise deaccession policies and procedures

• 2007–08

– Initiate deaccession project


ACTION: Embark on Collection conservation and preventive maintenance program.

TIMETABLE

• 2006–07

– Apply for grants for conservation and storage projects

– Develop Collection disaster response plan

• 2007–08

– Update conservation surveys; integrate into Collection database

– Prints and drawings storage project; feasibility of photography cold storage

• 2008–09

– Install photography cold storage

– Initiate routine conservation program; hire assistant

• 2009–10

– Address sculpture storage needs

• 2010–11

– Build painting conservation lab; hire painting conservator


GOAL 2: Develop the Museum’s role as a premiereducational resource and as a gathering place for the community to experience the arts.

The community gathered for the opening of the Calatrava. 32,000 people lined the bridges

and walkways on October 14, 2001, pouring through the Museum as never before. First year

attendance soared to 467,000 from an average annual attendance of approximately 160,000.

Five years later, we continue to attract some 300,000 visitors annually to see feature

exhibitions, attend public programs, and rediscover the Collection. Today, the Museum is a

must-see destination for out-of-town visitors, a compulsory stop for wedding photographs,

and an elegant venue for corporations to entertain. The Museum’s exhibition program has

sparked collaborations with artists and cultural groups throughout the city, and the Museum

has become an important film venue. In the re-opening year, 283 schools from the six-county

radius brought their students to the Museum for a tour or program. Today, 454 schools from

the six-county radius use the Museum, and school tour visits average 55,000 students a year.

We have made great strides. To make the Museum the community’s gathering place of

choice to experience the arts, we must now move beyond single visits and build long-term

relationships with our audiences so that people who come to the Museum, come more often.

Since our visitors are predominantly local, we need to provide more reasons for them to

come back. To make the public feel welcome and engaged throughout their lives, we want

to deepen and extend the ongoing dialogue between the Museum’s community and its

Collection, exhibitions, and programs, always seeking to grow our attendance and build our

membership. For those who visit the Museum in person or online, we will serve as a rich

source of information and a place for stimulation and discussion.


OBJECTIVE 2.1: A holistic approach adopted in marketing, membership, and audience development. RESPONSIBILITY: Elysia Borowy-Reeder

Who is our community? We know our visitors by zip code and ticket categories, but we have

very little information about why people come (or do not come) to the Museum and how often.

Who are we? We are now deservedly known for the Quadracci Pavilion, but we want to use

the building as a beacon so that people get to know what goes on and what is in the Museum.

A new market research strategy will allow us to target potential audiences and make

decisions on the basis of better information. An institution-wide approach to marketing

will promote the Museum as inviting, relevant, and meaningful to all, increasing the number

of first-time visitors and encouraging them to become Members and visit often.

Part of the challenge is the promotion of Milwaukee as a destination. The Mayor does not

currently have a staff or budget for promoting the city: this was delegated to Visit Milwaukee.

Visit Milwaukee concentrates on the convention business. The State Tourism Department

has a $10.6m promotion budget controlled from Madison which should be tapped into.

ACTION: Develop our market research capability.

TIMETABLE

• 2006–07

– Work with Northwestern Mutual to establish visitor baseline and client profile, and

create a market/visitor research plan and methodology

– Access external research (Cultural Alliance/UPAF) and establish potential market growth

– Clarify primary, secondary, and tertiary markets

• 2007–08

– Roll out audience/visitor research methodology


ACTION: Develop an institutional marketing and communications plan and strategy that

maintains a loyal audience and builds deeper relationships with all who visit.

TIMETABLE

• 2007–08

– Conduct focus groups—test product, positioning, and barriers

– Draft institutional marketing plan

– Roll out marketing plan, e.g.:

– Branding exercise (incl. unified graphic identity program)

– Concerted media effort on the Collection and the Museum’s architectural

environment as a destination

– Expand traditional and web-based marketing efforts to build community support

and media coverage locally, nationally, and internationally

– Build Marketing and Communications team capacity for outreach and pitching.

– Hire marketing assistant.

• 2008–09

– Continue roll out of marketing plan

ACTION: Develop institutional approach to new audiences to make the Museum a place

where people of all ages, physical abilities, ethnicities, and backgrounds feel welcome

and find inspiration.

TIMETABLE

• 2007–08

– Establish community task force informed by Museum research

– Develop outreach plan that strengthens relationships with community-based

organizations through new outreach initiatives, including promoting discounted

memberships and other key initiatives targeted to developing audiences

• 2008–09

– Hire community relations coordinator to fulfill outreach plan

ACTION: Work with the state tourism authorities to allocate a share of its $10.6m

promotion budget to the cultural assets of Milwaukee.

TIMETABLE

• Current year

– Work with Tourism Marketing Committee to encourage a focus on Milwaukee and

its culture in collaboration with Pier Wisconsin and the Harley Davidson Museum


OBJECTIVE 2.2: An enhanced experience for the visitor fulfills the promise of making the Museum a gathering place for the community. RESPONSIBILITY: Gwen Benner and Brigid Globensky

Positive visitor experiences are paramount to attracting and retaining visitors as Members

and repeat visitors, thereby servicing our community and sustaining attendance and earned

income. The experience begins with wayfinding to the Museum and encompasses obstacles

of where to park and finding an entrance before the visitor is even inside our doors.

Once inside, a visitor-friendly environment must be a focus through continued customer

service training, improved circulation, and amenities throughout the campus. With the

development of Pier Wisconsin, our campus outlook now expands to include opportunities

to promote and unite a lakefront corridor of attractions. Enlivening the programming in

Windhover Hall and the outdoor campus will serve to cement the Museum as the place

to engage with the arts and to exchange ideas.

ACTION: Enhance the physical environment of the Quadracci Pavilion with features that

address aesthetics, acoustics, and personal comfort.

TIMETABLE

• 2006–07

– Reevaluate the David Kahler internal design review

– Establish working group with design professionals

– Develop and cost proposals for long-term solutions

– Address acoustics for Quadracci Pavilion meeting rooms

• 2007–08

– Approve, raise funds, and start implementation

• 2008–11

– Roll out plan

ACTION: Develop plan for outside infrastructure to accommodate visitors’ access from

north, south, east, and west; on foot and/or bike; and by vehicle. Collaborate with

neighboring attractions to develop lakefront corridor. Develop outdoor amenities,

seating, and refreshments to bring more visitors to our campus.

TIMETABLE

• 2006–07

– Develop joint public programs and promotion with Pier Wisconsin and other neighbors


• 2008–09

– Establish working group with design professionals

– Develop and cost proposals

• 2009–10

– Approve, raise funds, and start implementation

• 2009–11

– Roll out plan

ACTION: Maximize effectiveness of Windhover Hall for Museum programming and

gathering place for the community.

TIMETABLE

• 2006–07

– Evaluate the impact of increased Museum activities on space utilization for facilities

rentals. Determine occupancy limits, identify conflicts, and seize opportunities.

• 2007–08

– Expand/develop programs as appropriate, maximizing impact and return on effort—

hire public programmer and additional support for events department

– Expand film programs and performance-based events in collaboration with artists

and other cultural organizations

• 2008–09

– Evaluate performance-based events and overall use of Windhover Hall

ACTION: Improve visitor wayfinding to the Museum outside and inside the Museum.

