part i - freie universität · evident in business endeavors. but also all objectives, ... greed,...

Part I

by Klaus Siebenhaar

1. Historical Foundations of a Contemporary Management Culture

About one hundred years ago, the great German economist Wer-ner Sombart undertook a broad historically far-reaching, andstylistically expressive effort to present the “spiritual history ofeconomic modern man”. In his magnum opus The Bourgeois,first published in 1913, the contemporary of Georg Simmel,Max Weber and Joseph Schumpeter analyzes the “developmentof the capitalist spirit” (Sombart 1923).

Whereas Max Weber is only concerned with the “conditionalityof the development of a business attitude”, emphasizing theinterrelations of the modern business ethos which derived fromthe spirit of the rational ethics of ascetic Protestantism, Sombartwants more.

For him, the religious and ethical implications present only oneaspect of the overall picture of “spiritual characteristics andactions, which come into consideration when doing business.All expressions of intellect, all traits of character, which becomeevident in business endeavors. But also all objectives, all valuejudgments, all principles that decide and regulate the behavior ofthe working man. I conceptualize the term in a very broad sense,instead of limiting it, as it is usually the case, to that very partwhich can be described by business ethics, which is the morallynormative in the realm of the economic. The former is only onepart of what I call the spirit of economic life.” Therefore, ethicsare a priori an integral part of economic thought and action –they are neither an appendix nor a supplement but an ingredient.

Sombart flatly refuses the academic doctrine – prevailing notonly among his contemporaries – of a given “economic human

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nature”, as an anthropological constant, which defines the stri-ving for profit and profitability in all eras.

The “differences of the working spirit” valid for Sombart arebeing linked to a historical perspective, dedicated to the respec-tive “dominating”, theoretically and empirically grounded spiritof an economic era. Nevertheless, he explores the basic determi-ning factors of the nature, or as we might say today, the basic psy-chological and mental disposition of the capitalist spirit, therebyshowing impressive ingenuity. Instructive for our current discus-sions seems to be the insight – and on this matter Werner Som-bart and Max Weber agree despite all differences – that “acqui-sitiveness”, the pursuit of the highest possible profit, is not theessence of modern capitalism.

“This pursuit”, as Weber puts it, “can be found in waiters, doc-tors, coachmen, artists, cocottes, corrupt civil servants, soldiers,bankers, gambling house operators, beggars: – one could say: inall sorts and conditions of men, at all times in all parts of theworld, where ever it is possible.”

Thus, greed, speculation, and unrestrained profit are not the ori-gin of the capitalist spirit – but what is? Sombart identifies twomental mint marks which have served as value orientation andpractical model into our modern times: it is the “spirit of entre-preneurship” as an anthropological impetus, which loses itspirating pre-capitalist trait of character by means of bourgeoisvirtues and takes its modern shape in the ideal of the “honestmerchant”.

The creative and expansive energy of entrepreneurship and thebusiness principle of virtuousness that evolved from civilizationare creating a fertile, forward-looking symbiosis. “The spirit ofentrepreneurship is the epitome of all mental qualities which arenecessary for the successful realization of an enterprise.” Despi-te all the differences between the respective entrepreneurial task,its dimension, its societal context,

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Sombart attests a comprehensive ability that characterizes everysuccessful entrepreneur irrespective of the size and complexity ofhis or her enterprise: “The entrepreneur (...) always has to bethreefold: conqueror – organizer – tradesman.”

For Sombart, the term “conqueror” characterizes a resourceful,inventive man of action who knows how to turn spiritual free-dom into an adventurous and daring spirit, and who pursues hisplans and goals with great determination. The “organizer”embodies the experienced anthropologist and strategically thin-king human resource developer who succeeds in forging a pro-ductive whole of a group of people.

Finally, the “tradesman” represents the not only the customer-and market-oriented salesman, but first and foremost the greatcommunicator, who knows how to negotiate, court, and mode-rate. Conqueror, organizer, and tradesman incorporate all thecharacteristics and skills, which constitute professional andcreative management. Structuring and coordinated planning,organizing, leading and controlling, communicating and marke-ting are the foundations of every enterprise.

Nevertheless, the added value of success is decided by the perfectsynthesis of conqueror, organizer, and tradesman. But Sombartadds two more basic qualifications, which can only be learned toa certain extent: presence of mind and determination.

Understanding entrepreneurship in this way means it is notbound to any regulatory framework, legal form, structures, orpolitical paradigms – the spirit of entrepreneurship is an attitude,a psycho-mental disposition, a matter of personality beyond allparticularities of the system. Entrepreneurship and its underly-ing spirit as a universal parameter cannot simply be reduced toacquisitiveness and, least of all, to the distorted picture of theprofit-driven capitalist.

By defining the intellectual criteria for qualification, Sombartgets even more concrete in profiling the requirements for leaders

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of this kind: no humanist or cultural scientist could be more poe-tic or precise formulating this essential mental condition, theseeducational requirements for the entrepreneurial personality asSombart is asking for three traits of character: “smart”, “cle-ver”, and “brilliant”.

“Smart” means readiness of mind, “great mental flexibility andorientation”, “having an eye for the essential”, “keen sagacity”and sustainable thinking. At the same time, those characteristicsoutline the core competencies of a strategic thinker.

“Clever” refers to “experience with people and the world”,“creative power”, essential requirements for professionalhuman resource development and responsible business and per-sonel management.

Finally, “brilliant” means “full of ideas”, combined with combi-national imagination. This way, analytical and strategic thoughtand action merge with leadership skills and creativity – individu-al talents, vitality and drive. They are individual gifts and talentsfulfilled through energetic and action-oriented entrepreneur-ship. However, these characteristics are what makes entrepre-neurship interesting, to describe the social relevance of entrepre-neurship we must add another characteristic to the nature of ent-repreneurship, one that anchors entrepreneurship in society andsocial norms: “a sense of duty”.

This picture of the entrepreneurial nature is geared towards spe-cial characteristics. Within the “process of civilization” it requi-res at the same time a foundation in and an extension of the civilsociety.

Even almost one hundred years after Werner Sombart and MaxWeber, management guru Peter F. Drucker states consequential-ly: “entrepreneurship is not natural, it is not creative. It is work.(...) Entrepreneurial business treats entrepreneurship as a duty.They are disciplined about it, they work at it, they practice it.”

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This is why Sombart ranks the “spirit and nature of the bour-geois” and the “spirit and nature of the entrepreneur” equally.Yet, the ideal of the “honest merchant” today, tends towards themodern type of the hard-working man of duty and reason, whocarries out his economic activities as “quintessential tradesman”or “hard-working merchant” in the context of a “doctrine of vir-tues” based on values and principles.

