Case Name :      Turning Around Organizations in a Crisis: The Case of Two Major Alberta Orchestras

Authors :           Pratima Bansal, Tom Ewart

Source :             Ivey Publishing

Case ID :            906M64

Discipline :        General Management

Case Length :    18 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

In 2002, both the Edmonton Symphony Orchestra and the Calgary Philharmonic faced financial crises that threatened their existence. Both organizations provided similar programming, had approximately the same revenues, and were rooted in their communities, which were of similar populations. However, the turnaround approaches taken by the boards of the two organizations were starkly different. The Calgary Philharmonic sought bankruptcy protection, dismissed the CEO, hired consultants, sought emergency funding from government, and suspended operations for four months during a restructuring period. In the end, it emerged successfully from bankruptcy. The Edmonton Symphony Orchestra scraped through the crisis, continuing to pay its musicians for ongoing performances while negotiating new contracts, retaining its CEO, and not soliciting emergency funding from the government. Three years after the crisis both organizations were flourishing, with new music directors, balanced budgets, and growing endowment funds. Outlines the stories of the two orchestras and their turnarounds.