TIMETABLE

• 2006–07

– Reevaluate and update signage system, internal and external to building

– Improve traffic circulation and access via automobile, public transportation, foot,

and bike, mindful of short-term and long-term needs of Museum and neighbors

• 2007–08

– Evaluate cost/benefit of street banners and highway signage to implement

improvements to circulation. Communicate directions/wayfinding to the Museum

through web and print material support.

– Take advantage of multiple entrances to provide easier, more aesthetic and marketed

access for visitors at each point


OBJECTIVE 2.3: Improved visitor orientation within the Collection, enhancedgallery interpretation strategies, and expanded educational programs animatethe art and encourage deeper connections between visitors and the art.RESPONSIBILITY: Brigid Globensky

In order to generate interest in the Collection, we need to develop interpretive programs

and events around aspects of it and to link Collection displays with temporary exhibitions.

The premise is to animate or activate the ways in which our community at all ages interacts

with the Collection. We begin by placing the visitor in charge of his/her own experience,

providing new adult programs and interpretive strategies including innovative use of

interactive technologies in galleries and public spaces.

The Museum’s historically strong school program continues to be the core of the education

department. We intend to deepen our reach in the school system by aligning our programs

with federal, state, and local education agendas. Over the next three years, we will increase

our programs to promote literacy through the arts: establish a strong early childhood

education program in collaboration with Betty Brinn Children’s Museum and other pre-school

sites throughout Milwaukee, develop additional high school programs for students in

Milwaukee and throughout the region during and after school, and develop online resources

tied to the Museum’s library and Collection resources.

With the completion of the Calatrava building and the renovation of the War Memorial offices,

the Museum lost its studio spaces. We need to develop studio facilities adjacent to Museum

galleries in order to offer a full complement of education programs for school tours and youth

and family programs. Needs for additional space for the Collection Interpretation Center,

expanded library, and archives will be addressed in the master plan referenced in Goal 5.


ACTION: Improve visitor orientation and programs for the Collection and provide new

interpretive strategies, including innovative use of interactive technologies in galleries

and public spaces.

TIMETABLE

• 2006–07

– Confirm brief for Collection Interpretation Center

– Develop cross-departmental (education, marketing, curatorial) approach in all aspects

of exhibition presentation

– Create programs around the Sol LeWitt wall drawing, the holiday Creche, and the

Asian collection installation

– Test iPod download for Bacon and Leiter exhibitions

• 2007–08

– Commission Collection Interpretation Center design, execute, and open

– Expand audio tour to include architecture tour and other audio/visual updates

• 2008–09

– Generate programs around the reinstallation of the American collections

• 2009–10

– Install video postcard on Reiman Bridge

ACTION: Increase adult education opportunities for donors, Members, and visitors

in the galleries.

TIMETABLE

• 2006–07

– Cut back studio program to provide staff for increased adult gallery programs

– Work with Development to provide art education opportunities for donors

and Members to increase understanding of the Collection

– Work with Marketing and visitor research to develop and roll out adult

education programs

• 2007–08

– Continue to roll out adult education programs

– Create programs in conjunction with the self-taught exhibition and collections, the

100th Anniversary of the Eight, and contemporary photography; add part-time staff

for increased adult and Collection programs

• 2008–09

– Evaluate adult education programs at the Museum


ACTION: Provide better on-site provision and infrastructure for families.

TIMETABLE

• 2008–09

– Develop brief for establishing a Family Center as hands-on gallery

• 2009–10

– Hire design team

• 2010–11

– Fundraise and roll out

ACTION: Link family and youth art-making activities with school programs at the Museum.

TIMETABLE

• 2006–07

– Expand school Family Night programs

– Grow community collaborations that link the Museum to community and family

programs; for example, deliver Art Aloud to all branch libraries, host Boys and Girls

Club introduction days and free Family Sundays admissions for club members’

families, grow Girl Scout program

– Refresh and deliver self-guiding materials for families. Launch Passport Art Packs

program at pre-school sites.

– Showcase student art tied to Museum programs at the Museum through education

hallway rotations, scholastic art competition, and student performances

• 2007–08

– Continue rollout

• 2008–09

– Roll out and evaluate

ACTION: Increase school programs promoting literacy through the arts in order to align

with federal, state, and local education emphasis on literacy.

TIMETABLE

• 2006–07

– Support Creative SHARP’s program increases and preparation for the future

of the program

– Host Young Authors program and grow Wisconsin Writes

– Grow junior docent program

• 2007–09

– Evaluate


ACTION: Establish early childhood programs in collaboration with Betty Brinn Children’s

Museum and other pre-school sites.

TIMETABLE

• 2006–07

– Develop pre-kindergarten program

• 2007–08

– Promote school program assistant educator to full-time

– Roll out program

• 2008–09

– Evaluate

ACTION: Develop high school program for students in Milwaukee and throughout the

region during and after school.

TIMETABLE

• 2006–07

– Research needs and best practices

– Develop teen program

– Secure grants

• 2007–08

– Hire staff to run program

– Implement teen program

• 2008–09

– Evaluate

ACTION: Develop web-based materials for distance learning tied to registrar and

library resources.

TIMETABLE

• 2006–07

– Establish internal task force with professional support

• 2007–08

– Develop brief and plan

– Apply for grants

• 2008–09

– Start rollout


GOAL 3: Strengthen management systems andorganizational capacity.

To achieve all the goals in this Strategic Plan and fulfill our Mission as set forth, all systems and

organizational capacities need to be at optimal performance and efficiency. It is imperative

that senior management improve cross-departmental, long-range planning. This applies

to the annual budget process, exhibition scheduling/planning and other program planning,

and development/fundraising planning to support these. Additionally, the establishment of

institutional metrics of success alongside attendance and financial targets will create markers

for measuring our ability to meet strategic milestones and operational performance targets.

To guide the institution, sound policies, procedures, effective communication, and adequate

technology are essential. And we need to secure and retain top caliber, well-trained staff who

reflect the diversity of the community we wish to serve.


OBJECTIVE 3.1: Institutional commitment to cross-department, multi-year,long-range planning and evaluation.RESPONSIBILITY: Linda Daley—Senior Management Team

The Museum’s planning function has been underdeveloped when it comes to long-range

planning. The lack of a strategic plan has meant that commitments have been entered into

without reference to overarching institutional goals and funding availability. Looking ahead,

and starting with this Strategic Plan, we need to establish a minimum three-year rolling

budget as a framework for coordinated decision making across the organization.

ACTION: Align annual work plans with Strategic Plan goals and review annual

budget/planning process.

TIMETABLE


– Agree upon need and approach for incorporating strategic goals as well as setting

priorities for goals and costs associated

• 2006–07

– Enhance exhibition planning/budgeting procedures by moving to multi-year plan and

by convening cross-departmental exhibition-planning teams (marketing, curatorial,

education, development)

– Extend development plan to multi-year exercise to provide sufficient lead time for

fundraising future sponsorships and institutional needs

– Review effectiveness of communication and decision-making channels to facilitate

cross-departmental working

ACTION: Establish institutional metrics of success.

TIMETABLE


– Agree on principle and approach

• 2006–07

– Complete individual work on definitions/measuring systems

– Build metrics into exhibition, program, and staff planning and evaluations


OBJECTIVE 3.2: Financial management tools reveal the “economics” of theMuseum to assist strategic decisions.RESPONSIBILITY: Linda Daley

By developing an activity-based financial model (see section on Financial Assessment),

developed for the purpose of this Strategic Plan and linking the model to the management

account structure, we will enhance our ability to assess more accurately and articulate the

financial/funding implications of our operational and program decisions. This will put us in a

better position to make strategic decisions about the allocation of our resources and also to

underpin our case for funding to our donors, many of whom wish to see a clear link between

their contributions and the cost of the activities they have chosen to support.