In more prosaic words: since the Renaissance and increasingly sosince the Enlightenment, we have been dealing with questionsconcerning the internal organization of the economy as well asthe relation of economic agents to their customers in particularand to the outside world in general, in times of emerging globa-lization and later, industrial capitalism.

This kind of self-justification and self-understanding includingits central value concepts, and the cultural habitus of the “mer-chant” does not only constitute the identity of a new social class,but also aims at social acceptance within an actively perceivedresponsibility in the first place.

In the writings of Alberti, Daniel Defoe, Benjamin Franklin,Adam Smith, Werner Sombart, and Max Weber, this compre-hensive, collective consciousness which includes the environ-ment or the community, creates the civil ethos of common publicinterest, public spirit, charity, and philanthropy, which we haveto measure up to today since it is the foundation of every freedemocratic order of European provenience.

The merchant’s keen awareness of the scarcity of resources andthe resulting need for an efficient use of space and time result inhis particular understanding of duties vis-à-vis society and com-munity. “Honor” means “truthfulness”, this was and is the dic-tum of economic action in the European context. This should beremembered today, as Rainer Hank remarked:

“Ideas created capitalism. The adventures of European econo-mic history started in peoples’ minds, not in machines. Our cur-



rent wellbeing is based on a change in attitudes, virtues and con-victions regarding wealth, success, risk and competition. It is notEuropean arrogance but historic truth to say that an ‘ethic andrhetorical tsunami’ (Deidre McClosky) started with the Europe-an bourgeoisie in early modern times and we are still profitingfrom it.”

This new enterprising, researching and analytical, hence radical-ly changing human spirit was the primary “capital” of moderncapitalism. Nothing else! Let us never forget: until long into the18th century labor, markets, credits, interest and pursuit of profitwere often socially, religiously and philosophically frownedupon – despite the protestant ethic and global trade. It was acapitalist entrepreneurial spirit paired with bourgeois concepti-ons of virtue, which provided the basis for the social change andprogress to which a continuously growing number of people owetheir wellbeing.

The “honest merchant” is the first economic subject to defy theboundaries of feudal economic hierarchy; he initiates and embo-dies free enterprise and a free world, including the conscioustaking of risks. “Trade brings change”, an old saying goes andthat simply means: the world and the image of the world arechanging.

The merchant and later the entrepreneur and the manager areeconomic subjects specific to a certain period, but they are themain protagonist in it. All of them though, are ready to be “irri-tated” and able to “imagine the world differently”, noticed DirkBaecker. And, this world is already starting to look differently.

So let us try to put past and present into perspective. The globalfinancial crisis has lead to many hard insights, for example theold, human approach to solving problems by putting thembehind some imaginary border does not work anymore. Todayeverything is connected – geographically, temporally and interms of causation.

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The mechanism of outsourcing problems only works as long asthere is an environment that remains without contact to one’sown world. The stench of yesterday’s garbage dumps reachestoday’s residential areas. Even the sky is not without limits any-more.

The globalized world does not know an “outside” anymore andit does not know postponement to the future. The old strategiesof disposal do not take effect anymore, because moving costsand debts up to the far future will not be successful.

Quicker than ever before the losses have to be accounted for:“The garbage left for future generations always lies in the frontyard”, the literary scientist Albrecht Koschorke knew already.The finiteness of resources – environmental, financial, social –requires a new culture of collective responsibility based on thespirit of European capitalism, and, as it did 500 years ago, thechange starts in the minds.

The entrepreneurial spirit unlimited by government has beencaught up by the interdependencies of global capitalism. Todaywe need rational, calculated actions that consider the limitedresources and the limited space. This calls for a new thinking, fora value-based, “wise”, “clever”, and “brilliant” consciousnessto prevail.

We cannot hand out social premiums on the future anymore –this political lie is dead. What does that mean for managerialthought and action in the encompassing “spirit of economics” asdefined by Werner Sombart?

The answer has to be about more than reflections on the ethics ofeconomics which usually serve as an alibi that provides momen-tary catharsis, only to fall right back into old patterns and habits.

About a decade ago the great Peter F. Drucker summed up thelegacy of his discipline and profession: “That I focused this dis-cipline on People and Power; on Values, Structures, and Consti-



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tution; and above all, on responsibilities – that is, I focused theDiscipline of Management on management as a truly liberalart.”

The fundamental change that we need to bring about cannot bebased on cosmetic changes. Rather, it requires a fundamentalreflection on and change of the self-image of leaders in politicsand business and a focus on the guiding principles and mission oftheir actions.

Management as a liberal art, as the creative art of leadership hasto be aligned with a universal “morality of business” in the spiritof Sombart: “morality in business” and “morality for business”.The first includes the basic of business solidity and business vir-tues that is correct accounting and the principle of pancta suntservandum as the necessary prerequisites for socially acceptedhonor and respectability.

Only “morality for business” creates bourgeois respectability,which should not only be socially desirable but also from abusiness perspective. Sombart would never have distinguishedbetween “hard” and “soft” factors of business success and this isthe strength of his ideas and this is what makes him relevant eventoday: the merchant, the entrepreneur, the manager has to be agood citizen, because it serves his business interests.

We know this concept in the form of the limited Corporate Soci-al Responsibility (CSR) and Good Corporate Citizenship, yetthey are often merely declamatory concepts.

Often the problem is that CSR is conceived of not as an integralpart of legitimate business interest but as a strategy of “social”added value external to core business interests. Theses CSRapproaches are usually quickly seen as what they are by themedia and the public. Business that wants to be believable cor-porate citizens need to adhere to Sombart’s double morality:“morality in business” and “morality for business”!

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This requires leaders that fulfill these demands because of theireducation, their self-image and their value set. Today some callfor reforms of MBA programs; others believe a fundamentalscientific and methodological paradigm change in economics isrequired, which replaces abstract mathematical models withordoliberal transdisciplinary approaches. Both seem necessaryand the “prophets” of such approaches are already makingthemselves heard. Yet, what they preach as future-proof value-based economics is simply the old “spirit of capitalism”. Whatwe need is “education” in the sense of gaining knowledge, reflec-tive thought and value-based personality development.

At the Zeppelin University in Friedrichshafen Stephan Jansenpresents the perhaps most interesting approach to “managementas a truly liberal art” in the sense of Drucker. The Zeppelin cur-riculum is not limited to abstract “case studies” and hypotheti-cal business plan development rather it provides an holistic tran-sdisciplinary approach to MBA education.