ACTION: Develop activity-based financial model and integrate with management

accounting systems.

TIMETABLE


– Establish activity-based financial model as part of strategic planning process

• 2006–07

– Develop and test management accounting systems to allow activity-based analysis

OBJECTIVE 3.3: A Museum-wide technology master plan supports operations.RESPONSIBILITY: Linda Daley

The Museum needs to make sure that we are providing adequate and appropriate technology

equipment, both hardware and software, across all areas of the institution. It is imperative

that data is protected and that we provide financial privacy to both donors and customers.

In addition, we need to remain competitive by staying on top of technological advances

as well as providing proper tools for analysis.

In order to achieve these goals, we need to complete an overall audit of the information

technology infrastructure and, from that audit, finalize and implement a technology master

plan. The master plan will enable the Museum to realize the fullest potential from its resources

and enhance the visitor experience.


ACTION: Undertake IT audit and develop IT investment plan.

TIMETABLE

• 2006–07

– Establish brief for audit

• 2007–08

– Commission IT audit—develop master plan

• 2008–09

– Roll out IT plan

OBJECTIVE 3.4: A diverse top-caliber staff exceptional in their expertise andrecognized as major contributors to the future growth of the Museum.RESPONSIBILITY: Jan Schmidt

The Museum’s staff size increased from 92 in FY2000 to currently 156 (full-time equivalent) as

a result of the Museum’s physical expansion, the move to seven-day operation, and taking the

café in-house. As we move forward, we need to align our staff—its diversity, compensation,

advancement, training, and professional development—with the level of expertise required

to meet our strategic goals.

ACTION: Increase staff diversity Museum-wide to mirror the increasingly diverse local

population and to provide a workplace that reflects the contributions of a broader array

of constituents.

TIMETABLE


– Update Museum’s Affirmative Action Plan

• 2006–07

– Implement plan; for example, convene Affirmative Action Committee, network

with Marquette University and UWM, and expand recruitment outlets

– Seek scholarships to enhance diversity in Museum internship program


ACTION: Improve training and expand professional development to foster an enriching

work environment that supports the Museum’s strategic goals.

TIMETABLE

• 2006–07

– Update staff orientation

– Create in-house training and development designed to advance institutional

knowledge, sharing of information, and cross-departmental communication

– Promote human resources assistant to full-time and add clerical help—half-time

– Produce and distribute Museum ready-reference guide

– Implement cross-departmental ambassador programs with Visitor Operations

• 2007–08

– Strengthen management training, coaching, and mentoring

ACTION: Recognize employees based on merit and identify advancement opportunities

for employees where possible.

TIMETABLE

• 2006–07

– Identify means of reward and recognition for employees

– Develop multi-year plan for employee recognition and advancement

• 2007–08

– Roll out plan


GOAL 4: Keep a balanced budget while strengtheningthe Museum’s financial base by achieving a healthyand balanced mix of funding sources—earned,contributed, and endowment.

The Calatrava development and the ensuing growth in the Museum’s program activity

resulted in a doubling of the annual operating budget to $10.4m. Implementing the goals

identified in this Strategic Plan will result in a further increase to $12.6m over a period of

five years (see Financial Assessment section for details). The funding mix under which the

Museum has operated in recent years puts a heavy reliance on both earned and annual

campaign income, with endowment contributing only 8–9% towards the total (against 20%

before the Calatrava). This mix is also out of kilter with that of nine chosen peer institutions

and creates a heavy reliance on the year-to-year generosity of the community and the

consumer appetite. The potential to grow earned income substantially from significant visitor

growth and an increasingly competitive rentals business is limited. The reliance on the annual

campaign as the balancing factor is high risk. Growing the annual budget sustainably will

therefore require a gradual rebalancing of the Museum’s funding sources, consolidating

earned income at high levels, increasing the pool of high-level donors contributing to the

annual campaign, and most importantly, growing the endowment to reduce risk and

to cover a greater share of the increased cost of fulfilling this strategy.

Now that the building fund is completed and all debt has been paid, we are in a strong

position to engage donors in supporting the operation of the Museum and our programs.

Over the past ten years, while the Museum had been raising capital funds, the annual

campaign grew from $1.4m in 1996 to its 2006 goal of $4.5m plus an additional $1.5m

to be raised for programs and exhibitions.


OBJECTIVE 4.1: Operating within a balanced budget whatever the circumstances.RESPONSIBILITY: Senior Management

We are committed to living within our means at any point during the life of this Plan. This

does not mean curtailing our ambitions but being clear that we can only commit to spending

extra resources if we have identified the revenue sources to fund them. This may mean

reviewing our timetable for implementation of certain initiatives and investments. It will also

mean making provision for unforeseen changes in circumstances and establishing a clear

sense of priorities, which will help with course adjustments, should they become necessary.

ACTION: Budget conservatively; build in contingency.

TIMETABLE

• 2006–11

– Continue to monitor income and expenses on a monthly basis and make

needed adjustments

OBJECTIVE 4.2: Contributed income potential enhanced through new andstrengthened relationships with donors, supporters, and Members.RESPONSIBILITY: Mary Louise Mussoline (with Joe Ketner for special interest groups)

Total dollars raised through membership and the annual campaign has doubled over the past

five years. There has been growth in all donor levels. However, the annual fund is increasingly

supported by President’s Circle level donors who contribute $2,500 or more. From 2003 to

2005, this level of the annual fund grew from 39% to 50% of total funds raised. This is a

positive pattern for the development program of the Museum. Best fundraising practice

calls for major donors to contribute 60% of funds raised. However, the Museum has a small

number and a small percentage of donors/Members at these higher giving levels. Efforts will

continue to focus on increasing the number of donors at the higher levels. Special attention

will be paid to building those relationships and how we best meet donor interests. Future

growth for the Museum will require more supporters at these levels.


Mid-level donors in the range of $350 to $2,499 contributed 20% of the funds raised, which is

in line with best practice standards. Again, the number of donors in these categories is small

and should increase. Donors at this level indicate an interest in giving more than just basic

membership and will become more involved in the Museum if properly engaged.

The Museum’s membership base contributing basic membership dues up to $349 has

represented 27% of funds raised in 2000 to a high of 42% of funds raised in 2003 to 31% in

2005. Those figures correspond to a growing number of donors/Members at this level as well.

Prior to the Calatrava opening, the total number of donors/Members was 11,000; rose to a

high of 23,580 in 2003; and now is at about 20,000. To plan for future growth and stabilization,

the Museum needs a thorough review of the membership program to make adjustments in

how it acquires and retains Members. It is necessary to have a strong program to bring new

Members in at the entry levels in order to grow the base. This group will upgrade and

ultimately become our future major donors.

To boost increased funds from contributed revenue, the Museum will continue efforts on

all major markets—major individual donors, planned giving donors, corporate sponsorship,

foundations, upgrading donors, government, and membership.

To achieve all of the above and adopt a holistic approach to fundraising, we need all Museum

departments to collaborate so that all staff and volunteers working on-site share the

responsibility for acquiring and maintaining Members and donors.

ACTION: Increase major donor base and its contribution to the annual campaign.