“The crisis has shown”, as Jansen puts it, “that we cannot simp-ly compute the new models, but instead have to take intoaccount that there are people behind abstract numbers.” If thehuman factor is ignored in economic theory and practice, themost important factor in value creation is lacking – and this canpotentially lead to catastrophic results.

In 2010 we are celebrating the “Year of Humboldt”. This greatscholar proposed an ideal of a holistic and all encompassingapproach to education. Humboldt’s ideal should guide us indeveloping a European culture of management. The most impor-tant “capital” is education and knowledge and managers – as“educated persons” in a generalized Humboldtian sense – haveto represent that.

This is the chance and challenge to young leaders today. Theyneed entrepreneurial spirit, business ethics, and morality – theyhave to be bourgeois spirits, calculating, passionate, educated,and responsible.



Works Cited

Baecker, Dirk. Postheroisches Management. Ein Vademecum. Berlin 1994.Drucker, Peter F.. Management: Tasks, Responsibilities, Practices. New York,2008.Sombart, Werner. Der Bourgeois. Zur Geistesgeschichte des modernen Wirt-schaftsmenschen. München, Leipzig 1923.Jansen, Stephan, in Focus 11/09/2009: 87. Hank, Rainer. Schylocks Erbe, in Frankfurter Allgemeine Zeitung, 07/05/2009: 34.

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2. Culture First!

Basic Principles and Development of Value-Oriented Cultural Management in Germany, Western Europe, and China

2.1 Cultural Management and Social Transformation Processes in Germany and Western Europe

Cultural management has been established as an academic disci-pline and a profession in Germany and parts of Western Europesince the end of the eighties. While in the Anglo-American world– due to the lower public funding of museums, theaters and con-cert halls – there already existed a well entrenched tradition of“cultural management” or “arts administration”, the develop-ment of cultural management in Western Continental Europetook place in the context of comprehensive social transformati-on processes.

With the differentiation of society into lifestyle-oriented milieusand target groups in the eighties, the understanding of culture aswell as consumer behavior changed. The newly evolving “leisu-re, thrill and event-oriented society” initiated an all-embracingaestheticization of the living environments. It produced a multi-optional cultural audience and led to a cross-over of traditionalhigh culture and entertainment. From now on cultural eventswere staged as media-driven events in public spaces.

At the same time, the classical forms of art and culture were ope-ned to new public areas. Abandoned industrial complexes wereconquered, entire districts were musically “occupied” (musicfestival), and towns shone in the light of cultural mega events. Anew type of large-scale exhibition (blockbuster exhibitions) fas-cinated the masses. Cultural tourism and city marketing, cons-cious of art and cultural business strategies, indicated a changedcultural understanding. Culture was there for everybody, it waseverywhere and everything seemed possible with culture!

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From that time on however, target groups were able to choosefrom an extremely varied range of cultural products, whichbecame larger and larger while demand stagnated. Marketingand public relations gained more significance. In the nineties, thecompetition for audience became increasingly intense – evenmore so when the traditional cultural sector had to compete withthe new “tainment cultures” (entertainment, infotainment,edutainment etc.).

The boom of culture in this emerging experience-driven societyalso led to many different approaches to culture and economy:banks proudly presented their own art collections; en vogueexpressions like “corporate design”, “corporate culture” and“indirect returns” articulated comprehensive aesthetic and cul-tural processes within the economic sphere. Thus, with the emer-gence of cultural sponsorship and private-sector engagement inthe arts, economy and culture started to act with shared inte-rests. Culture became increasingly penetrated by the economyand vice versa.

In this context, cultural management was established as a keyqualification for the future. The present-day type of the culturalmanager was created. Therefore, the term cultural managementconnotes several things: firstly, the management of institutionsand companies in the public cultural sector, as well as in parts ofthe creative and entertainment industries; secondly, a practicallyoriented academic discipline and thirdly, a brand-new occupa-tional image. Especially the academic discipline cultural mana-gement or arts administration quickly gained popularity.

The academic teaching of cultural management combines theo-ries and hands-on practices from the fields of economics, law,communications, social sciences and the humanities. The trai-ning directly applies to the management of for-profit and not-for-profit cultural organizations. Cultural management as anacademic discipline thus contains elements of general studies,which defines the modern cultural manager as an “interdiscipli-nary expert” and an all-rounder.

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In the traditional discipline of business administration, there is adistinction to be made between cultural management as a func-tion (what are the tasks of the cultural management?) and cultu-ral management as an institution (who is the cultural managerand what does a cultural manager do?).

The focus of cultural management is set on the issues of plan-ning, organizing, leading, directing and controlling culturalinstitutions, projects, and companies. Procuring and distributingresources, organizational structures and process organization,marketing, communication, public relations, strategic planningand market positioning and many others are fundamental tasksof professional cultural management. The required qualificati-ons and skills, as well as the specific persona and profession ofthe cultural manager, affect the field of cultural management asan institution.

The requirements and challenges for cultural management andcultural managers today and in the future are correspondinglyhigh. Successful cultural managers have to be multi-taskers ofsome kind, who – based on their cultural values and principles –are able to analyze and manage legal, social, and economic pro-cesses. At the same time, they have to increase the freedom fornew artistic production by changing the bureaucratic structuresand formalities we find in many of the big cultural institutionsand by making them more flexible.

This means: cultural management and cultural managers, parti-cularly in the nonprofit sector have to understand and monitorthe laws of the national and international markets. Among theessential and continuous tasks are cultural market research andanalysis, research into the behavior of users and audiences of dif-ferent generations, the contextualization of arts institutions intheir diverse social fields, skills in the acquisition of non-govern-mental resources, fundraising, sponsoring or public-private-partnerships, finally an increased awareness of social and cultu-ral trends and a basic knowledge of labor law and collective bar-gaining law.

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All over Western Europe, we are confronted with a harsh com-petition for attention, time, and money between cultural institu-tions. The supply is exceedingly high and the markets for art,theater, literature, and music – being in a process of permanentdifferentiation – become more and more opaque and unpredic-table. The government, in the role of the financier, demands highaudience response, strong media feedback, positive effects ontourism and the local image, success in sponsoring and fundrai-sing and co-operations on a national and international scale. Thepublic cultural sphere tends to become more entrepreneurialwhile – for image reasons – the creative industries try to establishlinks to classical culture.

All summed up, this means that in the future, four fields of actionwill be of central importance for the normative, strategic, andoperative aspects of a value-based entrepreneurial managementof cultural institutions. These four fields are even more impor-tant because they intertwine.

I am speaking of “public value” and the strategies of social legi-timization tied to the term. The second field is “audience deve-lopment” as an institutionalized managerial strategy of accep-tance. The third item on the agenda is the competition for ideasand the challenge of new media cultures. The fourth task is topermanently secure required resources, which means: money,working space as well as qualified staff and leaders.

Securing public value and maintaining an understanding of cul-tural education that is based on values and traditions is no lon-ger just the artists’ duty. Fulfilling this mission requires creativeinstitutions, such as theaters, museums, and concert halls, whichpractice cultural education. The only way to legitimize state sub-sidies is by creating public value. Today, all public cultural insti-tutions in Germany have to defend their relevance. They are jud-ged by their supply-side policy, which includes their additionalprograms for cultural education, media response, as well as theirimage and brand. To achieve all of this, what institutions needmost is an interested, curious and large audience. That is the rea-

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son why public value and audience development are interdepen-dent.

“Audience development is an umbrella term and a strategy toencompass all aspects of promotion, services, marketing, publicrelations, and educational programs with the perspective tocreate a love affair between people and art that will have alifelong impact on the minds and spirits of those who partake.”(G. B. Morrison). Audience development is the long-term pro-cess of encouraging and assisting an audience member to becomeincreasingly more involved in the life of an arts institution. Thegoal is to build a loyal and committed audience with an appetitefor adventure. For reaching this ambitious goal you need astrong top-down-process of change management in a lot of cul-tural institutions.

Because this assumes an institution that is flexible and adaptive,an institution that is willing and able to judge everything it plansor artistically produces from the perspective of the audience.This ability becomes even more important when it concerns thecompetition between the traditional public institutions and thenew media cultures in the cross-linked digital world. One of thequestions that will decide our futures is: where are the young tar-get groups of the so-called “Generation Google” and the DigitalNatives headed?

Due to demographic changes, we find over-aged cultural audien-ces in most of Europe. At the same time, not just in the future, butalready now, younger generations grow up with the new media.In the struggle for attention, time budgets and contribution, clas-sic cultural institutions will have to learn to understand this onli-ne world and the social communities – not just to be able to chal-lenge them in terms of supply and reception aesthetics, but tomake use of them for their own purposes.

This, for example, means developing communication and mar-keting strategies online and adopting the idea of the “communi-ty” for measures of customer loyalty and communication with

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an institution’s target group. If institutions want to win youngaudiences, they have to target them online. For designing indivi-dualized cultural marketing campaigns without divergence loss,there is no better and more efficient way than by the means ofweb 2.0. Therefore, future cultural management is also mediamanagement – an outlook, which upgrades the importance ofstrategic alliances with the creative industries.

Finally, securing resources in a broad sense is one basic elementof professional cultural management. It naturally includes diffe-rent forms of fundraising and “friendraising”, philanthropicgiving, donations in kind, know-how transfer, volunteering, aswell as marketing-driven sponsorship. Securing – mostly addi-tional – resources is a task that can be conducted creatively asthere is a broad spectrum of possible ways.

Moreover, it is indispensable that cultural leaders make use ofexcellent social and economic networks, which enable them toprovide donors and sponsors with services and recognition frominside their organizations. This idea is inherent in the four basicsof professional fundraising: research (identifying and findingpotential donors and sponsors), solicitation (addressing potenti-al donors and sponsors), recognition (thanking and announcingdonors and sponsors) and cultivation (fostering the relationshipswith existing donors and sponsors).

Even the highly subsidized public cultural institutions in Ger-many are depending more and more on private and corporatedonors and corporate sponsors in parts of their programs. Thisis especially true for blockbuster exhibitions, opera productionswith international stars, the acquisition of art collections or cul-tural education programs. Beyond that, there are many formsand possibilities of marketing and media co-operations – as, forexample, free TV and radio trailers or sponsored ads in newspa-pers and magazines. Particularly regarding the development ofresources, younger directors of festivals, theaters, museums andorchestras see themselves as cultural managers who build uppartnerships and co-operations for the benefit of the arts with-

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out calling into question their program’s autonomy. Fundraisingreally is a “process of non-stop cultivation” (Michael Margitich,Museum of Modern Art New York).

To organize, lead and direct cultural institutions so that theyremain relevant, competitive, and accepted, we need cultural“entrepreneurs”, “leaders” and “leadership” in the sense ofCorporate Governance and Corporate Social Responsibility.These skills need learning, as well as excellent, practical andtransdisciplinary study programs. These have to teach – on theone hand – a culturally tradition-oriented, yet innovative, mana-gement of classic cultural institutions. On the other hand, theyhave to communicate the skills of the creative industries. Thevalue paradigms of such successful training strategies are basedon ambitious curricula which combine cultural expertise witheconomic and social competence and which are committed toone claim: “Culture first!”

2.2. Cultural Management, Creative Industries, and Cultural Policy in China

While the public cultural sector in Germany – in contrast to, forexample Great Britain and Italy – continues to be strongly subsi-dized by the government despite the global financial crisis andsupported as a field of cultural education, cultural managementin China is facing different challenges, both in terms of scale andthe type of problems.

Concerning the for the most part still state-run cultural sector,which has to fight for legitimization, acceptance, and resourcesin a quickly changing environment, China nevertheless has a lotin common with large parts of Europe. In China too, state-runcultural institutions and projects have to prove their relevancefor society, they have to find acceptance, which means attention,interest, and demand on the competitive culture, media and lei-sure markets.

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The difficulties concerning resources are not only about materi-al aspects but also about human resources that is well-educated,professional cultural managers with international experience.

However, those global, hence comparable tasks are to be appro-ached from within a special regulatory framework, which tendsto irritate German artists, cultural managers and politiciansalike.

The key political term for understanding current as well as futu-re developments in China is “cultural” respectively “creativeindustries”. It represents the paradigm of national culturalpolicy and combines elements of both the Anglo-American andthe Continental European definition with Chinese componentsin its semantics as well as operational practice.

In order to better differentiate between the Continental Euro-pean, Anglo-American as well as the specific Chinese positions,closer attention should be paid to the development of the term inthe Western world.

The term “creative industries” encompasses social projections,individual hopes and aspirations as well as hard economic inte-rests. Investment policies, urban development, scientific andtechnological progress, new attractive jobs, ecologic sustainabi-lity, these are the – remarkably high – expectations politicians,investors and entrepreneurs connect to the development of newurban economic spaces for the creative industries. In these spa-ces, the new creative class invents and produces services, goods,patents, and copyrights as well as artefacts – all at the interfaceof technology, media, and the arts.