TIMETABLE

• 2006–07 and following years

– Improve internal data capture to enhance communication and relationships with

existing and potential donors across the organization

– Engage volunteers to identify and cultivate donors in the mid- to higher-level

categories both from existing donor families and new prospects

– Enhance benefits to higher-level donors after targeted comparator and market

research

– Allocate donor/prospect research tasks to dedicated staff member

– Increase the number of donors and the average contribution in the top giving levels


ACTION: Conduct market research to design and implement programs to bring mid-level

donors closer to the Museum and increase giving levels.

TIMETABLE

• 2006–07 and following years

– Research giving history and activities of mid-level donors regarding use of the Museum

– Establish more personalized solicitation and recognition for this group

– Maximize every opportunity to enhance the visitor experience and support

membership growth and service collaborations across departments

– Emphasize the value of upgrading from basic membership to higher levels

– Use the research findings to strengthen the case for supporting the Museum

ACTION: Grow the membership base above 20,000 and increase per-member contribution

through Museum-wide effort to sell the Museum as a place to belong.

TIMETABLE

• 2006–07

– Evaluate the membership program through an in-depth review. Develop plan for

growth and retention.

– Review opportunities to enhance the visitor experience and support membership

growth and service collaboration across departments

– Focus on expanding business memberships and employee use of benefits

– Development department to work with Education and Marketing to implement methods

to increase the involvement and participation of Members in the Museum programs

• 2007–08

– Begin implementation of full membership strategy

ACTION: Development capacity increased—systems, staffing, volunteer support—

to support the fundraising effort.

TIMETABLE


– Adjust annual development plan to encompass all contributed income goals and

matching anticipated donor sources as part of the budgeting process

• 2006–07

– Monitor capacity of Pledgemaker System and develop accurate data reports

– Investigate effectiveness of current online giving program

– Review development department staffing requirements in relation to Strategic Plan

goals and future needs

– Establish fully operational Development Committee


• 2007–08

– Recruit and hire new staff post for major gifts and other posts as needed

– Convert to Raiser’s Edge

– Increase use of alternative methods of solicitation and communication such as online

giving and email communication

4.3 OBJECTIVE: Strong relationships with support groups maximizeopportunities for the development of the Collection, donor cultivation, and audience development. RESPONSIBILITY: Mary Louise Mussoline and Joe Ketner

Friends of Art, the Museum’s special events volunteer organization, is 50 years old in 2006.

It raises money for acquisitions and for exhibitions through production of major events, and

has been an excellent source of developing long-term Museum supporters. Both the Museum

and FOA will benefit from an alignment of goals, special events, joint sponsorship solicitation,

working practices, and an understanding of the direct and opportunity costs involved.

The Museum also has eight additional special interest groups that raise money and

sponsor lectures and other programs in addition to making acquisitions in the areas of their

specialisms. They are a prime way of developing relationships with current and potential

collectors. They themselves require and deserve support from Museum staff. There is great

scope for efficiencies and collaboration in areas such as membership recruitment and

administration, and for standardizing by-laws, membership rates, and procedures. The costs

and activities of all Museum support and special interest groups will be reviewed, evaluated,

and altered to maximize opportunities for the groups and the Museum.

ACTION: Review effectiveness of support group and special interest group staffing model

and efficiencies of combining some staff functions.

TIMETABLE

• 2006–07

– Study the models used by peer institutions

– Examine direct and opportunity costs of support and special interest groups

– Work with FOA and interest groups to develop or review annual plan and target goals

• 2007–08

– Implement best model for support group and special interest group staffing to best

meet annual plan and financial goals


OBJECTIVE 4.4: Museum endowment large enough to reduce risk and cover the increased operating costs of key programmatic and operational initiatives.RESPONSIBILITY: Mary Louise Mussoline

In order to achieve a healthy balance among income sources, the Museum’s operating

endowment must grow to relieve the Museum’s annual reliance on the annual campaign and

secure the funding of a greater portion of core operational costs more in line with its peer

group. A focus on endowment gifts will shift the emphasis in solicitation and in giving from

the immediacy of cash gifts to the long-term planning required for life gifts. Donors will

increasingly make legacy gifts of monetary and art assets.

ACTION: Prepare the organization for an endowment campaign and set endowment

target goals.

TIMETABLE


– Determine future endowment goal based on approved Strategic Plan.

The timing of what comes next depends on a number of factors such as the health of the

economy and the appetite of major potential funders and of the Board to move forward.

The steps that will be required are:

– Implement donor communication strategies focusing on the importance

of endowment to ensure future growth and stability

– Promote Legacy Society

– Increase interaction and communication with long-time Members

– Establish leadership model to guide the campaign, prepare case for endowment

campaign, conduct feasibility study, and confirm realistic goal and timetable

– Enhance staffing and volunteer structure to manage campaign

– Begin quiet phase of campaign through leadership gifts

– When appropriate, announce campaign and move ahead with solicitations


OBJECTIVE 4.5: Earned income developed to sustainable level.RESPONSIBILITY: Gwen Benner

Sustained revenue and managed growth from earned income will capitalize on the brand

of the Museum and business enterprises as destinations, with less reliance on pure Museum

attendance. This will be achieved through focused objectives, intelligent branding, direct

marketing support, signature events and promotions, and business-savvy collaborations.

Our largest growth opportunity of event rentals and catering must be balanced with the

needs of Museum programming.

Optimizing economic contributions to the Museum will require ongoing assessment of space

utilization and design, efficient operations, and staff structure. Spotlighting these elements

will increase contributions to the bottom line. We cannot lose sight of the importance of the

quality of each encounter with our staff and products. Elevating the visitor’s sense of welcome

and human experience will extend his/her stay and supplement our ability to capture higher

numbers of exhibition/event attendance, repeat visits, membership sales, facility rentals, and

café/store customers.

ACTION: Review and enhance business practices to improve contribution to the bottom

line and concentrate on maximizing the returns on real-estate spaces, staffing structure,

operational efficiencies, optimal product mix, presentation, pricing, and promotion

in both the Museum and via e-commerce.

TIMETABLE

• 2006–07

– Develop mission/vision for each business component that is compatible with

institution and provide primary business focus

– Establish peer advisory group with regional museums to compare and share

best practices

– Build e-commerce strength beyond informational website to maximize membership,

ticket sales, retail revenue, facility rental, and catering business

• 2007–08

– Reassess store and café operations: 1) staff structure and 2) design, layout, and

organization of real estate


ACTION: Enhance and widen our product range—through Collection-based custom

product development, expanding number of venues and depth of services, establishing

signature events—and develop plan of collaborations/partnerships that cross-promote

Museum, its business components, and support development opportunities.

TIMETABLE

• 2006–07

– Establish signature events for store and café

– Develop collaborations/partnerships for cross promotion and development

opportunities

– Grow café and catering capacity with additional dining/rental spaces

• 2007–08

– Develop merchandising plan to feature and promote Collection with product

development in store mix

ACTION: Create destination businesses to define who we are and what we are doing that

is unique to get more customers in the door and out the door with smiles on their faces.

TIMETABLE

• 2006–07

– Integrate direct marketing of store, café, and events into Museum-wide marketing

plan for internal and external avenues

• 2007–08

– In conjunction with plans for developing institutional brand, create integrated

but distinctive brand for store, café, and events


GOAL 5: Enhance the use of the physical spaceavailable to the Museum in a way that maximizes thepotential of buildings, facilities, and outdoor spacesfor the purposes of the Museum and its audiences.

The Plan identifies a strong need for a modest amount of extra space for the Collection,

for the library, and for education space.

Longer term, well beyond the timeframe of this Plan, the space for the Museum’s next major

expansion is the front part of the north car park, currently leased from the County. It is

important to retain control of this for the future.

The Saarinen (1957) and Kahler (1975) buildings that make up the War Memorial complex

are in need of fabric and infrastructure work. They can leak in heavy rains. The War Memorial

Corporation has a committee to consider major changes to the complex that would address

this, but that also envisaged creating an atrium on Fitch plaza, building a new parking and

office building, and making a new north entrance. Funding from the County to prepare a

feasibility and design study for this ambitious scheme was denied, so there is no plan in place

to address the problems of the fabric.

The HVAC systems in the Kahler and Saarinen buildings are under the control of the War

Memorial Center (WMC). The County has begun the process of renovating them. The Museum

needs to be actively involved in the planning and needs to be more closely involved with the

WMC over operations in order to ensure that the Museum as steward for a collection that is

worth some $500m has an appropriate level of control.

There is a shared ambition from Trustees and staff to find a way of animating the outside

spaces around the Quadracci Pavilion during the summer. We will continue to experiment,

and will work with Pier Wisconsin on making the wider campus more attractive.


OBJECTIVE 5.1: The art in the Saarinen and Kahler buildings properly safeguarded. RESPONSIBILITY: David Gordon

The Milwaukee Art Museum is one of the few museums in the world not to have control over

the environmental conditions in which its collection is kept: The WMC controls the HVAC

systems in the Saarinen and Kahler buildings, and the Museum controls the systems only in

the Quadracci Pavilion. The County has embarked on the replacement of the HVAC systems,

which are well past their recommended lives.

ACTION: Ensure that the County and WMC involve the Museum in the planning of the

new system; work closely with the WMC on day-to-day operations.

TIMETABLE

• Current fiscal year and 2006–07

– Monthly meeting established with WMC personnel and Museum facilities and

curatorial staff to ensure close planning and operations of Saarinen and Kahler

buildings; this committee to be formalized.

OBJECTIVE 5.2: More inside space found—short term.RESPONSIBILITY: David Gordon

The Plan identifies a strong need for a modest amount of extra space for Collection display

and storage, for the library, and for education studios (see Goals 1 and 2). This needs to be

addressed holistically, taking into account the development potential within the existing

footprint of the Museum and War Memorial site.

ACTION: Carry out a feasibility study with the help of architects on making better use

of the existing space and investigating space that might become available, improving

circulation in the galleries.

TIMETABLE

• 2006–07

– Develop brief for master plan

• 2007–08

– Commission feasibility study

• 2008–09

– Ratify master plan and integrate into reinstallation plan


• 2009–10

– Raise funds

• 2010–11

– Roll out implementation of plan

OBJECTIVE 5.3: Options open for long-term expansion.RESPONSIBILITY: David Gordon

Museums grow. They grow in spurts. War Memorial Center, 1957. Kahler addition,1975.

Quadracci Pavilion, 2001. The next major expansion falls well outside the timescale of this

Strategic Plan—but eventually the need for a large amount of new space might become

compelling. The Museum has a lease from the County on part of the north car park.

This should not be given up. The War Memorial Corporation has ideas of its own for the

long-term development of the building and the site.

ACTION: A high-level group of Museum Trustees, WMC board members, and County

officials and supervisors to consider the management of operations and maintenance

and the preparation of a long-range master plan for the site together with a capital

funding scheme.

TIMETABLE

• 2006–07

– Identify and convene planning group

• 2007–08

– Continue planning

• 2008–09

– Develop plan


OBJECTIVE 5.4: Outdoors is animated.RESPONSIBILITY: David Gordon

The need to animate the outdoors of the Museum is a shared goal of Trustees and staff and

is discussed programmatically in Goal 2.2. The Cudahy Gardens setting was designed by

Dan Kiley as a rectilinear counterpoint to the curvaceous Calatrava building—a place for

quiet contemplation rather than a piazza.

However, there are opportunities to enhance the link between the lakefront and the South

Terrace so that passers-by could get to the summer outdoor food service on the Terrace and

from there to the front door; and Pier Wisconsin should increase the traffic on the lakefront.

We will seek ways of working together.

ACTION: Investigate a link between the lakefront and the South Terrace; work with

Pier Wisconsin.

TIMETABLE

• 2007–08

– Work with local school of architecture on design ideas

• 2008–09

– Raise funds for design and implementation


This section provides an assessment of the financial impact of this Strategic Plan. It is based

on a “bottom up” review of the cost (net of revenue opportunities), arising from the proposed

set of actions set out in the previous section. This analysis has been fed into a financial model,

which establishes the “net” cost of delivering the Museum’s key functions and how these are

funded by the available mix of earned, contributed, and endowment incomes. This has

allowed us to test the sustainability of the Museum’s present funding mix and refine the

assessment of the long-term endowment target, which we need to set ourselves to deliver

our Mission in a lower-risk environment than at present.

Looking at the Museum by function instead of by department

As part of the strategic planning process, an economic model has been created that relates

the costs of discrete functions of the institution to the income directly attributable to these

costs, and establishes the remaining net funding requirement to be met out of the

unrestricted sources of earned and contributed incomes and the endowment.

We have tried to analyze the costs of the Museum by function rather than by department,

showing mission-related activities separate from support. To do so, overheads have been

allocated where appropriate based on estimates of, for instance, staff time spent on certain

functions. As a result, the exercise is based on judgment and must be regarded as much as an

art as a science. We intend to continue developing this model and testing its use as a strategic

management tool in the future.

The functional areas have been defined as follows:

Stewardship includes all the costs related to maintaining and developing the Collection and

its physical environment.

Milwaukee Art Museum Strategic Plan Financial Assessment 48

Financial Assessment

Public access groups the costs related to keeping the building open to the public and

are largely those of operating the Quadracci Pavilion and other public areas; income

includes the profit of the store and café (facilities rental income is shown separately

as net auxiliary activities).

Exhibitions include all direct costs related to our exhibitions program (including marketing)

and an allocation of staff costs based on estimated curatorial time; attributable income

includes sponsorship and other direct funding support, all exhibition-related admissions

revenue, and a share of store profits.

Education includes the cost of delivering all public programs; attributable income includes

all project grants and other sources of restricted funding to support these.

Administrative includes the cost of the finance, development, and director’s departments.

The model enables us to compare the “economics” of the Museum before the Calatrava

expansion to the present situation, and to project forward over the period of the Strategic

Plan. The projections have been based on the following assumptions:

• All costs and revenues have been projected based on current price levels with no

provision made for inflation.

• The Museum continues to operate broadly along the same operating model as at present

with no radical change in the way we deliver our core functions.

• All cost variations result from a line-by-line assessment of the implications of actions set

out in the Plan. A distinction has been made between one-off costs of initiatives and

investments and ongoing changes in operating cost levels.

• Contributed income projections are based on a line-by-line assessment of the

funding potential linked to specific actions and our ability to build major donors

and membership income.

• Key visitor revenue projections are conservatively based on current annual visitor levels of

300,000.

• Other earned revenue projections are based on a reasonable assessment of the market

development potential and return on the investment in business enterprises.

The three tables that follow show the finances of the Museum analyzed by function for

1999/2000, the last full year before the addition, the current year 2005/06, and the last year

of the plan 2010/11.