The global discussion and awareness of the creative industrieswas initiated by Richard Florida’s bestselling work The Rise ofthe Creative Class and How It’s Transforming Work, Leisure,Community and Everyday Life. Influenced by the developmentsand experiences of the New Economy and the media-technologi-cal revolution of the Internet, E- and IT-business, Florida distin-

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guishes, in good Anglo-American tradition, between “high crea-tives” (especially scientists), “professional creatives” (lawyers,marketers, consultants, PR and all kinds of knowledge-workers)and “Bohemians” (a typical romantic definition for all kinds ofartists, journalists, designers, but including entertainers, athletes[!], models, and performers).

These professions and activities as well as a far-reaching sociolo-gical approach inform the Anglo-American view of creativeindustries. This view includes a new type of agent, the creativeclass, which provides the workforce for and propels the creativeindustries. This new type of agent is characterized by a capacityfor innovative thinking, an ability to identify problems and findsolutions anticipating future developments, an orientationtowards information and knowledge as well as a focus on newpaths and combinatorial imagination.

In terms of economic development this means a paradigm shift –no longer are people following businesses and industries, in thecreative industries, businesses are moving where the creativeclass is. This is a chance and a strategic challenge for state-driveneconomic development agencies and their specialists.

The Continental European – especially the German – conceptionof creative industries distinguishes industries and segmentsaccording to economic criteria. In Germany, the creative indu-stries encompass cultural industries, creative industries andbusinesses, which are for-profit and concerned with the creation,production, distribution or promotion of cultural and creativegoods and services. They cover the whole private sector of crea-tive production, including the film industry, the arts market,publishing and media houses, private broadcasting, music busi-ness, architecture, design and fashion, advertisement, gamesdevelopers as well as part of the IT sector.

We have to distinguish the creative industries from the institu-tions in the two nonprofit cultural sectors – which include publicand private cultural institutions and festivals on the one hand, as

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well as public radio and television on the other hand. The struc-tural differentiation between these three sectors – full for-profitcreative industries, nonprofit public and private cultural orga-nizations – is common in almost every country in ContinentalEurope.

Especially for Germany we have to note two differences: there isa strict separation between the for-profit and not-for-profit sec-tors, and: many companies in the creative industries are either“very small” or “small-medium-enterprises”, only very few arelarge internationally operating companies. Hence, the image ofthe creative industries as a whole has been influenced by the con-ception of start-ups as young, multidisciplinary and creative ent-repreneurial companies with little money, but a lot of fantasticideas.

Also we have to note a very specifically German intellectual dis-position: the combination of culture, creativity and industry, theconnection between the arts and the markets is often judgednegatively in intellectual discourse. For this reason the perspec-tive on creative industries is sometimes a little blurred by theromantic idea that artists and creatives can only be creative ifthey are poor.

In the European tradition, creativity needs freedom – political,cultural, and organizational. The European, and specifically theGerman, understanding of creativity, as it has developed fromthe 18th century onwards, tries to unite two differing states ofmind. Creativity consists of two components if you will: on theone hand, it requires a “mad”, associative, imaginative, mistake-friendly, rule-disobeying way of thinking. On the other hand, itrequires exact, purposeful and strategic thinking, which transla-tes the results of “mad thinking” into goal oriented actions. Onlythe combination of “mad thinking” and conceptual thinkingproduces something new and innovative.

This understanding of creative thought and action is based onthe seemingly contradictory union of creative, not necessarily

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planned, often sensual and emotional thinking and feeling withrational, calculated, regulated actions. The results always haveto be new and original.

In essence this conception of creativity contains the central cul-tural tension of Western thought: the dialectic of the Dionysianand the Apollonian that developed in ancient Greece over twoand a half millennia ago and has become fundamental to Euro-pean thought. This dual nature of creativity is recognized even inthe way the arts and the creative sector are supported by govern-ment agencies in Germany: the state sees itself in a purely sup-portive role, as the enabler of the productive power of the creati-ve classes and industries.

For China, all of this might sound a little strange and distantfrom reality – as in China the focus of creative industries is muchwider than in Europe. Most of all, the Chinese model does notstrictly differentiate between for-profit and nonprofit instituti-ons. The Government and the Party are the main entrepreneuri-al forces in China – they set the strategic goals and guidelines forChinese cultural policy.

Whereas in Germany the State Ministers of Economics decidedin 2008 on a clear definition of “culture and creative industries”which is focused on the commercial cultural, media and creativesectors, the situation in China is more complex. The Chineseidea of creative industries is first a policy mechanism of stimula-ting and developing city or regional areas – it is a model adoptedfrom the West and includes all kinds of corporations within theentertainment or art sectors.

2004 marks the preliminary end point as well as the future-ori-ented starting point of a complex industrial and cultural politicsprocess dating back to the 1980s. The policies adopted Westerndevelopments and mechanisms but integrated them into a speci-fically Chinese way. The coordinates of this common Chineseunderstanding of culture and creative industries are a distinctmarket or business positioning and a resulting economization of

Culture first! 31


the culture and education sectors. Since the 1990s culture andeducation developed into distinctive industries, whose “creati-ve/productive nature” resulted in an “overall and guiding effecton national economic development” in the context of “soft mar-ket theory” as the Communist Party propagated back in 1992.

Culture and creativity therefore are basic elements of a compre-hensive soft power strategy: the generation of economic creationof value through creativity on the basis of replication, recombi-ning and exploitation instead of productive exploration andinnovation. While the education sector produces the mostimportant element in social production – educated and trainedtalents and workers – the creative industries have a similar func-tion: “Creative industries are those industries that rely uponcreative ideas, skills, and advanced technology as core elements,increase value in production and consumption and create wealthand provide extensive jobs for society through a series of activi-ties”, defined Li Wuwei 2008.

Cultural and creative industries as special “industries” are sub-ject to a macro-societal perspective of party and government.Their specific value creation does not differentiate betweenmaterial and immaterial or ideational, but instead focuses onsocial welfare. This results in the unity of cultural and economicpolicies, of the cultural and the economic spheres of value. Thisis the fundamental difference to the economic paradigm of Ger-man cultural policy during the 1980s and 1990s. Its buzzwordswere indirect productivity, sponsoring and managerialization ofthe nonprofit sector. This economization paradigm called formore efficient management and auditing of public cultural insti-tutions, supplementary private funding and a marketingapproach focused on audiences. It did not however overcome thedistinction between ideational, artistic, aesthetic and educatio-nal value creation and economic value creation.