Adm

inis

trat

ive

Am

ount

%(a

lso

Dev

elop

)St

ewar

dshi

pP

ublic

Acc

ess

Exh

ibit

ion

Edu

c/P

ublic

Dir

ect

Cos

ts

Staf

f3,

300,

824

61.0

4%1,

331,

644

478,

518

394,

142

538,

252

558,

268

Non

Sta

ff2,

107,

107

38.9

6%62

1,71

268

4,33

317

9,88

023

5,44

338

5,73

9

Tot

al C

osts

5,40

7,93

110

0.00

%1,

953,

356

1,16

2,85

157

4,02

277

3,69

594

4,00

8

36.1

2%21

.50%

10.6

1%14

.31%

17.4

6%

Inco

me

Dir

ectl

y A

ttri

buta

ble:

Ear

ned

Inco

me

669,

814

12.3

9%-

16,9

5319

8,09

011

5,60

233

9,16

9

Con

trib

uted

Inc

ome

1,59

0,79

729

.42%

156,

519

1,03

0,01

3-

204,

329

199,

936

End

owm

ent

Dis

trib

utio

n &

Inv

estm

ent

Inco

me

1,10

2,71

420

.39%

1,03

7,44

617

,769

-32

,999

14,5

00

Tot

al I

ncom

e3,

363,

325

62.1

9%1,

193,

965

1,06

4,73

519

8,09

035

2,93

055

3,60

5

Net

Fun

ding

Req

uire

men

t (2

,044

,606

)-3

7.81

%(7

59,3

91)

(98,

116)

(375

,932

)(4

20,7

65)

(390

,403

)

Unr

estr

icte

d Su

ppor

t12

.15%

Net

Aux

iliar

y A

ctiv

itie

s (f

acili

ty r

enta

l)

18,4

410.

34%

9.15

%

Mem

bers

hip

Inco

me

518,

427

9.59

%59

.22%

Ann

ual C

ampa

ign

1,76

2,81

432

.60%

19.4

7%

Tot

al U

nres

tric

ted

Supp

ort

2,29

9,68

242

.52%

36.1

2%

Net

Sur

plus

(D

efic

it)

255,

076

63.8

8%

End

owm

ent d

istr

ibut

ion

as a

% o

f to

tal r

even

ue

Pro

gram

sT

otal

Ear

ned

reve

nue

as a

% o

f to

tal r

even

ue

Mem

bers

hip

reve

nue

as a

% o

f to

tal r

even

ue

Con

trib

uted

inco

me

as a

% o

f to

tal r

even

ue

Adm

inis

trat

ive

cost

s as

a %

of

tota

l cos

ts

Mis

sion

dri

ven

cost

s as

a %

of

tota

l cos

ts

Milw

auke

e A

rt M

useu

m, I

nc.

Eco

nom

ic M

odel

A

ctua

l 199

9/20

00


Adm

inis

trat

ive

Am

ount

%(a

lso

Dev

elop

)St

ewar

dshi

pP

ublic

Acc

ess

Exh

ibit

ion

Edu

c/P

ublic

Dir

ect

Cos

ts

Staf

f5,

110,

185

48.7

3%1,

464,

428

876,

135

986,

291

1,18

6,33

059

7,00

2

Non

Sta

ff5,

376,

986

51.2

7%1,

185,

536

1,16

7,87

785

0,60

11,

771,

559

401,

413

Tot

al C

osts

10,4

87,1

7110

0.00

%2,

649,

964

2,04

4,01

21,

836,

892

2,95

7,88

999

8,41

5

25.2

7%19

.49%

17.5

2%28

.20%

9.52

%

Inco

me

Dir

ectl

y A

ttri

buta

ble:

Ear

ned

Inco

me

2,31

8,26

322

.11%

-10

3,00

088

1,96

71,

002,

491

330,

805

Con

trib

uted

Inc

ome

2,31

6,22

722

.09%

264,

000

757,

117

-1,

023,

717

271,

393

End

owm

ent

Dis

trib

utio

n &

Inv

estm

ent

Inco

me

870,

100

8.30

%58

2,10

071

,050

-13

1,95

085

,000

Tot

al I

ncom

e5,

504,

590

52.4

9%84

6,10

093

1,16

788

1,96

72,

158,

158

687,

198

Net

Fun

ding

Req

uire

men

t (4

,982

,581

)-4

7.51

%(1

,803

,864

)(1

,112

,845

)(9

54,9

25)

(799

,731

)(3

11,2

17)

Unr

estr

icte

d Su

ppor

t27

.18%

Net

Aux

iliar

y A

ctiv

itie

s (f

acili

ty r

enta

l)

532 ,

581

5.08

%8.

58%

Mem

bers

hip

Inco

me

900,

000

8.58

%55

.94%

Ann

ual C

ampa

ign

3,55

0,00

033

.85%

8.30

%

Tot

al U

nres

tric

ted

Supp

ort

4,98

2,58

147

.51%

25.2

7%

Net

Sur

plus

(D

efic

it)

-74

.73%

Pro

gram

sT

otal

Milw

auke

e A

rt M

useu

m, I

nc.

Eco

nom

ic M

odel

B

udge

t -

2005

/200

6

Adm

inis

trat

ive

cost

s as

a %

of

tota

l cos

ts

Mis

sion

dri

ven

cost

s as

a %

of

tota

l cos

ts

End

owm

ent d

istr

ibut

ion

as a

% o

f to

tal r

even

ue

Ear

ned

reve

nue

as a

% o

f to

tal r

even

ue

Mem

bers

hip

reve

nue

as a

% o

f to

tal r

even

ue

Con

trib

uted

inco

me

as a

% o

f to

tal r

even

ue


Adm

inis

trat

ive

Am

ount

%(a

lso

Dev

elop

)St

ewar

dshi

pP

ublic

Acc

ess

Exh

ibit

ion

Edu

c/P

ublic

Dir

ect

Cos

ts

Staf

f5,

914,

824

47.0

4%1,

745,

672

1,13

6,39

991

9,86

31,

404,

588

708,

302

Non

Sta

ff6,

658,

424

52.9

6%1,

288,

136

1,60

3,38

91,

226,

076

1,60

5,63

093

5,19

2

Tot

al C

osts

12,5

73,2

4810

0.00

%3,

033,

808

2,73

9,78

82,

145,

940

3,01

0,21

81,

643,

494

24.1

3%21

.79%

17.0

7%23

.94%

13.0

7%

Inco

me

Dir

ectl

y A

ttri

buta

ble:

Ear

ned

Inco

me

2,52

1,43

720

.05%

--

1,00

1,60

31,

185,

889

333,

945

Con

trib

uted

Inc

ome

2,52

9,86

020

.12%

241,

000

948,

547

-65

3,50

068

6,81

3

End

owm

ent

Dis

trib

utio

n &

Inv

estm

ent

Inco

me

935,

000

7.44

%60

3,00

082

,250

-15

2,75

097

,000

Tot

al I

ncom

e5,

986,

297

47.6

1%84

4,00

01,

030,

797

1,00

1,60

31,

992,

139

1,11

7,75

8

Net

Fun

ding

Req

uire

men

t (6

,586

,951

)-5

2.39

%(2

,189

,808

)(1

,708

,991

)(1

,144

,337

)(1

,018

,079

)(5

25,7

36)

Unr

estr

icte

d Su

ppor

t25

.81%

Net

Aux

iliar

y A

ctiv

itie

s (f

acili

ty r

enta

l)

661,

500

5.26

%9.

88%

Mem

bers

hip

Inco

me

1,21

8,00

09.

69%

56.7

3%

Ann

ual C

ampa

ign

4,46

5,30

035

.51%

7.58

%

Tot

al U

nres

tric

ted

Supp

ort

6,34

4,80

050

.46%

24.1

3%

Net

Sur

plus

(D

efic

it)

- ad

d'l f

undi

ng n

eede

d(2

42,1

51)

75.8

7%

Pro

gram

sT

otal

Milw

auke

e A

rt M

useu

m, I

nc.

Eco

nom

ic M

odel

B

udge

t -

2010

/201

1

Adm

inis

trat

ive

cost

s as

a %

of

tota

l cos

ts

Mis

sion

dri

ven

cost

s as

a %

of

tota

l cos

ts

End

owm

ent d

istr

ibut

ion

as a

% o

f to

tal r

even

ue

Ear

ned

reve

nue

as a

% o

f to

tal r

even

ue

Mem

bers

hip

reve

nue

as a

% o

f to

tal r

even

ue

Con

trib

uted

inco

me

as a

% o

f to

tal r

even

ue

Looking backCOMPARING PRE-CALATRAVA TO THE CURRENT YEAR:

• Contributed revenue plus membership increased at approximately the same rate as costs

and amounts to 65% of revenues, an increase from $3.8m in annual funding to a current

level of $6.8m. This increase occurred at the same time the Museum was able to raise over

$50m to complete a $130m capital campaign.

• Earned revenue has more than doubled—increasing from 12% pre-Calatrava days to a

current level of 27%, or from $0.7m to $2.8m. This is largely due to higher admissions,

greater revenue from the store and café, and from facilities rental income.

IN CONTRAST

• The level of annual funding from the Museum’s endowment fell from 20% of operating

revenues to 8%. In comparison, our peer group receives on average nearly 25% of their

annual funding from their endowment.

As a result, the Museum now operates under a funding mix that heavily depends on visitor

income and annual generosity from our donors through the annual campaign—at a level

which is out of line with most of our peers. This makes us vulnerable to external market

factors such as those set out in the Strategic Environment and over many of which we have

no control. This high-risk position jeopardizes our ability to successfully (and sustainably)

accomplish our institutional goals.

As regards the functional allocation of our resources, the model shows that we utilize our

resources better than in pre-Calatrava days—our administrative costs are currently 25% and

mission-related costs are 75% of total costs compared to pre-Calatrava days when

administrative costs were 36% of total costs.

The model also reveals that presently:

• approximately 40% of the costs of stewardship are covered by sponsorships, grants,

and restricted endowments

• half the costs of public access are covered by general admission revenue and profit from

the store and café

• exhibition costs have a similar proportion of costs covered by exhibition admission

charges, sponsorship, and participation fees from other museums

• education costs are three-quarters covered by program fees, restricted endowments,

sponsorships, and grants

• administration costs are 30% covered by income from unrestricted endowments and the

diminishing grant from Milwaukee County.


Looking forwardThe table for 2010/11 shows modest growth in costs from $10.5m to $12.6m, a small growth

in directly attributable income of $0.5m, and a $1.3m growth in membership income and the

annual campaign, leaving an unfunded deficit of $0.3m. In other words, a steady growth

in costs accompanied by a steady growth in revenues.

At first glance, this seems reassuring. But we are more exposed to risk.

The next table, in a slightly different format, shows the evolution of the Strategic Plan from

year to year. The Plan includes both one-time initiatives as well as ongoing changes in annual

operating costs, and these are shown. The bulk of the operating cost increases will occur

in stewardship and public programs—reflecting the Plan’s emphasis on re-investing in the

Collection and developing our audiences. It also shows that we project most of the increase

in costs to be covered by an increase in contributed revenue. Earned income is considered

close to the upper limit (unless base line attendance goes up, which is not realistic), and the

initiatives in the Plan are mostly aimed at holding current levels in the future in the face

of increased competition and customer expectation.

Overall, the analysis to date indicates an excess of expenditures over identified revenue from

both special initiatives and operations beginning in fiscal year 2007/08. This is especially true

in fiscal years ending 2008 and 2009 when several key projects and resource enhancements are

presently scheduled, while the return from investing in building our donor base will not yet

have materialized. We will need to secure additional funding to complete these goals, which

will more than likely come from contributed sources—special grants and donations.

If we are unable to secure the funding necessary, the goals of the Plan will need to be scaled

back or deferred until funding is secured.



1999

/200

020

05/2

006

2006

/200

720

07/2

008

2008

/200

920

09/2

010

2010

/201

1

Ear

ned

Inco

me

0.7

2.3

3.3

2.5

2.6

2.6

2.6

Spon

sors

hip

and

Gra

nts

1.6

2.3

2.5

2.5

2.5

2.5

2.5

End

owm

ent a

nd I

nves

tmen

t1.

10.

91.

20.

90.

90.

90.

9N

et A

uxili

ary

Act

iviti

es

0.02

0.5

0.6

0.7

0.7

0.7

0.7

Mem

bers

hip

Inco

me

0.5

0.9

0.9

1.0

1.0

1.1

1.2

Ann

ual C

ampa

ign

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The case for endowmentAs stated above, the Museum already operates under a funding mix that is out of line with our

peer group of art museums and exposes us uncomfortably to the vagaries of the economic

and socio-demographic environment in which we operate. If we accept that we need to

invest more into our core assets—the Collection (including the Quadracci Pavilion, our largest

masterpiece)—and in key aspects of our work for the community, we cannot expect this

to be funded by growing our income sources along the same ratios we have managed to

achieve in recent years. We are particularly vulnerable to (short, medium, and longer term)

declines in baseline visitor levels and need the freedom to develop our programs with more

than just headline visitor targets in mind. While we are hopeful about this, is it realistic to

expect the community to keep increasing its annual contribution via the annual campaign

year in, year out?

We, therefore, have to look at the need, over time, to build our endowment in order to secure

a larger share of annual unrestricted core funding towards core operating costs, and reduce

our financial risk profile.

As a target, the Museum should strive to raise an endowment that would either:

• provide an annual funding contribution similar to that of pre-Calatrava of 20% of

operating costs. This would require an endowment of $50m, twice our current

endowment of $25m; or

• provide the same level of funding contribution as the average of our art museum peers

of some 25% of annual operating costs. This would require an endowment of $64m,

or an extra $39m.

Raising the Museum’s endowment to these levels will take time and may well stretch beyond

the period presently covered by this Strategic Plan. This may require us to extend the

timetable of some of the proposed investments and resource adjustments to ensure that

we continue to live within our means while we gradually gear up to reach a position where

we can confidently fulfill our long-term institutional obligations. The Plan provides us with

the flexibility to do so.