In addition, the nonprofit cultural sector was supposed to con-tribute not to material wealth but to ideational, artistic andaesthetic education and development. The division between the

Klaus Siebenhaar32


nonprofit sector, which was never considered an “industry”, andthe commercial cultural and creative industries still applies inGermany. Cultural production may move on markets, but froman economic perspective it is not marketable, as it is dependenton the support of the government, which is bound by constitu-tional law from interfering with the content and form of culturalproduction as well as the programming of state funded culturalinstitutions.These fundamental political and cultural differencesare mirrored by the different systematic of the Chinese and Ger-man cultural sectors:

From a German perspective the three rings defined by Yu Ding asChina’s “cultural industries” contain the core areas of the non-profit cultural sector, related segments as well as the commercialcultural and creative industries.

If you look at the details in the Chinese model of creative indu-stries you will see it is much wider than the German one and evenincludes parts of the sports, leisure, and service sectors.

What does that mean for cultural management in China? Mostimportantly, China needs well-trained arts managers even more

Culture first! 33


than Germany. In the past decade China has build a vast, highlydeveloped and very expensive infrastructure of cultural instituti-ons like museums, performing arts centers and others. This pro-cess still continues, often under the supervision of local govern-ments.

Hence, the demand for arts managers is as big as the problemsthey face: they need to develop an engaged, knowledgeable andloyal audience, they need to do audience development on a largescale; they need to integrate their institutions with their locationsand local communities; they need to come up with suitable pro-gramming, which includes strategic artistic planning; they needto implement efficient managerial structures; build up sales net-works and find sources of private funding; they need to focus onbusiness performance, entrepreneurship, marketing, manage-ment by objectives. To achieve this and ensure a future-proof cul-tural management the university education of arts managers inChina needs to be developed rapidly. China must not lose time.This means international cooperation, such as joint master andother training programs for students and professionals, so thatChina can profit from thirty years of German, European andAmerican experience while still following its own path.

Despite political and cultural differences there are universallyapplicable skills, techniques, and concepts for cultural manage-ment, which are included in the following chapter. This univer-sality also applies to a common value set: despite the Chineseperspective of value creation in the cultural sectors, Chinese artsmanagers will have to defend the ideas of ideational value creati-on and the potential for aesthetic education of artistic and cultu-ral creativity.

Many issues and tasks as well as the role of culture in urban deve-lopment are similar in European and Chinese cultural manage-ment. “Culture first!” we say in Germany, Respect for Art is thetitle of the leading Chinese book by Joan Jeffri und Yu Dingpublished in 2007. Both claims provide a similar basis for pro-fessional value-oriented cultural management.

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2.3. Cultural Management in Practice: Selected Universal Skills, Tools, and Concepts

Cultural management is a discipline and a practice. Culturalmanagement – as a whole – is a system of interrelated elements ina process of environmental trends like special social and culturaldevelopments, in an individual country and the global world.For both profit cultural enterprises and nonprofit cultural orga-nizations, managerial skills and personal skills must be combi-ned into principles of effectiveness.

One of the most important management scholars – Peter F.Drucker – demanded that these principles must include the disci-plines of innovation and entrepreneurship. According toDrucker, cultural management principles must be directedtoward developing and maintaining a high spirit of performan-ce, achieving organizational results, and managing social impac-ts to serve the common good: in China, in Germany, in Europe,and in the USA.

Culture first! 35


36

For the future, all kinds of intercultural dialogues and especiallyintercultural exchanges are going to be relevant: there are somebasic universal aspects of meaning, understanding and prac-ticing cultural management. As mentioned and described above,cultural management everywhere in the world can be viewed asystem of interrelated elements.

Although there are differences, for example with regard to thestrength of social impacts or management culture and workethics, a lot of fundamental skills, tools, and concepts are equalor at least comparable.

Whether it is China or Germany, a leader of a cultural institutioncan make use of four basic managerial instruments to direct atheater, a museum, a dance company, a concert hall or any othercultural institution:

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Instruments may be preferred or prioritized differently but kno-wing them is essential regardless of the location. Chinese andGerman cultural managers must be able to handle these instru-ments on the level of strategic planning as well as on the opera-tional level of management processes.

Another example of the intercultural transfer of knowledge andexperience is represented by the systematic process of feasibilityand cost-benefit analysis (CBA) in the cultural sector. Our Insti-tute for Arts and Media Management at Freie Universität Berlinhas developed guidelines and a methodology together with andfor the Jaspers Agency of the European Investment Bank andthe cultural infrastructure projects it is developing on behalfof the European Union. This methodology could be implemen-ted by Chinese government-officials in the planning and pre -paration processes regarding their big cultural infrastructureprojects.

CBA is an analytical tool, which is used to estimate the financialand socio-economic impact (in terms of benefits and costs) rela-ted to the implementation of certain policy actions and/or pro-jects. The impact must be assessed against predetermined objec-tives and the analysis is usually made from the point of view ofsociety as a whole, intended as the sum of all individuals concer-ned. Typically, a CBA analysis works with national boundariesso that the word “society” usually refers to the sum of the indi-viduals in a nation state.

The objective of a CBA is to identify and monetize (i.e. attach amonetary value to) all possible impacts of the action or projectunder scrutiny, in order to determine the related costs and bene-fits. In principle, all impacts should be assessed: financial, eco-nomic, social, environmental, and so forth. Traditionally, costsand benefits are evaluated by considering the difference betweena scenario with the project and an alternative scenario withoutthe project (the so called “incremental approach”). The resultsare further aggregated to identify net benefits and to draw con-clusions on whether the project is desirable and worth imple-

Culture first! 37


menting. In this context, the CBA represents a decision-makingtool for assessing investment to be financed by public resources.

The term CBA within these guidelines and according to EUrequirements encompasses both the financial and economic ana-lysis of the project. In the culture sector, CBA considerations arevery important for planning efficient buildings, which shouldadd to the urban and culture landscape of the city and region, butshould also be sustainable in terms of operational efficiency andstructural maintenance, without bringing excessive financialburdens to the municipality’s budget.

This requires to measure carefully all expected benefits in termsof improved standards of living in cities and regions, to calibratecorrectly the demand needs of the community and to assess rea-listically all investment and operational costs ex-ante, in a waythat surprises do not arise in the process of planning, construc-ting or managing infrastructures, which are far too big to per-form the expected objectives.

A carefully conducted CBA is a helpful tool to highlight, how therisks of planning, for example, “empty” auditoriums should bereduced. A rigorous scenario analysis should prevent situations,in which local authorities engage in investments, which turn outto be “white elephants”. The costs will soon become hard reali-ties for the budgetary implications of these projects on the muni-cipalities involved, while the benefits will never materialize asoptimistically expected at the outset.