Benchmarking Tables

List of museums for benchmarking exercise

US Metropolitan Area Population—2000 Census Data

Milwaukee Art Museum Strategic Plan Appendix 57

Appendix

METROMUSEUM RANK AREA POPULATION

1 Art Institute of Chicago 3 Chicago, IL 9,157,5402 Austin Museum of Art 37 Austin, TX 1,249,7633 Baltimore Museum of Art 4 Washington DC/Baltimore, MD 7,608,0704 Carnegie Museum of Art 21 Pittsburg, PN 2,358,6955 Chrysler Museum 30 Norfolk, VA 1,569,5416 Cincinnati Art Museum 23 Cincinnati 1,979,2027 Cleveland Museum of Art 16 Cleveland, OH 2,945,8318 Columbus Museum of Art 32 Columbus, OH 1,540,1579 Crocker Art Museum 24 Sacremento 1,796,857

10 Cummer Museum of Art and Gardens 45 Jacksonville, FL 1,100,49111 Dayton Art Institute 52 Dayton, OH 950,55812 Denver Art Museum 19 Denver 2,581,50613 Detroit Institute of Arts 8 Detroit, MI 5,456,42814 Grand Rapids Art Museum 47 Grand Rapids, MI 1,088,51415 Indianapolis Museum of Art 28 Indianapolis 1,607,48616 Joslyn Art Museum 60 Omaha, NE 716,99817 Memphis Brooks Museum of Art 43 Memphis, TN 1,135,61418 Minneapolis Institute of Arts 15 Minneapolis, MN 2,968,80619 Mint Museum of Art 33 Charlotte, NC 1,499,29320 Museum of Contemporary Art - Chicago 3 Chicago, IL 9,157,54021 Museum of Contemporary Art, San Diego 17 San Diego, CA 2,813,83322 Nelson-Atkins Museum 25 Kansas City, MO 1,776,06223 New Orleans Museum of Art 34 New Orleans 1,337,72624 North Carolina Museum of Art 40 Raleigh-Durham 1,187,94125 Norton Museum of Art 44 West Palm Beach, FL 1,131,18426 Orlando Museum of Art 27 Orlanda, FL 1,644,56127 Philbrook Museum of Art 58 Tulsa, OK 803,23528 Portland Art Museum 22 Portland OR 2,265,22329 Saint Louis Art Museum 18 St. Louis 2,603,60730 San Antonio Museum of Art 29 San Antonio, Tx 1,592,38331 San Diego Museum of Art 17 San Diego, CA 2,813,83332 St. Petersburg Museum of Fine Arts 20 Tampa/St Petersburg 2,395,99733 Tampa Museum of Art 20 Tampa/St Petersburg 2,395,99734 The Speed Art Museum 49 Louisville, KY 1,025,59835 Toledo Museum of Art 68 Toledo, OH 618,20336 Virginia Museum of Fine Arts 50 Richmond, Va 996,51237 Wadsworth Atheneum 41 Hartford, CT 1,183,110

AVERAGE 2,352,808

RANGE OF DATA 618,2039,157,540

Milwaukee Art Museum 26 Milwaukee 1,689,572

METROPOLITAN

Peer Benchmarking Study—Key Ratios


7 Appendix A: Peer Benchmarking Study – Key Ratios

MAM Average Average w/oArt Institute

VISITORS / GENERALVisitors to Metro Population 21.1% 12.6% 10.8%Visitors to Hours Open 132 136 107School Attendance to Total Attendance 14.41% 9.23% 10.25%Operating Expenses per Visitor 36.23$ 44.93$ 46.56$ Earned Revenue per Visitor 13.99$ 10.15$ 9.46$ Amount Needed to Raise per Visitor 22.24$ 34.78$ 37.11$ Operating Expenses per Hours Open 4,797.51$ 6,091.98$ 5,004.55$ Operating Expenses per Total Square Footage 37.81$ 58.89$ 54.63$

EARNED INCOMEEarned Revenue to Total Revenue 38.45% 20.66% 18.32%Earned Revenue to Total Expenses 39% 23% 20%Earned Revenue per Hours Open 1,852.10$ 1,376.80$ 1,016.63$ Facility Rental

Facility Rental Income to Total Revenue 4.77% 1.35% 1.44%Facility Rental Income to Earned Revenue 12.41% 6.53% 7.89%Facility Rental Income to Operating Expense 5% 1% 2%

StoreStore Revenue to Earned Revenue 35.53% 32.76% 27.38%Store Revenue to Operating Expense 14% 7% 6%

Store Revenue per Visitor (exclude schools and other) 6.74$ 4.63$ 3.82$ Store Revenue per Store Square Footage 824.84$ 368.78$ 219.91$

CaféCafé Revenue to Earned Revenue 10.68% 12.11% 9.25%On-Site Café Revenue per Visitor (exclude schools and other) 1.69$ 1.10$ 0.62$ Café Revenue per Café Square Footage 146.11$ 83.10$ 59.95$

AdmissionsAdmissions Revenue to Earned Revenue 25.16% 18.14% 16.60%Admissions Revenue to Operating Expense 10% 4% 3%Admissions Revenue per Visitor (exclude other attendance) 4.00$ 2.27$ 2.01$


MAM Average Average w/oArt Institute

CONTRIBUTED INCOME

Private Support

Total Private Support to Contributed Income 71.36% 55.96% 55.49%

Total Private Support to Operating Expense 46% 31% 33%

Individual Private Support to Contributed Income 26.81% 20.59% 17.65%

Individual Private Support to Operating Expense 17% 11% 10%

Corporate Private Support to Contributed Income 7.01% 7.14% 7.04%

Corporate Private Support to Operating Expense 4.54% 3.96% 4.17%

Foundation Private Support to Contributed Income 9.28% 9.68% 10.25%

Foundation Private Support to Operating Expense 6.01% 5.37% 6.07%

Benefit Events to Contributed Income 12.58% 5.69% 5.06%

Benefit Events to Operating Expense 8.14% 3.16% 3.00%

Government Funding

Government Funding to Contributed Revenue 12.96% 29.38% 30.04%

Government Funding to Operating Expense 8.39% 16.30% 17.79%

Membership

Membership Revenue to Contributed Income 15.68% 14.67% 14.47%

Membership Revenue to Operating Expense 10.15% 8.14% 8.57%

Membership Revenue per Member 59.69$ 83.69$ 89.84$

Membership as a % of Total Population 1.30% 0.55% 0.48%

Membership Costs to Total Costs 4.49% 2.66% 2.61%

ENDOWMENTEndowment Distribution for Operating to Total Revenue 6.95% 20.93% 20.44%

Operating Expenses to FV of Endowment 69.64% 21.21% 23.16%

Endowment Distribution for Operating to FV of Endowment 4.09% 3.86% 4.20%

Endowment Distribution for Operating to Total Operating Expenses 6.97% 22.90% 22.66%CURATORIAL

Admissions Revenue per Total Exhibition Square Footage 10.34$ 8.73$ 6.31$

Curatorial Costs per Total Exhibition Square Footage 7.54$ 21.67$ 18.10$

Temp Exhib Costs per Temp Exhib Square Footage 40.35$ 82.74$ 71.31$

Temp Exhib Admission Rev to Temp Exhib Costs 43.97% 42.42% 12.75%

Temp Exhib Costs to Total Expenses 7.85% 7.52% 7.57%

Collections Care Expense per Items in Collection 13.59$ 18.49$ 20.74$

Collections Care Expense to Total Expenses 2.53% 4.91% 5.30%

Library Costs to Total Costs 0.59% 1.87% 1.29%

PERSONNELWages/Benefits per Employee 29,972.73$ 42,635.44$ 38,304.03$

Wages/Benefits to Total Costs 45.06% 48.39% 48.74%

MISCELLANEOUS EXPENSESAdministrative Costs to Total Costs 9.86% 12.54% 13.00%

Development Costs to Total Costs 5.93% 5.25% 5.55%

Security Costs to Total Costs 9.05% 6.90% 7.20%

Marketing/PR Costs to Total Costs 8.30% 4.75% 4.89%

Education Costs to Total Costs 7.22% 5.42% 5.89%

7 0 0 N O R T H A R T M U S E U M D R I V EM I L W A U K E E , W I 5 3 2 0 2

4 1 4 - 2 2 4 - 3 2 0 0 | w w w . m a m . o r g

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2006 Strategic Plan

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