The quantification of benefits is in fact very complex and uncer-tain. The guidelines recommend a prudent approach in measu-ring both financial and economic benefits. Only by carefullybenchmarking existing success stories, would it be possible toprove that conservative assumptions should be abandoned infavor of more speculative scenarios on culture demand growth.

Klaus Siebenhaar38


Steps for Feasibility and Cost-Benefit Analysis in the Cultural Sector

Culture first! 39

CBA STEPS – Quotes from 2008Guide on CBA

A presentation and discussion of thesocio-economic context and the objec-tives

This discussion should include consideration of the relationship between the objectives and the priorities established in the Operational Program, the National Strategic Reference Framework and consistency with the goals of the EU Funds, in a way to evaluate the rationale and policy coherence of the proposed project.

CBA – adapted to the CULTU-RAL Sector

Analysis of the socio-economiccontext

• Urban context of the project• Clear identification of theownership of the individual pro-ject components and regulatorymechanisms (terms and timing ofconcessions, licences)• Identification of the projectobjectives• Location of the project inclu-ding local, national and interna-tional access• Other culture facilities existingin the city • Socio-economic backgroundincluding the provision of currentculture services and bottlenecksin culture facilities • Status of the culture base bothlocally and nationally: audiencerate, state of culture interests • Links with sector policies andstrategic documents includingOperational Programme• Links with culture EU and hori-zontal policies (tourism policy)


Klaus Siebenhaar40

The clear identification of the pro-ject

Identification means that theobject is a self-sufficient unit ofanalysis, i.e. no essential feature orcomponent is left out of the scopeof the appraisal; indirect and net-work effects are going to be ade-quately covered (e.g. changes inurban patterns) and whose costsand benefits are going to be consi-dered (‘who has standing’?).

The study of the project’s feasibilityand alternative options

A typical feasibility analysis shouldascertain that the local context isfavorable to the project (e.g. thereare no physical, social or institutio-nal binding constraints), thedemand for services in the futurewill be adequate (long run fore-casts), appropriate technology isavailable, the utilization rate of theinfrastructure or the plant will notreveal excessive spare capacity,personnel skills and managementwill be available, justification ofthe project design (scale, location,etc.) against alternative scenarios(‘business as usual’, ‘do-mini-mum’, ‘do-something’ and ‘do-something else’).

The logic of the intervention

• Description of the project• Management of the cultural infra-structure • Planned objectives of the projectin relation to the OP, and, if rele-vant, differentiation from similarcultural infrastructure projects. • Expected project outcomes interms of established indicators andhow expected outcomes can beencouraged in terms of urban deve-lopment strategy • The normative core: link the cul-ture programs’ activities and com-munity’s aspirations; particularlylinks to tourism, social and servicepolicies in the city • Summary of international context

Analysis of demand/needs and gaps

• Identification and analysis of spe-cific audiences• Creation of public value• Links to similar cultural infra-structure on EU level.• Strategic planning: detailed analy-sis of all market needs: culturalactivities, conferences, theatres,music, opera• Identification and measurementsof bottlenecks and constraints inculture supply• Audience development• Why a new infrastructure is nee-ded? Who are the main users, whichbenefits will bring to the city, theregion and the country?• How to optimize the size of theinfrastructure?


Culture first! 41

Institutional and legal analysis

• The legal status of applicants andothers participating in the project(partners and partner agreement)• Existing culture activities of thebeneficiary and other project partners• Experience of the applicants and par-ticipants in the implementation ofmajor projects. Evidence of large-scaleproject/risk management.• Feasibility of the project’s organiza-tional arrangements/governanceduring implementation and operatio-nal phase.• Feasibility of investment in terms oflegal issues• Health and safety policies as well asauditing arrangements

Technical analysis

• Description of significant technologi-cal alternatives or options analysis• Exit strategies and mechanisms foroptimizing funding• Description of chosen technical opti-on and reliability of the technicaldesign (often not yet proven).• Choice of site and its characteristics;geological considerations• Technical advisory committee• Environmental and energy impactassessment; health and safety rulescompliance• Human resource strategy• Energy requirements• Procurement strategy• Investment and operating costs, pro-viding justification of cost estimatesand benchmarking


Klaus Siebenhaar42

Financial analysis

This should be based on the dis-counted cash flow approach. TheEC suggests a benchmark realfinancial discount rate of 5%. Asystem of accounting tables shouldshow cash inflows and outflowsrelated to: i) total investment costs;ii) total operating costs and revenu-es; financial return on the invest-ment costs: FNPV(C) and FRR(C);iii) sources of finance; iv) financialsustainability; financial return onnational capital: FNPV(K) andFRR(K);

Plan for the project implementation

• Time-table for implementing theproject• Recruitment policy • Financing negotiations (incl. in-kind contributions, where relevant);financial governance and accounta-bility (incl. auditing and internalcontrols and assurance)• Procurement plan• Timing for construction of anyrelated infrastructure outside thescope of the project• Promotion of the project• Operational aspects of the project,once finalized, especially (i) fundingarrangements; (ii) regulations regar-ding the access to the infrastructureand pricing policy for internal andexternal provision (if relevant). • Provision for decommissioning(where relevant)

Financial analysis

• Financial assumptions includinginflation index and contingency pro-vision• Financial analysis – return oninvestment• Pricing policy- State aid considerations• Determination of the funding gapor EU contribution• Financial sustainability and opera-tional issues • Conclusions from the financialanalysis


Culture First! 43

the latter takes into account theimpact of the EU grant on thenational (public and private)investors. The time horizon mustbe consistent with the economiclife of the main assets. Theappropriate residual value mustbe included in the accounts in theend year. General inflation andrelative price changes must betreated in a consistent way. Inprinciple, FRR(C) can be verylow or negative for public sectorprojects, but FRR(K) for privateinvestors or PPPs should normal-ly be positive.

Economic analysisCBA requires an investigation ofa project’s net impact on econo-mic welfare. This is done in fivesteps: i) observed prices or publictariffs are converted into shadowprices, that better reflect the soci-al opportunity cost of the good;ii) externalities are taken intoaccount and given a monetaryvalue; iii) indirect effects areincluded if relevant (i.e. notalready captured by shadow pri-ces); iv) costs and benefits arediscounted with a real social dis-count rate (suggested SDRbenchmark values: (5.5% forCohesion and IPA countries, andfor convergence regions elsewhe-re with high growth; outlook;3.5% for competitiveness regi-ons); v) calculation of economicperformance indicators: econo-mic net present value (ENPV), vi)

Socio-economic cost-benefit ana-lysis

• Methodology and assumptionsfor assessing the quantitativefinancial benefits of the project• Local stakeholder engagement• Social cost analysis• Analysis of social benefits andcosts• Analysis of economic benefitsand costs• Additional appraisal criteria


Klaus Siebenhaar44

economic rate of return (ERR)and the benefit-cost (B/C) ratio.Critical conversion factors are:the standard conversion factor;sector conversion factors (some-times leading to border pricesfor specific tradable goods e.g.agricultural products) and mar-ginal costs or willingness-to-payfor non-tradable goods (e.g.waste disposal); the conversionfactor for labor cost (dependingupon the nature and magnitudeof regional unemployment).

Risk assessment

A project appraisal documentmust include an assessment ofthe project risks. Again, fivesteps are suggested: i) sensitivityanalysis (identification of criticalvariables, elimination of deter-ministically dependent variables,elasticity analysis, choice of criti-cal variables, scenario analysis);ii) assumption of a probabilitydistribution for each criticalvariable; iii) calculation of thedistribution of the performanceindicator (typically FNPV andENPV); iv) discussion of resultsand acceptable levels of risk; v)discussion of ways to mitigaterisks.

Sensitivity and risk analysis

• Sensitivity analysis• Risk monitoring system• Risk management system


The next exemplary tool is focused on one of the most importantcultural management tasks: the building and developing of audi-ences. The tool of the audience-orientated SWOT analysis(strengths, weaknesses, opportunities, threats) can aid every cul-tural organization in developing its programming strategy andobjectives. Performing an audience-oriented SWOT analysis isthe process of relating internal resources and weaknesses toexternals opportunities and threats. The following tables giveindicative lists of aspects to be considered in this analysis.

Audience-oriented SWOT Analysis

Performance ImportanceMajor Minor Neutral Minor Major high medium lowstrength strength weakness weakness

ProgramBuilding reputationCore product qualityInterpretative qualityOrientation qualityVolunteer Services QualityNew exhibit development

Audience DevelopmentVisitorship levelVisitorship diversityRepeated visitorshipVisitor service qualityMembership program quality

MarketingImage efficiencyPublic perception of accessibilityPromotion efficiencyEfficiency of PricingProduct Mix

FinanceCost / Availibility of capitalCash FlowFinancial StabilityFundraising EfficiencyGovernment supportEarned IncomeCorporate Support

Individual Giving

Culture First! 45


Performance ImportanceMajor Minor Neutral Minor Major high medium lowstrength strength weakness weakness

OrganizationVisionary, capable

LeadershipDedication of employeesEntrepreneurial orientationInnovativeness Staff responsiveness to

public service, educational outreach

Flexibility and Respon-

siveness, overall

Our last example is focussed on the relevant contexts a culturalinstitution is acting and building relationships.

Every cultural institution has to legitimate the use of resourcestowards numerous stakeholders. Only if they succeed in connec-ting to these groups and convince them continuously of the insti-tution’s necessity and viability they will be able to generate suffi-cient financial and material resources, legal certainty and sup-port in public or political discussions and decision processes.

Thus, a cultural institution has to show a broad awareness ofrelevant stakeholder and a well-grounded knowledge of theirmotivations, their objectives and feasible ways to approachthem. The relevant stakeholders are illustrated in the followingchart:

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Relevant Stakeholders for Cultural Institutions and Projects

These four simple examples demonstrate what we can describeas universally applicable and valid cultural management skills,tools, and concepts. The mutual recognition helps to solve theproblems for most cultural institutions in the global world. Inthe future there will be a stronger competition between the fieldsof traditional, high culture and the creative industries, betweenthe “real” and the “digital” world. Yet we are connected by thecommon cultural and social challenges caused by the revolutionthat new media technologies are currently bringing about. Weare linked by the necessity to understand the interconnected pro-cesses taking place in culture, society and the media.Old and new economy, old and new media, traditional and digi-tal culture cannot be considered separate entities; rather, theyconverge. They do so most productively and in the most sustain-able way in large international metropolises because those offera steady supply of the new type of agent that is required for thecreative industries: well educated knowledge workers, digitalnatives, creative networkers as well as global cultural entrepre-neurs and artists.

Culture First! 47

Media- Journalists and Editors

- Media Partners- Online platforms

Interest Groups- Supporters

(present or potential) - Board Members

Policy- Foreign governments

- embassies and cultural institutes - State government

- Regional governments- Municipal governments

Education- Universities

- Schools- Adult education

Audiences- Visitors & Non-Visitors- Tourists & Residents

- Guides

Economy- Enterprises

- Tourism- Event Agencies

Competitors- Similar institutions

- Institutions in the same genre(s)- Cultural and leisure

(Commercial and not for profi t)

Institution- Artistic Director

- Administrative Director- Staff


Works Cited

Drucker, Peter F.. Management: Tasks, Responsibilities, Practices. New York,2008.Florida, Richard. The Rise of the Creative Class: And How Its TransformingWork, Leisure, Community, and Everyday Life. Basic, 2002.Jeffri, Joan, and Yu Ding. Respect for Art. Visual Arts Administration andManagement in China and the United States. Intellectual Property, 2007.

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Part II

by Uwe Nitschke and Klaus Siebenhaar

1. “Culture Management in China” (KUMA) 2009/2010 – Advanced Training and Study Program: Initial Idea and Experiences with a German-Chinese Project

Project Introduction and Background Information

In China, galleries and art spaces began to emerge in the late1980s and early 1990s; art-themed zones, large or small, havebeen created in Beijing, Shanghai and other cities the since year2000. Under these circumstances, represented by the boom ofprivate museums, the re-structuring of state-owned museums,the fast expansion of the performing arts market, the emergenceof large-scale projects such as international festivals, art festi-vals, the art communication year and the growing importancethe government places on the creative industries, the need fortalented managers in the field of cultural management has beenrapidly growing. International experience and the understan-ding of a variety of culture management systems will help lay asolid foundation for successful cross-national co-operations aswell as for cultural innovation in China.

In 2009, Goethe-Institut China, Institute for Arts and MediaManagement at Freie Universität Berlin, and Stiftung MercatorEssen carried out the first edition of the advanced training andstudy program “Culture Management in China”, which aimedto further qualify young and upcoming managers of Chinesemuseums, theaters, and dance institutions. After a one-weekGerman language course and a subsequent two-week theorycourse with Prof. Klaus Siebenhaar held at the Goethe-Institut inBeijing, the sixteen young experts from different cities and insti-tutions, including Beijing Modern Dance Company, NationalMuseum of China, Chengdu Museums, Hong Kong Arts Deve-

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part i - freie universität · evident in business endeavors. but also all objectives, ... greed,...

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